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tv   Mad Money  CNBC  April 19, 2024 6:00pm-7:00pm EDT

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>> steve >> xlon said electricity demand is up 900% in chicago due to a.i. demand. >> when? >> tomorrow? soon, soon, veryoo sn. e my mission is simple, to make you money. i am here to level the playing field for all investors. i promise to send and help you find it, mad money starts right now. i am cramer, welcome to mad money, people try to make friends but lundestrom to make you money, is my job not just to entertain, put the dow and s&p and nasdaq in a context, call me, 1-800-743-cnbc, tweet me at jim cramer. the dow advancing 11 points,
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the s&p plunged 20% and the nasdaq plummeted to .5%. one of the worst weeks for the s&p since march 2023 and the worst week for the nasdaq since november 202 >> house of pain. >> there's a real bifurcation going on, anything nondata doing fabulous, and tech, you can to start buying tech, you need to know yourself to even by non-tech, who is doing really well and who's doing badly. the reason, i can't just be israel didn't had a major target in iran that everyone saw as retaliation silarszka by stocks, it can't be that oil pulled back from heiser netflix at a subscribers or america's best are reported good numbers and others bad, nasdaq is disastrous, a sector, few and
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far between, and old-fashioned, and take itself, and getting some tech earnings, just a butcher block, let them come down, and in the meeting, tech is not worth this address. >> the house of pain. >> it will be someday, right now just let it breathe, next week is a huge one for earnings, but starting the game plan >> that's right. the end of the week, this is where we get the personal consumption expenditures index, the pce, if the number is too hot, and he gains we got earlier this week probably proved to be ephemeral. if the numbers are cool, most stocks are fair game, i don't know what it will be but i do
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know this, a significant impact. and only detect market, the rest is not oversold. it's when the rubber really hits the road. frankly, it was okay, if they are big. a good example, verizon, and seems to of gotten control the speech, 6.6%, the actual growth of the business. to still companies, phenomenal stock, the radar is really unusual. could've bought you a steal, the steal deal could be good, both could be very strong, tuesday's another one. kind of like gm.>> cheapest non- financial stock, the 500, thank you. and she's the ceo.
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monstrous and staying long, the aerospace, what upside, it's substantial. then why g aerospace, i think he does it, many phenomena come back from engine trouble, the release about what was basically recall and started with catastrophe and should of spilled opportunity, stocks come all the way back. still out here, something announced is big, you know what, it is good. and he's doing a reorganization to cut costs, being talked about on the show, ever since that appearance, making me think this could be the beginning of a major run for can be, like a both before and after the earnings, i think the turn is real. coming from spotify, the
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machine, spotify is all about subscription revenues, something i love, subscription revenues were so sticky, tuesday night is about tesla, we've heard nothing but negatives this quarter, everything seems weak, with the cash flow, having recalls. and can play rabbit out of the proverbial hat, i hope it is just so driving. >> i don't know a way out of the tesla jam, elon musk is smarter than i am. starting with the controversy, it's not me, as above me, boeing, how few planes can they produce, this negative, maybe they have to buy spirit air systems to control the fuselage. give us a plan of succession, i can't be business as usual, that won't cut it. we do have the investing club meeting at noon on wednesday, after judy here and join the club, the monthly meeting is worth the price of admission. working on it this weekend. after the close we hear from tech, meta-platforms and it
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being a quarter, a death sentence, and earnings in forecast, and a lot of levers to push, and much lower basis. please wait, and grading the stock, and tech might be oversold for the time we get there. and service now, and they will deliver, deliveryman, and non- consequential, putting up great numbers because is clients trust him to install generative ai platforms and show them, and immediately, they will see the good numbers, integrated robots, and the best menu, and
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own the stores, it's not a franchise model, the stores are going up in average unit volume, making it thursday. continuing the run through the low 200s. the doubting thomas alice, and the first movers often the first move when it comes to that, and might need a breather after the scorching run. when he speaks, surprising stories, with the acquisitions he's made, with immunological disease and cancer portfolio. big big big, performing high fixations, a lot of those were 22 times earnings, why the difference, business to business behemoth with an amazing integration of artificial intelligence, but never about dashing off of it,
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advertising base that is much less consistent. precisely the stock performs when it supports that reports, consider yourself warned. and tech, and if tech is bad, friday, is a day where we see the oil companies, exxon and chevron, do they take advantage of what rusty brazil calls the you were brand, i don't know but they sure should have. the bottom line, it is a tough week to hold together were sellers seem to blow your head off every time they lifted, especially when it comes to tech. time to stay cool until we see the cool inflation, without that, when you down by the blue chips and not tech, not yet, chris in new mexico. chris. go and chris >> what's happening serve. >> happy, what's going on. >> working all right.
