interesting, i know the huge gap was concerning but i like the long-term plan of capturing those other people who are not paying for it. >> thank you for watching "fast money. we'll see you back here tomorrow at 5:00 for "fast. 5:30 for options act "mad money" with jim cramer starts right now. >> 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," welcome to cramerica other people want to make friends, i just try to make you some money my job is to educate and teach and call me at 800-743-cnbc or tweet me at jim cramer the asterisk it is a wonderful thing. it allows to you take all sorts of liberty as long as we're willing to take more rick. in fact, i think the asterisk

saved the whole darn session today with the averages opening down a bit before they came roaring back dow only gaining 435 and the nasdaq surging 2.69% led by a bunch of asterisk companies. what am i talking about. this morning after "squawk on the street," we were handed a news release with revised numbers from software and web king microsoft as you could only imagine, in this treacherous environment, they're visions were not good. not good at all. it seems that because of currency fluctuation, microsoft could not be able to meet theest masts. my partner david faber and said we saw that happen, the exact same thing happened with salesforce.com and it didn't matter so it shouldn't matter now but i immediately also acknowledged that we have to go through the whole decline. perhaps a hideous one before people realize that you could asterisk the currency, that is

just doesn't matter. david then said what matters is there is demand and obviously there is zdemand at these levels which is better. sure enough microsoft stock opens hideously and sheds 10 points until it stabilized next thing you know it starts to trade higher and by the time by 12:00, cnbc investing call it was only down four points. i pounded the table hard on asterisk saying this number doesn't count. by the end of the day, the stock is up a couple of bucks and helps lead the market higher to me after months and months where everything is viewed with negativity, this u-turn is important for you. i say that because this is down to the third time in a week where wall street was willing to overlook text book bad news. asterisk it away the first happened last week and nvidia reported solid first quarter results. the chip company but gave much lower than expected guidance for the second quarter. the stock was looking down it opened down nearly

$10 billion but quickly reversed and advanced 5% that day it could rally because management did a very good job explaining how the shortfall was caused by china's lockdown if they weren't able to sell anything over there, and they couldn't make some stuff either, then how could we count. how could that count against them yet they still came close to making the numbers in other words, market asterisks the kline lockdown the market accepted the zero covid policy could cause nvidia to miss the numbers. this is a radical departure from where we were as recently as two weeks ago when cisco got pummelled for saying the same thing. think about nike starbucks even you could imagine if we're willing to asterisk the chinese misfortunes. but by the time nvidia reported, wall street has a at attitude that shifted and then there was the debacle of salesforce.com.

they cut the revenue forecast. but the ceo marc benioff when he came on the the show, and he explained the forecast cut he described itan insane world where it is joy us to be in japan but the central bank has gone all in on debasing its currency in order to drum up business when people realize that salesforce lower forecast would still be above what analysts looked for, the stock soared and just like nvidia it has never looked back. and as i cold members of the club on my noon call, it still way too cheap. it could still go much, much higher so now we have to wonder, has the psychology of the market changed? since the fed started talking in november, this market has turned haneus everything except for energy or the utility where's there is nothing to asterisk except for a rare state regulators. we've had to endure endless declined based on port congestion and trucker shortage

and bear the overtime for covid and some workers to fill in for absentee colleagues and taking pain and having to fly in goods from china because ships take too long it is been an endless parade of excuses, no asterisk in side but i think slowly we're covering these reduced levels for stocks, wall street is willing to accommodate the shortfalls that are say beyond management's control now will the market look back and re-evaluate. i think the stock would have been nearly as hard. maybe not at all i believe best buy might have soared given everything you could say and an asterisk in that quarter i'm not saying management will get a free pass when they drop the ball in terms of execution my charitable trust is still smarting from paypal and nice rally today and al ford, but i'm starting to believe that this previously unforgiving markets that found a level to forgive

and even forget. so why is that is it because we've had a less than spoken hot data of late, some weaker housing numbers and not too steamless job claims but we need additional rate hikes. because we're getting to believe that china has covid under control. maybe. but who knows. how many time do they think we beat it and then it pops back. and we're at the point in the stock cycle, not the economic cycle. but where the underraters are no longer pumping out the bilge, the appetite for which there is none whatsoever. enough money has been lost in the new. why go back. go back to the old most of the stocks that have been public could be described as down right disgraceful. especially the spacs in many cases the whole enterprise is a mistake. it is only the greed of the

