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tv   Mad Money  CNBC  April 8, 2021 6:00pm-7:00pm EDT

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so ewz, brazil etf. >> general mills. >> i know small cap has paused but one name i like is primmoris the valuation is attractive d an chart looks good.prim. >> all right, "mad money" with jim cramer starts right now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica i'm trying to make you money my job is not just to entertain, but to inform, tweet me. does it matter that the president of the united states doesn't seem to care one bit about the stock market on a day where the s&p 500 hit a
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new record, up .42%, while the dow advanced 57 points, and the nasdaq jumped 1.03%, i think it's worth considering how the biden market differs from the trump market a year and a half ago, wall street was in it we had incredibly low unemployment with no inflation we had terrific earnings too until the pandemic hit we bungled the response and then the market got shipped throughout that period, one thing never changed. we had a president who graded himself based on the performance of the averages. when the dow surged, after the march bottom last year, shortest bear market in history, by the way, trump cheered at every milestone on twitter, and little interchanges with reporters. to him, it meant he was doing really well. he even picked larry kudlow, my former co-anchor, as his chief economic adviser, which tells you a lot about him. speaking of someone who served
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as a judge on "the apprentice" for several years, i have insight. while trump never followed individual stocks closely, he knew the market matters and he delighted in asking questions about what to buy. i sold him on verizon. as for trump's chief economic adviser, i worked with larry kudlow for three and a half years. he never met a tax cut he didn't like i pushed night after night for a dividend tax cut, something that would encourage people to own stocks larry pushed for a capital gains tax cut, because, well, he's hard core. he's a hard core believer in economists worked in the reagan administration ultimately, president bush passed both of the tax cuts, although given how the bush economy ended up, i'm ambivalent about taking credit, but under trump, we had a chief adviser who was enthralled by the stock market they wanted it to go higher
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almost to an obsessive degree. how about the new administration i don't think president biden pays attention to the market at all. i would often see him on the train going south. biden is one of the most convivial souls i ever met one time when he was a senator, he saw me walk by and he introduced me to the conductor, and then biden got right down to it he said he found my obsession compelling, but sadly, he couldn't take advantage of it, in part because he didn't have the money to be in the stock market i told him, look, i understand that's difficult, plus there are potential conflicts as a senator, but it was never too late to buy an index fund. from the disclosure forms, he knew he was the poorest person in the senate. the bottom biden didn't seem to care at all. so let's see, the last president was obsessed with the stock market the new one could care less. the last one bragged about how rich he was. the new one bragged about being the poorest in the senate.
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the new one proudly points out he's a union man those are big differences, yet it hasn't mattered one bit, and yet we go over it constantly how is it possible it means nothing? let's pull this apart or unpack, as they say, and then double click it they say this stupid stuff on the conference calls i listen to here's what we get i need you to come to grips with why it hasn't mattered we had an incredible rally when trump took over. we had another incredible rally when biden took over first, you could argue this is branded. presidency is important. there's not a lot the white house can do in either direction. when there's divided government, it's tough to pass anything unless the crisis becomes so palpable, both parties are willing to compromise. we like divided government that means nothing gets done good for stocks. we keep hearing about biden's infrastructure plan/jobs program and the possibility to raise corporate taxes to pay for it. i think there's a good chance we won't get a tax hike
