tv Mad Money CNBC February 2, 2021 6:00pm-7:00pm EST
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hair cut with my venmo account >> get your money back >> ben affleck reached out he wants to come on the show >> i'm sure. >> huge fan of "fast money." anytime you want i think earnings is down too much. >> i hope there's no fire in the fire my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you money. my job is to entertain, teach you. doesn't matter where i'm coming from call me at 11-800-7 43-c43-cnbcr
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twet me. to nest or not nest. the dow gaining 476 and nasdaq climbing 1.56% but the vaccine situation is still fluid and we don't know when we'll be able to safely reopen why does this matter the nesting stocks, that's what we call them, are starting to fall we're all itching to get out with safety travel again the whole segment of the economy is going to catch fire the same way the roaring '20s followed the spanish flu pandemic suddenly people want to invest in reopening stocks and sell, sell, sell the stocks involved with nesting at home i think that may be a mistake. too simple at the end of the day, companies are not static beasts. that includes both the nesting plays and reopening plays. they're not sitting there saying oh, let's make hay where the sunshines but then we'll be big
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losers their ceos are taking action to ensure they come out of the crisis in better shape than they came in which means stocks aren't sales let me give you examples of the reopening plays and nesting names to know what i'm talking about. i've been recommending disney and boeing for months. why? because they're household names that will make a killing once we beat covid going to disney is a right of passage. i've been over a dozen times i've been to disneyworld and always go by plane and usually a boeing both companies have been hard hit by the pandemic. disney makes movies. they have cruises. people aren't cruising they have sports channels. they have theme parks that can't make money but you can't have big crowds with superspreader events who wants to buy airplanes when nobody is flying did they sit there and take a beating? the opposite both companies adapted disney doubled down on the
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streaming service disney plus to reach viewers stuck at home. what a home run. it became the ultimate nesting stock but you never forget what could become once the country reopens. management cut cost aggressively and will mean margins will explode higher and that's what hot shot wall street guys love that's why disney stock up is today. sooner or later we know the world will reopen and disney will be ready. to nest or not nest is barely the question how about boeing this morning they announced a big financing deal they're borrowing $9.8 billion to repay higher interest debt. that will make it easier to get through hopefully the final months of the pandemic like disney, boeing was always going to make a come back once people can travel again and i expect a ton of travel because people are going stir crazy now all over the world, and they've also got a lot of discretionary income saved up because there is a year i'm unable to do it if there is a travel boom once
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we reopen and i'll tell you there will be, the airlines always need planes and boeing has all the inventory they need and then some. the company reported a hideous quarter last week. maybe one of the biggest i've seen the stock barely got hit because investors are looking to the future the important thing is that disney and boeing use this time to improve themselves so they'll be in better shape when we go back to normal on the other side of this false one, you have nesting names that did the same thing look at amazon and alphabet. we think of amazon as a nesting stock because when people stop shopping in person, they can follow to e commcommerce if half the people get vaccinated in may, can they start shopping again or time spent at the store is time wasted >> amazon reported arguably the best quarter maybe i've ever seenamazon reported arguably the best quarter maybe i've ever seen and a post nesting trade, highly unusual to get both why is the stock getting hit
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jeff bay ezos is stepping down s ceo. i'm a huge fan of jassey, he's been on the show bezos is irreplaceable but executive chairman and maybe you're getting a two for i'd take it. this is widely viewed as a nesting play because we're reliant on the internet now but the biggest business is google and google is hostage to advertisers. normally they make a lot of money from travel and leisure ads. those ads disappeared thanks to covid so when we reopened and lucrative travel ads come back, alphabet should be able to make a killing. alphabetest latest quarter shows you a reporting structure that is off google cloud. i think they're spending aggressively they're not making anything yet. don't worry. it's early my favorite part, youtube. we spend too much time talking about the decline of broadcast and not enough about the rise of
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youtube which is where the money seems to be going. bravo on a clean, strong beat with wow, beautiful margins. i mentioned these two because tomorrow there will be people telling you the nesting trade is over you need to dump alphabet and sell amazon. the stocks may get hit the way united parcel sold off after a tremendous quarter more on that when we speak to the ceo but not nesting versus reopening stocks don't believe what wall street says it's about good management versus bad management. disney, boeing, alphabet, amazon, maybe you don't care about this rotation. maybe you're more focused on reddit and robinhood after surgery i urged you to consider that side show and look for larger themes last night actual long term stories we're betting on something substantial with short squeeze boy, did those stocks go up? you want theme stocks, not meme stocks i got a mem myself we know how ridiculous they are.
