Transcripts For CNBC Mad Money 20240712

Under valued it sounds crazy. We had a remarkable blitz up we just came after that brutal sell off all the buyers vanished. Now suddenly were back dow surging 328 points and s p jumping and nasdaq pulled 1. 87 . Why . Why did it happen . Why was so great today because today is merger monday monday used to be the day we always came in and merged and stopped. Guess what its back and bigger than ever so i bought out the merger both. Merger. Merger merger. Yes i havent used the merger both, i dont know, four or five years and its back. All right, all right, all right. Back and bigger than ever. We spent a lot of time trying to figure out what stocks are worth, right the price to earnings. Price to sales and book value. All that stuff we try to do. There is another way to value this business. You look at what another business might be willing to pay for that business and today we got a wave of huge mind numbing deals that suggest there are many real bargains in mna. Merger. Merger merger. Lets start with this tiny announcement gilead silence is a gigantic biotech was acquiring immune medics for 21 billion. See, its real the stock traded at 4 eight years ago. Immunomedics has a viable cancer treatment. Stock could rally to 40, just this summer on rumors of takeover and gilead pays 108 premium on top of the 40 on top of the eight, on top of the two and guess what youre getting 88 per share from Gilead Sciences even after that massive price tag, the stock should be down, no, it rallied the markets judgment is this deal is good for gilead. Which suggests that i am immune. Mustically under valued at 40 look, okay, so belt line cramer fav nvidia playing for armed holdings this will crown them as the king of the semis by columbining graphics and data centers with armed processers for computers and cell phones. They are paying a fortune among nvidia stock up 100 for the year nvidia stock still roared again today. The deal is a game changer the only real objection, some analysts believe the anti trust regulators will put a stop to it i spoke to jenson wong and hes the bankable ceo and on squawk on the street and adamant the deal would pass. Given that he finally got the fabulous deal through the Chinese Government tried to profit initially, i believe him. He says what the add is to earnings and i believe that. It could be a steal because of the one. Arm is an extraordinary company. This build the worlds most popular cpu. It is build 180 billion units over its course of its history 22 billion of it last year and theyre in everything, theyre in everything. People are believers up 28 today. Up 28 on paying 40 billion for a company and most people dont know exist most people think nvidia is over valued i think they are wrong its 57 times earnings nvidia looks ridiculously expensive in 2018. The thing is when the actual earnings came in, they were higher than expected the stock looked absurdly cheap. It was trading at 20 times earnings 20 times earnings. I think the same thing could happen again here. Even as nvidia is the largest Semi Conductor company on earth by market cap. Jen conson is worth. Merger. All right how about this tiktok craziness . This social media site for morons jimmy chill. People that dont have a real grip being strong armed into spinning off the american business, a lot of us assumed it would go to microsoft. Turns out oracle wants it too and tiktok went with them. They are mum on the deal and there is a ton of interest from players. Microsoft teamed up with walmart because the Online Advertising possibilities are too phenomenal to innognore. Stop trading uhuh. Oracle rallied 2 and change a big move this is hardly a match made in heaven its an Enterprise Software company and tiktok is for kids doesnt matter tiktok is a great asset. Microsoft was up because nobody wanted them to over pay. My travel trust has a position and a Little Company called Seattle Genetics we had them on air and visited with them. They visited with us now, we this is a company with antibody based cancer treatments that i think are as powerful as the one gilead over paid 21 billion for Seattle Genetics didnt get acquired for but the giant took a 1 billiondollar stake at 200 150 on friday and closed today merck with another possibility merck stock rallied most of the day and closed flat but believe me, people have a deal it will be fat for recommending seattle gen. Nobody seemed about the oncology and the stock wouldnt evcouldna lift its on fire so is merck when you look at the longer term. They are both under valued finally there is, oh, boy, ricola nikola yes, this last week we talked how this electric truck play with a hiydrogen fuel cell sickr was there was a Devastating Research they filmed a truck rolling down a hill and edited out to give the impression its running on its own power cant make that up today nikola shot back but i couldnt get past this line called dispositive it never stated the truck was driving under its own in the video. They didnt mention it was shot on an angle and made it look flat flat thats okay. Didnt seem to matter. It jumped more than 11 on the rebuttal General Motors took a stake on niko nikola they come a long way after the fake truck video and bad behavior they reiterated they did their do diligence hey, you know what we actually did homework, i know you