Previous peak on february 19th and all i heard is its because were having a v shaped recovery wrong, wrong, wrong. Not just wrong but laughable in a v shaped recovery the Dow Jones Industrial average would be hitting highs but this move is led by the nasdaq and s p including today the dow lost 67 points as the s p advanced 2. 3 , the nasdaq gained 7. 3 you dont need to be a Rocket Scientist to figure this out look at the stocks that have brought us to these levels they are not the recovery plays. In fact, they are the opposite they are stocks that tend to do well because of what we call secular considerations, not secular like nonreligious but secular as in they are doing well because of trends in their own industries, not the economy. Far from it. Allow me to explain. We had a magnificent v shaped recovery in the stock market, but the stock market is not a great reflection of the voter economy anymore. If anything, the actual economy is in precarious shape now that the government stimulus package has run out and Congress Went home for the summer and dont even get me started on the destruction of Small Business thats about to happen so i want to put this whole notion of a v shaped recovery on trial because it doesnt stand up to even the most mild of scrutiny first witness for the prosecution in this list of stocks that have done well is payp paypal the best performer since the february peak. We interviewed the ceo that made it clear paypals business is on fire because nobody wants to touch cash when it could be bathed in covid and nobody wants to put their pin in a debit card reader we need contactless payment and thats paypal in a nutshell. This stock rallied 57 , you need to know thats terrible for the regular banks. Jp morgan, bank of america, citi group, wells fargo all could be partisan but bad for their Business Financial tech plays like paypal thrive when money mangers are afraid to own real financials with actual credit risk. They need financial exposure to buy fintech. Invidia, the company i named my 13yearold rescue dog after its a little green card, its his i. D. , i. D. Card, you swipe it he would not have swapped. Anyway, hes dumb as a bag f ocho h of hammers, unlike invidia the dog, this stock can hunt gaming, data center. Invida today is what intel was in the 90s. Modern daiy leonardo dvivinc hirks,hirki. Plus has a cool Leather Jacket i could never pull off i dont know if they can justify the stock but its not the stock wall street flocks to in a rapid economic recovery. Its anti cyclical and figures out how to make things that dont even exist in most of our minds. Third witness is apple up from the february top what can i say for years ive said you should own apple, not fraud trade it ai stuck to the party line. The stock get hit with wave after wave of downgrades negative stories how to be crushed by china or knocked out or beat by the worldwide recession. None of it mattered. The company put up incredible numbers because ipads, iphones are essential in the economy and the companys products are loved with a 99 , well, what do you say . Satisfaction the best there is. Apple isnt a recovery play. It secular growth that works in good and bad own it, dont trade it cramer fav like invidia taking share from intel thanks to the leadership of the ceo lisa sue this is all about p. C. S and data centers. This was the quarter where they beat intel because they can make smaller chips. It up 30 . Once again it is not a recovery play but a classic david and goliath story. It bibiblical. You need technology from cadence design systems, the fifth best performer. Cadence is an opaque company but tells the same story were looking at a tech rally, not a recovery rally witness number six which is not to be confused with what we serve at my small plate restaurant struggling with social distancing in brooklyn. It is up 27 from february peak. Why you ask . They make radio chips for you got it, iphone, have a good client, will travel. Qualcomm tells the exact same sto story. Their property makes cell phones possible and may have won major lawsuits thats why qualcomm is up 20 . Nothing to do with the economy we have a Semi Conductor up 22 . Were selling lots of gadgets for the stay at home economy or one of its peers up 12 and one of the best performing stocks. Not a recovery witness number nine, service now. The Cloud Based Software company for Information Technology and back off the jobs. Service now is a cloud king. The new ceo came in hot using his massive rolodex to win clients. Once again, this is a digitization stock for that design work it rallied 21 since the s ps last peak. For those of you that think im cherry picking, the next ten best performers look similar three Semi Conductor and Semi Conductor equipment stocks, one work from home play, two fin tec techs, two e commerce names and microsoft. The s p 500 isnt making highs because of the industrial or retail and banks that want Small Businesses and companies hiring, no this move is fueled by the biggest story of the covid recession, digitization. Cut out the fat with the fat being the people part of the real economy when you cant afford to hire people, you bring in this brigade of hardware and Software Companies and they do it for you in brutal fashion. Meanwhile, the industrials are nothing to write home about and financials are dreadful and home depot, walmart offset