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tv   Mad Money  CNBC  February 28, 2020 6:00pm-7:00pm EST

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use put spreads. >> tlt we've gotten to a top sell call kret spreads. >> macro night as well appropriate. full coverage of selloff continues "mad money" with jim 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 other people want to make friends. i'm just trying to survive save you some money my job isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. the stock market tried to bottom today. it failed the first time around.
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dragged down by the more powerful bond market taking 357 points, s&p falling .82% nasdaq advanced a basis point, stunning comback but let's not get too carried away, still the worst woke for the averages since the financial crisis the bond market is bigger than the stock market we don't talk about it because it's boring. but it's important to the direction of your portfolio. everything's wrapped up in bond yields always has been. i learned that 40 years ago. there are multibillion dollar programs that sell stocks whenever those yields go down. it's form -- got as lows a 1.1% today, closing at 1.16 that's a record low level, signaling the economy is growing weaker, and quality investors hide money in fixed income, coronavirus supply chain the bond market is screams that the coronavirus is far worse
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than most people realize global commerce will take a real hit and it might even be something similar to 2008 when all hell broke loose i can't tell you whether the bond market is right i'm not an epidemiologist. but i know the market so let me give you the game plan for next week given how this outbreak has played out it's likely there will be more cases come monday there will be a lot of bad news. it will be the headlines i know that. doesn't matter may not affect the stock market as much as you think but, you know what, it could affect the bond yields, be on watch. if that's the case the stock market will get dragged down again on monday. but it could set us up for a snapback rally on super tuesday if joe biden, liked by the stock market, does better than expected it's looking like biden could run away with the south carolina primary tomorrow and may give him some momentum to turn things around on super tuesday. as far as wall street is concerned anything that keeps bernie sanders away from the
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nomination is good news. wall street does not feel if sanders gets it it's a shoo in-trump, they just feel like if sanders gets it, it's dangerous. but more coronavirus clusters, sick people, a world leader or a celebrity getting sick that might get us to a point where the market is totally oversold, even more than now and that would create buying opportunities, a little more lasting. if you don't have cash, stay tuned. i'll tell you what's still worth selling, and there are, after today's bounce at some levels to raise capital. not much in the way of earnings, other than till ray. they've been put through the meat grinder, stock briefly at $220 now it's at $14. a respiratory pandemic may be bad for business tuesday's retail day prepare to be underwhelmed we hear from target and their holiday season was a severe disappointment will this number show a change tough to tell.
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you may have a lot of private label clothes that are made in china. that could cause a problem speaking of disappointment, that's what i expect from kohl's always the possibility it won't be a disaster, we could get a big move wouldn't that be something then there's raw scores, the store chain. you're either online or you're off price. i bet it could hang in there the bond market says that's what we're headed for i like tech. typically the software and service stock. growth no matter what. here's one of my favorites, viva systems, making software for the biotech industry bringing new life into the whole cloud. workday, the cloud stocks have been acting terribly until today and many of them had excellent numbers. maybe they can continue to go up finally chevron has an analyst meeting on tuesday let me tell you something as my late mom would say this group's
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from hunger. the price of crude has been hammered to $45, money managers are turning to fossil fuels, universities or divesting stocks by the way, not just young people worried about climate, it's black rock, 7 trillion, largest -- on earth. maybe there's someone bigger overseas wednesday morning we hear from dollar tree and their last quarter wasn't up to snuff i was disappointed i'm not sure they can turn things around in three months. campbell's soup. are people stocking up to prepare for the inevitable as i was and my wife was yesterday. campbell's -- i think the outlook should be bullish. not that well run but the new guy is better than it used to be the liquor company, jack daniels, that might be a tonic that helps people navigate the newfound volatility, after the close, we have zoom, spunk's a fantastic cloud based analytics cybersecurity, consistent track record
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zoom is a video conferencing software outlet, hottest stock, they make it ease krer to work from home. i love zoom. you finally got a big one, boom, all right, this one is probably my favorite. let's put it this way, if it goes down, buy it. thursday morning, kroger reports warn buffett took a big position in the supermarket chain next up, few companies are as reliable as burlington store, the old burlington coat factory, another terrific chain, i got one in brooklyn, numbers will be excellent. after the close we hear from costco, reliable companies out there, i expect great results, more importantly i think you might get a solid outlook, when we went out there in washington, you want reliable tech, how about opta, firm run by todd mckinnon, i expect good things analyst meetings from amd.