dont think we did homework. The dog ate our homework and a rebuttal worked. Maybe nikola is worth more than we thought im skeptical saying the scc is looking into it, which means frankly nothing. But it did drag the stock lower after the bell you can say im cherry picking and these are one off situations thats the wrong read. If we got this activity, you would expect the stock to go down, not up youre expecting them to rethink their attitude i know short sellers were banging down nikola and seattle gen. I know that immune medics was a laughing stock with the revolving door of ceos who is laughing now . Matters is the market has moved. Bigtime Hedge Fund Managers may say stocks are tie and dangerous. They were in a bubble, bubble, toil of trouble. They seem to think many stocks are under valued or reasonly valued and maybe hedge funds will be right but not if youre short immnumedics. Bottom line, will will be more sell offs ahead. The last week of september is supposed to be bad i want you to remember what happened today and i want you to try not to be too negative in case you need a reminder lets go to ojay in alabama, ojay caller how is it going its incredible its incredible today. Whats up with you caller everything is green im down here in gulf f shorshos about to evacuate the hurricane. Oh, gee. Caller walmart. I love walmart. Walmart is better than people realize because the snobs in new york that are analyst dont go to walmart i like my walmarts and i think its terrific and any time doug wants to come on air, this is where he should come on. This is where he should be because the stock is a buy lets go to taylor in michigan, taylor caller hi, jim a big chicago booyah. Well, okay. Right back at you on that one. Whats going on . Caller im calling about domo the company is working to become cash flow positive in the recent quarter with a term Loan Maturity suggests they are making progress. They are. They are making progress here is the problem. There is 42,000 of these companies and after awhile they get lost in the shuffle. I think its good utah based, not Silicon Valley but there is an awful lot of these and that does make me feel yes, there is a glut of those stocks look at this i like the last one. Tries. Never forget the truck the truck. [ laughter ] really remember. Merger. The market has spoken next time we get a sell off, i want you to remember merger monday mad money tonight ipos are like snow flakes no two are alike many hitting the tape this week and snow flake tell you if its worth considering ahead of the first day of trading and you dont want to miss that. How a race for the vaccine could impact the overall market and with pharmaceuticals down over the past few months, is it worth considering here im getting update from its ceo. So stay with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question, tweet cramer madtweets send jim an email to mad money dot cnbc. Com or call us at 1800743cnbc. Miss something, head to madmoney. Cnbc. Com. I cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. Makes it beautiful. Stateoftheart Technology Makes it brilliant. The visionary lexus nx. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Stocks by the slice from fidelity. 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. Lets get grand. Friday were about to get ipos. There are at least a dozen deals coming this week were in the neighbor had of 8 billion. Do we have room for that supply . The biggest one, the crest of the wave is snow flake the cloud based Software Company in the next generation Data Warehousing platform and one of the greatest websites if you want to find what they do, which most people dont know snow flake is everything wall street loves in a Software Company. It has triple digit growth rate. Its got rising margins, a terrific Business Model loaded with reoccurring revenue this is going to be a very, very, very, very, very, hot deal maybe too hot. The under writers raced the price range. It is expected to be the largest software ipo in history. Which means this will immediately become one of the most expensive stocks in the entire market. So what should you do with snow flake after it comes public on wednesday . Before we answer that question, you have to know what makes this so special a decade ago we heard about all the possibilities from big data. You know, spunk talks about that sales force talks about it companies have treasure troves of Digital Information and they could use that info to make better decisions weve now been through the big data revolution. We know it works in fact, its become essential you cant compete with the big boys unless youre collecting all this data and using it, mining it to learn more about what your customers want but since then, we had another revolution the cloud revolution and a lot of these big data systems for the cloud, companies have access to an immense amount of Computing Power but before they can apply it, there are challenges data tends to be siloed. You have to toggle back and forth. The right hand doesnt know what the left hand is doing or stored inconsistent formats or the old databases werent built to handle the volume you can squeeze out of the cloud businesses have this data but its a huge pain to get anything valuable out of it weve seen an industry spring up to help companies format and process their data they spend