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tv   Mad Money  CNBC  June 25, 2021 6:00pm-7:00pm EDT

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>> what about a 30% spike? >> the entire float turned over. you're talking a volume of 260 million shares i think it goes higher >> quick for final call. tony, what do you say? >> my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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. and welcome to cramerica i'm just trying to make you a little money my job is not just to entertain you but to educate and teach you you so call pe or tweet me at jim cramer too hot or not too hot that is the question
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every day we debate it is the economy over heated or just regular heated what is the personal income number, a scorcher do we need a trillion dollars infrastructure package when we already have so many job openings does it matter that fedex can't find enough workers and the president's springing for higher wages. all of those issues were in play today as the s&p gains .3% and the nasdaq declining .06%. next week, though, we end the hot purse debate and yet we're going to do a backwards game plan tonight because next friday at 8:30 we get the report for june and i got to tell you, i think this will show more people employed and wage grown but whatever the number is, you could expect the inflation hawks will come out of the wood work
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and they'll demand the fed do something now and do it now. you could always find a fed president, fed this and that, a guy with fed in a title and they'll come out and criticize powell i'm of two minds about this and they may not be the ones you expect we'll have to see -- we'll see the generous unemployment benefits so it is hard to see who is really working for work -- looking for work it is called ghosting. i had a lot of ghosts coming into my restaurant they don't really want the job i don't know we need to see the true face in the labor market and until those benefits go away in september, we're not. and they are not worried about inflation, they say they're worried and they might even mean but but their just untd invested with short bonds and they want the fed to bail them out look, i'm a journalist, sadly i have no subpoena power
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but if i did, i bet we'd find that many of the guys that come on tv and blast the fed failure to disclose that they would make a lot of money sorry, so they try to gin up a phony sense of surprise every time we get another piece of economic data. oh, look at how hot that is. think about it we read article after article about how businesses can't find workers when you have help wanted signs all over the place, there is nothing shocking about rising wages honestly, wouldn't it be shocking if wages didn't spike that means friday nonforum payment number could be pivotal because the coolest number could be spun at too hot and it will be you need two or three billionaires to come on the air and explain how powell is hurting working families even when you talk about how we need to protect workers from
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higher wages and i call them oligarchs and that is meant as derision what matters here is jay powell has made his position clear. he refused to raise interest rate except that we have so many money mathers that want to hype the support up as the end of the world. not for them not for them at all. but for the pour downtrodden and early wageerner. that is who they care about. they say with a straight face, extraordinary and it is -- what else is coming up. next on monday, we get bun of the best barometers of both work and home and that the her man miller they make this air on shirt. they're expensive. and they also make expensive home furnishings since covid locked us down this is a one way ticket up but that ended with last earnings report. i think they'll feeling like a
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pandemic play. and for post pandemic plays, call me a tad nervous. tuesday we hear from arrow environment. we used to have them on all of the time what i care about are unmanned ground vehicles. right now we have a real shortage of trucks and drivers and -- truck drivers and the environment might have some answers. but the website is really good wednesday is the huge earnings day of the week and it starts with stc, constellation brands, i like the maker, the last being our biggest smaller on the small plate restaurant bar san miguel in brooklyn. i'm looking for a very big number with only covid potentially holding them back because they make these beers in mexico and is way behind us in shutting down the pandemic i know that it's fair to say constellation has been ahead of the problem but there are still not able to work
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and then there is general mills. it will get hit because of inflation and getting hit with boxes and crops and you name it. i'm looking for something else that morning there is an report from the federal government that could send the commodity complex plummeting and they make blue buffalo dog food, the number one name among -- he's getting a -- anyway, like he's going to tell us that he doesn't like the taste. oh, i don't like that, jim that is not what dogs do i know dogs. then my favorite in the morning. bed, bath and beyond bed bath became a meme stock it is shorted the buyers and they wanted to break them they couldn't do it. in the meantime, i think this might be a good retail with real product that could make it a
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brick and mortar survivor. bed bath and beyond could be worth owning lets a get momentous after the close we get results from micron. last time they reported the stock peaked as though the cycle was over that is what -- no one said it but it happened. i think it is ridiculous and i hate to buck the cycle the client has been torture and i'm betting the shareholders will skedaddle a chip maker at a moment when i would like to own amd why i think that deal is going to close and boradcom and nvidia and which is going to 900. we have two good ones on thursday the senior executive job at starbucks to take over one of ceo of walgreens and they only visit for the vaccine i'm not a fan of the stock of walgreens and it is
