tv Mad Money CNBC June 21, 2019 6:00pm-7:00pm EDT
maybe buy spy puts. >> proctor, crowded trade. puts are cheap heading into earnings >> that does it for us see you back here next friday at 5:30 in the meantime "mad money" starts right now make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to teach s call me at 1-800-743-cnbc. or tweet me @jimcramer. how the heck can the federal reserve cut interest rates or even contemplate it when the market still is such elevated levels we've had such an incredible run
even if today was a dow. s&p inching down 1.3%. nasdaq climbing 4.2% the fed is supposed to cut rates when the economy is in trouble, right? how can the economy be in trouble if the s&p 500 briefly made an all-time high? i hear a lot saying this but it's based on the serious misapprehension usually bring people who don't understand the stock market itself because it is a market of stocks. it's no longer a good gain the indices aren't a good gauge to the economy the recent rally tells us lots of companies are doing well. some are doing well because of lower interest rates than the treasury market. some are doing well. there's been some fast growing tech stocks that have not been constrained and farm -- well, farm and fast growing tech tend to thrive in a weak economy. more importantly i think we're looking at this backwards. the market roared to these levels because wall street thinks there is going to be a rate cut it would be much lower in jay powell told us it was still on
the table that there wasn't going to be any change and talked about a rate increase we would just be down huge. at the end of the day the fed is looking at the whole business world and recognize that everything from big projects to hiring itself might be put on hold because executives are freaked out by the president's tariffs. they are really starting to have a very chilling effect even if they don't want to admit in the white house. both the current ones and the ones that might be out of the future are important to how business people make decisions see, jay powell isn't being reckless at all. he's being prudent when you see major indicators like railcar loadings, okay, boxes, chemicals, steel, lending coming down, these are early signs of what could happen prelude to a recession or a slowdown powell doesn't want that he wants to prevent it. remember, he didn't commit to cutting rates next month, right? all he did was say he's monitoring the situation i think powell is trying to get ahead of the slowdown. but he's not going to pull the
trigger until he sees the employment numbers for june and whatever the president does next on trade at the g20 meeting which is staring us right in the face that's as good a place as any. monday i'm looking for two things that might happen over the weekend. i want some preview of the president's trade talks with china. especially since i expected another 10% tariff proposal on the remaining $300 billion worth of goods we buy from the chinese possibly even before the g20 remember, it's a proposal and hoping the white house will come up with a more proportional response to iran shooting down that drone in fact, if anything we're overbought and we are due for a pullback remember i talked about the proprietary oscillator that helped us call the bottom? it breached 6. come down a little but breached 6. on the positive which tells me you got to do some selling
that's why we're raising cash endlessly for my charitable trust which you can follow along by joining the action alerts plus.com club. tuesday, a fulcrum day why, we hear from lennar and fedex and micron, gigantic semiconductor company. if you want to know why the fed is taking a dovish approach listen to these three. it's going to tell you everything that you need to know lennar didn't have a glowing report but this quarter it has the benefit of lower mortgage rates. get a surprise, that's one less reason for the fed to cut. but i don't know if we'll get one. fedex will tell the tale of a slowdown and tariffs companies that sell merchandise overseas have had a hard time lately fedex frays that how about micron this commodity slammed by price
targets all week, the problem, micron misjudged the level of demapped and thought it would start to exceed the supply for their basic chips as soon as the second part of the year and thought it wouldn't recover. instead prices keep going down that means the estimates are too high when they report. sometimes i think micron represents a bargain trading at five types earnings but like that, that's a big neon sign that says earnings are going to collapse sometimes it doesn't happen. most times it does wednesday we get results from general mills. if you remember the last quarter they had a very nice upside surprise, in large part because of blue buffalo dog food a lot felt they paid too much. i think this stock reflects a lot of positivity. it's currently someone spinning distance 52-week high. you know what, if i buy with new high stocks i'll buy pepsico i want them on and those are a pair of snacking plays why.
