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tv   Mad Money  CNBC  May 8, 2023 6:00pm-7:00pm EDT

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final trade? >> he willel dorado gold >> one month treasuries, price ford panic >> dan >> i'm buying paypalate $-- paypal at $720 tom. >> 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. m mad money starts now >> hey, i'm cramer welcome to "mad money. people want to make friends, i'm trying to make a little money. my job is not to entertain but educate and teach you. call me. or tweet me. you hear about missing the forest through the trees about whutbut when you pick sto
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it's just as important not to miss the trees through the forest everything seems darn awful. we have all the top down analysts that see the debt ceiling fiasco they see the mini banking crisis as something that could be a true financial storm one that didn't exist a few months ago now we don't know when it will end. that's when all the bears tell me why the heck aren't we going down >> sesh sell, sell, sell. >> why hasn't the market cratered even on a day like today, dow dipped 56 points s&p 500 finished up .05% nasdaq u.8%. and we're filled with gloom and doom we can't figure out how the market keeps hanging in there with the troubling news that you and i know is what people talk about when the stock market comes up in conversation
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this weekend i went over the charts to figure out every chart, what the strategists might be missing i figured out why everybody is so darn confused the winning groups didn't make no sense they're not supposed to be up all at once. they're like oil and water, square peg, round hole that, type of thing. it's hard to make easy generalizations which makes this situation so darn perplexing don't worry. we're going to straighten it all out. you look wat what is working, it is a kconundrum. johnson controls rockwall automation. just jump out at you as stocks that can't be stopped. how the heck can the industrials be such terrific leaders after they raise rates by 500 basis points in 14 months? for most, for the most part, these companies are involved in aerospace or decarbonization or both aerospace is a cyclical
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industry, it is in the aerospace cycle. when aerospace can keep going for years and years. the current upcycle is the longest one in the history of the industry there is just so much pent up demand remember, there are only two large scale commercial aircraft manufacturers. boeing and air bus both of which have far more orders than they can handle. boeing had so many problems. i expect to hear about a huge boeing order from ryan air which have been critical of boeing but where else are they going to go when air bus has a longer wait if you're a supplier to boeing or air bus like general electric, your charts, wow they're just buy, buy, buy, buy. that means 52-week highs for all. then there is cummins he is taking the engine company out of the dark ages of diesel into the bright future of the hydrogen economy. okay i know
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cummins is working on hydrogen powered vehicles and the big ticket pieces of vehicles that make hydrogen. they just selected them as an dry hugh droe plant. that's not what we expect from an old school engine company but with a world where there tons of mutual funds think they're among the best rivals by eaton. i wish they would come on air. they have a business that can reduce the carbon print. i mean that is eaton i think the long term story of power management confuse the strategists. they keep working regardless of what the fed is doing. the industrials are supposed to be falling here. you can't pigeon hole the industrials anymore. you would in a predecar predecarbonization era who knew what that meant five, ten years ago?
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the second confusing seg sment housing. frankly, dr horton i could have put up dr horton, i should have put up. these are the strongest charts in the book. historically the stocks should be at their 52-week lows not highs. i felt like i was leading the chart back upside down when the fed raises rates aggressively, the stocks are supposed to get hammered when what gives? it's simple. there is a tremendous housing shortage in the country. people are heading to these by unprecedented numbers. meanwhile, the days when housing development can just appear, there may be a shortage between two and seven million homes. i know that is a wud variation that's not supposed to be what
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happened short term rates skyrocketed guess what here's an irony. long term rates, okay, they are coming down. so suddenly, we have this weird anomaly. they're raising rates. in part because of supply chain woes that have been solved they're not passing the savings on to the customers. the demand is so strong. they don't need to we have many industrials, the home builders. leadership groups you typically see during economic expansion, not leading up to a possible recession like the longer term bonds are saying must happen then you look at the other leaders. they don't fit the bill either hel health care okay, health care is running.
