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tv   Mad Money  CNBC  May 6, 2020 6:00pm-7:00pm EDT

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tatum and listen to what gene munster said about lyft. i'm with him by the way, i agree with him on netflix. happy birthday, tim. lyft >> happy birthday, tim thanks for watching fast "mad my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain you, but to educate, teach call me 1-800-743-cnbc tweet me @jimcramer. when we get friday that's plummet, you have the one from the labor departmentthat comes out at 8:30, it is going to be
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so bad that we're going to be debating whether we're in a serious recession or depression. we have pockets, though, of strength like technology and health care. but those pockets can't offset a very weak backdrop, can they we saw it again today. the dow lost 218 points. the s&p 500, it tumbled .7%. but the tech-heavy nasdaq also had the darn gall to rally .51%, and was up a percent most of the day. oh, the indignity. if you make technology that helps businesses cut costs by firing people, or having them stay home, you're doing great. if you make something people literally captain live can't live without, medicine, terrific everything else is a drug here staggering layoffs and the big drop in the index i am worried about, or at least a lot of what i'm worried about which is 9 s&p 500. it gets worse. if you run a business leave it
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to the u.s. economy and not china's economy, well, now your stock is getting walloped. over and over in the earnings season we see companies report an incredible 2 1/2 months, then their business fell off the cliff at the end of march. these companies desperately need the lockdown to end. that may not be enough as long as tons of consumers are still worried about getting sick rational okay, now that the economy is gradually opening, many investors believe that there will be winners and losers, but crucially, the winners are the same companies that were winning during the lockdown. alphabet, facebook, microsoft and the like, the ones i love, the ones i says every day are fine the list of losers is getting a little longer. classic example, staples, proctor, mccormick, yeah, the spice company. love this stuff. almost reach for this. wrong function and i got to tell you something, those stocks have been winners, but today they got hit as many
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people are now betting that the economy could come back strong the so-called v. nobody wants to bet on the retailers or restaurants that benefit the most from a comeback because social distancing may be too hard for them, okay. i talked about that last night we had to take out seven tables out of my restaurants. i guess we can quadruple the price we ask people to pay all that stuff is getting hit. the highest in med tech fliers, amazon, shopify, dexcom, pay pal unstoppable. seems so the staples and retailers should be moving the opposite direction. some have tech economic sensitivity, adobe, retail, either we're headed for a recession or we're not in other words, somebody's wrong here [ buzzer ] so how do we deal with this contradiction? the way we always do on "mad money. i like to resolve these
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situations by bringing in people who are smarter and better and more informed than i am. and right now nobody knows more than the executives on the front lines of both health care and tech, okay, and, yes, retail executives like the c.e.o. of cvs health which is one of the largest retailers in america and also one of the largest health insurance providers thanks to its acquisition of aetna cvs just reported a terrific quarter. believe me, it was, and they stuck to their guns with their guidance most do. while the stock spent most of the day higher and opened really nicely, i think based on the excellent health care story as i keep telling you people like, it will succumb to the gravitational pull of the retail group up against amazon. and the death star clocked this one 80 cents at the end of the day. curious, maybe wrong, don't take it from me let's hear from the man himself. larry, welcome back to "mad
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money. >> hey, jim, great to be here. thanks for having me >> you have pretty much everything, retail, health care. we are just mystified. you reported an amazing quarter today. you kept the guidance intact, most people are cutting. front and back stores were good. i'm coming to you saying, do you think the stock was just down because, well, that's the craziness of the market? i've been looking for someone doing as well as you and it's hard to find >> jim, we have a great strategy we have excellent execution. we're putting up the proof points jim, what we're seeing throughout this pandemic, this health crisis quite frankly is a validation of our strategy of making health care local and simple while improving the health of those we serve jim, you and i have talked a lot about making health care local by meeting people where they are whether it's in the community, in the home, in the palm of your hand we are seeing use cases emerge through the pandemic that speak to the role of all three let's call it, jim, you know, the omni channel of health care.
