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tv   Mad Money  CNBC  September 25, 2020 6:00pm-7:01pm EDT

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level. i'm looking to sell a call credit spread to take advantage of that downside move. >> mike khouw? >> i think that the near term highs are in nike post earnings so i like calendar spreads there. to follow up on the jets trade, use callprri sead sk reversal to take advantage of the high implied volatility field for all investors. there's always a bull market somewhere and i promise to help you find it. kw "mad money" starts now hey, i'm cramer, welcome to "mad money. welcome to cramerica other people want to make money, you my job is to entertain and teach you. call me or tweet me @jimcramer we're almost done with this heinous month and it can't end soon enough. the dow gaining 359 and s&p
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climbing and nasdaq pole vaulting 2.26% september has still been ugly. i've been warning you that this is historically the worst month of the year. ever since august ended, complete with a nasty ten-day close and that's precisely what we got but now that september is almost over, let's focus on the future meaning next week's game plan. it starts on monday when we get results from the mighty four industries which dominate the rv and motor home industry. when the pandemic first hit, ford sold off hard as investors figured we'd have a normal recession and rv sales get slaughtered. sure enough, we have a slowdown and mass unemployment and an incredible boom in the rv business because these things represent one of the only safe way to go on vacation. since then, thor stock soared but tends to pull back every time people get excited about a
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potential vaccine. lie i can th i bet rvs stay longer than you might expect tuesday we hear from companies that can potentially deliver upside surprises that might turn your heads mccormick, the spice make you are you know i've been a fan of right and micron which is the chip maker, that's a little more controversial. mccormick's stock exploded higher and flew too close to the sun and it's pulled back to 191. september has been bad right now it's only slightly above where it was before the great quarter. right now wall street is obsessed with what will happen when the pandemic comes to an end. will people still cook at home with mccormick's spices and use frank's hot sauce? wait a second. people developed new habits. they discovered they like to cook the food service business that hurt mccormick improved. that smells like another upside surprise but at this point the analysts might not care and they might not get behind it.
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micron is really, really difficult to get to. see, this is a commodity semi conductor that has a product with not so hot pricing. the business could be saved by their disk drive business but i don't see the stock worrying unless management sees tightness coming in d rams then you'll get a terrific move up and why didn't day tell us to buy it tuesday night we got the first debate between president trump and vice president biden you know what we'll do here? watch for a stock market implication including talk about raising the capital gains, if biden wins and democrats take the senate wednesday we'll take the temperature of the housing market the hottest part of the economy. as long as mortgage rates remain low, we'll see strong home sales but there is a problem there is not enough homes. not enough homes for sale. lots of people worried home builders have peaked i don't think that's happened as long as the supply is tight. that means the stocks are cheap
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but you see if there is a shortage of homes and they don't have enough inventory to capitalize, they will get clobbered. time to be selective don't just buy the group the supply situation is under control, dr horton is the one that makes the most sense at this point and i've always been told for a decade it's just that those are two that are more on paint. thursday is the official start of earning season and we're about to get results that reflect three more months of covid-19 as always, pepsi co gets the ball rolling and i expect good things so we own pep for the charitable trust you can follow along at actionalertsplus.com. the stock is down 14 points from the february high and supports a 3% yield that means there is less downside risk with interest rates low and i bet pepsi is having a great quarter and we're snacking like crazy from home. right? the work at home people, they can't stop eating frito lays
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i like this ahead of the quarter. we buy it. i like conagra i bet the frozen food business is strong. millennials love it. i have less conviction because it yields 2.4 % and the stock is cheaper on an earnings basis the levels on the sidelines for let's just say it's lack of longer determilong longer term consistency and consolatitellation brands and b bath and beyond. constellation is killing it even though bars are closing at a frightening pace they have the fastest growing portfolio and rapidly growing sell z selitzer nothing is good enough for the stock. it doesn't matter. i want to hear about the investment in the canadian cannabis business but that industry comes down to a
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democratic sweep in november november the home base is too saturated read that aurora cannabis bed bath and beyond is difficult because it's a turn around story. turnarounds are tough to pull off in the best of times and often lead to disappointment i think the ceo is doing an amazing job and bed, bath sells housewares we heard that from jeff the other day from macy's. this company never spent enough on digital and titan is still in the process of improving the once terrible cost structure honestly, i'd be willing to take a chance on bed bad ath and bey. the stock has a huge run and if it keeps climbing into the quarter, i think it will come in too hot. i've been a big believer in the turn around and from when it was, say, 10, 11 i won't give up on it now. the bar is very high thanks to the recent rally plus, bed bath is very heavily shorted. people betting against it.