by losers, bankrupt companies too small to talk about the winners are companies most divorced from the underlying economy. Not plays on a v shaped recovery, there isnt one. They are plays on an l shape economy. Here is the bottom line. The s p tales are told by an idiot signifying nothing about the hardship of millions of people on food stamps or the millions about mato be fired or people just huddling home waiting for the vaccine, which currently feels a lot like waiting for the dough. Stephon in florida caller booyah, jim, thanks for having me on the show. Glad youre on the show whats happening caller i want to ask act Madison Square garden msgs trading at 158 half of the 52week high of 316, 10 above Madison Square garden is a household name that doesnt seem like it will go to the wayside after conducting business. Sports have to come back and Madison Square garden will resume normal operations when it happen s if you feel that way, stephon, then just go buy live nation it a better run company. He will do a much better job thats the better one. Stock is down 30 . Lauren in virginia, lauren caller booyah jim cramer from virginia here i have a question about a company that has done a recent acquisition of compel la university, the stock got down from its last earnings call. Okay. Caller it looking to do a Public Offering of shares to acquire more education so what do you recommend for this online educator provider im not a big fan of online education. They tuck a great game and fabulous and they will come on and make you want to buy the stock and youll get what you see on the screen. Christopher in california. Caller hi, jim, thanks for having me on the show. Im glad youre on the show. Caller so my question is with the schools starting to reopen and folks getting back to work, i was thinking people might need some new jeans. Whats your thought on levi . I happen to like chip burg. I like levis but right now the apparel business unless youre in colombia sportswear or lululemon is the place to be as much as i think levis will be a winner long term, its too long term for this guy all right. This is not a v shaped recovery. I need you to go im not listening. Im not listening when those chatter heads excuse me, ill advised people come on our show and enter on the paper tell you this market is telling you about a v shaped recovery. Look at these stocks look at the stocks that brought us here. You see any recovery there no on mad money tonight, home depot and walmart grabbed headlines but im focus on a boxed retailer concerns about the u. S. Recovery put the dollar on the defensive but can the status be the worlds number one currency . Im going to go off the charts for a surprising story and colombia sportswear through the uncertainty . Im talking with the ceo after earnings so stay with cramer announcer dont miss a second of mad money. Follow jimcramer on twitter have a question, tweet cramer mat tweet har madtweets or call us at 1800743cnbc miss something head to madmoney. Cnbc. Com. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Right now, switch to tmobile and get four lines of unlimited for just 25 bucks a line. With access to americas largest 5g included. Thats right. Unlimited and nationwide 5g for the whole family for just 25 bucks a line. Only at tmobile. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Were hearing from all sorts of big box retailers this week but you cant expect them to hammer home the full story, which is that their smaller competitors are been devastated by the pandemic. They cant brag about stomping out mom and pop stores and none of the ceos wants to be raked over the coals the stunning numbers were fantastic. If you watched all day, you dont need me to tell you that but every once in awhile you hear about a chain that owns an entire category and isnt afraid to say it. We saw it passed with boot barn and why assembly of boots in western style apparel and canada goose which owned the highend parking category until they couldnt maintain growth and other competitors caught up. We saw it with lululemon and today i got another one and if you watched the show last night, you know it called grow generation that Sells Everything you need to grow cannabis at scale. Yes, its the Tractor Supply of pot. Hyd hydro ponic rimes with chronic they told the best story i have heard in ages. Look at that hes lost weight have you noticed all right. Im a gardener although, my plants tend to be more traditional if youve ever been to a gardening store, you get flats of plants and plant them usually there is nobody to help you. It tough enough to get someone that can tell you you might need tomato baskets or stakes if you want seeds, forget about it they have no real help beyond checkout people that drives me crazy. Ive been to a lot of Gardening Stores and always disappointed, especially Gardening Centers since they all have bonnie plants, which is an iffy plant grow generation is different i rarely circle back to a guest thats on. This is an 840 million operation like growing, like well, growing like a weed. It got 28 stores and this past quarter the same store sales were up 49 . If you use these, you have to take out the seeds and thats why they work so well. I dont suggest you use these because you have to take the seeds and gunk out anyway, 49 is insanely good even though small. Even though stunning numbers