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and, jim, i'm hoping what we're seeing, these proof points, you know, serve as a catalyst to the growth of our stock and a validation of our strategy >> in your strategy, you have health hubs. you also made a commitment to the president to have locations where you're doing testing you're doing both and where do you think we are just in terms of we're all out of testing away from you i know you got a thousand places that you do it >> yeah, jim, you know what, we have had great results with our large-scale drive-thru testing by the end of this week we will have tested about 100,000 individuals with real-time results. last week we announced we're going to make that testing even more local, bringing it over the course of the month of may to nearly a thousand cvs pharmacies we're going to utilize our drive-thrus and our parking lots we're going to use the swab and send test. we're also going to be using
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mobile capabilities to go into the historically under served communities which have been disproportionately impacted by the virus. jim, we're also working on a b-2-b solution for aetna and care mark clients as they think about their various return to work programs. >> this will be the first time i wanted to get tested last week my doctor said, you're in new york we just can't test you will this be a case where if i called ahead, i got an appointment, i can get a test just because i want to get a test whether i'm okay? >> well, jim, we have been using the cdc guidelines and it's a great example of how we brought our digital capabilities to life you'll go online at you go through a simple checklist. and if you have any of those symptoms, it validates your need for a testing strategy, or through validation by your doctor like i mentioned, we have tested about 100,000 individuals
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utilizing those capabilities >> gotcha. okay, let's talk about how retail is doing. you had a really good quarter. i'm trying to figure out how much of it is sustainable, how much of it was because of the pandemic and, therefore, pantry stock so to speak. what's your outlook given we're going into a recession, at the same time we're opening up the economy? i'm trying to make some sense of it >> yeah, jim, our retail business did have a great quarter. year over year operating profit growth was up 28%. jim, about 40% of that was the result of activities directly related to covid during the month of march we've had an awful lot of pull forward prescription refill activity as well as pantry filling, whether it was the medicine cabinet or the cleaning cabinet. you know, we're seeing that reflected in our april results, but, jim, i got to tell you, i couldn't be more proud of the work that our retail teams, our pharmacists have done in terms of you think about those
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millions of americans that suffer from chronic disease, and the maintenance medications associated with keeping them happy, and i could tell you pharmacists have done a great job of making sure that therapy for those individuals has not been interrupted >> at the same time, i'm wondering if there isn't some drop-off my cvs which i go to all the time changed their hours they shortened their hours to me if i were cvs, i'd lengthen my hours. >> yeah, jim, what we have seen and what we responded to as the shelter-in-place orders took place, we did roll back our hours to some degree as the shelter-in-place orders are now being reversed, we're returning our hours of operation to their normal trajectory >> okay. now, one of the things that really does steam me as my charitable trust is the long-term shareholder in cvs, you mentioned telemedicine which you are unbelievable, 600%
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increase teledoc goes up, but you don't be get any credit. you really are the pioneer of telemedicine >> well, you know what, jim, telemedicine is a great example of, you know, the use cases that i was alluding to earlier that really bring our strategy to life you know, health care in the palm of your hand. and, jim, it's interesting that what we have seen is telemedicine utilization, not just for individuals with the covid symptoms, but, you know, telemedicine utilization for pcp type of activity and even in some respects specialty services so, you know, we're very pleased with the growth that we're seeing there and, jim, some of the numbers that we talked about on our earnings call this morning, there are times when you muscle improvements through the increases that we're seeing are the result of the investments we've been making in our business >> now, i do want to ask you, the companies whose stocks are going up the hardest are
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companies with great balance sheets i know you still have work to do on your balance sheet and you actually took down some more money. where are you in terms of making it so that we feel that one day we're going to go back to the old days of cvs raising its dividend every year? >> well, jim, first of all, we -- by the end of this year we will have paid down about $6 billion of debt tied to the acquisition. we are on target to de-lever our debt ratios down to the low three times, by 2022 we're comfortable with that plan we continue to maintain our dividend, you know, at $2 a share. so we continue to work to enhance value for our shareholders >> last question and i know this is the toughest one. everyone is talking about, listen, when we get the vaccine we're going to be fine, get the vaccine. do you think -- one, do you think we can get one two, do you think the end of the year is too aggressive and three, can we all get it or