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60% of the float is short which is insane. those shorts will try to fullment panic by slamming the stock down after the quarter say nounsed. the numbers will come out and before the conference call and it could pull back hard. people think wow, it must be a bad quarter. be ready for the possibility watch carefully, if the shorts push to low teens, say, after a solid quarter, i'll come and say buy it on friday we get the labor department's payroll report as the clock ticks closer for the election, this unemployment data is more and more important friday's number will disappoint because we haven't got more stimulus and we're experiencing a second wave of covid maybe it won't matter as much as usually does because this is a highly unusual election. the protests turning to riots and the fed trying to keep rates as low as possible the unemployment numbers weak. it will have an impact the bottom line, we're finally kissing the month of september good-bye next week
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good riddance. i don't know if october will be better but i doubt it could be much worse let's go to david in new york, david? >> caller: hi, jim, how are you? >> good. how are you? >> caller: i have a question regarding cisco corporation. i owned it since june of this year i bought it at $63 it's bounced down to the low 50s and up to 68 in recent weeks at 62. what's your assessment of this company, a view of the current. >> at almost 3%, i'm going to have to defer because i see so many restaurants going under as we get into colder weather it's going to be worse so i'm going to have so to say no, this is not for me let's go to brandon in my home state of new jersey, brandon it may not be brandon. is that brandon? >> caller: hayden. >> hayden.
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excellent. what's going on? >> caller: i'm in kentucky but anyway, my question is on reynolds i heard about it when you brought it on several months back made a little money on it and sold it a little while back but after earnings and i've seen it's been dropping down like 8% in three months. >> right. >> caller: i'm wondering -- >> i'm going to tell you, these stocks are not working when i say they are not working, i mean that people have decided that these soft goods, that these are pantry stock companies that we're not doing that anymore. so therefore people are letting these go and i'm not going to get in the way of that now michael in california, michael >> caller: boo-yah, jim. >> boo-yah >> caller: so as you likely know, legendary larry hamilton and his company super foods just went public. given that industry trending more towards health conscious food, do you think consumers
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should ride the wave or let this pass thanks a lot. >> i know. you know, i know i sound repetitive but i like beyond meat that's the one i like. i just think that you don't want to have million in this game because you end up with a unfi that blew up and i don't want that i have faith ethan brown is going to deliver beyond meat and that's what i'm doing because that is the best in show and i have always been a best of breed guy no matter what september has been ugly. thank heavens for today but it's been ugly. almost done. i don't think october could be worse. on "mad money" tonight, as people look for ways to get out of the house but still stay isolated from others, could a company like brunswick make sense here the boating company. i'm talking with the ceo the next tech debut is on debt it's set for $22 billion thing called a direct listing. we'll explain. i'm talking about what to expect should you buy the stock from
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costco in bulk here? i'll tell you about the whole sale club's business is made for this moment so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer #madtweets send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. introducing stocks by the slice from fidelity.
