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tv   Mad Money  CNBC  December 23, 2022 6:00pm-7:00pm EST

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action." great to be with you back next friday at 5:30 p.m. eastern. "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's always a bull market somewhere and i promise to help you find it. the "mad money" starts now hey, i'm cramer. will come to cramerica my job is not just to education
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tonight on the last show of an amazingly bad stockfáxd■market . dow gaining 176[6 how about that, huh? s&p rising lp.95%ñi■and nasdaqñ■ inching ■ let's find the listuj■u■of stoco i'm talking about. stocks that got killedx=■t■ limited discussionayr■ companies valued at $750 billion at some point in the last 18 months getçó■a load of these peake■ç■p trough situations. okay?t tesla. with that it's fallen 70% fromñ■ the peakq
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losing $846 billion in market■h■ capitalization and then there is meta facebook itlú.■mbled more than 69%$770 x. ■■5n somk alphabet dpyúk ñ■çi billion and microsoft down #■32, which is $772 billionr dropped 28% a lot of money but better than the others that is thefá total. this, righti]qhere,cu■s■is the l of $5.4 d■
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these at higher levels.x■ why?m■f■ because they have rules. theyú portion of the fund and portion of the fund and discipline says youorñ must trim this is where the most damage was done and wouldn't be q■rprised if they causeñi■8 prom for nextf■ year. u. together because there are fund !fá■1■ problems ç■e■here if you're like my charitable for a long]■c9 in thatçó■case you might not ha losses but you certainly missed the chance to sell your entire position at mm r■we did your gains are smaller than the■ could have been. that'sw■ why i always tell you j+ . not buy and hold like it's saidk why? buy and hold totally failed you heree■ with the possible exceptn ofñ■x■ apple which fell/s a lotless than oths and by thei■ ware, iconnect 1200
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added up to 34% of the s&p 500 all sorts of efts create yad to capture segments of tech
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they were bogusly diversified. fourth, the federal reserve played a role, not a good one to argue they were doing their job and on the way up, the fed propped up tech and the stocks d8got crushed. it's still happening not going away but feels disingenuous to blame the fed. jay powell never told you to buy meta or tesla and never told you get out of nvidia and not his job. at the same time wall street stoked the fire with buy ratings and price target bumps and tore up spacs to really make you lose money and to be fair the industry is like this. they like hot merchandise. the companies themselves turned out to be unworthy of their amazon can only grow $1.8 trillion valuation at the peak because the numbers were inflated by covid and still haven't got rid of the bloat was awful. meta got way too high on
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advertising. made it harder to track online behavior on their devices making targeted adsless valu■ble. it doesn't help they're seeking billions without showing much in the way of results when mark zuckerberg announced other cost cuts, he refused to touch that metaverse spending they have to figure out a way to get people to post more too. tesla's printing money land has no competition but that's no longer the case and nvidia had the best semi conductors in the world. china, you couldn't have sop of the best it strengthened the infrpáu)ucture business both of which are slowing. apple couldn't make enough product to meet demand and it's a high qua&■ty problem, problem nonetheless. they love their products so many people own an iphone,
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everybody uses google, what could be cooler than owning tesla? that's really a good reason to own anything it's a good reason to start, to look at something. now, if we see the stocks here, you know what? let's remember that prices do mattq) and we don't want to get burned the next time they go too high and pull that act right now, we want cheap stocks with companies that make things■ or do stuff at a profit and return to shareholders unfortunately, most of the big tech companies don't fit the bill but here is the bottom line because tesla and meta, nvidia, amazon, outfit, amazon and apple are components of the s&p 500 and will be able to bounce the next time we get a good really i think we'll have one use that chance to pair back, not get rid but pair back. i bet you'll get a chance to buv them a little lower. i want to take calls i want to■go to jim in virginia,
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jim? >> c >> caller: shivering boo-yah, jim, howre you doing >> doing well. how about you, jim, what's going on >> caller: hey, brother, i got my thermals on today, no doubt. >> hey. >> caller: to fund my ira i have the name brands and also purchased stock gnrc at 230. >> correct. now i'm feeling about as cold ÷■ about it as it is outside. >> jim, what's happening is there is a new sheriff in town the ford f-150 can power your house in an outage like the generac. if i got that truck, the best selling truck in america, i don't need a generac i feel the same way. that's why i'm thinking of getting one myself parker in marymaryland,arker. >> caller: shoutout to my close.
