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tv   Mad Money  CNBC  June 13, 2022 6:00pm-7:00pm EDT

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>> all right thank you. i'll be back one more night. thanks for watching. have a great night my mission is simple, t make you money i'm here to level the playing field for all investors. there is 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. just trying to save you some money. my job is not just to teach but to educate and entertain to call me or tweet me @jimcramer. what comes after this horrific
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moment when nothing works and we are solidly in bear market territory in the indexes dow plunging 826 points today. still holding up better than the s&p which plummeted 3.88%. the nasdaq nose dived almost 4.86%. simple sooner or later something does work like i tell you every night, there is always a bull market somewhere. we just have to find it. but always doesn't mean every single day today there was truly no bull to be found with every sector hitting the kids, including the oil stocks even as crude opened down and then reversed to finish higher however, it's highly unlikely the market will stay this negative not because things aren't good rates shot up so fast today that it was breathtaking. that's terrible. but it will bottom because we will get oversold and because stocks get cheaper the s&p is getting cheaper
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and stocks struggle in day two of a huge sell-off that's just history. that's just history. it doesn't feel that way now, but it is the way things have been unless the world is coming apart and i don't see that happening. i see lots of pressure but no world coming apart i think definitely a lot of people feel lost if you still own the kind of stocks that were working in 2020 and 2021, return those profits to shareholders all while having a stock that trades at a reasonable price those are the stocks that you can sit in as for the others, anything that doesn't pass the make stuff do stuff best is questionable at best stocks get beaten down at key levels want to price their earnings base. but there aren't that many of them it is true this is a rare market with increasingly bad breath, very few winners, which means it is unlikely to bottom on a dime. but there are a few stocks that
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work they just aren't in the nasdaq, the lowest level since 2020. today there are only 179 advancing in the new york stock exchange that's the lowest since june 11th, 2020 that's when we got the first covid resurgence 6.9% decline only five stocks in the s&p finished up, five, although that's because we're still trying to factor in this overheated index price number from last friday not enough selling was done. maybe the market couldn't contain it but the good news is everything is for sale. if not, everybody should be for sale russia/ukraine causing skyrocketing food and oil prices china's economy in lockdown. and, of course, inflation, which may finally be peaking when everyone else is freaking out about it even if it is not peaking yet,
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it may when the fed raises rates on wednesday that's why i came up with a bristol myers theory the answer, not much except for inflation. that's going to be dealt with by the fed. i still believe them even though it goes against every instinct, you should be thinking not what to sell but what to buy. we have been highlighting travel portfolio for weeks, buying recession resistant stocks and we went back to the well today we will do it again tomorrow the dow is held with interesting stocks i'm looking at those hey, speaking of going back to the well i like the wells i think there is a place for oil in your portfolio as long as the stock in question gives you an especially high yield like deven or pioneer after interest rates shoot up, the dividends, the yield from those two stocks are well above the treasurers why bother pick winners at all
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because we have an event this wednesday that will tell us if the fed is truly serious about fighting inflation talked endlessly about 50 basis points i have said endlessly that's not enough we need 100 base rate hike 50 basis points ain't going to cut it but the following the accident is boxed in. 75 is a compromise that's like bidding against yourself i think you do this. i'm offering you an opportunity here promise the 50% basis rate hike but double the number of long term bonds the fed is selling which would give the yield curve some inflection. the fact that the two-year treasury is at 3.4% tells you one of those two is wrong. i think the 30 is too low. too many investors are dumping stocks and swapping into these for safety
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you should be doing short rates, not longer here is where things get tricky. if powell doesn't double the amount of bonds, looking for 200 billion, then he will look weak and our stock market will go lower. if he hikes more than promised, people will panic and say there must be something wrong out there. if he does 50 basis point hike and double the fed bond sales, i think wall street would welcome this tougher approach. i know that more of these super high yielders, current corrections in the oil is a good opportunity. you could buy some of the drug stocks, which the fed doesn't take enough aggression action wednesday, they could say they're not enough high inflation and the stocks will go down as i said earlier, many people are lost because they went all
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in speculation some bat on incredibly expensive tech stocks. forget earnings. these people want to be blown out forever, especially if they blow up those stocks with borrowed money some bet on crypto currency. that didn't happen they are hoping to get bailed out by the bitcoin rainmakers that will be squawking all day tomorrow all of them told me that crypto is a con and nfts are as useless as tulips. we have so many younger investors that haven't seen a market like this, including the 22 million people with robin hood stocks. call options those are turbo charged bets that some stocks will go higher. i bet many of those are already wiped occupy lots of people have bitcoin, maybe a lot of margin. but the bottom line, if you took your cue from me and bought
