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tv   Mad Money  CNBC  May 11, 2020 6:00pm-7:00pm EDT

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>> i'm telling you, this stranger things it's going to catch on everyone else is catching on, bristol-myers. that sucker's been going higher. >> thanks, everybody for watching fast, i'll see you back here tomorro 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 you. so call me at 1-800-743-cnbc tweet me @jimcramer.
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sometimes it's as simple as looking under the hood and find out what's working we created the cramer index. we wanted to capture the zeitgeist thf market while the averages were all over the map today, nasdaq gaining .78%, what happened? the covid index shined not unusual. it was up 1.7% dow gained 6% since we created in april, leaving the dow and the s&p in the dust. the reason because when it comes to the pandemic, the components of the cramer covid-19 index are part of the solution, they're not getting hurt, they're helping. and that's a big difference versus much of the s&p 500 we have a lot of stocks that are coronavirus road kill. let's take a look just to be able to show you what i'm talking about when i say the zeitgeist. why don't we take the top ten performers once we started i want to show you how the
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$11 trillion index captures the market peloton interactive, people think that's -- interactive is cool like this 90% of the float sold short. but this maker of connected exercise machines is a perfect fit for the stay-at-home economy. people do want to work out nearly all the gyms are closed and even if your gym is open, there is a pervasive sense that going there is just asking to get sick so you have to recreate the experience at home peloton lets do you that the clothes, they're off the peloton at our house my wife kind of hung stuff on there because flywheel has been closed since march 20th. my once new york state lisa, in late june, there's a business stock is up 25%, up 50% for the
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year you may hate it. it's working number two, of course, a vaccine, moderna i count this had biotech in the conference two years ago they're powered by amazon web services fast forward to today, the whole world is relying on moderna to give us a covid vaccine before the end of the year. i'm skeptical. the record for fastest vaccine development is four years, and moderna has never tarik enone of these to market before but if they can do it, yeah, the stock is going to explode higher, it rallied 32% since we created the covid index and up 42% year to date a lot of the vaccine stocks were going nuts after the close because some organizations were giving out money to the winners or winners i love that. third best performer, you've seen these guys, lovongo health. people well chronic illnesses manage their conditions. they started with diabetes, now
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clutz hypertension and obesity these are three of the risk factors that can make covid-19 fatal. i like to think of lovongo as a health coach it's up 30% for the year the chairman has come on number four was ever bridge. they were just on the show you see a theme here we focus on this end lieutenantsly. it's a cloud-based software that helps manage critical management think pandemic response. you probably never heard of it unless you watched the show last week nine of the top ten investment banks, nine of the top ten largest health providers, airports no wonder the stock is up roughly 30% since we created the index, nearly doubling since the beginning of the year. fifth, people say jim, why do you harp on this so much millions of americans setting up their own home offices, you better believe all sorts of
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businesses are in need of expense management they need expense management soft wafer which is their bread and butter who cares? coop is working. stock is up 28% since we rolled out the covid index. up 40% because it's a textbook play in the stay-at-home economy we keep talking about. number six, anyone who watched the show 30 seconds knows dexcom is one of our favorites. there's no need to repeatedly test your finger to test your blood sugar levels it's the gold standard just like livongo. dexcom rallied 26% since we created the it index, up 90% from the beginning of the year a's cloud based company helps businesses smoothly securely run their websites. they work behind the scenes with e-commerce sites and e surance to protect platforms against cyber attacks.
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it's exactly the kind much business that works when so many more things need to be handled online or at home. the stock is up 20% since we created the index, 65% gain for the year another one. these were all last week we covered. we're on our game. 8th is square. this one is complicated. as many brick and mortar clients have been obliterated. square has this digital peer-to-peer payment app it came roaring back as they realized the business was in terrific shape it's up 20%. 9th, pulse oxemetry systems. companies need more icu capacity, hence the stock is up 20% since we created the index, 58% for the year
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i carry masimo pulsimeter. we had them on after still more revelations about covid outbreaks at meatpacking plants. he's a man on a mission. he wants to shake up the food chain. right now he's cutting prices so beyond meat can take share from the meat guys. plus he's got two years, starbucks rolling out in china and one in the offing in mcdonald's it's in canada now i'm betting he pulls off something gigantic down the line beyond meat is up 28% since we put covid index together, 78% for the year i can rip off down the next ten, next ten, the next ten, all you'll hear about are stories about companies that are just like these that perform better when you're stuck at home and worry about your health.