fortunes on this stuff. Hardware, Information Technology experts and on premise software. The costs add up and you see a room full of people trying to do the same thing wrong way to go. And that brings me to snow flake. Snow flake built a cloud base system that integrates and optimizes your data. You dont need an entire department to ask a question best of all, its cheap and you dont need infrastructure because its a software service. How big is this opportunity . The total adjustable market for their cloud Data Platform could be 81 billion they also touch on analytics, integrated platforms and business intelligence. Collectively a 56 billion market is growing like a weed. On top of that, this is an Enterprise Data sharing component thats not been measured because its new long story short, people are crazy about it its a great concept snow flake has the best plug lines. We mentioned this on friday but its worth repeating the company is run by a man named frank sluutmon hes service now another cloud play that helps back office jobs including it jobs. He took service. Stock opened at 23 and change. Its 458 how is your index fund doing he sold it to emc in 2009. He is a legend in Silicon Valley under his leadership they grew from 100 million in sales to 1. 4 billion in sales and thats what he wanted to do. Once he took it there, he said lets give it to somebody else im onto the next. A lot of look at snow flake as a great ipo. Look at the numbers, they are incredib incredible these are things that if youre in the business youre kind of blown away ill give them to you. Snow flake had 174 Revenue Growth last year that is so much better than any other company i follow its amazing in the first half of 2020 it sold 133 growth still insanely good no company can sustain triple digit growth then there is whats known as ipo or remaining obligation. Software companies started using them first to the money theyve been paid up front for services they havent performed yet subscription accounting. Think of it as a backlog the performance is up 233 last year not only slowed to 211 the first half thats quite simply spectacular. Total customers, more than doubled in the first half. Total customers with more than 1 million worth of business up 155 net revenue retention how much they are selling up 158 people, these are all better numbers than any company i talk about. Any company. There isnt one i mentioned that has better numbers than that company. Snow flake is losing a lot, thats what happens when you invest in order to expand. The numbers are moving in the right direction. You see why salesforce. Com and burke shire math away, warren buffet are taking 250 million positions alongside the ipo. Sales force is the obvious one they invented the cloud. Mark did the same thing when zoom video became public but burke shire maerkshire mathy if they like it, what am i doing saying im nervous one word, valuation. Originally snow flake came public at 75 to 85 per share but there is so much demand the price range dramatically and talking 100 to 110 per share. It looking like the company will be able to raise between 3. 5 to 4 billion and that assumes they dont raise the price further. Thats a bogus assumption. At the lower end of the range, my back of the envelope math says this is a 27. 7 billion company. Were talking 30. 5 billion assuming snow flake can keep growing 133 , they will have 615 million revenues and the stock will be valued at 45 to 50 times sales. Of course, if they can maintain a triple digit growth rate for the next couple years, that stock will look cheaper than the 2023 estimates thats a big if. In a market that loves cloud stocks and no earnings, 50 times sales is tough to waswallow. Zoom sales for 48 times. Thats the upper end of the range. You got to assume that snow flake will spike out of the gate that means it can be substantially more expensive than zoom. Zoom so where do i come down . Look, i am torn. I think snow flake is going to be a great long term performer i bet it will have a very strong first week but the price of admission seems too extreme for me unless you can get in on a deal remember, those who get stock will come in and buy more in the aftermarket and their cost basis will be lower than yours that if you came in the Public Market thats why so many buyers are insensitive to the price lets say they get 100,000 shares that would be a lot and opens at 200 they buy 100 or 200, they get a basis of 150 here is the bottom line, if you want a piece of snow flake and cant get a piece of the ipo, wait for the next tech pull back, which i know we have we had one at 10 . When the cloud stocks sell off, they sell off hard youll get a better entry point. Make no mistake, snow flake is a winner and if you insist buying it out of the gate the opening may be the low of the day. Stick with cramer. We got no free pass. Everything we have, weve earned. The unmistakable lexus is. Get zero percent financing on the 2020 is 300. Experience amazing at your lexus dealer. Can we get a Covid Vaccine by the end of the year . Thats the biggest question of the market and its nice you get 30,000 people into a trial just to test a vaccine its a whole production but thats the only way to know if the darn thing works and i cant be any 30,000 people you need to test with volunteers in hot spots with a realistic chance of