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the drug names are enfuego they're all enjoying new product cycles they would be going up under a strong or weak economy so they're not so ano, ma'am list versus the industrials. and then there is the emerging turn in medical devices putting abbott labs and med tronic, life sciences, striker. why medical devices? so many people defer kto nonurgent surgeries during the pandemic post covid stocks not economic cycle stocks of course there is another one that just so hard to understand. the travel lee isure stocks they're being crushed by higher rates. nope they're on fire. again, because of pent up demand big gains in dardon, chipotle,
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delta, marriott. they keep roaring. we're in a weird post pandemic moment where everybody feels long on money and short on time. these stocks which would everyone would be crushed if we were about to go in recession. instead, they're just like american airlines, just starting to turn up just like chipotle royal caribbean finally, they had another good day today the consumer package goods stocks are flying too. what you think should be happening when we go into recession. that's what we had before. campbell soup, general mills pepsi. prktor and gamble, colgate, they all look great right now of course you have twonder how much of the strength comes from the earnings boost they get as their costs come down while the prices stay the same yes. they boosted prices when
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commodity stocks went up but they are not cutting prices. commodities are am coming down that's a huge part of their surge. finally, there is tech confusing everyone it's actually big cap tech really nvidia, microsoft and apple. how is this possible after 500 basis points of rate hikes technology always gets crushed here these are usually the first to fold but now they've got some special things going for them. they have things like artificial intelligence nothing the fed does will stop the growth of ai for nvidia, for microsoft, for apple the no way not when we have meta, meta is deep in the ai world that is a lot of what is going on with instagram, why they're doing so well. the companies could double interest rates and i'm not sure they would stop. individually can you make the case for any of the groups
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collectively, they don't make any sense. industrials, health care, package goods, housing, it's insanity for a top down strategist it all makes perfect sense if you're focused on individual stock picking. bottom line, you just heard why i think the vast bulk of bearish stocks will be wrong this year they refuse to get into the weeds of the individual companies where everything counts they're stuck tow top looking down the answers can only be found at the bottom looking up. that's the only way anything in this market makes sense. let's go to jerry in new jersey jerry? >> thank you for taking my call, jim. >> of course >> i'm a loyal fan i love your show i can't thank you enough for the on going insight to provide investors. >> thank you thank you, jerry i appreciate that. >> my pleasure here's my question over the past 12 months nuel brand is falling 50% in value.
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management succeeded in maintaining the dividend my question is twofold first, newell, do you think that the dividend is sustainable? secondly, do you think the stock is a buy, hold or sell >> okay. it's great question. stock is down 22%. i do question dividend i question the cash flow i look at ollie's, by the way. boy, there isn't a week when they're not for sale really, really for sale. i am very concerned about nuell. i -- newell i don't know if they have the staying power to keep the dividend there is an unconventional group of industries working to keep the market afloat. and it's a recipe for success. all the stock people out there as confused confounds the strategists. i'm talking with the ceo of
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striker. and then we'll run through the stocks you loved the ones can yoyou can own a pif we'll see if any can hit it out of the park. is it time to turn to a steady eddie like exelon? i'm getting the latest from the company's top brass. so stay with cramer. (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once and get closer to iconic landmarks,
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the medical device industry is back in a big way at this point we heard tremendous things from a most of medical technology companies all of which say that people are finally coming back to the hospital for elective procedures in droves. consider the case of striker they make orthopedic implants, hip and knee replacements and surgical equipment, neurotechnology for head and spine injuries last monday night striker reported one of the best quarters of the hot new season much better than expected growth wall street is only looking for 9. that is inbelievable the full year forecast is raised substantially. the stock pulled back a bit. it is still up 18% year to date. don't take it from me. let's talk to the chairman and ceo of striker get a better read. kevin, thank you for coming on the show. >> thank you, jim. >> this is very exciting you use a term, we want to make sure we don't jinx you, you think it's a super cycle for medical devices. and for what you sell -- you