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there aren't simply enough technology companies that thrive when we're in lockdown that's why the averages are skewed they've been driving the big gains. they mask the rot underneath in the covid black zone aerospace, cruise lines, crushed. bottom line, there's nothing irrational about these rallies stay-at-home names the right stocks at this moment. $11.35 trillion worth about 27 trillion they aren't the tail wagging the dog. they are a competing dog, and that dog is winning. jerry in texas jerry. >> caller: hey, jim, how are you today? >> i'm good. how are you? >> caller: good, doing well, thank you. hey, i have a general two-part question for you the markets hit their recent lows on march 23rd since that time they've rebounded roughly 30-something percent. we have record unemployment. oil prices that are historic
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lows companies provide guidance and profits are going down many businesses are going bankrupt people unable to pay bills plus we're fighting the covid virus. my two questions are, do you feel the market is overbought at this time? and two, do you think we may revisit the march lows inside the next six months? >> i don't think we'll revisit them there are too many trillions coming out of the government that helps we have negative interest rates that are fabulous, close to negative really fabulous for stocks and while there are a lot of what you said about certain companies giving guidance not so good, there's lots of others that are doing quite well and that's been my theme for "mad money. let's go to brian in connecticut. brian. >> caller: booyah, jim >> booyah. >> caller: jim, i'm 32 years old. i've owned this company for about five years and it's been in decline ever since. and today it's the leading
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decliner of the s&p 500. what are your thoughts long-term of under armour? >> nike, just go with nike you don't want to bottom fish, you want to go with the best and nike is the best plain and simple how about cody in illinois cody >> caller: booyah, jimmy chill >> what's going on >> caller: chat at my girlfriend sam. i wonder if you think they're poised for a lot of growth because of the need -- >> the thermal imaging i think thermal i maging is real and i think it's a good stock. the move has been pretty exaggerated, though. all right. it's as simple as looking under the hood and finding what's working. these rallies aren't irrational. the stay-at-home names are the right stocks for this difficult moment there's $11.5 trillion of them jobless claims the past five weeks have totaled over $26
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million. as covid-19 continues to i have pact the economy, how are freelance workers managing during the pandemic? i'm asking the c.e.o. of a new company to the show. then as states begin to reopen their economies, which companies could come out the winners i'm going to give you my take. and as more companies seek out automation, is it time to consider liveperson? i've going to talk to the c.e.o. so stick 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 or give us a call at 1-800-743-cnbc miss something head to
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♪ ♪ the highest unemployment rate since the great depression, it was 14.7% in april, it's probably even higher now we have to adjust to the horrible new normal. look, even if we can quickly reopen the economy, many of these jobs aren't coming back, but there are companies trying to help. companies like upworth where businesses can hire freelancers. even better, their platform is designed for remote work with features that make it easy to collaborate with off-site freelancers. it doubled since the march lows. another leg higher after thursday creating another 6.7% run just today the actual results were solid, the company pulled its full year
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forecast second quarter guidance was just okay, however, none of that mattered compared to what upwork told us. by late april they were seeing record levels of client activity is this a stock whose time has come let's dig deeper with hayden brown, the president and c.e.o. of upwork to get a clearer sense of the quarter and the company's prospects. ms. brown, welcome to "mad money. >> thank you for having me on. i'm so glad to be here >> i'm thrilled that you're here and i've got to tell you, it's your first time on the show. so i think you should explain how upwork works >> upwork is an online platform where we connect clients and 180 companies around the world with independent freelance talent in 180 countries around the world it's all about remote work we work with fortune 100 they are using us to find skilled talented professionals they need for critical tasks >> i think it's incredible right at the beginning of your call you say a line we totally believe in in "mad money."
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remote work has gone mainstream and the genie is not going back in the bottle. it's not changing. it's going to accelerate, huh? >> absolutely, jim three quarters of companies have said they're going to have remote work be part of their ongoing operations going forward. that's not just related to the pandemic pandemic has opened people's eyes to what's possible. but they realize there are real benefits to being able to work remotely and they want to hold onto those after the pandemic passes >> you are the first person i read right up front in your message from hayden brown c.e.o., the environmental impact is so fantastic, but no one else is talking about it. >> yeah, all of these issues with people commuting, the terrible commutes, flying around the globe for meetings that really can happen over zoom like we're doing right now, i think companies are waking up to the fact that there is real productivity gained as well as the environmental sustainability impact that everyone cares about and now we can get both of those things by having so much more of the work force working remotely.