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want to know about paypal. >> paypal has a lot of competition. we lost a lot of money in paypal in the charitable trust and believe it or not, we sold at a much, much $igher level. i can't recommend to buy it because there is too much competition. the mega tech stocks will be able to bounce next time we get a broader index rally a'd i think you might want to use that to pair back on your position. i'd like if you really want to, get a chance to buy them lower on "mad money" tonight, the second best performer in 2022 so what is going to happen in 2023? i'll give you my take. santa claus rallied or not, does your portfolio have what it takes? we're playing am i diversified and the communication services sector, oh, man is that struggling i'm setting you up for next year with two big r"■as i think you should be watching so stay with cramer.
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>> announcer: don't miss a second of h"mad money." follow @jimcramer on twitter have a question, tweet cramer #madtweets send jim an email to madmoney@cnbc.com or call us at 800-743-cnbc miss something head to madmoney.cnbc.com.
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we are so close to 2023, we can all most taste it but if you want to prepare yourself for the new year, you know a thorough understanding what happened in this one that's why we spent the past couple weeks going through every sector highlighting the best performers and favorites that didn't make the cut.
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this is a difficult year for stocks but plenty of winners if you knew where to look and i show you at this point, we've been through nearly every sector in the s&p 500 with two kpeexceptis the consumer discretionary stocks down 37% and wow, here is a real stinking group, the communication services stocks another word for technology. they're down 39% more than that later we're looking at the consumer discretionary space if you want to know why it's been doing so poorly, the answer is i' the name discretionary. they're selling stuff you might want but don't need. you can say i'll pass. that's definitely what --that' exactly what people stop buying when the fed rapidly raises interest rates and wehead into a slow"■wn, they're definitely scared and a severe recession so many money managers are expecting and the individuals themselves are frightened to spend a lot of money of course, some consumer
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discretionary stocks, discount retailers, restaurants, casinos but most of the space is just awful and any expensive quick serve restaurant is crushed. even though there is a travel boom, there is an online advertising bust the cruise lines have been taking on the lows interest and huge runs in anticipation of the opening. most apparel stocks have done very poorly. one of my favorites has been in such bad shape, stocks announced a new ceo. the thing about the consumer discretionary sectors is it's not really a sector. it's a grab bag. home builders and down big, they're better than the average for the group and anything else related to home goods or strong housing market has dopne a lot worse. we try to figure out where is the auto industry belong
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here okay other than auto retailers that sell more product, these stocks are obliterated, gm and ford thank heavens we sold higher maybe the biggest story here is the huge declines in a couple of the largest consumer discretionary plays, amazon down 49%. tesla off 65%. that represents hundreds of billions of dollars in wealth construction still consumer discretionary stocks were up and there is a lot to learn from them and we'll have a good year nexá■year so let's start with the auto parts best performer genuine parts up 26% and o'reilly coming in third place and auto zone in fourth. genuine parts as a distributor and a lot of people feel that should be broken up. i feel it's fine
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simple reason. they had a car shortage. the price of used cars was very because there weren't enough to go around and when you can't get a car new or used, you're more likely to fix up the old one using parts from genuine o'reilly or auto zone. used car prices are coming down and coming down precipitously and new car prices will fall, d8that's because we're headed f a fed mandated slowdown and the consumer hasless spending power so once again, the more likely to fix up the old car than buy a new one so it's a win, win, best of all, none of these auto part stocks are anywhere near expensive. i think i happen to like azo, auto zone the best because it's a great operative with the cheapest stock in the group and awesome non-stop buyback next up the second strongest consumer discretionary stock this year was up 24% took me by surprise.