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common stocks in companies that make real things and do real things that return capitol and trade at a reasonable valuation, you're relatively fine this is not the time to make a lot of money it is the time not to lose a lot of money until better times occur. the ones that work, the ones that are stable, they're really boring of course in a market like this where everything is excited, everything that's interesting and exciting has been eviscerated, well, there is nothing better than boring bob in connecticut bob? >> caller: hey, jim. >> bob. >> caller: i'm a long-term daily listener >> okay. >> caller: i'm 75 years old, living off dividends 70% apple and microsoft but i'm well-diversified what should i be thinking to prepare for this economic hurricane of companies cut years ahead. and even if they keep --
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>> what do i do? jack in maryland jack i'm looking at -- jack in maryland jack >> caller: jimmy chill, how is it going >> long day. >> caller: i know what you mean. i need to crack a beer after that one. >> you got that right. >> caller: yeah, man so my question here is so i'm looking to diversify a bit and really interested in disney at these levels topnotch brands in marvel, hulu, pixar. what are your thoughts on disney shares here? >> look, i like disney i have been dead wrong just dead wrong. i have been looking as a franchise. i have been looking at it as being a company that is worth a lot more than its stock.
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right now the long night for the ceo. he has done a great job for the theme parks. right now people decided this balance sheet is awful so there is no hope for the company right now i look at it at $90, my travel trust has to buy more. it is just too inexpensive as a company. not on earnings. and they obliterated the balance sheet that they bought that stupid fox i say it at $90 and change, it is a buy, not a sell but i have been wrong. and i have to accentuate that. in a market like this one where everything exciting has been destroyed, obliterated, laid to waste, there is nothing better than boring. remember, it is not a time to make a lot of money. it is just a time not to lose a lot of money on "mad money" tonight, my trip to san francisco offered a stark warning on crypto currencies then trying to figure out why
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this market is such a buzz kill. i'm trying to understand the difficulty of this take. as humana protects millions of people across the country, but can the stock protect your portfolio? i'm checking in with the ceo, so stay with cramer don't miss a second of "mad money. follow @jimcramer on twitter #madtweets send jim an e-mail or give us a call at 1800-0742 cbc. 0742 cbc -. c . .
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yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. crypto currencies are just a con. hey, that's not me talking that's all i heard from
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executives in silicon valley i don't mean to be too inflammatory but that was one of my take-aways from last week's take they simply don't trust crypto out there. they laughed at nfts or nonfungible tokens this is one of the 15 observations i had after a week in san francisco, observations available to all cnbc investor club members that was sent out last night all i can say is that i hope my memo didn't play a role in crypto's collapse today, total implosion. these things have been collapsing for a while now i say this is someone that once owned a lot of bitcoin i have been vocal about selling all of it. i was fortunate enough when my assistant called my crypto banker this morning and was able to sell mine and i expect the cash tomorrow at 9:00 a.m. it was all the house's money and i was willing to risk it but obviously i would have been in much better shape if i dumped the remainder of my position
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now i'm happy to get anything. half a loaf is better than one, which brings me to what's happening now. there is a crypto pseudo banks that after all the withdrawals last night led to panic throughout the shady crypto system we don't know where the money is, but we know many of these new financial companies are paid high dividends crypto evangelists pride themselves on how they're free from burdensome government regulators before going into the block chain, it certainly won't help me get my money wired to me by the institution i'm using tomorrow morning as promised and i will fill you in if that doesn't happen what occurred is there is no government regulation. i think the regulators were way too lax on this. the industry fought them every step of the way. what happens is we have to guess which of the crypto banks freeze
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assets next. we have to wonder whether it runs on the crypto bank. we have no idea about what's going on we don't know how the big public repositories or crypto are doing. here i'm thinking about coin boise. although i would add paused withdrawals for several hours because of what they said was the stuffed transaction, whatever that means. i need to reiterate that i didn't meet anyone in silicon valley that owned crypto i met a lot of executives and these are wealthy people that said it was worthless and disparaged it at every meeting i took this nft thing, they say, jim, it is just a hoax. just pass it on. now, this worry about bitcoin would all be bad news for a software company that borrowed monies of millions to buy bitcoin as an investor of shareholder money. if it breaks down, they will have to put up more money.
