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tv   Mad Money  CNBC  October 23, 2024 6:00pm-7:00pm EDT

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gentlemen that says they tape the show every day -- >> you've said worse things than redhead. >> you meant hat >> where your head a'st. >> walmart, 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." my friends, i'm just trying to make you some money. my job is not just to entertain but to explain. so call me 1-800-743-cnbc or tweet me @jimcramer. when the s&p goes up for
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six weeks the market can go down. it can selloffs. pretty shocking, i know. today i heard endless chatter about the death of the bull market because of the overwhelming selling from the get-go. the yield and the treasury has soared over the past month shooting up 4.42% including today. one of the averages got hammered. dow sitting down 410 points. the nasdaq plummeted 1.6. believe it or not, that's much better than where the market was at the lows of the day. even worse, the stocks that led the decline is leaders. apple, nvidia, so many with big gains, i don't know what to say. this is the end. my only friend. at the end of our elaborate plans. the end of everything that stands. the end.
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i used to write obituaries for a living. i know what it looks like. cart before the horse, i forgot to say market is in trouble. you can't have an end before a titanic selloff. titanic be in the operating term. enough of the bogus to exaggeration. let me put this in perspective. when you get many updates, the market is prone to pullbacks, often indiscriminate like some we saw today. you know i'm an inveterate gardener. i know we need a lot of son for tomatoes to come up. i like the sauce with the plum . you know what is really a killer? no rain. if we don't get rain we might as well be trying to grow tomatoes in death valley. the sell off is like rain. it's a necessity and inevitability. but what happens when it rains? we act like cats. we get scared. we are afraid to go outside.
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scaredy cats. newsflash. you and i are not cats. i used to have six of them. this kind of rain like pullback it gives the bears all the ammunition you need for the nightmares. the only thing that surprised me today was no commentator invoked any of these dates when they were trying to scare the heck out of us. isn't the bond market terrifying? 4.2% on the 10 year. that has to be a bulk on the head of the bull. maybe october 24 and 25th will be more were stories as we fit the newfound turmoil. on the eve of halloween let me give you little casper the friendly ghost narrative. take us out of the twilight
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zone. first of all, the stuff about the 4.2% that young people talk about every minute. like scooby zero -- deal. i started this 40 years ago. the building has now turned the average started 1072. this 4.2% until july of 2002. the dow jones industrial average went to 9000. down 1000 to down 9000. it was always above that. mostly well above that. we ran an incredible bull market almost the entire time. i hope that gives you some perspective of the bond market versus the
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bull market. it was substantially higher rates than we have right now. in absolute terms, that is low rates. nothing. tech and stocks have made so many parabolic moves i'm actually glad they are coming down. i was getting tired of saying you need to wait for a pullback. now that we are getting the pullback should i tell you to stay indoors? still i wonder, who can stop the rain? isn't it about time we had a reprieve from all of this buying? stocks cannot forever go up in a straight line. apple was at 165 in april. it ran to 236. it was due for a pullback especially as we heard about tepid numbers for the iphone 16. is the iphone 16 still revelatory? nvidia was $43 a year ago. now it is 143.
