>> really quickly, because you guys took a lot of time. intel. the foundry win is kind of interesting. i wouldn't be buying it right here >> 8% here steve? don't think it's time to take a powder in cmg international growth is still on the horizon. >> thank you for watching t.as "mad money" with jim cramer starts right now "mad money" with jim cramer starts right now my mission is "real 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, teach, explain this whole thing. call me. 1-800-743-cnbc or tweet me @jimcramer at times like these when the market just keeps rolling over, dow falling another 252 points s&p tumbling 1.18%

of course nasdaq plunging 1.76%. you have to be mindful we have to be on the lookout for what's called a whoosh or a crescendo of selling that causes a bottom. usually intraday don't worry, i'm just putting you on notice. may not happen tomorrow, may not happen next week but it will happen if stocks keep going down like this and the bond market one day stabilizes and we are no longer fighting the darn fed, which we still are. one day that will occur. not yet. but that's why you need to be ready with your shopping list of damaged stocks, not damaged companies. because they're what's worth buyi buying on the way down you tend to forget about them while this carnage occurs i like to have objective -- my favorite is when they have down to up volume of 9-1. it means finally the bulls capitulate and they've surrendered and therefore there's nobody left to sell which means you've got to do some buying. now, today's a typically ugly day, not the kind where you get that whoosh bottom i like to look at

counterintuitive action for clues of a coming crescendo. one is the s&p oscillator i often talk about is at a minus 5 or lower level because that means it's oversold. and we are there that means the market could bounce we're there. but actually, i don't think that it's done. remember, i cope thinking we're going to have more damage. second is when interest rates stop going higher. now, today rates -- a little respite. 4.9% gdp growth figure and yet the bond market didn't collapse bit of an anomaly because interest rates should have shot much higher. as someone who wants stocks to rally, though, i was actually hoping interest rates would go higher as i said last night, loan rates are too low and there's not enough broad demand for 20 and 30-year bonds at these levels. i think it should be closer to 6% here. 6 going back to 5 is a lot better than 5 going back to 6. 5 doesn't cut it in this increasingly tumultuous world. now, if loan rates stay here around 5% and stocks climb, you know what i think.

that, my friends, is just a -- >> sell sell sell! >> a trade and nothing more. i would love to be more bullish but i don't want to end up in a situation where people get lulled into buying like they did earlier in the week and then get their heads cut off because of a sharp bond sell-off like we had yesterday. but what happens once loan rates finally do get closer to my target of 6? what happens if we get the crescendo of selling that shows the great give-up is finally upon us, the stocks are about to bottom, like we're seeing, by the way, in some of the mega caps are you ready for that moment? in in business there's nothing better than readiness. having a shopping list of stocks you like that are being dragged down by the broader market makes it much easier to buy when the action's truly terrifying. you make your battle plan away from the action, not in the middle of it what does it mean to be ready during the climb like this let me give you a concrete example and then we'll work backwards and figure out what today's game plan could be so in 1990 iraq invaded kuwait

and our government decided we had to go to war there was a lot of negative sentiment about our ability to defeat the iraqi army and its vaunted republican guard the last war had been vietnam, so people weren't all that sanguine now, i had my army dad who thought this was all ridiculous. but re we respected the market and decided to buy the whoosh bottom that began right before the war began. on january 17th we purchased call options and common stock that probably gave us a leverage ratio of 200%. one month later we were done that's right we made our year made all the money we needed to make we spent the rest of 1921 -- 1991 day trading with about a tenth of our capital and we made some more money trading winners. now, i think right now we're approaching a moment of great opportunity where you could do the same thing but only if you're ready and interest rates have peaked and we're not fighting the fed all those things have to happen. i will stress that to you. i don't care how long and how many times we can't keep fighting the fed

