tv Mad Money CNBC January 18, 2022 6:00pm-7:00pm EST
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up in this environment, it's never going up again try playing with calls they look cheap. >> guy said enough >> sorry about ♪ ♪ 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 "mad money." welcome to cramerica my job is not just to entertain, but to teach call me 1-800-743-cnbc
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>> the s&p plummeted 5.4% and the nasdaq dove 5.60%. >> the house of pain. >> some of the people on wall street want the fed to get ahead of the curve let me tell you in plain english rather than gibberish, they want to push down the price of everything they say inflation is so badded that fed may have to raise interest rates more rapidly than when we were thinking and we hear this drumbeat endlessly the rich inflation is for stocks to get crushed and many of them do many of them have short stocks and they want to have stock splits lower and who can plame them >> i want to remind you that while the federal reserve is putting pressure on the stock market at then of the day we're investing in companies and not trading cards or the pottery or pieces of eight, and it makes no sense to uniformly dismiss every
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company out there just because of what the fed does it's absurd. do you think microsoft says hey, we want to buy activist blizzard let's postpone no, they saw the stock was way too cheap and agreed to pay 70 billion for it >> a $69 million bid for glaxo smithkline they want to spend to make money for you. now let's talk about a market that got crushed and was a part of the dow jones industrials folly today. let's talk about goldman sachs here's what we learned and the company capped off a year that had record earnings and record for earnings per share, highest global market net revenues in 12 years, and record asset management and net revenues and record consumer management revenues so you think hey, that stock's going to explode higher, right >> no.
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it was down at one point by 10%. you'd think goldman was radioactive and i found nothing. even as everybody and his brother was saying that compensation was exploding and goldman would be crushed by inflation. it's just not ytrue they pay them less that should last go read the documents. and maybe that's as good as it gets and that's the last great quarter scenario and it was entirely certainly possible. in 2016, and 2017, 2018 and 2019 and 2020, and 2021 earning almost $60 per share every year was better than the last every year that was supposed to be worse and it was better we did hear some disquieting things and outspending all of this financial technology and competitors. he does compete against them and goldman not so much. that said the analysts are forecasting a total collapse in goldman's earnings thisia year.
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more than $40 last year because of increased expenses. when you go over the fine print, one thing is clear goldman sachs is in complete control of its expenses and if they'll earn 10 million this year because they brought in 60 million in fees, that partner's not guaranteed to make 10 million again and it may not make 10 million and it's variable, both ways and that's how the bonus structure works i know trading that when you get this big selling like we saw in the stock today the selling is not done and there's more to come, but just like the market has made up of individual stocks and since when is goldman's advice not giving a premium. do you think that's advice do you think companies spend $70 billion and they want robe o advice no, ridiculous there are two of them and let's go up. we have two analyst
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recommendations for boeing in part because business is about to turn it up around the world and in part because of all of the terrible things that happened in 2019 and 2021 are unlikely it happen >> sure, boeing can get a new cfo and they might say hold it we need to raise more money if we'll expand as much as we want to and not wreck our balance sheet, but as a said in my morning meeting video available only to subscribers of the cnbc investing club, come on, member, bring it on. this is the year that it gets reapproval it's when the airlines realize they don't have enough planes with they can staff their airplanes again. it's the year of boeing. so circling back, should goldman sachs be back because the grim reaper wants everyone to make more money and now to get richer and -- if rates go up a quarter of a percent, do you think there will be a dufoofus saying i dont want enough planes forget the new customers, all
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right? let's make as little money as possible and how about a percent and a half and they're going to buy the darn planes? do i want to be in housing if the fed takes up huge, how about furniture in maybe not so much you know what? people have to wear clothes. unless the fed says from now on, we don't want anything to be worn with hanes brand t-shirts j. powell will come down on bruno cuccinelli, look out does porsche have a high performance data center? what happens is we have to get all of the scaredy cats out of this market and they'll get rid of the individual companies. when they started the investment club i wrote the word yieks on my board, yikes! yikes isn't much of a strategy it's just what people did. just because so many people seem to use it as a guide doesn't mean it's right. when you pick stocks, your only