catching the virus that in mind, as ttrazeneca is the lead but had a major problem with a patient we dont know what but enough to halt the trial if everything goes right, astrazeneca might have a vaccine by the end of the year pfizer is trying to get out there, too same with moderna. The vaccine bulls are charging of course, even when we have a vaccine in theory, you have to manufacture hundreds of millions of doses and make people take it that doesnt happen overnight. The possibility of a vaccine coming soon is the day to day drum beat and Decision Making and the market is saying today that the vaccine narrative has swung dramatically positive. Okay and its getting louder. So let me give you examples of what people are buying betting on a vaccine marriott rallied more than 5 today a bet on the vaccine of course were getting good numbers ocho up of cho out of china the hotel space is a house of spain. You can argue a big chain like marriott would be the last man standing but im not sure the market is that discerning. Its september vaccines are closer and closer they will come out in tact stronger than ever once the pandemic is over same goes for, by the way, hilton and host hotels their stocks rallied 5 . Next up is tjx well, this is complicated. Why . When this off price retailer reported, it was nothing short of a disaster. Now we own it for my travel trust and i dread talking about it on this wednesdays actionalertsplus. Com club call why . These guys really blew up. It doesnt have much of an Online Presence which is lethal and had the wrong inventory. The footprint isnt suitable for social distancing. The only retail there does well when you have costco where the aisles is so wide you can drive two carts through. Tjx stock is bouncing tjx will get terrific inventory. I think they will be in great shape once the pandemic is under control and people can safely shop in person tjx the stock is up 2. 5 today the market is saying why wait . A vaccine is on the way so buy retailers that work when the economy reopens, not ones that are essential that are not working as stocks. We saw the same thing in kohls and then bed bath and beyond up 9 and 5 respectively. I mean, you know, bed bath and beyond, youre talking about this thing they still use these things. I mean, come on. Its why a strip Mall Real Estate investment and a regular Mall Real Estate investment Like Simon Properties could sore in todays session. Not that long ago they were written off and left for dead but they will survive if we get a vaccine in the fourth quarter. Bed, bath is making Real Progress its got a long way to go if they are using coupons hard habit to kick, isnt it what else . Look at tapistry totally, they are unstoppable just horrible. Now the stock says all is fine i actually like the quarter of ralph lauren and they reported and i think their digital efforts will pay off that seems attractive. Pvh had a big decline in inventory. I prefer to buy the best in retail thats lowes, home depot, costco and walmart and best buy and williamssonoma have excellent prospects and target is a bargain at these levels given how incredible the quarter was. Thats not what people want. They want survivors, not saviors at least today look at darden they had a huge rise i dont know how to interpret that other than to stay in business and many competitors cant. They dont have a balance sheet. They have deep enough pockets to ride out the pandemic and plenty of customers happy to order takeout. Chill ch chillis had a great stock. Which restaurant chain taco bell and pizza hut are getting concerned about cash strap franchises if they can improve, the stock will sore and the vaccine will represent a major improvement. Papa johns is doing well and dominos. There is Penn National gaming. My favorite consumer chain they always recommend las vegas, sands, wynn. Give me a break. This is the right one. It used to be considered with lots of middle american exposure the hottest Casino Market on earth. Thanks to the tieup with bar stool, it will be the premiere state. I bet it goes nationwide i cant believe the stock traded down 3 and change in march. What a steal it 65 and had a huge run including 6 or 10 . When people see how well bar stool fits in, the numbers have to come up there are plenty of gamblers that want the nfl and penn you will get better odds with the ladder buy some wait for a pull back to buy more there is one other possible explanati explanation. If congress can rescue the companies, that would be huge. My hope is they will save the struggling small and medium size businesses that cant make it without a covid bailout like the incredible discussion that is so right. This small medium guy has to bail negotiations are stalled but maybe people are betting that they go somewhere today or responsibility but i dont like to bank on anything. Here is the bottom line, if you want to speculate on a vaccine, go to Penn National or yum brands but if you want the deepest value in the group, it has to be the cruise likes not the airlines that have too much price the cruises have little excess capacity and offering tons of great deals. These stocks bottomed a long time ago my favorite is norwegian cruise because they raise enough cash to hold autowith t hold out with a vaccine, oh, they will all be fine. Lets go to illinois caller booyah, jim, how are you doing . Im okay. How about you . Caller doing good. My question is on pfizer with all the buying between europe and u. S. 300 million, wh isnt the stock low 58 . Its a bond with drugs. How about william in michigan. Please, william . Caller hi, jim, how are you buddy . Im good. How are you . Caller im doing well. Thank you. The reason for my call i would appreciate your opinion out movie industry and the stock i purchased last week. Cinemark my vision is the vaccine will jump start and movie watching at theaters will become normal again. Im willing to be patient with a longterm hold what are your thoughts i think youre dead right we had adam aaron on who is the ceo of amc when the stock was at four we have to clean it up it will be open. By the way, both companies when we get a vaccine, youll say why didnt i buy it when you said . How about samuel in missouri caller booyah ski daddy. Yo. Caller im calling about ldos. Yes caller the last quarter they crushed earnings like a left hook from manny pacquiapacquiao it seems the stock price took a haymaker to the chin do you see this as a growing trend its a great company. The stocks are trading down because of fear of a biden victory. The democrats spend as much as republicans on military. Lydis a great call. Were seeing vaccines impact day to day decisions choose wisely but this group im really digging the yum im liking the norwegian and i think youre not going to go wrong with the penn. Much more mad money ahead including farm ma. It could be a read flag or buying opportunity stock splits are under fire are investigators looking at them wrong all your calls rapid fire in tonights edition of the lightening round so stay with cramer the lexus es. Every curve, every innovation, every feeling. A product of mastery. Lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. Good morning, mr. Sun. Good morning, blair. [ chuckles ] whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. With the icon that does the same. The rx, crafted by lexus. Lease the 2020 rx 350 for 409 a month for 36 months. Experience amazing at your lexus dealer. What is it going to take for a real Pharmaceutical Company to break away from the unjust association with the cannabis cohort which has been going down this is a bio farm ma company. For example, they have a terrific drug thats very helpful for children suffering from rare types of epilepsy. Because of that cannabis connection, i think the stock seems to trade with the weed place and thats a rough category to be stuck with when youre a drug company. I think gw is under valued but dont take it from me. Lets dig deeper with the ceo of gw farm gwp h, a a gw fapharma. I see sales are well over 100 million is this the beginning of a very big ramp for a drug we know is incredibly important for a lot of unmet needs i really think it is. In the first half of this year total revenues for gw were 240 million. Essentially, thats from a launch that only took place over 18 months ago. So even not with standing covid19 and all the challenges, the product continued to grow in q 2 and we just had a new indication approved doubling the potential Patient Population for the drug and are now launching that exciting second half of the year to come. I was concerned about your company because i see so few people willing to go to the hospital i was surprised that the demand is so great telemedicine played a role. We are excited to learn in the world and physicians are doing so and were doing so as well when you have a drug treating seizures and patients that have nowhere else to turn, even in the context of a pandemic, patients still need this kind of medication and doctors want to prescribe it to patients and thats exactly what weve been seeing. There is a drug used for people who are bipolar and there is millions of people. Thats a seizure drug. It hasnt been nothing new since 1994 a lot of people on that drug would love to know if they could benefit from epidiolex. What weve been doing sequentially is expanding the potential Patient Population through Clinical Trials through getting good data and the fda to approve the medication as such, as we look forward as i mentioned we just expanded to a new form of enhelp sew on the complex there are other types of seizures and epilepsy that we are studying and will study again in the future. So epidiolex is here to stay and well see more as we produce more data. Do you think the fda might be inclined to give you a green light to do big trials that could replace these old seizure drugs for Mental Health . Well, we are i mean, i think Mental Health is a slightly different issue we have another program in sk schizophrenia and month l heaenh they said how important it is for them from the cannabis plant with real data and quality control, safety information, dosing information and so on i think the choice is ours and were determined and committed to do what we can to help those patients with epilepsy safety and dosing are two reasons people thought there would be no problem with cannabis just plain old and thats a major problem because the doctors dont want to just have to approximate which brings me to what i really want to talk about, which is what people are starting to buzz about, which is sorry if im pronouncing it wrong here we finally have a cannabis derived but dosing and i bet there must be maybe tens of millions