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listless and has no real reason for being. i out anyone could change that down ward trajectory i wish her the best but walgreens is a bow wow and hot sauce mustard company, for a long time this was a sleeping machine that people started cooking at home during the pandemic as something that caught fire. no one has stopped cooking but with restaurants opening all over the place people are going out more and more. that is what the darden quarter said, huge pent up demand. plus up tough comparisons versus last year. all week i've been trying to catch theeasy money. it works in and out of the home, the beer tastes great at home or in my restaurant or any other place but bottom line, though, next week's all about friday's nonfarm payroll report
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regardless of the number. >> the inflation hogs will come on tv and make a lot of noise and the oligarchs, the goal is to help the working person, that they could say it with a straight face crushes me don't even bother to listen to them mark in illinois, mark >> caller: hey jimmy chill, big booyah to you from the midwest. >> the chill said hi what is happening. >> caller: my stock was a 52-week high of 187 and some change in 52-week low of 75 and some change is ex pedia group, expe, hold sell or buy. >> horse, horse. plain and simple no more questions? i must have talked too much about my dog all right, next week my dog's name is in individualia ii next week it is all eyes on jobs
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friday i tart right to the source no matter what, the inflation hawks will say the economy is over heating and it is time to tighten because they want to help the little guy. don't listen on "mad money" tonight, with the s&p hitting another high, a prime position, i'll be the judge of that when we play mi diversified which you asked for and then nike stock is jumping higher than michael jordan and i'm breaking it down and why people caught it right matthew bossert did when he was on the show. and as a vaccinated summer kicks into high gear, sales are surging in the post pandemic beauty boom. who could bank on that trend well i'm talking to one under the radar player that i think may be a winner. so stay with cramer. >> don't miss a second of "mad money. follow at jim cramer on twitter. have a question, tweet cramer,
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hash mad tweets, send jim a email to "mad money" at cnbc.com or give us a call at 800-743-cnbc miss something, head to "mad money" at cnbc.com
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♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change. brother against brother. well, this should be interesting. [ grunting ]
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as i said before the break, next week will determine if we're too hot, okay, and this is what everybody is worried about, or just hot. and when the industrials came to play but the nasdaq took a bit of a breather, your reminded how important it is to have have a portfolio that could take whatever the market throws at you. which makes it a perfect day to play mi diversify. now what happens here. this is where you call me and tell must your top five holding
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and say you have an index fund but may own some stocks. give me your top five. i tell you whether it is diversified and i don't want every single stock in one sector and first up is a hashtag mad tweet from casey.colton twitter. booyah to you, jimmy, and am i diversified and the holdings are boeing, cran cast, and marvel and life lock and nvidia look all of the hard work your staff does and to help the little guys learn. well this makes me feel fabulous okay first of all, fellows, it is described to my travel trust newsletter action alerts plus.com, a member of the club because all of these, every single one of them are action alert names. let's go over there. so norton is a subscription service so you do not get caught
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they find out if you've been hacked marvel is an unbelievable technology company whether it comes from 5g or high performance computing and nvidia they doenl do high performance computing. crown castle, one of the largest antenna companies in the country which is fantastic and boeing, aerospace. we have to make a decision, i love both of these companies, marvel and nvidia but i'm going to say that we're going to keep nvidia and swap out marvel all the way up here to 56 and we're going to get into a health care company and the health care company that we're going to get into -- oh, god. we're getting abbott labs. abbott labs. and this gentleman knows that -- why i had to hold my breath because abbott disappointed us so badly last quarter. let's go to franco in new york franco >> caller: hello, my frame is franco, i'm from new york city
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here are my top five holdings gm, apple, amd, southwest and disney am i diversified enough, what are your thoughts? >> frank's portfolio i love it. first of all, i think gm is worth 25 to 40% more than it is valued for and i am a huge backer and amd, this is -- i'm going to say it, it is a stock that deal will close soon. we bought some for the travel trust today. disney, i think chap ex has an interesting job. i have to learn more i have to learn more okay, fair enough. i have to learn more southwest, gary kelly is leaving but he's leaving the executive chairman and i like that he's going to hang out what a ceo he is and of course tim cook at apple. so we have tech but we have high
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performance computing and gaming, we have auto and we have entertainment and we have aircraft, airlines you know what, all right we're not done let's go to renaldo in florida >> hey, jim, this is ronaldo is sunny florida. thank you for taking my call i've been a long time follower since the days of kudlow and cramer i want to play am i diversified. my top five stocks are, number one, apple computer, number two, amazon, three, facebook, four, verizon and number five clean energy am i diversified thanks so much, jim. >> this is a very interesting -- thank you for the kind comments. it is a very interesting way to invest so you have facebook, just scoring every day seems to go up it is because of the shops initiatives. they are now the friend of the small and medium size business