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pieces of company and if you're owning companies then what you're seeing is goldman sachs, premiere investment bank and selling at six times next year's earnings and it can't repeat what it reported and that's watt bears say every year and they could be wrong again the world says these results were mixed what happens if they get less mixed. when we pay less for a company that's less micked pay more, you decide the world says goldman is not doing as well as expected and it's apples to apple, it's better than morgan stanley, bang of america and citi and a one year, a five year and ten-year basis. bottom line. go ahead wait until morgan stanley disappoints tomorrow who knows? pnc, how about the building alone, wait until that collapses and take my approach, where it is almost impossible to get a onand proprietary advice that they've also paid a premium for for decades and decades and you can get the stock for $70 less than where it was two and a half months ago it's a steal
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mitch in new york. mitch? >> hi, jim cramer, thank you for taking my call >> my pleasure >> okay. about a week and a half ago linday was at 352.18 and today it's at 321.16 down 7.58 i heard that was improving industrial production worldwide. it is set to gain from the recovering gas demand. do you see the share price increasing and maybe a stock split in the future? >> i don't know about the stock split, but jeff marx and i discussed this very issue for the investing club this morning. i said, when do we buy it? it's down again and we might be able to get it cheaper if and might be under 300 i think linde is right and i think the company will do well and you have to start picking at the stock down seven
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hayden in oklahoma. >> jim, hope you're doing well this is hayden in oklahoma >> i know you're not the biggest fan of the stock. >> no. i'm curious to know why you would want to stay away on the stock on the precipice of a short squeeze and 90% owned by retail and quite frankly the current price does not matter when there are millions of naked shorts that must be covered and with the overall market is sort of a golie, you almost have to wonder if there is a major liquidity issue. >> it could be i think the company should have offered even more stock. you have one of these periods where if anything has a lot of debt, that stock goes down and that's the way to look at it and it doesn't seem to matter whether it's a short squeeze or not. >> they've done a great job. let's go to charles in virginia. >> charles >> how are you doing, jim cramer >> how are you, buddy? >> i'm having a good day thank for the question how about you? >> i'm good, and i'm a great fan
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and so grateful for having me on i'm excited. >> excellent excellent. >> mr. cramer, i remember that you had featured unity software on your show maybe some time last year and i built up a position and it kind of had a run last year and since then it has fallen back and i haven't seen any news on it and i was wondering if it was a sweeper. the reason why it's not making money. the reason why it's a great investment, and john has a multi-year strategy and it's got one of the best metaverse situations going do i think that the stock should be bought here at 32 billion when it's losing money i would buy a little and i would buy a stage at, 200shares and 50 tomorrow and 50 on the way down and that's how we do it with the investment club i cannot tell you otherwise. tons of lunacy on the market today. we have to get the fat cats out of the stock market and then we can start thinking about individual companies and owning a stake in them because, by the
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way, that's what we do i think a stock like goldman sachs is getting to be a steal not yet, it's a big sellers, but you get pay point. on "mad money" tonight, oil are at their highest level in seven years. what can they hold to the hot commodity. i'm talking to rusty brazil. the airbnb says he'll stay in a dipt town or city every few weeks? i'll give you my take and a knack for spacs. they're expected to close this deal with sports betting group super group come the coming weeks. i don't like spacs, but what are the odds of a favorable return so stay with cramer. ♪ ♪ don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to
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♪ ♪ sglu the new year has been roufr in the stock market and the oil prices shooting up to the mid-80s for the first time since 2014 can the spoil rally continue and what else is happening in the patch? when it comes to energy, my favorite analyst by far is rusty brazil, the coo of the consultant at rbn energy and he's also right, which is what i like this weekend he and his team published their top ten prognostications for 2022 and this year's list has a lot of interesting calls. don't take it from me. let's go to rusty. rusty, welcome back to "mad money". >> hello, jim. good to see you. >> first, i have to start
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because it's the obvious goldman says it's going to a hundred and i know it's not necessarily at the top of the prognostication list because it's a little commodity oriented, but what do you say? hundred or 50? which way is it going? >> i think it's going to a hundred, jim what's going on right now with political issues and geopolitical issues and what's happening in the uae and drone attacks and the ukraine and all that kind of thing that's got crude oil up to the highest price it's been since october the 13th of 2014 just like what you said, but there's an awful lot of momentum around what's happening out there aside from the fundamentals do you remember what happened back in november where it just looked like so much of the market really wanted to push prices into the triple digits, into that $100 range and then covid happened and the whole thing went kafuey.
