Skip to main content

tv   Mad Money  CNBC  May 18, 2023 6:00pm-7:00pm EDT

6:00 pm
>> dan >> his chart of ge makes me want to sell. >> all right, thank you for watching "fast." 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. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you a little money my job not just to entertain but to educate and teach call me at 1-800-743-cnbc. or tweet me @jimcramer whenever i'm out and about i connect with so many parents and children who watch this show together and invariably they
6:01 pm
want stocks that appeal to the kids after a solid day where the dow gained 115 points, s&p advanced .94% and the nasdaq jumped 1.51% -- >> buy buy buy >> -- once again because of hopes for a budget deal and continued buying in artificial ijts-related techs i want to talk about picking stocks for your children. when i meet you in person whether it be at tjx or target on wall street one of my wife's mezcal bottle signings the parents love to talk about the stocks we own for the charitable trust. invariably it's nvidia and apple, they come up first. so do amazon, eli lilly, even caterpillar, salesforce. the kids want more they want their own set of companies. not their parents' fuddy-duddy ones stocks that are newer and admittedly more risky. i don't shy away from that because i know younger people have their whole lives ahead to
6:02 pm
make back any near-term losses normally we don't spend a lot of time focusing on these higher risk names here on "mad money" but tonight i'm breaking form. i'm going to give you the father-daughter, mother-son list you prayed for the stocks that might turn out to be huge eventually. assuming they turn out to be anything at all. almost all of them are young what we used to call junior growth names so they won't be the netflixes or the teslas or the metas the ones i'm talking about tonight are higher risk and potentially much, much higher reward at least from these levels so let's get right to it we're going to start with a company we actually have on the show tonight celsius. which makes the most successful energy drink of this generation. celsius just put up record sales for the first quarter. up 95% year over year. more important just versus the previous quarter their sales
6:03 pm
were up 46%. that's almost inconceivable! i think celsius could be the next monster beverage, which is a huge success, and pepsico's taking an 8.5% stake in the company with an opportunity to buy more via somewhat complicated formula. that's the kind of pedigree we're looking for on "mad money. celsius could be the great non-tech growth company for the ages second, in no particular order, is on holding. that's the fastest growing sneaker company in the world this swiss company backed by roger federer just reported a 78% increase in revenue. younger investors should worry far more about revenue growth than earnings per share. this company crushed the consensus revenue estimates. it seems like every other person is wearing these darn things you see them on people's feet. no wonder it had a 92% growth in the americas hard to beat it only sold off when it
6:04 pm
reported this week because the stocks had a parabolic run after this pullback i think you're getting a great chance to buy it when how about tomorrow third, exponential fitness is a terrific little company that uses a franchise strategy to offer the highest boutique gym operations like the insanely popular club pilates cycle bar, rumble, yolka six, stretch lab, pure bar. revenue growth 40%. much better than expected. 20% same-store sales numbers incredible no losses from covid no stores closed excellent economics. i was really drawn to the story when we met them last week in the -- if the economics of franchising intrigues you as it does me, then you might want to buy some wing stop this company's a beat and raise machine that always dangles a special dividend because they just make so much darn money lately wing stop's going real
6:05 pm
upscale driven by a universal thirst for chicken wings fueled by their uber eats delivery contract and a new chicken sandwich that's wowing the street you might think you've seen these places everywhere. but in terms of expansion i think they've barely scratched the surface. i love regional to national stories, and we have one that's temporarily lost its way, which means you might be getting a good buying opportunity. i'm talking about dutch bros that's b-r-o-s that's the super caffeinated oregon coffee chain store that's putting down roots all over the country. sometimes i worry dutch bros is growing too fast, expanding too much it just moved into texas hard. it's making so much money. it's coming into the east. but you know what? it has not made the quarter. and that's caused them to take the eye off the ball this is growth that is happening way too quickly. but you know what? i think they course correct. i had my first dutch bros nearly
6:06 pm
a decade ago when my daughters lived in ashton, oregon. they called it the annihilator downed it on saturday morning, didn't sleep till sunday night my kind of elixir. number 6 gambling's been a sucker's game all the way around, right? except for draft kings, which has come to dominate the online sports book industry practically overnight. draft kings just put up some dynamite numbers and we're not even in football season when they shine ceo jason robbins runs a tight ship that's no longer hostage to approvals from state regulators. i like the sports book casino gaming software business. but it's the daily fantasy bets that keep the juices going draftkings about to explode next you know we love estee lauder for the investing club but the other day at our club meeting we admitted painfully that e.l.f., yes e.l.f., the prosaic eyes lips and face, had bested our lauder of late.
