tv Mad Money CNBC June 11, 2021 6:00pm-7:00pm EDT
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>> mike khouw. >> adobe diagonals, buy low and play ball, sell high >> makes sense does it for "options action", be back next friday at 5:30. 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 a little money. my job is to teach you, entertain and teach you. call me or tweet me @jimcramer stocks keep me entering in a tranquil way the dow edging up 13 points and the s&p advancing 1.9% and
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nasdaq gaining 3.5%. some would say it's the calm before the storm but me? i learned a long time ago that you never short adull market it's good news that we've been lulled to record highs and the market keeps struggling off negatives including yesterday's scorching hot inflation numbers. you can tell when you're in one of these markets because what happens? people talk endlessly not about buying or selling stocks but they talk about buying growth versus buying value. now, that's a false i don't want you whyiselling an buying but buy them on the cheap because of this genuine wall street gibberish that drives down stocks unfairly whether they are value or growth names makes no different to me or cramerica. pie acrony
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my acronym for facebook, google, usually as the loser just when one of the explosions higher i was amazon as larry williams predicted this week. so on monday, strap yourself with a mask when you hear money managers spout this nonsense it's what they talk about when the market is doing nothing. with that in mind, let's go over the rest of the game plan. the market behaved extremely well yesterday despite the index number i tried to break it down for you. nobody is buying what i'm selling except for maybe the fed chief. the same thing happened next tuesday when we get what will most likely be a steaming hot producer text number, the ppi. not clear. you can explain one data point but once you get a second alarming inflation number, well, the market is not going to look kindly on it if it doesn't come as a surprise. that's true when it's followed by a federal reserve meet ming h
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next day there is more to watch on tuesday when oracle reports. this boring old school company seen the stock surge 28% year to date thanks to a remarkable acceleration as the world goes back to normal, companies are spending more on technology there is a huge penalty up demand from the last year. not only that but oracle is doing well in its own version of the cloud. while the critics paint oracle has a hopelessly out of touch tossing that will be steam rolled by a younger generation of softwares, in truth, it actually has great cloud solutions of its own and makes a ton of money i bet it report as fine quarter. two terrific snapshots to the housing market housing starts and building permits. long term rates are down given they have plummeted, the yield and benchmark ten-year treasury
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is down. will home biuyers come off the sideline this is the hottest housing market they have ever seen that's because there is a shortage of new homes so we have to find out about the housing building permits for all the potential buyers that want to move from cities to suburbs to the country. we'll keep seeing great numbers including these i think. the big bad event of the week. the fed meeting the. at 2:00 p.m. we'll wait with baited breath to see if chance t transitory inflation comes a lot of people think powell is wrong. a little inflation can't hurt. the fed is consistly overshot the inflation target it's not the end of the world if we over shoot for once we got a 5.8% unemployment rate that doesn't include millions of americans that dropped out of the work force since the start of the pandemic. i think it's too soon for the fed to slam the brakes on the economy but if we see red hot
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inflation numbers, powell might not is a choice however the next month or two we'll see lower prices for many commodities. e why? the chinese economy cooled off and supply will get a chance to catch up with demand as much as i like jay powell, there is no such thing as a benign fed meeting they throw a curveball that's incurred by powell and the endless question and answer session. my god he should really limit himself to the ten best questions like a corporate conference call. no need to waste his time since many of his questions simply aren't worth it. wednesday we hear from a giant and thoughtful home builder. we hear from lennar. the former ceo and executive chairman likes to give you the state of the housing on the conference call. nobody explains it better than the miller good conference call toll brothers. there is an immense amount of inflation in raw materials and lumber has come down by the final cost barely creeps up and
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that's thanks to ingenuity of the excellent builders including lennar kroger reports lots of people wrote off the supermarket chain a couple quarters ago talking about the need to spend more there is a lot of concern about the end of covid related pantry stocking this was 22% ago as kroger stock has become a standout performer because it's a major beneficiary from inflation and well run. i actually do expect a terrific number from kroger not many think that. with that said, i'd rather own the stock of the largest grocery store of the country, walmart that's an absolute dog but it's merely biting time before an emphatic move upward on thursday, we get results from a company we may not know but follow the outsource electronics manufacturer they do a lot of business with apple and wall street loves playing silly guessing game s by trying to extrapolate by the results to apple's that's why the analyst bother with the contrack manufacturer like this.