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>> all right, what has stuck quick >> cosco, should i keep it quick >> cosco, miami buyer, a blue- chip stock that you want to own. johnny. continue. >> johnny? >> this is johnny. what is going on? >> not much. jim. first, happy birthday to my beloved kiersten, second, thoughts on pfizer, a good start to continue in a basket of stocks. >> with the yield, if you want to bring the old stock, murphys, it still old, that would be the one i would do, frankly pfizer doesn't have enough in the fight. let's hope that deal starts paying off for them. cooler inflation meeting, remember that the market is tapped, you can afforded not yet, it is difficult to trust. the used-car sector has been
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tough to figure out, the car vending machines, the companies continued us -- to disrupt the space, pretty serious reservations about charles schwab, sharing where i come down, one of the small-cap names and should that be it, the ceo, stay with cramer. >> don't miss a second of mad money, follow at jim cramer at x, and email at madmoney@cnbc.com or gives a call at 1-800-743-cnbc miss something, had to mad money.cnbc.com. your record label is taking off.
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♪ this took about one of the greatest and fastest turnaround stories i've ever seen, the e- commerce platform for used cars, with jegen used car vending machines, pick them up in person, back in december 2022, a lot of people worry that they were headed for bankruptcy, they managed to raise money an incredible comeback, the stock is now up more than 1900%. a chance to check in with ernie garcia, the president and ceo to talk about how this whole thing works. how did they pull off, take a look >> the first earnings, pure joy to see you in person. >> thank you. >> what you tell us where we are, it's a lot different from a typical car dealer. >> carvana vending machine, customers online, select from thousands of cars and picking only one, if they choose to come and pick it up, to going to their house to go to this place and they drop a coin in the slot, his experience the tell her friends about and we think it's pretty great.
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>> it is disruptive, give me three reasons why i would want to go and use a vending machine to buy a car? i will start with the one that doesn't show up in models but it matters and it is fun. people are buying a $25,000 car, not some it happens too often, we want to make it fun and memorable and experienced their excited about, ginny car is always exciting, sometimes buying one can be tough, we wanted to be the whole experience and that's what we do here. >> it is the most disruptive model, i did buy from carvana, i had to take it back, this is to leave the lot, it is worth a lot less but i got my money back, how are you able to afford doing that quick >> i secure whole business model is set up to give customers selection, low pricing great experience and we do that was something totally different, infrastructure a total different way in our own supply chain and we recognize that customers are buying something that extensive online, they will make sure they're confident when they buy the
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car, by providing the return policy they can go into it with confidence, not that many use it but for those who do it is valuable and gives people confidence to buy online and save money. >> with the stock was going down, people said the goal of be the largest and most profitable dealer was a sham and laughable.>> when it comes to coming out of the abyss, can you become that larger part of the deal? figure and the whole business model was built for another customer experience with the model of scale, we've always been a company that of always really hustled and ran fast and lucky enough to become the third fastest company to become a fortune 500 company, a bunch of people hustling hard, and 2022, when the wind started blowing against us, it was tough and we went through tough times, and the best spot we've ever been. >> coming up behind you, but happenstance, now i'm not going to pick of these guys and pick
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on rbc or jeffries but listen, it's their case, increasingly unprovable, with the sector reform, and from there to the internet darling, people who are paying a lot of money, what did not see about you and your company? >> in fairness to all of them, i think they do good work and following us for a long time, as always the case is sometimes positive and negative, our job is to make most the time positive. was given the ometimes and financial models his business fundamentals and the people that make the business work. our business fundamentals, delivery and experience the customers love, 18 with backs against the wall, we hustle and those things generally lead to those outcomes and that is what we are doing. >> a better outcome for a company like yours is that you have to come in under people's costs and yet make a lot more money. what he told you could do that