6:07 pm
who would have thought that knockoff cosmetics made mainly in china would be so darn successful the price is low, the outlet's great, the -- e.l.f. is the comer in the category. what else? we know work from home was supposed to be done already. now, i am certainly sick of hearing about it then again, i wish i could come to the office on saturday and sunday so maybe i'm an outlier. especially from the work from home gold blikers who survive on logitech's equipment speaking of r. moat work i think people really play video games at home when they claim to be working. no wonder take two interactive knocked it out of the park last night. logitech also has all sorts of gaming equipment along with other hybrid accouterments that i sure hope i never have to find out about. for the record, i like to wear brione suits on weekends, even garden in them i do listen to music with a logitech set of air buds, though ninth, when i first heard of five below i figured it was a
6:08 pm
super r.e.i., a place where you could get all the goods you needed to climb mount everest. it mainly sells kids' toys with super connections to whatever kids are watching right now. that velocity in the market distinguishes five below from all the other toy stores and its consistency is in totally faddish business it's awesome never seems to miss. finally, forgive me. i have to do this. i have no choice i have to include one senior growth stock in the mix. but i can't resist lululemon athletica. simply because i believe this isn't an apparel company at all. it's a lifestyle choice. and people are choosing it all over the world lulu used to miss numbers almost every other quarter. now under ceo calvin mcdonald. the company generates good numbers so consistently that it deserves to trade at a higher level than its alleged peers yes, its market cap is equal to many of the other higher risk
6:09 pm
ch child-friendly names that i've got here on this wall together but i will say this. there are few companies where parents and kids would shop together and maybe buy the stock together than this one bottom line, now you have your ten companies for the future no, not be artificial intelligence darlings. i cover them all the time. not graphics chips who brought you those first? just plain old fast growers that are easily accessible to the younger generation enjoy! we'll have more over time. but for me i'd take whatever i had left from busing tables when i was younger and put it to work in some of these horses! >> buy buy buy >> let's take calls. let's go to brent in michigan. brent! >> caller: jimmy chill >> brent, what's shaking >> caller: the only thing better and more colorful than the amazing blue of michigan football is the big house of greenbacks that you help us earn -- >> i like that that's very spirited to start the show what's happening >> caller: for what i thank you.
6:10 pm
i've got a question about one of our club stocks. you know, 2013 to '21 it shot up like a rocket. it's falling to earth right now. another 5% last week blackrock just took it out of their medical devices eft. almost 100% insider selling with no buying. what is going on with danaher? is it time to punt it and hand it off to ge health care >> our viewers are so smart. and boy, do i like the ge health care jeff marks introduced yesterday at the club meeting. danaher yes the growth did slow because their customers are biotech companies and they've not been able to raise capital in the ipo market or secondary market but i think we just bought some. it's bottomed. it's time to buy not sell. i'm not capitulating danaher yanik in new york. >> caller: jimmy chill coming at you from upper west in nyc. thanks for taking my call.
6:11 pm
>> great to have you on the show what's going on? >> caller: all right with all the uncertainty surrounding the commercial real estate market i'm wondering how this proven leader will hold up. buy, sell or hold simon property group. >> david simon is a winner he's unbelievable. he's done so many things to make his stores great everybody's quitting on him. but let's make it be known, david simon, who by the way is not that nice a guy. i just put it out there. that i think he's going to come through and come through swimmingly and boy, does he ever pay the distributions. simon property group, that one is for me! ♪ hallelujah ♪ there's a whole class of young investors out there looking for up-and-coming companies that they can put their money into. and while they might come up with some that have a lot of risk i just gave you ten stocks that i laid out that could fit the bill for someone aiming to get youth rewards out of their portfolio over the long term on "mad money" tonight speaking of fast growers accessible to all guess what i just said was number one celsius! and they've made it to many
6:12 pm
fridges including mine could the supercharged growth continue i'm checking in with the ceo then we've been tracking the latest on the debt ceiling impasse. but while we wait for a deal could opportunities still be had in this tape i'm tracking which way the market could be heading by consulting the technicals. and biotech dragged lower. but tomorrow one name up a whopping 500% in the past six months that you put on my radar screen and i think could still be worth buying so 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 ssomhing head to madmoney.cnbc.com.
6:13 pm
- [soldier] take a look at this! - they've left us a gift. - [soldier] i think we misjudged them. - i love horses. (birds chirping) - [soldier] we should open the gate. - let's see what charlotte thinks. - [narrator] at crowdstrike, we monitor trillions of cyber events to detect threats and prevent breaches before they happen to keep your business from becoming history. we stop cyberattacks. we stop breaches. we stop a lot of bad things from happening.
6:14 pm
crowdstrike. protection that powers you. mom: hey! cheap flight alert! daughter: hawaii! can we go? dad: maybe. i'll put a request in monday. sfx: shattering glass. theme song: unnecessary action hero! dad: was that necessary? unnecessary action hero: no. neither is missing this deal. with paycom, vacation is yours to manage. unnecessary action hero: not to mention benefits, scheduling, payroll. it's hr in the palm of your hand. dad: wow. unnecessary action hero: ask your employer about paycom. and make the unnecessary, unnecessary. dad: approved! when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block! hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network.