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i wish they focus on j bill itself up 36% for the year after an unsung stock of an unsung company in an unsung market, nobody cares and made you a lot of money the other day i heard someone on air saying there really isn't any single company with a good read on the totality of e commerce and i got to tell you, i wanted to scream that's plain wrong adobe gives you a great read on e commerce but probably thinks the story is about photo shop. they report on thursday. ryan is one of my absolute favorite ceos. he has more insight into e commerce than maybe almost anyone else on earth lately the stock is me arianderg we have a new mem stock with a big short position to skyrocket if the crowd gets together and uses concerted buying to crush the hedge funds on the other
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side of the trade. that's what it is about. who knows. it could be the stock of a company we have on later tonight, uwm holdings. the whole sale mortgage lender with a high short position one thing e nok i noticed, they one stock up a week they try to take up. i suspect we'll know the next one before the weekend ask yourself if the stock is worth owning on its own merits buying a stock just to spite the short sellers is ultimately a mug's game especially if the stock is genuinely worth shorting the bottom line, next week is about the producer price index number and the fed meeting i bet j powell will stick to the bullish parting line on inflation but keep an eye out for anything that might make him change his mind. gilbert in tennessee, gilbert? >> caller: boo-yah from memphis, jim. >> thank you >> caller: i'm an action alerts
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plus member and a long-time fan. my question is about mcdonald's corp, ticket symbol ncd. i think it's had a total return of 18% over the past 12 months including a 2.2% dividend yield. given the great reopening, do you think it's a buy, hold or sell >> chris is doing a good job he's being interviewed by -- he's going to be interviewed i think he's going to tell a great story. they are doing a lot of great things i'll talk about this on the action alerts conference call. mis mitchell >> caller: i hope everyone is doing well. >> i hope the same. >> caller: thank you i'll start with property trust last year trading around $11 and now a year later, it is up 16 cents at $26.77 and that's 7
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cents within the 52-week high and hopefully with the dividend beiing announced very soon, we recommend purchasing additional shares of the company. >> here is what i recommend. i recommend buying things that berry stern is involved in he's a moneymaker and a good man. he did a great job if anybody remembers starwood property, it fell into the teens. everybody that listened made money. why? because he is a moneymaker all right. next week keep an eye on the producer price index and the fed meeting on "mad money" tonight bitcoin has had a break down can volatility continue? i'm going off the charts to find out plus, uwm united whole sale mortgage will beat rocket mortgage by 2024 is the feud just heating up? i got the exclusive with the ceo
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but back by popular demand, the twists and turns i'll see about that when we play mi diversify so stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com. or give us a call at 1-800-71-800-743- nrks br 1-800-743-cn brksbc 1-800-743-cnbc miss something head to mad"mad madmoney.cnbc.cm
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we want to know if they are diversified. that's right it's time to play am i div diver diversified? i heard you. said you haven't been playing enough this year i'm changing up. this is where you call me and tell me the top five holdings and i tell you if your portfolio is diversified enough or if you need to mix it up a little we have a tweet, jimmy money, okay, jimmy chill usually, i'll call myself jimmy money, love ya, thank you. bx, csx and intel. these are five of the biggest equity holdings thanks and have fun at the bountiful garden this weekend. this is my potato plant weekend. they take a long time. here we go now, this is a very interesting portfolio because i do love the
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mall but i don't -- and i like the categories but there is one that i think we'll have to make a change absolutely terrific fun manager. abbve, my travel trust great year old and quarter csx, the railroads are great if you own valero, terrific. my problem is i like the semis very much. i would far prefer to see amd where the deal will close and amd. it's a good portfolio. we'll go to jason in mississippi. jason? >> caller: boo-yah, cramer thanks for looking out for us blue collar guys. >> thank you very much i appreciate it. i'm under assault and attack in a bunch of places for trying to educate but i'm not stopping let's go to work >> caller: all right my stocks are exxon, amazon,
