On earth the trade war with china could cost a lot of money. Dow dipping 17 points. We focus on the rode hot ipo of chewy. Yes the digital pet supply store more on that one later what you need to know now is that were in a weird moment waiting, waiting, waiting, waiting for the fed to speak, wednesdays business then whether they believe we need a rate cut. Were waiting for the g20 meeting where maybe trump and shooe c sho xi on monday United Technologies gives you a briefing from the Paris Air Show and you have to wonder, tell us a little more about this merger makes sense. As shareholders, fleeing from the stock since the news broke i think the deal is dewsing. I believe theres real work to the stock into a carrier company, elevator company. It looks fantastic raytheon i get they tell a darn good story. Tuesday, another one that gets knocked around all the time. Its his turn to talk. You should be suspicious of g. E. Hyping its own gross strategy here i think the ceo has been staying away from hype ever since they brought him in to run the company. Ges been stuck around 10 for over a month i think theyll have a lot of orders it will go higher. It will be because the numbers are better we hear from one of my absolute kms, adobe you know i love this company i expect the visionary of the ceo will deliver election reports. Weve seen many lay eggs, the kinds that dont hatch if adobe gets hit of a good number, i want you to buy it the press conference, meeting, open market, i suspect theyll talk about the need to monitor the economy. I think they want to have more info than he currently has before taking action thats ok. I get that expressing vigilance should be enough to keep the bulls happy this tech stock, even as there always seem to be critics who are out say that the business isnt as strong and theyre losing shares. Im not enamored of the stuck but 15 times earnings next week, it is hard to dislike oar equal. Kroger, darden and can it be growth krogers been struggling against walmart which has gotten aggressive with food, with amazon and costco. Theyve done really well with food target is revitalized. Theyre all gun r fog kroger tough to be in the grocery business these days. Im glad im not in it this is a new world. Maybe this time will be different. Ive got my eyes open. How about two, the parent company. The value of the restaurant chain. I think hell be able to tell a good story about cheddars scratch kitchen. They purchased that a little over two years ago this has wall street scratching its collective head. If we can explain why it made sense, darden will get his mojo back then theres canopy. Youve seen them numerous of them cannabis kingpin ceo bruce litton has a terrific thing. Hes talked about did Beneficial Properties of marijuana. The outgoing fda chairman was openly critical of the benefits of medical marijuana i pressed the dish pressed the guy from chewy today about whether cbd dog food theyre not there either people got to get on their case. Merkel, i examine to be dazzled by the success of keytruda i bet they do a good enough job that their chief rival Bristol Meyers buy the stock. Then you take the tradeoff. You ring the register on merck and then buy bristolmyers if they go down, which i think it will theyll raise money. Bristolmyers is the one to buy. Blended naets, lots of short sellers getting they can knock down the price theres room for both of them in a faux meat space. We all know the Auto Industry is struggling we cant say the same about the used car business because used cars are on fire i think car max will deliver another Strong Quarter on friday Interest Rates have come down, making it cheaper for people to get financing. Cut short from Interest Rates, a good stock to buy. Also watching a whole bunch of ipos next week no adrugs for i. P. O. I cant get excited about it but so many of these stocks have been working that i want you to keep slack on your radar screen. Next week, watch for twitter i think the sacramentock market. Buy merck, sell merck, buy bristolmyers, thats my plan for the week im starting with jack in ohio jack. Caller thanks for taking my call good to talk to you whats up. Caller im thinking of adding a new secretator. A ton of it right down here judgest trying to break the stock up get that over with and were going to be up until then, i think its going to mark time kenny in my home city of new jersey kenny caller i love your show. Love your adrenaline thank you i bought foot loerk at 41 a share. The nikes most profitable sneakers you bought that one on your own, sir, because i got to tell you, that was a miserable Conference Call and not great last quarter i found myself confused. I do prefer nike to foot locker. I dont like anything, nothing more i dont like fossil fuel these are my bread lexes i expect tomb to present itself next week. You got to pick one. Im going to help you. On mad money, its a different kind of software but this has been in the lap of lurksry did you furnish your portfolio im pulling up a chair with the ceo. Then its raining kalgts and dogs on wall street today as chewy made its public debut. Im chattanooga over the action. And investor day i suggest you stay with kr5i78er some companies are such great operators that they deserve the benefit of the doubt even if in the face of incredibly challenging circumstances. Thats the high end Home Furnishing chain formerly known as restoration hardware. Rh sources so much merchandise from china and they seem to be resiej to be caught in the tariff crossfire thats what people thought then this week they took aggressive action. Theyre not letting it happen. Try to get new deals with suppliers and moving sourcing outside of china that, including coming to the u. S. Thats why the stock exploded higher yesterday especially with this