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tv   Mad Money  CNBC  February 8, 2021 6:00pm-7:01pm EST

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real mvp in last night's game was todd bowles. you have strong opinions on that >> absolutely. >> your instinct for sports is incredible caterpillar, the analyst community and offsides only 50% have buys. i think it trades up to 225. >> thanks for watching "fast." se 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, just trying to make you some money my job is not just to entertain but educate and teach. call me or tweet m me @jimmychillcramer you know something it's possible, not yet, to have
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too much of a good thing you don't want a market where there are too many ways to make money. we're not there yet. after another good day and the dow gaining 28 three points, the s&p advanced 4.7%. nasdaq climbed 4.9%. we're certainly headed in that direction. all right. so look, how is it possible that we could have too many ways to make money when lots and lots of things are working, you have investors taking down debt because everything can't miss and every move feels like a super cycle, kiss of death word, super cycle. nobody beats the chiefs. that's when you get over extended and things go badly again, i want to emphasize if i see anyone, any clown say that i'm calling the top here, i will find you and i have a special set -- we're not there yet keep your eyes open for the signs over the next few months let me go over the ways people are making money we like that then tell you how historically
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they have run out of steam, not one of these have run out of steam yet. i'm giving you a flag. first, the reopening trade, people getting vaccinated and questions being put behind us. i expect the vaccine glunlt but by then we'll look for arms to jab, wherever the arms may be and we'll see moves in the restaurants and retailers, macy's, footlocker, kohl's as i told you before, disney and boeing are my favorite trades. i'm waiting for boeing and big orders nobody is waiting for a disney report we're buying ahead of the quarter on thursday because disney is a winner when the world goes back to normal. can you imagine what 2022 looks like with parks open and disney plus on top of that? gee. second theme that's working is housing. this is about the deorganization of america spurred by covid-19 we'll go back to the events but the workplace arrived and hasn't gone anywhere. go to the office a couple days a week and zoom the rest of the
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time at home with your family. it's pretty great. every home builder is bomb b booming. a 13 industrials how can you not own them every one is rally every industrial i'm following is flying. honey well or lindy short term oil prices are roaring. biden is not too fond of it. price goes up. long term i think the industry is in real trouble you don't want to own a fossil fuel for 2030 but for the moment, they're cleaning up. 15 banks been awhile since they've been good. there is economic activity to push up long term rates and the fed holds down short-term rates you get a nice yield curve and a rising tide does lift all boats which is why i like wells fargo. a lot. especially since it's the cheapest of the bunch. i think charlie swab is going to
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fix that place 16 individual stock by newly empowered home games, you. we have new investors, young, terrific, feels like a throwback to the 401 k but the new generation is rigorous and knows how to research. they do their homework and find ideas that can look like tesla and apple and facebook and like anything elon musk touches tesla bought 1.5 billion and will set the cash. when i look at the bit coin, it gives me vertigo but as tesla and paypal agree to take it in the trade. you can absolutely own some as a means a store hold of capital. my name for the robinhood name is enthose yas tick enthusiastic the shorts are right about the fundamentals but they didn't realize the trade had gotten too crowded so they got steam rolled
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once it became clear there wasn't enough stock to go around it was a huge win as long as you rang the register. i called from the hospital bed, ripped out the catheter, gave the good call -- the catheter thing is too much information. 300, told you to sell. unfortunately a lot of home gamers at least they can't blame me the catheter hurt. it great reddit message boorlds can identify winners wall street is missing as long as nobody is running a pump and dump scheme that's a need for better trading. more on that later finally, the one that is very mystifying and i'm getting worried about number seven, the speak attack nearly every time a special purpose acquisition company says it's buying a sexy startup, the stock explodes higher. we've seen a ton of big wins don't fight the speaks the gains don't count until you ring some of the register. not in favor of all. hang on. those are the seven heavenly ways to make money in this
