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tv   Mad Money  CNBC  March 29, 2022 6:00pm-7:00pm EDT

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valuation is morgan stanley >> nathan? >> i can looking to the outgoing ceo of fedex's interview on jim cramer >> we will see you bac 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 some money my job isn't just to entertain you but to educate and teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. we do not know how things will play out in ukraine, although the positive chatter about peace talks about help propel the
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average. dow gained 338, s&p rising 1.23% and nasdaq out of control, 1.8%. pretty much every stock leading the way. but gain is a gain now i want to be optimistic about the negotiations with ukraine, but vladimir putin is not a trustworthy person for all we know, news that russia is pulling out of kyiv may be a total misdirection play he's in that area, who knows how far he went. many positive breaks in putin's long war against chechnia, too, but levelled the city. let's talk about what's happened since last week. legendary larry williams told s on "mad money" that the stock market could be on a big run because the s&p 500 just
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reclaimed. larry's been right pretty much always i started to remind you of what could go right, possibilities that oversold market could give us a good rally. you have to imagine the unimaginable you had to be thinking maybe there could be a genuine bull run. seemed fanciful now but looks reasonable in retrospect one reason it seemed fanciful, no one picks trakes the bears oe coals for scaring you. they're bolder than the bulls and never get called out what conventional wisdom got wrong, myself, i started to believe that putin had restored the army to soviet days, and
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ukraine would have lost weeks ago if true. now putin made a series of terrible judgments when he kicked off, accusing the jewish president of being a neo-nazi stooge senility or a holocaust denier puts too much faith in his own propaganda denazi-ification thing was insane, ukraine had already played role of president on a sitcom, and zelenskyy, got to wonder what is next, does he want to move east and break in two? east germany, west germany i think that's his style remains to be seen how much territory they can keep.
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negotiated settlement is a victory for the west, makes putin a weak leader and that's lethal in the strong man business a few weeks ago the main event was federal reserve. all the chroniclers told us that jpal would kill the economy to stomp out inflation. that's a possible but do you mind if we try to make money before it happens? big bad event when the fed laid out onerous path but after initial dip, the market started roaring back. rate hikes had been well telegraphed, just needed to get it over with big name strategists warned of a bear market. where the heck have they been? they ushered in the bear market in november. astounding that highly paid
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professionals went out of the way to caution you about something so far in the rearview mirror, we've been talking about that since november. bear market was here, unless you made a lot of money doing real things and returning money to the shareholders, it's bear. it has been. welcome the higher interest rates because inflation is eating them alive. wouldn't need to rely on endless price hikes to sell and deliver good earnings. ruinous for them biggest weapon against the bulls was possibility of inverted yield curve. short-term rates cross above long terms supposed to forecast or presume a recession. had to get out of stocks
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immediately! holy cow, was that wrong inverted yield curve may be bad sign, predicted recessions, might be more accurate than that there's debates if we had one at all, happen at 2:00 or last week or last night. if you missed it, one of the thi things you know, won't get lost in 2:00 and 10:00 wally world on this show. tried to discourage the trading, cnbc investing club we teach that managing money is getting great cost basis average price you pay for your stock. most of the problems get in bad bases, buying too high, leads to selling too low for many people. i want opposite results, preaching discipline people found fault in mccormick
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day and lulu but now higher than when it reported the awful quarter i told you i liked one more giant grievance i have against those who scared you into selling low, they relied on fed speak, doom and gloom and became selective chartists put up the fabled death cross pattern. short-term 50 day moves above the average -- another thing not good sign. death cross came at time when larry williams, historian, told me if the s&p can bounce authoritatively, if we get that, market would be off to the races. pointed out we've seen this pattern 21 times since 1929. 21 out of 21 it's produced a longer term rally than everybody
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thought. now it's up. and now the oscillator i used. extremely oversold levels. i have doctrinaire approach. it's limited hold your nose and buy something, market is coiled spring turned out to be incredible buying opportunity but same oscillator hit a positive number today. check the investment club morning meeting i do with jeff if you want to know more time to pull in horns a bit after insane amount of speculative buying today we've been scaling back a bit, although we want to buy some after the oscillator settles down, oils and agriculturals hit by putin's promises. i saw this wonderful show, "promises, promises," unlike broadway, putin's promises are made to be broken.
