Skip to main content

tv   Mad Money  CNBC  March 22, 2019 6:00pm-7:00pm EDT

6:00 pm
tie off because that's what we do here on the o.a i will be watching the commodities money on "fast money," specifically gold. gold always knows as does the d't market. >>on go "mad money" with jim cramer starts right now 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 save you some money. my job isn't just to entertain but to teach you put these days in context because they're tough. call me at 1-800-743-cnb or tweet @jimcramer. listen, this inverted yield curve can be wrong people think it automatically
6:01 pm
signals we're going into a recession. i am telling you right here right now there had no recession in sight let's stop the panic it doesn't matter. at least not on a day basis which is why the dow lost and the s&p plunged and the nasdaq plummeted 2.5% there's so much money being run by computers that stocks are destined to come down when you get this signal because historically an inverted yield curve has predicted a recession like in 2007 that's why you can't stop the rain coming down that's why i tweeted all day, don't be a hero. dent be a hero until more realize there are bargains to be had. and i don't think we are by the way, if the economy gets into a jam, the fed can cut rates to us out of it. stupid but they'll do it obviously this kind of action is disturbing, you don't wind much buying support it has no real limits up or down they don't put into orders that
6:02 pm
say, hey, down 1.5%, walk away and let it bill. costco different from mcdonald's which is different from amazon and jpmorgan, even though only jpmorgan is hurt by an inverted yield curve. remember, we've all been brainwashed. all that matters is the index, individual stocks mean fog so i say stay the course. because this recession that everyone is suddenly afraid of because of what the yield curve says isn't coming. that's it. if you're concerned stick with the fastest growers and the stocks with the biggest safest dividend yields like the pepsico up and get ready to ride through these troubled waters. what's on our -- what do we have on tap next week kind of a busy weekment apple repeals its new products we'll hear from the bears about how they're disappointed by the shooting match and kept it dry as it's been levitating and
6:03 pm
revenge right into the unveiling no matter how spectacular apple's announcements may be now, you know what i want from these guy, pore services that we're willing to pay 10 bucks a month for because the gross margins are so fabulous and it's sticky subscription economy i don't see how apple makes that happen without making an acquisition. regular viewers know i want them to buy dex com and tandem diabetes so they can offer diabetics a blood sugar monitor/inter-lynn pump that can be controlled from your cell phone. i want them to do medical records but that got no track. i like this better than one more video channel. if they're working on a bundle i could see why that's intrigue. they could announce something totally mind blowing and the bears are looking for a fight. after the right run they have the upper hand i'll be on scott wapner's show on monday. i bet he is. we hear from red hat, enterprise
6:04 pm
software company, it's being acquired by ibm. today was a troubled day they were hurt worse than anything big profits so you have to expect they'll sell off on a day like this one. you need to raise money in order to buy the ip oswell -- ipos. tuesday we get results from carnival difficult for them to top the incredible numbers we got from norwegian cruise lines earlier this week with a 3.5% yield. 3.54 remember, treasuries are 2.4 real momentum. i think carnival is a buy ahead of the quarter and pick some up with the understanding things can't be that bad for carnival we hear from a company that many people are intrigued about who watch and didn't i write about them all the time. i talk about them here cronos a canadian cannabis stock behind can poe pi growth.
6:05 pm
cronos took in 1.8 billion in return for 45% of the company. altria and i wonder whether some of it with come from cronos. that said, i still favor canopy. they got 4 billion smackers from constellation. next up, kaybee gives you a look at the real estate market. it's got some short sellers saying something about it. it's got a terrific closeout bottom be in ali's army i got to get another one just a sec i'm resourceful. no one ever -- when we do the real show instead of this rehearsal i'm going to pick this up
6:06 pm
since the last time we heard from them. see, you lost -- a little accident there now, when adobe reported investors yawned on tuesday analyst q&a a on a user conference and i bet we'll start hearing a lot of good things to make you want to buy regardless of the inverted yield curve. the pin action if i'm right could spread to the other cloud names like the foreign names, salesforce and service now, so we get to sell off off this inverted yield curve and all the machines and then you make some money on adobe wednesday morning we get results from lennar. i think the last few months have untethered the housing market from anything except mortgage rates and they're plummeting so might be a good time to buy a home or a stock. is the economy still accelerating or is everything
6:07 pm
cool we'll find out when we hear from paychecks. more for small, medium size business last quarter was fine. the analyst just don't like it and missed the boat the whole way out. we get results from pvh and lululemon. pvh hanging in there lulu has been roaring until it was body slammed by a curious downgrade and i think lulu is great. one rhine the stock never catches fire, pvh. acn wednesday, this company is terrific and helps clients go digital. when it gets hit and when it gets hit, you do buying. foot locker, maybe that could be april catalyst to buy nike which reported a fantastic quarter but gave a more tepid forecast i thought it was underpromptiis.