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vegas is booming but lvs sold off in february. now they're exclusively focused on asia with several properties in singapore and mccal because of china's covid policy. however, las vegas came roaring back once we realized china was ready to start opening up. that said, if you want a casino stock, go with something with less -- real exposure to vegas, not just china nguyen resorts which we own for the charitable trust or vici properties i talked about them on wednesday that i liked so much owns casino real estate and a good yield after the auto part stocks in las ulta beauty up 10, 11% remember, we just spoke with the ceo earlier this month a few days after ulta reported
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another strong quarter with 15, 1-5 same store sales growth, the best i've seen and a huge earnings beat. kimble is not seeing the slowdown but a huge boost in cosmetics as people go out but the rest of the business is great, too every single one of the categories grew by double digits in the most recent quarter and ulta is cheap selling for 19 times earnings eastimates if you have a big gain, i won't tell you to be greedy. beyond the top performers, i'm feeling very good about tjx, yum brands and starbucks tjx is the parar parent of tjma, marshalls and home goods when you need plates for thanksgiving, it's my place. we own them for the charitable trust because tjx is a vulture struggling retailers need to
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unload old merchandise before they can bring in new stuff. they bought a lot of excess inventory and i bet we see more after the holidays because some retailers might not make it. because tjx prices are low, it's a winner every time consumers trade down during a recession. yum brands, parent of kfc, taco bell and pizza hut is great proposition and have plans for tremendous growth management to expand from 54,000 worldwide locations to 100,000 over time i believe it they came on i was blown away by the projections doing really well. kfc. don't forget about starbucks their most recent quarter was superb and got impressive long term growth targets and been held back for ages from the lockdown of china and a huge chinese business and the communist party dropped to zero covid policy and starbucks can make a powerful comeback they figured out here how to do cold brew, which is more
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important than hot brew. here is the bottom line. while most consumer discretionary stocks are horrendous this year, we had pools of strength, too, and many of them can work in 2023 especially write these down, auto parts, ulta beauty, tjx, yum brands and stars bucks "mad money" is back after the break. coming up, survive the unknowns thrive in any market cramer invites you to the game of games play am i diversified next
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do you want to know what i asked san sta ta asked san st for this year
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i want to play am i diversified? i'll tell you if your portfolio is diversified enough make changes let's get started with a tweet we're going to jared on twitter that says @"mad money" at @cnbcm five companies are airbnb, mp materials, tesla, amazon andç■mç cotara energy. let's take a hard look at this some of these are members of my charitable trust cotara is a natural gas and oil company down at 25 pays good yield. amazon is still the finest they need to fire 100,000 people i'm not kidding sadly. tesla very expensive stock and i would tell you that it's down so much that i wouldn't mind you owning it and pm materials makes the lithium you need, it makes materials rare earth materials that you need to make cars like
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tesla go and airbnb, talk loving about it we got a hotel, auto company, retailer, oil and gas play, we have a rare materials play that's what i call diversify let's go next to -- maybe this is will. i don't know let's now go to surfer on street, he's a big surfer on twitter who says @"mad mon money" @cnbc @jimcramer. costco, i say that because people say you say costco and sounds philadelphia so costco, chubb, wells fargo, flex l and g, farpharma from japan can we beat this let's go to work costco is the finest retailer in the land chubb is the best insurer in the world and wells fargo giant position under valued and pharma
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came public with terrific streams of revenue not being treated well enough and flex lmg, that is the one i like for -- well, it's lng natural gas. let's get natural gas, drug royalty, bank, insurance and retail i mean, look, the guy obviously knows the stuff. you can tell here, right i like what he has to say. next up we have a video and it happens to be from tom in florida, tom >> caller: hi, jim my name is tom i want to thank you and your team for taking my call. my top five holdings are ford, delta, caterpillar, devon energy,diversified >> bills fan important to notice. they lost five times ford is my auto maker.