and rates have to top out. what we need to do is go on a hunt now, though, to identify the unfairly punished stocks of companies that reported the biggest earnings beats so far this earnings season that people are already forgetting remember some stocks can avoid the gravitational pull of the bond market but most can't. there's been a ton of collateral damage in this market and you want to search for the likeliest winners if we have another exquisite moment like we had in january of 1991. fortunately we've already heard from a ton of companies this earnings season so we've got a lot to work p. i'm going to give you my favorite six right now for the crescendo sell-off but warning, if amazon's stock really gets clobbered here after tonight i might take one out and put that one in. or maybe i just do kind of a magnificent seven. now, the first is microsoft. this behemoth software company gave you the best quarter of the year by far outstanding results from azure's cloud business microsoft's business caught fire and it will only get better as the pc refresh cycle gets going. one look at the projections coming from the merger of its

gaming operation with activision blizzard tells you that deal's a total home run microsoft's artificial intelligence offering will be launched for everyone next week. productivity dream come true i like that. second, wm the old waste management they reported an astounding set of numbers with jielthic gross margins boost from automation. they're hiring machines, not people that's the key plus wm is a thriving business in recycled natural gas from their landfills. they did all this without having any increase in revenues to speak of when sales come back, holy cow, will things be terrific. third, i know it's hated beyond all recognition but believe it or not, meta platforms actually had an amazing quarter everyone's turned on the stock it's a huge beat one of the largest of this earnings season. yet now its stock trades at an incredibly low price to earnings multiple it trades like a food stock. instagram, fabulous. reels, incredible. whatsapp, arguably worth several hundred billion dollars. reality labs think of it -- well, meta

mentioned ad sales have gotten a little weaker because of the israel-gaza war. as someone who ran an ad-supported website for 25 years i can tell you that ads get pulled whenever something horrific occurs. but the ads come right back once the media moves on, and we always move on and that will happen within i believe this quarter, for the current quarter for meta fourth, procter & gamble is the rare old-fashioned blue chip delivered a solid quarter and even if the economy finally slows down it will keep banging out its numbers. what a terrific choice fifth how about ge this company now has the fastest growing aerospace play and it's about to spin off its power division i never thought i'd have anything it g. to say about that power division but now their windmills are suddenly selling well and it will be profitable i like boeing too. it's cheaper than ge but i think ge's quarter was one of the biggest beats we've had if the stock comes down, pounce. i like when this company helps its clients to on-board

employees and manage tech tickets. but under ceo bill mcdermott it's become much more important. great cybersecurity while finding ways to save money through the use of artificial intelligence i think surface adobe and microsoft are the only worthwhile plays out there because they're making money of course nvidia is too. there will be other stocks worth buying in the eventual crescendo of selling when the bond market peaks, stocks bottom and we're not fighting the fed earnings season is still young but those six are the ones that stick out so far put them on your shopping list and wait until the capitulation gives you much lower price that's are finally competitive with the bond market let's take some calls. let's go to tom in illinois. tom. >> caller: great carnac the magnificent, i need your advice on eli lilly i have a substantial capital gain of six digits i don't know whether to sell some and take it out in this market or let it ride. >> that's a great question look, we have a horrible market,

sir, and i'm never going to fight anyone to take some off the table. we have taken some off the table for our charitable trust we've had a really good run with eli lilly and we felt we were being greedy so i took some off. you should join the club because we've got some really good calls on eli lilly let's go to chris in california. chris. >> caller: hi. >> hey, chris. >> caller: mr. cramer. >> indeed. what's up? >> caller: you are great and i've been watching your tv for many years >> thank you okay >> caller: the question? >> yeah. >> caller: yeah, my question was on macy's. so should i buy more macy's? should i sell -- >> macy "uss a very inexpensive stock, 5.5% yield but later in the show you'll hear i don't think yield's really helping stocks i don't think you're going to get hurt buying a little bit here but it's a retailer and i do not like retailers. i just don't i like to talk to the guys who run retailers. i like retail in a better environment. not fighting the fed when rates keep getting higher. this might not be the crescendo

i want yet but you've got to prepare for when the time comes and have your shopping list ready. i've just given you six good stocks op on "mad money" tonight the auto cohort is concerned about the staying power of evs so i'm getting a read on where demand stapds and what barriers exist to adoption with the ceo of hertz then a shake-up in management is a sign of revaluing a stock. what should you do with a company like dollar general who has its former ceo aback at the helm i'm digging into the company's story and seeing if this is the turning point investors have been waiting for and lifetime's stock got crushed after earnings is it an overreaction in the company that saw a growth in membership and revenue i'm getting to the bottom of it all with the ceo so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer hashtag madtweets. send jim an e-mail to