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jerry in california. >> caller: big-time west coast boo-yah to you >> can't get bigger than that, maybe lemon's gain after close what's up? >> caller: took your advice and named dog after best stock in the portfolio, snowflake, can i keep my dog? >> your dog has to live long and will prosper, not to mix metaphors. going to take a little while but heard frank, he's going to win. he will win. want your dog to have long and happy life, i think it will, snowflake. putin's promises are made to be broken ceo fred smith is stepping down to be chairman of fedex. i'm discussing his tenure and future of the company, with the man himself, icon.
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cramerica knows this is year of real profits, stock that fits criteria you want to buy, and learning how the kingpin it working to fight with the top brass. stay with cramer >> announcer: don't miss a second of "mad money," follow @jimcramer on twitter have a question? tweet cramer, hashtag #madtweets send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something? miss something? head to madmoney.cnbc.com. power e*trade gives you an award-winning mobile app with powerful, sy-to-use tools, and interactive charts to give you an edge, 24/7 support when you need it the most.
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fedex. we learned that fred smith, founder, chairman and ceo will be transitioning to executive chairman and passing ceo baton to president, final officer at beginning of june. smith is legendary figure in history of all american business started original federal express nearly 50 years ago, built to global powerhouse more than fi$50 billion. he's sticking around and successor is old hand but this is watershed moment for old company. time to reflect. chairman, founder and outgoing ceo of fedex, fred smith welcome back to "mad money." >> thanks for having me. >> not many people i can look at and say i can't believe you came up with a verb we all use.
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we say fedex even not using fedex. did you expect that to happen when you started this company? >> ofcourse not. it was simply we ran in front of a big parade as pogo the possum said, and became a great leader. demand for our services was just enormous. >> there were doubters from the day you wrote a term paper about it, weren't there? >> there were, but i had three separate marketing studies very conclusive about the demand. to this day what people misunderstand as they did 50 years ago last april, building networks is hard, and you have to put a lot of expense up front before you've got anything to sell wouldn't be very interested in a telephone company that could only let you talk to 25 states and no addresses overseas. so just as we were doing then, we're doing today with
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tremendous network buildout, now mostly b to c as opposed to b to b in those days. >> ended up perfect for the digitized e-commerce, with larr kudlow, we were talking to you as economist but how many millionaires have you created in your time >> i hope a lot. more importantly to me the way i look at the world, it's our blue collar folks i'm very proud of the jobs and benefits and promotional opportunities we provided for hundreds of thousands of them. if we created millionaires along the way, so much the better. >> i consider you a maverick tried zapcom i thought zap mail was good. you decided to go to europe, frankly having some time in
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business, having business in europe, they don't like to think like we do don't think it's got to be there right now. you're never daunted by challenges, are you sir? >> you got to remember, jim, going back to the network question, we have two peer competitors. sometimes people get mixed up what our competitive ecosphere, it's ups, a company founded 66 years before we started federal express, and dhl, which evolved out of the german postal service owned by the german government when you have networks you have to compete against, at&t, verizon, t-mobile, you have to have as big a network as the competitor we were under strength in europe and made acquisition, a long, arduous process, but just last night we integrated after
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four-year building of new cdg hub in paris, the legacy t&t era operations and fedex express operations just last night >> perhaps in some ways it is good to step up the executive chairman you have every quarter been very frank how europe is not where you want it. maybe it's time to give up because you got it where you want it. >> well, look, jim fedex is a company that's run by a team of executives i've never been an individual shouting orders from the bridge. we try to get consensus, and then we give our strategies and plans to a very strong, and i might add diverse, independent board of directors, and then we execute those strategies we're very confident in our strategies and we're going to show a lot of those that we haven't really showcased in last