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i make no bones about that delta is the best eroline. caterpillar the best earth mover, devon which we had on -- we had them on when our charitable trust had our meeting for the investor club, best oil company and plug, no too speculative. not doing it if you want hydro power, we're doing lin, which is linde. so we'll have natural -- we'll have chemical, we'll have oil, we'll have earth mover, we have airline and auto and that is going to be as far as i'm concerned perfect. next up, let's go to patricia who is local in new york patricia >> hello, jim cramer and boo-yah to you this is patricia branch calling you. i'm a long-time listener and fan of the "mad money" show. today i have five stocks in my portfolio and i'd like to know am i diversified
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nck, goo gl, also, uber as well and gnrc and also, cvx. thank you and take care, jim and have a boo-yah merry christmas. >> merry christmas right back at you. she's got a portfolio here this is a drug distributor that makes a fortune. google is one of my favorites. chevron is a terrific oil company. generac we're not fans of because the ford f-150 does the job of it. then with uber which is obviously the transportation, auto, that's right, i'm making
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that switch. oil and gas, information and drug middle person i want to thank for a terrific, terrific conreceiver conversation as far as i'm concerned because this was recorded ahead of time i don't know if you know that. we have leslie williams from my daughter's home state of oregon c >> caller: my five biggest long mat term holdings are bank of america, amazon, apple, ford and sun power. jim, am i diversified? >> really interesting sun power very, very good. i would do and swap out of some go to end phase and apple and ford motor a lot of people like it and amazon which is a great retailer they do have amazon web services
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the real driver. retail bank auto, we have a solar company and as far as i'm concerned, once again, is there anyone smarter than -- i challenge you to find anyone smarter than our viewers. "mad money" is back after a very merry christmas break. >> announcer: coming up, santa can wait time to communicate. cramer deals into the best come stocks of the year, next that's what makes it special. go get 'em tiger. ugh, this rental car is so boring to drive. let's be honest. the rent-a-car industry is the definition of boring. and the reason can be found in the name itself. rent - a - car? you don't want a friend. you want the friend. you don't want a job. you want the job. the is always over a. that's why we don't offer a car. we offer the car. ( ♪♪ )
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we spent the last couple weeks going through every sector of the s&p 500 shining a light on the best performing stocks
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along with personal favorites. important to know where we're coming from. most of the things that made 2022 so brutal and will continue at the beginning of 2023 are let's just say knot innot inter but we have to know about. the winners can point the way to next year's winners or tell us where to look. at this point, we've been through ten of the 11 sectors according to the so-called global industry classification standard that's what everybody on wall street uses and did it in descending order which means the last ones are the worst. right here right now. the communications services sector earlier we went over consumer discretionary stocks but communication services down nearly 39% before we can break this group down, what the heck even are communication services this used to be called the telecommunications sector but changed it to communication services in order to include any content that gets delivered over a givennetwork classic telecom companies, media
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entertainment, large internet companies, needless to say many have done terribly and these are out supported companies and the ad market has fallen apart this year the cable provider needs to deal with cord cutting that happens every day and entertain ment group is three major publishers dealing with a post covid hangover, zoom or peloton and netflix and disney, both of which have been humbled this year live nation, ticket master is at war with taylor swift and her legion of fans, bad idea this can't be a lose opening stock. the networks include winners like t-mobile, that's a great one. some not so hot stocks like att and losers like verizon and lumon technologies and interactive media and services a
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group that can just have three stocks excuse me. alphabet, meta platforms and the dating platform power house that is match group we already talked about how big the meta debacle is. we don't need to go into them gun. match group is one of the worst performers god, these are so horrible is having a really tough time. sometimes i try not to look at the charts because it's bias to me but suspects ometimes they'r awful you have to notice for communication services 22 of these stocks, 17 of them are down double digits and only three of them are up for the year although one of those is a takeover instead of the top three, we'll focus on the top four. t-mobile, we have blizzard, at&t they are a best performer up 20% for the year doesn't surprise me in the least mike is doing a good job as ceo.
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for years t-mobile is the best performing wireless carrier. the low cost carrier ran circled around att and verizon and the ceo called them dumb and dumber but he never told us which was which. then back in 2020, t-mobile acquired sprint giving it the left it needed in 5g we had to sacrifice network quality for low prices these days they're still running circled around the rest of the industry and adding subscribers like crazy and using the 5g network to offer home internet although that's a small part of the business at the same time, t-mobile is targeting $5 billion in the deal which should fuel some tremendous earnings growth over the next couple years and hey, the stock sells for 20 times next year's earnings so it's pretty darn cheap considering the growth to hit the numbers and i believe they can in second place, we got a strange one, activist blizzard but this needs to be asterisks because it's a takeover story.