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they will make it happen and the only question is when and for how long >> wow if it's when and for how long i have to think that the perm onthe number is the highest in december than they've ever been and it's a great place to take dw advantage of it. perhaps you can tell us who has the best break even so we can make our decisions >> i don't know if i can tell you that, jim, most of the producers have break evens in the 30s and 40s. so if we're talking about prices that are netting these guys back to something in the 80s or 90s or even higher then it's party time everyone is making money >> if that's the case i know that your number one prognostication, waves of deals are coming to explore public company translation and optics this could be a situation where they sell to smaller companies that are private equities.
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>> they sell pieces to public companies. the guys that have the focus on esg. the esg cops are looking at those guys, but the smaller companies, the private companies aren't under nearly so scrutiny. they're doing the simple deals and they're just selling acreage to the privates and then you have situations where i'm a public company i own the royalty and i own the rights to produce the crude oil and natural gas, and i'm going to get a royalty on that if i sell that to somebody else and obligate that party to drill that acreage, and they make the money by drilling the acreage and i make money by getting a royalty on the acreage that i couldn't drill because wall street's on my back. >> wow there's a lot of opportunity there. >> if we got $100 oil, rusty and
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it's not controlled by us then we would have to think that the pioneers, the diamondback, the conocos can start pumping more and want wreck the price >> they could, and my sense, jim, is thaefsh's looking around and saying somebody needs to go first and if someone would challenge the conventional wisdom under a scenario like we've been in the last year and ahalf where we've got constrained capital spending and it's constrained capital spending because wall street is looking over my shoulder well, you know, all i've got to do is drill a well and at the kind of the prices that we're talking about here i'm going to make a 70 or 80% discounted cash flow rate of return or i can take that money to drill that well, and i can give it to my
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shareholders, and they can go invest it in, what 3% 5% or something like that? so at some level it doesn't make any sense to forego opportunities like that, but if i have to, if i'm stuck in a situation where i have to do that, then i'm going to make sure that i can get as much of that return as i possibly can. so if i can't drill it i'm going to make sure that somebody else can drill it and i'm going to try to get a piece of the action >> so what happened? we thought that electric cars were going to take over. we thought that the esg movement would make it so oil got uninvestable we felt that basically oil was dead on arrival and then this just occurred and in one year people felt it was over. i thought last year was the beginning of a move, rusty do you agree that it could just be the beginning of a giant wave here >> i think what happened both here and of course, in europe as
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well as the world figured out that we're going to go through an energy transition, no question about it, but it will take a long time to get there and we've got to get a lot of hydrocarbon energy in the meantime that's the only way the energy transition can possibly happen because it's just not going happen for the switch. so it will be years and we have to be sure that we make the right investments to be able to get to the energy transition world whenever that dully actually occurs. >> if russia invades the ukraine and it's a cold winter europe and the major dislocation in natural gas to last more than a week we saw a major dislocation in natural gas in europe, when natural gas got up to $60 and it was 12 times what it was here in the united states.