venture capitalists who funded them and the investment bankers who got these great deal cuts that inflicted deals on you which is why i spent so much time warning you away from them as i became a bit of a scold but the reit sent ipos are falling by the wayside they're dwindling. oh, oh, occasionally you get a rebound like chewy and much more legitimate than the class of 2021. so many of those companies will not be given a second chance because they won't have enough money to get back on course and suddenly more difficult to fund raise. the lack of new broken the moment you buy it stocks and the horrendous declines have had wall street overlooking some of the imperfections. not all. but some because the stocks have been so crushed in anticipation of multiple rate hikes you could be bold enough to buy a discounted product without much hesitation. i think we finally reached that

level. bottom line, the asterisks is back as long as the asterisk passed the nvidia salesforce microsoft test then you're free to do some buying let's go to jeremy in south dakota >> booyah, jim. >> booyah. >> good event on the investment company today. so thank you. >> you're quite welcome. >> i bought -- in april when it was in the high 140s and bought some more after you had ceo bine chesky on. had a lot of good to say about it huge first quarter, as travel was coming back and obviously they've stayed around the 120 range, it is one of those that you sit on and wait or buy some more or ged rit of it. >> this is one of the few, maybe one of four or five that i say you could buy. because the cash flow at airbnb is extraordinary they are making a ton of money but people don't seem to understand how to read a balance sheet. i t i think airbnb is a buy. to josh in florida.

>> hi, jim booyah i'm calling about norwegian cruise lines it is about 70% below its pre-virus high and they recently announced strong bookingest month ever it is time to get on board. >> i'm not recommending any stocks that of companies that are losing money there are too many companies that are making money. i don't want to do it. norwegian is my favorite in the group but i'm not recommending money losers any more. this is cost too much money for people when there are so many companies making fortunes. dwin in wisconsin. >> jim, a big booyah first time, long time. >> i'm liking this where ware you going? >> quick shout out to my cousin bennett. question for the chill man, data dog, two good back-to-back quarters, good revenue, good growth, decent amount of cash on hand, what are we thinking. >> i agree, it is just that it sells at 150 times earnings. it is a very good company it

just happens to be too expensive. the stock is expensive and the company is great and that is the way it is. guys, we have to asterisk things in other words, the asterisk is back you could overlook a blemish or two, and that may not be as important as we think, that is called an asterisk as long as it passed the inside, salesforce microsoft test you are free to do some buying on "mad money," a fed mandated recession and what should you make of a company like dow does it deserve a asteriskm and then deere and i found a glimmer of green in this difficult market don't miss my exclusive with the head of accelerate industry. and stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets

send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. ♪♪

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what do we do with the stocks of the big industrials now that wall street is terrified of potential fed mandated take pricing power to offset rising costs an not to mention a cheap stock. a battle for 1.4% yield. dow has been down about $4 from the highs however just since last monday they've been hit with three separate analysts downgrades they took it from buy to hold.

is it time to declare victory or one we're sticking with because the recession wrorys might be over and the company might beat is any way how about we talk to management directly the bank and chairman of dell. welcome back to "mad money." >> great to be here jim. nice to see new person. >> yes, it is great. this is a conundrum. people feel that you have to sell a cyclical stock no matter what when the fed tightens. because what the fed wants to do is tamp down inflation and you have been a beneficiary of inflation. what do you say to shareholders would are saying. >> don't want to let go of any dow. i want to get the capital gains. >> and what we've said to them and did last year was work hard on the balance sheet to get in an environment like this we don't have any maturities until the end of 2026. our interest rate and financial debt is fixed rate so we're ready for that type of an inflationary environment and

we're going to implement a new $3 billion share buy back program. so on top of what we've been doing, we've instituted a new program. so the yield, and the share buy back program is showing them that we have confidence in our ability to generate cash in a cash generating machine. >> you are that and that is the theme of dow and it is been dead right ever since the stock was in the 20s but you put through some price increases. are the price increases sticking and should we be worried at acertain point about demand. >> prices have gone up because input cost are up and oil price does clear the market in petrochemicals because most of the producers are based in gas 80% of ours is natural gas but the spread between oil and natural gas is still very wide near historic levels and so that gives us an advantage. and that is because we're in cost advantage positions canada, the united states,