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what will the heck happened to the great outdoor stocks? after covid hit we saw an incredible rally and anything with recreational rvs, camping, boats, the only way to go on vacation while maintaining social distancing. the stocks cooled off. think mercury engines. it surged to a multi year high of $74 for pulling back to roughly -- down 20% to $58 and
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change and while the stock rallied, it gave up the gains. that was the tale wall street was turning against the outdoor plays. this business is seasonal. i think this year is different brunswick had lean inventories and throw in the insane level of demand and poilsed they are poio make a fortune let's check in the w krrwith th brunswick. welcome back to "mad money". >> thank you, jim, great to be here. >> david, there is a misp misperception on wall street we had this pandemic and great social distancing for awhile and that trend is over so you shouldn't own brunswick because it's going into the hint winter your sales have held up much better. >> they have last time we spoke, jim, was in the middle of the selling season we had huge demand we were up, think, 40% over prior year but this season is
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really extended. even in the presence of tight field inventories, just in early september, sales are still up significantly. i mean, really significantly versus last year now, inventories are low so supply is a bit constrained but our production is going up quickly. we're hiring people, reducing as fast as we can we hired almost 1,000 people over the last several months just to keep producing and as we exit the selling season in the northern markets, we need to keep our production levels up to fill tremendous dealer demand for restocking in the first part and through most of 2021. >> so david, what a lot of analysts tell me is okay, jim, you're too wild about these situations is here is why. the pandemic is almost over. once it's over, it will go back to where it was. that's wrong in two places, the p pandemic is about to end and the
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boater, particularly women want to boat. >> as we said earlier, jim, in june through most of the second quarter, about 40% of all the boats we sold were to people who had never boated before and you're right, that over index on younger people, more women and more ethnic minorities a great new cohort of younger people and more women coming into the boating space and i think really reenergizing it in a way that will carry the boating volumes forward into multiple years of course, the low field inventory is generating tremendous stocking demand from the dealers, too we expect next year to be extremely strong. >> you're putting your money where your mouth is. if things were really bad, you wouldn't do a repurchase and if things were down you wouldn't be paying down the revolving credit facility. >> we see the pull back as you mentioned, jim, which is across the sector but our cash generation has been very strong
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and we felt it was the right time to go back into the market. we expect to complete $100 million of share repurchases this year and we think we're taking advantage of this pull back because our stock has plenty of room to run. >> how about the differing kinds of boats are people trading from my 17 foot to the 26 like my wife wants? are people buying more expensive boats and there are some really, really gorgeous boats that are more expensive than the one i have. >> brunswick has a tremendous portfolio value boats through mid value boats up to the premium brands like boston and stingray we have entry points for everybody. people are certainly trading up but really entering the market all up and down the portfolio, which is remarkable. >> this freedom boat club. you're much fewer locations even when i and tell people about
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that that's another way to get involved for those who want to boat. >> you pay a monthly fee and a n the club you can join the area we had about 170 locations when we bought freedom boat club a year ago we now have 243 locations. membership up about 30% just this year, twice as many women joined freedom boat club as buy boats. the demographic is three we're a completely demographic exciting growth and tremendous energy with the core business because they use brunswick boats and mercury engines. this is a success for us. >> i go out boating. i fortunately have a place on
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the canal so i see who is driving the boats. i think because there is no camp or nothing to do or people do it at home. i see 17, 18, 19-year-olds driving boats, beautiful boats i wouldn't have entrusted if you're 25, 30. has the age gone down of people who are learning to boat >> it definitely has, jim. between 2019 and 2020, the average age of a brunswick boat buyer went from low 50s to high 40s. what some of our brands, our hay day which is a value wake sports brand, average age of a buyer is about 39 certainly the usage of the boat is by people at a much younger -- if you think about the fact that there are about ten to 12 million registered recreational boats in the u.s., with about 140 million people every year participating, boating in someway in the u.s., you know that there are a lot of young people participating in
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boating even if they don't own the boat. >> one last question speaking of young people young people like electric vehicles there is this outfit in sweden that has a chargeable boat any hope we could see some sort of ev from brunswick >> we have a lot of activity going on on electric marine is a different set of physics but electric power is coming in. it was very purposeful when we bought power products including the leading advanced battery manufacturer in marine that's part of our portfolio and that is an area where we're working a lot. you'll see electric come in around the edges of marine and it will be a long time before it replaces some of the core product. when you think about when electric vehicles became popular, it was when they were able to demonstrate utility that was equivalent to a conventional vehicle and we're a little way away from that what is this space certainly we'll see more
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electric boats in the future. >> all right that's terrific. anyway, the stock has come down. anybody who has ever boated knows it's the most fun thing in the world. i'm surprised your stock got this low i think it's too cheap you do, too, or you wouldn't have announce that repurchase. thank you so much. >> you're very welcome, jim, great to see you. >> one of my themes is whether it be cooking, whether it be costco, whether it be boating, this stuff is now engrained. it's not going away unfortunately neither is covid symbol b.c i like it. the lexus es.