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>> gees, i don't know, these guys, linkedin must be a problem for them i saw microsoft is a client of yours. >> absolutely. we're working with everybody from small businesses through to large companies like microsoft, nasdaq, glass door, you name it. they come to us because really they need to find talent in ways that they can't find in their local hiring geographies our company has been doing remote work 20 years and we're helping clients connect with taal ernt outside of their back yards. companies like microsoft come to us looking for talent they can't find locally that we can supply through our platform because we have millions of workers all over the world ready to work and they are skilled at doing remote work and they're ready to get started. >> why don't you give us some of the challenges and opportunities that global businesses are facing right now not everybody is working from home and i think companies need to be schooled that this is something they can do, but i think they're frightened
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>> yeah, i think the pandemic has been incredible in terms of companies having been forced to try remote work. they've heard about it before. maybe a few workers in their work force have been working remotely, but certainly this is not the normal practice at so many corporations. we're seeing from our customers whether they're snbs working remotely they're coming to us asking, how do you do this you do webinars. how do you get the work force mobilized? a lot of their work force is not able to work remotely. for example, if a large company has a call center operation and the call center reps come into the office to do that work, suddenly they've found themselves in a pickle because that can't happen during the coronavirus. they're finding, upwork, how can you help me with a strategy that allows me to have call center reps, web developers, mobile developers, all these critical skills able to work remotely and continuity as well as crisis response task.
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>> you're not just finding people, you're advising. so it's deeper than that >> absolutely. we really see our customers as partners so they come to us for help with their entire work force strategy because the choice to have a flexible talent bench, as part of your contingent work force, all of that is part of your strategic thinking about your talent operations. and so usually our partnerships are very deep with clients as we're helping them figure out holistically what kind of talent do they need, where can they source the talent, what role daz upwork play, and they use our platform because we can help them pay and manage those workers through our global platform especially now, but they also wanted those needs to consolidate their work force we're helping in a deep way. >> it was very interesting the trajectory of your business. you saw the slow down like many people, and so it looked like it might be the left side of the v or maybe even a u, but then you had the biggest acceleration i've seen. we've been covering a lot of the
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companies in this area in the last week you say in the conference call, "we broke our own records by a significant margin on leading indicators such as client registration and new job posts. they must have figured out you're the only game in town >> this is one in a generation change they realize remote work is something they can embrace. as part of that they're coming to our platform in record be numbers to look for a work force that's skilled and ready to work remotely everyone at upwork is equipped to do this the job posts, it's hitting record levels. everyone is realizing it's something that's relevant and frankly relevant for the long term >> i have to tell you, i think you're incredibly impressive and your company is impressive i wish i had known more about you. i would have put it in my covid index. holy cow, have you ever made up for this time. i know you don't want to profit from something bad, but you've got a vision and your vision is
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now adopted by the rest of the country. thank you so much to hayden brown president and c.e.o. of upwork >> nice to meet you, thanks. >> this is the real thing. i've been saying people working at home is the future and you need upwork to do it "mad money" is back after the break.
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♪ ♪ i love amazon. it's cheap, it's easy, it's convenient i can honestly say that amazon has changed my life. but you know what? it's possible to have too much of a good thing and i think that's where we're headed because most retailers simply can't compete and shopping for things in person has become downright dangerous. sure, walmart, target and costco, they can hold their own. but everyone else, they could be goner. believe me, we don't want to live in a world with only three stores and amazon.