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will it be boutique instead of scale? >> well, jim, once again, you're talking about the roll of our business model because let's carry a bit of optimism with us because i do believe that our researchers, our scientists will develop that vaccine you know, some say early next year, some say 12 to 18 months but let's be optimistic that it is coming. and, jim, you think about those millions of americans that need access to that vaccine >> right >> that's the role that cvs will play >> all right well, look, larry, i want you to stay safe. the quarter was great. the market is a little nutty you're in the s&p, but you're not in the nasdaq and i think that's what hurt the stock larry, c.e.o. of cvs thank you so much, sir >> thank you, jim. >> my exclusive, get this. beyond meat up huge. mattel, and then waste management just ahead. so stay with cramer. >> announcer: don't miss a second of "mad money."
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reach a mass audience, you went with one of the three affiliates you could place ads in magazines or newspapers. we had the enquirer. both had real reach. we had a few radio stations. then cable came along, offered much more targeted programming, took market share from everyone else over the last 25 years we've seen the rise of the internet and gradually all sorts of digital operators have pried ad dollars from media to reach a target audience, truly targeted, to know your ads are being read or not. sure enough, the internet changed everything newspapers fell apart. i got a charity appeal to give money to the nonprofits basically to keep it going well. most of the newspapers have been destroyed. magazines fighting for their lives. some are charities television is hurting, especially cable heck, even major online media
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operations are struggling here because while the web has been a gold mine for those who can reach both segmented and online consumers, it's controlled by the big three, alphabet, amazon and facebook with this latest quarter, they've pretty much become the only game in town. every town their digital take over happened practically overnight. only a couple years ago there was widespread sense channels were winners pinterest, snap, twitter, yahoo! yelp, they all had tons of eyeballs most disappeared those thriving like "the new york times" at least for advertising, you had specialty sites for reviews. it all seems to be coming together, especially sites that cater to travelers finally the last bastian, you had a ton of advertising centered around live sports programming on tv. almost all the big games, started with the kickoff and the jump ball. then the coronavirus came along and shutdown all sports. without games there's nothing to advertise against.
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big digital platforms, yahoo! was subsumed by verizon media. yelp, we don't need yelp restaurants are closed expedia said it's down 5% from last year. how about "the new york times" today the great lady predicted a stunning 50 to 55% decline in ad revenue. they are doing unbelievably well with digital subscriptions it was a grim advertising forecast for the rest of the industry that caught my eye. ad estimates are too high. snapchat, i don't know most surprising, the stunning drop-off in twitter and pinterest. before covid, twitter was a great place to launch events now there are no events, and the quarter was unloved. i thought pinterest owned a lot of niche verticals, leisure
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activities last time we learned their ads are shockingly weak. you know who had truly blow-out numbers? facebook, alphabet and google. all three took a massive amount of market share. ads from consumer package goods to deluxe items, sheets, towels, furniture. the big three own small businesses, now they own all business, consumer packaging that's why their stock is strong facebook has been a dominant player for a while same for google with search. i was done by the strength of youtube. amazon came out of nowhere they have pulled away from the pack advertising is once again a three-horse race just like when i was a kid just like when it was nbc, abc and cbs. today we have the same thing, only it's facebook, amazon, and alphabet let's go to connecticut. >> caller: jim, thanks for taking my call >> of course >> caller: my call is about
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libre. are they past their market place and e-bay offering they used to have, the payment sis democrat >> right >> caller: now other retailers are using. i got in at 548. last night they crushed market expectations, they're at 740 i'm wondering if i should ride this out or sell >> i know this sounds wrong, but two-for. shopify, they're both fabulous up 121 is a sign not of something you should bail. that quarter was great it's just being revalued you've got to hold onto it wow. let's go to eric in new york eric >> caller: hey, jim, how's it going? >> i don't know, man, these are long days. how are you doing? >> caller: i watch every day with my wife her name is anggiselle. >> giselle, how are youdoing >> caller: i have a question about a northeast staple, duncan