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but the supply chain you have, it's talk about that. >> sure, without giving too much background, the way that automotive retail has evolved over time, tens of thousands of dealers out there do things in different ways, buying a car that way.>> and we have different views. sounds like that, will be a great option for you. we try to build a business model that used for structured differently, thousands of acres and 500,000 parking spots run the country any logistics network, we've got to website, during the entire process and get approved for this, and go through all of it, the business model required scale and it allowed us to pass it on. >> what are people buying, i keep hearing ev's are out, there like hybrids, tell me what people are coming to see and buy? figure people like different things, all the options they want, they include hybrids, electric cars, and they went
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through the heavy conversion cycle but we view it, as the kind of the horse out of the barn and that, electric cars are coming, pretty fast and it percent of new car sales and that will flow into use eventually and we focus on giving customers all the options>> you don't think it's over quick >> know we think electric cars are coming. >> who is a, the person who buys, we watch car commercials during football games and we sit at school, but we come in and we don't, i think you are people that are requiring by going on the web, googling and trying to find a car in a really comfortable with this whole thing, was a demographic, initially what you're doing and now quick >> the demographics use all the ways you expect, skews a little younger and the direction of election -- electric car an affluent and female, but
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generally speaking, it looks like the average american customer. we are reaching them in the ways that most people would, tv advertising a lot of google and other digital channels importantly we try to deliver great experiences at places like this, were they tell their friends about it. >> i first heard about you, i go on i-95 in philadelphia, there it is, and i said to myself that is all artifice, come on, but it isn't, is it quick >> another thing that doesn't fit any business model is cool. it is cool to be here and come here, your kids pull up the phone and their excited and share with her friends and we can deliver a lot more cars of the small location in a more trusting way than most dealerships can, we can be efficient and fun and analytical. >> do you see instagram suitable do? yes. >> it is a hard thing to do. >> let's talk about you.
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>> oh. >> and over, a great run, have it worked out, the disruptive model was good, take me back to when the stock was there, by the way, and and take me there. >> and most the time it is out of the public eye. before-year-old company in 2017. we went through struggle in the public eye, i think what i was really impressed by, was the entire team that it put so much work and effort into carvana over so many years, in that moment stood up and recognized the narrative one against us but the fundamentals are the same and we will keep charging. pretty great job in the last couple of years. and better business because we went through it, not something i would wish on anyone.
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a lot of times it takes pressure and that's what we did. >> and that matters very much. now, one of the problems that we have this problem of inflation, i view you as an inpatient fighter, we got car insurance it is been sticky, and affordability because of interest rates, can you give me the federal reserve what they think of carvana quick >> what we're trying to do is build a business model that is different, cutting costs of the system and gives room for a great financial return as well, generally speaking that means customers can save about $1000 versus buying from some of our other competitors. comes from the cost of distributing the car, it doesn't change the underlying price of the metal but does put that back in our pockets.>> and a business person, if they took
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the rates up, what would it do to your business?>> it is a dynamic place, it's been around for long time and adjusted to different environments, and 2021, interest rates started going up, and they went up 50%, we would love for cars to depreciate, makes it more affordable, but the world we are in, do the best job we can to adapt. >> thank you for all you did for shareholders, it makes stock investing good. >> thank you for believing in us >> that makes it a lot easier to believe, president and ceo of carvana thank you.
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sometimes the market will get a stock so catastrophically wrong, that you're almost wondering if you're losing your mind, because the explanations don't make a lot of sense. but if you've done your homework, that can lead to some incredible buying opportunities.