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competition keeps business honest without it the system doesn't work that's why we need another rescue package from the federal government not just the paycheck protection program, but something big to help smaller stores stay alive otherwise when we get through this pandemic, amazon will be the only game in town. that's what i was trying to get at this morning when i pressed treasury secretary mnuchin not just a world where it's scary going outside. you can catch the virus by limiting your contacts, but that costs real money money is not a problem for amazon but immense problem for the competition. they're spending fortunes to improve the health and safety of their workers. it's more than anyone else can come up with they made updates to the enhanced cleaning gear,
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disinferk disinfection they started comprehensive health benefits starting on day one. they doubled the regular hourly base pay this is incredible other than walmart, home depot, target, i don't know i can't think of any retailer that can afford that even in theory even with all of the paycheck protection money in the world, 75% of those loans go to employees which doesn't leave much to reto and safety procedures unless you want to live in a world where amazon is literally and figuratively the only game in time. same with restaurants. they're in even worse shape than retailers. physical distancing rules mean they have to remove tables you can operate 40% capacity max. in tennessee pledge, they can't serve liquor customers get their temperatures taken. most bars in major cities go belly up
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the paycheck potential doesn't cover the costs. when you take out the tables, the only way to survive is by focusing on take-out and delivery i know all this because we have an italian restaurant and mexican bar. we can't make money without selling liquor and it's not clear whether we can sell via delivery we can't make money without crowds most importantly, we can't turn profit and take out in delivery. most restaurants sell booze. sure, they make it from food, but drinks is the real profit generator. i know this is a tough business. everybody gets into it knowing you can fail but right now there are thousands of restaurants just like ours, thousands, maybe tens of thousands, it's going to be very hard for them to hold on until we get a vaccine we need a break either in the form of cash or rent relief and i don't know if congress will give us one. and you know what? it's even worse for the ultra-fancy restaurants that make manhattan such a fabulous tourist destination.
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or they did when tourism was still a thing. my favorite restaurant, my favorite is a place called the bernadette a fantastic french place that packs them in and orphans amazing food i take my wife there for big events it's pricey. it helps them stay profitable. i don't think it's doable. it's the best restaurant i've been to in america i mention bernadette because there are always one or two fantastic restaurants in every town incredibly special and incredibly expense i i'm afraid they'll fail. all right, the chains that can make money on delivery and take-out that means chipotle and dominos. once we reopen, i can see olive garden which is darden and mcdonald's and burger king, they'll do fine. do you want to live in a world where those are your only dining choices other than cooking at home if not, we need another rescue package from washington.
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craig in new york. craig. >> caller: booyah, jim >> booyah. >> caller: my stock is xls xlsa.excelsius they started working on regulatory applications here and europe >> i'm doing a lot of work i didn't mean to interrupt i'm doing a lot of work with bristol myers. i thought their exelius project is a winner. you should hold onto it. great call by craig in new york. how about jack in new jersey jack >> caller: hey, what's going on, jim? >> just hanging in there what's going on with you >> caller: good, good. seems like chinese stocks are on the move and huya is the biggest online gaming platform in china. because of the virus situation,
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it's the fastest growing in the world now. they report earnings next week and are supposed to have earnings and growth north of 60%. i want to know what you think of it as the future of spectator sports >> here's what i want to say, jack you have done a lot of homework. i am only a fan of alibaba i'm not going to discourage your speculation. you told a good story, you did a lot of homework. you have every right to do it. i bless it let's go to fred in kentucky fred >> caller: thank you, jim. cortiva spun out from dow dupont, their recent earnings, i wonder if this might bring focus on the stock also because trump needs the support from the farm community. i'm wondering about the prospects for china trade and how this could affect -- >> i felt the same way then i read this bank of america downgrade today. i have to tell you something, fred, it's devastating
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don't even go near it. that made me think, wow, i guess i have to rethink and, wow, i'd like corteva to come on and take the other side of the trade. they're great guys all right. we need another rescue package from the fed government. we do. we have to save some of these smaller stores i'm not talking self-interest. i'm talking hundreds of thousands of -- millions of jobs, hundreds of thousands of stores and restaurants much more "mad money." as more companies shift to work remotely, i'm talking with the c.e.o. sitting down with the c.e.o. of american power the industry is slow in this country, but not work from home. rapid fire also tonight's lightning round. so stay with cramer. every financial plan needs a cfp® professional --
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confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at
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♪ ♪ all right. what do you do when your company's customer service reps can't come into work because of the pandemic you automate which brings me to liveperson. the cloud-based software company the lead in technology it's a leader around a long time they help other businesses create bots to talk to customers via text bots seem like real people whom i like more than real people i've been telling you this is exactly the kind of stock that works in the kourtney kardashcoy the game changer was the fabulously bullish guidance for next quarter along with management's conference call commentary it spiked in april no wonder the stock spiked 40% last wednesday look at the money people are making in this market.