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the pharma had been one of the hottest of the hot chips until we learned it might be in a dog fight with intel on new processors teledocs, helping people by video chat exxon meeting, yields 7% that's astounding. exxon was always viewed as the king of the energy space, nobody cares anymore. wall street keeps turning against the fossil fuels younger money managers believe this is a doomed industry. incredible when you have teenagers, and then they're in their 20s and they don't like this group and they're doing the junior work at these hedge funds, and big funds they don't like them final oi listen friday, labor department -- spike in unemployment, we could have another meltdown on our hands. i don't think that will happen
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employment tends will be a lagging i lagging indicator. if a lot of companies are cutting back because of the virus, that will be visible in the numbers. bottom line, get ready for another rough tale on saturday i expect -- shoes to drop this weekend. i was happy, i said buy it during the "squawk on the street," had a nice rally, but i'm realistic, just a nice rally. brian in florida, brian. >> caller: mr. cramer, good evening. i need a coaching session on dupont will demand for protective apparel add points to the word or punt this one. >> bunt. there's nothing there. that's one of their many businesses that company has and almost all of them are not working right now. it only neelyields #%. we need to see it lower. go to omar in new jersey >> caller: how are you, sir?
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>> doing well, how about you >> caller: i'm good, thank you hopefully you can help me out with this. unfortunately i got into tesla at an all-time high, losing 22 right now. >> right >> caller: need your advice as to what to do. >> well, remember, we don't care where stocks came from we care where they're going to obviously your basis is a corrupted basis but i think the stock at 600 is a buy and maybe buy some at 400. work that basis down that's what we do for the -- dotcom club. we're too enthusiastic don't fret, you'll be fine ken in new jersey. >> caller: hey, jim, what's the long-term outlook on 3 m given the recent low stock price >> i'm worried about p fas, meaning i'm worried about ground water, i'm worried about their exposure to china, i'm worried
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about what they have in health care that's not doing that well. as a matter of fact, candidly other than the mass business, i'm worried about every business 3m has i'm expecting monday to be another down day, be prepared for it and then we can rally "mad money" tonight, can we separate -- the other market challenge. will is that right is that correlation correct? i've got the ceo of the hazardous waste management company, we'll answer that question. and stocks had the worst week since the financial crisis. why i'm putting my money to work today and what i'm shopping for next week and what i'm selling that's for the trust of course and as global growth slows due to coronavirus concerns, is it time to circle back to the cloud stocks i'm eyeing one of the best, simple team, to see if it could maybe be worth buying, stay with cramer
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>> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com. >>erer trying to make sense of things for you here tonight in the face of this incredibly difficult but panicky tape i like to buy -- not sell it we don't advocate panic because it's not a strategy. two kinds of companies, the ones that are at risk and the ones that are really at risk. bounce is best that's whayot u must be thinking about this week. what a day we have your back and we'll get through this together.