6:15 pm
we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch?
6:16 pm
what, we have a ton of mulch. some of my favorite stocks they just don't quit take celsius holdings. that's the energy drink maker which has seen its share price, you're not going to believe this, soar from the low single digits in early 2020 to 133 as of today you know what that is? that's an astonishing 483% gain since we spoke to the ceo back in october of 2020 how's your index fund doing versus that? between 80 and the low 100s until early last week when celsius reported a magnificent quarter. the company earned 40 cents per share wall street was only looking for half of that which is why the stock jumped 20 -- nearly 20% in a single session. how did they pull that off last august celsius cut a distribution deal with poapst co. and that's paying off in a major way. don't take it from me.
6:17 pm
let's check in with john fielding i don't know if you remember he's the chairman and ceo of celsius. when he came on the first time a lot of people were skeptical we were not. john, welcome back to "mad money. >> glad to be here, jim. >> tell me what it means to be hyperparanoid and win that way >> got to be hyperparanoid it's critical. we're in the energy category highly competitive right? you're always going to be outmaneuvered. and we've got to outmaneuver and outexecute that's what it's all about >> when i first saw you i thought it was i agym drink. and then i thought it was a convenience store drink. then i thought when i was in florida you know that because your team came to see me i thought it was a publix drink, then a kroger -- you're in every drink. >> we are. when i came on last time we were talking about going after energy that was a huge opportunity. it's a major, major category when we look at it today especially after the partnership with pepsi we're seeing use indications expand we're going after total beverage here >> tell me about the pepsi group, the reason i say this is because if you're on the truck so to speak you're golden. you guys are on the truck.
6:18 pm
>> we're on the truck and since october we've gained over 81% increase in our distribution so pretty much find us everywhere as of now so amazing grab a celsius >> you're crushing it on amazon too. >> amazon. and that's the opportunity, right? because that's the store where everyone shops at around the nation, everywhere if you can win on amazon we feel we can win everywhere. we're excited. >> so tell us about the advantages it's about to be the summer and they're going to -- a lot of people are going to reach for a celsius the first time what are the advantages over, say, a five-hour energy or triple venti cappuccino? why do people like yours more? >> first hands down it's all about the flavor we have great flavors for summer i'm drinking an oasis vibe right now. we just launched it with -- we launched it with target. great success. >> with target >> yeah. >> congratulations >> flavor's great. we just did a huge campaign at coachella. one of the hottest events as we know that takes place. great flavor ready for summer. >> now, you are a little
6:19 pm
different. you do a conference call you know i'm on these conference calls. you are very clipped you have a story you don't waste anybody's time you are not like most of the ceos we see. is it because you're a believer in the product is it because you're a no-nonsense guy? the only reason i ask this is because i find it pure joy to listen to you and see what you do most people are too circumspect. you get right to the point >> we have to get to the point we're here to win. we say it as it is we're extremely confident in what we're doing we just put up $1 billion in retail sales in the last 52 weeks. the brand is doing extremely well we're really confident we're excited where we're going. and on the conference call just say how it is. >> but you never slam the competition. there's a moment in a really good interview, by the way, with goldman sachs where you actually say that look, we are -- look at the brands we source from. and i love that term red bull and monster but you don't knock them you regard them as worthy competitors. >> great brands. they're still growing. they're dominating the category.
6:20 pm
they own 70% of the share. so they're great brands. there's a lot of room there. we're a strong number 3 now and growing, which is really exciting >> that's amazing. where were you when i first saw you? you were just in a regional small -- >> when we first got together i think we were just scratching the surface around half a share. one share. very small in the category now we're a solid number three >> when you're having people over, you've got these cans, i want a 16-ouncer, can you get me that >> coming soon >> wall street that going to be? is that going to be -- there are people who like to -- i'm a pure drinker but there are people who like to mix it up a little, make a bit of a summer cocktail out of celsius >> well weefrks got a lot of things, especially here in new york taking place out in the hamptons at palm festival. and we'll have a bunch of mocktails out there that incorporate celsius. a lot of things to cool off and get ready for the summer and have a lot of fun. most importantly it's all about seles kruse living fit >> i want to explain to some people, you're going to do it for me, there are people who say jim you have one of those and you're flying.