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then again, the democrats were able to pass a $2 trillion stimulus package, so maybe washington is a little less paralyzed than we imagine. if biden is essentially double the tax break, which is what i thought he would do, that's a different story. but it's not there that would hurt the stock market it's not even on the table second, no matter how pro-stock market trump was, this endless tormentes of jay powell made a lot of business leaders nervous because the fed is supposed to be an independent agency when the president is out there tweeting, who is our biggest enemy? fed chairman powell or chinese president xi that doesn't make me want to buy stocks even though trump is the one who made powell chairman, he started bashing him as a powerful golfer who can't score, someone too conservative, too hawkish on inflation, and then last year, when powell grasped the full extent of the crisis, he was well ahead out of the president
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in trying to save the economy, but there were no supportive tweets meanwhile, biden says he hasn't talked to powell and doesn't plan to because he wants to keep it separate. finally, third, trump's erratic behavior toward business, towards individual business people, and his disrespect for science, collided with nearly every ceo i know that was less of a problem before the pandemic. but it became much harder to ignore once covid hit. as for biden, most ceos don't want higher taxes, but they also don't want a president who berates them on twitter and a president who ignores climate change as many executives told me after the camera stops after that, he says i have children, i can't take his position. i have children, i can't take his pg in the end, you could pak the case this whole discussion is moot what really matters is we have low interest rates and high
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liquidity. don't kid yourselves i think the president is largely irrelevant, but i'll take that back if biden can pass his $2 trillion jobs package. the market loves calm, serenity. wall street wants certainty. even when most of these guys disagree with biden, they like that there's no surprises with this guy the bottom line, that certainty factor and that alone is enough to make people more willing to pay up for stocks. even when the new president is a union man who clearly favors labor over capital, and he used to point out he's the poorest guy in the senate. let's go to richard in delaware. richard. >> caller: boo-yah, jim. i'm a first-time caller from lois beach, delaware >> all right what have we got here? >> caller: my question is on exxon mobile given exxon's growth since the beginning of the year, and its financial statement saying that its current 6% divdant based on current prices is secure for the
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foreseeable future, the oil reserves, which are purchased at low prices have potential for higher profits also when prices rise what do you think is the future of exxon's value >> i got to interview the ceo, and he had a good story to tell. things are better in the oil patch. i know people think i'm obsessed with mike worth and chevron, but i think chevron has better growth qualities, but i like the fact that mr. woods did say the dividend is safe it seemed pretty solid let's go to johnny in maryland johnny >> caller: boo-yah, jim. >> boo-yah >> caller: i'm a teenage investor looking for the long term with coke's majority stake sale of coke africa looming, what do you think of their following in mexico >> james christy used to run coca-cola fem saw, and i'm not
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kidding, he did an amazing job i think you're fine in coca-cola femsa, i think it's a very good company and in many ways better than the parent. we're learning that the president's mostly irrelevant to the market the market just wants certainty. constellation brands waking up in a hangar despite reporting an earnings beat. >> then the return of leisure is giving vegas a much needed shot in the harm. is it time to roll the dice with a company like wynn resorts. and are consumers ready to say good-bye to sweatpants and hello toblue jeans i'm saying hello to the ceo of levi's >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer #madtweets
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send jim an email, or give us a call 1-800-743-cnbc miss something head to madmoney.cnbc.com. with a bang, energy and change came to every part of our universe. seismic or small, it continues. change is all around us. shaped by technology and human ingenuity, we can make it work for you and your business. obsession has many names. this is ours. the lexus is. all in on the sports sedan.