millennials have a predilection to eat seven types a day do they do anything i do even a smidgen, a smidgen of commonality? we both breathe. we both breathe. okay, on thursday we hear from these companies that lots of people want to bet against walgreens, mccormick, nike i get the bear case on walgreens. amazon is killing them on the commodities and agencies galore looking into the pricing for pharmacy and back. how bad is walgreens i'd rather actually have you own cvs. another house of pain. if you insist on buying a drugstore how about mccormick the spice kingpin. that's interesting and have this line you know it's red hot, ha, ha, 7% of its float has been sold short which i think is way too high just kidding mccormick has a good track record and expect a good quarter. i think it can go higher n nonpromotional i didn't know that i made my own cayenne pepper sauce i should serve this at barzan
miguel -- never mind as for nike i keep hearing they'll have a shortfall why? because of china but nike is a better relationship with the party than any other american company that's it. i don't like the risk. i liked it at 80 on friday constellation reports, it needs to tell us a tale of strong beer demand it's been raining a lot. i can tell you from being in the tavern business, raining makes -- it just hurts beer sales. i'm concerned it might take another clubbing like last time plus after last night's shortfall the cannabis company, some sdrefrs are questioning that v i say it's too early from there off to the g20 where president trump will meet with president xi and hopefully hammer out something hope should never be part of your equation. i'm not optimistic we've seen this before it didn't accomplish anything. the president thought he was
had. i think people could be disappointed the bottom line, we had a great run this week. last two, three weeks but the market overbought territory and a bunch of negative catalysts why it bays to be cautious wait for more days like today if you want to do buying, especially that nasty last half hour, a full scale markdown of every high-flying stock including ipos in this market. steve in new jersey, steve >> caller: jim, big boo-yah from new jersey how is it going? >> pretty good how about you? >> caller: look, time is money make this short and sweet. amd got me real excited. maybe gold and ubs but that's a different segment. how much has the market placed in the deal. if it goes through will amd make the short heads explode? >> my us exploded from steve's question i like advanced micro marking time between the 28 and 32 level. people worried there is a glut
of semiconductors and going to extend to amd. i don't think it will. i think they'll navigate the way through and long-term position wendy in nevada. wendy. >> caller: hey, cramer you talk a lot about these companies that just hit the market like crowd strike and beyond meat. >> yeah, i try to keep people current on these i'm sorry. go ahead. >> caller: nothing but pfizer anymore. >> i'm not a fan i didn't think it was special enough logo, poster, no i just don't think -- i think it snuck in there between a bun of others and don't think it's special enough so -- i liked evolve that got killed. going back to steve in new jersey we're talking to him again steve. i think we should go to somewhere else i think we should go to a whole different state. hello. >> caller: this is joe from north carolina. >> i'm done with jersey for the day. joe, what's up >> caller: mr. cramer, thank you for your time. real quick, i see verizon ticker
symbol vz, america's best reliable network now 5g helping consumers in many ways and number one struggling communication system may be used in a.i. to educate students that understand better while teachers can focus on the lesser understood. >> right. >> caller: number two in health care where the technology can pinpoint health issues where more accurately than the human eye is. >> you're a buyer of that. let me say verizon is the stock i've been recommending since the show began and think it's a well run company. it is a core holding for a lot of people and i agree with that idea it is a stock i can recommend and when i see you on the street you'll say, hey, you know what, thank you so much, jim cramer. i am taking a cautious stand into next week and up a lot. the market is overbought, let it come down. i suggest you do the same. hey, on "mad money," dude, you're getting dell at a discount but does that mean it's worth buying i'm eyeing the company after its pause and unlikely retailer
firing on all cylinders. after a tough day for the cannabis cohort i'm eyeing a name that could be worth considering once the dust settles so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email to firstname.lastname@example.org or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com.
last month everything that is connected to china broke down as the trade tensions kept escalating witness dell technologies. late january not long after dell returned to the public markets, i pounded the table on this one and told you the company had changed dramatically thanks to the acquisition of emc it was no longer a play on
personal computers but a diversified tech play, not to mention coming -- owning most of vmware which is one of our favorite cloud kings at the time dell was trading at 44 bucks and told you it was discuss way too cheap to ignore. you got to own this one and it's been a pretty darned good call although it looked a whole lot better and at first it caught fire but since mid-may the stock is coming right back down plugging more than 16 bucks from its highs, 23.5% while still up 10 bucks from where i recommended the darn thing has been slaughtered lately what happened to dell? does it make sense to buy the stock here or is something gone very, very wrong has this stock gone off the rails? the proximate cause of the decline came at the end of may when it reported a not so hot quarter. it wasn't terrible it wasn't great either modern servings on top of weaker than expected sales.