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there is a little bit of room there, but that's what will happen when fcc chief came on the show to talk about crypto bank, i wish i had been more vocal about how dangerous it is to pay these levels of interest because it means someone is borrowing money against their bitcoin. it is so dangerous, but the rates are so enticing. especially younger people. they thought it was a constant easy way to make money we know it represented 25% of robin hood's transaction based vef knew in their financial quarter. all i can say is that the people that loved bitcoin will be out in full force tomorrow and they will give you another chance to take something off the table they will be screaming and yelling this is the greatest buying opportunity ever, and don't forget block chain the bad crypto banks drive out the good like silver gate, which has one of the more legitimate crypto-focussed lending operations but after hearing it was a con last week and seeing bitdown
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down 50% yesterday, after the bubble burst, there is no putting it back together again "mad money" is back after the break. coming up -- sometimes the answers are at the bottom of a bottle a case study of this beverage stock reveals why the market is so darn tough next (vo) some bonds last a lifetime.
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what do you think healthier looks like? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot cvs. healthier happens together. after another awful day, you don't need me to tell you that this is a very tough market. but it's worthyi ithinking about why it's so tough. inflation, war in ukraine, lockdown in china. i'm talking about the day-to-day process of picking stocks. let me give you an example this morning coca-cola announced
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it is partnering with jack daniels with their own can jack and coke cocktails the drinking age is 18, by the way, and expand to the rest of the world. i had a chance to speak with the ceo of coca-cola right now it might not move the needle too much for coca-cola, but it will be a big deal for brown forman at any time of the time i would be telling you to buy the stock of brown-forman hand over fist however, when you go through what's safe to own, brown-forman fails the final test while coke managed the gravitational pull, down a couple cents, brown-forman was down 3% on an extremely catalyst day, which was well hidden people didn't know what went wrong? it is not it is a bad company. they're a fantastic company. they have done tons of liquor
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companies. scotch, vodka, gin you want to circle the wagons around real companies that sell real products. brown-forman hits the bill it took a recession without the canned jack and coke, buying the stock would be a no brainer. thes the kind of business that does just fine maybe they go 75 basis points, maybe 100. people are talking 75. but it should snot affect the stock. alcohol is more or less recession proof. if anything, people drink more they have been huge beneficiaries of the huge reopening. business the booming that business is on fire because people going out again brown for-man is doing incredibly well again. last week they posted a five
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sent earnings beat yes. much higher than expected sales of 25% year to year. yes. management gave a strong outlook for the rest of the year finally removed the whisky nothing wrong here how about the individual brands? jack daniels up 50%. their premium bourbon up 20% tequila is up 22%. while brown-forman's american business is solid, it is the rest of the world taking names also lots of sales from duty free stores and airports people are traveling in what's not like to like here terrific new catalyst with a coca-cola partnership. obvious winner not so fast. the stock has been not to great. while it hasn't been obliterated, it's been trading lower. when we see this dislocation where the company is doing well,
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but the stock is falling, i treat it as a buying opportunity, but not in this market why? not that long ago, we had a worse environment and this was part of the investing club you would know that if you belong does the stock made at a reasonable valuation this market has no patience for extensive stocks there are all kinds of companies with incredibly high stocks here nobody wants to stick their neck up for something pricey. you can't call the stock cheap they are expected to earn under $2 this year 34 times earnings. you can't justify that because it has a good growth rate. this is not a normal market. in other words, the stock is twice as expensive as the overall market not great. again, great company recession proof business exciting catalyst, but it is impossible for me to recommend the stock here doesn't mean that it is a cheap
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date this is the cheapest brown-forman has been in years we're playing by a new set of rules. you want to play on these new cans of jack and coke. i will recommend coca-cola this is a textbook recession stock. and the restaurant business finally coming back, too by the way, james told me that there was a mobility that sheet canning could be in surplus which would mean maybe their cans are going down. that would be very good for the gross margins. plus coca-cola rewards its shareholders with a 2.9% yield which offers you downside protection in a hostile market i don't think these cans of jack and coke will be a need mover. one product is almost never enough to move the needle. coca-cola is safe. while the p.m. is down 25% for the year, coke is up 4%. it was up more in april.