6:21 pm
the truth is it does have a lot of caffeine but it's not like an annihilator from dutch bros. it's a pretty solid pickerup but it's natural it's not some sort of crazy thing. >> no. one thing we hear, great flavor and then no crash and no jitters. that's how the product's built no sugar, no as per taim, no high fructose corn syrup seven essential vitamins as well which truly differentiates us in the category the brand is solid the ingredients are solid. we take great pride in the quality of our product >> i don't want to bore you but on wall street we actually care about raw costs. the can prices have come down. you're actually doing -- you're making it for less >> we are. we went through the can pandemic back during the pandemic we started importing cans. now we're sourcing everything locally. little bit of inefficiencies in the first quarter due to shipping outside and shipping costs but we think we can get those optimized over the next several quarters have some increased margin >> so toby david has been saying that a lot of this is the brilliance of tiktok and i have to tell you i think your social media's about as
6:22 pm
progressive as i've ever seen. how much of it is curated, how much of it is just that worked >> it's all home grown at celsius. the team does an amazing job we've got the best team in the business social media, got to own the phone. if you're out there check out our tiktok the team does a great job. instacart, snap. and on i.g. as well. a lot of great stuff >> then finally international. look, i know the red bull's big overseas i want to see you be -- can you ever be a premier league team? what could happen with your brand? >> well, that's the huge unlock. they're in 126 markets right now we have about a 10 share in sweden. we have distribution in the nordics and finland. we also have distribution in south korea, taiwan, hong kong and several other markets. but we're just laying seeds right now. and that's the huge unlock in the future for us. the u.s. is on fire. like i said, number 3 brand, a lot of opportunity here. we need to win in the u.s. and continue to grow internationally. >> i feel very honored that you've come back when you first came on i just said this guy's for real and this stuff is for real and the drink is for real. i had no idea you could take it
6:23 pm
where you could take it. but that's because you are no nonsense you're tough and your team is fantastic that's john fieldly. he's the ceo of celsius holdings celh and i am a believer, as you know from the top of the show "mad money's" back after the break. >> announcer: coming up -- take a ride off the charts and onto tesla's open road why elon musk may soon be smiling. next
6:24 pm
i struggled with cpap every night. but now that i got the inspire implant to treat my sleep apnea, i'm sleeping much better. in fact, it's making me think of doing other things i've been putting off. like removing that tattoo of your first wife's name.
6:25 pm
but your mom's name is vicky too! that's even worse. ( ♪♪ ) inspire. sleep apnea innovation. learn more and view important safety information at inspiresleep.com. ready to take your business to the next level? scale it with the commerce platform, made for entrepreneurs. shopify is specially designed to help you grow your business. with easy, customizable themes that let you build your brand. marketing tools that get your products out there. yeah, way out there. shipping solutions that actually save you time. and that's just the beginning. from start ups to scale ups. online, in person and on the go. shopify, your all in one commerce platform. what if we live to 100. i don't want to outlive our money. i keep eating all these chia seeds. i could live to be 100. we work with empower, even if we do live to 100 we don't have to worry. eh, not worried. take control of your financial future to empower what's next.
6:26 pm
if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more. we're always searching for potential winners, especially in moments like this, where you might get a trick buying opportunity the next time we hear about discouraging news about the debt ceiling negotiations something that's almost a given since they love pointless drama down there in washington, don't they i still call that i
6:27 pm
ahigh-quality problem given that there are no negotiations to speak of just a couple days ago. right now we're in a tricky moment because if you want to know where the market's headed you need to be able to game washington in a high pressure situation that's inherently unpredictable, right at the same time you've also got to game the federal reserve. will they really pause the rate hikes at next month's meeting or will they insist on lowering the boom on us again [ boos ] as we hear from several fed heads in the last 24 hours so at times like seize you know what i like to do. i like to take a step back because it's hard for anyone to make an objective assessment of political issues, we all have our biases with this stuff it's tougher to analyze and say something non-partisan like procter & gamble's gross margins. by the way, with own procter for the charitable trust and it got bruised today. you know what i think? >> buy buy buy >> sometimes you have to take your feelings out by consulting the technicians and technicals that's why tonight we're going off the charts with the help of larry williams he's the legendary technician and market historian who's been
6:28 pm
the top expert in this space since before i could drive larry's written over a dozen books and created a host of his own proprietary technical indicators which you can find on his website, ireallytrade.com. you ought to go. it's fantastic plus he's only getting better with age as his recent track record's incredible. this is the guy who called the covid bottom in the spring of 2020 when wall street was able to jump out of the windows he called the big january rally at the beginning of this year. he realized the nasdaq was ready and nailed the netflix move which by the way, 31 points today. so what does williams, who is so red hot, see right now well, you know what? he is actually feeling quite with bullish about the broader market but before that let's talk about one stock he likes in particular and that david faber will certainly want to listen to. yes, take a look at the weekly chart of none other than tesla at tuesday's annual meeting elon musk warned the next 12 months
6:29 pm