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before them they were hated. this is the smartest thing mark zuckerberg ever did. we had total speck on last week. it is about renewable natural gas. apple, what are we going to say. apple is terrific. and amazon stop believing that the web service holiday was bad. that is just propaganda. that is terrific and we're going to call this a technology retailer of a very different complexion and give this a telec and call this entertainment and this is spec it is spec and if you're going to have four that are like this, i am sanctioning a speck with it i love those questions, those callers, am i diversified is back you asked for it, i did it with a written piece right here, but you want to hear from me, i want to hear from you stick with cramer. >> coming up, investors are
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stock with the shoes were rewarded for their faith silencing the naysayers, how does nike just do it cramer explains, next. ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker?
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how did so many of us get the stock of nike so wrong making it capitalization companies don't usually see the stocks spike more than 15% on great earnings unless a lot of people were very, very wrong or of course very, very short going into the quarter i know, because i was one of those people he used to own nike for the charitable trust but over the last two months we unloaded our entire position. that is how worried i was about these numbers. now of course i'm kicking myself
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for not sticking with this one as we ended up making a lot of money early on for charity, so what happens here. what bogus worry scared people away from something that turned out to be terrific first and foremost, there is china. back in march we learned that a handful of apparel companies like nike and hmn were facing boycotts as they would not source any cotton from the shin jang region. where the communist party is viciously per cuting the local muslim population. they have a million people in internment camps and the companies don't want to profit from the forced labor. in response the government made an example out of h&m, not nike. they disappeared from the china's internet and they're forcing store closures all over the country. and they you worried they would crack down on nike too legitimate that would not be a huge problem that they get 20% of sales fro
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the greater china and the biggest growth engine. sure alienating the chinese government is very bad for business but nike has demonstrated a willingness to stand up for controversial causes remember, they signed colin kaepernick to an endorsement after he got blackballed by the nfl. what if some analysts asked them about shin jang and management made some big pronouncement about religious freedom. that was what was keeping me up at night well then we had a bunch of other concerns the last time that group reported the sales came in weaker than expected not great. on top of that a winter storm caused shipping delays in february which crept into march and caused major port congestion all over the world what else? last year we saw a massive ath-leisure boom there was a widespread sense this could be rolled back as the world returns to normal. and then for a while there, you
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had to worry if the tokyo olympics which is a big nike wake-up call, would end up being canceled rather than just rescheduled. remember, nike is a major sponsor and a lot of the athletes wear nike making matters worse, when footlocker reported in late may, they gave you a tepid forecast talking about ongoing pandemic relating store closures in europe and canada. they may not be doing so well. nike had increasingly ugly chart. going into the quarter, this is the worst chart in the dow jones industrials. sometimes that is meaningless but you wonder if the bears knew something about this quarter that the rest of us didn't but then nike reported that it knocked it out of the park we're talking about a monster 42 cents earnings beat off of a 51 cents basis with much higher than expected sales, up an incredible 90% and excellent
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guidance for the next fiscal year and then they did something, they gave you a forecast all the way through to 2025 so how did they do it? let's start with china that is the biggest worry. while the chinese numbers weren't great, they were much better sales up 9% year-over-year on a constant currency basis. they explained on the conference call, most the pain vanished in may and now they are pretty much over it. i feel like i was too paranoid here see, h&m did get obliterated for defying chinese government, but nike is not h&m. because nike has a popular brand. some is probably political h&m is swedish china could make an example out of them and there is nothing sweden could do about it but nike is a huge american operation where our government is not on great terms with
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beijing. they are have toing think twice before they crack down on iconic u.s. companies so while h&m got purged, nike is the number one brand in fact, they've added another million members on team wall through the june 18th shopping holiday. that is incredible when the ceo was skoed about china on the conference call, he didn't pontification about rights, he sounded like the ceo of starbucks how they have strong relations with the customer base. nike has a long history in china. his founder phil started making sneakers there over 40 years ago. the company has created tons of jobs there including new digital technology center that they're opening in shenzen maybe nike's brand is so big that the boycotts couldn't stick because nike is in a class of its own.