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is in it do for a pullback? from mid july to early august it fell from 134 to 98. then it shot back up to 130 before plunging in december. both times we read the obituaries with feelings and wakes glory. they must have been prepared like those. everything but the funeral parlor was listed. nvidia is still at 139 and change. has something gone wrong? of course not. the greatest stock of this generation is taking a periodic break like we've seen many times before. even secretariat lost in the whitney. i don't even know any of those losing horses. some stocks have been so strong it takes a true horror like an e. coli outbreak to stop the run. that's what happened to
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mcdonald's which has been straight up since it unveiled the five dollar burger. today the golden arches got crushed down only -- almost $25 on the e. coli outbreak. 49 people sick, one fatality, 10 states, may have been the onions. even then they managed to rebound finishing down just $16. how about starbucks? they announced an even worse loss than we expected. something that may be the benchmark for the bad news. the stock got crushed last night and initially this morning following all the way from 96 to 93. even then it bounced back and finished the day in the black. that's right, it finished up. you know what i'm trying to say. when i was a reporter it was my job to scare you. to scare people. to scare readers. we had real bad circulation numbers. the afternoon paper, not a lot
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of those still around competing with the all-powerful los angeles times. my marching orders, frighten people out of their weights. become indispensable he scary. sell subscriptions. always be mindful that people don't like and -- buy subscriptions if the news is constructed. back then i played for dinner so i could not stem the destruction and death that appeared by my byline. now, now i have a different agenda. my agenda is nothing other than to try to help you make honey, being constructive, being opportunistic. >> it has been pretty darn fabulous since i got in. nothing really has changed. let me give you the bottom line. it's going to rain a bit. those stocks that i told you to wait for the selloff, here it is. no one knows how long it will last so don't miss it. it may be back to full price in
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a day, a week, or two. unless you are a cat. i would advise you to stay in florida. let's go to joel in florida. >> hi, jim. i work as an i.t. technician. i'm always looking at stocks and learning how it works. i figured i would talk to a pro. my business is revelation technology. i've been looking into intel. what do you make of that? >> for the longest time i would have told you to please don't look. the stock has come down enough that i have to tell you, i'm not going to fight the tide anymore. i got people out about 30 or 40 points ago. i'm done. i think it is not a great stock but i'm not going to tell you to sell it. don't get scared out of buying stocks at lower prices. we've been waiting for the selloff? maybe you should take advantage
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of it. it has been a tough year for etsy and i'm seeing if there's an opportunity for a better quarter. i'm sitting down with the ceo at the very cute pop up store in new york city. and then mattel have their earnings. sit down with the ceo. you need a diversified portfolio that can handle whatever the market throws at it. that's why we are playing am i diversified. stay with cramer. don't miss a second of mad money. follow @jimcramer on x. have a question? tweet cramer. send an email to madmoney@cnbc.com. or give us a call 1-800-743- cnbc. miss something? head to madmoney.cnbc.com.
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it has been a tough year for etsy. the stock is down nearly 40%. this quarter was poorly perceived. with the merchandise for the third quarter came in weaker than expected. we have to ask ourselves, could this be a buying opportunity? maybe it is too soon to bed on a term. we checked in with the ceo at the limited time holiday pop up event in new york city for more about how they are trying to reinvigorate the platform. take a look. you know i have been a close follower, but i'm blown away by where we are. please tell us what this is. >> this is a pop up so people
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can walk in the space and experience it. just people from around new york to see the gorgeous and are two central products available. >> when i see this i think i want to get into the gifting mode. we do have some hesitant to gift. >> a lot of men feel not confident to give gifts. 75% of men said they don't feel confident gifting but 90% of female partner said they don't feel confident in the men partner. not only don't we feel confident that we should feel confident. that's where etsy can step in. we have the power of gen a.i. to come up with the perfect gift for you to gave. we think it is a great way to take stress out and there's a way to find the perfect thing to express your sense of identity. >> given the fact that you call
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it the snowflake affect there should be something for everyone. >> something really unique that says i get you and i understand. just tell us one thing about someone like their partner loves mosquito and we can find the perfect for gift. >> there been so many changes, it is really helpful for gifting. >> the whole world is going to how do i put things on sale. we are looking into what makes etsy etsy. how do we help you find the very best. we have revamped the way the search engine work so we not only consider what product is somebody most likely to buy, but what is most likely to result in the amazing purchase experience. the way that sellers can earn more prominences by making sure they always ship on time, always get five-star reviews. it is making sure we always match buyers with the perfect
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thing. >> just going around the pop up store, i'm amazed to see what i can get versus what i thought. >> there is so much diversity. we used a combination of external experts like naomi osaka and drew barrymore to help select there's. we had their own internal experts and we actually used the community. we had the whole community vote on some of their favorites. >> let's talk about the stock. there has been an incredible surge. i think it is quite extraordinary you basically kept all those people. it has not been enough for wall street. they want to see the gross merchandise go up, but they don't seem to realize that you are addressing this issue. >> first, we have 91 million active buyers around the world.