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just talked to us about it it is rather incredible. >> we had 13% organic growth in the fourth quarter and 13% in the first quarter. procedures are coming back patients sitting at home are now ready to get hips and knees and shoulder replaced. the super cycle is innovation at stryker. we have a new power tool coming out, a new camera. we have a new hip step for a less invasive approach >> hold on a second. new camera what is that about talk about what the camera does. it's incredible. >> it is really incredible the cameras we use are for laparoscopic surgeries the they can see inside the body they do key hole surgery but now we light up the anatomy. we use icg, a contrast dye that they ingest prior to surgery it lights up so the surgeon can see where the anatomy s this new camera we're launching is called 1788, will be able to light up new things just being approved
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now to identify lung cancer, bladder cancer and so the surgeons are sure they're taking out all of the cancer. >> that's what i thought for instance, j&j announced this -- they did something in the bladder. the you can't do anything with that you're stuck you can't just in certificate a -- you can't use a hypodermic needle for bladder cancer. >> you can't the camera is fantastic. to be able to see exactly what the surgeon is doing, safer surgery and make shurg you're getting all the cancer this is really terrific innovation fluorescent imaging is the term we use >> what about the speed drills >> we use drills for nur neurosurgery >> they make a big chunk. >> no. these have very small. >> now, i'm saying you changed the game. >> before he open up the entire skull. now can you go in minimally invasively and reremove tumors they have a device that cuts and pulls out the tumor from the
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brain. >> we don't want to confuse -- tell he medicine and talking with a doctor. this is more important in terms of the way that people in the hospital get around. this is fascinating thing you v. >> this is an amazing deal recently about $3 billion acquisition a tech company what this does is automates work flow in the hospital so that all today are all writing down notes and looking up phone numbers for doctors now they just speak into a badge. nurses love. this you think about salesforce.com what that's done for companies this is that equivalent of automatic work flow in hospitals, nurses physicians >> i also thought that is a great way to fight these lawsuits there are so many lawsuits malpractice. you keep the cost down you log it into the system the next time someone comes, they're not looking at a flip
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chart. it is automated. they make sure they don't give an extra dose because they'll see what has been done it reduces errors. it facilitates the work flow makes things easier. even for a nurse, it has a panic button a patient sometimes get unruly as you've seen on airports and in hospitals, nurses love that they can press a panic button, have a see ilent alarm. >> we hope we never have to see these things, but, okay. so i announced you were coming on and my friend from when i was a little boy jeff seinfeld says why are they still in russia tell them they shouldn't be in russia i always welcome this i don't -- we have a fight are the russian government, not the people you probably want to make a statement. it's such a small amount of your business why stay >> it's a tiny amount of business historically it hasn't been p a big part we chose not to exit as all of our peers have the we're a health care company.
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it's humanitarian. there are people that need these products that are life saving. and so it's -- if we were hamburger company or something like that is more elective, we would pull out we chose to stay in. really, it has nothing to do with our financials. >> it's a very small issue >> right >> so when i listen to things you do, i don't want the people of russia to hate us i want the government to pull out of ukraine but that's -- the people don't want to be in ukraine for heaven's sake. >> sure. we sent a lot of trauma kits to poland and neighbors countries to help with the refugees that are coming out we definitely do a lot of humanitarian we feel it's the right thing to do we're aligned as the industry. it's not like we're standing alone. >> talk to me about maco i remember whether you bought them i remember all your acquisitions so you're just a great acquirer. but maco is revolutionary.