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over the last few weeks, we've gotten a slew of red hot initial public offerings with a nasty sell off in the nasdaq because money managers need to sell their existing holdings if
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they want to participate in these incredible deals fortunately for the bulls, the ipo market is winding down for the moment but there is one more big deal coming next week just don't call it an ipo the direct listing of the data mining software company that dominates the surveillance space. if you don't remember, a direct listing is when a company lists a sucertain number of shares on an exchange without raising money and we saw the same thing. even when it comes to direct listin listings, it's different the company is secretive because that's the business they are in. on top of that, they have a weird corporate structure to ensure the founders have a controlling interest and some of the work is controversial in the envier 7 environme environment. still, this will be another hot one. be prepared for the direct listing which is currently expected next wednesday but the date is pushed back a couple times. what exactly do these guys do
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and why should you care? it got the start from the intelligence community at the height of the war on terror and expanded into working with commercial clients now the company has two platforms, palantir gotham and foundry. they are hunting for needles in a haystack in iraq and afghanistan and helping business hunt for new customers they were helping the government hunt for insurgence. the platform is used by governments worldwide. once you figure out how to search through different types of data to find patterns and present those patterns to the people who call the shots, you've got something that's useful for more than just hunting terrorists that's where palantir foundry comes in energy, transportation, financial services, health care, the whole world is going digital right now and everybody wants to get more out of their data when you combine the commercial and government businesses, management estimates they have
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$119 billion total addressable market the thing about palantir is they are good at what they do they put up incredible growth because they are bringing in commercial clients they had 25% revenue growth and the first half of 2020 they had 49% revenue growth that's an incredible acceleration right now the company has 125 customers in 36 industries spanning 150 countries they are winning lots of new business and from old customers. how about profitability? after 2019 they lost $167 million excludeing stock base compensation in the first half of 2020, they made $17 million excludeing the stock based compensation that's incredible. they are also more efficient these days it only takes them 14 days to install their software with a new customer down more than five fold from the year before needless to say, an it project that take twos weeks is less expensive than an it project
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that takes two months and by the way, in some cases they can turn their platform up and get it running within six hours however, there is real negatives here so i want you to hear anything from one thing, palantir has a lot of stock based compensation they are paying a attract and reach talent even if the cost is in new equity, not cash. speaking of cash, the company is a long way from cash flow positive in the first half of the year they had 226 million in cash flow from operations that's not great. they lose lots of money and rely on raising capital to keep running. there is nothing wrong with that when you have a huge growth opportunity, you need to spend to take advantage but definitely worth keeping in mind. palantir has given us a ton of guidance, way more than you expect from a public company they have a forecast for the full year and next year. a lot of people are shying away from that. 46 to 47% revenue growth for the current quarter slowing to 41 to 43% for the full year that suggestions that the fourth
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quarter could be not so hot. for 2021 they will only say to expect more than 30% revenue growth meanwhile, their operating income is positive when you exclude all the stock based compensation that guidance changes the story in good ways and bad on the bad side the accelerating revenue growth and as low as 30% next year. and deliver and given the tone of palantir's perspectives, i find that unlikely i starts with a letter from the founder and ceo alex carp with the rest of the technology initiateed to set palantir apart. those operating profit numbers look great if you believe they can hit the targets. they are still burning a lot of cash and issuing a lot of stock but the margins are absolutely headed in the right direction. what else do we need to take into account i don't know if it matters to you but they are willing to take
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more ethically dubious work from the government stuff that let's say google refuses to do. more importantly from the stock market's perspective, a direct listing is not an ipo. typically, ipos have lockups on insider selling. you have to wait six months before the executives and private investors can dplood fl market it's held by existing investors until early next year but compared to the most recent ipos, 20% of the float is high just be ware the lockup ends sooner than you might expect finally, palantir's protocols are borderline obnoxious i haven't seen this egregious rule since the deal. palanti eer palantir's founder gets variable voting power they will control 49.9% of the voting power if they sell down the position plus, as the "wall street journal" reported, the company does a lot of so-called related party transactions
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for example, the company led $25 million to the founders in 2016 and only repaid it in august right now this stuff may not seem like it matters but if they screw up, common shareholders can't do anything about it sell if it sdnl work how much should you be willing to pay we heard that the stock could start trading around $10 which would value the company at 22 billion from get-go at $10, the stock would be trading at 20 times sales or 16 times next year's numbers assuming they come at the low end of the forecast. that makes palantir cheaper. i'm he sitant to give it a full throated endorsement right now the numbers do look good if you can get it for around $10 for less on a pull back, you have my blessing to buy it don't pay up too much for it there is too much mystery to it and too much selfishness, too, when it comes to corporate governance let's go to arbon in new york.