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altria, carvana and my daughter alerted me to and you confirmed is roblox. >> let's go to work. i'll start with one i don't recommend but i know it's got a good yield altria it's own category of tobacco these companies have become uninvestable they have listened to me and changing things up exxon is a much improved company so it's oil, carvana, thinking about using him for my daughter. great car company. amazon, one of the largest positions for my travel trust, actionalertsplus.com and roblo which i'll talk about with the conference call. this is the best of the growth company. we have a great toy growth company. we have the best retailer. you have an auto retailer, tobacco company and oil. you, my friend, from mississippi
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are diversified. carl in tennessee, carl? >> boo-yah, jim. thank you for helping us small guys out with your mission you're a wise teacher and so entertaining on cnbc all day i love seeing you on halftime shaking things up. sh shutout to the judge. >> they are the best i love the judge off campus, too. what's going on? >> caller: as a young investor, i use partial shares to build positions. >> excellent. >> caller: i'd be honored to know if my five largest holdings are diversified. airbnb, amazon, first horizon and gap incorporated. >> all right let go to work we've got good portfolios tonight and a lot of good stocks here airbnb is a company. i happen to like airbnb as a stock very much. i want to call hospitality and retail coupa had a quarter people didn't think measured up this week software service company it is a high priced stock.
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amazon great retailer. first horizon, brian is -- jordan is a fantastic banker he's a fantastic banker and gap, we saw them. we had them on last week they are having an unbelievable run and then last night we had jp morgan. he said great things about them. retailer what do we want to call it a tech retail. we've got a software service company, a hospitality company and a bank that's what i call great diversification. i'm going to applaud that one. let's go to matt in south dakota please, matt >> caller: hey, jim, happy friday from south dakota. >> oh, yeah. >> caller: my question to you today is am i diversified and the stocks are pepsi, chevron, ibm, reality income and johnson & johnson. >> geez. again. these are high quality all right. so chevron, again, i said the
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oils aren't investable mike answered the call he's done amazing things this is my favorite large cap oil company and it's okay to own. ibm, breaking the company -- that is working. he's doing a remarkable job. reality income, that's good yielder. one i would pick if you want to read that's fine j&j aaa balance sheet. pepsi co is doing a fantastic job. the fastest growing. so we got a consumer package goods company, a drug company. we have real estate envisinvestt trust and tech company and oil and gas. wow. that's exactly what i'm looking for. these are how you make money long term "mad money" is back after the break. >> announcer: coming up, it's a coin operated off the charts cramer bites down on the crypto currency investors covet but may not fully understand next.
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kick pain in the aspercreme i keep telling you that it makes sense to own some bitcoin or athrium partially for speculation. i'm a big believer in homework in knowing what you own so how do you get a hand on something that trades almost entirely on headlines and emotions when it comes to bitcoin, there are no fundamentals. you're not buying a piece of the company. there are no earnings there is no business to analyze when you deal with the stock market, that's the most important next stuff with crypto currencies you can't do fundamental analysis so you have to fall back on the technicals that's why tonight we're going off the charts with the help of the pioneering head of demark analytics with a storied history of timing markets whose work is incredibly popular with many