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what do you do when a best of read company hits you with clearly a disappointing forecast i think you need to give it a closer examination, which is exactly what we're doing with constellation brands stx, that's beer, wine, liquor, known for corona, modella, and pacifica and after putting up terrific performance, the stock up 70%, but the ceo referenced one year ago, constellation sold off hard the sales and earnings were much better than expected, but the guidance was a little light. they're talking about making 995
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to 1025. that's why the stock dropped nearly 5%. that's what matters to investors. it's the future, not the past. is this a temporary blip in an otherwise excellent story, or do we need to get more solid. welcome back to "mad money." >> thanks, jim >> bill, last year, you told us, look, this is the beginning of a good run you had a lot of good things in the pipe i listened to the call and i felt today that you were a little unsure about the future even to the point where you had $1.9 billion in free cash flow, and you guided from $1.4 to $1.5 free cash flow why? your free cash flow is your best measure, and that is disappointing. >> well, i'm not sure everybody appreciated how strong our year was last year. and actually, how strong the guidance was if you think about the top line, jim, we guided at 7 to 9 in our
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beer business. that's consistent with our long term algorithm, and we guided 39 to 40% in our bottom line margin that's also consistent with our long-term algorithm. but we've got a very strong business that's been outperforming and is providing best of class margins and best of class growth. what we have decided to do is to invest a bit more against that business which creates greater depreciation in the short term we're going after the seltzer category very aggressively, which will also compared to our core beer margin, is slightly tighter. and therefore, it gets a slightly contracted bottom line margin compared to last year but we're still extremely bullish about the long-term success of this business >> all right, good, because look, if you have something that's worth spending money, you'll do it you are tight fisted i have got to ask you, one of the things i thought was a shame, let's call it a shame, is what happened with mexicali,
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where you chose to invest in a country, put a billion dollars in, and then you had 800 in, and you said on the call, it's just not going to happen. what do you do here? >> well, admittedly, we were disappointed as well, but the reality of it was, the government was not comfortable with that particular operation frankly, we're somewhat sensitive to their concerns as well because there's always the concern about availability of water. you know, it's why we're looking at the southeast they have encouraged us to look at the southeast of mexico where water is ample and we're doing just that. we have also done a lot of things to be a great perfect citizen there. we actually have done infrastructure projects that saves the local community more water than we have actually used in our facility. so while we're all disappointed with mexicali, we're still very bullish on mexico, and our relationship with the government at both the federal and local level is very strong and we think this was a blip
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that will quickly be put behind us >> maybe they'll mitigate it somewhat, because i don't see why they don't it wasn't really your fault. initially, a lot of people wanted the plant it put a lot of people to work >> correct we do think that there will be some mitigation over time, and we're still exploring that with the government about how we can mitigate it. we have also moved some of the equipment over to some of the expansion that we have so we do think that there will be some continued mitigation of the impairment, but this is where we stand at the moment, and therefore we took it >> you're straight up on that, and i appreciate it. bill, you did mention canopy the stock had a good move. they made some acquisitions today. but give me your feeling with a biden presidency, with both houses being democratic, your feeling, say, out a couple years, where we might be with cannabis it could be huge for you or maybe we're still going to be talking about it >> i think you're a lot closer to legalization in the u.s. than we were, say, 6 to 12 months
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ago. so that's a very positive setup for canopy you also are getting much closer to profitability with canopy so we're very excited. we would expect in their next fiscal year they will be getting to profitability in their core canadian market. all in, we're very excited about the future of what canopy can bring. as you know, they have introduced beverages they have the top three beverages, cannabis beverages in canada, and they recently introduced quatro in a cbd form here in the united states. and that's all before we have gotten to a full legalization. as you point out, we think two years from now, we're going to be in a very different situation than we are today, and no one is better positioned than canopy to capitalize on that >> that's definitely true. the last thing i wanted to ask you, when i see brands like modelo, very quickly capture top three, i think wait a second, what would happen if it was
