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tv   Mad Money  CNBC  July 11, 2019 6:00pm-7:01pm EDT

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>> we should hug now. >> all get out. >> a "fast money" hug. >> i could use a hug. >> guy >> wrap it up. >> a lot of people say i'm square, but they're right and this stock is going higher, mel. >> that does it for us see you back here tomorrow at 5:00 more "fast money". my in addition 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 i don't want to make friends, i want to make you money my job is to entertain and also teach. call me or tweet me at jim cramer you know what i thought today as the dow gained 228 points bursting through the 27,000
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level, i was president thinking about the fed like everybody else i was thinking that stel, yes, stel is a wonderful thing. >> hallelujah. >> what do i mean by scale a company with scale is a company that's big enough and powerful enough to control its own destiny. a company that scales is one that survives and then thrives in even the toughest environment that a fed chief is worried about or anybody else. just listen to nothing but washington scale, scale simply being bigger than the other guy, a lot bigger is an enormous advantage we saw the benefits play out today. exhibit a, amazon. it crossed the trillion dollar threshold this morning amazon didn't become this unstoppable behemoth because jeff bezos is brilliant, which he is. it got here by leveraging scale.
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amazon is dominant because it's so big they use that scale to get better price from the suppliers to pass on to you. we have antitrust law because when you get big enough, well, no one can compete against you bezos saw how he could use amazon's scale to dominate retail he didn't stop there he figured he could do the same thing by creating cloud computing. aws one of the largest businesses growing at a 40% clip we had the head on the show recently, he told us how the position scaled which is the dominant player in the cloud which is true. it allows them to innovate and keep prices down and compete with the competition i urge you to look at that interview. i thought it was mind blowing. i thought to myself, darn it, that guy is real smart amazon also knows the secret to maintaining scale is keeping work force happy that is why bezos is committing $700 million to retraining workers so they can thrive in this new economy, whether they stay in amazon or
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leave for other opportunities. please read that press release it's much more than just blather. it came out this morning you can't win without human capital. while that is an extremely creepy phrase it's still true. who else benefits from scale how about the silent trillion air? how about microsoft. they put out a buy recommendation titled the framework for microsoft's next 100 billion in revenues. when i looked at it i said, oh, 100 million. so what -- no, 100 billion something will happen by fiscal year 2025. that's not that far from now i'm using this one right now i switch all the time. i use that one, too. and then this is my wife's favorite talk about apropos of nothing. anyway, most companies never get to 1 billion in revenues here cowan is talking about how microsoft can almost double this year's projected 124 billion in revenues in six years' time. it was an astonishing read, and i think it was right
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why? because microsoft is going to rival amazon in the cloud with azure, its own web services business microsoft ceo has put together a power house cloud division growing so fast it will soon become, a, a larger part of the company even than microsoft office it will account for 90% of the next $100 billion in sales guys, come on. i know this stock has moved up tremendously >> hallelujah. >> i know it could give up a couple points this week, but you don't get to trillion dollars for doing nothing. at the moment only microsoft has the scale to compete with amazon many companies including large retailer, though, that refuses to do business with amazon web services, given that amazon is their mortal enemy now, one of the biggest beneficiaries of scale benefits of scale is it keeps your suppliers in check
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that keeps your gross margins up and makes it so we like the stock more that's the main reason i've created a brand-new acronym for the very few retailers that have enough scale to control over their costs and therefore their destiny. yep, i'm talking about watch, w., amazon, target, costco, and home depot watch, i'll bring you something that is easy to understand how dominant amazon web services you know it powers amazon prime. it helps them predict what you want before you know it yourself it's hard to get your head around microsoft's azure because it's not oriented around the consumer it's a business product. but you all know w.a.t.c.h you all know it. you probably all like them so how do these companies maintain scale when most brick and mortar seem to be wilting? they change their stripes, they make ways to grow every day. they're brilliant. let me walk you through them
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i'll start with walmart. they didn't have an online presence they paid their workers too little and that wouldn't keep them there very lopping. it was suboptimal. walmart changed that they have a fantastic web business that will only get berer now that mark laurie is on jet.com. they pay people more allowing them to hold onto the best workers and that made they are stores clienter, brighter and more fun yes, fun best of all, walmart can negotiate prices with any supplier once because they can't afford not to sell into walmart's channel. which is why i say that's how you can buy french's mustard for $1 i got a picture to prove it. that's really bad for their supply chain, but oh, my is it ever great for their shareholders this is a good stock a, i am actually going to resist the urge to say more, other than next week's amazon prime day which is two days and i can't