most incredible buyback ive seen lets check in with the ceo to find out more. Welcome back to mad money. Good to see you again. Hi. What a Tour De ForceConference Call. You just put to rest a lot of peoples worries as you said you would. You have put back 60 of the stock for this period. I think you think the stocks undervalued, dont you we think its massively undervalued. If you look at t our earnings and think about the multiple this company should have, you know, today we believe the stock should be worth 200 a share but i think people continue to misunderstand us were Building Stores that are unlike anything that are being built in retail today. Weve taken on some debt we kind of almost did a vertically integrated buyback of our company. What . And people are confused about the model. They think retail is under attack right by amazon and others. Were really playing at a different level and disrupting a different part of the markets. For instance, the unbelievable story of the meat facting district i got to tell you, its a breath taking experience, as you know i went there with my daughter. You said you were comfortably in excess of a hundred Million Dollars in one store thats incredible yeah. We think its going to at least be a hundred Million Dollars in its first year with the we get approval and if anybodys watching thats our customers in new york that want to come help us at the next City Council Meeting get approval to serve food outdoors, i thitd will be in excess of 20 million. You talked about something i was concerned about, i said so at the time, is the china tariffs. You cant be at the mercy of anybody. No, you cant but you cant be offender reactive to kind of shortterm noise. Right and you have to stay with your long term narrative its about having the right goods, manufactured at the right qualitylevel and presented in the right way at the right value. And beg overly reactive and moving sourcing around and kind of categories like ours can present more risk. Thats back to america. Weve had we buy products in america we manufacture some of our own trucks in america. We have a manufacturing facility in north carolina. And were just always improvi improvising and looking for opportunity. So, look, if the china tariff situation would be settled next week and everybody coo spent a lot of time and distraction, the fact is the chinese government, the chinese factors are motivated for a good outcome the u. S. Is motivate for a good outcome. Balancing trade is a goodgood thing. I dont mind some of this shortterm chaos because i think the longterm outcome for the u. S. Is going to be good you talked about how linked you were to the stock market it made me feel like, one, obviously, things came roaring back, it might be more good to link around the world, so youre less u. S. Stock market controlled thats in the cards, right almost any Business Today is going to be linked to the stock market because of the massive amount of wealth tied in at both levels when you look at our four corner, the market fell Fourth Quarter, the markets fell 2 dow is back to 26,000. People are like, your business is back. Right. No kidding kind of like a naivete about some of the people trying to understand your business i understand your business im like, hey, the markets back up this is going to be great. Yeah. Thats maybe our this is not new look. Why do you think the president s feeting about Interest Rates and the fed and so on and so forth a lot of times the fed waits until a recession start to lower Interest Rates the markets going to do better. Well do better. The goebel view of our business is just beginning. Weve said we comfortably think we can be four to five million in north america and thats just completing our real Estate Transformation onds our Marketing Strategies toefld. If you look at the luxury end and think about the global marketplace, were like dumb americans. We only see what we see and its like a quote, we dont see things as they are, we see things as we are only 25 of their business is in the u. S. Manchts threequarters of it is outside the u. S. Market we think this could be a 10 to 20 billion. San francisco, hichk bethlehem steel building, the whole water front is being rebuilt. The meat packing district, san francisco. A beautiful Historic Building that will be amazing with the rooftop and integrated h hospitali hospitality. Im with my team and were flying to europe, ten different cities we think well be global pretty soon this is not an insult listen im used to insults dont worry. No. There are a lot of very wealthy people who go to costco. They do. My wife swears by the fact that being a pleb of rh, she thinks the stuff is very inexpensive as a member sometimes you have a reputation of everything being too suspensionive. If youre look at the beach collection my wife gets. I think clearly your wife ought to be on the show with us, too. I said that i did, thank you very much. Thank you. Yeah its at the end of the day it comes down to value. Right . Yeah. Its not about price. Yeah. Its about 1r5u8. If you look at what teslas doing and youll look at the a you willin value of the vehicles theyre creating. The vehicles are more expensive but when you look at the allin value, theyre not theres no no. Were building a timeless product that we think will last generations. Jihadi you anaheim the big believer i knew you would figure it out impgs astonished people didnt see the connection between that and december yeah. Just wiping out what happened in the market but the market came back. In december our earnings were up 78 net income, right so 76 in the first quarter, 48 . In the Fourth Quarter it was 48 income growth. So you cant get distracted by the shortterm noise you have to stay focused 5 million. Maybe 10 or 20 billion. All right thats the ceo of rh i got to tell you. This is a magnificent quarter and by the way, a fantastic Conference Call. Driverless cars. All ground personnel. Or trips to mars. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. This ipo market doesnt know when to quit that uber deal went public with a whimper. They keep buying these things. Makes them into not Small Companies once they get it going. Look at crewy, chwy, spun off by petsmart, hind of the range, 22. Then opened at 36 and climbed to 41 and change before pulling back still, if you got in on the ipo chewys giving a magnificent 59 gain how the heck does that happen . Could the stock potentially have more room to run i want chase the stock at these levels necessarily you might as well put it in your shopping basket. Weve had the second and third the reasons Pretty Simple let me break it county first there are as we know anybody who watches this show, the humanization of pets theory. Something weve been talking about for years. Americans increasingly treat their companion animals like members of the family, which means we spend more and more money on surprise and health care the dog starts in the basement, then theyre in your room, next thing you know, theyre in your spot this is a highly fragmented industry maybe 15 years behind the rest of retail. As of 2017 ecommerce only accounted for 14 of the pet food these numbers have been growing like crazy chewy expects to reach 25 by 2022 i think that maybe be a conservative estimate. For some reason, the internet didnt take this business by storm, at least not until now. Chewy has it figured out fitting, the ceo comes from amazon, he was a big executive more importantly, chewy makes the whole process convenient twothirds of their customers are signed up for auto subscribe. There are seven fulfillment centers. Twoday shipping for nearly the entire country the ceo told us sometime they price through amazon when it comes to delivery. The real thing is customer service. They keep shopping at brick and minority ar pet stores because they want to give their pets the right food under a need to talk to someone chewy is well trained, friendly and give you the advice you could only get from a highquality pet store i know theyre the real deal when i tweet about chewy yesterday they sent me these paintings. First of inindividual ya a bad day because of broadcom, you know then marley, dumbest animal alive. He ate our bannisters. People responded with their own incredible stories they sent 40,000 of these out. Sounds like every time a customers dog dies, the they dont make you pay for the food that month i dont know what to say to that chewy guys, i just got the report back that lump on his leg is not cancerous made the day this morning, i had the chance to ask some, the ceo of chewy about his vision take a look. Twothirds of our revenue come from ownership or Subscription Program our customers love engaging with us hes right. You see these over and over and over again if you look at my twitter feed forget about that and focus on this ok that formulas clearly working chewy didnt even exist ten years ago. They created it to raise money for animal shelters. These are both from kill shelters, all right . Then chewys sales took off. 3. 5 billion last year. 90 of the people do renew when someone starts shopping on chewy, they the end to stick with them. Fabulous retention we know it beats brick and mortar again, the ceo from amazon thats how the company can deliver such good numbers. Which is why wall street went crazy for the stock. While that represents a deceleration, the company is up against numbers. Theyve been investing too much of growing the business like amazon for now, but other than that, the financials, i really like them if chewy werent an independent entity, i think id still be recommending them. In 2017 chewy was acquired by pet smart and they have a controlling interest in the company. Luckily chewy isnt on the hook for petsmarts i never like it when theres a private equity firm lurking by ringing the register on its gigantic position. I understand why investors are losing their minds over chewy. Who wouldnt inindividual yus 12 right now. Jenson wont he has an i. T. Card to get into inindividual ya anytime he wanhe wants the stoct 3. 9 times last years sales. Lets be conservative and assume it slows down to 25 in that case, the stocks 2 poinl 9 tiemtsz. You know what . That strikes me as pretty reasonab reasonable its got a substantially Slower Growth rate. I think chewy deserves to trade at a premium, just not this much of a premium the stock would come down like 31, 30, it would be trading at about 2. 5 times. Those are the levels i think you buy the stock. Until then, maybe keep your head on your shoulders. Be patient i wouldnt listen to anybody who tried to term it the Second Coming of pet smart. That is just unfair. The bottom line, even after todays magnificent run, chewy isnt all that spenszive still, i hate the chase, which is why i think you 1450 wait for chewy to be 30 to full trigger. I can. Why you might want to put some away right here right now, because they love the km that next im channel my own Phil Griffith here and this, by the way, oh man, is that heavy have we named this pet yet yes we name that put were thinking chewy, maybe. This is chewy may chewy have a long life in that fish bowl lets speak to marybeth in michigan caller hello hello caller thank you for taking my call. Of course caller my husband and i have watched you for years. Thank you caller also want to give a shoutout to your suburb staff they are so great. I know, i know. Incredible, incredible my stock is pet x, it was an ipo dmp 2017 the it was featured in august or Early September of 2018. I bait for my 2k3wr57bdson so he could have the stock there are some