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people but especially right now crypto traders his methodology has a great track record with stopping tops and bottoms in crypto and he's searching for a bottom in bitcoin so take a look at the daily chart of bitcoin going back to 2017 after a spectacular multiple year run, it's been obliterated in recent months we're talking about a staggering decline here according to demark when an asset loses 50% of its value within six to eight weeks, it requires a prolonged period to recover. for example, when the stock market collapsed last year, the covid crash that was only a 38% decline. that's a lot smaller than the recent bitcoin melt down sure, the stock market lost more than half of the value during the financial crisis but that took more than a year. it was much slower than the bitcoin break down so oddly, if you want a closer historical example in 1929 we had the great crash where the dow jones industrial lost 50% of
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the value within a couple months and the dow managed to rebound 52% over the following five months, it quickly started rolling over again experiencing a multi year decline for the new deal to turn things around based on the 29 example, demark wouldn't be surprised if bitcoin can rally more than 50% from its lows in the not too distant future but after that you have to monitor it closely. there are only a hand full of instances where an entire market collapsed so far so fast and it's actually not a great sign but before we talk about the recovery, we need to figure out whether or not bitcoin is actually bottomed. that's what demark's methodology is about he and his team look for a 13-day countdown pattern that tells them when a rally or decline is likely to run out of steam. you can find these indicators on his website symbolic and i'll spell that for you, symbolik when it comes to bitcoin,
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demardemark demarks has done a great job, exhaustion that's the keyword look at the 13s on the chart here the highs and lows. his tools threw off the sale signal on april 14th that turned out to be the exact day exact day that it peaked what a call, huh let's zoom in on the daily action when bitcoin peaked on april 14th, the methodology having downside projections for 32,000 and change and 24,000 and change we hit the higher price target on may 19th since then bitcoin has been able to bounce. that's not enough for a bottom the timing setup wasn't there yet. when you only get the price but not the timing he says, you should expect a less pronounced reaction so in this case, we're talking about a moderate bounce rather than a big one. going forward demark thinks bitcoin should be able to hold above the may '19 flow but might
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dip below the levels on the day basis. okay, so what about timing in terms of the pattern, demark concluded that the recent action of bitcoin looks like a time i remember very well, the crash of '87. look how they lineup in the daily chart. amazing. i managed to avoid the '87 crash due to luck like i avoided most of the bitcoin breakdown because i sold my crypto to buy a farm i said the same thing, better to be lucky than good there is no guarantee this analogy will hold up but if it does, he expect the bitcoin to make the new low he sees it trading side ways before giving the final decline to retest the may 19th low or make a new one however, that process can go faster if traders take demark's forecast seriously and sell bitcoin ahead of time and that's been known to happen how about the timing setup remember, demark uses his proprietary 13-day couldnt downs
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but because they bounced off lows, it's on four right now you need nine more ugly sessions before this tool will give you a buy signal basically the comparison in '87, demarks thinks it will take three to four more weeks before one of his couldn'ntdowns reach mark if he is right, you can buy bitcoin in the not too distant future this '87 analogy is good news. after the crash the stock market bounced back fast making new highs less than a year later that's much more bullish than the 29 comparison. demark's metholdology says it's too soon to buy. it could take a month for bitcoin to find a bottom, demark thinks the s&p 500 could be very close to a top check of the
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daily chart. right now the s&p is at 11 meaning you only need two more up days before we get to unlucky number 13, which tells demark that this rally has run out of steam maybe it makes sells here. however, it's not enough to have the timing countdown demark will only call a bottom if the s&p is also hitting the upside price target at roughly the same time. unfortunately, the s&p is closed he thinks it can peak around 4335, that number there to 4334 up less than 100 points and some traders may want to scalp it what does it mean? for demark itmeans the s&p could peak soon. we're talking sometime next week if it does sell off too soon or if it doesn't hit the price target, this setup goes out the window this is definitely something you should keep your eye on. the bottom line, the charts as interpreted by tom demark suggest that bitcoin may take another month to bottom while