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it is not like boycotting a cell company. if you want jordans, you'll get jordans. i think there is some truth to this if any brand can transcend politics it is nike. but if you look at it another way, maybe nike the company is just very good at politics before they took a stand against h h human rights in shin jang, they did it in the least inflammatory way possible with a small statement on their website. they did the right thing but they did it very quietly meanwhile, if you list to the conference call, you would have never known this happened because management created a brand of china and for china i was worried that mike might get asked about the shin jang on the conference call, ask about the persecution, but there was no persecution question. i'm betting there never will be. what about the other worries
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nike is getting much better dealing with logistics in this incredible dtc, direct to consumer business which keeps growing and growing. people still can't get enough of their products even as the stay at home economy is the back to work economy maybe ath-leisure is here to stay people like being comfortable. the olympics is happening. and last but not least, the negative food locker was a head fake when you hear about closed stores, nike makes more money by selling the products direct to you over the web cutting out the middle man it is going to be 50% of their business the biggest driver of today's epic -- when nike delivered great numbers proving the bears wrong in china, it created the mother of all short squeezes you have legion of shorts who bet against this and they suddenly have to close positions when their whole thesis collapsed. bottom line, the next time an iconic company like nike looks like it is getting into a political trouble, you need to be a buyer, not a seller
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because these guys know what they're doing. while the stocks far from cheap, business is booming so you have my blessing to buy some nike the next time it pulls back and i bet you my charity trust which you could follow along by subscribing to action alerts.com my club, will probably buy it back too to kyle in kansas, please, kyle. >> booyah jimmy chill. i love you and even though i'm 27, i want you to adopt me okay my question is about peloton this week peloton introduced its new corporate wellness offering for businesses. >> yes. >> and it tremendously moved the stock up but with gyms opening back up and the loss of the company and the historical difficulty to stay trendy and in the long run, do you think it is time to sell peloton >> no. i think that the peloton is one
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of those companies that -- i don't think this initially, that really came out of the pandemic with more people using it than before it is still great word of mouth. i think you could let this one run at least to 140. let's go to arthur in missouri arthur >> caller: hi jim. a big st. louis booyah to you and thank you for everything you've done for me hroughout the years. >> thank you for sticking with me throughout the years. >> absolutely. so i want your opinion on a company that i already own and look at it as a long-term investment the stock is about 60% off the all-time highs with targets of 30% upside it is barely above the ipo price and there is inside buyering it is better margins than competitors which have traded higher recently and the company is a reopening social media and e-commerce play in the fast growing secondhand luxury clothing and good space, should i buy more, hold or sell of posh
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mark >> i'm going to tell you to buy it and one of the reasons i'm going to tell you to buy it is because sometimes you get ideas from your daughter and my daughter said posh mark is the one, dad i didn't believe it. i then looked in and i found everything you just said about it and you're right. and posh mark is a winner. it is expensive, but it is a winner and they could come on the show any time they want nike is far from cheap, everybody. but you have my blessing to do some buying the next time the stock pulls back ab you could say well jim why don't you give the blessing when it was 130 and the answer is because i got it wrong. much more "mad money" ahead. as masks come off, could the beauty business turn on. don't miss my interview with the company. and when it comes to what i consider to be the greatest threat to this market and all of
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your calls rapid fire in tonight's edition of "the lightning round. so stay with cramer. (vo) this is more than just a building. it's an ai-powered investment firm with billion-dollar views. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. and enough space for a pecan-based nutrition bar empire. it could happen. this is where dreams become brick and mortar. find yours, on loopnet.