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and it is not that coca-cola has no problems. they're struggling with inflation. there is a shortage of truckdrivers in the u.s. typical slowdown in this environment where we also have ram ped inflation, harder to get excited about it i still like the stock of coca-cola. i think it's fine to buy if they can build out that capacity of cans, it will be a much easier stock to buy i don't recommend it hard. put aside these horrific days like today, this is a very tough market it has incredibly high standards. it would be a no brainer in a normal slowdown, but it is impossible to recommend here because it's high priced this is a difficult moment remember, this is a moment not to try to make a lot of money, but not to lose a lot of money byron? >> caller: hey, jim. jimmy chill, my friend good to see you, my guy. >> all right
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the chill man is struggling like everybody else, but let's see what we can do. >> caller: my point is will inflation and interest rates allow expansion from the west coast? >> well, that last quarter was not good and it was disappointing to me they have done everything right and then suddenly hit a wall, do they become public so let's just say they need to be -- they need to explain it better because i don't know what really happened. but i didn't like it let's go to jared in virginia. jared? >> caller: what is going on, mr. cramer. >> well, a little hard, but we think it could be a good opportunity for some stocks. what's going on with you >> caller: it's surreal to be talking to you, jim. certainly made my day. >> thank you thank you very much. >> caller: first time, long time been a fan of the show for years. i appreciate everything you do. >> thank you thank you very much. it is very hard right now. >> caller: all right so my stock is in the healthy
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foods arena. and, look, they make money, but it's expensive down only 12% year to date they recently acquire d quest nutrition. for someone allergic to gluten, they make the best stuff the average american gained 29 pounds during the pandemic is that the catalyst needed for my stock, buy, sell or hold smpl thank you. >> you know, that's a very fast grower it's only down 10% sells at 26 times earnings i think that it can still go lower at 37. but you got this -- if you can get this in 3032, that's where i feel like you would be able to do -- you can start feeling like it's not as expensive versus the rest of the market but it can't be bought here. let's go to ara in ohio.
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>> caller: jim, about the restaurant space, which is one of my favorite sectors next up and comer. really doing well in the current environment. yet, it's expensive. what do you think about its short and long term? >> what is the name of the stock? >> caller: first watch. >> first watch again, you said it yourself, it's too expensive i just -- i can't go there it's very interesting and in another market it is a high-growth stock that will work we're watching the unwinding of crypto and the collapse of a lot of high-priced mobile stocks high price of sales stocks so we will have to hold off. this is one difficult moment brown-forman stock would be a no rainer after what happened this moment, but i can't recommend it although i like coca-cola, i can't be crazy about it right now. it's a tough market.
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we're tryi ing not to make a lo of money so we don't lose a lot of money humana, i'm talking to the ceo and see if the dip could represent a buying opportunity then doing homework is a critical investment strategy tonight i'm turning my homework on two names that previously had me slumped and, of course, rapid fire, yes, the lightening round stay with cramer your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit only at vanguard you're more than just an investor you're an owner. that means that your priorities are ours too.
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♪♪ ♪♪ making friends again, billy? i like to keep my enemies close. guys, excuse me. i didn't quite get that. i'm hard of hearing. ♪♪ oh hey, don't forget about the tense music too. would you say tense? i'd say suspenseful. aren't they the same thing? can we move on guys, please? alexa, turn on the subtitles. and dim the lights. ok, dimming the lights.