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>> what happened, they bought a lot of uslng from other countries and they bought it in such a way that was going to look asia, and that's the only way that europe will survive if it turns out to play that wi way. >> i believe that the companies do as we talk all of the time and there are so many better companies doing what's right north of 100 this whole group can be bought, everything could be bought. i want to thank you, rusty for being always available and everybody should be getting this newsletter, and i read it every morning. the ten predictions were fabulous thank you so much for everything you do >> thank you, jim. thanks for having me on. that's rusty braziel at rbn energy at 604 today. i got his bulletin and i thought i have to have him on air. "mad money" is back after the
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for the last two months we've been living through the growth stock apocalypse. to crack down aggressively on inflation. we've seen lots of high-flying tech stocks get beaten into a pullk. i don't see any of them coming back any time soon which is why they circle the wagons to provide real stuff and real services to generate real profits and my theme, investing club i'm all over it that is the theme for 2022 however, the bloodbath in the growth stocks has started to create some buying opportunities
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especially after another hideous day like today, you just have to be more selective and start asking the key questions, are they making money or are they losing money >> or, as we say in the investing club, more money, more problems most of the recent ipos from the class of 2020 and 2021, they've been absolute disasters. i was going over the cnbc and the millennial list. i can't, it's like a horror story. the stocks, like the change lilchangeling and the earnings are non-exceptence which makes them totally toxic when we worry about raising inflation and rising interest rates. you know that book i've thrown at you so many times and there's always an exception and i've got one of them for you. airbnb this is one of those infants that's been thrown out with the growth stock bathwater it came public 13 months ago there's nothing you can do
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it's when it happened and unlike its peers, this thing is are you ready skee-daddy, profitable and sat the same time when the guys have totally disrupted the lodging market in an environment where there are a million new omicron cases today, airbnb remains the safest to travel and much less risky to rent someone's house rather than taking a chance with the hotel where tons of people can get a breakthrough infection or most importantly in an elevator it's annihilating everything and it looks like a high growth stock whether it's making money or not and that's why airbnb is hard backck to 2012 worth to the 160s before giving up one of those gain again and the stock seems haa handful of points below where it's currently trading and especially if you're downgrade
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today by a boutique investment firm and the senate at 9.30 to 154. why aren't i more turned off by it first off, there were stocks that need to be sold and i don't think airbnb is one of them. it's been painted with the same broad brush. my feeling is that people have been selling this one without much thought because it came public during that period, the heyday, and it seems like the kind of online service that's gone out of style in the wall street fashion show because we know they're a ton of online services stocks that are being sold i think that's wrong airbnb is not like the price for sales stocks because it's been profitable for interest, taxes and amortizations and we have to find something people are treating this like it's a brand-new tech play, pre-revenue. it's actually a mature enterprise when covid hit two years ago they used that as an opportunity to restructure the business and creating a much leaner cost structure and in the end airbnb
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was more profitable in 2020 than it was in between the are 2019 has anyone else mentioned that to you i find that extraordinary. they reported a string of results and they actually posted outright positive earnings per share and not adjusted numbers and unlike many of the newly public peers and numbers i don't understand they've had revenue guidance and the management gave us commentary that was bullish talking about greater year over year margin expansion that they saw in the previous quarter. look, if it was still, they'd be buying it hand over fist right now airbnb is earning it 1 r per share. however, i've got to tell you, when i look at the investments i think the numbers look incredibly light airbnb generated a billion for interest, taxes and depreciation and am ordization. >> that's a single quarter and albeit the strong efrts of the year in 2022 they're on track to generate 1.8 billion in ebidta
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and if that's trading it a buck of sexual earnings, and yoerdz, i think airbnb is pays are poised to deliver surprise in 2022 and that's what allows stocks to derally from the ipo complex and that whole era and the whole class that's got to break out of second. if omicron burns through the population rapidly as it seems to have done in the countries where it first appeared then we can quickly get back to normal which would be a huge boost for the travel industry and we've promising signs that it's peaked in the northeast and we'll see it sooner because that's what we've seen every time covid has receded and believe me, this is what's great this is leisure travel this is not for business travelers because of zoom, but even if i'm wrong and we get hit with more variants i still feel good about the prospects this has become the latest way to travel.