security claims by many different law firmts im wondering if its still a hold or sell im going to suggested and this is ive looked at this company. Thats not the reason to get rid of it. I think you swap out with that and stwoich chewy. I told my wife we have to switch to chewy it isnt like somebody giving us pictures of marley and invidia i think juliette yas the real deal even if youre todays runner, if ipo isnt that spinszive. When you get a couple, go buy something. What does the ceo of seine tina have to say about it and then depressing imbreaking down the numbers next is the lightning round. So stay with cramer. Look, its a tough time to earn managed share stocks. Wall street is terrified about what might happen to the Health Insurance industry if one of the Democratic Candidates wins the white house. From medicare, medicare to the baker exchanges, stoke has been pummeled its ridiculous. Doesnt help that theyre buying well care in march its a great idea. Some people ro leery of the whole managed care space somebody has been trying to shoot down the deal. Doesnt look like hes going to get his way. Can this stock turn around lets look at the president , chairman and ceo of centene. Welcome back to mad money. Thank you congratulations are in order. One of the more exciting years for certainly your first, your first. Thats right. We had it 49 years ago in the finals it was our turn. Welcome back. Fantastic. And congratulations. Give us the gist about the analyst data you have a lot to cover. This industry is more controversial than its been in a long time. We spend a lot of our time talking about the systems, how were modernizing what managed care does. We were clearly a tech company that has moved to hotel care right we show the ecosystem we have, have really managed the care, improves outcomes. At the same time, better quality, lower cost. We took them through all those details. Now, you would the company youre trying to buy while a good company, i think does not have the same lets say art official intelligence you have about what outcomes are. That could be positive positive. Whether we move into our systems, its going to be very helpful for the total company. Now, the there are dan lobe is in there everybody has a right to an opinion about what should happen i personally thought trying to figure out why anyone rational, i asked and didnt get a response, rational for you to be able to put yourself up for sale given the fact that youve been one of the better performers he should be smarter than that he knows that we have an agreement, he probably read it, cant talk to anyone if i wanted to it makes no sense. These are individuals, i understand they could be good investors at times. They go in and do it. They hope if you can get that transaction going when somebody else buys it, they get a quick hit of 10 or 20 and move on thats not the case now. Its long past that. Ive tried to figure out we hear about skyrocketing health costs yes are they not looking at your model . Your model says health costs are under control and maybe even lower. Two 3 . 80 of the people we knew were in 32 states its like i told the investors today. You have a portfolio, sometimes one has trouble but thats ok. We have 38 others. Did you say anything about what youve done with fidelis but it lacked your skill set we showed how the integration of these companies go well fidel is has been great. On thursday President Trump has been hes been doing a lot of stuff behind the scenes about health care. Hes got these Health Care Reimbursement arrangements that youre talking about youre talk about a hra, like an ira. Make sense to you . No. It does but not for our population mplgts. Why why should they take a less good benefit were using the marketplace to teach people how to use insurance were teaching them to fish rather than giving them fish you give them an hra, some people its great for but you have to know what youre doing when i hear the hra, employers get a copay right is this just another thing thats going to be used against the republicans by some of the more medicare for all democrats, saying look, these guys are just once again, its a limited number of people being hemmed net care for all answers the questions, where they dont seem to question how much of a ost. I was going to say have you seen the lowest numbers over 25 years is trillions the shiends 38 drill ondollars in this new world, theres an alternative world we have in politics you can just say by the time we get there well have sthovld and it will have cost five trillion. Its a nice concept government really is much more efficient than private enterprise its not going to work so true ive not met anybody that has any hope of being done the only way a single payer works is a with holds services and americans are not going to to that lets leave it at that. I think thats absolutely true thats been my view forever. It wont work. Wed love to have Great Health Care for all but i prefer to have hotel Care Insurance for as many as we can your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. It is time [buzzer] the lightning round is over are you ready krista, krista booyah caller hi, jim i bought stock a long time ago and i forget about it. I love this i know the stock had a hiccup. It was a buying opportunity. This is a good situation lets go to dan in nevada. Dan caller booyah from las vegas. My ticker is gtor golf course. No. Lets go to alex caller hey, booyah, cramer, how are you . J im good, how are you . Im good. My thoughts are on big d im from jacksonville, florida i want to know what your thaws on jd are. Im glad youre from friday i like it. Im even thats not working that well. What about manuelle . Caller thank you for everything you do like the homies like myself is this Company Every going to get