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market right now but they can turn into seven deadly sins if you're not f careful. the reopening trade is hostage to the pandemic. we can get a load of cases, this south african strain, more resistant to the vaccines. i think we'll be able to get covid under control but we've been wrong about that before if the stimulus bill fails, the retailers will take a hit. housing, still a long way. long way away. the housing bull market will get hurt that's inevitable. could take years to become a problem, could take a year theme three. the industrials. look, these stocks work if employment picks up and business snaps back if the recovery falters, they are insanely expensive on a price to earns basis energy it looks good now because opec is in. it will stop limiting production and oil producers will get hammered crude at 58. wouldn't surprise me if the
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saudis open at 60. game five, the banks the rates go higher but not too high because that puts real pressure downward on loan demand. yet, we're not there yet but that's an inevitable part of the business what happens to the stock pickers when they run out of good targets without clearing systems, merry men could get hurt the seventh and most deadly sin, all these companies with no earnings being pitched on revenue projections including the speack are excited and seem to have a mission but we see more and more celebrity speaks and the whole thing feels exces excessive. if you disagree with me, you're wrong. there will be a tippingspacs the bottom line, for now we're in the clear but you need to watch these seven themes like a hawk because eventually they
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will turn ugly might take months. might take years either way, you don't want to stick around when this side of the page happens i need calls i need hatash in texas. >> caller: hi, jim, i want to know your view on the market company. it's generous on the leadership and big on the outlook and the growing risk dependency. >> i'll tell you the problem with merk. the same problem with bristol myers. nobody wants the stocks now. i prefer bristol if you look at the chart, that's a chart of people saying the economy is going to open or i don't need a drug stock and it doesn't matter how good merck is doing. >> caller: jimmy chill, bo ya. >> boo-yah, my friend. what's up? >> caller: you're the chillest you're the best. you make us go whoop whoop i want to ask you, this company just announced a partnership with ibm, great things and then
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some rumors about facebook and i don't know, the lockup period is expiring soon and the earnings coming up. what should we do? >> i don't know about the one that you rumored i know the ibm deal is solid it's very good to bring in artificial intelligence. ibm is a good partner. it shows it verifies palinter. it's enthusiasm stock. don't get many twitter people. it has the ability to go up no matter what the quarter reports. let go to herbert, my home state of new jersey. herbert. >> caller: hi, jim, boo-yah. >> boo-yah, herbert. >> caller: thanks for sharing your experience and financials. >> thank you. >> caller: with everyday people. >> that's my goal. >> caller: current short fall of semi conductors in the marketplace, what is your forecast for applied materials
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earnings -- >> that's a fantastic company. yeah, it's fantastic you have a great number. they had a great number. these are fantastic companies and we have a chip shortage we need every one of them josh in my other home state, new york josh >> caller: hey, jim. >> yeah. >> caller: happy monday. happy market all time highs. >> yes, we should be happy about that it means more people making money and that's our goal. how can i help >> caller: all right so i wanted to get your take on group of under fperformers and one company in particular. the largest defense contractor by revenue la kwmartin with record backlogi now the time to back up the truck. >> remember, under the democrats, defense does very well people don't think it does but when we see the resolutions, i think we're going to be saying
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wow, what was i doing not buying lockheed martin run by the fantastic jim who i expect to be on air as soon as he reports as he did when he was the unbelievable architect of the expansion of american tower. i know it sounds crazy but there are such things as making -- i don't want to say too much of a good thing because that's a cliche this is working but you know what now you've seen the seven heavily ways to make money, they can turn into the seven deadly sins if we aren't careful. all right? you need to protect yourself. >> rumors are swirling about an apple car but two apple engineers may have a shelf driving solution that's the best in the business. don't miss my sitdown to talk about the space and stock is skyrocketing today rising 28% on amazing phase two data, not phase three. what does it mean for the fight
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for people dying of covid? i'm sitting down with the ceo of a wonderful company called lindy stay with cramer >> announcer: don't miss a second of "mad money."@jimcrame. send jim an email to madmoney@cnbc.com or give us a call at 1-800-74 3-cnbc. miss something head to madmoney.cnbc.com.