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on hideous days like today, we need a key on what stocks can still work facing aggressive multiple rate hikes from the
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fed. it could possibly throw us into a full-broken recession. raw cost inflation but there is at least one group i believe in it is the managed care providers. even in a recession people do not stop paying their health insurance premiums although, i will ask because i may be wrong humana spent much of the year recovering from a high-profile stumble in january in late april their results were excellent. stocks are holding pretty well when i see it coming down with everything else on a day like today, it makes me want to pounce don't take it from me. let's check in with the president and ceo of humana. welcome to "mad money." >> thank you for having me. >> first of all, are there any people who simply don't pay their health insurance when times get tough? >> there is a few, but not many. >> right, okay. >> health insurance and health care is, on top of people's top of the list to pay. >> the thing that i always tell
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people, if you don't have it, it is what could wipe you and people know that. >> that's right. that's right. >> second, there was a moment where you didn't seem like you didn't have the right promotion but for medical advantage for the high-end but you have since fixed that. it's working, right? >> yeah. medicare advantage is really where we focus and at the end of last year, we stumbled then our product wasn't where it should have been in value and we actually announced $1 billion cost-cutting effort. that is really going well. and we're re-investing in the product. this year we will do quite well as a result of that. >> i hope you offer something that is easier to understand i looked at yours. all my life i heard about the humana medical advantage i hate to get to the point where you have to use it because you are a certain age. but i found these things hard to understand, frankly, so i stuck with what i had before let's say for a higher-end customer, are you going to offer something that is easier on the
6:38 pm site for me to understand >> of course simplicity is really where we are oriented to. and our brand stands out as being simple, and this is a complicated area. >> state by state, too. >> yeah. and in addition how to use the health care system so the coordination of care which is really where we really stand tall on is the ability to not only help you with your plans but also to navigate through the health care system. >> and for pharmacy, which you're huge in. >> yes. >> and this's a great business. >> yes, yes. the pharmacy along with medicare advantage and part d, which is part of medicare advantage is really a great opportunity for individuals to find an affordable plan. >> right. >> but at the same time because of the aging demographics and the continued use of medicare advantage, we see it as a wonderful business opportunity. >> okay. so tell me where we are with covid. it seems like that, i don't want to say it got better fast because there is also a lot of people getting it, but it seems
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like it is almost like a tailwind, not a head wind. >> i would say it's like a flu it comes and goes. i wouldn't call it a tailwind. i would call it more normalized now. >> okay. i didn't think it was going to go through as fast as it did china. >> i would say it's a more part of the population and we can plan for that. >> therefore, it makes it more consistent is the way i look at it. >> that's correct. >> and the last piece of the puzzle was that i was concerned about nursing shortage is there any chance that as the economy slows down more people, you know, get the fed raising rates that you may have less of a staffing problem >> we do have a staffing problem. >> i know. >> we have the largest home health company. >> and that kindred. i think that's really good, but can you get the help you need? >> we can get it. >> you can >> we're getting it. it is still a challenge. and i have considered the provider side of the equation,
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the shortage will continue to be the case we saw -- >> really? >> -- a significant amount of individuals going out of the system and in addition we continue to see the demand rising as a result of all the needs of health care. but i think it's a great opportunity because it is also a barrier to entry. >> where did they go i ask everybody this everyone said, well, a lot of people aren't in the workforce anymore. where did these people go? >> a lot retired, to be honest with you i think covid really put a lot of pressure on providers, and they retired but the opportunity is still the ability to use technology to really assist them but for them to practice at the top of their license and in addition it's a great opportunity for us as an organization to really lead and be the individuals that can -- that will come to us as a result of our valient effort. >> definitely. i like that you are holding up these senior-focussed primary
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efforts because of the baby boomers, the demand is there and you are meeting the demand. >> that's correct. what we have seen especially in medicare advantage is the integration of primary care, pharmacy and home health it's really provided a more care model is the way health care is going. medicare advantage is more advanced than that our ability to do that under a brand that we announced center well. >> there is terrific stuff i have to tell you, though, that it's to your advantage that the actual medicare booklet is too hard i spent hours reading it trying to figure it out on my own no we need someone like you to say that's a good brand name they have a good product i can save money and that's what we're looking for. and yours is more simple than the rest of them i want to thank you. the president and ceo of humana. my travel tusrust owns it
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when you are looking for companies that won't be bruised by what's happening, your money is safe here. >> may i make a suggestion i would stay with cramer. >> the lightening round is coming up next. next, the amattny of the big lie. the new evidence and testimony from the january 6th committee plus, making sense of another steep market sell-off. >> the facts, the truth, the news with shepard smith next yeah, that's what i do. ny) (vo) with 5g ultra wideband in many more cities, you get up to 10 times the speed at no extra cost. get verizon business unlimited from the network businesses rely on. another crazday? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network.