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could this thing have more upside let's take a closer look with the founder, chairman and c.e.o. of liveperson to learn more about the quarter and where the company is headed. rob, welcome back to "mad money. >> hey, jim, how are you doing >> rob, this is it i now have to tell people. i won't call anyone. i will call no stores, i will call nothing all i am is put on hold forever and ever i cannot believe these people are not using liveperson how can they afford not to use liveperson when you're working from home? >> they can't. when you look at what happened with covid-19 and the contact centers, they all shutdown there was this mad dash to get those agents home and take voice calls. what we've seen is really the death of the call center i've been talking about this for two years. and now it's come. that's why we saw all this demand come to us. we're just doing great with it >> you convinced me.
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you had this great moment in the call where you said, the barking dog, the crying baby, we don't want that in the background. >> i know. the idea that you're answering a call and someone is talking about their bill, paying their bill and there is a baby crying, it doesn't make sense. we said this from the beginning. these things need to be automated. what we saw during the quarter is really, after covid, i think only about 50% of capacity came back that's why you're seeing now my bank which is chase, they put on the website, don't call us. you're going to be on hold forever. what we need now is to go to automation we need now to change the game, do what we're talking about, making them digital, changing to messaging. it's an extraordinary time because finally the call center is really gone >> look, the ppp involved you calling banks. that was one thing i was never going to do because i knew what would happen when i called the bank
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i knew it would send my blood pressure up. i knew it would say i have so much money and this is happening. i let my wife do it because i am sick and tired of being put on hold with someone i have a lot of money with. i'm not alone. >> yeah, like i said, this is the end. we saw this finally. it all showed up in the numbers. we grew 18%, you know, in q1 we put out great guidance in q2. we basically are just doing awesome. we saw something really, really important happen, though, in march. our volume 10-x'd in march than it normally does because all that volume from the call center just shifted to messaging. i've never seen it before in my 20 years running this company as a public company i've never seen that shift in our business at that rate. and what happened was now, we're sort of in the woods with our customers building automations, getting those agents home and all that it's really a game changer
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obviously i don't -- this is very bad what's happened to the world, but what's happened to our business, the knock-on effect has been very, very positive >> i also thought it was interesting you mentioned, this was worldwide. i mean, a lot of people have call centers in india. they thought that would be protected. philippines. doesn't matter worldwide pandemic this is it, the pandemic it doesn't matter where you are. >> i remember one of the weeks in march, one of our customers, a big, big telco in italy, they shutdown their call centers in italy, bulgaria, shut those down went over to india, shut those down it was happening so becky quickly. wh it was happening so quickly. 10,000 would be in the corporate office and they're using zoom and hang outs. that's how we're connecting. we're using that labor pool to connect to the consumers, to
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basically build those automations to the consumers that's where all the volume is it's not just about zoom and i'm talking to my leadership team and my customers how do you talk to a bank, how do you communicate with them, how do you do that now in the era you can't pick up a phone. call centers are closed. >> this is your 20th anniversary, congratulations >> thank you >> why did it take so long for people to realize, companies to realize, really good companies to realize they were upsetting their customers? >> look, it's inertia. that call has been around 50 years, that contact center there is inertia in it it's hanging onto it to see it all shutdown globally, philippines shutdown india shutdown united states shutdown all around the world so and consumers, what did they choose to do, they chose to go to messaging they chose to talk to automations. that's what they chose we saw that in our volumes
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the consumer has spoken now. and now what we're doing since it's accelerating, we don't want to go back i don't see how you open a contact center and socially distance people with head sets it doesn't work. >> i know you have to push the profitability back you had to take advantage of this but what do you tell the people who are watching, 20 years, why aren't they making fortunes right now? >> we actually moved the fort. we launch ebitda positive -- >> it's a quarter. i meant you're ebitda positive but not the way our viewers watch. they're not seeing plus 30 cents, plus 50 cents you're ebitda profitable >> somewhere shortly we are going to be cash flow positive we were cash flow positive for the last 20 years. >> right >> last year we invested heavy -- i'm glad we invested heavy, by the way, because if we didn't invest heavy we would be
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here today trying to grab pieces and scrap. plus we have all that capacity capacity in our servers, our technology, our salespeople. we're out now, out there taking advantage and really capturing the market that's there today. i'm glad we did it but now we're getting leverage >> that is' what i want to see >> and i want it, too. >> all right, terrific great work always good to see you on "mad money. thank you. >> thanks, jim >> that's the chairman & c.e.o. of liveperson lpsn yes, you'll see minus signs, but he's making money in ebitda and more importantly he's spending when this is the greatest chance to do it because i know that was a concern of some of you "mad money" is back after the break. - [narrator] at southern new hampshire university,
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♪ ♪ >> it is time! it's time for the lightning round. rapid fire [ buzzer ] >> and then the lightning round is over. are you ready, ski daddy going to start with nick in new jersey nick >> caller: jimmy chill, what's up, brother? >> not much cooking, what happens up with you? >> caller: not bad tell me, should i be doubling down on cisco before the report? >> i like webex. i'm not going to play -- i can't, i can't do that you already have a position, let's wait to see how they do. i think there are a lot of things going on right now. let's go to kenneth in florida. kenneth. >> caller: booyah, dr. cramer. >> booyah. >> caller: i'm a miami doctor, love your show, watch it nightly. long-time golfing fan.