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we keep seeing more and more incredibly high starting marks the attack of the spacs and i want to highlight the ones with the most potential take ava founded by a fair of former apple engineers that developed the first 4 d chip radar and sonar but it uses lasers and essential for autonomous driving and they found applications for consumer electronics, robotics, security. at the beginning of november we learned ava is coming public with a spac called ipv since then oh, man the stock is on a tear. more room to run like the other
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players, is it better? let's take a close look with the co-founder and ceo of aeva to learn more about the technology and what it means for technology. >> thanks for having me and appreciate what you've been doing for the viewers. >> i'll do the same. i've watched a video of an audi with the boxes on top. i said i want it i think your technology is amazing. it's not like the other guys the other guys are bouncing off each other the other guys can't see the other guys are bad and black ice. 200 yards out they're blind. how is your system able to do all these things >> yeah, so first, let me give you background it's not a new technology and generally and everything out there today are all really based
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on 3 d it measures distance of objects, how far things are and it does it by actually sending higher power pulses of light, waiting for it to come back and then that tells you how far things are. this technology matured over the years but also reached certain limitations when we talk about achieving high performance at low cost, which we believe is the holy grail for technology in general. we actually see and believe the industry is heading from 3 d more towards something that's a bit different, what we call 4 d radar. what it is it has additional capability besides measuring distance to measure velocity we do it for every pixel like radar but an optical way and very high resolution we do this by sending what we call low power continuous beam and look at the frequency of the light with the frequency to measure the velocity for every
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pixel, do it in a way that's high performance, long range 300 meter range capability which is crucial for autonomous driving applications and second, is actually that, you know, because they measure power, they also have sensitivity when it comes to interference. so it talks about scale, it's important this interference does not happen so for us, our technology has the ability to be completely free from interference from other sources of other cars or the sun itself. >> what i'm confused about is when i read it and i read in depth about what you're doing, why would anyone -- the other guys are inferior. they don't have that fourth dimension so what car company in its right mind would use the cheaper -- you can tell me whether you can make this a scale. it would end up cheaper. what car company, you have the biggest car company in the worl and you have a large
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manufacturer give me the case for the other guy if you can because i can't think of it. i've seen it and been in it and i don't want to go back in it. >> so, look, the reality is our technology is on the way to development and coming to production by 2024 time frame. we see in the interim stop cap programs where you have kind of pilot programs, not super high values or scale where it is actually in play but with all the oems and customers we engage with, it's more and more clear that end state, the future of perception and sensing is moving from 3 d towards 4 d and we've believed that and seeing more and more realization now in the industry and that's something that i think we're going to start seeing more and more as we approach the 24, 25 time frame where our technology will ramp up. >> one last question that involves a company you work for. i understand the rules it's something companies run
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foul when you talk about you did work at apple and i have to believe a company like apple that wants the best customer satisfaction has to consider 4 d rather than 3 d. >> look, jim, first of all, i can talk about the work that i have done on apple before or any customer engagements that we have today i can tell you, you know, obviously for a company like apple where the focus is there is no secret there, strength and foundation and providing highest technology, highest quality and really focus on high performance and we have always believed that we believe that when you look at technology capability, you want to be able to hit high performance, high scaleability but also low cost and 4 d lighter on a chip because we're able to enter this technology at a chip level, it shrinks all that down on to a tiny chip platform that provides the capability to be leveraging
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advantages of silicon technology size, weight, power, cost, all that so i think a company obviously that is focused on high quality and technology, you know, it wouldn't be surprising if that becomes also technology in general for such a company. >> look, i'm thrilled to have you on the show. the more i read, i couldn't believe we have this guy they are all fab there are too many variables and black ice and the pedestrian, they hit the pedestrian for heaven sake in the model you're obviously not doing that. ceo of aeva. what a great story thank you. >> thank you, jim. thanks for having me. >> thank you >> announcer: coming up, this biotech player spent decades fighting cancer. after a big move today, could their pipeline be a good fit for your portfolio cramer has the ceo next.
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everybody is powe focused on covid vaccines but let's not forget about treatments. voru saw the stock sore 28% today on off terrific covid data they have been working on drugs for breast and prostate cancer and becwe checked in with their lead breast cancer therapy the news took the stock to three and change to just under ten earlier this year they started studying a cancer drug as a treatment for acute respiratory distress caused by a severe covid. today we got phase two results compared to a plaplacebo, this astonishing.