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take charles schwab, the retail broker's firm that i started aggressively year ago, getting caught in the crossfire last spring, schwab's shares went to the mid-80s to the mid to high 40s and the lows last spring, almost cut in half for heaven sake. a person seemed vulnerable, not a brokerage house but an amazing franchise. i told you repeatedly this was insane, that's why it makes its money for heaven sake. and helping putting the clients accounts, and sharing similarities with some of the ones with unrealized losses, plummeting in price that the fed started tightening, never a good reason to sell the stock, can hurt you as long as you're planning to hold them to maturity. only problem for banks that are running low on cash and forced to sell bonds early. the internal bank was frankly a
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sideshow, the brokerage business would thrive in a world with a strong stock market and that's what we got here and 55 late march of last year and double down, and a little bit more than a year ago. schwab is now trading at $73 and change, and especially in february mark, monday morning, schwab reported excellent quarter, overlooked, setting the stock up nearly 5% this week. even as it dropped 3%, tonight here's what i want to do. a few minutes updating you on the company that has power three wall of worry and made it to the other side.>> they know nothings going >> first-quarter results on monday did not blow your socks off, delivering a slight top and bottom, and 4 billion, and
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down your beer but up 6% versus the previous quarter, and in the earnings, even the adjusted earnings were down 20% year- over-year. i know it looks bad but the earnings were up 9% from the previous quarter, year-over- year in the lead quarter. even though they were not that impressive, there was a lot to like. when i recommended the stock i said even though they started from the internal one, they saw major inflows of cash to other parts of the business, that's exactly what happened, the money market funds could benefit in they have, the average client asset has increased by 50% from the first quarter of last year. while the revenue from the money market funds has grown by 45.5%. if you include the equity and bond funds, collective trust funds and mutual funds, it jumped by 17.6% year-over-year.
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and the revenue from all of these other ones is of more than 29%, total client assets of 20%, schwab is seen report net asset growth and 11 of the past 12 months, bringing in plenty of new business and that wasn't supposed to happen, remember? the quarter they reported, 95.6 billion and coordinate new assets alone, must have of which arrived in march, the open 1 million new brokerage accounts of the quarter, incredible, nobody expected that, in a couple of more things jumped out at me, layoffs that were widely seen as weakness and concern, i told you it was not true and not to worry about it, because schwab merged with td ameritrade a few years ago and the restore process of rationalizing the workforce, actually good news for shareholders, not so good for people lost the jobs, lisa layoffs, the core profitability metrics are turning higher
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pretax profit margin jumped 500 basis points versus the previous quarter, that's outstanding . top concerns that schwab had, schwab bank, can be done is expected from 325 points of million at the end of march 2023 to 269.5 million at the end of march 24, 17.3 decline overall, not great that is not a bank run. some of the more reasonable bears last year did miceli think that schwab would have a plan for the outcome like a run of the bank with this process called cash shorting, the process of people moving deposits around, searching for more yield, the skeptics that it would hurt the business but some said they were right, the net interest revenue was down 19.4% year-over-year the latest quarter. some of it comes down to the fed rate hikes and the action the bond market which sets
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longer-term rates. for financials, anything means they're talking about the difference between what they pay you, the client to hold onto their money. and what they charge clients for loans. when you are a brokerage firm, usually talking about margin lending, at this point the cash shorting processing still played itself out. while the net interest revenue was down substantially year- over-year it was up for 20% from the previous quarter, net interest margin expanded by 30 basis points over the previous quarter, because they have been able to roll out some of the more expensive sources of funding. less cash from retail certificates of deposit and making more money on the broker side. that is what we want. the bottom line, a year ago, people were tearing out there hear about charles schwab, is enough that it would fall victim to a big fraud even though it's a brokerage firm that has a pretty small internal bank, even if there was no run, we were told the reverberations would crush their earnings and
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the stock and i told you that was nonsense, and i hope you listened, because the stock is rallied from the low 50s to low 70s and schwab is putting up very encouraging numbers. the truth is they never went away, it's just that the sellers did not know what the heck they were doing. let's go to jr in washington, jr. >> boo yah. >> was going on with you my friend? >> same old, working hard. first-time caller. >> okay. >> my question is, i would like to know the stock -- >> this is a seven dollar stock, incredibly of interest to people, and and be able to show consistent profitability and stop having to put stock out. and and so overwhelming to people and people didn't see it
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coming. explaining that all very well and see what he said, the cr investment ceo time the truth. the truth is they are always doing well, the sellers did know what the heck they were doing. we know that travels back. and then ansley way cut out the obvious one. the aviation services, aar, getting your read on word is headed, sometimes the premarket action. and and by the way by the way, procter & gamble. the convictions to elieve the stocks, altar calls in rapidfire in the lightning round, stay with cramer.