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not too long ago everybody even tangentially related to the auto industry wanted some connection to electric vehicles. now we're seeing the results and for the most part not that good. this morning we got results from hertz global, the rental car kingpin which invested a lot of monies in evs, now 11% of their fleet. you couldn't tell after the hideous action the stock was down 10% today what went wrong? hertz reported an earnings miss in part because of higher repair costs for its electric vehicles, which weigh on margins didn't matter that demand was good i think it deserves more scrutiny earlier today we spoke with steve sure he is the ceo of hertz global. take a look.

>> mr. schuur, welcome back to "mad money." >> thank you, jim. good to be back with you >> we've got two narratives here let's take the major quarter as i like to call it. revenues in the quarter 2.7 billion. highest quarterly report sounds like travel's very robust why don't you give me the goods before we focus on what a the lo of other people are focusing on? >> of course you're right, jim. 2.7 billion in revenue was the best reported quarterly revenue this company has known it's reflective of stable demand the consumer is traveling. and so demand is there up about 16% sequentially in terms of what we're seeing around volume. equally on price, even more important than the production of days we saw price sequentially up 2%. more importantly, when you pull up the brands what you see is the hertz leisure brand, our premier brand, was up 6% in rate

sequentially and our dollar brand. the valued brand was up about 3% and it just shows you that the hertz brand is commanding of attractive pricing and it's only validating of what we're doing around the brand which is building a better experience for the customer such that we can achieve some price parity with the other value brands that are out there. >> at the same time we obviously have some people would say the elephant in the room you've got an ev issue both in terms of repair but also i would argue maybe there's kind of a ennui, maybe ennui with evs and i thought you could address that because you're a shrewd trader and i didn't think people would see the depreciation in lightning speed, almost like a bad stock, so to speak >> well, i would say, jim, therar some elements to this that are worth talking about first of all, depreciation went up on these cars in part because tesla took price down by about a

third earlier in the year. when you take the msrp, or the cost down on the car, the residual price on that car, that is, what the price is estimated to be at the time you sell the car, that goes down as well. and so you need to make up for time you need to take higher depreciation over a fixed number of months. that's just math that stays with us it's not something we can con control. it's been put upon us obviously by price movement of the cars. like any other trader, jim, i look at this and say on one hand that cost me money on depreciation on the other hand if i'm committed to be a first mover, which i am, i'm a better buyer at lower prices on the forward and i think there's no technology change, evs included, that run a straight line without some hiccups and chajllenges. and that's this. the line from a to b is not always straight. it's not that here depreciation is higher because the msrp came down but we're a better buyer on the forward.

as it relates to damage -- >> right >> go ahead, jim >> is the repair issue -- i was thinking maybe people, first-time buyers, they don't know how to -- they're putting gas looep gasoline in the tank what's happening >> so let's move past depreciation, talk about damage and collision costs. it's both incident and cost. the cost to repair an electric vehicle -- and mind you, these are not only teslas. about 11%, 12% of our fleet is electric about 80% of that is tesla but at the moment the cost of parts and labor to repair damage to a tesla is higher than it is on a combustion engine car that's because the parts supply, the availability of labor is not nearly as robust as it is for a combustion engine car. time will take that down but equally, we are all about lowering the cost, finding opportunity to procure parts cheaper, steeper discounts, repair ourselves

that's the cost side of the equation on the incidents these cars are getting damaged more than combustion engine cars >> i don't get that. >> i don't know that that's about the car. that may be about newer drivers with people with new exposure to electric vehicles. >> that's what i think and it's interesting because you are -- turned out to be a pioneer. i had thought that there was adoption we've all kind of -- many people have driven them and they're a great pleasure i find them easier to drive than a combustion engine. but the one thing i was thinking of, you are a trader if you felt that the evs were going to plummet in price i think you'd just take your first losses and dump them but you're not doing that. >> no. because i think that -- look, we don't mark to market cars like you do financial assets. so there's no daily mark to market on a car. the price differential is expressed through depreciation and that's how it plays. and so the opportunity to dump the car, so to speak, is not really one that's available to