out of its own way its the one to own, nucor. Ive got to tell you, its at nine times value but value is not working. Lets go to shante caller nice to be on your show thank you. Hymn to have you. Im a fan of your show and the tweets it wasnt my i was not the guy in the picture i just threw his you know, whatever hes a good dog. Caller my question is on wells fargo. Yesterday a different ceo and quest churs, what have you i continues count and start all over again i think its a mistake thank you. And that, ladies and gentlemen is the conclusion of the lightning round. The lightning round is sponsored by caller live there, cramer, youre my guru its important to get this caught in your tooth when youre doing tv i want a bear trap right here, one of those that goes oh, god, jim please dongtd open the sausage. Sorry. Saw sang gets oemds. [ crashing they couldnt take the pain exactly. Look at this look at this really starting to come together here its like play dough except it tastes a little more like play dough. Lets see if i can hit the dog [ crash [ barking there you go wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade did broad com misjudge the resolve of the president of the United States yet again . Last time they reported distinctly suboptimal quarter where they lost 2 billion it was a slowdown in chip sales caused by the trade war. And because of the president s decision to black list wlauway with a hundred billion dollars in sales i dont think broad com saw this coming the president doesnt care about the trade deficit. He cares about containing clienz technological military might if you want to understand the trade war stop thinking about trade and think of the much more milder version, so far, of the cold bar this is the second time broad com has misjudges the white house. It w506 given them an enormous amounts of cell phones on effort they were in a battle with apple over fees. The deal was tim would buy Qualcomm Qualcomm would have been a fortune. We know that President Trump shortly before he launched his take over bid. He said hed move the headquarters from singapore back to the United States he thought he was in trumps great graces but not until trump came out against it. Brought up by the committee on Foreign Investment i think the company home run kf plate a mistake. Its a brutal defeat the qualcomm broke apart president wants to crack down on china. I dont know what else broad com could have done goat out of harms way huaweis a Huge Customer i get the sense that the company wasnt prepared for the president to keep escalating the trade war or maybe believe that the president s misguided and will come to his senses when he hears from big business. I think its a silly position to take i got to wonder how many times these executives can keep making the same mistake at this point, youre a ceo and you dont think the president will follow through on the crack down in china, youre fooling yourself President Trump thinks huawei has been stealing technology from all over the world and theres no compromise for that kind of behavior Companies Like broad com cant afford to do business with them anymore. The president is not going to bend over backwards anywhere to help them make money at the expense of american interests. Hate him or like him, the president s been consistent on china. If you aid china or put a lot of people to work there, dont look to him for any favors. henry i thought it was unfair. When when you hear those words that you get diagnosed with cancer. osamah successfully treating it still remains one of the most enormous challenges facing us today. We realized that, if we developed the technology that could take 2dimensional patient imaging and convert it into 3dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. When we first started, we felt like this might just not be possible because Computing Power just wasnt there, but verizon 5g ultra wideband will give us the ability to do this. We wont rest until we see this technology being able to change lives. Intand ux f sport,rst of its kind lexus ux also available in hybrid allwheel drive. Lease the 2019 ux 200 for 329 month for 36 months. Experience amazing at your lexus dealer. You should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. One thing i didnt cover today that was the lead story in the journal was something about facebook and something you have to watch for of course, itself wasnt negative yes. See, facebook is working on a currency, a crypto currency that can be used around the globe all right. They talk about some very powerful partners. The one that caught my attention was paypal pay balance is run by dan shulman. Hes been on our show talking about the need for privacy, talking about the value of the customer talking about not violating any rules. The exact on of the ethose of facebook maybe theres a sea change coming, people maybe facebook is going to go back to the light side and todays big rally, it was a lot of negativity in tech, including a 10 drop in nasdaq could be the nal that facebook has bottomed im jim cramer and i will see you monday with every roar of an engine and turn of a steering wheel, there is an undeniable expression of artistry. Everything has been louvered, channeled, manipulated, and blended. A craftsmans eye for precision and a designers obsession with perfection. Its sort of timeless design, and its just pure design. And theres no greater example of this than the handmade automobile. Im gonna go build my own car. Tonight well explore the dying art of working with your hands. I just had to get a car, cut it up, mess it up, keep going, and keep learning. Creating oneofakind works of automotive design. The only two things that are not modified on the car are the doors. 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