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available readily in more states than it is i think people don't know, unlike a bud or unlike a coors, you're not in a lot of markets that you dominate in other places when do we expect nationwide that every bar will have a tap that has the number top three beer >> we certainly hope it's sooner than later as you know, modelo is the number one beer in the state of california, and it's number one in a number of other markets around the country but it still has a lot of development opportunities, particularly in the east and middle markets around the country. when you consider it's been growing in double digits for 30 years, it really has unlimited upside plenty of growth opportunities in the hispanic community, but we have seen greater penetration, 25% increase in penetration in non-hispanic consumers the last two years >> that was telling. i thought that was the best statistic in the entire conference call. what that tells me is bring it to the northeast, it will crush it bill, you answered a lot of
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things that make me feel a lot better about this stock. bill newlands, president and ceo of constellation brands. great to have you on the show again. >> thanks, jim >> guys, look, i asked every tough question about that quarter. and i felt better. i think you should, too. constellation brands "mad money" back >> as a las vegas icon looks to take another step in reopening, should investors let the chips fall where they may? or go all in the ceo of wynn resorts goes one-on-one with cramer, next
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great reopening stocks go before they run out of steam? take wynn resorts, and an even larger presence in mcamacao. it's relatively even with where
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it was trading before. if you think there's a ton of pent-up demand for entertainment, like going to a casino in vegas, there is room to run china has aggressively stamped out the virus, and vegas is following suit earlier, morgan stanley published a note arguing that wall street grossly underestimated the earning power of companies with vegas exposure this doesn't just happen casino companies have moved heaven and earth to open safely. today, wynn rolled out a new testing plan for the employees i think they're on the right track. let's check in with matt maddox, the ceo of wynn resorts, about how he's handling the great reopening. welcome to "mad money. >> thanks for having me. >> not long after covid happened, you were maybe the most proactive ceo i heard you tried to find the best science minds and said, tell us what to do go through the process because it looks like you were able to figure it out to the
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satisfaction of the regulators >> yeah, sure. so that's exactly what we did. we went out and found some of the best and brightest in the world to think about how can we really create a safe environment. and back at the end of april of 2020, we produced the first health and safety plan really one of the first in the country that got copied in entertainment, in other industries, and as i started to continue to think about reopening, we thought, we wasn't just have great sanitation standards. we also should be able to test everybody. we built our own covid testing lab. we can test 10,000 people a day, pcr-based test very simple, pooling, one of the only ones on the west coast, and we also launched the first mass vaccination program in the state of nevada. on january 18th. we vaccinated 41,000 people here 4,000 of which are our employees. 60% of our employees have been vaccinated and you know, we're just continuing to do everything we can to create a safe environment and one that we know is going to
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be fun because it's coming. the fun is coming. >> i know you instituted you get the vaccine or get tested once a week what would happen if you told everybody you have to get the vaccine or you can't work here >> yeah, we could certainly do that, but i think that the way to really do this is to continue to roll out the vaccine. we make it as easy as possible you can get it at work all lanes are open now in the state of nevada, and if you don't want to do it, you have to get tested in the lab. that actually costs $15 each time because we do it inhouse so it's cheaper i don't think it's our job to be mandating vaccines for everybody, but what i am mandating is we're covid-free on our staff. you're vaccinated or tested every week >> how about macao it sounds like when you get a society that reopens, the first thing they want to do is go back to what was their favorite thing. it looks like macao is again the favorite thing >> yeah, you know, the macao government has been very
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diligent handling covid. there haven't been many cases there at all and they have also been diligent in opening the borders sort of step by step, but we are extremely confident that each week we're going to see more and more people. we're really excited about the may golden week that's coming up and i think the roaring '20s, jim, just like you have been talking about and i have been talking about, it's not just a united states thing. it's a global thing, because only people make people happy. that's what we have been missing for the last 14 months and our business is about getting people back together and having fun >> so how many people are you allowed to get back together if you do this policy, what restrictions will go away so when i go to wynn, i know i can get to the tables? >> so you know, our gaming control board put out a statement, public statement, last week actually that they're going to look at casino by casino and lift restrictions individually based on what they're doing. so we're trying to lead the make