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couple of years for very good competitive reasons in our investors and lenders meeting in late june. >> david on the morning show mentioned may have been acti activists involved here. corporate governance has improved because you split the chairman and ceo i haven't heard of the activists, you can tell me if they were circling never been clear to me. >> i watch you every morning, you and bloomberg and fox business news in my office on every morning. i've heard david say that. but 95% of the information i have about that comes from him having said that, look, we're not smartest men and women in the room if anybody's got an idea, we'll take a look at it. shareholders talk to raj and
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mike lentz in the past more with me there was no activist impetus, we had planned to do this at june meeting for announcement at shareholders meeting but appeared after i reviewed it we should put raj fully in charge because our fiscal year begins june 1st, now he's got two months to finish the business plan and it's his >> he's always done great on the conference call. maybe the next thing, got to go driverless as much as you can, correct? just have to be driverless and electronic maybe to cut pollution, aren't those two challenges that raj may face >> we've had for a number of years things we haven't touted but you'll see in late june, enormous effort for autonomous
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trucks on the highway. not in the city where we think the drivers are better for pickup and delivery of long distance vehicles but call it alfie, it's acronym. we're a long way down the road to doing that. but we're not going to get rid of our drivers they'll do the pickup and delivery and drayage if you will over time i'm very confident autonomous trucks are on the way. >> i know you as straight shooter and seen you say look we have to have relationship with china, we have to. probably among two or three companies able to do business with china in profitable and good way where are we and where should we be with china? >> the relationship is very tough. i believe very strongly in secretary of state cordell hall's remark when he began the opening up of the united states to trade after the first world
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war in 1934 with president roosevelt that when goods cross borders, armies rarely do. now that's not always true but i think it's a lot better that united states and china are trading on appropriate basis, maybe some things need to be restricted so we need to work towards harmonious relationship with china, not get involved in this kinetic warfare you're seeing so tragically in ukraine. as you know, i have some experience in that regard. >> i know you do i want to thank you for serving, for military, serving for the people, for your shareholders. you've always known they're your boss if there's one thing you could have go next in fedex, we want ceos to have great transitions, what should raj be thinking about? >> you should know since my
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earliest days because of my military experience we've had formal succession plans. when raj took over as coo in 2019, i told the board then, this is in the message today, he should be the successor as ceo and should move to nonexecutive chairman because that's the corporate governance model preferred by most. funds. so that's exactly what we did, only thing that i did as i said is accelerated it to two months before the end of the fiscal year rather than the june meeting. been working on this a long time and every fedex officer has to have two successors named. >> i want to congratulate you on wonderful career, i know there's a next chapter coming and hope you think of us on "mad money," we think of you with respect, iconic development and treating people right as you've always
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done thank you sir. >> very kind, jim. thank you very much. >> fred smith, founder, chairman and ceo icon of federal express. "mad money" is back after the break. >> announcer: coming up, find out why cramer is bullish on this outdoor beast next
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your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire sure, i mean today was crazy, everything went up. stuff that really going crazy is the kathy wood news. but when you take a step back. look at the pull-back since november, it's clear a ton of shocks deserve to come down, like the ones that rallied today, frankly but sellers have been so indiscriminate, it's created
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opportunities for buying solid companies. you just have to know where to look there are a couple of real companies with actual earnings have seen stocks unfairly punished if not pummelled. we've been picking through the rubble for you to identify the potential winners trading at deep discounts in particular, a number of growth names, used to have sky high price, but we want earnings, not sales. much more reasonable evaluations. nice short-term winners. exponential fitness, and that holly was good but another one tonight, you have one at home in your garage, kitchen, yeti. yeti holdings, maker of high performance outdoor products including coolers and drinkware.