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the stocks having their worst week since the financial crisis and every day this week bringing a continuing sinking of the averages the pace has been tough for the companies that need a strong economy to really thrive take clean harbor coas, the
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leading player in the hazardous waste disposal business. here's stocks that have phenomenal gains, one of our favorites. in addition to putting things back together after natural disasters they help industrial companies with environmental cleanup. it's been a very bad week for clean harvest, stocks down, the whole market is rolling over and in part because they didn't report on wednesday morning and the numbers were a tad off the company posted a top and bottom line miss, guidance was merely okay. that's not good enough in a market that's looking for any excuse to sell 21% pullback come on. after this route i've got to wonder if clean harvest is becoming more attractive let's check in with al mckinnon, the chairman and ceo, more about the core and where the company is headed. welcome back to "mad money." >> great to be with you, again, jim, thank you. >> allen, i know your company, your company is not a wildly cyclical company, it's a secular grower, particularly at times
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where there are people who are worried about things being clean and we know that's every day now. on the conference call, the analysts all seemed to take an angle that you have just a few projects and it's all cyclical what's happened here >> you know, jim, we had a great fourth quarter we came into the year, you know, with a real strong performance we had a great year in 2019 and really have a good year ahead of us and so i think certainly we saw some declines in the price of base oil, as we refine our oil and make it base oil we saw a price decline come out that morning and i think that had contribution to this and then the whole downdraft of what's going on in the market but certainly clean -- >> i was worried about safety clean, with a plus 2%, was that because of the differential? >> i think a little bit, yeah, because, you know, the price of oil actually started coming back up again and with -- 2020 we
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actually saw the price of oil actually two up and so as we manage our spread, you will see, you know, sometimes little decline on the safe clean revenue side on the waste oil side of our business but our base oil business actually grows and so this price decline that took place in february was quite a significant impact to us, i think, and that's where the market probably got spooked by it. >> and there you mention a particular kind of change in -- when you mention -- i just point you -- you're pretty granular. can you explain for a second about that 2020 rules? >> yeah, certainly all the ships, you know, over 55,000 ships in the world are supposed to be shifting over to a half percent sulfa oil from 3% that goes into effect in march of this year we saw a big decline in the value of fuel oil where we send our surplus oil so we really
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felt like we were going to be able to collect more of that used motor oil, refine more of it and actually be able to charge more for it because the value of the oil is really oversupplied because of that change on the other hand base oil is continuing to increase in value. because more and more of the refined products are going to be, you know, going towards marine diesel oil to meet that half percent sure fullfur that played out well for us. in january with the crisis going on with the coronavirus it's really put a halt on what's going on with imo 2020 right now. >> i did want to get to -- that is a very important business and safety clean is important. but you've got another business. i've spent a lot of time studying a couple companies, dupont and 3m and p fas. this is a huge issue can anyone else handle p fas besides clean harbors?
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>> we're well positioned, waiting for the regulatory framework to be formed so that we can really go out and help those customers with those forever chemicals that you're hearing about now that need to be properly disposed of. we've got the largest network of incinerators in north america, we've been expanding those facilities, added new capacity, put a brand new $130 million plant in down in eldarado, arkansas our environmental business is really strong right now and we anticipate it to be continuing to be strong throughout 2020. >> now, are you surprised at all, as i am, that even though the president is allegedly violently anti-regulation, your industry's regulation has only increase third-degree who increase ed this whole time? >> it really had, we're going to continue to see more business coming into our network as we see captive incinerators continue to wind down and the
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chemical industry to continue to grow we -- you know, we're just seeing a lot of strong volume coming out of, you know, the renaissance here in the united states with manufacturing and chemical production. and i think the low price of natural gas has really stimulated a lot of that development. >> are you fearful at all that with the low price of natural gas and the possibility that the government might worry about flaring, or the industry could be worried about flaring, the lower price of oil combined with the oversaturation of capital, is going to make it that perhaps that area is softer, and would that hurt your business? >> i don't think it's going to hurt our business. i mean, when we look at the oil that we collect, we're the largest collector of waste oil in north america, almost 250 million gallons. and so taking that oil and picking that oil up and charging customers to basically take that hazardous waste away and then rerefine it and recycle it, that
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whole sustainability effort that we have customers are really buying into that and buying our refined product back so i don't think what's going on with the drill count, drilling rig count out there or anything like that is really having any impact at all on our recycling business. >> good, so you are a definite esg. let me ask you one question, you've got some dangerous work you do and it's a little more dangerous than people realize and you don't know it until you get in it and have to do it and maybe get stuck in it. i saw this program where you did that in the undercover -- >> yeah. it was a wonderful opportunity for me to work with my employees, again back in the field, which is really where my roots were but clean harbor is back during 9/11 cleaned up all the anthrax that happened in all the news and the post office and we're called upon to handle these kind of emergencies so the
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men and women of clean harbors are ready to respond to any kind of event out there and i think, you know, being out there and working with them in the field, and hearing them firsthand was just a tremendous experience for me. >> well, you were -- i think, an inspiration to a lot of people because you dit get in to where it is deep and dirty and you did a good job i want to thank you you, allen mckinnon, chairman and ceo of clean harbors, not a cyclical company. i wish i could tell you to read the q&a, and you would feel better but the analysts have wrongly pegged this company. i think they're too young and don't understand "mad money" is back after the break. >> we are trying to make sense of things for you here tonight in the face of this incredibly difficult but panicky tape, i like to buy hysteria, not sell it, i like to panic, not sell it it's not a strategy. two kinds of companies, ones at risk, and ones that are really at risk.