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this the safest environment possible jim, i'll tell you, we had 18,000 people in our building not all at one time, but over the course of easter sunday. i was down here with my family having lunch we have 10 million square feet and tables and 20 restaurants and bars and, you know, everything that we have, we can accommodate lots of people in a very safe way. and what we're seeing is we're seeing a lot of people having a good time. believe it or not, you can have fun playing blackjack with a mask on. when you're out by the pool, you're enjoying yourself, having a drink, you know, las vegas i think our best days are ahead of us in the not too distant future >> i'm not allowed to do what i'm about to say, but others can. you have a football team in vegas. can i bet on who's going to score first in the second half in gaming at wynn? >> yeah, of course you can bet. absolutely you know, jim, we -- we're hosting the eagles this year
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2021, so just imagine, things are going to be pretty much back to normal, i think come out, watch the raiders play the eagles we built a new supper club while we were down that we haven't even opened that i think is going to be gangbusters in las vegas. and then maybe see drake perform at a nightclub at night. where else can you do that in north america? >> i just found one weekend of mine is going to be like and i'm going to go -- >> you're invited. >> i'm going to stubhub right now. you obviously are feeling pretty darn good about the business i can tell and a lot of it must mean that you feel that the country is about to boom. that it really is changing and let me ask you, because the stock is up, right where it was before covid is it possible that you could be copying 2019 numbers already and be up? >> you know, that's really place by place i'll tell you, in our encore boston harbor in boston, we're having record months there
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really, we were only open since june of '19, and that's more of a regional play. las vegas needs air lift to get back to beating 2019 what we're already seeing, drive-in traffic is up over 2019 the last month our call volumes are back to 2019 levels. conventions, we booked five tech conventions for later this year, just last week so even the conference business that people were saying, oh, is going to change forever, everyone is already realizing you have to be around other people to innovate and to learn. >> you're saying it's going to be in-person, people are going to get together for a tech conference it's not going to be zoom. it's not going to be zoom. >> not going to be zoom. you know why you learn when you're around other people on zoom, it's great. you can do transactions, but it's hard to innovate on zoom, in my opinion. people love to get together and compare ideas and talk about what they're doing outside of their company. so yeah, even interest in ces for next year, we're starting to get really positive feedback
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that's just in the last couple weeks. >> this feels so good. i agree with you so much jamie dimon said it yesterday, matt he said there's no innovation on zoom you have to be in person >> there's not we can't design new spaces on zoom when we're designing a new restaurant or a new club, we have to do it in a room because that takes hours and brainstorming and bad ideas and good ideas and it's really hard to do that when you're not in person. and look, i think as long as vaccines are 50 times more per day than covid cases, which is where we are right now, as you know, we're going to be back to normal in the fairly, you know, short order. >> you made me feel great, and your company is so good. and look, i have been a backer for, you know, i know your predecessor. look, for, i don't know, two decades, and it's been magnificently well run, and you're a great steward of wynn matt maddox, ceo of wynn resorts, thank you for coming on the show >> great to see you.
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>> can you imagine doing things in person? going to conferences, seeing me on the 50. that eagles game oak, maybe not the 50. maybe the 40 wynn, i like it. "mad money" back after the break. >> coming up, you might not look as cool as cramer in a denim jacket that's okay. almost nobody does but a little indigo might look good in your portfolio the levi's ceo flashes the denim, next.
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i keep telling you to stick with the great reopenic stocks because they can deliver the kind of huge earning beats that wall street craves and we just saw what that looks like in practice when levi
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strauss, the iconic apparel play, reported a blowout quarter after the close. yes, the company posted a 10 cent earnings beat off a 24 cent basis. but the best part was the guidance they dramatically raised the forecast for the first half of the year they're talking 24% to 25% revenue gruth year over year that's a gigantic boost, and the guidance is 30% more than analysts were looking for. the stock is already up roughly 25% for the year, it could have a lot more gas left in the tank, especially with dividend boosts and excitement involved with the new products and that's why i'm so glad to be able to have chip bergh on the show chip is the president and ceo of levi strauss and company hear more about the fabulous quarter and his company's profits. congratulations and welcome back to "mad money. >> thank you, jim. great to be here and great to be talking with you again >> chip, i have my "mad money" jacket with me and i'm going to start with that, because when i look at what you're doing, it's almost