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they have a tight thesis attached and some memes do, too. amc is a reopening trade maybe movies aren't the most popular destination when the world goes back to normal. maybe we drop the ball with the vaccines again and the whole trade sputters maybe film lost market share to video games after a year of gaming at the end of the day i'm not interested by amc. it's a poorly run company trying it's best with a lousy balance sheet. you can do better. that's why i spent the pandemic searching for companies that reinvented themselves making things better, not just the ones taking advantage of a temporary boost. i'm worried about companies that made huge money in the pandemic like pfizer that may no have a second once we're vaccinated i never worry about apple. own it, don't trade it it's about making the best product for the consumer regardless of what happens with the pandemic that never goes out of style the bottom line, rather than swapping out the nesting stocks into the reopening plays, you want stocks of well run
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companies that can keep working even if it takes longer than expected for us to get vaccinated if you buy the best of breed, they will adapt to anything including the long awaited conclusion of the worst pandemic in decades let's take some calls. i say we start with dadrian in ohio >> caller: hey, how are you doing? i love the show. i dig the show i got a question for you, jim. here we go. >> sure, chief, what's up? >> caller: affirm -- >> what do i think about affirm? buy, buy, buy. why? because people don't like banks. younger people don't like banks. they like to get m bargains and like to feel like a club i'm doing better financial tech. this is a prime financial company. 2027 billion, that's crazy i like your mojo can i go to jack in pennsylvania, please, jack >> caller: hey, jim, thank you for taking my call. >> of course >> caller: go eagles.
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>> go birds, new coach i like him. >> caller: you do? that's what i like to hear. >> the coaching tree, what more can you ask for. go ahead. >> caller: that's true that's true. jim, ge reported earnings two weeks ago. i know it's not the ge of old but where do you think the company is headed moving forward? thank you. >> i think it was remarkable quarter. i never thought they could make any wind health care was always good. i figured that what i'm really impressed by is how much money they will make in aerospace and what larry has done is fixed the balance sheet and playing offense and making small acquisitions and the stock was up 5% today. it's at 11 we sold it too soon for action alerts i feel badly about that. why? because i think larry has a real jugg gernaut going here call me a buyer of g.e let's take one more. let's go to john in maryland john
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>> caller: hey, jim. as my father in law would say from philly, boo-yah casa. >> i like that that guy has horse sense what's up? [ laughter ] as you know they recently n is announced the preliminary results from the final phase trial in the u.k. that demonstrates the coronavirus vaccine is more than 90% effective. my wife and i purchased stock with the advice of my father a few years ago and weathered the storm when novavax was delisted from the nasdaq almost since it received operation warp speed funding in the recent news out of the u.k., our stock is skyrocketed approximately 3,700% should i ring the cash register and sell or hold onto the stock as it finishes the phase three u.s. trial and ramps up the production of its vaccine of up to 2 billion doses a year?
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>> well, first, i will congratulate stan earth. he did an unbelievable job some people doubted him. we care about prudence and making money sell half and let the rest run and stan, you had them all on the ride and you really did. you said you can deliver and you had but that doesn't mean we shouldn't be prudent you don't have a gain until you take something thank you for the kind words remember, it's not nesting versus reopening stocks. it's good management versus bad management on "mad money" tonight, can chipotle do more than fill a burrito? i have the fresh off the coverage report and i'm sitting down with the ceo of norfolk southern and i have to tell you something, i think you're going to like what you hear. stay with cramer >> announcer: don't miss a second of "mad money."