would be challenging for tesla thanks to worldwide economic weakness williams doesn't dispute the next year might be difficult for the company but feels more confident about tesla's stock. remember they're two different things i don't think larry would argue with musk about electric vehicles or rocket science stocks are another issue, though and right now he thinks tesla's got an awful lot going for it. now, let's go to cheese charts is always looking at the past action in any begin stock to identify cycles that seem to repeat themselves over and over again which they do in tesla he seems a long-term cycle and an intermediate-term cycle. you can see the longer-term cycle, that's the one in blue. this is a 42-month cycle it isla's major highs and lows have all pretty much stuck to this pattern ever since the stock began trading. why does it matter because right now the long-term cycle's looking pretty darn good it bottomed near the end of last year which is when the stock stopped going. this pattern says tesla can keep rallying through the second quarter of next year rather than worrying about the next 12 months williams recommends buying the dip
6:30 pm
although you might want to lighten up on your position into any of the big rallies but look at this you see where this is headed williams was so right on netflix this is the same kind of feel i got about that call he made on netflix. now, speaking of big rallies he says tesla's due for one right now right here because there's another cycle that matters, the intermediate-term cycle. and that's in red. accordtion to williams when tesla gets to this phase in the cycle historically it's valued 80% of the time from right about now through early september. 80%. i will take that i can't tell you why these cycles seem to repeat themselves i can't explain why they often lead to successful trades. i can only point you to larry's amazing data because you can't argue with that kind of track record and you can't argue with his data. now, check out this weekly chart of tesla with williams' proprietary indicator at the bottom that measures hedge fund and mutual fund buying this is the other reason he's feeling positive on tesla. these money managers have an excellent track record of buying
6:31 pm
a stock right before rallies notice they're not contrary, they're actually correct over the last four weeks they've been buying tesla's stock aggressively that suggests the stock's getting ready for a big move higher how about the daily chart? with the same institutional money manager indicator at the bottom you can see even when tesla's price has declined the blue line which shows professional accumulation didn't go down. nice money managers stuck with this one on weakness and they tend to buy it right before strength plus it doesn't hurt that williams says the seasonal pattern is on tesla's side right now too. okay we've now exhausted all the great news about tesla you could have this week, haven't we well, i think this is the best of all if you're a stock guy but let's see about the broader stock market right now williams is feeling darn good about the stock for one simple reason. for over a year inflation's been our number one worry and right now inflation, despite what you hear, despite what you see, is actually vanishing almost as quickly as it came
6:32 pm
here's a very important indicator nobody talks about this is the new york fed's underlying inflation gauge, which is very much headed in the right direction. wouldn't you say this tells williams that the fed will soon back off on its rate hikes, maybe takes one more meeting but it likely won't be more than that now, i know this is contrary to a lot of the tough chatter you heard in the last 24 hours from various fed leaders. but you know what? i'm not going with them. i am going with williams next, take a gander at the weekly chart of the dow jones industrial average with larry's long-term stock market cycle shown here in red. right now the long-term cycle is pretty darn bullish. we see that. williams says this cycle has been a reliable predictor of stock prices for over a century. and he doesn't think it's going to fail us this time at the same time the intermediate term cycle in blue suggests we could have a nice run at least through mid july. how about that another one you'll take, right although it also predicts a pullback from mid july to september. but you know what? in the interim you'll be in
6:33 pm
clover finally check out the daily chart of the s&p 500 futures in black. from the proprietary metric from williams in blue we often use the advance decline line to measure the strength of a given move this indicator does something similar. williams likes to measure accumulation in futures contracts by combining volume, open interest and price accumulation into this one line called the williams poiv which gives you a better read on the strength of the market whenever the poiv is trending lower then it breaks out above its trend line after that period that tends to set up for a very nice rally right there. that's what he's talking about this moment, okay? that's exactly what happened to the poiv not that long ago still one more reason to expect a rally here bottom line, despite all the hand wringing about this moment the charts as interpreted by the legendary larry williams suggest the broader market's heading higher and in particular, by the way, tesla's stock could have a really, really nice run. >> buy buy buy >> zach in minnesota
6:34 pm
zach >> caller: explain yourself, cramer you got me all fired up over american express i thought it was supposed to be best in class in card companies. but why is it underperforming its peers so badly since the regional bank fiasco i keep hearing the typical axp card holder is insulated from inflation and recession. i hear white collar workers being laid off by the thousands are receiving severance packages that should translate into continued spoending and lower rates of delinquencies so is this the fair value of this stock or will it go back over 170 thank you. >> zach, maybe the chart is wrong. maybe the stock is not following the fundamentals because the fundamentals are darn good. steve squery's going to deliver. and people like capital one should love american express, axp. memo to lisa, enough, the points go to me this month. raymond in new york. raymond. >> caller: hey, jim, how are you doing? >> what's going on with you, raymond? >> caller: just giving you a call to talk about the recent
6:35 pm
price decline of the nike stock. it was around 128 a share, right? >> yeah. >> caller: and in the last few weeks it's dropped to 117. today it's up about 1.62% at $118.87 but going nowhere fast even though their last quarter results were good. so i understand that nike's activity is within a strike price range of about 80 bucks, or $135 in the last 30 days. >> right >> so what do they know that we don't know -- >> okay. everybody's worried about the china middle class stopping its buying there is some truth to that. china has not had strong middle-class buying ever since the end of the pandemic. i think it's because they're going to catch up. but the alibaba numbers today weren't that good. my suggestion is nike went up $1.89 today. do not buy it until it gets back down to 115, 113 i can't be that bullish after the baba numbers i saw and some of the middle class numbers i've been reading out of china.