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no packed elevator rides and no wearing of masks while walking down the hall. that's why i'm not worried about omicron crushing airbnb. if we can put the pandemic and the fed aside, i don't know anyone wo disagrees with it and they've transformed the entire lodging industry and now they control their slice of the industry i don't think it will ever change back. it will just get stronger and this was true even before the pandemic because it gives you a better value than what hotels offer. there's a reason marriott rolled out an airbnb, homes and villas by marriott. nobody has come close to this model because they have an excellent brand of both hosts and travelers. this company is what's known as a category killer and they've become a dominant space and that's what we're looking for. the moat the moat
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it's more than a surrounding -- and it's a surrounding river with class 5 rapids. no one's getting through it, plus thanks to the pandemic, many more people have tried out airbnb and they're better once the world goes back to normal and it is an incredible value and i love it. the rice of the rise of remote road, and just today, ceo brian ch check offy, a longtime cramer fi fave the last time we spoke with airbnb's business was people booking times longer than a week and a fifth of the business was with people booking monthly stays and it's not just a travel service now. at some point they're just subletting homes and that's a space. i think it's incredible and if they're cooped up they just go and save somebody's space over the weekend. the bottom line, i know it's
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truly hostile to newly minted growth stocks and it's down 27% from its high and maybe because it's down 30% and the bigger as it goes down like we do in the investing club, and i think this is a fabulous long term winner that can beat wall street's earnings estimates and as they deliver the better than expected numbers and the stock can make a major comeback you don't know when they'll start going down, but if it's profitable then it gets cheaper as it goes lower and you can justify buying it on the way down as you need to be there when that happens. let's go to jay in washington. jay? >> hey, jim, boo-yah >> boo-yah, jay, what's up >> well, i'm calling today about a travel stock i'm interested in knowing what your feelings are regarding booking holdings i bought the stock formerly
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pr priceline when boynton was the ceo and i'm worried if your seeing more down side. >> i actually think that stock hasn't fallen enough when i look at it and as much as i admire the company it's just not down very much from its high compared to a lot of other of these major growth companies it is profitable, but i'm not paying 55 times earnings when i've got companies like goldman sachs that i'm paying six times earnings it just doesn't work for me. i think airbnb is a fabulous long term, i'm not saying tomorrow the stock should be able to make a major comeback much more mad money including my exclusive with sports entertainment acquisition corp ahead of the spacs super group could it be a home run for invests on or just another dud in this business i'm talking to a man who is a part of the deal earlier today, microsoft plans to acquire activision blizzard in an all-cash deal. so what did microsoft see in activision that others didn't? i'll reveal it
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and the rapid fire tonight's edition of the lightning round so stay with cramer! excuses happen. what? it's too windy. but with a huge selection of wellness support products for nutrition, sleep, immune systems and energy, cvs can help them happen a little less. the living room slash yoga shanti slash regional office slash... and this is the basement slash panic room. maybe what your family needs is a vacation home slash vacation home. find yours on the vrbo app.
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♪ ♪ we talked about the insanely competitive online sport business where players offer expensive promotions to gain market share i'm worried about the business for the moment because there are simply too many companies compete for example customers and i think there's a huge opportunity for anyone that can come in and consolidate the industry profitably which brings me to super group, the parent company of betway, an online sports group with a small presence in europe which is about to merge with sports
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entertainment acquisition group. i know they've had a ton of hideous spac deals and it's a rare sports betting stock that has both growth and profitability. if this deal goes the way most spac merge verse gone recently i wouldn't be surprised if it gets hit. don't take it from me and let's check in with the chairman and ceo of sports entertainment acquisition corp and more importantly, the chairman of super group to get a better read on the story welcome back to "mad money." >> thank you, jim. condolences on your eagles, but look on the bright side, you were a immediate of the giants and the redskins >> that's true all i can tell you is that football is more fun than ever which brings me right immediately. >> yes, it does. >> you should be executive vice president of the nfl wild cardec wooend how good was it for your company? >> well, it was a terrific time for the fan, and i'm sure the sports betting customers out