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like it's personalization. i mean, and by the way, i need a little personal if i'm going to pay $188 for jeans, but you have done it. you crashed the jean sound barrier. how are you able -- they're gorgeous, but $180 how are you able to do that? >> we have actually got one collaboration coming up next quarter, jim, that's already sold out at sak's at $950 a pair so the brand is hot. it's hot around the world. and consumers, you know, are going back to the brands they love and they trust. through the pandemic, we said we were going to emerge from the pandemic stronger. we doubled down on the brand we doubled down on building capabilities that consumers want during the pandemic. that served us really ell. we also used it as an opportunity to kind of get a little bit tighter on our cost structure in the first quarter, it was equal to what it was way back in 2019
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despite having about 200 more doors. and we're going to emerge from this pandemic stronger, more structurally sound, financially healthier company with a brand that is absolutely on a tear around the world we did all of that in the first quarter, by the way, with one third of our stores in europe closed for the entire quarter. so we beat our own expectations and external expectations, despite still a number of challenging headwinds from the pandemic >> you know, chip, what i was thinking, because your guidance was so great, when i go through really pretty much everything about levi's, here's what i come up with. boston, no doors no doors target, only in 140 doors. i am looking at places, outlets, where you might have five stores in boston, that you could be in 1,000 targets. we're pretty early in this move. >> yeah. the u.s. is still one of our -- it's our largest market but
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still one of our biggest opportunities when it comes to direct to consumer standpoint. we have only about 40 main line doors here in the u.s., and about 200 or so outlet doors we clearly have an opportunity, as you said, i use boston all the time as an example we have no main line doors in boston i now approved a couple so we will have some next year or so, but i could go down city by city where we don't have a name on door presence. and that represents a huge opportunity, especially with the commercial real estate tsunami that is happening right now. it gives us an opportunity to secure great locations at great leases, and we're capitalizing on that. we have also launched what we call our next gen store, which is much more digitally enabled, and it allows for a seamless shopping experience between the digital world and the physical brick and mortar store and we're able to do some of
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these next gen stores with as little as 2500 square feet they're very, very efficient we use artificial intelligence machine learning to sort those stores and they're profitable almost right out of the gate so these really do represent significant opportunities. and we have declared we're going to be dtc going forward. it's really critical to us, gross margin accretiaccretive, d we're successful at it >> i think -- i know you say the brand is great, but also, chip, candidly, you're an amazing curator of what you have i'm looking at a piece from esquire about raw salvage jeans. they're supposed to hurt at first, but it talks about what went on in the late 1800s through 1950s, kind of the different kind of looms. you're a student of your own brand, yet you're also capable of realizing what part of your brand is going to sell you have hoodies on the site right now. you're getting $75 for a fleece hoodie
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it reminds me of products like a lulu or some sort of athleisure. you have got everything that people want, and your price points are very high but people don't seem to mind paying >> yeah, in fact, we're finding in our mainline stores that there's really no limit to the upside that we got from a pricing standpoint, but we're number one in denim locally around the world by far. and when we lead others follow right now, we're leading a trend towards looser fits. we launched this in early 2020, just as the pandemic was happening. and consumers during the pandemic were looking for something more comfortable well, our competitors have followed and it's now clearly a major trend. as is the fleece, by the way but these looser fits for both men's and women's are the fastest growing part of the business i think it's going to create a new denim cycle. the last denim cycle was created with the skinny jean phenomenon,
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and that was more than ten years ago. i think we could be looking at a new denim cycle led by this trend that we jump all over, and created. now being followed by our competitors. fleece is another big opportunity for us it's what the young kids are wearing. we're very, very focused on gen z. and the first collection that we launched, it was a small collection sold out almost immediately. and as you said, there's not nearly much resistance on the pricing standpoint, we're doubling down on that as we move forward as well. >> well, chip, i gotta tell you, this was true blowout and it's because of -- well, look, you guys really know how to mine your brand, but more important, you mine your minds. you're really brilliant, and when the stock was at $14.50, you didn't hesitate coming on. uknew it was going to come on. i think this is early in the rally. chip bergh, great to see you again. >> thank you very much, jim. great to be here >> guys, this one is just getting started.
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chip bergh, i will never forget, he came on in the darkest days and the greatest days. that's my kind of ceo. "mad money" is back after this >> just chill out. >> chill man is in the house >> chill man be king >> the chill man is in the house. >> the lightning round is coming up when "mad money" returns i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow. with every vaccine, cvs is working to bring you ♪ ♪ ♪
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it is time it's time for the lightning round.