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>> it's been fantastic we're going to celebrate our 10 year and versery what is amazing in the united states, more than half of the knee being replace ready done with maco. a third of the hips are being done with maco and by end of next year, we'll launch a shoulder complication >> tell me about the shoulder. that sealed to be the most intractable of all joints. how do you have anything there >> we're excited about what maco will be able to do it is the hardest of the procedures very, very difficult procedure it's very narrow quarters. the robot is going to help enable that procedure to be done much more consistently, much more predictablebly even if you doenl do 20 or 30 a year the same safeguards we have to help surgeons with knee replacement are used for shoulder replacement i'm very excited about that. >> the last question i want people to understand while it may be a super cycle, you guys are first in almost everything that i can tell is there anything that you're not number one in that you compete in >> we have become leaders across all of our portfolio that wasn't the case when i
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became ceo ten years ago as you rightly say, acquisitions is a key enabler so for shoulder replacement, we're number one right now >> well, look, i -- my friends who unfortunately all my friends know stryker and we reached the age that everything is deteriorating. without you, i don't know what life would be like >> you're a customer of stryker or you will be >> true. all right. that is the chair and ceo of stryker which is a company i've liked for so long. i'm glad you're on this show >> thank you >> "mad money" after the break zblcht coming up, cramer has a sports report. find out how ghome gamers may cash in off the field next
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james harden scored a late three pointer that let the sixers tie the series at two games apiece along with the second running of the miami grand prix that started last year got me thinking about the professional sports stocks i'm always searching for ways to keep you engaged with the market some of the publicly traded leagues are even teams that can help make things interesting they've done pretty darn well. a little over a year ago we ran statement on our favorite pro sports plays and on average they crushed the major indices. they are still worth owning. there is madison square garden sports that is the corporate owner of the new york knicks and rangers. even when they rnl playing well, these are two of the most financially valuable franchises
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in any sport the new york media market is so lucrative. basically underlying value of the two teams, i told you madison square gart enis ridiculously undervalued i didn't know if management would be able to unlock. that knicks and rangers should be worth $8 billion. they have more assets. msg sports had an enterprise value below $5 billion it made no sense to me in the last 13 months, the stock rallied 15% during a period the s&p 500 is down 9% that said, you have a much better opportunity if you bought msg sports until they went last fall it is up 50% from the levels yet even up here the stock trades at about $2 billion discount to the value of the underlying teams what is behind that run? is that because the knicks and rangers had is good seasons and still going on with both teams making the playoffs and knicks still alive in the eastern conference essentially finals? they're playing the miami heat
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tonight. it doesn't hurt. but msg sports also got a boost from wall street's recognition that value of major sports franchises keep climbing last summer the denver broncos sold for $4.65 billion the record price for any north american sports franchise. then the suns were sold in december for $4 billion. now the nfl washington commands have a deal in place to be sold for just over $6 billion that would set another record. i think msg sports can continue to move higher although if management fails to unlock value here, there is not much the shareholders can do about it thanks to the ownership structure. speaking of value, 13 months ago i told you to watch manchester united, the british soccer club. one of the rivals chelsea football club looked like it was going to get sold for big premium. that happened. manchester united stock didn't see a big pop in time. at the time it is roaring. management said they're
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exploring strategic options including an outright sale it looks less likely the key owners will actually sell with one calling the whole process a farce. the stocks ran up from $13 last april to $19 today, it is pulling back hard from the highs. it's not too late to ring the register the key catalyst, gone now let's talk about one i wholeheartedly endorse aprilst last year starting with the atlanta braves can you own the via liberty braves group it is tracting a stock i don't like those let's play it out. that is a ticker that sounds like an obscure cyber metrics acronym. the braves belong to liberty media. an infamous complex structure. they let you play the raves and the real estate and surrounding stadium. i told you i liked it but waiting for a pullback sure enough, the stock fell from 29 last subpoena to 25 last june since then, it caught fire climbing all the way to $39 and
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change today now 35% since my initial recommendation again, the s&p 500 was down 9% over the same period it caught fire because late last year liberty media announced plans to fully spin off the braves creating an independent company called atlanta braves holdings it should be finished by the end of the current quarter this tracking stock will turn into a real stock. directly own shares in the best team in the team that still has the best record in the national league i hate them though they're always winning drives me crazy. now you don't have the noise of the liberty media corporate structure anymore either finally one that i think is caught most people's attention this is one of the reasons i want to do this piece. formula one. liberty media owned business with the tracking stock. this one is liberty formula one group. while this one is only rallied 5% since i recommended it 13 months ago, it is surprising i think we came in here relevant peek last spring