dell cited some softness in server demand and some weakness in china, oh, man, the guidance was solved but that commentary did spook investors and it got hammered between dell's china exposure and possible slowdown in their server business driven by weaker economies, the stock couldn't get much traction. china has become a minefield minefield for the tech sector. worse than other areas because this is at the crux of the trade war. president trump wants to prevent the chinese from leap-frogging us technologically hence the huawei blacklist and new computer black list he rolled today out of nowhere dell got about 11% of its sales from china last year although now they say it's more like the high single digits and like apple it is caught in the big cross fire you have to worry how much its supply chain is based in the prc meaning trump's next round of tariffs, the ones that i'm
seeing, $300 billion, it might hit dell's products. we know china has already started to hurt the numbers. on the latest conference call the cfo thomas sweet explained what i'm talking about quotes and they're very tough. we did see some slower server growth than we anticipated this was more pronounced in a few area, principally china and in certain large enterprise opportunities, end quote wow, later sweet adds, quote, we did see some softness in china, end quote. as for the tariffs they managed to navigate the president's first three rounds of tariffs and the company believes it can handle the latest increase in 10% to 25% and planning to adjust to the global supply chain in anticipation of a fourth round sweet says the company sell more competitiveness in the china server market and didn't make sense to chase an unprofitable business all that said, i think most of these china fears are already
baked into the stock look, their stock has gone from 70 down to 54 precisely because of what i just mentioned it's not like it's revelatory they're thinking about putting dell on their list of unreliable global companies [ boo >> it's complying with the huawei ban and that would hurt the other big worry, the apparent softness in enterprise information technology and a lot of people thought this was very strong see, now suddenly everybody is concerned about a slowdown both here in the u.s. and the rest of the world. it's a slowdown driven by big business between the trade wars and feds' misgietded rate hike investors are more cautious. if it keeps slowing wall street fears companies may cut hardware spending i think this is definitely the case this is the softness that jay powell thinking about potentially cutting interest rates in the not too distant
future yeah, so what if the stock market is high this is happening underneath the stocking flying are the ones that don't have anything to do with the economy how vulnerable would dell be to this slowdown? when we spoke to ceo michael dell back in march he explained his company has a lot more exposure to the most critical areas of the enterprise tech spending meaning the last things we get cut is business start freezing their i.t. budgets meaning it might not be as bad as the action in the stock suggests these worries are hitting vmware dell's subsidiary a major play in the cloud structure base. vm is one of our cloud kings why? it's a crazy thing the numbers are good when they reported on may 30th, the same night as dell posted a terrific top and bottom line beat and announced $1.5 billion buyback and because the earnings guidance for the next quarter they didn't raise numbers. the stock got annihilated.
down 7.4%. the very next day. given that dell owns about 80% of vmware and it's a $71 billion company that explains a decent chunk of the decline in dell stock. on the one end vmware stock ran up going into the quarter we were talking about for years well, it means it was really poised to sell off no matter what on the other hand, this company is all about virtualization. allowing customers to take a single server and use it to host multiples so investors fear if -- it might get hurt if the server business is slowing down. however, they say they don't have much correlation with enterprise hardware spending the business is about helping companies on board the cloud particularly amazon web servers. wall street want the vmware to raise its guidance that's what we were hoping for but management left it unchanged. here's my view on vmware i think they were simply being conservative
i don't think there is anything wrong with vmware. i think the sellers whew it out of proportion and i think they're just trying to make it so the bar isn't too high. i say vmware at 173 is a better buy than dell. it may be more expensive but that's only fair gian its faster growth rates and more limited economic sensitivity although they're much smaller. one pivotal software, wow, it lost 40% of its value in the last three weeks the weakness in this cloud based development software is tougher to explain their full year revenue guidance without much of an explanation ouch these are all real concerns but when you put it together dell is sticking to its guns standing by its forecast of 605 to 60. if they deliver those numbers this stock is having 8.atimes earnings dell stocks, most are triple that 7.4 times next we're numbers when you see a multiple this low, it means wall street is
expecting the estimates to come down however, at these levels i'm betting most of the weakness is already reflected in the stock price and that assumes nothing gets better. if michael dell is right that the company is less sensitive to the slower economy i think this could be a fabulous buying opportunity. if we get a trade deal it's a rocket ship. bottom line, unfortunately dell's stock is shackled to china so it could get hit again next week if we don't get a trade deal but if that happens, i think then you could buy sdem into weakness. it's just gotten too cheap to ignore and speak to andrew in new york andrew. >> caller: hi, jim this is andrew calling from brooklyn, new york. >> go, brooklyn. what's up? >> caller: i wanted to let you know i watch the show every day. i love the show and big brooklyn boo-yah. >> i like that i like that it's the, you know, brooklyn is the house of kings the is the way i look at. >> caller: highly recommend it
highly recommend your restaurant. >> thank you. >> caller: okay, i want to give a shoutout to my wife and my parents on staten island so i'm calling today in regards to the ticker symbol ayx and two-part question on alteryx. what do you think the short term year opposed to long term five year growth potential is for them and the second part is, do you think it would be a possible candidate for acquisition in the future some competitors would be tableau, microsoft, ibm -- >> remember, they do data stores and retrieval and reporting. yeah, you're right i have liked them. i made a big mistake and filled out to be a customer of them and everywhere i go it follows me. every time i put up an ad, they're a very good company. that's a cool call i lying it felicity in florida. felicity >> caller: hello, mr. cramer you are my mentor.