argentina, the middle east, even in europe we have some flexibility to crack lpgs that are crackers in europe and that gives us an advantage over the typical european producer. >> now when i listen to that, when i think about the buy back and the dividend and what you just said and then i look at all of the stocks that younger people bought. and how much money they lost whether it be the big -- the warby parker and i say to myself, do they not know what this dow is up to. for instance, i'm reading a speech that you gave at sanford bernstein where year talking about building ethylene and derivatives cracker complex in four sass catch wan alberta. i would have told you that is a fairy tale. >> it is based on hydrogen and carbon capture technology and i'm proud of the team through covid what we did was we

developed a whole esg strategy to be net zero by 20 5050. >> but your a carbon company. >> we're going to take our scope from big production companies to zero and we're going to do it by doing something that is kind of unique to our industry it is take the by product off the cracker and convert it to hydrogen and strip the co2 out and fuel the cracker with hydrogen and we will be -- >> that is a circular -- >> it is a circular system so what we'll do is we'll have higher costs but in canada and the reason we decided to go to canada first is canada has a price on carbon. so i could recover the higher cost to strip out the c 02 with the price on carbon and government is offering some incentives for new technologies to decarbonize. >> but doesn't industrials fight cashon pricing. >> they fought carbon tax and there is a difference.

>> explain that. >> a carbon tax is a cost that i end up passing on to the consumer and it is inflationary. a price on carbon creates a market mechanism that allows me to recover that cost and that creates a return for an investor so in my view, if you really want to decarbonize, we want to pool, there is a trillion dollars of available capital and it wants to move into esg and if we create a policy around setting a cap on emissions and a price on carbon, then you could attract people into the market the industry and the technology is available today to be able to make the hydrogen from these by products. >> the question i have is we have a country with a president that is very esg concerned why isn't this done in the united states? why can't you and the white house work hand in hand to get this done? >> they have done some very good things so through the infrastructure bill, they have addressed

creating eight hydrogen carbon capture hubs in the u.s. so my hope is that as we prove this out in canada, that as soon as we've done it, we could come to the u.s. and do the investments here but we do need to get carbon capture infrastructure in. so the other thing that canada has is existing carbon capture infrastructure which we could tap into and that means that we could move quickly to do that project. right now we need to build that capability in the u.s. and eight carbon capture hubs, we've looked at this through the american chemistry counsel and they would cover about 85% of the petrochemical production in the u.s. >> well do you find it odd that is what we talk about now, versus a few years ago when we talk about poly ethylene pricing. you didn't get into the business to do this but you've been magnificent. you've been the industry leader. >> i think it is more an opportunity. it is a challenge for sure from a climate standpoint. but i think it is a huge opportunity for growth

think about it this way. if you could take plastics which is already the lowest carbon footprint material, and you could take its carbon footprint to zero and then you could address the recycling issues and the waste issues. >> which i know you have, that is another show. >> you've taken the most sustainable material and said hands down best product. today over 400 brand owners have targeted for post consumer recycle material in their content. they've created a demand poll for that material and we're seeing premiums in the market for that so there are going to be decent return projects here they need a little support they need a policy change around this price on carbon and i think it needs to be a market price and if you let me, the market price is important europe has a system that creates a market price on carbon, canada has one and china is developing one. if we develop one and we have a market related price on carbon, it is more logical that those global prices would harmonize

and create a level playing field and you don't have to have something like a border adjustment mechanism or a tax to drive the change you have a market incentive to drive the change. >> the reason we're moving into this is because a lot of people don't want to buy a stock that makes a lot of money they want to buy a stock that does good by a company that does good and then makes a lot of money and i need you to know that about dow this is not the same old dow this is a company that cares and it making a lost money we covered that and then went into things i know many of you care far more about than dividends and buybacks chairman and ceo of dow, thank you so much for coming on the show. >> great to be here. >> "mad money" is back after the break. >> coming up, inflation is running as fast as a deere could this ago row play have answers. cramer has answered, next.