6:08 pm
their chinese sales were staggering and chinese discovered jogging women were mentioned more than 30 times in the conference call. we counted them. if foot locker tells a good story, nike stock can run. remember, by this time i'm thinking, all right, we're sick of hearing about the inverted yield curve. even those who talk about the fed are tired of it so nike is the right way to play. now, friday we find out once again how bad think the auto industry is doing when carmax reports. i think we're going to be in another another disappointment i wish i could be more positive about the retail that's run so well but the numbers probably won't add up finally best for last it's lyft. it's supposed to come public on friday and the ipo will be absurdly oversubscribed. people will be like, wow i think if you can get in on a piece of the action, you should do it. buy it in the after market, i'll never forgive you.
6:09 pm
headed into another week where it will embolden the bears we're not headed in a recession. the fed just took us one rate hike too many. and now we're all paying the price. how about we go to peter in colorado, peter? >> hey, jim, big fan i appreciate you >> no problem. i know you are fond of the telecom sector, verd, at&t aizot and know you're not hot on china. how about china mobile >> too hard. the chinese, president xi went to italy today right in president trump's face right in his face and said, listen, if you try to make it so that we'll be contained, we're in italy we can't do that we're not going to buy chinese stocks when these two countries are having a real cold war now we're going to mike in minnesota. mike >> thanks for taking my call from the host city of the final
6:10 pm
four, minneapolis. >> that's true i forgot that's where it's going. i just did okay in my bracks, not great. what's up. >> so far, there's lots left my question is about pivotal software, pbtl they're positioned well on the cloud space and dell remains a significant investor had a good run so do we buy in the dips >> you know what, i think you just buy dell. i think dell is the mother lode. i think it's a great stock michael dell is doing a fabulous job. that's the way we'll play dell is to buy dell all right. i think stocks have a lot of detractors next week sure, you can stop the rain, you can't stop the rain but i say you have to stay the course through this because we're not headed into a recession. we're just not isn't that incredible? look at the magic. the maker of the next generation satellites dave key data in the
6:11 pm
737 max investigation. the company shaping the future getting from here to there, lyft, i'll tell you if you can change your commute but make money in your portfolio and the talk of lyfting doesn't end. i'm sitting down with the ceo of planet fitness to see if it can muscle its way higher in the market i say stay with kramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an mail to or give us a call at 1-800-743-cnbc miss something, head to
6:12 pm
6:13 pm
6:14 pm
here's something odd while the tragic subject of plane crashes is fresh in everybody's mind do you remember when the malaysian airplane disappeared. we don't know what happened because the aviation industry used a radar based tractioning system and it couldn't do the
6:15 pm
job. it requires planes to frequently check in with infrastructure on the ground you're not tracking the plane so much as the plane tracks itself which causes problems if something goes wrong commonly viewed as a satellite phone company. next week they're rolling out a new system it's a tracking system that tracks them from above that's the why stock is up for iridium. a close look with its ceo to learn more about this aireon service. have a seat. >> thanks, jim. >> i don't know. almost a decade ago you came on the show and laid out a vision and it seemed almost too good to be true. you had to spend billions of dollar, put up all these satellites and you would reap the benefits we're about to reap the benefit. >> we are. it's amazing what happens when
6:16 pm