>> there you go. thank you. >> caller: long time listener and first time caller. i'm calling about cyberarc i'm up 80% should i keep going or sell it >> they keep delivering. they have a business business but up 80% we're being piggish, take a quarter of it off the table on monday that way i feel better otherwise, i'll sit here and worry about you. dell could get hit depending on the g20 meeting. if that happens -- >> buy, buy, buy >> and stick with cramer brian sullivan worldwide exchange 5:00 a.m. eastern.
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federal reserve. play thing in the hands of the president. >> that was sese >> yet if you're too focused on the big picture even when it's good like it's been this week and the last two others, you can miss some incredible opportunities. we pay a lot of attention to macro forces, worth remembering individual companies do matter and just look at carmax. the chain of used car dealerships with a stock that exploded higher today up more than 3%. unbelievable had a fabulous quarter even though carmax had already run up dramatically before the numbers it rallied more than 40% over the past three months the company still managed to blow away the expectations and you know what, i think this one still has a lot more upside so why is carmax still worth owning here? first background i started recommending this one back in january of 2018 because while the new car market was peaking i thought the used car market was poised to go into raging bull mode and thank heaven it was. however, the stock has had ups
and downs. carmax was trading at 64 and change then vaulted to 80 at its highs last september, okay, and then ran ahead first into a concrete retaining wall which was a big rate cut, rate increase, right, right here, okay and then during the fourth quarter sell-off, well, carmax then just got -- it was hurt a lot worse than a lot of other company, after a series of strong quarters it reported numbers that were good, okay, but not great in late september. then in december they delivered some genuinely disappointing numbers. same-store sales down 1. % and stock pulled back to the mid-50s which i understand you can't have a disappointment like that. it didn't help the federal reserve, of course, was raising interest rates and many people need financing to buy a used car, the short term rates do matter in the wake of it car max couldn't rally along with the rest of the market not even after the company hosted what i thought was a very bullish analyst meeting in january. i loved it
the business seemed to be struggling, management was getting a fortune building on its omni channel capabilities with the goal of letting customers complete the whole process of buying a car online that can be costly and it doesn't always pay off people couldn't make up their mights if this was a positive or just one more thing to worry about with a stock that was breaking down horribly i heard the head & shoulders pattern. all the different negatives were emerging but in the last three months carmax has come back with a vengeance. first better than the quarter in late march even though sales were light, the earnings were substantial l substantially better than expected while they didn't look fabulous it took the biggest fears offer the table which is why it rallied 10% on the news. okay plus the omni channel experiment turns out it's working carmax rolled out their new internet business in atlanta and these stores saw their same-store sales grow by double digits remember, that was a test market but once you see it works in
atlanta, why shouldn't it work everywhere else? that was just the start. it just keeps getting better the bar had been raised. when carmax reported this morning the numbers weren't going to be graded on a curve like last time we kneed a genuine blow-out. and that's what they gave us management didn't disappoint carmax delivered fans it tick numbers off 1.49 basis with higher than expected revenues and same hoof store sales rising 9.5% year over year. much higher than the 5.6% figure that wall street was looking for and the car business is not that good but this is -- this is amazing. where did these numbers come from as bill nash told us this strength is retail is a combination of many factors including our solid execution supported by enhancements to the customer experience, a robust lending environment and delay of february tax refunds into our first quarter, end quote