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then even, don't forget, it trounced the s&p 500 like i've said before, i'm very bullish on formula one the sport. a truly global phenomenon that started to outrate nascar here in the u.s doesn't hurt that they've been bent over backwards to make the races more competitive even if the red bull team seems like it is a dominant team liberty media reported earnings just friday. just before the miami grand prix got rolling. we heard tremendous stuff about formula one. excellent ratings. attendance numbers multiple tv distribution deals including many new partnerships. that's why they jumped 4% on friday the big news is this year is the debut of a third formula one race in the united states. a lot of my friends are talking about this it's the las vegas grand prix coming in november a rare night race down the vegas strip. the they made a huge $500 million bet on this as part of the plans to keep expanding here
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in america the ceo i've known for years and he such a good business person seize this as an iconic race that could draw in a ton of new sponsors i'm inclined to trust him given his incredible track record. they have been a huge win. any investors that came along for the ride in attracting the stock made a killing long term in the end, all the pro sports stocks that i highlighted in april have gone up despite the overall market being down. i think is evidence of a broader bull market here as these teams or entire leagues keep getting more valuable the bottom line, i think madison square garden, okay, it is to keep given what the knicks and rangers should be worth. although, i have no idea if management can continue unlocking that -- they've got to unlock the value in the future i feel a lot more company with the liberty braves once they gain the independence from liberty media. the atlanta braves are a great long term team they always seem to win. the last but not least, let's
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stick with formula one as the best investment. i see it grinding higher over time as interest in sports grows. especially with this night time race in las vegas coming this november let's go to jacob in ohio. jake open? >> jim, boo-yah! >> boo gen-yah, jacob. >> i want to know about ktake-to interactive. we have seen the rise of rvr, met averse, everything they're better positioned than meta could ever be they're everything zuckerberg wish they could be why are we not putting every dollar into take-two >> you make a compelling case. he told us he didn't think the last quarter was good. we have to -- you know, we have to take that into account. i agree with you i think that what i would call cool in our business it's about to inflict. there is a lot of good things coming i think at $125 i would be
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buying take-two very aggressively let's go to patrick in arkansas. let's go to patrick in arkansas. how sflu. >> i'm doing good, another monday >> true. >> but, yeah i was calling because i have a question about lnw light & wonder of i owned it since 2020 much i was wand whaerg your opinion is on it >> well, i'll tell you this is one of those -- let's use this as teaching lesson they're about to report tomorrow one thing i don't do is when we're right close to the earnings and i don't know what they're going to be, i usually try to guess i know longer do that we're going to have to wait to see what light & wonder zdoes i thank you for. that you don't know and can you just easily blow up. i don't want to do that. the outperformance from the sports stocks stluggests there s
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a bigger bull market in play i'm sticking with formula one to be the best investment out of the bunch. much more "mad money" and including with exelon. i'm finding out this could be a competitive advantage for the utility with the company's top brass. then why do so many people get this stock from apple wrong? i'll reveal what i think is the main reason this name has become so hard for wall street to embrace. and rapid fire in tonight's lightning round. so stay with cramer.
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don't worry about a
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recession or extended period of slower growth. you can get a lots worse than owning a nice consistent business like utility. take exelon, the nation's largest energy supplier. chicago, washington, d.c. and philadelphia they reported substantially better than expected quarter the stock didn't do much management left the full year forecast unchanged still, a very strong start to the year that's what the maers. let's take a closer look the president and ceo of exelon and see what he sees going forward. welcome back to "mad money." >> jim, thank you for having me. good to see you. the. >> good to see you okay let's get the tenor of things. we hear a lot of people saying commercial real estate is in trouble. the big cities are in trouble. people have left the city. you have a better read than anybody. is any of that stuff true? >> i think it is it's a combination of all those things impacting the market. and our customers are feeling it on a day today basis in their pocketbooks. but as a utility, we're there to
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add value to our customers and ensure that we help manage during this volatile period. >> how is it possible that the rates in your cities are 23% below the average of the rates in other cities? >>. >> we make a very conscious effort to keep our prices low. we manage our o & m costs. we do prudent investmentes in our capital. but because what we know at the beginning is that our customers expect reliability and resulency. so, we are investing in that infrastructure it's incumbent upon us to manage the cost and doing so. so, when you look across the exelon platform that, is something we do each and every day from a supply chain from our investmentes in the communities all of those things go into keeping the costs low, jim >> okay. so what happens when you get the word from, say, atlantic city electric they want to do something that