you finish climbing that mountain of capital that you have to do you know, we crgrew very well oe the last eight year. >> have more than a million people. >> almost downed our bottom line but during that time we were spending a lot of money to replace our network. as of two months ago, the last satellite went in and we have a ten-year capital holiday where we are going to spend, you know, a minimal amount of money really over that time so our free cash flow is just going to really expand dramatically. >> it is without you, i mean really is primitive. right? i understand that you were also -- you were able to track something between the ethiopian airline and indonesian in the recent two crashes. >> just so you know our -- each one of our brand-new satellites and we have 66 in orbit have a special payload about this big that aerion and it can hear it,
6:17 pm
speed, distance. >> every one >> in the world. >> every one that has been installed but the faa and others have mandated that every airplane that flies in service which is certainly every airliner like u.s. or europe should have this box on by the end of this year so almost everybody really has one of these things on them certainly the ethiopian air one did, the lion, even the mh-370 but it was turned off. nothing could hear it because there were only ground systems so radar has evolved to ground systems. we thought what if we use this incredible real estate, a whole planetary umbrella around the planet to listen to those all in realtime that's when we created aireon a joint venture between us and other service providers and they're almost ready to launch their service to track every airplane and let air traffic control earls give more
6:18 pm
efficient service. it's not just about safety but efficiency. >> i did read that iridium was involved in trying to figure out what happened with these two downed planes. >> in a small way, we were i mean, i'm proud that the system has been in operation here and will go live for paying traffic in a few weeks or a week or two but at the time, we heard, if you wiheard, it picked up the transmission and when the faa and asked us and when we provided it for the lion air they could feel -- >> similar. >> and within an our or two they said it's the same thing and we need to ground these airplanes even without the system being turned on live which will be soon -- >> to me you're being too humble the faa was trying to figure out what to do and you guys came along but that's one small part. you've got a huge commercial enterprise there are many, many people, we
6:19 pm
think there's cell towers everywhere but it's really untrue i mean this service -- how much of the world is covered by cell towers versus what you can do. >> maybe 10% to 12%. it hasn't expanded that much even today as we talk about 5g which is exciting, i can't wait to get one too it's still all going in the same places which is where primarily people are in city, towns and on roads, but they're still the same areas of drop call-ins. in the ocean or in the air or across the way which people might not be but packages are. >> right, right. >> containers are and trains are and fishing vessels are and airplanes are, that's where we fill in. >> what happens if you have a cape holiday and signing people up the cash flow is going to be amazing. >> we're not really like another -- you know, if you look at all the satellite companies out there, most use g geostationary satellites with
6:20 pm
capex programs and every year they do it nothing else like iridium that creates high cash flows. for the next years we will throw off a lot of cash. >> dividend, buybacks? >> that's what we're excited. >> maybe like a utility that pays a good dividend. >> like tower reit. >> like american tower amazing stock. >> think about those companies that really have more like our financial profile, maybe than we are like the other satellite companies and i think that's maybe what investors are starting to appreciate that perhaps we're not -- we shouldn't valuate us as the most expensive satellite stock or maybe like these other companies with very high conversion and free cash flow, you know, capex intensity. >> i'll congratulate you because i believed in you then and it played off look at the gains this year. it is just beginning in the sweet spot just now. >> exciting place to sflb thhave
6:21 pm
been in. remember, also, i mean this could be like american to you are which we lyinged for a very long time and till do. "mad money" is back after the break. -i call it my comfortable future plan.