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brands they beat estimates and earlier they announced a new partnership with uber eats in partnership with grub hub. what do you think of dunkin' going forward? >> i rem the stock for a very long time. it's a good company, it is but starbucks is in the cusp of a major, major turn. and i need you to go into starbucks, not dunkin' i do like them both like i said, but starbucks -- they've both been knocked out but i think kevin johnson has something special coming and you want to be there for that. including beyond meat, by the way, which they have a great relationship we'll hear from later. it's in deja vu taal take over alphabet, amazon and facebook are the only games in town beyond meat, mattel not doing that well. waste management, i don't know stay with cramer ♪
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surprise profit only not to us driven by sales, up 141% year over year. their sales accelerated once the pandemic took hold thanks to the run on groceries that's more than offsetting anything on the food service side that analysts are worried about. no wonder the stock surged 26% today. does it have room to run let's dig deeper with the founder and c.e.o. and get a better read on where the company is headed. mr. brown, welcome back to "mad money. >> jim, it's great to be here. thank you so much for having me. it's always a pleasure >> all right, listen, i've known for a while and i know what makes you tick i know what the analysts don't know you run a company that's an ethos, it's a belief there is a doctor, i bet you know, foremost health nutrition doctor of our time and he said last year that we do not take action and switch to a plant-based diet, what is going to happen is we're going to have
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a catastrophic pandemic. is that not one of the main reasons why beyond meat lives and is doing so well >> i think that's a terrific context to start our discussion. if you look at what's happening, you don't necessarily need to be someone versed in biological systems or global eco systems to see a series of incidents occurring that come together as a pattern. whether you see the coronavirus impact here on the u.s. meat supply or you see what's almost been forgotten, which is the swine flu in asia, or even the evian flu that you've seen recurrences of in south carolina and ireland. we've reached the point where there are so many livestock on the earth's surface that we're running into challenges with keeping that system working and that supply chain is now as many in the industry themselves have said is under enormous pressure. i think we are reaching a tipping point. >> if we did go to the tipping point, would there be a david
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faber kind of chided me in this. you're not a big company yet would you be able to scale effectively to be able to handle what you know is going to be a world that has 10 billion people one day? >> jim, as you know, i'm hopelessly focused on market share. we're a very long-term oriented company. we're going to look at this summer as a real opportunity for us to be relevant to the consumer as they are looking for solutions as the meat supply has been disrupted so we're going to take aggressive pricing over the summer to be able to make our product be much closer to the animal protein equivalent. when you look at beef which is now $4.10 on the wholesale markets, you transfer that to retail, we have a fighting chance as we offer value packs -- by the way, any retailer that wants to offer a value pack for the summer season, we view this as a massive opportunity for us to drive trial and win consumers over into our segment. >> i am tired of hearing people say, but you know what, the
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chemicals, whatever. i'm looking at the new sausage it is far less fat, far less saturated fat, far less sodium the complaints are done. >> yes, that's frustrating for us, too. we're very proud of our process, our process is a clean process it begins taking protein directly from the plant and we restructure that into the form of muscle. you have to compare that with the other process, growing crops and feeding crops to animals then harvesting the animals. there are many steps in that process as well. it's important to look at the process and say which do i prefer you're welcome to come to our facilities, knock on the door, we'll explain our process to you. we have transparency there we think people have the right to see how their food is being made we're proud of our process on the ingredients, we made the commitment to use no genetic modification and no artificial ingredients. we need to make products mom and dad are comfortable feeding to their families i think we follow through on
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that commitment. >> what really matters to me right now, there isn't a notion that if you do not have the, you know, the cafeterias in offices, that means it's going to be bad. but you showed retail demand in april was huge but i am concerned -- i interviewed chris at mcdonald's about you, okay. and i know it's talking about the trial. he said, i knows i like it he knows i like the product, i wear the hat, he knows i'm a believer >> thank you, jim, thank you >> i said how's it going jim, our system operates best at scale. we don't do hobbies really well. he used the word hobbies take the hat off, i go to kevin johnson at starbucks what does he say we have a great relationship with eithethan why? because you are doing multi-decade environmental sustainability hobby or ethos >> that's terrific it's definitely an ethos it's one that this generation so