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every ernst season is confusing in its own way wall street is always making premature judgments and then throwing them back a few days later. as i said, at the top, it is difficult to be right. just look at what happened to deere. back on the morning of may 20th when the market was still really uggy deer reported a mixed quarter and then the stock plummeted 14% in a single session. i mean, this is great american company. of course it was a terrible week to report. this one hurt for me because i told you to buy deere all year liked it even more when russia ip invaded ukraine because it created a market in all things agriculture. ukraine is hard to farm in a war zone so we have global crop shortages. bad news for regular people but

good news to companies that are part of the food chain outside of eastern europe. even though there were construction and forestry, i thought they would be able to tell a good enough story to send the stock higher not lower instead the stock collapsed. but a funny thing happened while we were on vacation last week. deere stock caught on fire it was a good week it rallied for five straight days finishing last week at $360 and change and then only a few bucks before the quarter nearly the whole meltdown was erated within one week so tonight we're looking at what happened because it is important to figure out where it reacted so negative and why it rebounded just as hard once wall street as more upbeat and why i think it could go much higher i think it is an important bell

weather. the crazy action, like the action in private this morning, could tell you a lot about the temperament of this market and how it is changed. first of all, let me give you some background. like i said before, i recommend deere at the very beginning of the year because this is a text book company that makes real stuff and sells it at a profit, reasonable valuation in january and february, they were higher and when russia invaded ukraine, it broke out to all-time highs but as the fed started about the need for 50 basis point double rate hikes, deere stock took a beating. while they get 75% of the business from agriculture, the rest is construction and forestry which could take a real hit if we go into a recession. and it is a bad enough hit that it could hurt and inform the price of the stock still deere was able to defy through november through mid-april. and even any the stock is still up more than 5% for the year not at the top but a very interesting level

let's explore why i think that what happened with the earnings report two weeks ago that caused it to implode. first off, the headline numbers were actually good deere did report a meaningful top and bottom line beat, 20% earnings growth and that is great. but when you drill down at and look at revenues, all three were weaker than expected a one-gain sand a investment remeasurement with hitachi that is confusing for people and while it was impressive, because deere bought back $1.23 billion worth of stock during the quarter. so fewer shares equals more earnings per share the bye backs were returning capital to shareholders but when you get a quarter on the fence, the bears love to cry financial engineering and that is what people are saying. when you put the earnings her share aside and look at operating profit, it was up 9%

year over year and which means deer is facing some margin erosion as its cost grew faster than sales like everybody else they have an inflation problem but that is hard to imagine that as a surprise for anyone not living under a rock but the real reason was the guidance, for the whole company, they give you two line items and net income and cash from operations and they only give you those forecasts for the full year while management raised the forecast, a lot of has to do with the hitachi remeasurement and nobody likes that. and at the same time deer lowered the full year cash flow from operations pretty substantially. everybody hates that as they need more working capital throughout the year. so underneath was a lot of stuff that people didn't like at all how about the deere revenue. they raise the the operating margin forecast for construction and forestry business. all told, this was an okay if

unspectacular quarter. why did it fall 14% in response. well look at the analysts reaction we saw tons of firms provide mostly positive commentary even as they cut their price targets from the mid to high 40s 400s to the low 400s this is something that we keep seeing we see it constantly after a meltdown the price targets are too high because everything has come down but they like to have a news peg like an earnings report. regardless whether the earnings are good or bad and that is how deer got in the cross-hairs. overall things got very high for deer because everybody knows about the crop shortage so when they reported a fine quarter, the bulls were hoping for a blowout. they didn't get it and they dump the stock. what turned things around last week and first obviously when they reported two weeks ago the market was horrible. last week we had the best rally of 2020. it was natural for the stock to get some love. second, deer had an analyst day

last thursday and it cleared things up. while there weren't any major announcements, management spoke in dep nl about the vision for the future, also giving a detailed look at a lot of cool technology and in short deere compelling long-term story stressed that the current supply chain are short-term in nature maybe you asterisk them. third, maybe most important, people circle back and reassess thequarter for example, the company's director of corporate economics can tie a bar, gave a bullish outlook for large agriculture equipment sales and farmers are flush going into 2023 and they need 2new machinery. and listen to this, order books for the remainder of the occurrence fiscal year are mostly full and wee see signs of strong demand for model year '23 equipment and deere could ramp production in the second half.