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with customers i figure this whole issue gets more attractive every time there's a bad headline about production qualities, they seem to be said the endless, ar stock is already over two weeks ago, and let's take a close look with john holmes, the chairman, president and ceo of aar corporation, see what they are up to. one hot stock and in a tough market, esther holmes, tell me what's going on. >> thank you jim, so good to be
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here, i've been a fan of yours and the show my whole career, so this is exciting to be here to talk about what we've got going on today. we've got a lot going on today at aar, independent provider of aviation services and really no other company in aviation like ours that is independent, meaning were not part of an oem, like airbus or boeing and an airline like lufthansa, no other company does the things we do and integrates them the way that we do. a couple things about us. and the billing and have company, founded back in 1955, coming up on our 70 year anniversary in chicago, 6000 people on the team and operate about 30 different countries. we do three things. one of the things i'm most proud of is the work that we've done, i know you know the company for a while, the work we've done in recent years to really focus the portfolio down to the three core things that we are the best at. the first to selling parts, we
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sell both new parts as a factory new distributor for a number of manufacturers, and then we also sell used parts, one of the largest in the world for selling used parts, that means that we are buying dozens of aircraft and engines each year, turning them down, repairing them and reselling them into the market, that is become a real important business given the oem supply chain challenges you mentioned. >> let me stop you there, the oem changes, in other words let's say there's a problem building plains, that means the existing plains have to run much longer and have to run many more times, which to me means that aar is great business. >> exactly right here we are benefiting from that now. we expect to benefit from it in the future as well. anything that prolongs the life of the existing fleet, which is core to us in terms of our existing capability, is good news, the production challenges
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outgoing you mentioned in the engine reliability challenges, dcf that are a that extend the life of the existing fleet and tip those aircraft into their next maintenance visit, and that's what drives a lot of business. i want people to know that you are faa approved, in other words, if a is not as happy with some companies but you do your work, and i have to believe that you are the good housekeeping seal of approval that the faa would actually love you to be in there working on the doors and parts because they know you're not beholden to specific companies? >> absolutely. and a great segue, the second thing, one of the largest of the world for utsourced maintenance, maintenance of whole aircraft, heavy maintenance and individual aircraft parts which is called component maintenance. the heavy maintenance segment, the largest in north america, and number of facilities in the
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u.s. and canada, were kind over 1000 aircraft a year in our facilities, for the world's largest airlines, and alaska airlines is a big customer, and deltuva, all big customers of aar as they turn to outside providers of maintenance over the years, it's been a big source of growth for us. >> and the capitol, and the product support business, right in the will house, integrated synergistically and fabulous. >> and actually right, this is a business we've had her eye on for some time. i've been ceo for about six years and this was the fourth written offer that i sent the ceo of triumph, dan crowley, to buy this business, because to the point you just made, we all felt it would make tremendous sense for aar, leaders in the world in terms of parts sales and distribution, leaders and
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heavy maintenance and not leaders in the area of commode -- component maintenance and triumph was. adding it to the portfolio creates a tremendous amount of synergy, both on the cost side, their operations in our operations, an opportunity to rationalize the footprint and take out some costs, but also on the vertical integration side, usm business, selling the aircraft and tearing it down and repairing it, millions of repair work can be in sourced inside now that we are the owners of triumph. we believe we can really sell triumph services, a great set of capability, incredible sales force and we believe we can really grow the business. and it is accretive to the margins. >> one last thing. a lot of people talk about worker shortages, nothing we can do it blah blah, that is not your approach the situation is it?>> yes.
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and in terms of workforce you're absolutely right. it's been the focus of the world, and the focus of aar in 2018, we started to feel the effects of the shortage of the mechanics, the pilot shortage rightly so gets a lot of attention. and the industry for some time, early earnings calls back then, softness in the maintenance business, because we couldn't get people and being asked questions, you can get people send unique but it turned out to be really good for us, and really got us focused on this issue. and was schools a number of scholarship programs around the country, we doubled down our efforts to recruit veterans in the industry, 20% are veterans, a great source of talent, really focusing on the workforce development issue, early on, back in 2018 has
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worked out really well for us now. the people that we need to meet incredible demand for services that we see and also are expanding facilities and a line on talent to support the expansion. >> doing everything right, it big position when i was a hedge fund manager, i want to thank you. thank you with it on the show, influencing you positively, and aar, thank you so much for coming on mad money. terrific. mad money is back after the break, the president and ceo of aar, his ticket is easy to remember, air. john holmes. hit us with your best shot, electrifying lightning round is next.