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microsoft is in the process of trying to buy this video game publisher assuming the ftc lets the deal go through. microsoft is paying $95 a share but look where the stock is. okay 76 because the guys, the people who try to do the deals to buy -- they short and buy the stock, but let's say the thing i'm most worried about about those guys, this deal will not get the blessing of the government i don't want to speculate but if the fcc succeeds in stopping this deal, let me tell you what will happen. it will go down and up again so depending upon what the fcc does and the courts do, i think you've got my blessing to buy a company that would actually be higher if it weren't for this deal third best communication stock is one that shocked me omicon group why were we blown away one of the two major global
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advertising and been crushed as companies spend less on marketing. that's time honored what they always do and at that time why the stock got killed in the first half of the year but kept reporting great numbers and the stock has come roaring back since july how is that possible simple it's not just an ad agency they do .r commerce and brand consulting and precision marketing that makes the business less boom and bust than it used to be. wall street expects them to have a down year in 2023, ut oh, only looking for a slight decline in earnings given at the stock trades at 12 times earnings with a 5.3% yield tempting i don't think the -- it may not be worth the risk. why? advertising business will get worse and worse as the year goes on if we don't get out of this fed tightening cycle in fourth place, att down less than 2% for the year not too long ago att was the down show. no, i should actually call it a clown show spinning off warner media for a big loss not too long after the
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acquisition than the dividend cut. thanks for nothing last quarter they delivered a better than expected quarter and adding as many wild subscribers at att and t-mobile. i don't hate -- here is how i'll describe it. i don't hate at&t as much as i used to. low bar. although if you want a wireless stock, you should go with t-mobile there are a couple communication services stocks i'm willing to stick my neck out. one is good and one is bad one is disney and /■:■netflix. disney is a disaster under the leadership of former ceo bob but now that bob ire is back, he was the ceo before and i think things can turn around i have faith disney still has some of the best franchising and i haven't destroyed them marvel, star wars, espn, these are hard to destroy and i think they have done their best to do so they just need a good ceo to change the narrative
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meanwhile, the stocks since march of 2020, stock has come down so much it's too cheap to ignore and we continue to buy for the charitable trust and still making me look stupid but i think the 2022 will be the year i will look smart i'm feeling better and better about netflix that's been steadily working higher. of course, down more than 50% but it's rebounded hard from the may lows what changed this netflix based came clean and admitted they were wrong to resist the ad supported model. they hated ads and told us they'd do a better job of balancing growth with profitability going forward and subscriber count started growing again and earnings look good bottom line, in an awful year for stocks, communication services was the worst in the s&p 500 which is saying something. most are plain out untouchable but you have my blessing to buy t-mobile and netflix is turning around and that's really about it
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"mad money" is back after the break. >> announcer: coming up, what's on your mind cramerica, give us a call, the lightening round is storming the nyse, next. with gold bond... you can age on your own terms. new retinol overnight means the smoothing benefits of retinol are now for your whole body. plus, fast-working crepe corrector
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>> announcer: lightening round is sponsored by td ameritrade. it is time, it is time for the lightening round buy, buy, buy, and play the sound and then the lightening round is over. are you ready, ski daddy let's start with mark in new york, mark
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>> caller: boo-yah. >> boo-yah, mark, what's going on >> caller: your thoughts on esp -- >> oh, man, i love it. we got so much money coming for infrastructure from the federal government it will drown i like it. ron in rhode island, ron >> caller: happy holidays, jim, from the smallest state in the union. >> that's okay got a lot of great people. one of my favorites. what's going on. >> caller: see it all the time on your show. >> why not >> caller: my question is on health care reality trust, hr. >> too dangerous i don't like the medical trust, i don't have that level of faith i used to have and then we have to stay away joe in new jersey, joe. >> caller: hey, hey, jim, happy holidays. >> same for you, merry christmas! >> caller: merry christmas transfer, what doe you think of it >> i never thought i'd say but kelsey is doing a good job.