they didn't tell the story the right way. that is so much -- there is so much good here that i'm stunned deere stock was down at all. but they had a bad presentation problem when people ran from it. bottom line, deer is doing just fine they should come on the show because you could get this stock for just 15.5 times earnings which i think is absurd. so you got my blessing to buy it tomorrow morning joe in new york. >> jim, what is going on >> not much, how about it you? >> i see you living in my backyard now here in long island >> yeah. absolutely i got the tomatoes planted and the irrigation system in don't worry. everything is going to come out good but little shaky about the artichokes go ahead they're hard to grow. >> listen, i decided to follow your mantra about buying stocks which did things as opposed to maybe doing things. >> yes >> i invested in cummings

engines, about three to four months ago and i just noticed that tmercedes entered into a contract with them for energy play do you think it is a worthwhile to increase my -- my investment in this particular corporate >> okay, cummings is a great american industrial company whose stock has come down to where it yields 2.74% and it is 12 times earnings which frankly i'm going to say is it ridiculous this is not some fly by night software as a service company for the -- i don't know, sassage industry this is a real company making real things, paying real money and great technology i want them to come on the show and i want to you own it let's go to stewart in my home state of new jersey. >> booyah, jim how are you doing? >> i'm doing all right how are you? >> i'm doing good. my question is on live net stock thm.

my question is goldman sachs recently down -- has been talking about the price of lithium going down, they said 10% this year. >> right. >> and then falling another 72% to 16,000 a ton by the end of 2023 so my question for you, is i bought it recently and the question is do you think i should hold or take my lickings and get out, i. >> i read that gold goldman piece and i said he's a smart fella. the stocks have had a big run. i'm going to agree with goldman, they've gone too far and i'll tell you who else thinks that. elon musk and i don't want to be on the wrong side of that guy. earnings season could be confusing. deere reports and everybody gets confused and it was situation a buying opportunity but you got my blessing tomorrow morning to get some. now we have much more "mad money" including my exclusive with a company that you might not know it is called accelerate energy could new the new lng

infrastructure stock put some profits in your portfolio. i'm talking to ceo's and then has the facts changed for home builders. i'm drigging into a controversial group. and tonight edition of "the lightning round. so stay with cramer. your shipping manager left to “find themself.” leaving you lost. 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 (vo) everyone knows to get wireless savings, you need to be on a family pla- ...oh... matching your job description. (jane) with visible, i get unlimited data for as low as $25 a month. no family needed. (vo) i guess i spoke too soon. visible. single-line, unlimited data as low as $25 a month.

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even foe the ipo market has spent the last five months in a coma we still get the occasion that some are good. now you have to be pretty confident to take your business public in this environment on april 1 i recommended accelerate energy, the liquified natural gas infrastructure company that is the third largest ipo of 2022. i'm a big believer and anything

that facilitated it. and they have real sales and real earnings because the market is so hostile, i think you're getting a good deal. and sure enough, they have rallied from 2420 to 29 and change that is a 21% gain s&p is down 2% so tonight we're going back to the well to take a closer look with steven cobble, the president of accelerate energy who happened to ring the opening bell this morning, to get a firsthand read welcome to "mad money." >> thanks, jim. >> please have a seat. if i had to design a company right for this environment, i would pick a company that would bring lng from where it is, natural gas from where it is to where it is most needed, particularly a aggressive company like the russians. that is accelerate energy. i mean, you're in the cat bird seat, sir. >> jim, thanks for that. we are excited about where we've grown this company over the past