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clearly understands. as we talked about before, jim, we go to college campuses. the reaction is amazing. particularly this generation coming up understands that we can't continue to have the ratio of people to livestock in a finite eco system. so we have to start making a different model for producing meat and we have that model and people are excited about it. it's definitely not a hobby and we are working very well with very large qsrs that are global including mcdonald's, launched the test we did with them was very successful. and what you'll hear from us throughout the course of this year with new partnerships, new relationships globally with some of the world's largest quick-serve restaurants. >> i have to believe that your joint venture with starbucks in china is going to drive china sales for starbucks meaningfully meaningfully move the needle that's what kevin thinks do you agree with me >> i'm so excited about that launch i want to be over there now. i wish i could be there. the moment all these lift it's
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such a great opportunity for us. i love what starbucks has done, commitment to sustainability and health and living up to that commitment it's something that i'm very eager -- all of our partners, look at the sausage of dunkin', for example. all the incredible benefits there, whether carl's or hardee's, et cetera. you're getting less saturated fat, less sodium these are benefits the next step for us is to continue to drive down direct materials and direct labor which we did very well over this last quarter which produced that record gross margin. we have the lowest cog we've had in the quarter we're going to keep marching the steady progression and continuing to achieve the cost reductions so some day we can under price animal production. >> a billion dollars in sales next time wee see each other >> let's do it >> founder and president and c.e.o. of beyond meat. it's not a hobby, it's an ethos. "mad money" is back after the
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break. ♪
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♪ ♪ look, i always tell you that it's better to be lucky than to be good. and this pandemic shows us why every darn day because bad luck trumps management's attempts to grow or turn around. look at mattel they've been struggling for years in the wake of -- getting real traction year to year looked like 2020 would be a great year for the maker of hot wheels then covid-19 hit. first there were supply disruptions, then toy stores were forced to close as we saw mattel reported last night, they're having a rough time they posted a 56 cent loss when
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wall street was only looking for 41 cent loss sales down 12% on current currency basis april doesn't sound too well either arch rival has borough had a decent quarter they have a lot more exposure to classic games you know and love. monopoly, life, clue and the like the stock has been hammered down again today, another 1.34% ouch there's only so much management can do when the environment is against you. with the economy gradually opening, is it time to take an op opportunistic approach? get a sense of how companies are holding up welcome back to "mad money." >> thank you, jim. good to be here. >> i'm a little worried because there are some classics here barbie made a comeback when you were here, down 10 of the american girl down 16% these are classics what's happening i never thought these would go down hard even if we're on the
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cusp of a recession. >> we entered the year strongly. and as of january and february we were up pacing slightly ahead of market. the decline in the third -- in march was driven primarily of temporary closure of stores representing 30% of our sales with retailers prioritizing essential items and there was temporary category shift in consumer demand. but we're starting to see a change we're starting to see a shift in demand total p.o.s., this is sale of demand, normalized for easter is showing improvement in april compared to march. especially in the u.s., when the last two weeks we saw double-digit year on year increase and triple digit increase online. online retail continues to grow strongly and perform especially in the u.s., although not completely offsetting the decline in bricks and mortar according to date, our online p.o.s. demand in the u.s. has
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increased over 90% if the retail environment returns to normal, we expect it will be a good holiday season. but it's too early to tell at this time. >> that's very bullish when i read most of the analysts and went through your conference call, a lot of it was just talking about how your supply chain which seemed like it had been compromised is now better this is a very positive story that you're telling me about a comeback that could accelerate if the economy really does, let's say, bounce back on the reopening. >> well, you know, in spite of the declining quarter, you need to remember we still have very strong brands that perform very well and still resonate with consumers. hot wheels was up 8% our games portfolio a bit small, outpaced the industry and we gained market share with uno being the number one purchased item in the category globally. even barbie, which declined, grew market share.