dont capture the full story grow generation is a specially chain kalterri ecatering to the Marijuana Industry state after state. This is a great time to get into gardens because there isnt a lot to do for fun. What makes the chain special the runway they only have a hand full of states each market they want to nearly double the store count next year via opening their own large stores and acquisitions there are roughly a thousand independents out there that can put up hundreds of stores and be nowhere in saturation. Grow Generation Stores have all the equipment you need to get into the weed business including specialized lighting it not easy setting up a hydroponics lab. They have everything to help you if youre a Small Business or individual what does this have going for it it a marijuana play. The current crop is truly wanting. Tilray, canape, they cut the hearts out of the shareholders only green thumb interests me. Second, grow generation doesnt do canada. Its not u. S. Only which makes a ton soft senof sense and less s. Third, given legalization tends to be popular, seven more states it can expand. If you get a democratic sweep in november, there is a real chance we get federal Marijuana Legalization biden is against it. If the Democratic Congress passes it, i dont think hell veto it. It would be one of the hottest stocks in the market without that, though, they have a ton of room to grow in the states where its currently legit in california, oregon, washington one big caveat, the stock is up. They wont do that in your face and a scarcity in the cannabis business the big box chains dont want to touch this you have my blessing to put on a small position tomorrow. Then wait for it to come in to buy more because this is one of the best stories in retail thats going right now stick with cramer. Some Companies Still have hr stuck between employees and their data. Entering data. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. I like that new off the charts music i hope it continues. It probably wont. Were talking about the dollar and thats why we play it. For months they had a weaker dollar the government is borrowing drills upon drills of dollars and putting money like putting money like there is no tomorrow we know that you expect our currency to get hurt like everyone elses which is how things play out thats one reason so many industrials managed to have great stocks here. A weak dollar means exports are cheaper for the rest of the world and gives us a big competitive advantage and makes imports more expensive this is great for the economy. You need a Manufacturing Base but hurts the consumer and certainly if you want to go overseas all told you cant anyways so what does it matter. All told, i love when thegreen back goes down because you have tons of u. S. Base nationals and overseas earnings are worth more with a weak dollar for example, just to walk you through this. If you make 100 euros in france or germany, thats worth 120. Earlier barely worth 100. Its huge. If the downward trajectory holds it and changes every industrial Conference Call going forward. But and this isnt ominous but for the internationally oriented companies, what happens if the dollar is about to get stronger again . I know someone is thinking this. Maybe it sounds unlikely to you given that the fed is in money printing mode. In twitter at jim cramer, people hate this piece. The rest of the world has done a great job of containing the pandemic aside from brazil were going off the charts a dollar rally might be in the cards and you have to get bullish on the dollar. This is with the help of Larry Williams, the legendary figure trading since i was a kid and written more than a dozen books and has his own website and recent track record frankly is down right spectacular williams thinks the dollar could be ready to roar here, which is huge out of the box call nobody else is making but making a lot of great calls lately and in april when everyone was terrified the sky was calling, afraid we would open mid may and the average would roar higher. A month ago he said the s p was headed towards new highs although what happens spot st se stock market after that . First, take a gander at the char chart. It measures money after training higher for years, right, look at this up, up, up. The dollar started getting slammed when covid hit and since then continued to trend lower. You see this red line at the bottom this is data from the cftc commitment of traders report the cot report it shows you the buying and selling of commercial dollar index, banks and governments, whenever they build a big net long position above the gray horizontal line, williams points out the dollar index tends to rally consistently we have gotten to a point where the commercial hedgers are in a long bullish position that says buy the green back next, check out this monthly chart with the different key indicator. Okay this blue line is a model that measures the relationship between the dollar index and crude oil prices typically there is a Strong Negative correlation as oil is priced on the dollar williams knows every time the blue line goes into under valued territory since 2005, it has correctly predicted a big rally in the dollar index and thats exactly where we are now not believer okay what about seasonal patterns lets zoom in not using the zoom but zoom in on the weekly chart of