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>> buy, buy, buy, buy! >> that's a lot of buys. three times three is nine i got younger helpers here let's go to -- he was talking about congressman, malinski? >> caller: jim, proud to be a club member. hey, apple had an ugly start. >> ugly start because i think at the beginning of the year i explained to people they weren't able to get enough product for christmas. i'm urging people to own it and trade it but accepting it's going lower before higher. david in iowa, david >> caller: how is it going, jimmy? >> couldn't be better. how about you? >> caller: good. i was thinking about buying a stock matv at 18 for retirement for my kids. they're about 20 years old what do you think? >> it's a profitable company it not very high but we're going to do this we're not going to opine and say fine we're going to do some homework and we're going to come back to
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you! that's our plan. nothing like it. let's go to fred in california, fred >> caller: hi, jim, first time caller, member of the club. >> thank you we're doing the club -- the club rocks. >> caller: i was wondering what your thoughts are on mosic >> fertilizer comes to ukraine, russia area and therefore, that's been kept back. i think the fertilizers work i'm not giving up on them. todd in my home statement of new jersey, todd >> caller: hi, happy holidays, jim, how are you m >> merry christmas, what's going on >> caller: asking your thoughts clbt what do you think? >> this is a company that has got -- it's got great digital data investigation but so -- i do not understand how the price earnings are so high here and next year low.
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i'm going to have to take a pass do too much more work on it. let's go to sheena in illinois, sheila >> caller: jim, this is sheila in chicago. >> okay. >> caller: i watch your morning and evening shows. thanks for all you do. >> thank you. >> caller: my question is about sofi financial. >> i think sewofi is going to be entity here. i genuinely believe it pull it out of the fire. i think it goes to five and change and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade coming up, happy holidays cramerica, naughty or nice, cramer shares a slay full of wisdom, next
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last year we lost bouncers there was a velvet rope you couldn't cross, some pedigree. some level of staying power and something saying you were more
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than just a name in 2021 it took down the barriers anyone was allowed to come public amount of money ost, it was so absurd it was hilhilarious, if weren't your money we have 160 companies that became public and the stock so low i'm not allowed to mention them on air. the big commonality among the american disasters is they were insanely speculative companies with enticing brands and not much else. many, many years ago, fabulous money manager named peter lynch wrote a book where he described how to invest in the stocks of companies you like you discover a company that made legs was made by sarah lee and make a judgment whether you should buy it. research backed then was hard to get. you had the annual report and maybe a broker these days, there are so many reports and articles that so much easier to figure out if something is worth owning that
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you have no excuse but just like back then, it's not enough to like the product hey, listen, i love tregar grills if you bought the stock for that reason, you would be obli obliterated. during covid a lot of people barbecued outside. it went from winning to money losing money and how this really compelling brand with no turn of profit any time soon unfortunately, georgetown gentleman is used to coming public as a branding opportunity so sweeping public in 2028 and under $9 not enough to pay for the super green goddess salad for $9.95.
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brought into the market by an act that made stocks come to life turning the process by investing into a supermario theme. if you went by the name of robinhood because why not? they wanted to imply you would be taking money from the rich and redistributing it to your self-. what a great concept turns out, you were redistributing your own money to whatever is on the other side of the trade as robinhood shot to 85 and back to under $1. >> the house of pain. >> and don't get me started with publicly traded crypto currency stocks coin base. on the day of the list, seeing the stock open to 3.81 sore to $4.29 and another stock at $35 where it's on incredibly shaky ground give you two-some. sometimes you want to buy what seems to be cool that people are talking about like war b parker glasses or shoes that have been
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named bird in them, the latter being too small to discuss but war b parker went from 54 to plu plunging to $13 and change you can buy a pair of glasses for 7 bucks. seven shares, sorry. remember when everybody wanted the next tesla the broker firms tried to give you lucid, and more. comes public at 78, jumps to 79 and now 19 lucid was one of the few descent spacs out there from $10.64 and now at six and change. quantom scape tried to revolutionize the battie teries sinks to five and change there are dozens upon dozens of the newly public similar stocks and with similar trajectories as i said 160 of them are just too
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small to talk about on air they are carbon copies of the junk that came public during the.com era. we figured it would never happen again. if you wait 20 years, people forget and we're all the poorer for it. i like to say there is always a bull market somewhere and i promise to finald it just for y on "mad money. i'm jim cramer see you next year. disguise their famous faces and go incognito to find undiscovered talent and make dreams come true. ♪ ♪ - i have a confession to make. - what? announcer: they're all about to change lives forever. - [sobbing] - my real name... - my real name... - my real name is... - ashley graham. [cheering] - deion sanders. - gabby douglas. [cheering] - i touched ashley graham's butt.

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