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the s&p 500 could peak at soon as next week now considering tom's track record, that's a good reason to be patient with bit coin and approach the s&p with some caution. let's go to fred in georgia, fred >> caller: boo boo-yah jim where trea young and the hawks will take the 2-1 lead over your philadelphia 76ers in the playoffs. >> next caller i forgot what show we were on. i thought we were on mad atlanta. so what do you have? >> caller: jim, my question is on pay stakes. they are a digital progress ses segment is a drag but the i gaming space with draft kings and cesar entertainment with moving their operations to amazon web services and adding the crypto currency platform coin base to their portfolio,
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should i buy more pay safe or hold >> i'll tell you to buy more i think that everything you raised and fred, thother than yu unfortunate analysis of the atlanta sixer game is absolutely right and i think i'm surprised that pay safe while it's bottomed hasn't had a move up. i'd make the move and do buying and thank you for the kind words. let go to swerna in texas. >> caller: thank you, jim. action alert club member and thank you for everything you do. >> thank you, look forward to the club call next week. making surprising calls. what's up? >> caller: excellent the reverse trend of the ten-year yield has imposed uncertainty as to where the economy is headed. the belief is that the inflation trends are only temporary. >> yes. >> caller: adding to current confusion with the sentiment as we have seen value and versus growth is challenged on a daily basis leading to extreme, you know,
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erratic behavior so my bottom line question is how do i play the market i'm going nuts. >> well, you know what we had to take a step back and we have to say okay, what companies and you're an action alert member what companies are over valued and could be let's say hazardous and that's why we recommend selling eli lilly or comes to going down for no particular reason other than value versus growth and if they're going down just because of that rotation, that's when you know we have to make a bottom but we're not going to make overall judgments about the stock market we're only making judgments about individual stocks. so tonight's chart says bitcoin another month to bottom. i'm probably going to go with the recommendation on bitcoin and rebuild the position while the s&p could peak as early as next week. that one i'm not certain on but i'm cautious now, i want you to keep an eye
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on both. much more "mad money" ahead including my sitdown with united whole sale mortgage, a meme stock. the company got swept up into that yesterday but could there be more to the story here like maybe a company? i got the ceo. then i'm giving the wall street bets crowd something to chew on with my next investment idea i'll reveal it and of course, all your calls, already fire tonight's edition of the lightning round. so stay with cramer.
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also a few good ones and some of the higher quality names have begun to bounce back take uwm holdings, whole sale mortgage lenderin america and work with mortgage brokers here is the stock that's tumbled from $14 at the highs and down from last month and reported a solid quarter and the stock started rebounding that's a 6% move today after uwmc made a remarkable shot. they announced a plan to become the number one mortgage lender in america by 2024 displacing rocket mortgage and we'll ask about this uwmc dominates the whole sale side they lag behind the retail side and want to catch up am wis - ambitious plan we like it sells for 11 times next year's earnings estimates and paying you to wait with a nearly 4% dividend yield so let's check in
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with matt. the chairman and ceo of the united -- of uwm holdings to learn about the vision for the future welcome back to "mad money." >> hey, thanks for having me appreciate it. >> first, matt, we got to ask a logical question the housing market is red hot. i talked to doug yearly, the fabulous ceo of toll he says it may be the greatest housing market in history. so why are interest rates dropping and we saw 1.5 -- can you please make sense of it for me >> yeah, i know, it's really an odd market there is a little lack of inventory, the housing market is red hot and rates are low in general so a purchasing is really hot now we're seeing a lot of purchase here because if you can close loans fast, people want to buy them and if you can close them fast, they will use you. the housing market is going great and we're excited.