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tailgate party, hunting and fishing. it's been put through the meat grinder with the fed mandated selloff and all things growth from november. from peak to lows, yeti was cut in half. fell from 108 and change to 54 now here of course people are scared to death of it. here all excited about it. isn't that typical we know it got too cheap in late february because had begun to rebound but not much haven't missed anything. 7% today but still down more than 40% from highs, which is what i care about. got a call from charlie in georgia on tuesday, wanted to know if yeti is worth owning, i said offhandedly i liked it but you deserve more than that i decided to circle back for
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more rigorous look at what is going on here. you deserve that first, you need to know this is a company with a terrific track record stock didn't take off until spring of 2020 when investors embraced great outdoors as only way to safely interact with people in early days of the pandemic even before catching fire, yeti was remarkably consistent. since coming public, haven't missed a single quarter, even shorted heavily. main reason, yeti's got a great brand. more in a minute invested heavily in the direct to consumer business, cutting out middleman, nice boost to margins. nike model, nike keeps going up, seen that? yeti has put up excellent numbers, but mammoth run in 2020-2021. in november selling more than 30
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times earnings, unjustified. expensive for coolers. once the fed signaled would get tough on inflation, got crushed, that's how you got 50% decline, from peak to trough. unlike unprofitable sales names i've been warning you away from, even though they rallied today, they get cheaper as they go down yeti is a lot cheaper. it was just going out of style, nothing happening at yeti. see something in half, natural to assume the company did something wrong. not the case with yeti at all. when we dumpster dive for you, want broken stocks of intact companies, not broken companies. underlying business has to be sound before i tell you it's worth buying yeti is. stock sold off because the
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market turned hostile. mid-february, recent results, a modest top and bottom and management earnings forecast a little bit weaker than expected. 2.82 to 2.86 per share and looking for more struggling with rising costs, even trump era tariffs that are taking bite out of the earnings pile but took the opportunity to slash prices herd-like behavior created impression that yeti disappointed in reality most analysts hate the change of price targets. they felt the need to play catch-up with the market seen that over and over this earnings period. they want to seem serious if not rigorous, waited for quarter to give cover, and yeti bottomed a
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week later cut the price targets right here oh, jeez, i'm sorry -- just erase that here they decided yeti is no longer any good. that's your opportunity to show this other terrific picture i was writing on which really tells you everything you need to know. cheap stock. see? mind meld with the next -- this is called a straiter -- i don't know this is a graphic. so what's the thesis here? last time talked to adrian shapiro, the queen of retail, how you need to be selective with these stocks. doing with beekman and nest. got to tell you, hirschel is the good one of the group. do something similar but yeti fits bill put through modest price
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increases this year and some analysts argue they have more room to raise pricing if cost inflation continues to be a problem. margin hit this year but gross is still up substantially versus 2019 all we can ask for, last normal year before the pandemic they're doing what they can, coming out with new products, some i really love, expanding overseas, direct to consumer new one, it's incredible, heavy for me that's why my wife lifts it second, this is right time of year for yeti. second and third quarters, people start doing things outdoors, cook, grill and put a lot of beer in here. and ridiculously cheap less than 18 times next year's numbers. 31 times historically, now 18 times next year's. last time was april of 2020
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before it embarked on 18-month rally. know it's cheap. management announced $100 million buyback through next february it's not nothing yeti believes its stock is undervalued and they have the financial flexibility to put their money where mouth is sign of confidence one fly in the ointment, went to ollie's bargain store and saw knockoff chinese thermoses, spitting image of my yeti. but you can't mess around, you have to get yeti i'm not taking a knockoff, even if i'm indeed a proud conscript into ollie's army. bottom line, when the market finds its footing after brutal decline, look for potential opportunities from previously expensive stocks that are cheaper. real companies with real