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and so we see continued momentum, we're seeing a positive direction in april p.o.s. so far. with barbie remaining the number one fashion doll brand in the world. >> all right now, over your left shoulder is a hot wheels, which is doing well but thomas the tank engine, iconic brand, it seems to have stalled. >> thomas is a great brand just recently prince harry partnered with us to do a promotion. it is a great brand that is evergreen, and we're very confident about the return to the heydays of thomas. it is impacted now, but we launched recently a new show on netflix and we expect things return >> your entertainment background, i was hoping of course, it would be a lot of things which is terrific but covid, that part of your portfolio, is it stunted because no one's making
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anything >> well, we're very excited about our film strategy and about our approach, mid to long-term plan to capture the full value of our i.p. we continue to develop our projects in motion in time where people go home we made a promise in the development side, working on the creative aspects of our projects and we expect things to continue now, there's probably going to be some impact on timing because of the delay the industry experiences in relation to production and some release schedule but we are very much on track with a lot of excitement and moment in our film and content strategy >> in the meantime, you think you preserved enough in the balance sheet to have enough liquidity if things don't turn quickly or they go back to where they were in second half of march? >> well, we refinanced our near term debt and now have no
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maturities until march of 2023 we entered the year with more than $600 million in cash and access to $1.6 billion in credit facilities so we believe we have sufficient liquidity to effectively manage the covid disruption and continue to execute our strategy >> okay. you've got a new line that i think is going to sell, which is called thank you heroes, line of doctors, nurses, emt, delivery action figures how is that going and what will you do with the proceeds >> well, we're very excited to be able to support communities in times of need we recognize the role we play as a global citizen and have resources to support the communities where we live. all proceeds from this campaign will go to donation, first responders first it's a charity organization that we're supporting and we really dedicated to community support to producing -- also in addition
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to donation, protective equipment for medical professionals. we just announced 500,000 face shields, and providing grants and donations where we can >> all right well, look,i do want you to turn around. i hope those april numbers stay strong because it could be a great opportunity. chairman & c.e.o. of mattel, thank you so much, sir >> thank you >> turn around are hard, people. the pandemic is making it tough for everyone the april nubds were much better let's take a look. "mad money" is back after the break. yes. the first word to any adventure. but when allergies and congestion strike, take allegra-d... a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d.