the dollar index. The zoom the brunch, zoom, no this is not what were talking about. Zoom in on the red line shows you how it tends to trade at a given point in the year. Williams points out were nearing the seasonal low for the dollar and in about six weeks, history suggestions we should get a nice rally but these patterns arent set in stone so you can only take that so far to the bank let zoom in further with the dollar index daily chart last week we got what is known as a td sbuy. The titan of Technical Analysis noticed a powerful whats known as reversal pattern, cant get into the details now well take a little too long we can look up the td see kweshl set ju setups online. This gave a powerful suggest of the decline of the dollar is coming to an end okay, one more williams has forecast, too something hes great at. Take a gander of the chart over the past year. The red lines forecast for the dollar shows something similar to what he saw in the seasonals. According to williams, oil based forecast the dollar index should put a bottom in the first part of september this isnt a precise science the projection might be off by days or weeks but the dollar index is likely to change direction in the near future all right. How about gold Just Like Oil gold and the glar t dollar move. Gold goes up, dollar goes down gold is priced in dollars. If you look at the dollar index and layer on an upside down chart, they move in tandem when gold goes up, the dollar index goes down and lately, gold has been roaring so that should be another single i want a contrary view for a second we heard from another terrific technician that says gold speculators brought up long positions, hedgers have huge net long positions, too. Garner predicted that gold might run out of steam about where it seemed to peak last week and williams is a lot less bearish on the gold he realizes the ownership is a bad sign and gold has gotten crowded. We give the link between gold and green back and falling prices would mean a rising dollar now any of these things alone wouldnt make me do this piece wouldnt necessarily mean anything but when you put them together, the bottom line is the charts interpreted by the great Larry Williams suggest the u. S. Dollar could be ready to come out of the funk and start rallying again i dont know a soul who believes that if hes right, well have to reasses Companies Getting a huge boost and by reassess, i mean lightening up on stocks of companies with big overseas sales. Lets go to christopher in california, christopher . Caller hey, jim. Hope youre doing well. Im doing well, thank you how about you . Caller very good, thank you. In light of the Monetary Policy, they should start shipping investments to gold and gold mining stocks and warren buffet invests in barrett gold. Im concerned by the feds and Monetary Policy decisions. Do you see gold as an investment safe haven i felt gold should be 10 of your portfolio lately, it gotten so big it might not be 10 it might be more im totally discounting warren buffets move. I dont want to be picky but we said buy it and mark would be the first to tell you, listen, it just doubled. Youre not coming in at the bottom and thats a reason i like it. This is not an early call. However, the sale of the banks, well, i mean, wells fargo was at 50 and youre selling it now maybe its gone a lot lower but i didnt like either call and not everybody is perfect certainly not me mark in ohio, mark caller jim. Mark. Caller firsttime caller been a fan of the show for 15 plus years. Thank you there you go weve been at it 15 years. I had hair then, not really, whats up . Caller my 3yearold cash and i tune in regularly. Kid has horse sense caller say hi. Hi. How are you doing partner caller jim, back in march, april when oil prices collapsed, i dollar cost averaged my way into several different large Cap Oil Stocks including retifiners exploration and service. I took profits a few times as the country slowly reopened and oil sector stabilized. Right caller dr. Chill, knowing your bear thesis in the Oil Gas Sector from listening to your action alerts calls, should i consolidate my holdings into one major, sell for Something Else or let them all rise im perfectly willing to let you consolidate under chevron because mike worth is doing a terrific job but look at the break even numbers and oil is struggling it needs to go to 50 to make a lot of money take your profits and roll them into chevron and pick Something Else and i loved your kid. I love your kid and thank you so much and please, remember, oil is a declining commodity because of ev and so many other reasons. All right. This is a bold out of the box call tonight this chart as Larry Williams thinks the green back is making a come back. I have predicated a lot of my stock picking on the idea its not going to have a comeback so maybe we have to reassess a whole host of american companies. Much more mad money ahead including a company i adore, colombia sports ware i got the ceo and sitting down with e health to see if the recent decline could be a buying opportunity and your calls rapid fire in tonights edition tofhe lightning round so stay with cramer before money, people traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Does it make sense to tip your toe in the apparel box . The Apparel Company is recognized as prada and among brands colombias robust quarter