us and frankly speaking not one that i would take. there's positive margin to be had in the existing fleet of cars and we will buy our price down over time as these cars have fallen in price. and by the way, we'll buy more than just teslas much as we will continue to buy tesla, we'll buy gm cars and the like we'll have about 10,000 gm evs in our fleet by the end of the year that's going to grow i would say gm has a very broad, very well-oiled parts supply network that will benefit in how we operate those cars. tesla no doubt will develop that over time. so i'm on the historic and i'm very convicted around being a first mover. remember, jim, being a first mover in evs for us is our ticket to dance around rideshare. it's renting evs into uber and lyft that's a very interesting business it's not substance to sort of the competitive elements that we see in the conventional leisure and corporate business i like where we are.

we've developed a great relationship there that business is up 50% since the beginning of the year. and the ev is our ticket, as i say, to dance in that segment. >> last question i would think of the things you want to buy it would be your common stock your liquidity is much better than the old hertz and i've got to say yes, because of the prurient interest of what may be going on with evs you yourself are getting a chance to buy maybe the cheapest assets you have on your lot, which is your common stock. >> that's absolutely true. the stock price here is quite attractive the return as we see it over the medium to long term is really an attractive one and so you know, we commit our capital to our fleet, to our non-fleet and equally to share repurchase and at these prices that looks like an attractive proposition, and we'll weigh that in the balance of how we invest in the company. >> well, you're a straightforward guy, steve, as you've beenar to many, many years. probably since birth for all i know i know you since you were on goldman.

but i want to thank you for come on our show and telling us the truth about what's going on at hertz because it's a great story in a lot of different ways thank you. >> thanks a lot, jim great to be with you >> that's steve scherr, president and ceo of hertz boy, did he give us a lot to think about. "mad money's" back after the break. >> announcer: coming up, do you know the value of 'dollar? cramer takes a deep dive into dollar general find yourself a good deal. next

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♪ this is a tough time for retail in general, but it's been particularly horrific -- >> the house of pain >> -- for the dollar stores. like everyone else in the industry they've been hit with serious cost inflation, but unlike most of their competitors they have very little ability to pass those costs on to customers. because it flies in the face of their whole business model however, something interesting happened recently with dollar general. after pulling back more than 61%

from its highs last year the stock shot up % when we learned that former ceo ted vossos would be rejoining the company once again as ceo even though they cut their forecast at the same time the stock still roared is this guy really good enough to offset the fact the company's doing quite badly right now? honestly, i think this rebound actually makes sense i'm going to tell you why. first, though, you need to understand what happened on october 12th dollar general slashed its full-year guidance across the board, cutting the high end of their same-store sales and earnings forecasts in particular it was very disappointing. although dollar general shareholders have certainly gotten used to disappointment. that's one-run of the problems >> the house of pain >> this was the third time they cut their forecast since the beginning of the year. that's really pretty horrible. but the stock still rallied because we learned that dollar general had fired relatively new ceo jeff owen who had been on the job less than a year and brought back the predecessor who

ran the company from 2015 to november of last year and was loved. investors often cheer when a ceo with a bad track record gets ousted and since jeff owen took over the stock it had been hammered he had a great story started as a manager in training 30 years ago, worked his way up to chief operating officer then got the ceo job i like stories like that and a lot of the problems were endem toik retail in general not him everybody's had to deal with inflation, everybody's had to deal with rampant theft everybody who caters to poorer customers has to worry about the laelt of the consumer. but given the market's incredibly positive reaction to dollar general's leadership change there's clearly something going on here. i think it's less about what jeff owen did wrong than about what todd vassos did right he joined the dmp 2008 before becoming c.o.o. in 2013, ceo in 2015 during his tenure as ceo dollar general was an incredibly successful company he grew the store count from 10,500 locations, not shabby, to 17,500 locations