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>> what happened your stock fell. you have rocket. there were issues in exactly how much -- can you explain that whole sale market to us, what went wrong and whether it's corrected because the stock is corrected upward. >> yeah, well, i think what happened is we got pulled down and rocket and others came out with very low guidance they were guiding to do less business in the second quarter and we got lumped in with everybody else and after my earnings call, we talked about how we'll do more. i told you to call me on the show and hold me accountable the reality is this, we kind of got lumped in with everyone. everyone heard what we said and people are seeing we're not as cyclical when rates are going up, the rates aren't as low as we were we were in a purchase market talk about red hot housing market, that's great we'll have an all time record quarter from a market share and volume perspective. >> all right let talk about your called shot. i'm looking at an article in the
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detroit news i know this is a pretty bold thing. this came out yesterday. you're saying you're going to be -- you'll beat rocket rocket is a company that advertising a lot. everyone knows their name. they are big you'll beat rocket as america's largest lender by 2024 matt, they did 320 billion you did 182 billion. that's going to be some challenge for you. you don't have that big budget like they do. >> you know, obviously, they're a great company. rocket, dan gilbert have done a great job. we're in the whole sale channel. we're seeing a mortgage broker grow because it cheaper for a consumer to get a loan $3700 cheaper for people to go through a mortgage broker if they don't come to uwm to go to rocket or large banks, large retail players so we know as consumers get educated it will grow from 20% of the pie to 30 or 35% and we dominate
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that market and we'll continue to dominate that hour our team is excited. the number one lender now are 92, 93% of the business is refinance. we're not like that. as rates go to 3.5, 4%, i believe to be number one you don't have to do 300 billion. you have to do 200 billion in the future because the market will contract a little bit. >> all right it's possible you're saying rocket may come down from 320 and you because of your whole sale business insulated might go up between meats so the challenge isn't as bold is that a good read? >> it's a bold challenge we set goals i had the company rally. i brought magic johnson, isaiah thomas to rally the team about these are big goals. you set big goals and say win which is what is important let's work towards them. i'm okay setting big goals and if we miss them, we mists them. >> paid for michigan state
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it's not as bold a call to have them play. we did not -- i did not play they would not come to my show one last question, you have become, matt and this meme stock, i watch all over today on this wall street bets page, he's coming, he's coming on at 6:00 and don't want to mention my name because they hate me so much he's going to be on the 6:00 show what's it like to be a meme ceo? >> i don't know. i'm happy people follow us and are excited what we're doing i hope it educates them on mortgage brokers and what uwm is doing is different we're proud to be part of it with them. hopefully they are making money and people are being successful and pay a dividend which is different than the stocks and very successful. we're a big company making a lot of money proud to be part of it i love the tension we help the brokers get out there and i'm proud to be on your show. >> all right excellent. good to have you back. yes, we'll hold you in august. you know that. we'll hold you on this
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challenge. you know that will happen. you have to. the challenge is too bold. >> i'm excited. >> all right good deal. that's matt at uwm holdings chairman and ceo and a great basketball player even though he was at the end of the bets "mad money" is back after the break. >> announcer: coming up next. >> let's make money together, what do we got c c >> ann >> announcer: cramer is bringing the thunder in today's edition of the lightning round hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee...
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the likening round buy, buy, buy, sell, sell, sell and then the lightning round is over are you ready, ski daddy time for the lightning round? betsey >> first of all, let me thank you. i know you're short of time. i can't thank you enough. >> you're very kind. thank you. salt in the wall street thing, wall street investing. this is nice to hear. >> caller: you got me into r.h. and r.h. >> it's going back and forth i always said we have nice outdoor furniture we can sit in moe moe men tar-- moe men tar -- momentarily. john >> caller: how are you doing boo-yah to you, your staff and
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all of your viewers. mco, buy sell or hold? >> moodys is a buy but as much as i like moodys, i like s&p global doug peterson smart man. two winners. andy in california, andy >> caller: jim, a big lafd united states army retirement boo-yah! and thank you for helping me substantially bulk up my retirement nest egg. >> thank you for serving what is going on >> caller: my stock is nvidia, buy, sell or hold? >> i never want to hear that word involved with nvidia. sold that's nothing how much do i like it? let's cut to the chase this is a picture -- do you really -- i stepped out of the camera you're never supposed to do that, ever this is a picture of the late nvidia you do not name a dog after a company if it's not a strong buy. i want you to hold nvidia and