between lower interest rates these refunds and stellar execution, i think you have to say that carmax is firing all owl cylinders. up 6% year over year they have a huge opportunity with the digital business. we know carvana has been growing by leaps and bounds and featured that for you although i became skeptical of the sky high valuation. huge opportunity to sell used cars on the internet and carmax is making advantage of it building out its infrastructure so they can care for these online only customers who don't want to deal with the hassle of speaking to another human being. remember the millennials hate to talk to people and they certainly don't like to talk to a used car salesman. buy it online. your house -- how do you like that it's what they do. now, they've got their omni channel pilot program in atlanta saw double-digit same-store sales growth and the atlanta
market continues to outperform the company in appraisal buys and one of these omni channel centers can serve a lot more than just a single city. they rolled out its omni channel at the majority of stores in florida. they'll do the same in north carolina, virginia, that's all from this one center in atlanta. next month they're rolling out a second omni channel customer experience in kansas city and decided -- they're deciding on a third location for later in the year, by the end of the current fiscal year it's on track to get it to a majority of their customers. now the digital business could turn out to be more efficient than the that diggal business model true with everyone else. why shouldn't it be true with used cars. it will be expensive but based on the results we've seen so far worth every penny. i'm betting it can do anything that carvana can do. they don't need to build out big used car vending machines because they have more than 200 showrooms nationwide
the macro is really in carmax's sights again really in their favor. remember how the stock got clobbered in the fourth quarter when interest rates were rising. now, long-term rates have come down hard. and the fed is likely to cut short rates. both of which allow people to get cheaper financing and do not forget the tariffs, people the tariffs. work in favor of this. i think carmax is a big winner in theescalation of the trade war. anything that makes new cars more expensive like tariffs on, say, steel, right, on aluminum, well, it ends up giving used cars a competitive advantage if president trump follows through on his threats to slap tariffs on german auto what is a win for carmax it could happen. not yet but it could happen. in a slowing economy you have to believe consumer become more price sensitive and gives used car another edge they have carmax as the t.j.x of the auto industry. the richest will buy the same stuff but everybody else is
trying to trade down to save money. hook at the dollar stores lately less than 16 times earnings. next year's numbers. i think it's a bargain but i would like them to pull back what can i tell you? i want to you buy it here? maybe buy some here and buy some here in an overbought market is what i want you to do. bottom line, you know i don't like to chase. that's why aisle reluctant to say go buy some but carmax keeps roaring and after today's terrific quarter, you know what, i bet it has more room to run. alex in california, please alex >> caller: big boo-yah, big jim. >> well, alex has come to play what's going on? >> caller: hey, jim, a quick question about general motors. with nafta going on and the potential ability to close out and with gm's cruise line and the cars that they have coming up in the next couple of years do you think gm is a buy at these levels >> i think gm is one of the most challenged positions of they company i follow i think that gm is entirely
possible that if we do not get the united states/mexico/canada agreement this will be a stock that will go to 30 and very expensive stock but will just get more inexpensive i say stay away. carmax is king of the road i bet it's got more room to run. much more "mad money." after a tough day in the cannabis space, i'm buying an n unconventional play. are you suffering from fatigue you're not alone i will tell what you it means for the market and rapid-fire in tonight's edition of "lightning round. so stay with cramer. >> i get to fight for real people they come to me and trust me and they're rooting for me to be as good as i can be. i love that. ur joints... or your digestion... so why wouldn't you take something for the most important part of you...
this was a tough, tough day for the cannabis cohort. canopy and it was widely viewed as disappointing while the sales came in higher than expected they missed production estimates an lost more than wall street was expecting it to. the earnings hit doesn't bother me canopy is spending a fortune to establish themselves as the dominant player in the marijuana business one discouraging line item that did have me worried.