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wait the t, t is for target i don't think people realize how much ceo brian cornell did to reinvent this company unless you've been to target lately i went to the one in my home the other day, one of many all over the country with new stores. i can tell you the combination of shift, s.h.i.f.t., kale university target is owning new metropolitan areas everyone else had given up on foolishly. he's a visionary they only have 30 million customers, walmart has ten times that worldwide you could argue that means the company is too small to be in this illustrious group given how fast target's grown, you won't feel that way. don't under estimate their e-commerce business now, stock to own c. stands for costco when you have about 83 million people who pay to be members of your buying club, you've got an
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amazing business costco is my favorite club even more than the summit elks they can raise the price of the cart as they have several times and i wouldn't even care that is a of how much money i save i'm jealous my wife is an executive member and i'm only a pleeb. the wife takes a cart and i take the other. i know i'm getting the lowest price of everything i buy that i have seen zania shirts at costco that cost less than what other merchants pay for them wholesale. these people are magicians finally the h., home depot close followers of my outrageous twitter feed except when i'm featuring nvidia, iknow i didn't initially include the h. when i was noodling on my acronym. you might think i only added the despot because watch sounds better than wa home depot is selling merchandise quickly which is a dream come true for suppliers.
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a lot of them get terrific deals. if you're a tool or garden company and you don't sell at home depot, you are dead enough said. they can make or break anybody now, is it right that we have a handful of gigantic retailers that can bully their suppliers into giving them better deals? is it anticompetitive? that's not my department you think i'm here to run the justice department i'm here to help you identify quality stocks, like w.a.t.c.h you as an investor need to realize which businesses can scale because those are the ones that win like amazon, like microsoft, like w.a.t.c.h. oh, and just wait until those etf demons take my beautiful lovable acronym and create a security to profit from it they did it with f.a.n.g they'll do it with w.a.t.c.h sherri in new jersey, sherri caller: hey, jim, booyah >> booyah, sherri, what's shaking? is caller: my question is regarding twitter.
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it has fallen from its high of 41 down to 34.5 and now went back up to 37. my question is given the macro scrutiny on social media staff and the company outlook, do you think it's worth to keep this or to sell it >> i want you to own it. i think the quarter is going to be okay. the stock has been a bit of a football siegl has been going around telling decent things. here's the problem with twitter as i see it. everybody thinks because the president uses it all the time it's a good stock. that's an interesting but not correct analysis how about john, j-o-n, not j-o-h-n in new york. jon. caller: thanks for taking my call >> my pleasure caller: my question is about blackberry the stock has taken a beating recently even though it's positioned for excellent growth now that they've managed to transition from the hardware into the software business using their artificial intelligence cyber
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security, comparable to crowd strikes, they're qnx security platform for self-driving vehicles, asset tracking service and position in the i.o.t. security markets to name a few, is blackberry a buy? >> i have been hearing that, very well analyzed in the meantime, so many other better companies, you know, like a z-scale or zen desk. and on and on, i could go on about these. they all have better software, and they've got more than these guys all right. it's all about scale, people scale. scale. remember that word it's about which businesses can scale. w.a.t.c.h. watch out for walmart, for amazon, target, costco and home depot. on "mad money" today, is it return to sender when it comes to fedex i'm behind the company's potential for turn around to see
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if they can start delivery profits once again if there are plenty headlines in the cannabis space, am i in the buds and the duds in the cohort? and telling you which plays could be worth -- are you growing exports of us lng? natural gas price, do they help or do they make money with it? i know who makes money don't miss my sit-down with sharif "mr. cash flow" suge and stay with w.a.t.c.h. and stay with cramer. >> announcer: don't miss a second of "mad money." follow at jim cramer on twitter. have a question? tweet cramer #mad tweets. send jim an email to madmoney@cnbc.com. or give us a call at
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1-800-743-cnbc miss something in head to "mad money".cnbc.com. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
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we like drip coffee, layovers- at fidelity -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. want to know why j. pal feels comfortable talking about