annual sales increased by more than 80% most important under his leadership dollar general's market capitalization more than doubled, growing to $58 billion. nice numbers a the lo of that's because vassos had big plans for the chase and was able to execute them flawlessly. frozen and refrigerator business, that's been a real profit center. he expanded the availability of fresh produce, new for dollar general, and created the store within a store concept where they sell seasonal products and home decor most important it was the driving force behind dlash general's expansion into mexico. during his later years the company was winning awards left and right. in 2020 dollar general joined the fortune world's most admired companies list they got recognized by "forbes" for a great response to covid. vasos represents trusted leadership it's a time when the company was truly struggling so what exactly do the buyers think he's going to change this time right now dollar general's facing a litany of woes. very few of them have much to do

with the ceo, who just got fired. poor guy, he got dealt a pretty bad hand at the end of the day this is an incredibly challenging environment for the dollar stores and retail more broadly dollar general, the in-store experience has indeed gotten a lot worse. in large part because we have a serious labor shortage in this country, something that's been especially hard on the service sector i have to tell you in my dollar general there's one guy at the register i'm looking around for anybody else management said they're upping labor investment from 100 million to 150 million to get the stores fully staffed that would be great. but analysts on the call questioned whether an extra 50 million would be enough. it's not the ousted ceo's fault we got hit with a labor shortage in this country, is it but there are also company-specific execution problems for example, dollar general's seeing surprisingly low productivity at its new stores we've seen several different analysts hope the newly restored ted vasos regime will dial back on expansion plans instead they wanted to focus on making existing stores more

profitable this is a very different moment. not only do they have to deal with a lack of workers making the stores more expensive to operate but the expansion is middle management. dollar general's district management used to oversee 15 to 20 locations now they're handling 25 to po in some cases that's too many. that may be another reason for the in-store experience. at the same time some analysts want to see fresh produce rolled out at more locations. seems realistic that was vasos's project initially. i believe in the power of management which is why i wouldn't be surprised at all if a familiar face that has years of experience can help steer the ship back in the right direction. but there are times when no amount of great management can cope with an industry's broader problems we know for a fact that wall street tends to get overexcited about the return of a familiar previously successful face you can argue i didn't make the same mistake when i told you to buy disney when bob iger returned how did that work?

the charitable trust has been hurt by that we tend to underestimate how long it will take them to fix the new problems with disney i'm still confident iger's the right man for the job, but man, it's taken a lot longer than i expected wp with dollar general we know most retailers have been having a miserable time and it's likely to get worse before it gets better the fed won't stop until they finally make real progress slowing the economy and we're definitely not there yet not after the gdp number we saw this morning bottom line i think dollar general could do better than it otherwise would have done now that todd v a. vasos is in the driver's seat. you need to be incredibly patient. put in a small position here and wait for a significant pullback. you'll probably get one. before you buy more. because you know what? this is one awful market let's take calls let's go to charles in idaho charles. >> caller: jim, boo-yah! >> boo-yah, charles. >> caller: and jim, i'm sorry about your phillies. but your eagles are still looking good >> the phillies, it was a

jarring moment let's put it that way. how can i help you >> reporter: jim, i'm understanding brick and mortar type businesses are having issues with the increasing theft rings that are going o'around. >> correct >> caller: i'm just wondering what your thoughts are about home depot going into 2024 are they a buy hold or -- >> i'm never going to tell you when when not to buy home depot because it's incredibly well run and ted decker's doing great i don't like theft i don't like what i saw from whirlpool. i do believe the fed would like to make it so we spend less money on big ticket items. all that cuts against home depot. in favor is a long tradition of making money but that hasn't been working i wish i could do better for you. how about germina in indiana >> caller: yes this is gerima from fort wayne, indiana. boo-yah, mr. cramer. thank you for your guidance. >> how are you >> i'm good. thank you forrer guidance. i wanted to know if target, symbol tgt, is ready to turn

around as it's down around 60% >> i think we have to worry about where's stocks are going, not where they've come from. and as far as i'm concerned no matter how much i like target it is still selling for 14 times earnings and i say still because i think these retailers are going to bottom at lower levels target's up against costco, up against walmart, up against amazon i do like target while i'm hoping todd vasos can right the ship at dollar general investors should be patient. nothing goes like this "mad money" tonight including my exclusive with lifetime. the food stocks that felt the pain from the increased interest in weight loss drugs but how about the gym? a tough quarter that sent the stock lower. then dividends othersed to be the aspect of a stock that would keep people in regardless of the fundamentals but does that change when you have a government treasury with a 5% yield i'm breaking down this new market dynamic and all your calls in tonight's edition of the "lightning round.

so stay with cramer.