the canadian recreational weed sales were down versus the previous quarter that is not supposed to happen i'm not saying this was a canopy at the back situation. there was no joy in budville mighty canopy has struck out i still believe marijuana is a huge opportunity i think that it's the displacement of say as much as maybe 250 billion of noncanopy things but what does it tank to be can 'tis kingpin these days it's not going to come cheap it's not going to happen as fast as many of you want it to. this has become a long-term story and it requires patience and most of you do not have that when it comes to these stocks but i bring up canopy because it's the best of the breed so the negative pin action from this, i'd say, very suboptimal quarter devastated the entire group. >> the house of pain >> that makes this the perfect moment to address a cannabis company that we keep getting phone calls about. on march 5th charles asked for my opinion on innovative
industrial properties, iipr. this stock has been blazing hot. really what a run from 7 awhen charles asked me about it up to 13yesterday before closing today $117 really crushed it. charlotte, you got sense. my kulpa for not just telling you to buy it. i just didn't feel comfortable enough to just say, yeah, go buy it it's a real interesting situation. today in the wake of canopy, the big earnings shortfall iipr has been put through the meat grinder. it's down 13 % today 17 bucks while it's still up from early march this is the kind of pullback that could make for a good buying opportunity as long as you believe in the underlying story. do we believe? do we believe in innovative industrial properties? it's not a regular stock it's a real estate investment
trust. it's the only real estate investment trust in the marijuana industry it was a much safer business model than actually prospecting for gold and in theory instagram could be that kind of story but in practice, it sure doesn't trade that way it's what is known as a sale least-back reit. basically they buy specialized buildings used by state licensed marijuana growers and lease them back to the operators long-term rental agreements and know the setup you need to guy hydroponic weed consistent enough for the medical marijuana business iipr has been making a series of acquisitions buying up lots of new properties in states where medical marijuana is legal they have a piece of real estate in michigan. the earnings, they've been good too and the company just raised dividend by 35% bringing the yield up to 2% i know it sometimes paltry can you imagine them having a
yield. i have no problem with the company but innovative industrial the stock is another story. too hot for me iipr came public and for its first full year after its ipo it traded sideways then as the cannabis cohort starts heating up up more than 40% now up 160% for 2019 now, too hot most of the move is happening over the past six months there may be a universe where iipr is a marijuana stock that lets you sleep but it's not this universe it trades like every other speculative marijuana trade. like this, iipr had one of its worth days of all and it's up 10% for the week it was up 60% just since the beginning of june on no major
news and you know what that looks like to me, that looks like froth we don't like froth. so i feel like you know what, i got to say we missed it. we missed iipr i should have moved faster i should have circled back to this sooner and recommended it much lower level but up here i can't count on the buy-in need to see much more of the decline. the bottom line, if you look for a safer way to play the cannabis space i'm not sure it exists maybe still with constellation brands that reports next week and invested 4 billion american cash in canopy growth although they're spending it like mad a medical marijuana real estate investment trust with a billion dollar market cap is not, i repeat, not the kind of stock that will let you sleep soundly at night "mad money" is back after the break. woman: my reputation was trashed online.
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[ buzzer ] >> and then the lightning round is over. are you ready, skee-daddy. time for "the lightning round. joe, in texas. joe! >> caller: boo-yah, jim. >> boo-yah, joe. >> caller: hey, first time calling. quick question, ticker, cy >> cha-ching, cha-ching, great gain and the takeovers incurred and it is time to celebrate and go i need to go to steve in vermont. steve. >> caller: hey, jim. how are you doing? >> all right, steve. >> caller: recently retired and your guidance answer advice is always on point. >> thank you >> caller: my question is this, what is your take on village arms lately? it had huge growth potential. >> i have not had a look they have good vegetables. i'm not kidding. that's what they do and we'll come back and look at it
i presumes not too wait three months until i do it let's go to bob in new york. bob! >> caller: jim, in a low interest rate environment, is it too late to buy $23 stock high dividend yield starwood property -- >> no, it is not just last night someone ask ford a high yield stock i like. i say i should have said starwood how about brad in michigan brad. >> caller: happy friday. wanted to ask about class d shares -- >> nothing happening bad at berkshire. they got the horse sense, they are smart. amy in california. amir >> caller: hey, jim, boo-yah >> boo-yah >> caller: what's up i've been watching -- i'm turning 21 in a week and watching you since seventh grade and wanted to let you know. >> thank you >> caller: i was going to ask
about -- >> if agoty vision breaks out then it goes much higher i think he has the right stuff thank you for watching basically all your life. michael in new jersey. michael. >> caller: boo-yah hey, jim, i'm a college student in northeastern university in boston i love the show. >> fantastic >> caller: how is it going >> pretty good. >> caller: i'm a shareholder of smg and bought in at 59 a share in december and i'm serious about taking my profits or - >> i want you to sell almost half of it you have a real good gain. i don't like the weather and that's what that matters for that one nice trading nice investing and that, ladies and gentlemen, is the conclusion of "the lightning round. [ buzzer ] >> announcer: "the lightning round" is sponsored by td ameritrade >> what?