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is really great for metering then you get a climate ready pathway. these are things that they're up to you necessarily you're responsible for doing them >> you're right. you're right the process for us is we believe in a very collaborative stake holder engagement plan, meaning that to your point, regulators and legislators want a lot but we have to be very clear with them. we're willing to help you get there. but here's the cost that are associated with making that transition atlantic city was our last utility in our fleet to put smart meters on the system but there is an advantage in investing in that level of technology we know for a fact through smart meters, we reduce truck rolls by over 560,000 over the course of a span of a year and that is real dollars coming back to our customers. so that's where technology
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investments come into play >> are you getting any money from the ira, from the inflation reduction act to help you in these things >> well, it's not so much helping us it's really partnering with our customers. so the ira are going to be key pillars in really keeping rates affordable for our customers they're historic pieces of legislation. they provide the opportunity to partner with our jurisdictions let me give you an example philadelphia, so we're partnering with about how can we bring hydrogen hubs in the city of philadelphia where we have matching funds that we can go after because of iija to reduce the cost of the overall implementation around reliability, grid resiliency, all of the things to fight climate change p that's where the iija and ira are going be to very powerful. >> who do you bring in to do
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reliability? would that be your core competence are there companies that we should all know that are helping? >> we have many contractors of choice when you look at the 19,000 half of those men and women are align men and women each and every day out in the field that's their job every day to keep the lights on and gas flowing. so those are the men and women keeping that reliability operating in the top port. they take it very serious and proud of the work they do. >> let's go back to the commercial real estate issue we keep hearing it from work from home, people, you know he don't meet as many builders in each city. of is that case in chicago and philadelphia >> we need the number of employees. but we may not need the square footage to your point. of all the office space. the we've done a very good job we will continue to do a focus
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around consolidating our real estate what exactly is that need? and we do have a hybrid work environment for our employees. all of our men and women so, what we're very focused on is we believe the interaction between our teams, the culture of the delivering the reliable electric in gas is key we do encourage them to come into the office on a regular basis. and that engagement, we can't get away from. we're in a srs business. and wee framed that with our employees that they collaboration is critical to sustain success. >> do you see in cities like chicago and philadelphia the actual electric power use go down on fridays? >> no. not at all i think what we may see though is a shift from that commercial investor mix, the office space to the residential we saw that during the pandemic where the commercial usage may have gone down but the residential usage went up as people were working from home,
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educating their children from home, all of those things come into play. and what we found, jim, more importantly, is that the need for reliability is even more critical as you were charging your car at your home, as you were working from home or educating your kids from home, no longer is it acceptable that you're out 24 to 48 hours you want real estate time communication from your home utility. and that's what we're striving to provide >> we have to talk about charging i think that's going to be increasingly what is on people's minds. i'm worried about eliability you obviously provide that that is calvin butler, president and ceo of exelon. a lot of different utilities it's no the just comed it is philly and baltimore and del marv yachlt he has 10 million people
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♪ ♪ why are there two extra seats? matc are we getting a dog?ion. a great dane? two great danes?! i know. giant uncle dane and his giant beard. maybe a dragon? no, dragons are boring. twin sisters! and one is a robot and one is a knight. and i'll be on the side of... the octopus. rawr!!! the volkswagen atlas. more room for possibilities. ♪ imagine, a car that goes as far as it does fast. as sleek as it is spacious. as smart as it is beautiful. introducing lucid air.
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experience the best. ♪ ♪ it is time time for the lightning round play the sound and then the lightning round is over are you ready? lightning round. george in california george >> jim >> yeah, george? >> brooklyn go giants on accolade, should i be adding? >> no. no accolade is another one of the companies that got to pivot. they have to make money. look what happened to pal when they started making money.
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stock is up huge in the after hours. greg in new york greg >> yeah, jim this is greg big fan of your show >> thank you what's up? >> yeah. my question is about apa i have some position in the stock. >> i looked at them this weekend. almost all natural gas if you want to be in natural gas, you have to own cotera. better dividend. they have a lot of oil you can't have just one. john in new york john >> yeah. mr. cramer, boo-yah. >> boo-yah, john >> capital, would like to take over jetti >> i'm going quote david faber i don't know anything about them i think they'll make money next year i think it could work. let's go to chad in indiana. chad >> jim, it's an honor to speak
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with you, sir. >> thank you >> i'm curious, i bought cummins last week at $51 and change and now $47. did i make a mistake with charles schwab >> they're being pushed down aggressively part of the company that is a bank can sink to a gigantic company. the stock and bond company that everybody knows. i don't want to own the stock. i don't recommend any regionals. i don't recommend any stock caught up in this i think it's a great company. let's leave it like that eric in virginia eric >> boo-yah, jim! first time, long time. >> all right absolutely thank you. what's going on? >> i want to ask you about endx. up 50% since february. >> you know this is going to be lithium and ion. the only i like is alb that is finally come down enough to buy and that, ladies and gentlemen, is the conclusion of the lightning round!