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there had a terrific time as well and not only with great entertainment, but also the very rich offerings with a lot of companies and one of which was not ours so a lot of companies are doing that right now, but that's not really super group's game. >> okay. so what is your game how do we differentiate you from the other guys because the other guys' stocks keep falling and falling. >> well, you know, jim, at some point a couple of weeks ago and maybe it was a couple of months ago, irremember you saying that none of these are investable and you might have been right at the time, but i think that is going to turn which is to say new markets with no incumbents are always very competitive. why there's no one to exert discipline and show that you can still get and keep customers with a good customer experience. so it's a mad dash for market share, and add to that that the
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capital markets in america want it for months and months and months and growth at any cost and of course, that's behavior that you're seeing was entirely rational and capital markets wanted it, that was the model and you have each state in america is a new market, so you have this intense competition because there are no incumbents and everyone thinks they have to get market share to survive. that will rationalize and it will probably rationalize very quickly now that the market has shown its own level of discipline. >> well, i do have to question the cost of acquisition. for instance, the betway promo code you had a $250 risk-free bet on wild card weekend to have the rams beat the cardinals. it would pay $250. if they were to lose they'll
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credit your account for $250, but how many of those can you do, though >> you can do those for a short period of time with a select group of people that are first getting introduced to the business model and the customers coming in the door, you need to have an offering with a good enough customer experience driven by tech and that means they will stay for a long time and if you look at the cohort aging for a company like super group, you'll be able to see that they keep a large percentage of their customers for a very long time, and you can't do that without giving them a good experience and good entertainment. >> one of the things that i've come to learn about spacs is the people that are in your chair tend to leave, but you're not, and you'll stay on as designated chairman there's no analyst coverage, but you've done your del with goldman sachs. is there any idea that the company would write against your
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company and i can't figure out how they're doing. >> yes, we did an analyst teach-in day that was extremely well attended and i think we're likely to get coverage from analysts in the gaming sector and analysts in the tech sector because there's not an easy set of comps for 100% online entertainment company in the gaming space, so i think it's going to be covered by a hybrid of people and they'll come with their own points of view and opinions, and i thank shareholders or potential shareholders who want to read that kind of information will be able to get it, and i think that's going to happen >> one last question, there is a great page in your debt which has commercial partners with cash consideration and commercial deals while i watch the different networks, none of them seems to figure out betting i would figure out that you could be a partner of is e-spn
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and tnt, now i have to look at an outfit like yours with real pedigree and say, look, we've got save mono pep the partners in the entertainment space and what they want to do and linkage is occurring and yes, i call it the elephant band, and it goes back to this investable concept. does the market value for these things comeelephant band, and ik to this investable concept does the market value for these things come down and strategies emerge, there will be strategic activity and i think being in the game is important which brings me it super group, and i just think back to when we negotiated this deal almost a year ago, almost a year ago and we didn't want to rest it on crazy multiples and crazy five-year projections and we wanted to rest it on an
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existing business model that had proved profitable in ups and downs over years and then we wanted to rest it on a discounted cash flow analysis and that's what we did, stress tested where some things can go wrong, and since then. since that 12-month period, what has happened the company's performed against the projections and it's opened up in double digit new markets and it's stacked up with 100 new cash on the balance sheet and it's projected growth and an unchanged 2022 projection. >> i just can't find that many things in my landscape that look like that. >> no. you're absolutely right. i've known you for many, many years and you're a truth teller and moneymaker >> eric grubman with sehh. maybe one of the four or five spacs that i even believe in thank you, eric. good to see you.