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and then the lightning round is over are you ready? the lightning round. we're going to start with rick in pennsylvania. rick >> caller: hello i was wondering what you may think about a stock called inovio >> i know these guys, these are down the block from me a lot of promises. not a lot of deliveries, frankly, so i'm going to put it on hold. let's go to paul also in pennsylvania paul >> hey, jim. boo boo-yah. >> chill man says hi >> love the show longtime fan gl >> that's perfect. >> caller: i love your wisdom and your insight i have a question, i have a stock inmode, is this a good reopening play i have been holding it a while -- >> i don't think -- i looked at these guys not so much a reopening play, just a great secular growth story.
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it is terrific a little speculative, but it has earnings and i happen to love the medical device category, whether it be medtronic or edwards life science, whether it's intuitive surgical or whether it be abbott, and i think i have to look at this and say it's one of those. let's go to marsha in florida. marsha >> caller: hi, mr. cramer. >> how are you >> caller: boo-yah i have been following you for about a year >> okay. >> caller: i joined your action alert club and thank you for all the insight. >> i threw a lot at you in the call today, wow. >> caller: yeah. and the stock i'm interested in is star peak energy transition corps. and i'm wondering what's happening with it. >> because you know, we like that we put it in the bullpen look, i think -- i just wanted to go lower. a lot of times you just want to have a stock go lower before you pull the trigger i know it's already lower than when we talked to them, but i think it can go lower still. let's go to dan in new york. dan. >> caller: hey, jimmy chill.
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thank you for all you do >> thank you for calling >> caller: i appreciate it, brother. it's like watching grass grow. >> you're absolutely right and i like it so much when it came out but absolutely nothing what can i say i love royalty pharma. i really do, and they own positions in a lot of good stocks i'm not giving up on royalty pharma i just won't let's go to phil in north carolina phil >> caller: hey, jim. how are you doing today? >> i'm doing well. how about you? >> i'm doing pretty good i just, before i start, i want to let you know, i'm not sure if you know the impact that you have on young people >> really? >> caller: okay. i have a granddaughter, her name is antonia, she's 20 years old, and her and her house mates over there at bloomsburg university, stop what they're doing at 6:00 just to listen to you for an hour >> really? wow. you tell antonia that the
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majority of plurality of my teachers went to bloomsburg and they were fabulous you tell her that. it's a terrific school >> caller: well, listen. antonia has a lot of horse sense. that's all i got to say. >> kids got horse sense. >> caller: okay. yes, sir okay, so getting back to my stocks i'm 73 years old and i have been told i have the portfolio of a 40-year-old okay i would like to use this stock to put my money in a 4.25% dividend i think it's a safe stock and good for the long haul the stock is lizen >> i agree with you. i think it's precisely the kind of stock i want to see you in. i want antonia in something that is more aggressive that she can have all the time in the world to get the money back. she should take more risk. you're doing the right thing,
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and thank you for those kind words about younger people watching the show. that's what i detect, you just verified i need to go to peter in massachusetts. peter. >> caller: hey, how is it going, jim? >> not bad >> caller: i'm a huge fan. i think every deejay in the world needs your sound board >> thank you >> caller: no problem. but anyway, i am invested into, you know, the whole ev thing >> sure. >> caller: and i was wondering how you feel about the company xl fleet in the hybrid forms they offer >> i tell you, what happened here was strange they came on, they told a decent story, but right after, a guy does a lot of good work, he said this thing was not a good stock. and that you should sell it. and then they proceeded to not do well. and so i have to tell you, when a short seller says things that are going to happen and then the things happen, well, it makes me say, let's stay away i know i feel badly because the
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guy came on, i thought he told a good story, but it wasn't good enough so and then the stock went down. i say stay away. let's go to aaron in florida aaron. >> caller: hey, jim. my stock is a classic reopening play, but it's just had a hard time getting out of its way. what are your thoughts on boeing >> i did a conference call today for my club. an hour and a half call, and in it, i said one of my absolute favorites remains boeing it's going to have a great year and it's going to win a lot of orders, and therefore, it's a buy. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade coming up, ali, frazier, magic and bird yankees/red sox. and roku v. caterpillar? find out what this tete-a-tete means for your money, next