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it attacks the virus as anti viral and anti respiratory amazing. let's take a closer look with dr. mitchell steiner, the president and ceo to get a better sense of the data and what it means for the business and the world. welcome back to "mad money." >> thank you, thank you for having me again. appreciate it. >> i know your company is an oncology company and i've known it since day one when i understood you had something as a covid-19 treatment, i thought is this a wonder drug you have because right now the treatment for acute respiratory disease syndrome is nothing. >> what happened is we were at the time when covid was hitting eight months ago, it became clear to us that we knew from the very beginning one of our cancer drugs had the ability to be, as you mentioned, an anti inflammatory and anti viral and the reason it does that, it does
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the same thing in cancer it breaks down the transportation system within the cell as you know, viruses hijack cells to make more viruses and does that by going down the highway system like a car and goes in and comes back out and puts in a bunch of virus guess what inflammation does the same thing. what it does is those normal cells, inflammation cells take bags of stuff that causes that stress syndrome, respiratory distress system and dumps it out. how does it do that? goes through the same highway system to dump it out so when it dumps -- you take a drug like veri 111, the virus can't get in and infrlammatory stuff can't ge out. we thought maybe that would make sense to go after covid-19 we kept it low key because even though the preclinical work, the work looking at anti-virus made sense and looking at the inflammatory response, we looked clinically to see if we had
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effect on that and we did. what happens in humans we went into the lion's den and said the way to show this is take patients that are ill with severe covid-19. >> patients that have been dying, basically, right? this is the end of the line for a lot of people. >> absolutely. some on the ventilator and oxygen we call it w.h.o. 5 seven rity very, very high. on oxygen in the hospital and we were able to, you know, show some hard end points for example a hard end point is death so we showed a reduction in depath from 30% with the p placebo arm to 5.3% in the treatment arm. >> right now we have a record number of deaths we have the cases going down and a record number of deaths. acute riskcute respiratory dist system is the end of the line.
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the acute shock is no good. >> there are options the options are starting to fool us a little bit. for example, we're concerned about the covid-19 mutants that are coming out and convalescent plasma got downgraded by the fda and we're worried that the vaccines may not cover all the mutants. in our situation, if you go after the highway, doesn't care if it's blue car, red car, truck, you block the highway, the mutants can get blocked as well we're very nervous dexamethasone, remdesivir, numbers i gave you on top -- >> that's incredible at the same time, you went to barta. you have a meeting with the fda to discuss phase three trial you're cautious in a conservative company but people are dying, doctor, why are we waiting three, four months i don't get that. >> we'll plmeet with the fda an the fda has to decide what the fda wants to do, but the
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conservative approach would be to replicate what we found in phase two and it doesn't have to be in lots and lots of patients and doesn't have to take lots and lots of time we think if we can get started in april and be done by year end, that's record time and give everybody the comfort we have something here that has something that will be required to go after patients that are the sickest and try to stave off death and respiratory failure. >> you also just so people know, you have sold a business that i thought was a good business but it's being used to fund drug development. >> yes. >> so it's not like tomorrow you're going to issue 10 million shares you don't have to. >> we have the resources i mean, we're very, very fortunate. we have the base business that makes money and at first, i'll be honest with you, jim, we were nervous in a sense that we didn't want people to think that we would just run out of money so we were being very, very clear we're not running out of money, that we have the resources to do this, but we
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were focused on our cancer development, our cancer drugs, as you mentioned but we feel duty bound if you know your drug potentially has the activity, everybody is doing this. everybody is trying. we're just fortunate in phase two came out the way it did and hopefully in phase three it will replicate that and we're in the middle of a pinch. we're in the middle of a pandemic doesn't feel like it's going away soon. the spanish flu took three years and we worry about the mutants we feel, you know, duty bound. >> right. >> to move forward spend our money. we have enough money it not going to affect the rest of the company we need to do this. >> well, look, doctor, i'm thrilled that you're doing it. this is when we see why people still die, it's usually because there is something like this on the ventilator, not working, the current system of care no good i wish you the best of luck and i hope the fda grants you expedited because you're saving people's lives dr. mitchell siteiner, up 28%
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today. makes sense. great to see you, sir. >> thank you, thank you for having me again. >> small cap, speculative but this is pretty amazing if it goes to phase three. >> announcer: as the global shift to renewable energy accelerates, one company is on a mission to fuel the green transition can its stock deliver sustainable gains for investors or is it running out of gas? cramer clears the air with the ceo just ahead what day is it? these days it can be easy to lose track of things. did i feed you? but taking prescriptions shouldn't be one of them. cvs simpledose presorts your prescriptions into packets, so you know what to take when. delivered at no cost. is this clean? visit cvs.com. obsession has many names.