6:36 pm
the charts as interpreted by larry williams suggest the broader market is indeed ready to roll. and tesla could be one of the leaders in the up side >> buy buy buy >> much more "mad money" ahead you called and stumped me on viking therapeutics. so could this be a stock that could ride the wave larry williams just pointed out? it's exciting. i'm turning in my homework next. then i'm always talking about the channel. why is it more important than ever to pay attention to this corner of retail that is very -- kind of like a riptide i'm revealing a few names that could capitalize on this unique moment and of course all your calls rapid-fire in tonight's edition of the "lightning round. so stay with cramer!
6:37 pm
♪ this is the all new, all electric lucid air. a car that goes as far as it does fast. as sleek as it is... spacious. as smart... as it is beautiful. introducing the lucid air. experience the best. ♪
6:38 pm
lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.
6:39 pm
our customers don't do what they do for likes or followers. their path isn't for the casually curious. and that's what makes it matter the most when they find it. the exact thing that can change the world. some say it's what they were born to do... it's what they live to do... trinet serves small and medium sized businesses... so they can do more of what matters. benefits. payroll. compliance. trinet. people matter.
6:40 pm
every night i take your phone calls because i don't just want to do a show about stocks i'm interested in. i also need to know what you're interested in. usually i can answer your questions but sometimes i get stumped, at which point i take some time, do the homework and come back to you with a more considered response. which brings me to a company called viking therapeutics three weeks ago jamie in michigan called to ask about viking it's a clinical stage biotech company back when the stock was just trading at a little bit under 20 bucks now, this is an intriguing story that jamie has brought our attention to you know why because viking therapeutics is all about developing novel treatments for met a'll boic and endocrine disorders. they currently got four drug candidates in phase 1 or 2
6:41 pm
clinical trials for a range of indications. viking's lead drug is currently in a phase 2 b study for the treatment of non-alcoholicment is teotep two hepatitis. that's also known as nash for short. that's an acronym. and this is a rare form of fatty liver disease that you don't get from drinking. it causes inflammation of the liver followed by liver damage, something that's really dangerous. at the same time it's got a potential obesity drug that just finished phase 1 testing and another that treats x-ald. that's a rare genetic disorder that affects the nervous system and the adrenal glands put it together and i think you've got i adecent sounding pipeline viking therapeutics has been around for several years came back in 2015 which was a peak ipo year similar to 2021 initially the stock didn't do much aside from a quick rally in 2018 followed by a quick pullback since then viking had been drifting steadily lower until
6:42 pm
getting absolutely crushed when wall street turned against all the early stage growth plays in late 2021 with bioeffect especially out of favor. as the whole group got benlt, spindled and mutilated viking saw it plunge to the low single digits the darn thing was trading at just over two bucks at the bottom in june of last year. at those levels it was too small for us to even mention on air. since then, though, the stock has come roaring back thanks to a trio of powerful catalysts we've got to go into over the past five months viking therapeutic has worked from around $4 to $23 the stock's up nearly 500% in the last five months including a nearly 150 gain year to date it's just been a horse what's changed aside from the fact that wall street became more hospitable to growth stocks as we realized the fed was almost done raising interest rates, i still think that's the case, three major things happened. first in december another qup called pharmaceutical announced its own nash treatment which had similarity to viking's
6:43 pm
lead candidate this was widely seen as i avalidation of viking's approach which is why the stock soared 74% on the day we got the news by the way, madrigal's drug just got breakthrough drug designation from the fda last month and their future's looking incredibly bright. second catalyst, in late march viking announced positive phase 1 results for its obesity drug although it was a very small study, only 20 people. there were some incredible weight loss results for the people who got the real pill, not the placebo. good safety data too these results were so positive they helped viking to a successful secondary offering, raising $287.5 million at $14.50 a share. in retrospect that was certainly worth going in on. i'm excited about their weight loss pill because it's the same class of drug as the revolutionary diabetes and weight loss treatments from cramer club fave eli lilly and also nove nordisk. even if viking can only get a small piece of the pie here we're talking about an enormous pie. no wonder the stock jumped 69% in response. that's a ridiculous single
6:44 pm