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products and profits they can return with buybacks that's not what happened today, pure froth doesn't hurt this stock is coming at ideal time for the cooking and camping season henry in california. >> caller: boo-yah jim loving the chips and guac on smith street. >> thank you very much $7 pacifico too. >> caller: a company crushed in previous days, revenue is expected to decline, maintains low multiple yield to strong dividends, repurposing stocks, footlocker now that nike ceo confirms a partnership >> i know they confirmed it, but my concern, they're not getting best jordans best jordans are given directly
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to the consumer. that's why buy stock of nike itself not get a stock that looks cheap, buy a stock with great growth, nike we want real companies with real products, hence nike return to shareholders with dividends and buybacks, i include yeti bottoms here, now, you can buy it "mad money" next, can a dash of stock bring heat to the p portfolio? and another entertainment company take a page out of his book, drive you nuts, and rapid fire lightning round stay with cramer
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it is time to pile on to the defensive recession resistant stocks that thrive if the fed reduces interest rates too harshly? that's the question you have to ask about mccormick, maker of spices, sauces and seasonings for all consumers, restaurants, food services, home. stock shot up to new all-time high 107 and change this month terrifying but pulled back a little bit today as wall street is feeling more sanguine about the future management didn't rise four-year forecast reasons i think it right they didn't but i think great opportunity, classic name and permanent shift in way we eat, lot more cooking
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at home. check in with the chairman and ceo of mccormick, welcome back to "mad money." >> great to be here with you exciting week for mccormick, had the earnings call and annual shareholder meeting tomorrow morning. >> will be talking about issues that really matter, diversity, esg and how your company is one of the great citizens of our time. >> absolutely. also talking about the the growing demand for flavor. i heard your opening remarks, couldn't be more right one thing that's going to be consistent in good or bad economic times, pandemic or no pandemic, consumers like to eat tasty foods, and in many ways when times get tough, flavor down to less expensive cuts of meat or stretch the grocery
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budget, flavor plays bigger role than ever. >> flank steak is double what it was last year this month, double so i would rather have a tradedown steak, tenderized or with one of your great flavorizers. which i love from new orleans, not have to change my habits one habits that has changed, people would rather dine in, buy liquor at liquor store than dine out, pay $15 to $22 for craft martini. >> i can't help you there. i will say though, restaurants have reopened and consumers are no longer locked down and forced to eat at home it's inflation that the consumer is facing and real of economic slow down because of fed action.
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going to be under some pressure and dining out is expensive. and jim, you're a restaurant owner yourself, you know that restaurant costs have gone up. labor in restaurants has gone up that's affected many prices, eating at home is more economical >> look, to your left, our viewers' right, a series of hot sauces, special to what i thought to my mexican restaurant part of the reason we thought we could get people to pay a little bit extra. there they are there, at home a fraction of the cost i try to get them for at restaurant i got to go experiential but used to not get the quality at home you're giving people right now. >> i appreciate that, jim. consumers are really trying to recreate restaurant experiences at home. repertoire of the average person cooking at home is much broader than it used to be
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and one thing about the pandemic lockdown, people got a lot of practice cooking somebody at home got really good at it, usually somebody found out they liked it a lot. it's not just the meal itself but the whole experience of making the meal as become something that families can get together around and have some fun. even for consumers interested in convenience, all kinds of new appliances in homes, air fryers and instapots, we're making products specifically for those, and grilling season is coming up super convenient, tasty and economical. >> i agree hoping it will be good for the clorox people and i know it's good for you guys. incredible rubs and great barbecue sauce there's fly in the ointment to address, not just for you but everybody. consistent inflation, of which you did mention even the fed has
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to take notice of, of course but this darn transportation thing. i don't know how you personally, as a great ceo, can solve the transportation issue >> well, you know, personally we can't, and transportation is one of the big challenges, of course we talked about supply chain disruption last year, lot of that was around transportation, ocean freight, backlog at ports. lot of raw materials come from exotic places. don't grow a lot of black pepper and vanilla in the united states, zero trucking and freight costs is third largest component. raw materials, packaging material, then freight as well you're right costs continue to rise and i think that's maybe part of the challenge in the first quarter.