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we've seen some huge moves in the green energy space but
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those aren't exactly sleep at night stocks what the you want a safe way to play the hydrogen remenaissance and much more? that's linde this is a company with a real business and a hydrogen kicker in the last few weeks, linde announced projects building the largest plate in germany and have a new partnership to bring liquid hydrogen to south korea which is committed to green hydrogen at the end of the day, linde is a leading industrial player in a major business called industrial gas and that's thriving. they played an excellent beat last friday announcing a 10% dividend bootst and $5 billion buy back it's down 6% and got a real shot let's check in with steve angle to get a better read on the quarter and where the company is headed mr. angel, welcome back to "mad money." >> glad to be here, jim.
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good to sew e you again. >> steve, it's incredible everywhere i go, linde has to help i want rocket spacs to do well, that's linde i want semi conductors to be cured and that's linde those aren't big businesses for you. you have businesses for the likes i've never seen before, sir. >> thank you, jim. you can say we have our tent k - tent tentacles in everything. >> this indicates it's the reason why you don't have a lot of down years. >> well, i mean, we've always said our business is resilient and we thought last year would be a good time to prove that there are growth opportunities in all these market spaces and health care we see growth opportunities. you know, you said something about hydrogen, you know, hydrogen is used for -- to
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launch commercial space shuttles hydrogen is used to make bio fuels. we make dry ice to preserve vaccines, so there are a lot of applications that we find our way into and that helps give us good resilience, obviously, health care, electronics, food and beverage, all those markets were quite stable throughout 2020 and they will be this year, as well and then we've kind of got this extra ticker called clean energy again, we have our tentacles in a lot of growth markets around the world. >> let's talk about one that's important. your battle against covid-19 you're there. >> we are there, jim and you know, we have a respiratory home care business in the united states that treats about 1.6 million patients and that was before covid and then of course, covid began unfortunately in march of this year in the united states, and we developed covid protocols
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working with the hospitals and working with medicare to be able to relief the burden from the hospitals because obviously, that's a problem and unfortunately, we're up to 100,000 patients and it goes up every day. so we ramped up health care capabilities all over the world but in a place like the united states, we increased our capacity to provide oxygen to the hospitals but in addition to that, we developed protocols that take these patients out of the hospitals as quickly as we could into the home and care for them there. >> you know carbon dioxide better than everybody. we have a big carbon dioxide problem when we drill and find oil and gas. can you help those companies >> well, certainly we have these technologies called carbon capture. it's something we've been involved with for sometime and you could apply this to a power plant. you can apply this to a steam methane reformer and cement plant. we have various carbon capture
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technologies depending whether it's called post combustion or precombustion but we can capture the carbon we're in the co 2 business so we can use that co 2 to make dry ice but you can use co 2 for food freezing, as well it's used to cure cement it's caused for carbon to provide carbonation for beverages. there is all kinds of uses for co 2 in and of itself. how do you take the co 2r and sequester it we have the ability to do that. >> you have taught me that green hydrogen you have to be careful might be best for forklifts and long haul trucks but it's still too expensive but you told me there is a path and when i read about countries that are deeply committed, hopefully the united states might be you get a situation where the path is frankly a glide path because governments think this is so important. >> yes and i think that's an excellent
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point. we thought from the beginning that really three things need to be in place for green hiydrogen to move forward and develop. number one, you need a regulatory frame work and when i say that, i'm talking about the incentives, the funding, the funding mechanisms but you're also needing penalties you need a price on co 2 you need man tdates and we're seeing countries in europe do that we're seeing countries in asia do that like south korea and japan so they are developing strong regulatory frame works with teeth in them. >> okay. >> you need to bring the cost of hydrogen down and to do that from a green hydrogen standpoint, you need to bring the cost of renewable power down then you need to bring the cost of hydrogen down this is something we've seen take place before with respect to solar power, to wind power, you can make that happen and so we're a bit in the early days of that we have plans in place, product