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rate cuts even though the stock market screams highs and the dow is saying, wow, is he crazy to do this? i say just look at the transports the group is down nearly 11% from the september high. the transports are the backbone of the economy when the stocks are getting hammered it is often a sign we are headed into a slow down and within this group we can't take our eyes off of fedex the shipping company has become the punching bag over the past few months, down 20% from the high in april. at its peak fedex was trading at $259 it's now $162. it's been a brutal decline but pretty much what do you expect when there's a down tick in worldwide commerce like j. pal has been talking about fedex has been around a long time and always seems to bounce back from periods of weakness. while it is a sickly cal company, it's a well-run
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cyclical when the global economy turns, fedex will turn were it, too, and smarter than it does, smarter than everybody that's why you hear so many commentators trying to call the bottom of this thing whenever it's down. can be a rocket ship every time it tries to mount a comeback, the stock finds itself in the doghouse. so what do we do what do we have to see before fedex can give us a sustainable rally? >> buy, buy, buy, buy. >> first you didn't know where the stock was coming from. the recent trouble for fedex started last summer when the company reported a mixed quarter with not so hot guidance for fiscal 2019. although at that point wall street was more concerned with the size of the company's capital expenditures budget than with the slowing economy then fedex reported solid results in september so we're doing okay, september is looking all right. even raising, raising, not cutting, raising fiscal 2019 earnings guidance a bit. but then came the gut punch in december when fedex gave us
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another mixed quarter, better than expected sales with lackluster operating income. and management slashed their earnings forecast for 2019 remember, i'm always telling you that it's the forecast that matters more than the earnings so analysts cut numbers across the board and the stock cratered falling to $150 during that christmas j. pal bear market remember the fourth quarter was brutal for pretty much every international company. we had an escalation in the trade war with china and clueless federal reserve aggressively raising interest rates just as the economy was starting to show signs of weakness that's not a great environment for fedex. right as the new year got started fed chief j. powell declared he was done tightening and the stock market snapped right back and fed exwent with it now, for a while it looked like fedex had its mojo back. but by mid april the stock had rebounded to $199, okay, even though the company actually cut its full year forecast again when it reported in march. and then may happened. it's may, it's may, the brutal
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month of may as the trade negotiations with china fall apart and president trump decides to start escalating again, fedex's stock rolled over. hey, makes sense anything that inhibits trade is bad news for this company, right? it's a shipping company. then it became apparent that there was more to it than just tariff and slow down in commerce at the end of the day reuters reported the fedex had drawn the ire, perhaps the wrath of huawei, the big chinese telecom company. 100 billion in sales that's the equipment maker that trump partially blacklisted. what happened? well, they apparently -- apparently diverted two packages addressed to huawei in asia. huawei is one of the largest companies in china and has a lot of sway with the communist party. so there is a looming concern that they'll add fedex to their list of unreliable entities which would really damage their ability to do business in the second largest market. remember when fed smith came on here what did he say, china is too large to ignore. that was a great visit
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got to get back. put it all together, you can see why the stock traded back down to 152 in early june once again, though, investors started betting on a comeback. people figured the worst was over and fedex managed to give you a decent bounce. stock climbing to just over 170 in less than three weeks once again they got burned and fedex plunged into the mid 150s, the week heading -- leading up to the company's latest quarter. honestly, i mean there is one trajectory here, right which brings us to june 25th when fedex reported. this time we got another mixed quarter, although it was mixed in a different way the sales came in a little bit light, but the earnings were higher than expected on the comps call fred smith described the 2019 fiscal year as a year of both challenge and change, blaming the slow down in global commerce for the weakness at the same time, the company had to spend a lot of money building out capacity to handle all of the demand from e-commerce
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the forecast for the fiscal year 2020 didn't inspire confidence, fedex opted to give more call tate i have than quantitative guidance, predicting earnings per share growth excluding one-time items that is pretty bearish, people many analysts were looking for $16 a share less than 50 sorry if i mispronounce that, subromanian said 2020 would be a transition year. oh, oh, that's a term that investors typically hate to hear especially from a company that's just coming out of a horrible year we thought 2019 was the transition year. now we need another transition year so you think the stock will get hammered, right? wrong. fedex rallied on the news, going up 2.5% tacking on another 2% the day after that this stock, oh, boy, this stock has run from 156 when it reported 2 1/2 weeks ago to 162 now. isn't that terrific? okay, after another strong