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but bounce is best that's what you must be thinking about. what a day we have your back and we'll get through this together. ♪ ♪ ♪ don't just plan to retire. plan to live. an annuity helps cover your essential monthly expenses, so you're free to live
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that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk do i know where the market will finally bottom? honestly, no idea. this is a biological crisis, not a financial crisis i'm not a doctor or a public health expert. so i have no ability to really make the call. you know what i know i know the stock market and it tends to react to this kind of thing in some significant and familiar patterns for me i know what you can buy and what you can sell, doing it for 40 years. should have learned something. first off many of you unfortunately are out of cash. you're riding or not with a full plate of stock and you need cash here we put some money to work for
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the travel trust, we haven't touched the capital we had socked away when we went into this week. we waited and waited before we pulled the trigger and now the market's come down enough that we had no choice but to start buying like you had no choice but to start selling when it kept going higher. not taking credit, we'll get walloped monday. back to back days where stocks were falling, versus going back up that's highly unusual. we're getting closer to a bottom, a crescendo sell we probably may not be there yet. we could have more of a crescendo. you can expect more bad days and this weekend's probably going to be terrible, a coronavirus outbreak and continues to spread may even see a world leader get sick and that would be disconcerting. how about if a world leader died this is the time to height grade your portfolio, regardless take some losses and move to better stocks. if you own shares in a company
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that's involved in travel or leisure or autos or housing even that company will probably miss its numbers and the stock will, indeed, get hammered i know these groups have already been crushed they doesn't mean they can't get crushed some more. they should be sold. many bounced today, opportunity. once you've raised cash, what do you do with it keep some om on the sidelines if there's more bad news about the virus. obviously there will be. but the rest, you can put it in some gold stocks, they've been crushed, got really ugly today i'm thinking about gold run, dr. mark bristo, best gold miner there is swap out of a hotel or cruise name cruise names bounced today cruise that bounce and move into high quality drug stocks, like a couple that the action plus.com club recommends, the better run food and beverage plays, like
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coca-cola, if you own an oil stock, i can't help you. the whole group is cursed, especially with the price of crude at 45. don't try to be a hero in the oil patch. cut your lasses. lot of you are attracted to the yield. i'd rather own a supermarket staple or biotech. moderna said they've got a vaccine, it's ready to go. silenced by the president he seemed optimistic that vaccine could work faster than people think. stay at home players, teledoc, ring central i like verizon and att cash flow is excellent it's fallen way too far. verizon steadiest out there. pick one, buy one. but i'm urging you to have a lot
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of cash on the sidelines and put money to work gradually. there will be more bad stories, buy slowly in stages next week is stage one, more stages at other levels if you don't have that cash, sell something like behad this afternoon, why because i think you want to have the cash to make good, if not trades, but investments when this is almost over. angela in new york >> caller: jim, i'm calling about starwood property trust. i know the stock's been going do you know down but with a dividend yield of 7.9%, is this a good buy >> i think he's a smart man and saw a lot of this coming and the answer is absolutely i of course want barry to come back on because he's so good but, yeah, that decline seemed to be unwarranted and i think that he's seen it all. he's an old-timer. he knows what to do. this is the time to high grade your portfolio, people,
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especially into that bounce we got this afternoon still keep some cash for next week because we know there will be a lot of unexpected negatives. much more "mad money" ahead, as companies continue to sell, is it worth eyeing the clouds for potential buying opportunities before the coronavirusout break started taking up the oxygen in the market in the room the most exciting things i saw was the sudden embrace of sustainability and after another dark day on the averages, i'm taking all your questions on tonight's edition of the lightning round, so stay with cramer. vo: while other candidates argue
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about health care, mike bloomberg has a record of doing something. as mayor, he protected women's reproductive rights. expanded health coverage
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to 700,000 new yorkers. and decreased infant-mortality rates to historic lows. as president, he'll build on obamacare, cap medical costs, and will always protect a woman's right to choose. mike bloomberg: a record on health care nobody can argue about. mike: i'm mike bloomberg and i approve this message. it was a real texas chain saw massacre this week largest selloff since the financial crisis i like to look at companies in growth industries that should be relatively immune to the virus and that have recently had great numbers, companies like the cloud based software -- one of our cloud princesses reported --
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in the last week stocks pulled back roughly 70% from recent highs. on par it's been a fabulous long-term performer. doesn't mean it will bounce back immediately. earlier this week we had a real chance to speak to mike cannon brooks, the co-ceo, does best remotely, mike, this was a blowout quarter. what are they doing with you that makes it more efficient than what they were using before >> great question, jim and thanks for the nice words. we continue to solve people's team collaboration needs so businesses increasingly about solving human problems, people in workplaces solving incredibly complex problems together and across our family of products that's fundamentally what we do,
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we help businesses follow complex people problems, collaboration and other things the more problems they have the more of our software they'll need. >> there's a great presentation on your website, and the theme is that you are power to the people what power are you bringing to the people >> it's as i've said, a very large bank going through a high degree of transformation as they try to become much more digital and they've put us at the center of their stack from transforming tens of thousands of employees and how they work. >> go through people saying, hold it, isn't that what slack does, no, they're not slack. isn't that what excel does, and i think you're superior to that product. >> it's a great product, i think exel has been used for far too many things, you can use it to do anything.