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curious about -- i'm only asking about one of them. weeks ago a caller asked you about it i bought some and doubled down after the may 4th fda approval and last week's earnings report selling earnings, revenue beat, improved gross margins, in line 2020 guidance. the stock is eprx. >> i think they're real. i mean, i agree with you, doc. i think they're a real company i know it's only a $5 stock. i'm with you i'm going to stick with you. stick with it. let's go to frank in new york frank. >> caller: hey, jim. >> frank >> caller: i'm a long-time viewer of "mad money" and i appreciate the perspective you give in the market particularly in the troubled times. >> thank you >> caller: having said that's correct i'd like your thoughts on the packaging company west rook >> west rock bit off more than it could chew. westrock didn't have the sense
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there were companies with expanding capacity at the same time, took on a lot of debt. that's why they had to cut the dividend it was brutal. it was a brutal situation. a lot of companies are cutting dividends. you don't want to be around any company cutting dividends. i am very worried about the banks having to cut their dividends. but westrock, classic cyclical name, too much debt. too big. let's go to adam in new jersey adam >> caller: what's up, jim? >> not much. >> caller: i want to know if uber is a buy right now. >> you have to tarik a really, really long-term view on uber. everyone wants this thing to just turn and go to 45 again that's not going to happen but i do believe in them long term and that's not like a hedge. i'm just saying it's going to take a long time let's go to jason in virginia jason. >> caller: hey, jim, long time, first time >> yes >> caller: real quick, jim i just want to give a post mother's day shout out to all
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the moms out there working their hardest to get through these tough times as well as to my wife jenny, all the work she does with our son landon >> i like that >> caller: a 40% beat on earnings per share, they also affirm 2020 earnings guidance and 2020 revenue guidance. there are not a lot of companies doing that this quarter. so, jim, with the approval of their drug expected in europe later this year and the company having a history of conservative earnings guidance, is now a good time for investors to be buying up vertex? >> it's amazing, it's the real deal i put it in the bullpen for, my charitable trust. i got on the conference call thursday, it is my mistake is it too late hit an all-time high today i think it goes higher how about that
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let's go to alan in virginia allen. >> caller: hey, jim, booyah. >> booyah. >> caller: first time caller, long-time listener i want to get your advice on this stock pick i've been following, this health care stock hnsy >> i like it i remember -- we used to have -- this stock is a really good stock. i don't know why it's down we have recommended it in the mid 20s. it's still in the mid 20s. i do like it very much let's go to pete in tennessee. pete >> caller: hey, jim, booyah from lovely johnson city, tennessee >> holy cow, now you're talking. wagon wheel man. >> caller: yes, beautiful down here listen, i'm a psychiatrist so i'm out of my what they call scope of practice here, but i think i know some real game
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changers when i see them, and i'm really impressed with marade therapeutics >> i am, too i am, too. this is oncology i encourage, i like a lot of the oncology stocks. this is a good one we did some work on it i agree with you it may be on both of ours many it's a good company. and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest. ♪
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[ buzzer ♪ ♪ what did we do with utility stocks here? on the one hand these are textbook safety stocks when the economy slows down like it does now. when the demand for power plum et cetera, that can put downward pressure on their earnings look at electric power which owns the largest distribution network in the country a.p. got hammered with everything else when the market crashed. the stock rebounded back to the mid-'80s where it stayed the better part of a month last month they reported a quarter the market didn't like so much. company delivered top and bottom line miss while management told us full-year earnings would come at the low end of the forecast but it still will beat the forecast the stock was hit losing 5% last wednesday. it's pretty cheap. a 5% yield, is that enough let's check in with the president and c.e.o. of american electric power to get a better
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read how the utilities are holding up mr. akins, welcome back to "mad money. >> hi, jim, how are you? >> i thought it would nerve happen i guess this slow down is incredibly powerful that even the business usage of electricity got hit pretty hard. >> yeah, it did. actually we looked at many of the activities that were going on the first quarter didn't really represent the true nature of what was happening particularly with the coronavirus so we picked our april numbers right before our earnings call, and certainly it showed deterioration in our commercial and industrial sector and our residential went up. so we're still working to try to figure that out in terms of how that mix is going to work in the future but certainly it's thrown everyone for a curve we think we have it well at hand >> how much of it do you think is work at home versus
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skyscrapers that are empty >> i think a lot of it is work from home. we saw about a 7 to 10 -- a 7 to 10% decrease in industrial and commercial customers which were basically those that are restaurants, schools, those types of things. they have fallen about 7%, 5 to 7% so those kinds of reductions you see, but you also see in april a 6% increase in residential so that means people are working from home, established at home, and certainly our margins are dictated -- we make about three times the margin on residential that we do industrial. so we're managing through that mix and determining what the right level of not only expenses, but also in terms of capital to deploy in relation to that >> but at the same time, you've done something that we don't think of that utilities do, forbearance. people are in trouble. you helped them. >> yeah.