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buy. jack in georgia, jack? >> caller: jim, thanks for taking my call let me tell you about -- >> tell you about that that's eric's grudman. never bet against him. he's a brilliant man let's go to mike in new jersey, mike >> caller: hey, jim, how are you doing? >> doing well. how about you? >> caller: good. i want to thank you for being one of the few people left on wall street who actually knows what they are talking about. thank you for that. >> thank you very much appreciate it. what is going on. >> caller: my question is this, i got into this stock around $30 and ever since it's kind of gone up and down, up and down, down to 20 so on and so forth it's a really good company there is a lot of long term growth there so i want your opinion on charge point holdings. >> charge point is very good but it has three other
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competitors and even though it's very, very good the fact it has that many competitors makes it a difficult stock to own scotty in indiana, scotty? >> caller: boo-yah, jimmy chill. >> what is up? >> caller: spotify, time to buy? >> the stock has come down a lot. management is terrific liked them very much i know the podcast area is crowded but i'll say at these levels buy spotify and that, ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightening round is sponsored by t.d. ameritrade coming up, it's a dog eat dog world. what can a popular pet player tell us about the nature of mem stock mayhem cramer reveals, next
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people ask me why wall street is on so many different platforms. their attitude and this style of investing if you can call it that there ultimately get people hurt they aren't investing so much as playing a blood sport game where the whole goal is to destroy whoever on the other side of the train. they want to smash the short
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sellers. they want to crush the hedge funds. and they want to stick it to the man especially if he wears a suit me, i think that's really self-destructive to put it simply, it's about trying to make money call me crazy but i think money is important i don't want you jeopardizing your money to stick it to the hedge fund that knows to exist stocks that sell what you're worth. i can't own individual stocks personally but i want my charitable trust to buy stocks on the cheap and then wait until their value comes out. i don't care who is on the other side of the trade. i care about my side of the investment it's that desire to crush your opponents that i find to be a needless waste of time and energy what brings me to the curious case, let's just say let's go to
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a very interesting comparison. let's compare gamestop versus chew chewy. they were able to use the stock to bring the short selling hedge funds to their knees by taking the share price up quickly via a blitz of buying call options and common stock at the same time. it worked. and lots of betters made money i say good for them. they won but many of these guys don't seem to understand why they won. in reality what they did is engineered a gigantic short squeeze and they are backing an investor, rain cohen who is gamestop's chairman. he owns a lot of stock in the gamestop originally co-founded chewy, the fabulously successful web based pet food retailer.
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co cohen's history makes it a sure thing they will be able to turn around gamestop. they returned the team of former amazon executives and think he's ready to roll. i say wait a second. if you idolize ryan cohen because you think he built something incredible at chewy, why not buy chewy which was down badly today. last we have the ceo that talked about how the company is winning on so many fronts with pet foods, health care, even simple things, dog birthday cards they have about 20 million customers with a huge percentage on auto ship that's the holy grail that explains why they have gigantic margins for an e tailer. chewy is getting more and more per customer and the longer a customer stays in the fold the more that customer spends. it's easy to see why
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i mean, come on. they send you portraits of your dog. this is marley, mr. marles we've been calling him and send you condolence notices this is the late nvidia who is a good-bye who subsequently doubled after he left us and as i learned from ms. maryland on twitter, which has been cleaned up lately. a lot of nice people on twitter. she said that her cat died and chewy sent her a dozen roses the ceo used to work at amazon he understands scale but he's accomplishing the impossible at chewy. he's creating individuality at scale. i can't believe it that's something ryan cohen that's no longer involved must have learned there, too. however, this week gamestop plummeted when shareholders got no plan to turn things beyond selling five shares to raise
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money but gave you centers to adopt and the great thing about nvidia is he was a dog that had been beaten severely and we're happy to get him marley was at a kill center and we got him right before that happened and i like the fact that chew y is bringing to light the center and offered 7,000 vets they got together to help his health care initiative to bring down the cost of owning the pet without sacrificing on quality. talked about the long term value of the customers, unfortunately, only delivered an in line new subscriber number. which would you rather have? the knockdown stock of an out of date brick and mortar video game retailer with a very uncertain future that's run by a former chewy guy and up 1,138% or a terrific dominant digital retailer with a crush stock off 60% that's run by a current
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chewy guy? i don't know about you but i'll take the real chewy any day of the week i like to say there is always a bull market somewhere and i promise to find one just for you here on "mad money." i'm jim cramer see you monday the newsuz wews with sheppard s starts now starts now america reopening, but there is a covid variant drawing attention across the land. i'm shepherd smith, and this is "the news" on cnbc a return from covid. >> reopenings continue and restrictions drop, but caution remains as the delta variant races concerns >> a hunt for a leak triggers fallout. the doj looking for a trump era investigation for democrats.
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