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competition but started catching up and the stock dropped why? the results fell mildly short. high expectations against last year's comparable sales, the earnings came in 25 krecents sh and wall street wanted 6%, greedy wall street all told, the results were pretty darn great. 177% dig ital growth the quarter was good maybe you had a chance to buy it lower. what do we do? let's take a closer look with brian nickel, the chairman and ceo of chipotle to learn more about the quarter, welcome back to "mad money." >> great to be back, jim. >> brian, finish a quarter that is difficult to discern because there are so many different moving parts and look, could i focus on the fact comparable store sales were not what i wanted or a blowout? no i'll focus on this you have come through the most difficult time a restaurant chain has come through and i think you were ready whether we
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nest or don't and i say that because digital sales grew 177% and account for 47% of your business what can you do for an encore with those numbers. >> look, we're very proud of the way chipotle handled all of 2020 the fourth quarter included. to your point, there were a lot of ups and downs, unfortunately, there was a surge with covid but i think it really demonstrates the resiliency of chipotle and the power of our digital business that we can lean on when we need to and then i'm really optimistic about 2021 and when we get to a place to reopen dining rooms and build on the strength of our digital system and great food proposition. >> well, let's talk about the great food proposition in the end, what drives people to chipotle of course is food with integrity and the fact it an unbelievable bargain. do you think people will want to come back and sit down or do you think they are used to the chipotle and your excellent
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delivery and when people come into the restaurant, do you make more money on those customers than you do on a delivery or chipotle >> no, actually, the best transaction from a margin standpoint, jim, is the order ahead and pick up transaction followed by in store and delivery and to answer your question, i do think people will still want to have a great seat and occasion where they can sit down and enjoy their burr ito or bow with a friend or family not to say the order ahead ar anywhere i think this will be an and situation for chipotle going forward and i have so much of tim mism-- optimism for 2021. >> many are trying to figure out how to make their model work and what stores to close really, what is their view i see you growing and a balance sheet that's extraordinary and
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financial juggernaut and people that want to work more for chipotle than anybody else could you be in expansion mode in 2021? >> absolutely. i think we've talked about this numerous times and we shared this today we plan on opening 200 and more than 200 restaurants in 2021 that would be a real exciting thing for us to return to 200 plus openings and then to your point, we just did a real coast-to-coast hiring push where we were looking for 15,000 new employees and i got to tell you, the app calicants were really strong they want a purpose. our purpose is cultivating a better world and we do it with integrity so we're really optimistic about the new units we'll be building and employees we'll be bringing in and growth opportunities for existing employees. so there is a lot to be excited about, jim. >> you've got a big super bowl ad coming up and you just talked
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about you care there are things you care about. i've noticed, brian, when i talk to younger people, you call robinhood, whatever, they first want to say what is that company doing good for people? and then they're interested how the company does not talking about same store 6% versus 5.7 talk to me about your super bowl ad and what you're doing for farmers that are a dying breed without the help from people like chipotle. >> yeah, you're exactly right, jim. we continue to hear from our customers and our young customers is they feel good about being a part of brand. they feel good about eating our food and, you know, we want to make sure we can share with everybody and the super bowl is a great platform to share this with everyone. the things we're committed to whether it is the way we want animals raised, the way we want to help local farmers, the way we'd like to support regenerative farming and everything around that that is better for the planet and food system and food we eat
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we thought, you know, let's take advantage of the big stage and let's talk about what makes chipotle unique and our different point of view on the right way to handle food. >> we've got a lot of news about delivery we had uber buying drizzle interesting deal you're able to drive a hard bargain who needs you and needs chipotles and delivery people. can we see gross margins go up on delivery, maybe each store have a bigger average unit profit return because of some of the hard bargains you can drive? >> look, i think one of the things we said to ourselves in 2020 was we wanted to make sure that we pivoted to the digital channel. we, you know, grew that share of the delivery business and then we said look, we'll figure out the economics going forward. i think we've done a nice job of capturing that delivery business and then i think i've talked about this we've been frankly working with our partners on how do we get
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the economics right going forward and we're testing menu pricing, service fees, these contracts are on going negotiations but we're pretty optimistic about our delivery economics normalizing and being a positive contribution to our system and something we continue to give customers access to when they want that occasion. it will come with a higher price than other channels but the goods news is we have the chipotle channel you have the order ahead pickup channel and you got come the in restaurant channel we think the whole suite of that gives people the access they want when they want it, how they want it and we're very optimistic about where we can go from here. you know, i think we talked about this our january business i just think shows the strength that chipotle has remember, we're rolling over in january double digit comps with double digit comps in a covid
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environment. so, you know, i think the engine is revved up i'm excited about where we're going. obviously, i really hope covid gets controlled, the vaccine program rolls out and, you know, kind of on we go with moving past the current pandemic. >> well, it's the one and only we want more carne asada thank you for all you're doing for the farmers and for all the people who are your customers and most importantly, the people who work with you. brian nickel, ceo of chipotle. "mad money" is back after the break. >> announcer: coming up, after a strong top and bottom line beat, what's next up for ups the ceo joins cramer after reporting to find out if the company can keep delivering profits.