session move the third catalyst came this week tuesday morning viking announced tremendous fades 2 data for their lead drug the one for liver disease. people who got the lowest dose saw a median reduction of 38%. while people with the highest dose saw a median reduction of 535% of those that got the highest dose 85% saw a 30% drop in liver fat. that's sensational but the most positive thing is viking's liver drug had more efficacy than madrigal's liver drug the one we talked about a minute ago i'm honestly surprised viking's only up 12% on the news and since then the stock's begin back more than half those gains. but there's a reason the market turned against biotech this week the federal trade commission in its wisdom is trying to block amgen's acquisition of verizon therapeutics which in theerpy makes the whole biotech space less valuable given that potential takeovers are a major reason people buy these stocks to begin with. i think the ftc's gone off its rocker we need good solid companies like amgen to buy the horizons of the world this is about health care not
6:45 pm
profits for heaven's sake. so what do we do with viking therapeutics here? well, as much as i like the fundamentals we're definitely late to the party. stock's up nearly 500% since mid december i wish i'd recommended it when jamie in michigan asked a few weeks ago as it's up over 16% since then but you know what? you could have said that about any point in the last six months then again, even after this move viking isn't that big, with a $2.3 billion market capitalization which includes $400 million in cash -- to put that in perspective madrigal pharma is valued at more than 5 billion. i think this one's better. while madrigal's drug is closer to the market viking's drug looks more effective and they've got more going on in the rest of the pipeline plus even though ftc wants to ban amgen's horizon therapeutics take over that's a big $28 billion deal i don't think that has that much impact on smaller biotech deals. they're still natural takeover targets for big pharma companies. they need to fill their own pipelines. that's especially true for viking given they're working on the same kind of obesity drug that's gotten everybody so
6:46 pm
excited about lilly and novo nordisk. if you're rung a big pharma company that missed out on the class of drugs it's only a fistful of dollars to snap up viking bottom line even though viking therapeutics has already had an insane run that's because the company's gotten some insanely good news in recent months, so you have indeed my blessing to -- >> buy buy buy >> but only for speculation, please ideally you should wait for this stock to get dragged down by a marketwide pullback before you pull the trigger i just donate know if you're going to get one "mad money" is back after the break. . >> announcer: coming up -- what's on your mind cramerica? give us a call the "lightning round" is storming the nyse. next
6:47 pm
at adp, we use data-driven insights to design solutions to help you manage payroll, benefits, and hr today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪
6:48 pm
ready to shine from the inside out? say “yes” to nature's bounty advanced gummies and jelly beans. the number one brand for hair, skin and nails. with two times more biotin to bring out more of your inner beauty. get more with nature's bounty. asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®.
6:49 pm
♪ (upbeat music) ♪ ( ♪♪ ) with the push of a button, constant contact's ai tools help you know what to say, even when you don't. hi! constant contact. helping the small stand tall.
6:50 pm
it is time it's time for the "lightning round" on cramer's "mad money. play until you hear this sound and then the "lightning round" is over. are you ready, skee-daddy? time for the "lightning round" on cramer's "mad money." let's start with dave in new york dave >> caller: hey, how are you doing, jim thanks very much for taking my call >> of course what's up, dave? >> caller: i was just -- i was wondering what you thought about pfizer right now because i know -- >> i'm a little concerned. i mean, you have an ftc that's gone wild i think. pfizer's got a good yield, 4.5% but i don't buy drug stocks for yield i buy them for growth and that's why the club likes eli
6:51 pm
lilly. let's go to steve in florida steve. >> caller: boo-yah, king jim >> king jim? nice i'll take it what's up? >> caller: jim, i'm wondering should i either hold or should i treat it like an old sick cow and take it behind the barn and get rid of it? >> which stock is that that's a radical solution. here's the problem i don't recommend stocks that are losing money on "mad money" because i don't want people losing money so the answer is -- let's go to aaron in illinois. erin >> caller: hi, jim thanks for taking my call. i own shares in evri, evri holdings and wanted to know your thoughts on the company -- >> evri is good -- i'm sorry to interrupt. evri is good but draftkings has got a moment here. in the 23 to 25 area that i think is better than your situation. that's what you want to go with. let's go to michael in tennessee. michael! >> caller: hey, jim. my question is on global
6:52 pm
foundries, gfs >> i like tom caufield very much i think he does a very good job. but when it comes to semiconductor capital equipment the king is lamb research. lrcx that's the only game in town as far as i'm concerned second would be applied materials. only third would be global foundries. let's go to leo in florida leo. >> caller: boo-yah, jim. >> boo-yah, leo. >> caller: i'd like to thank you and your staff for giving us the tools to make money in the market >> oh, you're terrific thank you. >> caller: when the pandemic was winding down and the lockdown was ending, you said that this company should do well as the market recovers. i bought this stock in june, last june, for under $60 it's doubled since then. and my question is what do i do with it now? should i ring the register is this company worth hanging on to does it have a little ways more to go? my company is builders first