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we are about where we were at the very peak of covid. tens of millions of people came for the first time. that is billions of dollars of sales with things like masks in order to stay roughly flat. we think we can grow and be much bigger than we are today by not only finding the thing you want and can't find anywhere else, but also to be a source of inspiration so we are really leaning into making more available to surprise and delight you. >> were you surprised of the adoption of what i regarded to be a crackerjack mobile experience? it's not necessarily what people now. >> the app is the best place to
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experience it. we want to drive more people to use the app. we know when somebody starts using the app the value goes up about 75%. we are investing more in driving people and helping them to understand they should adopt the app. >> we have one store here that is beautiful, it's in a terrific neighborhood. do you need to replicate this and other cities? it is really a showcase. >> it is really cool to be able to walk in and experience it in person but it's not our expectation to go to retail. we think the online model is amazing. everyone in the world can access etsy from their mobile phone. we have a very capital light model which we love. >> do you think people realize that you are the second most popular e-commerce site after amazon? >> i do not think they do. for pure play e-commerce only amazon has more active buyers.
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we think the more the world consolidates around commoditized commerce, the more they will crave an alternative. we think etsy is best positioned to be that alternative. >> we are at a time where people seem inclined to buy something from temu or shein. i got some for my wife and waste management was the one that benefited. >> it's about price but also what am i getting for it. last year we built a lot of tools so sellers can get things on sale. that is the table stakes and they are doing that. you can find great value but we are also leaning into the other side of value that it's made just for you. it is handcrafted and comes with the story. we make sure we are on both sides of value to tell you why etsy is different and better.
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>> my wife's birthday is next week. one of the things that is incredible is that i was so concerned about what if i get something today and miss her birthday. you are offered the alternative of a couple days and it's not ready yet but you can bag on it. >> we have launched two features. in addition to helping you find the perfect gift we have lunch lists that will remind you that her birthday is coming up and things you've been thinking about, we have also launched the gift teaser. let's say your wife's birthday is tomorrow. you can get her a gift today. she can get a gift teaser tomorrow. you can record your voice sending her a message and it will arrive in a few days. she knows she got the message from you on the day and the gift arrives a few days later. >> we have people that are resident trend experts. i get lost because there's 120 million things that if i find
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people i like and follow that could be a way to access things for people that have no concept of gifting. >> leveraging the power of the community. the amazing curators that had their sense of style. you can follow their collections and that can be a way to navigate. >> i think a lot of people feel a.i. is overly used but you are probably the site that we most need it for. >> we are leveraging a.i. in many parts of the site. i think etsy has more to gain than maybe almost anyone. sorting through 120 million items to find exactly the right thing is hard. we are leveraging a.i. to become superhuman and combine humans with machines to get you the perfect item and also make sure customer support goes quickly and you get a seamless shopping experience. >> one last thing that does trouble me is something i
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discussed with my wife and my kids. they say, who cares about the stock. it's a great site. i come back and say, unfortunately my job is also to care about the stock. how do you reconcile because you know the stock was taken out of the s&p but the company keeps getting better and better? >> it is our job to make an amazing customer experience that delights buyers and sellers, grows the business and results in more revenue, sales, profit for the shareholders to make the business bigger and better. i think we've done more to make the business better this year than in any of my eight years of tenure. i'm incredibly proud of the work the team has done. customer perception will catch up and the market will catch up. >> if that is the case the numbers will go up. the word has to get out. the pop up may help get the work
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the word to come out because it's pretty amazing to think this can all be available. >> the shopping experience is markedly better than it was even six months ago. we just need customer perception to catch up. >> i could not agree more. that is josh silverman the etsy ceo. thank you very much. coming up, the market is not only fun and games. cramer is finding out if this toy giant can bring the profits to playtime. cramer has an exclusive with the ceo of mattel, next.