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session today, this is a big deal when the stock rallies on bad news it is often a sign the shares have bottomed it means most weak ends have washed out which is what i think is happening everyone floo was going to dump fedex is totally out of the stock. you had a number of analysts arguing the quarter was better than theory and expectations will put a floor under the stock. i admit that sounds phlegm si, but historically that's been a very effective way to spot bottoms. at the same time fedex is dirt cheap as long as the company can meet its own forecast. the bulls have been saying fedex was cheap since last year. it hasn't happened because management has repeatedly cut numbers. consider this. over the past ten years fedex has traded 16.4 on average it dropped to ten times earnings now 11 times earnings. that's near the bottom of historic range fedex is as cheap as it's been since any point in the financial crisis that's got to be worth something. so what's the final greeting for sustaining rally we need a trade resolution with
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china so they won't end up on the chinese blacklist. it wouldn't hurt to get its act together with the delivery company they bought in 2016, whaling on the numbers sometime. yesterday goldman sachs added fedex, not just a buy, but conviction buy, very bullish call where they argued the franchise is too strong to be kept down. goldman gave us a $200 price target they think most of the risk is already baked into the stock and it's too cheap to ignore maybe goldman is jumping the gun. i think they are onto something. bottom line, fedex has been bit, mutilated the past 18 months when the company has a disappointing guidance a few weeks ago, the stock roared higher when you can rally on bad news, that is often a sign that the bottom is in it's as close as you're going to get to a bell going off. i think you can start buying fedex right here right now if it goes back down, it is so darn cheap that you can just buy more "mad money" is back after the break. don't miss your golden opportunity
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you and i need to talk about cannabis a couple months ago i told you many of these marijuana c.e.o.s were making incredibly bold forecasts. it would be very difficult for them to actually meet. when the formerly blazing hot pot started cooling off in recent weeks, i can't say it was any surprise to me although i would have never predicted canopy growth would be growing they had a $4 billion war chest from constellation brands. they can use that cash to establish a position in the industry the founder and coe ceo got fired. mostly because constellation, the largest shareholder, wanted him gone in part because the last quarter was a disappointment to them we spoke to the ceo from constellation earlier this week and he laid it all out for us.
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so in light of that interview and what we heard recently, green growth brands, cannabis retailer that wants to be jds like any other retailer which would be a big change of pace for this group, i think we have to reassess how these stocks are trading gauze i kn trading because i know many of you do trade them. the canadian parliament agreed to legalize recreational weed in the months between the loss passage and cannabis stocks caught fire, it didn't hurt the constellation brands the american beer you know invested a big chunk of change into the canniby growth. it gave a 38% stake in the cannabis concern and the right to buy majority control. hence they can fire len ton. it set off a massive rally in the whole group. wednesday it went into effect, it turned out to be the ultimate sell event pot stocks got crushed the first
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quarter. the meltdown was all for them. they did even worse than the averages for example, the m.j., the oldest of the marijuana etfs lost half of the value between mid september and late october it was brutal. however, at the end of last year, the u.s. congress snuck in an amendment to the farm bill to d decriminalize the cannabis derivative without much thc which is the active ingredient i'm told gets people high. once again, the pot stocks rallied. notice i'm calling them pot stocks, not cannabis, come on, enough there is new found optimism surrounding the canadian operators and u.s. selling cbd and traditional marijuana. we saw cold hard earnings numbers and the numbers reveal the canadian cannabis market is going to be a dog fight. this is why i told you to bewary of some of those wilder promises made by marijuana executives
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even though i'm a big believer in the long-term theis he is of the disruption of perhaps more than $250 billion worth of current sales of other products. now, one reason these stocks have been tough to own is many shareholders seem to have unrealistic expectations some people think marijuana is going to be legalized at the federal level in the not too distant future that's not with this congress. even cbd late last year is less than it sounds, you need to produce the stuff the way the department of agriculture tells you to or it's still off limits. now we're starting to see push back from the fda which once established a framework before it lets companies add the stuff to food products, dietary supplements. you've probably seen the cbd stores popping up all over the place. it wasn't the slam dunk many investors thought it would be. the big package food companies seem to be hesitant to get involved i ask all of them about this more importantly, recreational weed is still illegal. a real crime at the federal