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>> caller: are yhow are you doi? >> well. >> caller: i appreciate you allowing me to ask my question live i enjoy the show. >> thank you. >> caller: my question is related to the e commerce car buying space as a one to one and a half year investment what's your opinion on that? this is a tough one. it's a tough one because i am a car max guy. i think that vroom is guy and i'm a cacarvana guy. i like the other two i mentioned even though these guy haves smart people working for them. let's go to sam in tennessee, please, sam? >> caller: hey, jim. quick question. >> sure. >> caller: with beyond meat's price target downgraded, what does that say for the fmci merger what is your price target for
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chef merger? >> look, this is one of those again. i've looked at the chef guy. i'm a beyond meat guy. the beyond meat is the best of breed. i'll reiterate i think beyond meat that held up under a huge on slot of people not liking it is the winner in the category. palantir's direct listing is a big deal i can't give you my full blessing much more "mad money" ahead including my take on costco. what is the signal about the covid-19 pandemic? i'll reveal it time to turn in homework don't miss my take on under the radar names i learned from you cramerica and all your calls, rapid fire tonight's edition of the lightning round so stay with cramer stay restless
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whenever you stump me by calling in to ask about a stock i'm not familiar with or that's fallen off my radar screen, i always promise to do the research and get back to you with a considerate response but 2020 has been crazy and tonight we'll play catchup let's start with jtim in new york he asked about eight by eight. this is a the rare cloud stock that is lagged 8 x 8 is much like 59 or ring central but they are fabulous. this thing peaked at $26 since then it had a wild ride sinking to $10 after the covid crash in march and rebounding to 20 in may before coming back to 15 and change up today 8 x 8 is down 16.5% for the
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year it a cloud stock ring central is up 60% very much in demand thanks to the pandemic so what's happening with 8 x 8 it's not rocket science. they are growing much, much faster with much higher margins. when this company reported late july, they delivered a slightly better than quarter with in line guidance and the stock got hammered because the response was not good enough. when i say not good enough, let me put this in context when we talk about the software service, there is a quick rule of thumb that makes it easier to separate it's a short hand i keep in my head that we do before we come out here you take the revenue growth of the rule of 40, the revenue growth and add the ebitda margin, the sales they keep as earnings before interest, taxes, depreciati depreciation the sum is more than 40. the stock is worth your consideration. if it's less than 40, ignore it.
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the idea is there are two ways to win the cloud space lose a lot of money as long as you have very fast revenue growth or have slow eer growth s long as you're turning a descent profit if you have slow growth and unfortble, that's a losing combinati combination. the cloud like ring central passed the rule of 40 test 8 x 8 has 26% revenue growth and very slow for a service play coupled with a negative 5% ebitda and there is a rule of 20 throw in the fact 8 x 8 gets half of the sales from small businesses at a time when most small businesses are in bad shape and it's easy to see why this stock is a poor performer the best thing you can say about 8 x 8 it is inexpensive because i see that's an ominous sign investors are about -- remember, they are worried about the numbers so they aren't paying up maybe someone would buy the company itself but that's my only fear to tell you to forget
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about it is maybe someone buys the company. if you want a cloud based stock, you're better off sticking with the higher quality names like cramer favoring central but you might want to wait for more of a pull back. on august 12 john and georgia called about spartan. this is one of the special vehicle that announced plans to merge and theplay play i get a of comments about on twitter that happened this summer. we seen a bunch of these initial success which was taken public by merging with a spak and devastating allegations that caused the executive chairman to resign couple months ago they wanted to be the next tesla. who wouldn't want to be tesla with 400 and change? you have to worry that any one of these might not be the next
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tesla. it might be the next nikola. let's talk about the company that wants to buy fister fister automotive debuted. the first luxury plug in hybrid car and started making deliveries in 2011 in 2012 the battery supplier went bankrupt. two years later, most of the business was sold to a chinese auto parts but the founder henrik firster retained the brand name and used it to launch a new business, fister, inc. he seems reminiscent of trever milton in 2013, fister was sued for allegedly misleading investors apparently never informing them when he lost access to federal funds that the company needed. the department of energy cut off access to a $529 million loan and he keep quit et for a year he did a private fundraising round and a day later the company announced they were recalling hundreds of cars due