and much more than expected earns loss business was rough with sales down 40 year over year and they couldnt provide guidance because the apparel Industry Needs a vaccine and we dont know of one thats coming. In response colombia stock got hammered plunging from low 80s to low 70s in a matter of days the darn thing started to rally to the point colombia made up the losses what happened here i think wall street took another look at the quarter with more emphasis on the positives. The Second Quarter should be the weakest part of the year and declines could moderate in the second half. In other words, the worst is over throw in the fact that colombia is a fabulous outdoor brand at a time hiking is one of the few things people can do for fun and this move makes a lot of sense so can it keep climbing . Lets check in with the chairman and ceo of colombia sportswear with a better sense of the quarter. Welcome back to mad money. Hey, jim, thanks for having me back on. Of course, tim. The home depots and walmarts, here is what is in short supply, fishing rods, clothes to fish in, clothes to hike in and i started thinking whats really in short supply is what colombia sells. Well, you know, its one of the few things you can do with your family. It inexpensive it close to home you can have a great time. You know, you may not have to wear a mask depending on how thick the trail is with people, and you know, it right in our sweet spot. Well, whats interesting if you go to the website, youll see they are all real people you have bubba wallace, real person, tough guy does stuff outdoors the biggest fish ive seen and i feel when i go, its people who tell you they like colombia, not you telling them to like colombia. Well, weve always called ourself as very democratic brand and we dont take ourself too seriously. Our marketing typically has fun to it. It supposed to be fun outdoors and thats what we need. One thing you dont have fun with, you released a 2019 Corporate Responsibility report. I thought this was important enough to tell to my daughter because shes saying they are sweatsho sweatshops you completed 390 unannounced audits conducted at a manufacturing partner facility how did they do . Well, you know, its an area frankly that we take some criticism internally not because we dont do a spectacular job but because we dont add it to our marketing and the reason is its very difficult to out green or out consumerize our segment there are some companies exclusively marketing that we take it very seriously. We have a whole team of people that do these audits and we have a very stringent audit protocol where we go through the books for the company that were us g using for us we have a terrific group of directors and these guys have significant risk we dont want anything thats a problem so weve been very, very focused on that part of the business. Good, i think there are a lot of younger people that look at that first but i understand how you want to do it. You guys in many ways are a Technical Company thats done clean and right. Walmart has too many shirts or kohls has too many pants but how many black dot products can i get this year . Were going to have a few for you. They really work weve been working on a demonstration process to use in some stores and online where people can actually see the heat magnet that black dot is its going to be a game changer for our company for sure. Look, i like to go to games of course we have this problem with games not going outdoor but is this something i would be comfortable in hiking and that it would feel light but at the same time keep me warm absolutely. , t the dots on the exterior heat up with the suns rays or even art fish light and so you can get warm with a very smaller amount of insulation and this is going to be really good stuff. People will wear it and recognize how important it is that it works as well as it does. I was also not just the science that your company developed but this seemed to be the quarter where e commerce reveals, you have a company that youve even closed some brick and Mortar Stores but it seems like people feel much more comfortable going online and buying your stuff more than ever. Its interesting, we have a big e Commerce Business that we started and continuing to invest in but we have a significant amount of presence and other retailers e come sites that would include amazon business of some significance and we have business in europe so the company has actually quite robust omni channel exposure to the brand, not just through our own website. It seemed to me because i watched this lululemon closely the real pros tell me prona is better than lululemon. Is there a way to blow that out because the technical people tell me its the superior product. You know, we should spend more time and there is always more investment to be made in the e commerce site and were not parenthesis of installing an upgrade to the platform and that will be fully installed in this quarter and that will help us tell the story better and focus more on exposing the brand to the public and features. You sure have them and anyone that does technical or likes to be outdoors, knows your company is not an Apparel Company but hiking and Outdoor Recreational company. Thank you so much for coming on mad money. Thanks, jim. Thats tim boil ceo and chairman this is bottomed and they have some great technical