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big brown finally delivered. united parcel failed to capitalize on a booming holiday season they could never catch up with the stunning growth of e commerce ups is under new management with carol at the helm and last time she spoke to us, she told us the company would be ready for the holidays sure enough, when the company reported this morning, they posted a 52 cent earnings beat between the basis higher than expected and small and medium size businesses are bread and better in response, the stocks jumped 2.5% today but 10% from the highs. those were in october but before we got positive vaccine news the future looks bright. let's check in with carol. welcome back to "mad money." >> it's so great to see you, jim.
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how are you? >> i'm doing well, carol, thank you for asking how have you been? still having a good time >> still having a great time thank you. >> well, carol, you used a term and i know you're a precise person because when you were cfo of home depot, you were non-nonsense some people feel how much more money can be made? that turning point to me says that car toll believes this is the beginning, not the end of the transformation. >> it's just the beginning i was so delighted to see our team post terrific results you know, for the first time in a long time, our revenue grew faster than our volume that's what we mean when we say better not bigger, and we were able to do that while delivering excellent service in this holiday big time, and i was really happy with the productivity we showed on the bottom line so we're positioning
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this company for really great things in fact, we've told everybody this morning while it's rocky out there and we're not sure where the economy is going, we know we can grow our u.s. domestic operating margin in 2021 and planning to do just that. >> well, let's talk about that because i know there were people, i was listening to the conference call. revenue per piece increased 7.8% that's the highest ups achieved in ten years but you talk about cost per piece 8.2%. some people are saying you can't make that up in volume what i hear you just say, carol, you should be expecting that the revenue per piece could go up or that the cost could go down and that that is at the essence of the leverage moment for ups. >> that's exactly right. you know, there were someone-time expense items this quarter that won't repeat into next year and as we look at next year, you're going to see revenue per piece go up and cost per piece go down so we can grow the operating margin
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i'm really excited about what we're going to do from a customer service perspective to continue to get stickiness with our customers that we want to serve as well as drive productivity in the business. >> all right let's talk about that phrase, let's parse that customers we want to serve we know and i've told people the media makes things up. we know there were people, abc news and cnbc saying you temporarily stop collecting orders from six retailers. the carol i know is doing things that are contrary to what the articles say saying listen, we'll do business with you but we have to make money, too are the partners living up to expectations >> our partners are living up to their expectations i have to give a shoutout to the customers. you know, there is a demand supply imbalance in the small package market here in the united states. there is more demand than capacity we've been working with our customers for months to prepare for the holiday peak season and
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our customers worked with us so in each of the seven weeks of our holiday peak, we have the highest service ever and higher than our competitors and that's good news for our customers because if your service level fails, you fail their customer that man or woman or child who has ordered their holiday gift, we delivered with 97% service levels that's a record. >> 97% people said it was much lower than that and also said maybe you alienated a nike, a gap or macy's i don't know how do you alienate? carol, i don't think anybody alienated anybody. these people were with you and amazon is bigger than ever. >> yeah, no, we saw great growth of our enterprise customers and our enterprise customers are large retailers. in fact, if we look at the enterprise customers, the top 20 customers make upmost of the volume in the holiday peak