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to battery fires, something management had allegedly known about for weeks before hand. suboptimal when it was founded, tesla sued them out of the gate for allegedly stealing their technology elon musk hired henrik fister to do body design forthe first four-seat sedan and using confidential information and a competing product. there is another similar lawsuit from ashton martin at least fister has good taste there is a lot of controversy. it one thing to fail and try again. it's another thing to fail, allegedly lie to investors and try to do it again but this time as a public company. worse part of the story, like nick l nikola, when phil lebeau asked why investors should buy shares in his company despite having in revenue and no plans to produce vehicles until 2022, he didn't really have much of an answer. spartan energy acquisition has
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smart backers but nikola had really smart backers, too. i have a production deal and bosch on the board listen, after the nikola meltdown i don't know how anyone can look at another electric vehicle company with no sales and lots of fraud allegations and think it's a smart buy you can't rely on these special purpose acre sixzix session com to do your due diligence we can try to do some. but them nikola wasn't vetted you want electric car play, look, we got one called tesla. sounds good to me. "mad money" is back after the break. incomparable design
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you don't do this. we do this, together. bounce forward, with comcast business. it is time, it is time for the lighting round buy, buy, buy, sell, sell, sell and then the lightning round is over are you ready ski daddy? time for the lightening round. let start with brandon in new jersey, brandon? >> caller: boo -yah jimmy chill
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how are you doing? >> good. >> caller: i'm looking at boeing since last month and great news their 737 may return in uppeuroe do you think boeing is a buy >> yes, i think you can buy it i know american just got money from the government. i know the airlines are waking up to be able to test people before they go on. i don't know why they don't do that before. i know masks work on planes. i know we'll start opening up. how can they dislike us? they are worse over there. anyway, i don't want to make light but you're right to own boeing lee? >> caller: jim, how are you? >> good, lee, how about you? >> caller: great jim, i wanted to ask you about general electric. >> well, i think g.e. is going to be -- it's not g.e.'s year. why do i say that? g.e. said that they are not ready and turning things around. i think they have a very good
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turn-around planned even though they a they are very linked to auto space. i think ge will be a better stock than now but a lot of people aren't that patient let's go to tom in new york, tom? >> caller: hello, jim. and boo-yah! >> extraordinary extraordinary. i am well, how about you >> caller: i'm doing well. with the housing market booming and with mortgage demand increasing, second quarter net revenue of 5 billion with net income of 3.4 billion, what is your take on rocket? >> rocket is change. when it was at $18.90 i said buy it and we're up to the high 20s and i said sell and back to 20 and i feel like hey, you know what i had my call with rocket and now i'm ready to move on there are a lot of people short the stock and didn't like the ownership structure. let's go to ed in florida, ed?
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>> caller: boo-yah, jim. my company is rdhl. >> eh. you know, look, i think you should be in royalty farm pharma i totally understand why you want to be the smartest, really smart guys i think royalty isn't gettin enough love from wall street let's go to eric in missouri, eric >> caller: jimmy chill. >> yes. >> caller: boo-yah what do you think about walgreens stock getting murdered chill man is worried because i think the prescription drug side is under attack and the front of the store is under attack from amazon so i have a tough time with that one. i just do. i try to figure out what makes it go higher and i don't know. how about matt in minnesota, matt >> caller: dr. cramer, first time caller. >> thank you. >> caller: i wanted your opinion on a biotech company that recently required the previously held company grail which
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develops liquid biopsies for early cancer ticker ilmn. >> many companies tried to do this liquid cancer test. i hope grail can do it right if grail can do it right, ill l turns out to be great. they are better companies and i like either one of them more than this one. i'm going to justin in michigan, justin >> caller: hey, jimmy chill. happy action alerts plus member here. >> thank you how can i help >> caller: the company i'm talking about has a 19% arr. 111% net retention rate. a price to sales ratio of ten and serve 60 out of the forbes 100. i'm talking about ping identity. >> we like ping. we had them on they told a very, very compelling story i like this cohort as it is and
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ping is a good one that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help.