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for months no one wanted to go near the spac stocks because we've all been burned by the entire group but now we finally made a plays where the market could different ate between the real companies, a.k.a.d spac take skin which is a new medical aesthetics when they merged with a special purpose acquisition vehicle in early may in the last two months, this
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stock has rallied from just under 10 all the way to $17 in change they sell the hydrofacial delivery system to health spas there are so many of those and dermatologists an then they make money off of razor blades every time someone getting a $200 skin cleansing procedure. some of the spac stories, beauty is a real business with real sales and positive interests before taxes and amortization. a face that seems to look younger every time we see it i'm talking about brent saunders who sold the company to abbvie for more than $26 million in 2019 let's check in with brent saunders from the beauty health company, hey, brent, welcome back to the show >> thanks for having me, jim i actually feel older. i look younger but i feel older. >> you shouldn't
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you're a familiar face on the show i going to ask why spac versus being a ceo at another company, i'm sure you have the pick of the litter >> look, i didn't come up with the spac i came up with the strategy which was to consolidate a beauty health company that is kind of quasimarket that sits between the true medical aesthetics companies and the beauty companies like loreal and one i had the strategy, i kind of said what is the best way to accomplish it and spac was just easier capital formation. it handgun h nothing do to do with wanting to have a spac and looking for a target i came at it differently. >> that makes sense. i was in a little town called doylestown p.a. and when you were in these towns, we're from jersey, and there seems to be a spa literally at every corner. we both know those didn't even exist five years ago first, why is that so and
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second, what could beauty health do to differentiate them >> so you're exactly right the med spa channel is the fastest growing segment in the aesthetics world and skin care is growing faster than beauty and makeup so the confluence of those is really driving this med spa proliferation. there is another interesting phenomenon that is happening which is the -- of the treatments in my old company, we sold very expensive medical aesthetic procedures and they were wonderful and that company is the best at doing that but this is something that is, like you said, $200 on average across the country highly accessible to a lot of consumers. and they don't feel like they have to go to park avenue or beverly hills to get a treatment. they could go into the local spa and get phenomenal service and not be with sick people with great music and a good smell and
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be treated and pampered. >> when you go to a really fancy hotel and they have a spa treatment but it is $600 this sounds like -- three steps and 30 minutes, best skin of your life. i have to tell you, i want to try it out are you in new york? >> absolutely. we're all over the world and you should try it out because there is no down time. you'll be -- feel great. most consumers walk out raving we have one of the highest mps scores in the category i think the highest in the category depending on how you measure is so high consumer loyalty and you look immediately great you could go right to work and your skin is clean and glowing and your makeup goes on better and you feel better about yourself whatever it may be it is just a clean health, clean beauty feel good about yourself treatment. >> when i look at your documents, it seems like this is something that a lot of men are doing. >> absolutely. in fact, when you look at
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medical aesthetics, it was about 10% men, and 90% women this is trending closer to 30% and i think it is going to grow even faster as we launch more programs and products directly at the mail. so this is omni channel. we sit in sephora, we sit in hotels, we sit in doctors offices, we're all over the place. >> now help to understand this because you're great at valuation. $2 billion valuation, that's roughly 11 times this year's sales. and that is 88 times the 25 million in ebidta. first of all, you could say, jim, first of all most of the companies aren't even profitable and ours is profitable and second you understand where something sits in this space is that -- are people ahead of themselves or is it just the growth prospect is so great? >> i think there are two things. one the growth prospects are tremendous this is a company pre-pandemic that was growing over the last few years at a 52% top line so