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level. while the house judiciary committee started holding hearings of decriminalization yesterday, this is a long way from becoming actual law if you're betting the congress will take action, making it so that you will a the big, say, consumer companies will start coming in and doing things, don't hold your breath without the promise of legalization here in the u.s., you have to make decisions on the cannabis stocks based on the numbers. no longer optimistic promises. and the actual numbers are complicated, to put it diplomatically that brings us back to the growth player in the space canopy reported widely seen disappointing especially by controlling shareholder constellation which decried the weakness on their own conference call while canopy sales are still growing like a weed, they saw a year over year in pricing. it is far below wall street expectations operating expenses are growing faster than its sales. for many investors this was a rude awakening called water in the face taking over the canadian
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cannabis industry turns out it's going to cost a lot of money then last wednesday when we heard that bruce lynn, the founder and ceo, a guest many times on "mad money," he admitted on "squawk box" he had been terminated. this is big news since the big investment last year, we went directly to the source he told us the company needed a different leader to move to the next phase of growth my speculation is constellation wants it to be more legitimate because it is continuing to expand into new areas, especially health and medical products where you've got to be more buttoned down going forward, they want someone who will focus lesson deal making and building the brand and focus more on execution. he didn't get fired because he put up a bad quarter he got fired because investors are finally paying a lot of attention to the numbers he was a terrific founder, an outstanding promoter and, yes, kind of a super great guy. but the company wants to go in another direction and he couldn't pivot the way that they
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wanted to. a lot of what's happened in the country -- i want to give this guy credit -- the things he said and did, i don't mean to be so tough on him bill is a very serious businessman and so is lynn ton but they're two different kinds. and one is not working right now for this stock, canopy how do we evaluate the cannabis stocks going forward we don't want do hear how many stores you have going to put up. we want to know how your products are selling we want same store sales we want hard facts to me that means you need to be more selective with pot stocks i i think some of them are worth buying object weakness canopy is still in the strongest pogs here. company has plenty catch even if you're lynn ton spending spree. the new solo ceo, formerly lynn ton's co-ceo, will hit the target you have my blessing to buy it on the way down. who else the other major player i'm recommending is chronos.
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it has good management and terrific game plan i welcome them on the show everything else approach with skepticism be skeptical of afria. be skeptical of till ray i would avoid the cannabis etfs. this group, the bad could end up being very over valued what else? keep an eye on iipr, cannabis real estate investment trust i think this one can still work, but you have to give a pull back all-time high today 137, it was 12 at this time last year, 12. finally as always, you can own gw pharmaceutical which makes, and i mentioned it last time, makes real medication based on synthetic cannabis they hate being lumped in with the cannabis industry. i think gw is worth mentioning throwing up legal hurdles, gives us a sense of how valuable it is the stock is up year to date
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this is another one i like on pull back. what's their secret, why do i like it so much? one word, dosing you can't effectively dose real cannabis it's a plant but the fda and medical community want precision the only company that makes a synthetic version like gw, bottom line. investors are starting to care about the actual results for once i think the group may have to do some cooling off as the pot stocks settle you can buy the likes of canopy and chronos in weakness. don't forget that the paradigm has now shifted and is much more rigorous for the entire industry brandon in florida brandon! caller: yes, sir, i was wondering what your thought was on hexo for the coors. and would it be worth it buying it on the current dip. >> they are partners that got a lot of people thinking hexo is going to be taken out, got a lot of hot
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money in it, i think it's a mistake to own it. i do think that canopy is a better investment. the paradigm has shifted for the cannabis industry. now there's rigos r. the stock has cooling off to do. as they do, you can do some buying of canopy and chronos much more "mad money." energy oracle. what does he have to say about the sector these days? i have the exclusive probably the least surprising thing in your mailbox, a bed bath and beyond coupon the stock down 40% the past few months, should you consider the stock a discount or is this merchandise damage rapid fire, tonight is the lightning round, so stay with cramer