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season, they grew on average 14%. i think that's pretty good. >> i think it's darn good but the number that really kind of blew me away, i'm used to seeing frankly during a period when we had frosty results, frosty relations with a lot of countries that i always used to cringe international revenues. what's it going to mean politically. 28.6%. how did you do that? >> there was great depmand for our worldwide express product that allows customers to ship in one day to customers around the world. we secured enough aircraft to support that demand. >> carol, how about getting the vaccine where it has to go great job. some have to be shipped with temperatures that are insane the whole logistic nature
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how are we doing it right? >> it's a complicated supply chain. there is the supply chain that delivers the raw materials to the manufacturers to make the vaccines we don't play that in supply chain. then there is a supply chain that delivers vaccines from manufacturers to the dosing organizations. that's where we play and then there are the dosing organizations that actually administer the vaccine we don't play in that space, either but in that middle space, i will tell you i think we're doing a very good job and i'll give you some data to support that. since the vaccines were allowed to be delivered, we've shipped over 225,000 shipments of vaccines, about 36.5 million vaccines have been delivered with service levels at 99.99%. and this is a complicated supply chain, jim if you think about how vaccines flow through our network, we've picked them up at the
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manufacturer in a truck and put them on a brown tail ups aircraft and fly them to world port, which is our largest air hub. we unpack the vaccines, we process the vaccines at world hub. we put them back on to feeder aircraft, fly them to their destination city and then we put them on a ups brown truck to deliver them to their final mong the way and put a tracker on it so we never lose sight and do that in 20 hours or less. >> i would expect nothing less from carol who is at a turning point. unbelievable work. you're pure joy. congratulations on getting this company to where we know it can be great, great to see you, as
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always. >> good to see you, too. thank you. "mad money" is back after the break. >> announcer: coming up, as the pandemic rolls on, the railroads remain steadfast and moving the goods of american needs but as economic uncertainty persists, investors ask are the rails still worth the ride hi, i'm a new customer and i want your best new smartphone deal. well i'm an existing customer and i'd like your best new smartphone deal. oh do ya? actually it's for both new and existing customers. i feel silly. but i do want the fastest 5g network. oh i want the fastest 5g network. are we actually doing this again? it's not complicated. only at&t gives everyone the same great deal.
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norfolk southern, the big railroad that covers the eastern half of the country. they reported an excellent top and bottom line beat thanks to aggressive costs and frankly, running this better. it's called precision railroading. everyone better management sounded upbeat about the new year yet, norfolk southern stock got hammered last week of course, the whole market sold off. stocks up a few dollars thanks to a nice rally over the next couple days and this one has more room to run i felt that way since i met jim squires. found out more about the quarter and process. welcome back to "mad money." >> hi, jim, thanks for having me on the show. >> well, jim, i think we got to answer a question a lot of people watch the show say jim, how do you using fewer locomotives and useless coal and not being up at all? how are you able to make the kinds of numbers you're doing? how can you run a better
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railroad when nor 2folk souther was always a good rail >> jim, our top line has underwent a remarkable transformation i started with the company around 29 years ago. at that time coal was more than one-third of our top line. last year it was 11% and it will be less than that this year. the company was a customer products railroad. we haul the things that our economy produces and the things that people are buying, finished automobiles, consumer goods and containers and a variety of products that feed the consumer eco economy. >> i think it's important to point out, jim, these days a lot of younger viewers watch our show a lot say it's not enough they have good numbers. i want to hear what they're doing for the environment and workers and most importantly, i