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it ain't over until it's over ever since covid got rolling, the analysts under estimated the staying power of the pandemic and the way it is changing our behavior even when a company like owens and minor that makes personal protective equipment tells us it's going to have a blowout year, they take forever to go on board. when it comes to home builders like lennar, they are going kicking and screaming and same for dardin where it's a last-man standing situation they assume we get the virus under control or it would go away or we get a vaccine much faster than plausible. so they're constantly missing some big wins if the ones that
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are really just call them the covid beneficiaries. the best example between expectations and reality is costco the big box club reported yesterday and while the numbers were great, the analysts got freaked out. they're worried about a spike in covid spending to $281 million and the need to pay bonuses and customers that will stick with the chain once the pandemic is beaten wake up. unlike the ann lialysts and cha costco is a step before. they were the first store with the no mask, no service policy when other chains were worried about scaring away customers by making them do something inconvenient costco gambled with what most welcome a safer shopping environment and that paid off between keeping stores disease free and the wide aisles that make social distancing easy at costco, they are cleaning up and that's how you get 11% same store sales. the stock went down because analysts are skeptical again
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they got a whole list of worries. one shoppers have stocked up on toilet paper and cleaning products, they stop coming once covid goes away, will consumers go elsewhere costco has to spend to keep customers and ploememployee s sd happy. let's start with bonuses costco always paid employees better than every store and it's always been a good investment because it means they can maintain their best people change the pay less, have much higher turnover which means they need more time training new workers and those training costs add up a reason walmart bumped salaries, they keep losing people covid expenses will go away when the virus does analysts are fretting how costco will lose customers when the pandemic is over when they simultaneously freak out about cost when the pandemic is over
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that's moronic just to be clear, i don't expect them to lose many customers when this is over it's not a worry i have. it seems to be a worry they have costco is a whole sale club. there are membership fees and the customer basegrows 5%. what a business model. what happens to costco when this is over? come on. they were doing great before covid. they will be doing great during covid and will do great after. it called management the most important thing to keep in mind, costco sells a small selection of good in yagood quantities i don't know about you but my home is quickly evolving into an outdoor entertain the center because it's the only way to safely interact with people during the pandemic. and after what we heard on the conference call, it's clear a lot of other people are doing the same thing but now it's getting colder so you know what you need? you need heaters costco sees the pattern. that's why they stock spiral
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flame patio heaters for $399 sound expensive? wait a second. the same product just check the sites sells for $599 on amazon they are understand cutti-- undr cutting amazon by $200 you can get so much less from costco this should be obvious what mystifies me is we know america has royally skewed up when it comes to getting the virus under control but the analysts want to bet covid ends soon ridiculous they should be concerned about what the competition is doing to win their customers back from costco because they're not doing squat. that's why i think costco is a buy down here after today's absurd sell off. every quarter of the stock gets hammered by bogus concerns and every time what happens, it bounces right back and in the end, that's all you need to know about costco stick with cramer.
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i can't wiat to share at&t's big 5g news... (shouting through the glass) at&t has nationwide 5g? yup! and that's 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, big-bigger deal bigger than what i'm doing? it's not complicated. a 5g network needs a 5g device. now everyone including existing customers can get a free samsung galaxy note20 after trade-in.
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find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. you know i've always been for cruising and the cruise line stocks after being terrible are starting to bounce they had an upgrade today. if you are so inclined, the one you need to buy is norwegian why? because frank del rio raised a ton of money and now he can ride it out there is always a bull market somewhere and i promise to find it for you on "mad money." i'm jim cramer and i'll see you next time.
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narrator: it's been 10 years since "shark tank" ignited america's entrepreneurial spirit. and we are still blazing a trail. for those who take their fate into their own hands by working hard... sproing is the next big thing in fitness. whoo-whoo! narrator: ...by working smart... this is gonna be the number-one item on baby registries. -who thinks of these things? -that's smart. narrator: ...by thinking big... moki doorstep is here to give you the boost you need. narrator: ...and chasing their dreams. how long you been watching "shark tank"? since i was about 8 years old. -[ laughs ] -wow! within months, you're gonna see knock-offs on this. there's a real need for it on the market. we've got about $2 million of our own money into this. -wow! -wow! it's a dog. captions by vitac --

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