19 years and there is a lot more awareness of energy security right now. guarantee it. >> but what i node to know it, you have things called -- and this is the first time own, floating storage and re-gasification and he call them f fsru, and tell people what you have and could you get a lot more. >> they're big they're like 950 feet long specialized ships that serve as floating import terminals. so we use them all over the globe to help people who don't have lng to get access to lng and we are busy deploying them and that would be looking to increase our presence. >> so we may have 100 years worth of natural gas in our country. blessed with it. how does accelerate energy play

a role in giving it to countries that don't have a lot. >> the difficult is you need specialized infrastructure >> right. >> your viewers know lng is super chill, minus 159 celsius, super cold, somebody has to warm it up and send it into the system as high pressure natural gas and that is what we do but in the past, everyone needs a billion, billion and a half land based lease to do it. and this is cheaper and faster. >> okay. so if i am a country in europe that is getting natural gas from gas, it is possible that some way i could get accelerate energy to make it so i might be able to not be hostage to the russians. >> we're glad that we provided alternatives in helsinki we signed a deal with finland to provide natural lng into finland and astonia, the next day gas prom cut off finland of their supplies of

natural gas. but, look, that fsru could provide 5 billion cubic meters a year. >> that is a lot. >> that is more than those two countries need. >> that is incredible. now you are bangladesh, brazil, italy, israel, turkey, all of these countries? >> we've delivered into those countries. we've opened up markets all over the world. bangladesh is a great example. they were getting into lang and now 20 25% of are across our fsrus. >> so how many more ships do you need is each ship profitable and you could be a facilitator of us to them so to speak. >> it is the critical enabler for energy security for -- let's not forget the energy transition too, jim because it is important for both backstopping renewables, we're aware of that. it is also important for giving energy security to countries

like finland and astonia and yes, it is critically important and people understand it >> has the president called you in to talk about this? >> we've been supportive of the u.s.e.u. task. >> that is great because the white house called you. because we think you know more than -- >> there has been interaction and our team has been supportive of the efforts. >> you might be one of the most companies ever -- >> it is interesting, we do have an outsides importance in this country. we've been successful in the emerging marks you've talked about for years and it is because we're just this critical lynch pin for a country's energy reliability and energy security. >> and people say how much money could you make doing this if you only have 10 ships you need many more you could make money getting a new one? >> would you say that

redeployment risk and deployment of these new asset class, if you've got this track record, if you've built this world class reputation, it should be something that we could achieve. >> well i got to tell you, i think that for people who want to recognize the perils of the get it to other places, well this fellow, has so much information that you could read about, you could learn about this and if it is right for you, i think you should buy it. "mad money" is back after the break. >> stick around. "the lightning round" is coming up next.

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>> it is time. it is time for "the lightning round. and then "the lightning round" is over. are you ready skee daddy steve in jordan? >> yes, i have aerospace rocket labs, usa >> i see your aerospace and i gave you raytheon which makes money and does good things and returns capital. we have to step up our game. ron in wisconsin >> jim, booyah booyah from kenosha. >> i love kenosha. give me something to work with. >> [ inaudible ]. >> huh >> jobby. >> we have flies cars, do you think it is time for buying cars >> sell, sell, sell, sell, sell. >> i got stuck on that let's go to allen in nevada.

>> hi, jim, second time caller now a member of the club and i also had your meeting today and it was awesome. >> thank you, so much, man my friend said the same thing. thank you, what is going on. >> tell me what you think about of the allegiant travel company, the budget airline. >> i would rather be in ex pedia or airbnb. i need to go to joe in ohio. >> jim, how are you doing? >> i'm having a good time. how about you. we have the conference call today at 12:00, it was great what is going on >> hey, what do you think about the -- that was up $100 a share. >> here is what i'm doing. we have to avoid the companies that are losing money. and then we have the special category of companies that are just too expensive trade this good company but it is too expensive for this take. just the way it is i need to go to peter in connecticut. >> hi, how are you >> i'm doing okay.

how about you? >> i'm great i love listening to you every morning. >> thank you >> and david. >> they're funny guys. >> they are. they are >> thank you that means a lot because it is a tough show to do it doesn't look like it, but it is really, really hard so what is up? >> so i have a small position in cosmo energy and i have a little bit more money that i would like to invest and i'm wonder if that is a good -- >> let it come down a little the oil stocks should be under some pressure here because people are seeing that they move too much versus owning technology that is just going to be one of thoserotational things that will come back to it darrell in tennessee, darrell? >> hey, jim, darrell flowers calling from nashville glad to hear you got your garden put in. >> it is looking pretty good what is up >> a quick shout out to sorrow -- my 1 day old grandson born in japan. >> and i'll see you that and give you a birthday shout out to