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plans to bring the costs down. we're working in that direction. and you mentioned the u.s. the u.s. does not have a rogue t -- regulatory frame work. >> not yet but you'll lead us to it you've done a remarkable job proud to have you on the show. your company is the best at what it does. i seen the other companies in your business. nowhere near yours thanks for everything you're doing. you're everywhere. that's the place to be the ceo of linde great to see you, sir. >> great to see you, jim. this is some quarter and you heard what they are involved in. they are everywhere. you can't see it because it's gas. "mad money" is back after the break. ♪♪ hey you, yeah you. i opened a sofi money account and it was the first time that i realized
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the lightening round say buy, buy, buy, sell, sell, sell and then the lightening ro round is over. are you ready ski daddy? let start with robert. >> caller: yes, hello, jim thank you for taking my call i just want to thank you and dr. lisa sue for helping me pay off my house and my car. >> yes. >> caller: i made 189% in two years. i paid off my house. i put the money in the bank for the taxes and i still have plenty left. today there was a breakout. >> did you catch the breakout? up 4% today and you know just because she's buying zialinks that's a great deal because she's a manufacturer and
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engineer and the toughest person in the business. my amd daniel in new jersey, daniel >> caller: boo-yah jim honor to talk to you hope you're feeling better. >> doing better. thank you for asking. >> caller: i'm a new investor and want exposure in industrials. what do you think of jacobs en engin engineering, ticker j. >> in the business they're the best i never like the companies involved in construction because it's very hard business but if you had to navigate it, it would be jacobs. don't forget falkin materials and marietta i need to go to mark in florida, mark >> caller: hi, jim i hope you're feeling all better. >> i'm trying. thank you for asking it's been a bit of a struggle. i'm not going to say no to that. it was a little bigger than i thought but i'm back what's going on? >> caller: briefly before i get to my question, i have to thank
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you for recommending affirm holdings. >> yeah, max is real i've known max for seven years, the guy that runs it. >> caller: my question is about dicom industries the stock is up 23% since i bought it, but over the weekend, there were sharp downgrades to the stock and i can't find any reason why should i sell and take my profits -- >> oh, no, no, i think dycom is terrific that's pretty darn good. i will say it's had a big run, but there is plenty of business for them and that's what matters. their end markets are very, very strong how about carol in new york? carol. >> caller: hi, jim wonderful to have you back, well and pain free. >> thank you. >> caller: congratulations. >> thank you. >> caller: my stocks, my family can't wait to resume birthdays at long shoreman. >> it will be back
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cinco de mayo, that's my plan. >> caller: i'm interesting in home building and land development and a big run until november when it started falling steadily and about a week ago, after secondary offering announcement, it has a very big drop so in the club, i learned to be patient and that was my plan for this one. >> right that's what we want. >> caller: so even though it's only been a short time in the turn around and hasn't taxed my discipline i wonder given the sharp reversal if something has changed fund mentally. >> and the stock is -- >> caller: it green brick. >> everybody had a gigantic december in the home business and they did not have a gigantic december toll brothers had a remarkable december, lennar, horton, they are all better than yours and i have to call it straight because you called it straight with me and i really appreciate the kind comments let's go to -- oh, dave in illinois, dave >> caller: dr. cramer, with all
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due respect and you know i love you but would it be asking too much to break the piggy bank and repair your unsightly machete wielding -- >> we are. can we do it all right. i don't know it a lived in look i lived in my home last week that was a real downer what's up? >> caller: you may recall, i follow the lunier calendar leaving the year of the rat, appropriately so and entering the year of the ox having said that, i think that alibaba has runway ahead with possible u.s. investment bans have evaporated and financial comes closer to an agreement with the chinese government -- >> once again, david is incredibly -- i went over my bullpen for actionalertsplus.com repaired it to ten names and at the top, yes, we put baba.