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so, we've been active in the communities we serve our foundation obviously has been active. but our employees, just a great tribute to them. being able to work on our innovation labs, built masks, delivered those to hospitals and certainly for many of our customers, we've been working our call centers with the small business administration loans to our commercial customers to help them get back on their feet as quickly as possible. because obviously we want to see this to recover in a v-shaped as opposed to u-shaped or w or whatever >> how about the health of your workers who are out there doing things that i imagine if they get too close to each other they can get sick, like they had in that windmill situation at general electric up north. >> yeah, so we've added about 18,000 employees, 12,000 are working from home and doing very well from that perspective the others are out in the field. obviously responding to storm activities and those types of
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things we've taken extra precautions relative to that, making sure they have the p.p.e., making sure we have testing in place where we need to have testing, and then secondly with the masks and social distancing and all the hygiene activity we've been pretty successful we've had very minimal cases and all those cases, thankfully, are responding positively. so we're in good shape >> now, some of the utility stocks have really gotten clobbered here some in texas. it looks like -- i don't know, is this the time because of your balance sheet and how well you're doing that you should be buying somebody? >> so, well, obviously at this point, though, we're really looking at cash flow and making sure our credit metrics are secure but also making very positive adjustments as we go along our capital program is $33 billion over the next five years. we just shifted $500 million during this period, but we can
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easily put that back in, depending on what the environment looks like and certainly they're the kind of investments we can readily put back in. we're able and agile enough to do that. >> you have a chart on your deck which shows where you guys are in terms of renewables, in terms of wind, in terms of how much merck riff you've cut. it really is rather amazing. i don't know if you get enough credit for it. i want to give you credit. a & p has done a lot to reduce its footprint. >> that process will continue. no doubt we're moving toward renewables we're reducing our carbon footprint in substantial ways. but also in terms of the other kind of emissions, reduced markedly over the years. so we'll continue that process matter of fact, our north central wind project, with the coronavirus overshadowed very positive from that respect, a large wind project received
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arkansas approval. so now that project is moving forward. >> i think that's important for people to know because with natural gas so cheap, you could have arbitraged it but natural gas is carbon, and you want to be carbon free if possible >> actually it's a natural hedge to any kind of fossil fuel with emissions to have renewables in place. it's a natural hedge in terms of the price, but also a hedge in terms of carbon activity that may occur out of congress or elsewhere. >> look, the fact that you kept the bottom end, that's all i care about the yield is pretty darn good. nick akins, president and chair of a & p i like dominion and i like these guys "mad money" is back after the break. y motivated keep active and sleep well. add a little more health to your day... with nature's bounty.
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promise to find it for you here on "mad money. i'm jim cramer see you tomorrow the robinhood relief benefit begins right now ♪ hey, new york, it time to rise up. get up, brooklyn. you too, staten island. the bronx is up, manhattan's ready. time to shine, queens. our city is under attack. but we've been here before, and in the last 20 years both 9/11 and sandy. you can take your best shot, but you can't break our spirit. some say new york is the center of the universe, but for us, it's home. we're a community. and we take care of our own. the pandemic forces us to distance from each other, but it also draws us closer together. we care about our neighbors, and we want to help. it's no our dna. that doesn't mean we're losing r


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