of people around the globe who taking this drug. This is an extraordinary opportunity. Ive previously been on your show to talk about epodiolex being the beginning. The second drug, the consequence of all the work weve done for epidiolex and it will be in Late Stage Development in the u. S. For patients with multiple sclerosis to expand the potential population well beyond multiple sclerosis and this could go into the fda as soon as next year. Its an accelerated development pathway. The market potential is significant and just to give you an example, jim, just this weekend is the big global ms meeting, multiple sclerosis meeting. A survey was published showing that in the United States one third of patients with multiple sclerosis are today having to resort to some form of unregulated cannabis product because they dont have a regulated fda option available so you can just see that as we did in the field of epilepsy, we can meet the needs of patients with multiple sclerosis and those suffering with other muscle problems from spinal cord injury, stroke and so on in the future its a really, really important new and Exciting Development for the company. Youre doing a lot of Cannabis Companies told me they would be doing it two years ago. They said wed have it i would lake to know the dosing and each time they give me a different dose because they didnt know. No doctor is going to make up a dose youre the only one in the field and should be considered like a bristol myers, not like and im not going to pick on any particular Cannabis Company but you no what i mean they are unregulating. I do. Weve been going for 20 years, jim, as you know weve broken through barriers throughout the last two decades. We continue to do that but what i do know with the epidiolex approval, patients, health insurers, the fda, dea, regulators at large understand that we can produce for them high quality evidence based medicines derived from the cannabis plant and thats what patients ultimately desearrve to have. Thank you so much agree with you the ceo of gw pharmaceuticals. Great to see you terrific. Thank you. Its not a pot drug. It a company that recognizes how great some of the strains of natural cannabis can be and they make it so you can get it from a prescription, which is what matters. Mad money is back after the break. Some see a Grilled Cheese sandwich and ask, why . I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. How did you come up withd opened all these backstories . Tudio. I got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. Makes it beautiful. Stateoftheart Technology Makes it brilliant. The visionary lexus nx. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. It is time, it is time for the lightning round. Rapid fire calls buy, buy, buy, sell, sell, sell and then the lightning round is over are you ready ski daddy . Time for the lightening round. Lets start with jerry in new york, jerry . Caller hey, jimmy chill, thanks for taking my call. No problem. Caller what are your thoughts on fhm . Its a bank the banks the only thing people wants is fintech and First Horizon is doing well but nobody seems to care how about christopher in texas, christopher . Caller booyah cramer. Firsttime caller. Quit shoutout to my buddy monroe mergi what are your thoughts these are blank check companies. They get the money and do what they want. Other than utz, ive not been in favor of these because i dont have any sort of real feel for them lets go to jim in michigan, jim . Caller hi, jim sorry to hear about your og. Yeah, thank you its tough its tough we like i like hes a good boy. Caller yeah, theyre part of the family. Yeah. Caller one of my stocks is down 12 months 12 in the past month what do you think of cvs i made a mistake when i bought cvs for the travel trust. Im trying to go over that i said it on my calls on wednesday. I dont want to rationalize a bad stock. I do believe when there is a vaccine, it will go higher how about tara in new jersey, tara caller hi, jim. Hi, tara. Its a financial i sound like a broken record i dont like oils and dont like financials lets go to alex in georgia, alex. Caller yes, sir. Whats up, alex caller id like your opinion on go co go house im in around 15. Insurance Company Health insurer those wont go up until after the election is over you have to do holding on. Lets go to eric in michigan eric caller jim, calling from wolverine country in ann arbor, michigan. There you go. Thats where you should be. Caller my question is on the at home group. We had lee bird on. I mean, the stock is just up by 200 but i thought lee told a compelling story and i dont think its over. Maybe 14, 15 you can buy some. Tina in ohio, tina caller hey, jim. Yes, tina. Caller the other day my husband tom told me one of the things he loved about me is i introduced him to you. Thank you. Caller we made some mad money thanks to your coaching. Thank you. Caller youre welcome. Im looking to buy a stock that would be good on either side of the covid barbell. What do you think of cintas . We recommend it and lindy, once you buy the best competitor, you make a fortune and that ladies and gentlemen is the conclusion of thelightning round. Announcer the lightening round is sponsored by t. D. Ameritrade everything we have, weve earned. The unmistakable lexus is. Get zero percent financing on the 2020 is 300. Experience