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want to know if they are good citizens when you take freight and you put it on a train, isn't that by far the most environmentally prop productive way to send something? >> it is pound for pound of fright and mile for mile hauled, there is no more fuel efficient mode of ground transportation than a railroad we pride ourselves on our sustainability track record and in fact, we are the green mode of ground transportation that's something that we are working hard on and want to make sure investors and stake holders understand we provide a sustainable mode of transportation. >> the decision about railroading and operation, the operating ratios, these are important because if they can continue to go down and make more money per carload, whatever, if the volumes don't pick up and as you said, they
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will pick up, you make a lot of money. can you explain to people, jim, why it matters that you get these efficiencies and how they can make it so you make a lot of money for shareholders if volumes don't go up? >> take last year for example. our revenue was hard hit by covid and the impact on the economy. by implementing the railroad operations, we're able to take expenses down even more in percentage terms and the result was a fifth year in a row in which we produce a lower operating ratio and profitable company so that's what precision railroading is about ultimately, and we hope the year will be 2021, we expect to put growth on top of that lower cost structure and produce big bottom line benefits for shareholders. >> jim, i saw some numbers what you're doing with steel and autos, what you're doing with
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motor. given the fact you've been able to shrink cost, if those of us out there that think the economy will be better, there are few companies with leverage to report unbelievable numbers with the costs taken out and how more efficient you really are. >> well, if you think about it with a lower fixed cost base, the additional revenue flows straight to the bottom line and that's our goal this year, that's our plan to drive shareholder value by putting more revenue through that lower cost base. that is possible thanks to the new psr operating model. so with strength in the industrial economy as we started out 2021, with a continuing secular shift to our franchise and who knows, maybe even some life in commodities a little later in the year, we think this is going to be a great year with some real growth tail winds. >> i think it's important to point out, jim, you're incredibly shareholder friendly.
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will you share some of that bo bounty >> absolutely, you know, last year we continued to repurchase our shares and did so even in the second quarter as the volume and the revenue was trending down dramatically. we continue to repurchase shares in fact, in the second quarter of last year, we repurchased more shares in dollar terms than the rest of the railroad industry combined and we'll continue to reward our shareholders with share buybacks and dividend we announced an increase in target dividend payout ratio from 33% to 35 to 40%. >> those are the things that tell me you're a big believer things will get better in terms of the operating ratio i agree with you i share the optimism and most impo importantly, i solute you for what you've been able to do that
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is the best i've seen. jim squarers, thank you for coming on "mad money." >> thank you, jim. >> "mad money" is back after the break. >> announcer: coming up. >> it is time. >> announcer: cramer takes your calls. rapid fire the lightening round is next alright, who can break this down for me? coach saban... i crutched out to the mailbox and there it was - a medical bill for twelve-hundred dollars. i had no idea i'd have to pay that. that's right. it's hard to know exactly what your health insurance is going to cover, so you gotta protect your blind side.
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it is time, it is time for the likening round, buy, buy, buy, sell, sell, sell. and then the likening round is over are you ready, ski daddy it's time for the lightning round. we'll start with brian in new jersey, brian? >> caller: ijim, we're coming on lowsfrom con ed. what do you think? >> you know, i do prefer american electric power but i think you got to go. let's go to jackelyn in new jersey, jackelyn >> caller: hey, jim. missed you so much i have a stock that -- >> i'm on the mend thank you so much. i'm on the mend.