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>> likewidse, jim. take care. >> it went longer because i'm very interested in this company. >> give us a call, cramer's got the answers to all your burning questions. the lightning round is next. get in early, get in on the cnbc investing club with cramer the only club with exclusive trading leagues. for early access submit your e-mail at cnbc.com/jointheclub
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every step along the way. every time you hit a milestone, an anniversary, a life event, the emotions will run high. making sure that you have somebody, a team of individuals that have seen it before, have seen every circumstance and seen every challenge, and have your back when you need it most, is one of the most valuable things a financial advisor could provide to a family. i am vince lumia and we are morgan stanley. it is time it's time for the lightning round. >> sell, sell! >> and then the lightning round is over, are you ready, skee-daddy the lightning round with cramer. gary in virginia
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gary >> boo-yah, jim cramer >> boo-yah. >> thank you for taking my cell phone call i get your newsletter and part of your investment club. you were singing the praises of ford and ge a long time ago. >> yes, i was. thank you very much for saying that >> a great heart and a great mind ford and ge are my number one and number three stocks now, and i have a third one i'm heavily positioned in my financial stock portfolio with covetra. >> i want you to do that you know we had soeta on -- i don't know if you saw petco and how bad that's doing and the balance sheet. i like your company because i like prescription management and pets let's go to ken in new jersey. ken! >> hey, jim. my stock hit a 52-week low today. what are your thoughts on veva,
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v-e-v-e. >> it's consistently done things right and it is at 56 times earnings and you'll have to get it some girth. it will still go down a little before it gets cheap and we want cheap. >> patrick in pennsylvania patrick? >> boo-yah it was in evidence. >> thanks for what you do. tough weekend for the eagles and a tough day part market. >> there's at least a cowboys loss >> covering the 52-week low, and what are your thoughts on t-mobile >> i think mike is a winner if we had to start a position in t-mobile and it does sell at a high multiple, but it's making a ton of money let's go to john in massachusetts. john >> hey, jim. i'm considering buying a spac that's been out for about six months now and there are a lot of older and posted a $59 million loss in q3
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what do you think about wheels up >> i like it, thank you very much i am not recommending spacs unless they're making money and the last i looked that one did not make a lot of money and that's the problem >> and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade coming up, shareholders of this gamemaker just leveled up in a big way what does this mega marriage mean for microsoft after their blockbuster offer? cramer double taps the x button next ♪ ♪
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♪ ♪ are you kidding me that's what i said when i heard from bobby codeec this morning and he's the ceo of activision blizzard that he's selling the entire company to microsoft, a huge premium where the stock was trading and a colossal home run for you if you're a shareholder. bobby had no choice but to sell because he's been taking flack presiding over what's an ugly corporate culture. the wall street journal laid out this morning along with the firings and resignations and it was brutal i don't want to down play it it's a real problem. how about microsoft finding value in activision because its stock was seriously damaged even though the enterprise is pretty much intact. this is the company that's produced call of duty, world of
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warcraft and overwatch not to mention buying the makers of candy crush, the mobile sensation which my wife plays incessantly at any show that i'm watching that has any attention to it like "mary of kingstown" season 3 considering that microsoft bought linkedin and the stock was cut almost in half it's the most opportunistic of companies, and they know when to buy and use cash to pay for the deal there are a whole host of reasons why activision blizzard fit, they're trying to take over the xbox business with 500 million users. at the same time activision, they can help them catch up in the metaverse race each if you don't believe in the technology and i know a lot of younger people are dubious, wall street is totally in love with the conscept and that's what wil
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matter in the future it's the reason why they're sticking with nvidia as we highlighted today for the first time we live in a strange world where we expect biden's federal trade commission the ftc to block all mergers. i asked bob about it this morning on "squawk on the street." electronic arts and amazon, sony and nintendo the stock is still trading eight a huge discount to the bid and microsoft is paying 95 in cash and some governments around the world might try to stop this deal it's anticompetitive and the story is the kind that should be able to pass muster because there will be plenty of other players in the industry, but i'm wor worried that the biden ftc might have deals that it doesn't want to see and it can't include anything big and it is a bit of a stretch to say we need to be protected from the high cost of
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gaming and to me the microsoft act vi activision deal is worth more than what the stocks are trading for a good remind tore get on a down day like this one do you know you're smarter than microsoft? i know i'm not glaxo smithkline has a $65 million take over bit in unilever because unilever wants to pivot toward health care. i can't believe glaxo pointed down pol dent, excedrin, chapstick, sense sensodyne, and unilever is willing to pay 68 billion, and the fact that glaxo shut them down is pure greed it's very disappointing, still, i want you to take heart today even as portfolio managers are fleeing the stock market because of an uptick in interest rates microsoft and unilever will they see value hidden in plain sight
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with 68 and 69 billion suggest that whatever is ailing the company will pass at least with the companies that are profitable the unprofitable, sell them, not the good stuff i like to say there's always a bull market somewhere and i promise to help you find the january 6th committee comes knocks at rudy giuliani's door and the british prime minister has his own party members turning on him i'm shepard smith. this is "the news" on cnbc >> take a pause. this is about a cell phone signal we're focused on protecting lives. >> last minute action taken in the fight over 5g. what the mobile carriers just announced after a dire warning
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