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>> it is time. time for the lightning round rapid fire calls, one after another. >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and then the lightning round is over. are you ready, ski daddy let's start with davis in texas. davis! >> caller: you're talking to him, jim >> oh, boy >> caller: you're talking to him. you're talking to a 93-year-old ex-mu e e ex-merrill lynch and vice president. >> let's go to work. >> caller: you do the best job on television. do it for everybody, and we'll understand the market better and better >> that's the goal thank you, sir >> caller: you've done a hell of a job. >> thank you >> caller: now, listen,jim, what do you think about crowd strike >> crowdstrike is the single best cyber security company to
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play for the revolution of being online in the cloud, working at home, i like it very much. >> buy, buy, buy >> i'm not trying to say anything bad about opta. thank you, sir robert in texas. robert >> caller: hey, jim, my stock is cwh. >> cwh, they're making a comeback i've got to tell you, i know it's been rocky. i know the stock has been down a lot. but i do think that camping is coming back, and now that they're opening the economy -- look, do i just say pound the table here that's a tough thing to do but i did see the winnebego report a good number i'm okay let's go to dennis in iowa dennis >> caller: booyah, to you, jim >> booyah. >> caller: question, apache. >> let's just scram. they really did a bad -- i know
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mr. krishman is really nice. it didn't sit well with me let's go to paul in texas. paul >> caller: thank you, jim, for taking my call i'm calling for the first time i just want to see what's your opinion about lam research >> lam is in the crosshairs of the president of the united states of america. he says something bad about china the stock goes down. he says something good, it goes up it's too ping-pong i can't recommend it here as long as trade tensions are as high as they are right now brian in connecticut brian. >> caller: booyah, what's going on, cramer >> not much, you know. living the non-dream how about you? >> caller: doing well. i appreciate you having me on right now. i'm a big fan of the show. >> of course all right. >> caller: real quick, hello to my mom and dad and friend in
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vegas and fort lauderdale. >> love them all >> caller: growing up in connecticut this is a company i knew about from a young age. my grandfather was in the navy and served in world war ii this is a company i believe in, my dad told me about it a lot. general dynamics >> you're going to have to take a long view on gd because it's not the favorite one right now it's not the loved one [ buzzer ] the whole group is a little under pressure, but i think good long-term hold let's go to christopher in minnesota. christopher. >> caller: how are you doing, jim? >> hi, chris, how are you? >> caller: i'm good, i'm good. i'm looking at unfi. >> oh, united natural? that is the most inconsistent -- that is like good, bad, good, bad, that's too hard for me, okay it's too hard for me i'm going to have to take a pass on it. if you want natural and you want organic, there's really nothing. and that, ladies and gentlemen, is the conclusion of
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the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪
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featuring the emmy award-winning voice remote. all the apps you love, including netflix, prime video, youtube and hulu. and the most 4k content. the best entertainment experience all in one place. ♪ ♪ the economy headed for what looks like a full-blown recession. a lot of well round companies got taken down
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waste disposal business, stock has been hammered since covid came along the business is highly cyclical. when there is less economic activity we produce less trash that's especially true for construction waste management reported this morning the company delivered a solid top and bottom line beat pricing held up and commercial collection volume stayed strong until the second half of march once lockdowns went into effect it took a hit. management pulled their full-year forecast that's why the stock was down 2% today. has waste management been punished enough, is it a way to get in or stay cautious? the president and c.e.o. of waste management with where the business is headed welcome back to "mad money." >> hi, jim how are you? >> good, jim thank you. i know you spend a lot of time on your call your people are out there and they're on the front line. you have to do a great deal
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protecting them and you're doing it >> well, we are. look, probably half of our employees went home and, you know, 20,000, they're working from home, we did that in four days, five days time the rest are on the front lines. they're doing a great job out there. we made sure we put real strict social distancing protocols in and everything we're used to now. it's been amazing the job that they've done >> let me ask you, a lot of people say, hey, so many people are staying at home. they're throwing out a lot of trash. how could waste management have a lot of blow-out numbers? you were heavily levered construction which is basically shutdown in this country >> if you look at our businessness we cover all sectors of the economy that includes retail and restaurants and sporting venues and so all of that falls within our commercial and our roll-off lines of business. our landfills as well. while residential is fine in terms of volume -- by the way,