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and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy by downloading duckduckgo on all your devices today. what do we do with lifetime group holdings the chain of upscale health clubs 15% yesterday. it reported a quarter that was slightly softer than expected. i mean sales and earning came in a little bit light though not so bad that you'd expect such a huge decline unfortunately revenue guidance for the current quarter came in a little light too and now people are starting to worry but maybe the business -- how does it handle a significant downturn in the economy still that decline yesterday was staggering you've got toe wonder houp of that was just the ugliness of the broader stock market rather than any company specific. closer look. i don't remember if you remember the story, this company was on

our show and then went private and now it's come back public. that's going to be the key he's the ceo of lifetime group holdings welcome back to "mad money." >> thank you, jim. >> reason i started this is because there was a moment when you and i talked when you first went public and you were saying you're not getting credit. but here we are again. you've gone public again and i don't think you're getting credit for the institution that you created. so rather than get caught up in the four walls of the little bit ebidta here, little bit sales, why don't you tell us how you're really doing >> we're doing great our business summarizes into making our members, our customers live happier, healthier lives. and i can honestly say our members have voted with their action and our company is happier and heelter than it's ever been before we recorded arecord for the

company at the end of q3 we have healthier ebidta margins than we had the years before we went -- the years before we went public and before covid came we have higher ebidta plus rent margins. business is strong and since january wove e've takn the guidance and performance of our ebidta from roughly low 400s to north 500s for the year every single time we have had a visit with the street we have raised the guidance on the ebidta, which is important thing. and look, i am seasoned enough, i've been public long enough, i know what's important for the entity itself. we have set sequential goals first was to get all of our members back, or the visits back our dues back. we did all of that get to 500 million of ebidta we did that. and now the most important milestone for the company is what we announced we're going to

be able to achieve a couple of years early, which is be cash flow positive after we spend all the money on all of our growth capital as well as everything else and that we're going to get done as early as middle of second quarter next year. >> i'm glad you put it like that because that's how i remember when we met downtown, you made certain projections to me and you beat those projections so i'm always confused when i see a stock that's lost a huge amount when the man who tells me we're going to do x and then does better than x, that's something i like so let's try to figure out what else might be throwing people off. there are a lot of questions about real estate and sell leasebacks important for people at home to figure out i belong to this club, i love it, maybe i should buy the stock. is that an important part of where you are with sale leasebacks >> yeah. so the strategy of the company on a long-term basis is to be more asset light so sale leaseback makes perfect

sense. then you can get the right cap rates. and in this current environment it is very difficult for most of those types of entities to give you a cap rate now, if you're doing a short-term financing three years, four years, five years, it doesn't matter. but our large facilities are 20 to 25-year original term leases with 25 years of options so if you don't want to take a high cap rate and have bumps for the next 40, 50 years. now, you really would be in trouble -- this is where i think the street is getting it wrong, jim. if you would be in trouble, if you needed that sell leaseback to grow the company, we clearly have explained to the market that we have able to grow the company double digit top line, bottom line, clearly through any economics. macro headwinds, et cetera and do it now with all our own internally generated cash. i have never been happier for

the company itself, and the stock price will take care of itself in time >> the only thing i question is i wonder whether your price point now, say, for a family of three, a middle-class family, could be as much as $300 a month. is that starting to get up there? i'm in the cable business. right? we're certainly seeing a level where you can't pay per month and people are resisting it. is there a resistance to the prices you want to charge? >> yeah. that has been the main question and the reality is we had the clubs figured out with too many memberships in the past. right now what we have is we have a lot more visits per membership let me give you the stats i think you're going to love in the first nine months of 20 -- first nine months of 2023 our visits per memberships are up 24%