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>> coming up, cramer an apple's appetizing upside next
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♪ ♪ ready for the big show? buckle up. ♪ ♪ i'm not gonna lie to you... that was awesome! why is it that apple stock is constantly overestimated in intelligent people bet against the largest company in the world. and more often than not, they
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get it wrong just like last week why? because the people who cover apple are tech analysts, not consumer product analyst they see the sales streak and they think that is unforgivable in tech world. they want a fancy new product big enough to move the needle every year they don't care about the ancillary businesses, watch, pads, phones they misunderstand what apple is so what it is? this weekend becky quick asked the lead director if it is a consumer product company, she said definitely, it is that matters i talked to her every day when she was in media and technology. a storied firm in the research one of the best people in the whole business so when she says it's a consumer products company, you need to take her seriously even if you're like me that i think it is the best technology in the world. i love to make this point about consumer side of apple because apple stock trades 29 times earnings which is absurd for a tech stock with declining sales. perfectly reasonable it to be a
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super packaged goods company coca-cola 25 times earnings, proctor 27 april sl more expensive side don't forget, they have the highest low customer satisfaction in the world. much better brand than clorox. the stock is cheaper than c clorox it is rising slowly but surely this year it will have about more than $80 billion. that is most advertising and most is the money nid store in the cloud. increasing though, apple developed a core entertainment product and financial services portal tim cook wad asked whether the apple pay wallet will take on other products they're close mouthed about what will happen next people want to buy stocks on the phone after they read the priced on the apple finance app it is be done by the month sometimes they would buy robin hood other times i wish she would
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destroy robin hood now while many experts get this stock wrong, some people get it very right this weekend apple got an endorsement from warren buffett unlike anything i ever heard from anyone or certainly him take a listen. >> apple you know, it has a position with consumers where they're paying, you know, they pay $1500 or whatever it is for a phone and these same people pay $35,000 for having a second car. and if they had to give up a second car or give up their iphone, they would give up the second car i mean, that's an extraordinary product. >> he owns about 60% of the company and wishes he never sold it listen to this i made a mistake a couple years ago and i sold some. it was a dumb decision if i look at the man, he always admits which wh he is wrong. what a treasure's god send he
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is he gets to become a bigger and bigger shareholder as he has done with coca-cola and american express. none of this were mattered if it was tapped out and prices were high and not enough people tlleft to buy one everyone in china has one. makes sense when you remember they have about two billion active users tim cook said he's been moving aggressively into mexico, indonesia, philippines, saudi arabia, turkey, ma lash yashgs india. that add up to 2.2 billion potential customers. plus, we know that facebook has three billion users. it's reasonable that they could equal that number taking share from android when you have more than two billion users with a 99% customer satisfaction rate, you could easily get the people to stick with your products as you rollout new services, they're much more likely to buy them the cost of acquiring new customers is ridiculously low. a user of april sl eye lifetime user of apple with the greatest market they could ever want. something no other tech company
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or consumer packaged goods company can claim. that's why they still have upside even though it looks expensive. i wish i knew what the lifetime value of the user really is. i bet it's worth a lot more than the covered share price. there is always a bull market somewhere. i promise you that i'll find it r r fofoyoyou.u. i' "last call" starts now hi, i'm brian sullivan tonight the disney pr army digs in expanding its counterattack on ron desantis. we have the late-breaking d details. your ability to get a loan is l.a.'s mansion tax blowing up in the city's face? you will not believe some new data on its impact. the tipping point? for tipping? gratuity requests spreading to self-checkout machines seriously? where will this stop check, please. what a rare piece of memorabilia signed b

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