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betmgm. download and bet today. what do we make of these results from mattel. this toy maker struggled in recent years despite getting a lift from the barbie movie. unfortunately the whole category has been in a rut. tonight mattel reported what some would say is a missed quarter. a slight revenue miss the great gross margins which translate to a 19 earnings beat. unfortunately i'm not sure how much credit they will get because management only tweak the full year forecast around the edges lowering the revenue raising the gross margin and leaving guidance unchanged. and a complicated quarter like this need to be sure we are
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getting the full picture so let's take a closer look with ynon kreiz, the ceo. welcome to mad money. >> it is great to be with you again. >> when somebody comes on and tells me they will get better with great free cash flow and gross margins and that's exactly what you did. please explain why profitability and free cash flow are so important emphasize perhaps more than the revenue numbers. >> the priority for the quarter was to grow profitability, expand gross margin and generate significant cash flow. the highlight of the quarter was very strong gross margin expansion, fully offsetting the barbie movie comparison in the bottom line relative to the prior year. also important to note is that free cash flow is up nearly 50% in 12 months as we continue to strengthen our balance sheet. we look forward to a good holiday season and expect to
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grow in the fourth quarter and gain share. >> if that is the case you were a little bit conservative in the outlook because you had terrific earnings-per-share. i know you could have raised at my but it's not something i would do into a holiday season but you are optimistic. why not take up the guidance a little further? >> we still expect growth in adjusted ebitda, eps and $500 million in cash flow for the year. we expect the gross margin to be higher by 200 asis points and reach 50%, slightly offset by potential decline in the top line. this is the guidance for the year. strong performance in a great place for the company to continue for the growth. >> so you brought the nine month total. some could say why don't they blow out the revenue. i agree with you because the old
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mattel tried to do that and i did not work. the new mattel is going for profitability. what is the plan for allocation. >> we've done a good job and continue to strengthen our position and balance sheet, generate more cash. we did purchase $268 million of share in the last nine months. we have over $730 million of remaining and we expect to continue share repurchases. >> one of the things i'm excited about. it still the hottest thing in the world. you have a partnership. you already have unbelievable ip . do you think formula one will make it so this is by far? could it rivaled barbie? it could talk barbie if it is done right. >> hot wheels has been on an incredible run. it's up double digit and on
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track to achieve its seventh consecutive record. it's the number one brand in the category. formula one partnership is another example how we continue to grow in the brand, reach more fans and continue to excite and delight fans everywhere. don't forget the hot wheels movie we are developing with jj abrams. many exciting opportunities for hot wheels and the vehicle category as a whole. >> what would make it so that you have sustainable quarter stuff. so we can see higher revenues and better earnings. >> this is a growth industry.
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the toy industry has grown 23 of the past 25 years. a continue to perform better than initially expected at the start of the year even though we expect a slight decline in 2024. beyond 2024 we believe trends will further improve than the industry will return to growth and continue to grow over the long-term. motel is very well positioned in the industry. we expect to gain market share and continue to grow the toy business and expand the entertainment offering outside of the toy aisle. this is exactly what we are doing. we are progressing our strategy. we have been tracking the journey to continue to improve and strengthen the business. we are excited about the long- term growth prospects of the company. >> when the prospects were very low and you tell me not is not
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until we fix the balance sheet will be pound the table. i have to ask, what makes you optimistic. i get this negative feeling from people about the economy, pessimism. you are presenting a positive story. >> we are very well positioned as a company. we have a lineup of innovative products, new segments, new launches, a range of play patterns and price points. we expect a good holiday season with support, greater representation across major holiday catalogs, increased marketing and promotion. we expect the fourth quarter to grow both in the quarter and the full year. >> are you happy with the barbie movie? i feel like that's all we talked about. you never said it would be the
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blowout earning. you said it would be terrific long-term. is a good to be passed that? >> we continue to build the company across multiple verticals. we recently announced that masters of the universe which we are releasing in 2026 is in preproduction. we just greenlight matchbox in partnership with sky dance for apple. we announced another partnership with viewmaster. we continue to grow the film slate. we have 17 pictures in development that we've announced . of course, we continue to grow the business outside of the toy aisle in television, location-based entertainment, digital and other verticals that are driven by big brands, big franchises. this is exactly where the strength of the portfolio will come into play.