the total revenue per membership is up only 28% from 2019 so actual price per visit for our members is up 4% 4% while the accumulated inflation is way more than that. so in fact, lifetime is delivering the best value it has done in the last five, six years right now. >> that's important. now, the other thing i think people don't seem to get, they have all these -- people are talking about the weight reduction drugs. what people don't understand is you've got to work out even harder it loses muscle as well as fat are you noticing people are figuring you don't need to go to a club because people lose weight, they don't understand you can fall apart if you just take the drugs and you don't work out >> yeah, the reality is i was this morning in the club working out with my son and his friend, actually training them at 5:30, 6:00 in the morning. and the clubs are not about just

the workout. if it's all about the weight loss, then you could be somewhat maybe affected temporarily the effect of the weight loss, the science behind it, you're not working out, you're going to lose weight. you're going to lose muscle. you're going to be skinny looking but you're also going to have more issues eventually those customers will come back. for every customer that clubs could lose because they're not going to come in because they can lose a little bit of weight, they're going to pick that customer up for a longer time later. so this is just a wrong assumption i'm not talking about lifetime i'm talking about -- >> people don't understand that. last thing, my wife plays this pickleball she was wanting to buy like a bed bath & beyond because she said we could open six pickleball courts. what is that doing to your business, pickleball >> it's been amazing we have -- actually, we're opening in manhattan by the penn station seven additional courts here in the next three, four months

looking so forward to have you and your wife come and play there. >> i took lessons. i'm not that bad but it's -- for someone my age it doesn't -- i don't feel like i have to ice for five hours after i'm done >> yeah. the much -- as a doubles game for a pickleball court much more lenient on your body than a tennis game would be so it allows people to play at much older time in their life. >> all right well, look, i know what you're doing and i know how well you're doing it i agree with you that enough is enough with these sellers. they should go to one, figure out how great it is. i want to thank you, bah bahram akadi chairman and ceo of lifetime next time we're going back to the club >> sounds good thank you so much, jim >> thank you >> announcer: coming up, cramer takes your calls, and the sky is the limit. it's a fast-fire "lightning round. next

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from a company like humana just might be the answer. it is time it's time for the "lightning round" on cramer's "mad money. buy buy buy -- sell sell sell -- 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." jarvis in south carolina jarvis >> caller: boo-yah, mr. cramer this is jarvis a first-time caller from south carolina >> good to have you on the show. what's going on? >> caller: thank you for everything you tault me in the two-plus years i've been watching >> thank you for watching. that's great >> caller: yeah. that's awesome, man. i've got a 3% position in a stock that's down about 14%.

ticker symbol tost i've got to get your opinion >> can't be that positive on it because i used to be in the restaurant business and i've got to tell you that is what's called football business where we just rip out a toast to put in another guy point of sale is not a good business jim in south carolina. jim! >> caller: boo-yah, jimmy. >> boo-yah, partner. what's going on? >> caller: i'm a little bit confused about cvs has been treated by the market this year. they've embarked on a corporate plan it acquired aetna oak street cigna acquisition. also their foray within the medicare advantage plan in their store which won't be reflected until next year's earnings >> right but remember, cvs in the end is a retailer that has a health care business. it's not a health care business that is a retailer and retail means theft okay i don't know if you've been to a cvs lately but you've got to have like that master key to go get some gillette razor blades that's not my way of shopping.

thomas in georgia. thomas >> caller: hey, jim. i'm bummed to have to let go of my pioneer shares the other week >> we made some good money, though that's what matters. >> caller: absolutely. 25% in what, six months. i'm looking at canadian natural resources as -- >> good company. good company i like that company. i think you've got horse sense i'd be a buyer of that let's go to jonathan in my old home state of pennsylvania jonathan >> caller: boo-yah, jim. >> boo-yah, jonathan >> caller: i have learned the fear of missing out is actually the folks who have not yet joined the investing club have no idea the golden learning opportunity they're missing out on >> thank you thank you very much. we're working pretty darn hard we're working right nowon amazon many, many things that we're learning about what's happening >> caller: thank you for all you do thanks to the club i sold pioneer. cha-ching. and i own coterra. another energy company you don't hear a lot about that looks financially healthy but i'm not sure about, their p/e is very