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great time for top line growth multiple levers for additional growth not just expanding in the u.s. over just very low double-digit penetration but international growth is massive for us and then i think you have to realize that when i acquired this company, i made this deal at the heart of the pandemic so i bought this at, you know, a rock bottom valuation. i think today's valuation reflects what it would have probably traded for if i tried to do the deal today. >> one thing that thought was fascinating. of the different influencers of social media driving purchases and i agree with that next gen beauty but something that i like aging millennials are spending more on skin care prefer experiences over products. so in other words they like to go to a place called a spa they're familiar with asking for this product, or will find it from influencers and is it something they do on weekends,
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at night because it seems like it is -- it is something that people want to do. >> you're exactly right. and not only are they doing it on weekends at night, they do it on their lunch break and what is even more experiencing to the component is we're seeing retailers, sephora being a key partner of ours, but others around the world, wanting to put the machine in their store even clothing retailers to create a shopping situation because this is something that could be done so easily and everybody loves it so it creates a good feeling for everybody involved. >> the machine is at the spa and it is a razor blade model, so once people get excited about it they could do a monthly subscription >> well some places offer monthly subscriptions. we offer, it is like a keurig machine. you could put whatever skin care regimen into our skin, whether you have rosacea or acne or oily or dry skin, we sell the
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boosters which are higher margin depending on advanced project and we just launched a hair care that will clean the scalp and help refresh the scalp and put boosters and growth boosters snt scalp. we have a home device coming, there are so many things yet to come with this treatment we're just scratching the beginning of what is possible here >> one last question, i'm used to -- i'm used to owners as the ceo, not the executive chairman. you have a pretty experienced terrific ceo but in certain point, i mean, is it his company or is it your company? >> look, clean carnel is our ceo. he runs the company day-to-day that is his job. he's the boss. i'm working with clint on strategy, on m&a, on investor work and really just as a sounding board to him as this is his first public company but incredibly experienced guy and he's done an amazing job
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with this company already. i'm excited to see what he does next. >> so you go into the office or there is no real office, but this is really active for you. you're not going to do three more spacs >> no, i'm not a serial spac guy. this is what i want to do. my legacy hopefully is a beauty health company and i view this as a platform. i want to build this company and create a bundle of the beauty health services. and really be the best that the world at the providing these technologies to med spas and hotels and aestheticians aaround the world. >> and i always laugh, i guess you did the same thing i did, was like spa, spa, spa what do they have. and what they have now is beauty health brent saunders, executive chairman of the beauty health company, it is not a spac, it is a company. thank you. great to see you again, brent. i appreciate it. >> thank you. "mad money" is back after the break. >> coming up next, cramer's bringing the thunder
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and answering your burning questions. in today's edition of "the lightning round. >> next live from south florida, following the surfside condo collapse, inside of the investigation and the search for answers. plus derek chauvin sentenced, the fallout and reaction ♪ i wish that i knew what i know now ♪ ♪ when i was young... ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money -
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sign integrates what the tools are already using so you can grab signatures across organizations and even time zones to save you money, materials and mileage. making it easy to sign here from anywhere so you can do more everywhere. to take workflows further, trust adobe on it orchestration by cdw. it's time. it is time for "the lightning round. and then the lightning round is over are you ready skee daddy michael in virginia. michael? >> caller: booyah cramer. >> the chill man is in the house doing well what is up >> caller: aocd car lot. >> i'm done with the used car
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lots by now. car max had a peak but i'm staying away wendy in georgia wendy? >> caller: yeah, hi jim. >> hi, wendy. >> caller: how are you doing in. >> i'm doing fine. how are you doing? >> caller: good. i got my whole family here their all excited. >> hey, guys, how are you doing? >> hey >> all right next caller or we could maybe get a stock? hit me wendy >> mankind. >> a hated the tock for the longest time and i was right but everybody on twitter kept saying how could he hate it the answer is now it is a play that i like and you could spell the whole family it is just for speculation. there was a buzzer that went off. you could ignore it. go to zack in washington >> caller: have you heard about the debt free company developing breast cancer treatment, atos?