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lightning round is sponsored by charles schwab. it is time, we take you there, on friday, lightning round. in the lightning round, are you ready steve, lightning round, start with bill in massachusetts, bill. >> boo yeah jimbo. >> exceptional, how can i help. >> i want to start out with first bank and you and your staff in the incredible annual meeting, it was a great time, i've never been to wall street, and get a pitcher and i want to thank you so much. >> and the team is fantastic
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and how can i help you today bill? >> a company, and 36.6 billion, and five 26 billion, honeywell >> and this particular case, technology, and honeywell, can deliver, and show his stuff, been one of the worst of the industrials, a good company, i'm surprised, time to make a move.>> and a quick question about the technology, have uncovered much on, i would like to know what you think of eye on, or q or any other company? figure technology is in freefall, that includes the company's that are actually doing incredibly well, companies that are losing money like this, i have to say sell. john in florida.>> master jim
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cramer, thanks for taking the call. >> sure, what's going on? figure no place there. >> and it has been replaced by ramaswamy, and i don't have the conviction to be able to say this in the market that is time to buy, it is too horrible a tech market. go to pete in delaware. pete? figure jim, how are you. >> good, how are you. >> i'm doing good. and i wanted to get your opinion, guidewire software, and business, one comes to software, and a hedge fund, sidestep, the lower price, doug.
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>> uber. and you buy some now and a little bit lower, and i will do it. and that is the root lightning round! >> sponsored by charles schwab. coming up, do you have what it takes to thrive in the markets? creamer shares and investing club lesson that you won't want to miss, and that. trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more -
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people can't resist taking their cue, and even though the
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action is quite wrong. right or wrong, journalists can't help taking their cue from the screen, a classic mistake and i see all the time this build -- in this business. american express, reading the report in the deck, the quiet away from everybody. matching numbers against what i expected and the lay of the land. i see things i like in the case of american express i got excited, because of a consistent winner, suddenly i hear they have a >> quarter, and what the heck. are they blind, the fabless stuff in a little charge off an amazing growth in younger people love it, i go on the air and explain what it was in a bad quarter but a great one, and i get the reasons why, the reasons why. and more than 13 bucks, and in
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the first place, the quarter was excellent. a controversial one, procter & gamble, tends to be strong when the market is weak, you're expected to get back something, i saw huge sales, change the the last two quarters, it went down and the fluctuations did not wipe out the savings, and it is a key market. the turn, it is a good quarter. the stock traded down almost 4 dollars at the open, told my partner in the investing club, a fit of fury by the way, i can't beat this stock, not one that just reported, before came in i went the last two quarters cold and onference calls cold and improvements chapter and verse and i was steamed, and the morning meeting, initial
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pullback was a fabulous buying opportunity. the sellers know nothing. >> almost finishing a dollar, the early action was just plain wrong and stupid, everyone took the cue from the initial sellers really had not done any homework, let's just call the blind leading the blind, the stuff drives me crazy, i'm trying to teach year. yet understand, magic is not happening, and of course the situation where the stock deserves to go down in many cases, don't white want to fight the tape and tech thing that we need to make exceptions we know the history and expectations and we have the confidence in selling doesn't reflect the reality of the situation. is important have confidence in the business, that's what we teach, confidence comes from that, expressed had done to her proctoring gamble, those simply had not done the research. my life them, if you don't want to do the homework, saturating
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individual stocks and just go by an index fund, i promise it will do better than whatever the heck you think you're doing selling the stocks of companies that you don't understand, and haven't done enough work to be able to do it right. there's always somewhere, i will find it for you, >> i'm contesa brewer. text stocks get crushed. what happens ext week when we get earnings for more mega stocks. >> it could happen in any moment. the biggest coin event of the year is here. why your want to manage

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