6:22 pm
-it's our confident forever plan. -welcome to our complete freedom plan. -it's all possible with a cfp professional. ♪ -find your certified financial planner™ professional at you mighyour for your heart... -find your certified financial planner™ professional or your digestion... so why wouldn't you take something for the most important discovered in jellyfish,grediey
6:23 pm
prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. it's a brutal day where we got hammered by fears about the inversion of the yield curve which is sometimes the coming of a recession. do you remember what works in a low growth low inflation environment? there are a lot of stocks that get more attractive in a mediocre ireconomy listen, stocks with with secular growth works here. companies with huge potential earnings many years down the road when wall street gets worried about a slowdown that's what
6:24 pm
money managers manage to circle their wagons around. one of the most exciting secular growth stories i've seen comes public, lyft l-y-f-t which is one of the most hotly takened ipos of the year ride share apps are becoming more and more popular and young people don't even bother learning how to drive anymore. let alone own cars you better believe lyft and its doppelganger uber can thrive in any environment. it seems right but will the stock be worst buying second question not clear complicated but i want to show you how to answer it because we've got so many of these big unicorn ipos coming up i need to give you a filter and con tech of how you analyze them. first you need to valuate the company then the stock, figure out how many you'll pay for it maybe you're paying too much we want to stop that when you look under the hood, lyft's got a lot going for it. that's why i do think it's worth
6:25 pm
owning as long as you can get it at the right price last year it doubled in sales. the whole transportation is a service position it's booming. however, real negatives here and may be more cautious which is why i won't tell you to buy it any level. i'm trying to stop that. let's start with the positive. lyft launches peer to peer ride hailing app in 2012. they had already expanded in 300 markets and available to 95% of america. they've facilitated over a billion rides. lyft is the number two player but now have 39% market share in the ride sharing business with 18.6 billion active riders since december and still has a ton of room to grow and believe we're in the early innings away from car ownership and incredibly bad oil stocks suggests they might be right for a lot it seems crazy
6:26 pm
why shell out tens of thousands of dollars that sit income a parking lot and you got to pay insurance for. as lyft sees it americans spend $1.2 trillion on transportation every year they think more and more of that will go to the ride-sharing space which is a duopoly between lyft and uber. when you look at the numbers they are impressive, lyft more than doubled revenue although that's deceleration for the 200% growth they posted in 2017 the company is stale far from profitable because they're spending so much, the opportunity costs, but its margins improving not going down, in 2016 lyft had an 18% gross margin, what they make after cost of goods sold and increased to 42.3% and you have a 70% gross margin, 20% earnings before interest and amortization, ebitda up from negative 43 but haven't given us a clear time frame how to get there. this balance sheet is pristine because they've never had trouble raising capital.
6:27 pm
that's before they get another $2 billion in cash from the ipo. on the other hand they're burning a lot of cash. last year they invested over $1 billion in the business in 2019 and turned out to be a bigger investment bookings, these numbers are slowing. they're up 75% last year versus 140% increase in 2017. that's the law of large numbers. hard to keep going higher. on the plus side revenue is a percentage of bookings 18% to 27%. they're making more money and more money on each ride, put it all together you have the makings of an incredible growth story, lyft's active riders have more than quintupled in the last two year, total rides increase sixfold more than doubled. at the end of the day this is about growth, growth and then growth how many other publicly traded companies grew at 100% clip last year even if it's going to slow as lyft keeps getting larger,
6:28 pm
however that doesn't mean stock is worth buying. all that good stuff, remember this, remember snap, the parent of snapchat, investors were forecast similar numbers and expected 2 billion for 2018. in reality it only hit 825 million in 2017 and grew to 1.8 billion in 2018. see, that's radically weaker than expected. we know growth can ee have bevae even autonomous drive, a lot of powerful themes. at least it will have real scarcity value it's the first online ride sharing service to come public although how that will look after the upcoming uber ipo is another question now, the biggest concern is lyft lost nearly a billion dollars last year. we have no idea when it will become profitable. yesterday the company held a major investor meeting where they indicated 2019 would be a
6:29 pm
peak year for investing in the business that's very positive but they'd like it to be the peak before that the problem here is that if anything starts to go off the rails there's nothing propping up the stock the other big issue lyft has a dual class ownership structure roughly half of the voting power is in the hands of the two finders. when shareholders don't have the ability to remove management you can have perverse incentive, something else lyft has in common with snap lyft's business is a regulatory nightmare. heavily regulated at the local and state level and these irs rupp tiff tech companies continental popular with politicians. how much is this thing worth considering that baggage usually in the midpoint of the ipo $6 a, it will be roughly $21.5 billion company. depending on what kind of assumptions you make that means the stock could sell anywhere from 3.8 to 4.8 next year's
6:30 pm
sales. next year's earnings not a p/e. either way, that's cheaper than netflix, it's cheaper than etsy and zora i think the stock can go to 75 bucks before it starts getting expensive but forall we know we'll go to $75 immediately after we start trading after that we need to get more cautious limit orders, not market you are going to thank me. limit order, the bottom line, i think lyft is exactly the kind of tock that can work at a slower growth environment but you need to be care tully with these fresh face ipos. but long-term investment, call me skeptical and let me speak to henry in tennessee. henry. >> caller: boo-yah, professor cramer. >> boo-yah >> longtime listener and wanted to thank you for everything you do for us home gamers. >> thank you
6:31 pm
right back at you. >> caller: all right my son actually wanted to ask you a question >> boo-yah, mr. cramer my name is devin and i'm 11 years old. i recently became interested in investing. i wanted to know your thoughts on ferrari ticker symbol, race. >> all right >> announced by 2021 does it have more room to run? >> i mean, this fellow ought to have his own show. you got horse sense. ferrari is real good i do think by the way that the auto business is not a good business i was over to see lamborghini. they're crushing it. but you'll be fine with race don't be greedy. 11-year-old. fantastic. donald in idaho. donald >> caller: yes, thank you. from lewiston, idaho in december you gave two cents about ten cent music their ipo.