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everybody i know, everybody, is going out to watch this king kong v. godzilla the first box office hit in ages but i'm watching a different
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one. i'm watching roku. >> house of pleasure >> versus caterpillar. >> house of pain >> every market has a coloration a stock that defines it, that captures its essence, but some markets have two right now, we have two at war with each other. caterpillar, the huge machinery maker, and roku, the tech company that makes it easy to stream video directly to your tv right now, most commentators make it sound like this market has two faces. freedom versus imprisonment. the freedom marking contains all the stocks that win if people can go out to the movies or dinner or get on a plane, and the imprisonment market is the one where we're stuck on our pelotons and wiping our kitchens down with clorox i think that's a false icomity the real batum is a nonstop roll between secular companies and cyclical growth companies that really roar only when the
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economy is booming that's why i like to keep roku and cat front and center on my pc, because they define these two groups so any given day, they can tell you the direction of what's going to happen. if you see roku leading the market, if it jumps up in the beening, that's a sign that the other stocks are about to make a comeback how about hub stop, how can i help you, but if caterpillar takes off, well then, that's when you can expect big moose and the cyclicals like honeywell, union pacific, fed exrr, 3m, depont dow. maybe it seems ridiculous you can distill a market down to one or two names but this works because they're so representative roku is all about making it easy to stream internet video content to your tv everything from netflix, amazon, hbo. and it's beloved by roku's clients because it helps them reach the hard to get younger
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demographic. roku was a big winner in lockdown, but they should do fine as the country reopens. nobody is going to rip out their roku box if anything, they'll rip out the cable box. that's why the stock shares 13 times next year's sales, but 20 times when the covid situation seemed a lot more bleak. the key here is roku's a secular growth story it doesn't need a strong economy to thrive. it goes like this. it does just fine when the economy stinks people may even switch to roku to save money. the company should lose money, but it's expected to turn a profit next year the stock sells for 150 times its 2023 earnings estimates. the biggest threat to roku is inflation. this is the kind of junior growth stock that is all about the prospect of future earnings many years down the line, and higher inflation goes, the less the future dollars are worth caterpillar on the other hand, big boring company that, you know, is a house of pain for most of the younger people
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listening. it's a textbook cyclical growth. cat isexpected to earn $8.24 this year, $10.66 next year, trading 1 times next year's earnings but here's the kicker, if you think congress will pass even part of biden's massive infrastructure bill and you think china comes back to the table while the global economy snaps back into growth mode, i wouldn't be surprised if caterpillar could earn $15 if that's the case, stock is selling for 15 times earnings. an expansion of cyclicals look cheaper in retrospect once they beat or crush the numbers and the earnings come in much higher than expected. that's why money managers have been all over this thing lately. they're chasing these upside surprises. they know the stock will endure any number of bumps. and even if the federal reserve is forced to raise interest rates, cat is protected the first couple raises because the expansion has so much momentum it all comes down to roku versus caterpillar. if you want to take the
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temperature of the stock market and the bond market and the housing market at a glance, those are the ones to watch. so who wins? right now, i'm betting on cat, but only if we get an infrastructure bill through congress i like to say there's always a bull market somewhere. i promise i'll find it just for you here on "mad money." i'm jim cramer see you next time. the news "mad money. the news with shepherd smith starts right now. developing now, a mass shooting near texas a&m history. one reported dead and three critical condition, and state trooper shot in the chase. at the suspect is now in custody. in 24 hours earlier, mass murder. i'm shepherd smith, this is the news on cnbc. five dead including a doctor and two grandchildren in south carolina. tonight investigating two mass shootings yet again in america. was it fentanyl or an officer's knee that cut off the

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