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>> you said you were going to do what you did and to be that. i want to thank you, ynon kreiz, the ceo of mattel. >> thank you. mad money is back after the break. coming up, cramer is always on the lookout for a bull market somewhere. on days like today is your portfolio prepared for when the bears lead the charge? cramer plays a gain of, am i diversified? make sure you are ready next. it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?!
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(man) look at this silly little sailboat... these men of means with their silver spoons,♪♪ eating up the financial favors of the 1%. what would become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash, unlimited deposit bonuses and handsome retirement matching? they would descend into chaos. merciless chaos.
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stocks got hit pretty much
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across the board today. you need to be prepared for whatever might come next. tonight we are playing, am i diversified? you call me and tell me your top five stocks and i tell you if you are diversified. first up we have jian in florida. >> booyah, jim. my grandson is here. his birthday today he has a question for you. >> hey, jim. booyah. >> booyah. how are you? >> my stocks are eli lilly, costco, apple, dupont, eaton. >> you have eli lilly one of the premier stocks of the era. we like these guys because they
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have been at the forefront. dupont is splitting into three companies run by a terrific group of people. that will bring more value than they have now. costco, we are learning they may be having a netflix moment. they will really start checking cards and cracking down on passwords. apple, own it don't trade it. we have tech, retail, diversified manufacturer, company splitting into three and a drug company. you are person -- perfectly diversified. thank you. you rock. what can i say? you have four cents. let's go to tony also from florida. >> i want to thank you for doing this type of thing, diversified. a lot of us don't have stock in the club but it really help us us out. >> i'm so glad you mentioned that.
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i want the club specifically to be teaching so people's pick their own stocks. i can't keep track of all of them. let's go to work. >> my first one is with a.i., probably dell. the next one is pfizer, then we have amd, home depot, then we have constellation brands. >> i do think we have a little bit of an overlap. we have home depot. amd, diversified semi conductor. pfizer, a drug company that yields more than 5%. this is the problem. dell and amd do trade together. constellation brands. those are trust companies. terrific beer company trying to get out of the wine and spirit. what do we do about this
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overlap? i suggest when i look at this let's go back to what we just mentioned. we said it in is a good company. we could get eaten right here. we could take out dell. we need to get diversified because we can't have two to trade together because we do have a retailer, drug company and this will be addressed and then the portfolio will be excellent. let's go to dave in alabama. >> greetings from southern alabama. >> fantastic. >> since i retired recently i have been rebalancing my portfolio. for dividend stocks. my top choices are cat, raytheon, j.p. morgan, ford, and pepsi. >> that is a really interesting
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portfolio. these, pepsico, good quarter. i do prefer coca-cola but i like the diversification because pepsi has soft drinks and snacks. ford is not as good as gm but it is diversified. rtx the monster quarter yesterday and candor morgan with an amazing comeback. we have a pipeline, defense and aerospace, auto, machinery, soft drink and snack. perfect. there is nothing that needs to be done. it is the essence of diversification. by the way, i miss rtx. i should have had that one for the trust. it's doing incredibly well. coming up, lightning doesn't just died -- strike twice in "cramerica."
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it strikes every day. cramer is back in a flash with your questions next.
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(man) these men of means with their silver spoons. what will become of them when they discover robinhood gold allows others to earn their very liberal rates on idle cash. they would descend into chaos.