6:53 pm
choice >> okay. first i want to congratulate you on that. but second, tomorrow, tomorrow you're going to cut that position in half you're going to play with the house's money. no one's ever lost with house money. why? i didn't like the home depot flooring numbers, i'm worried about lowe's i think you take the profit and run. and congratulations. ♪ hallelujah ♪ and that ladies and gentlemen is the conclusion of the "lightning round" >> announcer: the "lightning round" is sponsored by td ameritrade
6:54 pm
6:55 pm
6:56 pm
the trucks are here. the merchandise we've been waiting for has arrived. hundreds of trucks pulling right up to ali's bargain outlet full of excess inventory that's ready to be priced down to unbelievably low levels. ♪ hallelujah ♪ i'm talking about the long awaited closeout merchandise from bed bath & beyond which has unceremoniously arrived at the vast dumping ground called ollie's. so unless you're a member of the illustrious ollie's army as i am you may not know the bargains are almost upon us ollie's gets all the goodies no one else can move. i love it. retail's a funny thing goods are hot until they're not. stores are strong until they're weak and when cold goods are languishing in weak stores that merchandise goes somewhere else. it might be tjx with its network of 21,000 vendors off-loading their unwanted inventory it might be ollie's. it might be ross stores. these places are the kiss of
6:57 pm
death for many brands. if you see too much of their stuff at a tj maxx you know something's wrong. it's why i'm obsessed with the tj maxx down the block from me at work. it's why i check my weekly's ollie's flyer religiously. you can't traffic in retail unless you know the channel, which like any industry is that vast dumping ground that anything that stores that have too much of gets dumped into whether we're talking chips for pcs or cheap t-shirts from guildn seeing the gildan inventory brimming at ollie's i wouldn't touch that $29 stock way ten-foot pole. the ollie's flyers are flooded with this stuff. this week's incredibly important for retail especially when it comes to knowing about excess merchandise because excess merchandise is the key to owning a stock like tjx, a name we own for the charitable trust which you can follow by joining the cnbc investing club. for most retailers excess inventory is the bane of their existence but for these off-price chains it's the exact opposite their problem is getting their hands on enough inventory that they can sell for bargain basement prices.
6:58 pm
the tjx conference call was so good yesterday largely because management indicated they've got plenty of merchandise. only you couldn't tell that from the pants department as there was nothing in a 33 or 34 when i checked yesterday. had to go with 32. bit of a stretch for me. i would buy the stock at tjx here aggressively as i told investing club members just the other day. >> buy buy buy buy buy >> still if you want to own anything retail you need to keep an eye on ollie's. that's why i told you ages ago to sell the stock of newell before they cut the dividend simply because there was way too much of their product at olly's being sold at next to flog it's why i started being careful with spectrum brands olli's held a george foreman grill sale that freaked me out i know this is pool saefrnz so maybe i'm being a tad extra conscious. i'd stay away from pool chemical too many pool chemicals in the channel. management made it clear they're taking market share thanks to everything they picked up from the closed bed bath & beyond
6:59 pm
the same inventory known as the bed bath buyout on the olli's flyer. i learned fw this stuff from my late dad who told boxes, bags, scotch tape-u name he said look out that's football merchandise, the old-fashioned term for stuff in the channel, stuff nobody knew what to do with that was clearly headed for the dust binn. football merchandise is dead merchandise. when you see it you run from p pop always warned me about what merchandise was being footballed so i could short stock of where it was sold. when i was a hedge fund manager. like when i bet against cantos, an old women's apparel chain that went bankrupt one of the best shorts i ever had. i remember spending the day at franklin mills an outlet mall near philly and seeing no one going into gantos all day except for sight seers. but while football merchandise is terrible for the company that makes it or the stores that initially tried to sell it it's fabulous for off price chains like tjx and olli's that thrive on closeouts as you listen to retail conference calls keep in mind the closeouts and the channel.
7:00 pm
if you don't know the stuff you might never know which stores are good and which stores are worth -- >> sell sell sell! >> -- running from i like to say there's always a bull market somewhere and i promise to try to find it for you right here on "mad money." i'm jim cramer see you tomorrow "last call" starts now one brian slovan, tonight, disney just fired what may be the biggest yet with florida governor ron desantis. netflix may have cracked the code for ads on streaming, but will it leave its drivers in the dust now? the eye watering amount of money that it is causing the retail giant. we got a special report. president biden lost the upper hand in the debt ceiling showdown. one senator calling for the president to take drastic constitutional action joins us tonight.

99 Views

info Stream Only

Uploaded by TV Archive on