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why? what dave said they got through the problems with the government and now i think they're free to make money. we want to come down a little bit because when david favor found jack and he did, jack was missing, david found him his house, the stock was 212 it's up to 260 we needed the stock to come down 20, 30 pouints and we'll pull th trigger. i need to go to zack in pennsylvania, zack >> caller: jim, thank you for everything you do. we're just getting ready for spring training. how are you? >> i like our lineup what's going on with you >> caller: not much, man i'm getting ready for spring training, getting excited for the phillies i have a question on a stock here they just announced a three-way split. i've had them for awhile should i buy the flsplit, sherwn williams. >> sherwin williams had a beautiful call part of the housing situation. i think it was an extraordinary quarter and you should hold on to it and that's a win and that, ladies and gentlemen, is the conclusion of the lightning
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round. >> announcer: the lightning round is sponsored by td ameritrade >> announcer: coming up, how can regulators help level the playing field in a modern market cramer makes sense of the fallout from the robinhood revelation next. ls like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪
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what do we want from the regulators until the wake of revolution and wall street bets on reddit? first, take these down we want an awareness that something big has happened that caught most of us by surprise. millions of new investors discovered the stock market and have a chance to profit freely and fairly 17 million people signed up for robinhood for the commission free trading and they got aterr. we want that to continue it an equalizing force and got ahead of the washington, which tend to lag. that said, i'm really optimistic that gary, the new head of the sec will work quickly to get leaders on board with the idea of making the market safe for individual investors or safer for younger ones but if i'm positive, how the heck is ro robinhood vilified for screwing overus users
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there are a lot of conspiracy theories why but the systems we use execute trades and it's ridicul ridiculous antiquated. it might have been difficult for the people at robinhood who know how to advance capital and using the money. if a client from bought something, the firm has to make good, not the end account. there were extreme funding pressures. if the infrastructure prevented people from buying the stocks, right now we have a system where most stock traders are only cleared by the second business day. isn't that proposterrous this is 2021 for heaven sake that's not the rule. the rules need to change or we'll never be able to prevent what happened ten days ago from happening again. it's a regulatory issue and
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technology issue and both problems can be fixed immediately with swift action from washington and yellen regulators can be mission driven when it comes to leveling the playing field whether than witch hunt driven. evening hates hedge funds. nobody likes to short sell off but the shorts create better price discovery and more liquidity that does matter deeper markets we want that we want regulators to flag weird situations like game stop where they sold more shares than traded come on. that allowed the bull raid to happen if the regulars really want to do their job, they should impose stricter controls on margin and borrow money to trade stocks so people can't hurt themselves the fed handles it that's not right you need someone better, the treasury secretary or the fed to understand that they have to be able to raise margin when they think it's right force the brockers to explain the risk and while they're at it, i was once among the largest option traders on wall street. they are a high risk way to make money and seeing the interest
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from first time investors makes me feel nervous. the risks aren't widely understood let's make sure people know how these inkmstruments can magnify the losses make the risk better these new investors are a whole incredibly resource and research oriented group, they're much better than you think, people. they know how to make money, and they know how to find individual stocks like tesla and amazon and apple. they are sick and tired of being told to park their money in index funds like they're idiots. half the market is index i have, you have they have seen the gains individual stocks can produce. whenever some expert tries to make it sound like the games are impossible to get, they make it look clueless. that's who got it wrong. at the same time, we need more trust. robinhood must win that trust back to keep attracting new people which is exactly what we all want shareholder democracy, people it
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is not enough. it has to be fair and open shareholder democracy based on trust, not the best act and certainly not the commodity of commission free trading. i like to say there is always a bull market somewhere and i promise to find it here for you on "mad money. i'm jim cramer see you "the news with shepard smith" starts now good news on covid-19. and the warning about virus mutations fromscientists i'm shepard smith. this is the news on cnbc covid cases on a downward trend. as more states loosen restrictions, a start warning from the cdc. >> we remain in a serious situation. >> and the south african va variant. astrazeneca warns its vaccine does not work well against it. tonight, tracking the variants
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