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you can instantly start saving on your travels. so you can go and see all those lemons, for less. lightening round sponsored by td ameritrade >> it is time! it's time for the lightening round on cramer. bye buy, buy, buy, sell, sell, sell. are you ready? chris in oregon. chris? >> caller: hey, jim. i'm calling about ribbion
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automotive i know amazon has a flock of that stock they own 20% of it what impact will the down fall of that stock have on amazon stock? >> not much. not much more important is what will happen to ford stock i think ford stock is cheap. they ought to do their ev and increase a buyback let's go to peter in texas. >> caller: hey, jim. what do you think for a long-tell investment in free port >> not the time to buy it. i think aluminum is rolling over copper is rolling over let's go to kenny in maryland, please kenny? >> caller: yes hi, jim. kenny from maryland. my stock has a large customer base, including berkshire hathaway mttr
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can you give me your opinion in. >> we're not recommending any stocks anymore that are losing money. it is too hard let's go to john in new jersey john >> caller: how are you doing >> how are you >> caller: the blueberry capitol of the world. >> love hammond. my dad used to make sales calls with me there. >> caller: full season right now. long time ago you had the ceo and they said they had the crypto answer, amazon bs-1, bs-2 i want a buy, sell or hold that stock? >> we caught a great move on that when you watched, the stocks had a big move there is a lot of speculation about what can happen from here. but i got to tell you, we caught a big move let's leave it at that michelle in california michelle
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>> caller: hey, boo-yeah from california, jim cramer. >> i love your attitude. hard to find on a day like today. let's go to work. >> caller: i know, really. a little story lead-in in 2016, just before the presidential election, you were asked if trump got in the white house what stock would do well and would you name one and you named a stock that i didn't pull the trigger on and i have been kicking myself ever since, ctaf. what do you think now? >> well, that was because i felt that the trump administration was very pro small business, which it was i think this administration wants to be pro business, but doesn't know how so i cannot be behind them it was a great call because they were very pro small business and now i don't know what they're pro. republican, democrat, i just don't know let's go to angelo in new york >> caller: hello, cramer
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my question is about hanes brand. i noticed they have been buying back shares. they give a small dividend and it is all the way down on the charts. >> look, it sells at five times earnings it had a 5% yield. i have to do work with this. that seems strange to me i have to find out why people are willing to let this stock be as low as it is. i'm glad you brought it to my attention. i promise i will come back on it because that makes no sense to me >> caller: how are you >> long day. how are you? >> caller: i have a big question on shipping, great dividends china is opening up. what are you thoughts? >> china is not opening up so much word that ukraine is offering big losses. we had china going back under lockdown i think zim, which is a beneficiary of more commerce is
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getting less commerce. therefore, i don't want to recommend the stock. i know the yield like everybody else but i have gotten good in a lot of these stocks before trading vehicles, you have to get in and you have to get out and i don't want to be in now. phil in washington phil >> caller: hey, jim. greetings from the west coast. >> all right where a lot of people are. i don't blame you. >> caller: yeah. well, down there at 35 now earnings are good. but the ratings maybe not. >> this is a great example the fact is it will not make the test mates, which is why it doesn't look at cheap. i'm going to have to say a buy that is the conclusion of the lightening round the lightening round is sponsored by td ameritrade
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the moment i got back from san francisco, the market rolls over in anticipation of the federal reserve lowering the boom later this week my view is the bigger the boom the fed puts us through the better because that way you get inflation under control. and it is out of control so as we get acclimated to this hideous market, i figure it will be a good time to catch up on some homework.