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lightning round is sponsored by charles schwab, trade brilliantly. it is time for the lightning round. buy, buy, buy, sell, sell, sell, then you hear the sound and the lightning round is over. >> i bought this u.s. oil producer. it's up 22%. i sold seven and half % yesterday. buy, sell, or hold viper energy? >> that is one of the best yielding companies so i think you could own it. it's 5% yield and it does have the money to pay for that. i would say you are okay. let's go to dennis in north carolina. >> booyah from wilmington. >> excellent. thank you. >> the other morning you
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suggested looking at big companies that are be down. that being said is it time to back the truck up and loan up on nextracker. >> i made a mistake. that will not do well if kamala harris does not win. i told people not to buy. i wish i had never had the story. i made that mistake. i am holding for maybe a balance and that it is just goodbye. let's go to denise and new york. >> hey, jim. i'm denise and it's my first time. i was watching you for a year so i'm going to try to think. i have a question, this was about president trump's stock, dj t. how do you think that is
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going? >> i want so much to be better at that one. that's what i call an okay company. there's just not enough information. no analysts, no coverage. i cannot get a bead on it. let's go to richmond virginia. >> booyah, jim. thanks for all you do for our club members and all investors. >> how can i help you? >> i'm late to the party. it's up 50% that it's off about 7%, is it a good time to jump for eli lilly. >> i would not get it at this level. i would wait for a pullback. we get them in the best of all stocks. nvidia, apple, we might get one lillian then i will tell you to pull the trigger. rodney in texas. >> booyah, jim. i have about 100 shares of dutch brothers. what do you think i should do?
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>> i like the situation. i think christine baran who's been on the show tells a good story. they are not being reckless anymore. that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by charles schwab. coming up, is it time to ready the landing gear and get out of boeing ? cramer is revealing what it will take to get the stock back on the right flightpath, next.
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♪ i'm gonna hold you forever... ♪ ♪ i'll be there... ♪ ♪ you don't... ♪ ♪ you don't have to worry... ♪
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surprise surprise. boeing reported horrible numbers. they have the machinist strike and they seem to have forgotten how to build planes. it's a nightmare. be sure to buy as much as you can when they shore up the balance sheet and ensure survival. that's right, a horrendous quarter. try to buy on weakness. welcome to the world as a duopoly. the worse the financials might be the better the buy because as soon as the strike is over and they raise some money they
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will be back on the road to profitability. the company is an awful shape but only two companies honor can make commercial aircraft. the demand for planes is off the charts. they will be fine once they raise the cash. most shareholders speaking boeing and expletives but then when this is done they will be speaking in superlatives like the new ceo used to describe the half trillion dollars worth of orders thanks to the insatiable demand for travel. what do i think of boeing the company? it's a colossal disaster with a sense of entitlement and arrogance. long gone are the days when my father would cheer when he saw the b-29 in the sk . there is a generation of people who think that boeing is
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a laughingstock. the fact is it can be fixed. the company does need to get out of what i call extraneous product lines like the space business which i was once told was superior to elon musk. they have to get back to the basics, building the best aircraft and it can do that if they can close out what is losing money and get the machinists back with maximum supervision it will have enough orders to feast on for years. that's why it can spring back. you wait until they do the secondary i give you the buying opportunity. if they get enough money it won't be downgraded and it can live to play again. how can they be sure? the syndicate matters. you need to price it what is known as deep in the hole at a big discount. the stock went out at 157 today. the deal will be vastly oversubscribed at a larger
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price meaning they will be putting in for much more that will be made available because it will be done. it's a sizable discount to where it closes the night before. this means they will get the allocation at bargain basement prices. otherwise it will be too small to matter. if you can't in on the deal we need to try to find out where it comes and put in limit orders slightly above the price in the open market to get the stock. more expensive than the actual stock but less than where it was headed once the balance sheet risk is off the table. asml is a gem. i've been to the world war ii museum in new orleans many times. much of it is a tribute to the aircraft. can it come back? of course. that's because there are only two major air companies on earth and the other being airbus. try to get some stock when this
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ne'er-do-well company, when it comes they will no longer be a ne'er-do-well. once the strike is settled it is strong demand and not enough supply. that is always a great place for business to be. there's always a bull market somewhere. i'm jim cramer, see you tomorrow. joins the tank. i always look for stuff that is breaking the mold of what's out there today. so we are a little more expensive. i'm gonna go out! it drives me bonkers. you want a participation trophy. what we have here is not yet a business. i have put my blood, sweat, and tears into this. i love these guys! oza: i'd like to give you an offer, but you may not like it. ♪♪ narrator: first into the tank is a product to help you survive the most crucial hours of an emergency.

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