amazing at your lexus dealer. Experience amazing tmobiles new offer on iphone 11 pro is even better on our most powerful signal. Switch and get two new lines of unlimited for only 90 and 2 iphone 11 pros on us. Only at tmobile. This got me really upset, stock splits stock splits are under fire because apple and tesla just did a couple big ones and their shareholders dont seem to be benefitting from it. My gut response, come on the existing shareholders were never supposed to get anything out of these moves remember, in theory, splits were totally meaningless. Perhaps for new Share Holders people wanted to buy but got sticker shock and instead of buying 6, 7 stocks they shouldnt be buying. The splits have been terrific for older shareholders, too. Apple is trading to the equivalent of 96. Now its at 115 a pit stop at 134 tesla was announced to spike to around 500 by the way, people, thats still a huge gain. The real problem here is that we got a ton of knew bnewbies. They thought it would come after the split, wrong and wrong the only thing inticing and why do we care about this dynamic the newbies have a lot of firepower. Thats in part because more than half of the money is ridiculously, it is being passively managed so people arent making judgments on stocks and you can etfs are probably close to 60 . The robinhood traders actually like stocks like the old days with them and they gravitate toward what stocks have low prices whose names they heard of ford and general electric. There is nothing wrong with that ford has a new ceo if he can break free from the tradition his company has to have cars from everywhere and a case for owning this one ford is way behind on electric vehicles and have a promising at autonomous driving system. Larry is doing a great job under extremely difficult circumstances given the principle business is aerospace. The traders that trace stocks dont care about this stuff. They like ford before farley took over dragging the stock down 7 and dont get me started on g. E. Unless you think well get a surprise Covid Vaccine maybe tomorrow there is not a great case for owning anything, at least not this year. But they like it because its a 6 stock they like the low dollar stocks that brings me back to apple and tesla. I said over and over the normal response to a 41 or 5 for 1 split is investors sell a little maybe one of the new shares. Besides those two stocks were due for profit taking because they went up big on the split. Unfortunately, they were so essential to the market when they rolled over the averages rolled over, too they are bouncing and averages are bouncing after the splits were announced, you had to wait for the moment because the time to buy was post split weakness, not after the split was announced. If youre patient, you got a great deal i predicted the sell off i didnt predict they could come out of the wood work given that tesla and apple are up, they couldnt be more wrong. Make sense splits are bad for investors they make trading more expensive because these guys pay commissions per share. Just be aware when you hear a h Hedge Fund Manager saying splits are bad, they could trade in and out and hurts them to compete against what they care about with an index Fund Benchmark i dont know how anyone serious can look at apple and tesla and conclude splits hurt shareholders when stocks were up i love to see one from adobe, a company with an out of reach 485 stock when the company reports. The problem is not splitting the stock while splits create no value, they headacmake shares f accessible to home gamers. The key is if youre going to trade into a split, you cant make the mistake of buying hand over fist after the announcement with the stock going up for no reason i hope more stocks take their queue from apple and tesla take it from the post split pull backs to do buying, not when its running because they announced the split. That makes no sense. No value stick with cramer. At leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. 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 Commission free today. Every curve, every innovation, every feeling. A product of mastery. Lease the 2020 es 350 for 359 a month for 36 months. Experience amazing at your lexus dealer. To deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Jenson is a genius and this deal is amazing and i genuinely believe if he can get it, this company at 300 billion is going to turn out to be an inexpensive stock to buy so stay with nvidia. Do not sell it thats how i feel. As a matter of fact, if it comes down, i would actually say buy i like to say there is always a bull market somewhere and i promise to find it here on mad money. Im jim cramer and ill see you tomorrow male announcer this week on undercover boss. The chairman and ceo of diamond resorts international, one of the largest timeshare organizations in the world, poses as someone frustrated in his current career with dreams of finding a job in hospitality. Hi, im jack. Im sarah. Hi, sarah. You dont see any flames, do you . Announcer by working on the front lines. No flames. Good. Its hot, though. Whoa watch it, now. Announcer hell find things are not up to his standards. [coughs] i personally dont like it at all. To say the least, i despise it. I just dont see anything in miami, florida. Announcer and when he reaches his breaking point