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quarter right up the middle, demand for flavor strong, gaining market share but costs continue to rise, and pricing actions we have to take to pass the costs along are still lagging cost inflation and won't catch up until the second half of the year but it's a -- that cost environment is a challenge. >> say the second half of the year we catch up, is that cost increase you put through or do you think might be end in sight to the madness >> i am sure there's an end in sight somewhere but not this year there's a lot in the pipeline right now. unfortunately we have to take action to mitigate the costs we've got visibility to. part of that is to be sharp on costs ourselves, eliminating discretionary spending where we can, but with the magnitude of the increases, lot of it has to
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be price increases costs have to make way to the consumer. >> good news, your stuff i find in terms of value for price probably most important thing i can get in a couple of the aisles of the supermarket. that's what you do, make other stuff not as good as we would have liked this time last year taste just as good i appreciate everything you do lawrence kurzius, chairman of mccormick with another great year "mad money" is back after the break. >> announcer: coming up, a storm is coming. give us a call cramer's got the answers to all your burning questions the lightning round is next.
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>> announcer: lightning round is sponsored by td ameritrade [ bell ringing ] >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over are you ready, skee-daddy? that, ladies and gentlemen, is john in connecticut. >> caller: hi jim. john from bethel, connecticut. >> excellent. >> caller: i waited patiently to buy this stock, fell down to $90, scooping up hand over fist. fmc. >> the old food machinery company. ag stocks coming down. buy them when the rain is coming down kenneth in new york.
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kenneth! >> caller: hey, jim, how you doing? >> fine, thank you for asking. what is going on >> caller: i'm looking at pharmaceutical company, siga technology. >> it's inexpensive company that makes money. i don't understand why the value is low as it is. i'm not done, gabriel in massachusetts. >> boo-yah jim >> boo-yah. >> caller: bought this stock in 2020 and added to position, paid a surprise dividend but stock is down rocket mortgage. >> when fed raises, can't rocket mortgage, doesn't work matthew in new jersey. >> caller: hey jim sector beaten down whole last year, vff. >> doesn't make money, we don't
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recommend it it's that simple that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade coming up, lesson amc can teach disney about being the happiest place on earth cramer explains how the mouse house can galvanize shareholders by spreading around a little cheese next it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position.
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come to think of it, we spend way too much time poking fun at adam aron for catering to the apes, legion of self-proclaimed boosters who bought his stock after they gave them exactly what they wanted. creating rabid shareholder base. i have problems but shouldn't look down on ceos catering to the shareholders, that's their job. said the key decision is start
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showing love to the individuals who go to the movies, not the big guys who don't care if he wins or dies appeal to individual investors allowed him to raise massive amount of money to pay down debt higher stock price based on loyalty is better than based on institutions chasing performance, a benchmark brings me to unorthodox ideai thought of this morning, maybe it's time for disney to take a page from the amc playbook ceo has hands full and host of problems, from covid hitting theater and amusement park and the disney plus streaming service. anyone who can prove they've bought five shares of disney should get all sorts of perks from the company maybe a discount on disney plus,
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content is sunk cost maybe discount at theme park or the box office, or cruise ships. disney has tremendous brand loyalty that doesn't translate into shareholder loyalty, there's not cross over there i think adam aron is right that most like to court big institutions, fickle as wind by nature, neglecting individual investors with love for them say what you will about the apes that continue to buy amc, they're loyal, and disney could bring in shareholders for life one last thought about the power of individual investors, yesterday on the rumor of stocks, tesla stock gained $84 billion, all home gamblers, professionals hate that kind of move
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if disney would show them the love, something that institutional managers would regard as cosmetic, could make a huge difference in the stock price, not unlike right here yesterday. there's always a bull market somewhere and i promise to find it for you right here at "mad money. i'm jim cramer see you tomorrow vladimir putin, watch what he does. >> not what he says. i'm shepard smith. this is the news on cnbc the new claim from the kremlin, scaling back the assault near ukraine's capital. but is it retreat? >> this is a repositioning, not a withdrawal >> repositioning where what's coming next a trump white house communications mystery on insurrection day, a gap in phone logs 7 1/2 hours long as reuters entered the capitol, with whom did th

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