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>> nothing because i don't know i got to look into that one. i mean, that thing -- that thing, that chart is certainly very positive. let's go to -- we're going to do homework jerry in new york. jerry? >> caller: hi, jim a big booyah from long island, new york. >> my wife is there right now. well played. what's up. >> caller: great six time caller here. >> six time. >> caller: i'd like to know your opinion about a company you recommended before, should i buy, sell or hold tpy, paste beneficial finance corp. >> i thought that was a good, it seems like a decent spac the spacs have been all kind of wiped out. i don't want to give up on it. i just don't and that is, ladies and gentlemen, the conclusion of "the lightning round." >> "the lightning round" is
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sponsored by td ameritrade coming up, what could nike and starbucks teach the street about doing business in china? cramer's got the answer next
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i have said it before, and i will say it again. biggest risk to our stock market and our economy is the possibility that china may take a run at taiwan. that is been a background risk for decades but we don't worry about it because the chinese community party knows that the u.s. government would intervene however in recent years china has stepped up pressure on taiwan the chinese air pors sends if planes to violate air space. last week was the biggest incursion. 28 fighter jets and bombers and hit with cyberattacks. the foreperson minister went on cnn and said we need to prepare for military conflict with china. remember, china doesn't acknowledge taiwan's
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independence and they want to get their hands on the the semiconductor foundries. they keep ratcheting up the pressure with military exercises so believe me i'm worried. but maybe i've been too dire in my projections sometimes you let your political views and your fears get in the way of money and that is what this story is about. last night we interviewed kevin johnson, ceo of starbucks. right when nike reported an incredible quarter and they both have great things to say about the business in china. i'm starting to think that the american companies who create lots of jobs over there could actually be fine even if our government and the people's republic stay on bad terms. like i mentioned, the chinese government is prosecuting, persecuting muslims in the northwestern region. it looks like they put a million people in what could only be described as concentration camps but when i asked kevin johnson what he was doing to fight for human rights over there, he said
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he's running chinese stores with chinese people who share the companies values starbucks isn't going to take a stand and while that might not be the right choice, it is the right choice for the investors people who work there do well. better than almost everybody in china. nike was more stark. while they didn't get more asked about xinjiang, management made it sound like their back on the community party's good side. sure nike got hit with a bit of a boycott. i say a bit. it wasn't full in. this spring when china went after foirn foreign companies but those boycotts doesn't stick. possibly because the analysts know if they bring it up, maybe they might not be invited back on the next conference call. and i ty we're seeing a broader turning point in america's business relations with the people's republic, not government but business. first there is tesla after listening to them avoid the xinjiang issue, not much to say about human rights or
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religious freedom musk could be a loose cannon but he knows how to make money. and china could be their biggest market apple has created a massive number of jobs in china so i'm much more confident than i have been that they'll be able to sell iphones over there. i'm hopeful now that boeing, which is still waiting for certification for the 737 max gets it because the chinese need planes lots of them and you see that happens, stock goes to 300. all of that said the community party controls all of the decisions. if they want to get rid of nike, they could do that that is why it went up so much and the shorts thought it would happen and any story could change on a dime and the short sure hope they will because that stock was up 15% last night, though, nike and starbucks shows american companies that if they keep their mouth shut about human rights, yeah, then china will let them make a lot of money
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not exactly profiles encouraged but at the end of the day these executives have a fiduciary duty and that duty is to you. to make money for the shareholders i like to say there is always a bull market somewhere and i promise to try to find it just for you right here on "mad money. i'm jim cramer, see you monday the news jim cramer. see you monday "the news with shepard smith" starts now \s a fire continues to burn in the remains of the burned-out tower in south florida smoke filling the sky in surfside, making continues for tired rescue crews even worse. i'm shepard smith live in south florida. this is "the news on cnbc. the death toll rising, victims' families devastated. tonight, the race against time as rescue teams frantically search >> we still have hope that we'll find people alive. says h

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