stuff thats coming. The world is an oyster at this point. Mad money is back after this and cant wait until you are too. Universal orlando resort. Buy now and get two days free at the parks. Restrictions apply. That selling carsarvana, 100 online wouldnt work. But we went to work. Building an experience that lets you shop over 17,000 cars from home. Creating a coast to Coast Network to deliver your car as soon as tomorrow. Recruiting an army of customer advocates to make your experience incredible. And putting you in control of the whole thing with powerful technology. Thats why weve become the nations Fastest Growing retailer. Because our customers love it. See for yourself, at carvana. Com. It is time, it is time for the lightning round. Buy, buy, buy, sell, sell, sell and then the lightenining round over are you ready ski daddy . Time for the lightening round. Ed in new york, ed caller jimmy j chill. Whats up caller whats up you tell me, please. What is up with livongo . Its coming back. It shook up a lot of people. It creating the power house in the telemed company, in that particular space its a must buy. I was working on a piece tomorrow its a must buy. Gavin in new york, gavin caller hey, jim. Booyah. Booyah caller hey, i was wondering if youd give us your feedback on amarin corp they are doing almost nothing. I wont bless that one right now. Lets go to reed in florida, reed caller jimmy chill, how are you doing . Chill man in the house. Whats going on . Caller wonder if Celsius Holding stock is as good as the drink . This thing is so hot, i got to tell you. Lets do a whole piece i love the drink stocks. We did sam adams and monstemons. We got to do something on this ben, lets focus david in california, david caller hey, how is it going, jim . Thank you for taking my call im calling from california. I was wondering what are your thoughts on the natural gas industry, specifically a Company Called eqt man, ill tell you what i think. Thats terrible. I actually i mean, there is way too much you know, the stock does act like somebody is going to bid for it let go to jake in new jersey, jake caller cramer. Calling from small Town Mountain lake, win the day, lover the show. Very good, elks by the way, great lacrosse holy cow whats up . Caller oh, yeah. Got a quick question about the Home Building industry, specifically d. R. Horton. Horton is good. Look, how about lennar or k. B. Homes . They are on fire and i think they can stay on fire because rates are low and everybody wants to flee the cities as they say. How about luiz in north carolina. Caller hello, jim, its luiu in north carolina. We havent talked for a long time how are you . Going good. A how about you . Caller i cant wait to visit the restaurant until then, the restaurant chain im calling about, i want to know if its okay to keep accumulating this stock now 115 recent high 170. I see a lot of value in cracker barrel. If you think travel comes back and they will be able to have a lot of people in restaurants, its a great idea i myself am not recommending any restaurants because i think things are too difficult in the industry other than dardin that will clean up and chilis because they have come up with a wing solution that works. Lets go to joe in south dakota, joe . Caller hi, jim big booyah from south dakota. There you go. Caller hey, how it is going . I was wondering if symbol wrk was a goodbye no. No there is just still too much cardboard. No, no, no, no, no, i dont want you there. That, ladies and gentlemen is the conclusion of the lightening round. Announcer the lightning round is sponsored by t. D. Ameritrade rading, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn with the s p 500 and nasdaq hitting new highs, i want to focus on beaten down stocks that are pulverized like e health thats a Health Insurance marketplace with a digital platform that those People Choose the best insurance plans and enroll on coverage online. Coming into this year, e health was one of the greatest around the stock went from 10 to10 fo years ago in the last six months it has been frankly obliterated and in this case, its not about covid has the stock bounced back it didnt help in early april a short seller published a super negative report accusing management of extremely aggressive accounting assumptions and implying the economics were weaker. The damage came when they had a complicated quarter and headline numbers were better than expected it looked like a blowout there was a lot of worrisome stuff under the hood including a high churn rate for Medicare Advantage customers. The Company Raised guidance but the forecast implies the health will slow. If that happens, this stock is going lower. In response it went 30 pretty much what the shorts predict and since then drifted lower it was a stunning move and i dont know how to make sense of it is the market overreacting or should we be more worried . Lets dig deeper with the ceo of e health to get a clearer picture what is going on welcome back to kwmad money. Thanks. You did just go into the market and bought 50,000 shares, which is not a small dollar commitment, correct . No, it was a great value i couldnt resist it. Now, i have to believe that insiders buy stock because they think the future is brighter than the past. Which would imply that some of these critics who think the second half might be weaker could end up being wrong or else why not wait until the second half well, jim, last time i bought shares, they went up more than ten times. Im optimistic were in a great business. Were in the right market. Medicare advantage is very popular. 