no, what all right, to all the haters out there, hi, haters. what should you make - [ buzzer >> have your portfolio -- [ buzzer >> sorry >> the wrong symbol. got to bust that >> boo >> yes, glass pants -- sorry, class pants. ♪ >> i always put a black t-shirt on and just wait at the door of microsoft just in case he would say, oh, a fellow black t-shirt guy, come on in. it's so wrong. ♪♪ ♪♪ ♪♪
for months, for months i've been warning you about the coming flood of new ipos and said at some point we'd have too many new stocks. only so much money coming in and mutu mutual funds where portfolio managers run out of ammo but can't buy anything new without liquidating something old. we found we had a lot of money coming into the market out of bonds into stocks so after this latest new deals have we reached or getting close to the chipping point this new money in stocks, the ones that just came in now over the transom, will that make things okay, or is there so much supply it doesn't even matter? i think it depends on the one hand certain kinds of companies are still in short
supply if we don't have a lot -- didn't you -- we don't have a lot of honeywes dan doing a great job -- transformed by smart management teams to transform world trade and can own them despite the vicissitudes i've had it. we have too many software and server stocks. something just -- well, you can't -- i can't take it anymore. the only cybersecurity company, it claims, that is built from -- for the cloud from the ground up, it now is a $14 billion market capitalization. even after today's 3.5% shellacking, but wait a minute, z-scaler is also a cloud based security play and has more revenue. 300 million versus 250 million for crowdstrike. while crowdstrike is a good company, zscaler is the envy yet they only have a $9.7 billion market
capitalization so how can crowdstrike be worth more? it doesn't make sense. now people were selling it to take up slack. this is a good story individuals use slack software and ask employers to pay up for the higher inverse because it's just that good $19 billion good i think yes but you could tell today there are some people who think no i think the stock siphoned off from enterprise software like a microsoft by the way competitors. remember, because some people say they collaborate, i know, god, every time you say something, no, jim, i know but slack is so new, index funds can invest it's not in any index funds, indices got added that makes it an orphan and you can only own so many of these all right. here's the hottest of all. zoom video really good company. okay zoom video is video conferencing but turns out cisco has a division that competes with
zoom it's a good one. and by the way the people from zoom were from cisco so should zoom be worth 237 27 billion? i don't know i think it depends how much money comes into the market. then on top of that what do we got? i like to refer to it because it is -- it's a great company octa and essentials and remember yesterday all of which are designed to help customers operate more efficiently when you look at the market capitalization like salesforce, okay, there's just too many of these software service companies so what happens when there are too many stocks? we're now in a one deal too many mode, people it means the next time a software is a service company that comes public and doesn't go to premium, it breaks price, in other words, it breaks the print price where it came and goes down, i got to tell you something this whole group is going to go down and you saw the prelude in the last half hour of trading. these were miserable yeah, the whole group is likely
to sell off if one of these stocks that comes public doesn't work unfortunately the bankers, they don't care they got to make the money, the venture capitalists are eager to take profits they got what we call real low basis. that's why it's time to have a big run here if you don't know what they do anymore, let me tell you what to do if you own one, cha-ching, cha-ching, ring the register stick with cramer. i don't know...our relationship is just kinda boring. uhm, you're not alone. i used to have a limited selection of shows on-demand.
and let me tell you, it got very boring. i got directv last week and they have more than 50,000 titles to choose from. but what about my problems? classic narcissist. what was that? nothing. tv without thousands of titles on demand is just kinda tv. don't just kinda tv. directv. sign up for directv and get hbo included for a year. call 1.800.directv. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.
you know how everything fell apart in the last half hour? that's my biggest fear all these new stock, there was no buyer underneath. no one they were going up, up, up then suddenly someone pulled the plug and then discuss a vacuum. that's what i've been worried about the whole time i think we have reached on we time on ipos i always say that's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you monday!
narrator: now on "american greed: deadly rich"... a car abandoned by a mexican ravine leads to a grisly discovery down below. van houten: it was brutal. this was stab after stab after stab. it seemed personal. why 24 times? narrator: the victim is jake merendino, the well-loved heir to a texas oil fortune. armani: he had southern manners, as they would say. a gentleman from the south. -merendino's rich... -even though his parents were frugal, jake was not. -...he's fun... -jake never referred to himself as a "sugar daddy," but he did refer to himself as a "daddy." -...and he's all alone. -in their relationship, who paid? jake paid. narrator: but one unwise transaction brings him close
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