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>> caller: we missed you i want to know about ticker wimi it's a chinese company so i don't know because you don't really care for them and i'm trying to -- >> well, jackelyn, it's too hard look, i got across the bear there. i went jd and with the alibaba, thank you so much. pass let's go to jeff in california, jeff >> caller: great to be on your show today thank you so much, i'm calling from downtown l.a. >> thank you. >> caller: hey, my -- >> all right. >> caller: yes beautiful down here. my group of investors did take your advice a few weeks ago and bought a ton of zoom videos. it seems like it's gone up and up every day zoom is zooming, baby. hey, jim, there is another stock i'm excited about that has numbers that are crushing it better than tesla. it's only $30 a share and in three months this stock is up
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224% and the last year the stock is up 1520% it an electric vehicle stock with little or no competition because all they do is make ev vans, shuttle buses and school buses. the stock is called green power, gp, buy, sell or trade >> we have to be careful green power made $18 million revenue. they don't have any earnings this group is very, very hot look, it's a good speck up a lot but doesn't have the earnings you really, really want to have. i'll say it's just okay. let's go to robert in maryland, robert >> caller: boo-yah the chill man is back. what's up, jim we missed ya >> i've never been so chill. i feel like kind of like a madison thing going on not lincoln. that's too high. what's going on? >> caller: hey, so i wanted to ask about this drone stock
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i know you're not big into chinese stocks but this one i bought it at 25 last month then i sold it and went up 300%. i bought a little on the bull pac, should i add to my position or wait for e hang holdings? >> e hang? i mean, like must be rolling over in his grave. i got to tell you, again, i come back and say you talk about risk and you are out on a wing without a prayer there, my friend i'll say take some money off the table. we're going to ammitt in maryland ammitt >> caller: jim, i love your show man. >> all right what's happening >> caller: i want to know what you feel about fii foreign -- >> well, a blank check coming
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is the market rigged i've been fielding this question for decades and now with the meme stocks collapsing, it's back in circulation. i hear politicians say the market is rigged and hear from regular people and professional money managers so are they right? let me tell you a story. years ago when i was a reporter covering a crime story, east texas. i found myself having a cup of joe across the street from a used car dealership called the caveat latin for buyer beware meaning it's the buyer 's responsibility to know what they're getting.
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if you walk off the lot with a lemon, that's on you it's a caveat institution. when you buy a stock there is no warranty it can be broken over priced piece of junk that lost most of the value the moment it enters the portfolio. it doesn't matter. you're not getting a refund. look at it like that, i think rigged is the wrong word the truth is, the stock market is risky and risk cannot evenly distributed. investors have time to do due diligence or qualified money manager and somebody else that knows things have an advantage for those who don't. they do. it's a shame they do. those people are less at thet i even though research is better now and google and those things. i point all this out because individual stocks aren't for everyone in fact, one of the great draws of an index fund is it's harder for you to screw up. there is no yaurguarantee. when you group 500 stocks together, that's protecting you from 50 clunkers than finding 50
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good ones or driving the performance, think tesla, apple, amazon congratulations microsoft and netflix. right now, we're seeing lots of merchandise that's purr caveat you have a special purpose acquisition company that buy electric vehicle startups and seem poised. realistic until it isn't they would become too risky to touch but we're not there yet. you have companies that make no money and have no sales. not as bad as 2,000 but not great there are tons of new investors playing around with margin just don't do it at the same time, we have some clever guys on this reddit i like reddit that figured out some big fat hedge funds got too greedy betting against game stock. just like the hedge funds, the wall street bets crew, many didn't know when to stop if you expect a short squeeze, sell it before the short squeeze
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comes to an end. the game stop trade had an expiration date. buyer beware to me, what matters is you protect yourself, protect yourself from the risk of a cav ya yacht marketplace and exercise discipline the boards, the homework, pay a broker i don't know, keep your retirement money in a fund there are lots of ways to mitigate that risk however, if you don't have the time and inclination to be careful, there is a good chance you'll get beaten like a drum. when that happens, it feels like the market is rigged, doesn't it it's not rigged. it's inherently risky. if you don't go in with your eyes wide open, you're going to get hurt look, i make no apologies for defending an asset class making millions of people millions of dollars but you need to pick stocks with the same level of skepticism for the caveat car dealership i saw in east texas if you can't do that, you really
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are -- listen to me, you're better off putting your money in an index fund or holding a lot of cash so you don't even need to worry whether it's rigged at all. i like to say there is always a bull market somewhere and i promise to find it here on "mad money. i'll jim money. i'm jim cramer see you tomorrow the news with shepard smith starts now. fgunned down in south florida. five shot on the deadliest day for the federal bureau of investigation since 9/11 i'm shepard smith. this is the news on cnbc. >> this is a very dark day for the fbi. >> fbi agents ambushed two killed, three injured. they were serving a search warrant in a child porn case tonight, what went wrong. >> this will provide more sites for people to get vaccinated in their communities. >>
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