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we're building tailor made products to map to processes and collaborative work flows within organizations, which excel wasn't intended to do, if you're doing finance and accounting work, stick with excel. >> people know lulu lemon and they probably were trying to figure out i don't know a and z, what do they use it for? >> they use it for teams across their organization through the technology sides of the business, software and i.t., in terms of building, lulu lemon is powered by technology at some level and cross border collaboration. >> it does the same cross border. >> globally. >> square, one of the most te technologically inclined companies on earth, reported a terrific quarter, decided to use you. >> they've been a customer since maybe 10 or 20 employees. >> and adobe.
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>> yeah. >> sometimes i feel like you're the software company that people don't know is that because you're not promotional? i know you're not because even on your website you're not promotional, you just tell a fact or is it because you're down under? >> look, i think we're just pretty straight up with our customers, we spend most of our time trying to solve ever more and increasingly complex and large problems for the customers and we've always believed if we solve problems for them they'll tell a friend and they'll buy more software the following year and that will end up in a good outcome for us and shareholders. >> the people bhokd use the most technically inclines, nasa nasa has chosen you. >> yes, nasa we have a bit of an older story, but every line of code went through some of our applications at some point so we've kind of helped in a very small way send things to mars, which was pretty cool in the early days of the company for sure. >> one of the things i like about you guys, candidly, is you
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are a one one one company. how did you become a one one one company and tell people what that means. >> sure. so we have had a foundation for an awful long time in terms of corporate social responsibility, and specifically fiphilanthropi contributing to communities around us. with sales force, a few years ago now we formalized that into a pledge 1% foundation, we're an example company but anyone can join as a company we give 1% of profits to the foundation. it gets 1% of employee time. and has 1% of equity in the business so foundation is done really well as well. >> are you doing that at all to help the terrible fires crow had in australia >> i don't know if the foundation has done anything specific with the fires, no, that's not true. we did, the lasting foundation made a $1 million donation. >> i don't know if people now how big it was down there? >> it was vr vast, very
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impactful. >> amazon, they use you. >> yes, we have a lot of fantastic customers using us to power their work management, their digital work flows as they transform. >> are you ever worried that some -- we always hear service now, they want to do work flow management are you worried that one day a service now, which now by the way has bill mcdermott, quite a player, is he going to come after atlassian? >> bill's a good guy, we're on different sides of the market. we certainly intersect a little bit in the i.t. space, increasingly focused on that space and have fantastic offerings there. we have a vastly different business model than they do. from the point of view of how we would be found by a company and a customer and how we would grow within that customer would be in a vastly different way from a business model point of view but also from a profitability and that is shareholders.