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could this be the time to shine? a few years ago sharif was the guy who practically invented natural gas export business in the united states. we produce way too much natural gas in this country. he taught us that, too, to the point where a great deal of it just gets burned off or flare because it's cheaper than paying for storage. this stuff is very valuable
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overseas it's just there's no easy way to ship it overseas after all it's gas that's why we have these liquefied natural gas terminals popping up you have to turn it into liquid before you can transport it across the ocean i've been a long believer in the business it seemed like not much was happening, which is why the stocks didn't range, single digits they have a terminal in louisiana. the department gave it permission to sell the stuff they finalized a huge investment with total gigantic french energy company which catapulted the stock higher does this have more room to run? let's look at one of our favorite guests to learn more about the developments and where the company is headed. mr. suki, welcome back to "mad money. >> thank you >> i want to start the interview by saying when are you going to wind up with a big international oil company, you got one of the biggest, didn't you? >> yes, i do >> how much money did they put
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in it? >> total $900 million. so they're going to do three things they're going to invest equity in the project $500 million. they are going to purchase an additional million and a half tons, so roughly 300 million a day. that they will pay for based on asian prices and then they're going to make a further investment of $200 million. as you know, they have already made $200 million investment at a $10 price >> that's incredible there is an article in "the new york times." more natural gas than it can use or export? part of the problem is timing just as israel is prepared to export large amounts of gas to the united states. australia, qatar flooding the market with cheap gas. >> cheap gas would create more demand so for israel --
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>> small country >> -- the best solution for them is to find a way to do business with their neighbors because they have a tremendous amount of demand and necessity for gas in the area you can sell the gas very profitably in the area and they have some nice resources that an added piece of leverage they have and negotiations with the various neighbors. doing business with the jordanians and the egyptians >> you're not concerned they get a pipeline up to europe and some of your european customers, prospective european customers don't want >> a few weeks ago you had scott sheffield here >> isn't he great? >> he's one of my favorite he's rarely been wrong on your show he said the premiere basin oil production is going from 4 million barrels a day to 8 million barrels a day that means 25 bcf of gas can be given away for free.
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so i'm not concerned about anything i'm concerned about stopping flaring in the basin, get the gas on the waterand put it on ships, and you can be on the water for less than $2 so there is no competition for us out there we just have to build infrastructure >> is this not one of the great natural resources our country has, and you are putting the work -- you have a nice slide, 6000 construction workers right now? >> yes >> you are putting to work in this country it's got to be, once again, like the last one you're doing, one of the largest construction projects in the country. >> it will be yes. >> will be now, are you able -- and talked to how you're bringing that natural gas. some people feel there's not enough pipeline, but you're solving that problem, too. >> well, i think people are right. you can count on other people to do things for you. so this time around, since we're in the commodity business now, lng has become a commodity you have to be in the top quartile in terms of cost
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structure. and if you are in the top quartile in the kbhcommodity business, you will do very well. in order to do that in the united states today, we know we have very, very cheap gas in more than one area >> right >> what we need to do is build the pipeline infrastructure to bring the gas to the coast line and then build the lick whiquefn >> will we not have enough cheap natural gas? >> we're not talking about the same thing mexico is not consuming 25 bcf a day. we're talking about an enormous amount -- >> asia needs it more than ever? >> it's a different scale. we're talking about something totally different. i don't even think that the permit basin produces -- have understood what it is they're holding. because if they don't do something with the gas, they will not produce the oil >> right >> the idea that we can continue to flare forever and to become the world, not just flare, is
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not realistic. we are now number four we passed nigeria. the club is russia, iraq, ire ran, the united states at the pace that we grew flaring last year, we're going to be number two next year and number one in two years this is just not acceptable. so mexico is going to take an -- a very, very small piece of what it is we're going to produce >> the opus model, you derive the old business model, they cause risk here you own the infrastructure, better investment at this point for the people who are watching the show >> i'm not deriding anything i think it was the right business plan for -- >> for that moment >> for that moment that moment has gone you now have to go to the next level and adapt to the situation today. >> okay. now, you have never -- i mean, this is an unbelievable thing. you've never been wrong predicting the price of oil and everyone else has.