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i always circle back, try to give you a more considerate response than, hey, i like it. these days, i find these homework assignments refreshing. something we're in need of at the moment even though if most are too risky this current trading day, and they are. so let's get back to it. back on may 31st, rent in michigan passed my tech. my tech systems, actually. that's mitk for you home gamers. he gave us the whole story about how this company got on his radar screen he used his phone to deposit his paycheck and looked into the technology that makes this possible i love this research turns out it is my tech. it is profitable, which is a must in this environment i didn't know this so i told him we would take some time and verify it they sell software products from
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mobile image capture and identify verification. he's correct this is a play on mobile tech deposits their technology identifies passports, yes, paychecks. the check business remains their primary revenue source, 63% of sales. they have thousands of customers including many banks and other document related businesses like docusign while we couldn't confirm his statistics at 98% market share in the mobile deposit business, they're definitely the dominant player by far. however, there is a twist here usaa got into a fight over the patents. there was a lot. two parties settled in 2014. a couple years ago, they went into a new tragedy, suing my tech's customers for using their mobile check deposit technology. they want to keep mighting them in court i have no idea how this will play out
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this is "mad money." the point, though, is that there is -- it was a huge winner during the darkest days of the pandemic while there is a decline in people using taxes for payment, that was more than offset by the rise in mobile banking these guys were pretty money in 2020 and 2021. like so many covid winners, they little sit on their laurels. they have something more stable once the pandemic wound down specifically my tech bought a couple identify verification companies. in short, they have diversified from a mobile check deposit play to selling a full suite of services to the banks that helps new customers remotely while still complying with know your customer or kyc regulations. they used this for a big business considering check fraud cost the banks $15 billion a year how about these financials the last couple of quarters were
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very good. clean top and bottom line beats to help the earnings however, that isn't enough to prop up the stock. fans of technology, it has to be the most hated group out there hey, pal, square, which is now block, affirm, upstart, they have all been crushed. on top of that march, announced the acquisition of the second identify verification deal when they were imported in late april, we got a less than t stellar update that's the last thing you want to hear in a market like this, which prizes earnings above all, if there are any my tech stock came down 35% like so many others since that announcement at these levels it sells less than ten times earnings. i think these guys made a ton of good decisions on the other hand, there is that legal risk my view, if you like this story, buy some my tech down here for
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speculation. leave room to buy more in the weakness because we have no idea when it will stop going down, just like we have no idea about the rest of the market it is not worse or better. next up, last wednesday russell in nevada called to ask about sport radar group. i told him i would circle back this feeds data about sporting events to sports leagues, media companies. they have some terrific companies with the nba, mlb, european soccer. soccer and tennis are the most heavily bet on sports in the world. in addition to charging their clients subscription fees, they get the gambling business. we have to talk numbers here sports radar is very profitable. they made five cents a share last year. the earnings are on track. more importantly their earnings for interest are substantial at this point growing like a weed. oh, a company has been positive since 2013 it is a real business that became public last year, a group
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that contains a ton of garbage the problem is that it's totally out of style in the wall street fashion show for the better part of the last year, investors hated anything to related to sports gambles that's why it fell to $8 and change today in general, i think the sports betting business is way too crowded. there are too many players chasing the same group of gamblers, but sport radar isn't a gambling business. it enables the whole industry. i like that. kind of like an index economy. in other words, another environment i find this one really intriguing. however, we need to deal with the market we have, not the market we want and the market we have sport radar simply isn't good enough it's not willing to value stocks or their ebida you are fighting the tape if you try to buy sport radar here. in this market, that's suicide the bottom line, my tech system
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belong to hated groups, but my tech is cheaps on earnings b basis, which is the only one i will bust with speculation in what we know is an extremely hostile and negative environment. right here on "mad money." i'm jim cramer, see you tomorrow "the news with shepard smith" starts now the second january-6th committee hearing focusing on the big lie. team normal, and team crazy. i am shepard smith, this is the news on cnbc. >> laying out the case that trump was working a conspiracy theory. >> if he really believes this stuff, he has -- he's become detached with relate kri and taking from followers, $250 million for a election-defense fund that doesn't exist. >> was there the big lie offer was the big ripoff. >> the markets sell off, again, with every sector in the red what is driving


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