regina's mom see you and raise you. let's go to work what is up. >> speaking of a little upstart. anything in the last earnings announcement to make you think. >> i didn't like the loans on the balance sheet. if they make me convinced that their all good, then all is forgiven and i'm cool with it. mike in florida. mike >> how are you doing, jim? >> i'm doing good. i have a good dinner last night. how are you? >> i'm okay for right now. i'm just trying to figure out if is hertz worth buying it. >> yeah, because steve sher is the real deal. he's one of the toughest guys that i've ever dealt with. let's go to nick in new york. >> booyah. >> booyah. >> i just wanted to ask you about -- semiconductor they've had consistent beats quarter after quarter.

>> but they should be making a lot of money look, they just should be making a lot of money and they're stocks are still real cheap too, and that ladies and gentlemen, is the conclusion of "the lightning round. >> "the lightning round" is sponsored by td ameritrade. >> coming up, home is where the profits are. as uncertainty swirls, cramer zeros in on the home builders, next thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever.

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let me play devil's advocate for a moment the hedge fund playbook said you could never buy the stock of a home builder at the beginning of a fed tightening cycle like we're at now. why? because we know mortgage rates are headed higher and that means endless earnings forecast cuts for the home builders will will break your heart, not to mention your bank account. you're also never supposed to say this time will be different. because according to the playbook, that's are the five most expensive words in the english language, when you're a veteran, you know not to be enticed by lennar which is sold at 5 times earnings and by the time they finish butchering the

economy, the estimates will have come down so much that you'll probably be paying 20 times earnings for the home builders because the earnings have dropped so much, even if the stocks stay in the same place. this is supposed to happen every single time. and look i'm old enough that i hesitate to go against the playbook we don't own any for the charitable trust so we're playing devil's advocate what if this time it is different and the home builders are different and viable here. it is not as crazy as it sounds. humor me work from home turned out to be the real deal. unless you work for tesla. people are coming back it is a shame but it happened. i don't like it. but a lot of people do second, this work from home ethos took hold so fast that home builders can't keep up. that led to nasty consequences including homes that are too expensive for many people to afford i don't like that. but rents have climbed even more so buying is worth it if you

could afford it. and a new home doesn't dedepreciation in value. why is that? because we're supply constrained. they can't put them up fast enough and they want to put them up in a lot of place and the buyers are serious that iing $900,000 for a toll brother's house. you heard me people are paying 30% cash and and many homes are subject to these kind of strange bidding wars called best and final that is right. multiple buyers for new homes. given the need to create an office and the toll brothers house, they could do that for you. first time in years that there is a new baby boom, thanks to covid and a flush bank account about by many buyers and interest rates may not change that do we think that higher interest rates will not shake out any buyers no they'll cut down on some demand. but could the demand be cut in

half that is what the stocks are saying three quarters, some are saying that there is a glut of homes when so many are going best right now. think the home building stocks are placing in the same old same old, a fed mandated slowdown and anything but typical the rise of remote work has changed everything, that is why toll brothers has been such a veracious buyer of their own stock. and they see the demographic and it is easy to stick a home office in the new housing and it is keeper than renting or buying an old house and renovate. doug yearly knows that that is why he thinks his own stock has such great value and you know what, agree. so here is what i think happens. i believe they will drop again and when they do, and that might be on a statement for the fed seeing still seeing signs offin flo -- of inflation, and you have to pounce. maybe get some downgrades but when they come i'm going out on a limb right here and i'm going to say, it is time that is right

to buy the home builders gutsy. absolutely the source of demand hasn't changed but not so with work from home. the facts are changed and you have to change your mind with them i like to say there is always a bull market somewhere and i promise to find it just for you right here on "mad money." i'm jim cramer see yoyou u tomorrow, president biden set to address the nation as america suffers another mass shooting. i'm kelly evans in for shepard smith. this is "the news" on cnbc. >> a prime time speech on guns in america the president set to pressure a divided congress to act. >> we must summon the courage to do what is right, the courage to protect our kids. >> these laws do nothing to stop crime and no one here thinks they will actually stop mass shootings. reports from the white house and capitol hill. mass shooting inside a tulsa