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>> most companies are being hurt by coronavirus, if i want to work at home i want my zoom video, and i presume to be -- want my atlassian, i want to be part of the team you're a company that might not be hurt by these terrible fires. >> it's a worldwide thing if it's not already and we'll see what happens for sure, from a customer point of view our software allows people to work digitally i would say. if that's in a building or working from home, if you're accusing our pliks you don't have to change your work style so i think that's going to help us from a business model point of view, our business model is very stable we sell very large numbers of very small transactions. historically we've had a very stable business model and from the point of view of a few people asked about china, we have very small -- like no meaningful exposure to china in terms of customer base we'll see what's happening most of our focus internally has been on employees and managing travel
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we have a large global company and making sure we don't have any employees in china people are smart and we're following the advice. >> people talk too much about zoom, i love zoom, but maybe they should be thinking about atlassian too. >> zoom is a good partner of ours. >> very good partner of yours. that's mike cannon-brooks. i've always loved their symbol, team thank you, sir when you look at the critical issues facing our world, what do you see? we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world
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>> announcer: "the lightning round" is sponsored by td ameritrade it is time, time for the lightning round. and then the lightning round is over are you ready? starting with hassan in new york >> caller: hey, jim, we all need a boo yaw option this week my stock is baxter international. >> bad quarter like the company though, as it's come down it's a
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buy. i was surprised how weak the quarter was though v vincent in pennsylvania. >> caller: jim, how you doing tonight? >> couldn't be better, thank you. what's up? >> caller: looking for your thoughts on parsons. >> cybersecurity, i like group point a little better but that's a good one there. chris in florida chris? >> caller: boo yaw jim, aimg, fda approval with peanut allergy treatment. >> i know, but that's now -- look, i'm not saying this is a what have you done for me lately business, that was their thing and then when you get that, get approval, they sell off. bruce in new york, bruce >> caller: jimmy cho. >> you bet. >> caller: how's it going? >> my daughter said enough with the chili. came back with a vengeance.
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>> caller: i need your help, gates and -- the ipo is february 26th, i paid 26.30 sdgr. >> yeah, i've been watching that one. that's an interesting situation, i kind of like it. computer programming, got to do more work on it because it's unknown, but i've been watching it all week and we'll come back to you dominic in california, dominic >> caller: my grandson has a question for you >> caller: i'm a 14-year-old investor, my portfolio is tech heavy and i'm wondering if you think i should had warren buffett and -- to my portfolio for less risk. >> it's been an underperformer but i'm never going to go against warren and your time frame is going to be right, and it's pretty ugly chart but go ahead, do that, and i really -- 14-year-olds getting in, that is
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the way of the future, i love it steve in wisconsin steve. >> caller: jim, a long time listener, envy your energy and appreciate you sharing your knowledge with us amateurs. >> thank you, thank you. >> caller: a few shares of mic. >>-m-i-c-k-e-y, it's good company. when i see that yield it's a well run business. that is the conclusion of the lightning round. >> announcer: "the lightning round" is sponsored by td ameritrade ♪ ♪ ♪
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officially hitting the us.virus man: the markets are plunging for a second straight day. vo: health experts warn the us is underprepared. managing a crisis is what mike bloomberg does. in the aftermath of 9-11, he steadied and rebuilt america's largest city. oversaw emergency response to natural disasters. upgraded hospital preparedness to manage health crises. and he's funding cutting edge research to contain epidemics. tested. ready. mike: i'm mike bloomberg and i approve this message.
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before the coronavirus outbreak triggered a marketwide melt down the dow dropping 12% this week alone, the big was isg investing. we believe in it on this show passionately after decades of ignoring the stuff wall street cares about sustainability i don't think that's going to change anytime soon and that's why we're on the hunt for companies that can benefit from this new theme, companies like cannon arm strong, hasi for you home gamers. real estate investment trusts, energy, renewables and other sustainable infrastructure -- climate change will be a global ca that'
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catastrophe. over the past five years arm strong has given you annual return of 12%. over that exact same period and absolutely crushing the energy stocks does this stuff make sense in this market? let's take a closer look with jeff icle. he got a better read on wall street's newfound -- in sustainability, and what it means for business welcome back to "mad money." >> good to see you. >> we had etsy on yesterday and they said we've been doing stuff for the environment and it turns out to be good business. the narrative, though, is that when you try to do sustainable investing it generally goes like this, it's noble but at the end of the day the returns aren't that good. that's wrong, isn't it >> inconsistent with our investment thesis. we think in a world increasingly defined by climate change we're going to make better risk adjust returns investing on the climate