11,000 seniors are turning 65 every single day we have the right strategy we have competition but they have a different Business Model. Were building a world class e commerce platform. We enrolled over 30 of our seniors online just this last quarter so we have fantastic momentum we increased our guidance 30 million on the top line and 15 million on the bottom line here just at the end of q 2 and i think a lot of this success has gotten lost in the noise around the churn dynamic that you mentioned. Well, scott, i dont know i ran a subscription business for 26 years and when i saw churn that your churn ticked up to 42 , what that said to me was youre going to lose everybody in three years and i knew that when the company i ran had churn that was anywhere near the 30s, that i was doing a not good job and would have to disclose it to shareholders, which caused the stock of the street, which im talking about to plummet i do believe that 42 is too high, sir, having come from the business that youre in, i know thats not a good number what can be done to bring it down so jim, i completely agree. Ive been a subscription business also and it absolutely critical that you retain your customers. You know, seniors switch their plans because they can get into a better plan. Right. Thats part of our Business Model to make certain number one that we have seniors in the very first plan to give them coverage they need at the Economic Cost they can afford. That will always be our north star and we will build our Business Model around it when we saw churn tick up in late in the Second Quarter, we jumped on it we were fortunate that we were working with activate, i know its mentioned activate the new York Consulting firm on your show and we put them on this and my original concern was, you know, how much of this churn is caused by these Market Dynamics . Factors outside our control. Activate came back and said 90 of the churn is due to our own actions or inactions. Really . So weve already taken the steps that activate recommended which is three things. One, were hering more internal agents increasing our mix of internal versus external agents. Secondly, we aligned our agent compensation to reward them for retaining our members and third, we formed a Retention Team on this one, we were slow. Our competitors have had Retention Teams for several years and i fullied a miy ed aa focused on growth capturing market share, helping more seniors. We feel passionate about that and maybe we need to focus more on retention there is no question if the churn continues to escalate, it would undermine the Business Model so weve taken it very seriously. When you do internal, there is a season where most business is written and internal guy cant be laid off. I imagine there are seasons, other seasons that people are dead weight. Yeah, look, that was a big change that happened in 2019 because the center for medicaid and medicare services, they extended into q 1 the ability for seniors to change plans. Now that did elevate churn okay and it normally its seasonally normalizes over the course of the year but did tick up for us this year. Were able to keep those agents profitable and busy during those periods now because in the first quarter, the seniors can change plans and so keeping them on staff helps us there now we also have answer ldentaln hearing insurance, other things they can sell during q 2 and q 3 so the model has evolved where we can keep these agents on staff all year round when we were growing at hyper speed, we grew 88 last year, too much of that growth came from external agents so were just changing the dials, jim. I think it great that you came on air and said that, that you did a course correct using that company that i know which is definitely going to put you in the right direction and i understand why you bought stock. It can change. The model needed tweaking. And you did it that of e health it a 70 stock and obviously not idle particularly if the Business Model has been tweaked where the churn is lower which is what i cared the most about stick with cramer. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Cant really call it housekeeping but sorrento, were concerned about the saliva test and with perk and elmer, how many days they take anyway it doesnt sound as special as we thought how about this oracle possible bid for tiktok i believe its for real. The ceo is a genius and they need to grow faster even though my friend rick writes on the street that they wont know what to do with the company kohls was a bad quarter and they have lost their reason for being. I like to say there is all a bull market somewhere and i promise to find it for you here on mad money. Im gajim cramer and ill see y tomorrow you can call me the easter bunny. Thats eggcruciating. [excruciating] you can ride it to and from the train station. I want to be the next scrub daddy. Stop the madness. Theres more madness uhoh. What are you sales . 20 bucks a month. 20 bucks a month . Oh big merchants are going to love this. Thats crazy. You are going to get crushed. First into the tank is a business that hopes to be a popular holiday tradition. [ laughs ]