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oil staying the same around here >> i think -- >> remember, you've never been wrong. >> right okay so what i'm going to tell you now is i'm comfortable in the band, but i think the risk on both sides is intolerable. >> intolerable >> yes so it makes it very hard to make a bet in one direction or the other. >> we need to care about hurricane, hurricane barrier -- >> i'm not talking about this. i'm talking about the fact -- >> i'm a big thinker you have said four different times i'm a small thinker. [ laughter ] >> what i'm thinking now is that the permit basin has become the swing producer of the world, and therefore what happens in america matters more than what happens at opec. >> well, all these things that have happened, you have predicted. mr. sheffield did, too i'm glad you mentioned him you two have been the most right of anyone on the shoef congratulations. congratulations on the new company, which is doing incredibly well. on that total investment
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sharif, the chairman good to see you, sir "mad money" will be right back
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it is time the lightning round. and then the lightning round is over are you ready? welcome to the lightning round john caller: hey, jim, love the show. >> thank you caller: just wanted to know your thoughts on amgen. >> i have to admit it's been a big disappointment it was good, now it's not. i'm not going to recommend the stock. let's go to daniel in new york daniel caller: both my parents passed away in 2017 what do you think of sarepta they a therapeutics >> i think they have the right things evan caller: booyah from the sweetest place on earth >> where would that be
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caller: hershey, pennsylvania. >> what's up caller: hey, jimbo, just had a question >> sure. he got cut off win stop is one terrific stop. >> buy, buy, buy, buy. >> i want to own the stock and i want to have a franchise kevin in california, kevin caller: booyah, jim. rgnx >> i don't know those particular fellows and i would have to do some homework on that. let's go to joey in illinois joey caller: hey, jim, i'm a 20-year-old college student and i watched your tv show get rich and watch "mad money." my question is about pizza i'm up 2 visa. >> no, no, visa is fantastic
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you're a young person. you can ride it out. i think it's really very meaningful that you watch the show i heard that every single 20-year-old in america had cut the cord this person has not cut the cord and that's one of the reasons why i love this show let's go to david in georgia. david. caller: yes, watch your shodaily jim, wp kerry. >> these global net leases, it's okay it's okay. it's a read. that's all i'm going to say. and that, ladies and gentlemen, is the end of the lightning round. >> announcer: the lightning round is sponsored by t.d. ameritrade chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
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the clock is ticking on bed, bath and beyond. while the interim ceo did a serviceable job on last night's conference call, she's been there since the end much may i think she has her work cut out for her. sure bed bath and beyond has a billion in cash. i wonder if they have to spend a chunk, not all of it, to stave off the competition. she started the conference call with the acknowledgment that, quote, we need to give our customers a reason to keep shopping in our brick and mortar stores in order to do that, we must upgrade and enhance our store experience, end quote. at least she understands the problem. gees, i can't think of a single reason to go to this version of a bed bath and beyond. the coupons don't do it for me any more steve spent years trying to update and enhance the stores.
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although i have to admit his efforts seemed pretty half hearted and didn't really matter, still i want to know is there anything enough to say to fend off target? the chain that almost seems to be specifically targeting bed bath target is multiple store to feel like bed bath and beyond a better selection, better execution, better prices how do you beat that bed bath has 1,336 stores. they put money up for new locations to annihilate the competition. there's up to $12 billion in sales here if bbby doesn't get it together. frankly i'm not sure they know the urge sizz themselves the company needs every penny it can get its hands on to turn this around and spent $81 million on buy backs this quarter. enough with the buy backs. it has the most absurd buy back that i've seen 127 million today, they retired more than 47% of the shares
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outstanding and it did nothing they might have as well have set that money on fire it was trading 80, now it's 11 you know how the line the definition of insanity doing the same thing over and over again, the market cap is 1.4 billion. that's a travesty and a sham the fact it is still going on this quarter is unbelievable to me can they turn things around? maybe. i like the activist investor who spoke at a governance conference i ran over this year the capital management is involved he knows who to do he's got a plan. with the right permanent ceo it is possible bed bath can execute his turn around plan the conference call was not r reassu reassuring it's going to be hard to escape the fate of donor to the likes of target. i expect they'll use every penny to improve the stores.
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problem is i don't know if that will be enough because target will spend just as much to drive bed bath's adjacent stores out of business. it's a tough road. i'm not sure they have enough time and that's the big thing to pull off a turn. fortunately they still have the cash but between the online closs us that is amazon and brick and mortar nemesis that is target, whoever ends up as permanent ceo will have their hands full shrinking the company, closing unprofitable stores, let alone giving bed bath and beyond beyond a new reason for being. stick with cramer.
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i've been a long suffering believer in united health, in aetna which is now cvs in humana. they got their wishes. washington is not going to come down that hard on them and i think these stocks are going to have not just one run day like they had today, but multiple day runs i like to say there's always a bull market somewhere and i promise to find it just for you here on "mad money." i'm jim cramer, and i will see you tomorrow
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ neur with an easier and more appealing way to drink healthy beverages. hello, sharks. my name is carter kostler. i'm from virginia beach, virginia, and my company is the define bottle. today, i'm seeking $100,000 in exchange for 20% equity in my company.

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