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change line. seven years into it as a public company we're doing a good job of proving that. >> now, dynamic pipeline, behind the meter, grid connected, sustainable infrastructure, can you give us some samples of all those? >> sure, first, let's say we're the first public company to invest solely in climate change solutions, and for us that means it reduces carbon, or it makes communities more resilient. >> right. >> so in that context things that reduce carbon, energy efficiency, wind, solar. things that make communities more resilient, storm water remediation, vacuuming water when you have storms. >> you're the man i need to ask this to. i think there's something going on in the financial world that the carbon stocks are doing so poorly, i think it's exactly what you said. when you talked about if you can reduce carbon, if you increase carbon they're not going to buy your stock, are they >> i'll speak for our investors, it is a group that is very
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focused on making money. not getting a subsidized return. not doing anything but making money. >> okay. >> and we get asked those good hard questions all the time. >> well, i mean, i think it's fair to say that exxon had a 7% yield today, exxon was once the premier company in this country, one of the top five companies, largest companies, even reaching these ten years ago but that is counter to what you do, and yet you still give a good yield. >> absolutely. >> well, when i look at this, i'm trying to figure out why -- who are still doing these projects in an era where president trump doesn't care about these things and likes coal. >> financial markets are quite different than politics. we're a 40-year-old company. we've seen a lot of things come and go in terms of the politics and policies of climate change we have 20 year, 25, 30 year assets these are going to be multiple
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administrations. we invest in a way that doesn't require supportive federal policy if we want to fix climate change that would be terrific to have some supportive policies like a carbon dividend. but otherwise our business is economic, social security making people money when we make an investment it saves the user of energy money. >> is that how you did -- your average 25% versus 12% that must mean to me that you have a consistent pipeline, that every year there's more and more business, or else we would be concerned that that is -- that that is a return that's gone off. >> so if you think of the -- if you look at investing in the energy sector, the transport sector and the agriculture sector and you lookit through lens of climate change this is a largest investment opportunity imaginable these are three outstandingly old traditional industries that are getting changed and
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disrupted because of climate change so this is a terrific market to invest in. we love that microsoft wants to put a billion in and bezos wants to put in 10 pl. not for nothing. we did a billion and three in the last year, and 2.5 billion in the last two, drops in the bucket for the amount of capital required. >> i'll play devil's advocate. popular president. completely disagrees with you, thinks there is no such thing as climate change how do you deal with that? >> our investment thesis is based in statistics, physics and economics. you don't have to believe in climate change to believe our investment thesis. it's that simple. >> all right and therefore, an outfit like black rock, 7 trillion, when they say, listen, we should care about climate change, that's good for you. >> it's absolutely brought a tremendous amount of focus and discussion the equity sectors to
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what we've considered the essential issue of our time, climate change talking about a fundamental reshaping of finance though, i think there's three things that have to happen the first is that wall street banks and asset managers have to ask a simple question, is this investment accelerating climate change or slowing it >> yes, yes. >> the second thing is they need to publicly disclose every one of their investments not the investment, but the carbon impact. >> i like this. >> and third, we use a metric called carbon count because if carbon counts and capital is scarce we should be making impactful investments. the way to do that is to measure our carbon count for every investment. >> okay, what i'm going to do is work with your company on this. i'm in. >> great. >> our show as changed what you said is really important. climate change is the ultimate thing that we face and we have to -- >> it's a great way to make
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money. >> fair enough jeff eckel, we recognize that this is an issue that the clock is ticking ♪ don't just plan to retire. plan to live. an annuity helps cover your essential monthly expenses, so you're free to live the life you want. find out how an annuity can give you lifetime income at protectedincome.org and when you open a new brokerage account, your cash is automatically invested at a great rate.
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that's the power of edge-to-edge intelligence. look, consistently i got one thing from it, i'm there for you. these times i am playing for you. yes, these indeed are our super bowls, our world series, and i want to deliver and yes, i get up early and i work too late and all that other stuff but for you, you get every bit of my knowledge. and i will be wrong sometimes. but when i get them right, you have to understand, i'm just trying to do my best for you we always get through these together will this time be any different? no we'll be fine. i always say there'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.
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"markets in turmoil" starts now. ♪ good evening, everyone welcome. on day 61 of the coronavirus crisis, i'm tyler mathisen another violent reaction from stocks today, and this just in, a new case of coronavirus has just been confirmed in california >> another wild day on wall street >> take a look at the dow's daily point drops. they were big and they were severe >> dow fell 1,000 points

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