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there's a lot more trash in each container now. those are up probably 25%. we have to go back to those guys and get a little more money because we didn't contemplate 25% more trash in their trash can. but the commercial business has obviously taken a big hit. it's really part of why we didn't give guidance is because the visibility is pretty poor right now with respect to how that returns and when it returns. >> to me, when i read your call, i was thinking it is a difficult balance. president wants to get everybody to work. we also have a lot of companies that are involved with sickness and recognize that sickness is not going down in a lot of places but then i see in your conference call, you talk about how -- you say it's a ghost town this is one of the great parts of the country where you're located. my feeling is maybe with the opening there can be a pickup in commercial you've seen it just open what is your estimate or hope for this kind of reopening with a lot of social distancing and lot of new rules
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>> i'd break it down, jim, in small business and big business. big business is actually coming back i talked this morning on the call about how our roll-out business had been down at the low point, down about 20%. now it's only down 11% that sounds like a big number, but think about the call back. that's half of the downturn. that's mostly big business small business is in our commercial line, and the low point, the low water mark was about maybe down 16% it's come back a point or point and a half i do think if there is some good news here in the commercial line of business it's that we only saw about 1% cancellations and we have aggressively tried to pursue those customers to make sure that they are, in fact, going to try and continue. and so 1% is very low in terms of cancellations what it tells me is small business is going to make a shot at coming back >> right but there's other businesses
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that we didn't even think of as businesses schools. sports i mean, these are givens in america. school, of course, opens no sports, well, that's got to be -- no how do you -- that's got to be a lot of business that just gets lost >> look, i think 15% of our commercial line of business is schools, and obviously that got shut off literally overnight so there's no waste coming out of the schools i'm hearing things like 40% of high school seniors are going to take a gap year, or they're talking here in houston maybe about having some -- when they go back to high schools and middle schools go back next school year, that maybe they go every other day, maybe juniors and seniors go on monday and sophomores and freshmen go on tuesday. that in theory would cut our waste in half. the good news, though, is i do think these businesses plan oncoming back, and that's why you're seeing such a low true
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cancellation number. a lot of service reductions, about 10% of our total customers reduced service. but very few cancellations, which tells me they all want to make a run at coming back. >> how many will you have to give, say, a free month to >> so, we put that out there because -- look, right as this thing started i reached out to a handful of c.e.o.s we have to support small business i think they are at greatest danger here. if we don't support them beyond what the government's done -- appreciate what the feds have done, but we as big business have to support our smaller brethren there universally those c.e.o.s came back and said, absolutely agree with you that offer that we're giving, which is really a free month of service for affected small businesses, that's not big business or mid-size business. those are small businesses you know, the monogram shops and some of the restaurants, you
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know, that we would give a free month their first month. look, it's not going to be desperately expensive. i mean, it's going to cost us some money, but i think we establish some real loyalty coming out of it and that to me is kind of the long-term benefit to shareholders. >> i think that's an unbelievable move. i wish -- that is not being extended, jim, by other companies. and really appreciate what you're doing that is a highly unusual thing that you're doing. >> thanks. >> all right that's jim, the president and c.e.o. of waste management, running his business the way you have to run it, for the long term stick with cramer. ... to give you the support you need... to stay motivated keep active and sleep well. add a little more health to your day... with nature's bounty.
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♪ ♪ not that long ago after dispointing quarter, jeff lawson from twilio came on the show and said stop worrying he hit it out of the park. the stock is soaring the headline, it's a missed quarter. are you kidding? you listen to dan, he put up great numbers. april strong stock screaming peloton, i know a lot of you feel it's ridiculous it's just a bike well, if every gym of any size is closed, well, then you have to get on your peloton i tell my wife take the clothes off, start biking. i like to say there's always a bull market somewhere, i promise to find it for you right here on "mad money." i'm jim cramer i'll seal you tomorrow "markets in turmoil" with scott wapner is next [ laughter ]
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good evening i'm scott wapner on day 129 of the coronavirus crisis another amazon worker dies and a new battle breaks out between america's health community and the trump administration >> as bad as this has been, it's just the beginning >> one former top health expert's dire prediction also tonight -- >> we think we know what we know, but nobody knows >> new reports children are now in danger. plus, new controversy erupts between hospitals and the


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