low at about 5, is sinclair. what are your thoughts >> i looked at that and felt the same way i think that p/e is a red flag i've got so many other good oil companies including coterra which we just bought more of today for the club i'd rather see you in chevron, which is really getting clubbed here how about vikram in maryland >> caller: hey, jim. big fan of yours >> oh, thank you what's going on? >> caller: i want to know your view on the exact science. is it a good investment? >> i think they're going to have to start making a lot more money. it's been a stale story. i like earnings stories right now particularly when it comes to health care i've been clocking some of my old faves like ew. we've got to be careful. let's go to charlie in tennessee. charlie! >> caller: hello, mr. cramer boo-yah. >> boo-yah, charlie. >> caller: appreciate you taking my call. sofi i know you're -- >> i like sofi but remember, it is a bank in the end even though it's a membership bank, and banks are all going back down

again because we're fighting the fed. but i would say stay long sofi and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> announcer: the "lightning round" is sponsored by charles schwab coming up, they put a cushion under your feet. but foot locker's dividend failed to support the stock. a lesson in yield. next

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the hidden trampolines because as stock prices went down their yields would go up making them more attractive and only allowing them to bounce the yields gave you such good return relative to bonds that these beaten down dividend stocks were just too tempting to ignore even if the underlying business wasn't doing that well at that moment but that was then. this is now. dividends are only a trampoline in a low interest rate environment. who cares about getting a 3% to 4% yield from a risky stock no less when you can get 5% risk-free from treasuries? this new normal takes some getting used to. i've been debating whether to add the stock of whirlpool to the bullpen of my charitable trust. i feared if we got a sudden decline in discretionary spending for washing machines whirlpool's 5% dividend yield would serve as a bridge until things got better. they'd be paying to wait for a turn that made a ton of sense when long-term rates were 3 1/2%. but with long rates at 5 whirlpool can't offset the risk. we may scoff at the notion of the full faith and credit of the

government but america's still the wealthiest and most powerful country on earth meanwhile whirlpool crashed. after management acknowledged consumers are pushing back on discretionary purchases. when times get tough it looks like both customers in europe and asia take a breather from buying washing machines too. we saw the same thing with the stock of bristol-myers a company i used to joke about because it was solid as the rock of gibraltar. now bristol-myers seems to have lost its way sales declining precipitously normally i'd say new products delayed no problem bristol-myers has 4% yield but i don't want to hold it. not anymore. they're paying you to with wait. see, today the stock plunged 5% because that 4% yield is nothing next to the risk-free 5% you get from treasuries. and there was a time about 15 points ago when it seemed like ups couldn't possibly go lower here you have an iconic american company that had a 4% yield and a new contract with the teamsters union, took out a costly strike with cable, just right away but this morning ups forecasted

some really nasty numbers. the stock got clobbered and now it queelds 4.7% which is neither here nor there will there be protection at 5% i don't think so the dividend trampoline can still come into play but only if we're rewarded instantly with better earnings and even then it doesn't stop a stock from going lower. when you think it would. verizon had a 5% yield would stop nothing then 6% also did nothing even when the yield got to 7% it created -- but when verizon's stock fell enough that its yield was 8% and its cash flow started improving, that and only that was when you got a fantastic bounce i think there's more room to run because many people were worried about the viability of the dividend and the way i see it those worries have now been put in the past in the end dividends don't ever much protection in times like these. i know from painful experience we bought the stock of foot locker for the charitable trust. when they brought in mary dillon as the new ceo i knew the near term would be tough. but with foot locker's yield getting close to 5% i figured it would put a floor underneath it. bad judgment by me

it didn't save us. because foot locker suspended its dividend the trampoline got pulled. and the stock fell from the 40s to the low 20s the moral of the story you want yield go buy a bond. i like to say there's always a bull market somewhere and i promise to try to find it for you right here oncramer. see you tomorrow "last call" starts now \s even contessa brewer in for brian sullivan right now on "last call", the not so magnificent seven the markets as biggest players, dan nile is here on what comes next ford hits the break. can the new deal lift i fortune? we have the reaction should strikers get unemployment benefits? a controversial bill in congress gains momentum a wild day in cord for sam bankman-fried, setting t