6:32 pm
what are your thoughts now on that >> this stock, it wasn't fair. it went to 12, went to18 then it's come back down you know i don't like the chinese stock market i'm only recommending alibaba because i feel like i have to have something there this stock is getting down to where i think you could buy it again, maybe 16 flat so to speak is where i am. i need you to know your ipo. that's why i did it a full week in advance, limit orders with your broker to try to get some lift because i think it can work in the slower growth environment. as a long-term investment, i still have to be skeptical with everybody snapping selfies more important than ever to feel good and look good could a stock like planet fitness get your portfolio in shape. i'll sit down with the ceo and then with two of the highest profile internet companies planning to go public on the nyse, i am wondering how the cycle will play out. i'll give you a rundown and
6:33 pm
think it will be eye opening and tonight's edition of "the lightning round" so stay with cramer you still stressed about buying our first house, sweetie? yeah, i thought doing some hibachi grilling would help take my mind off it all.
6:34 pm
maybe you could relieve some stress by calling geico for help with our homeowners insurance. geico helps with homeowners insurance? they sure do. and they could save us a bundle of money too. i'm calling geico right now. cell phone? it's ringing. get to know geico and see how much you could save on homeowners and condo insurance.
6:35 pm
6:36 pm
now that we're in the midst of a marketwide pullback, you know how ugly it was today i say wait before you purchase a stock. we have to ask ourself what is is worth buying into weakness? you want high quality companies with terrific consistent growth story, companies like planet fitness. the franchise based gym chain been an incredible success story due to its judgment-free ethos i recommended two weeks ago in
6:37 pm
our compare within with weight watchers it rallied another 3 bucks even after today's sell-off, only got dinged for 1.3% the good ones don't come in easily, don't they it's been a huge winner up from 16 in 2015 to 66 and change today. i bet it has more room to run. buy here on a dip. do not take it from me let's check with chris rondeau, the ceo of planet fitness. welcome back have a seat. congratulations again because you put up numbers that were extraordinary. maybe the best of all the retail consumption play and i think people are going to say, well, how did you get all those? why are they coming and how -- what is the secret sauce so why don't you give it to us. >> yeah, you know what, we say it's the marketing machine the flywheel 9% of every monthly membership dues goes back into marketing. every member fuels tomorrow. >> i was looking at what you put out.
6:38 pm
you guys do spend a lot of money on marketing >> sure do. >> but i'm sure the franchisees love it. >> when you look at our size and scale it's in everything we do great franchisees and compiled the best of the best we opened 800 stores, opening the 20th or 50th store. >> why don't you buy a franchise. i heard you don't just buy a franchise, you have to be great before you can get a planet fitness. you screen pretty heavily. >> you got to believe in the model. >> now, the model is very inexpensive. how do you -- i was talking to a couple people who go to the gym. how do you keep it clean with those low dues >> we have an extreme line business model very streamlined we don't have the pools and day cares, we have tons of cardio, tons of circuit training so we clean, clean, clean and pay
6:39 pm
attention to the member. >> if you buy the upscale card you get to go to any planet fitness. i imagine you have a lot of millennials say they are owe on the road >> out of our minimums we have 12.5 million members >> incredible. >> 60% of them are black card members so 60% and reciprocity, all 1700 store, no charge, as much as you want and last year about 50% of our black card members used a different store than their home club in 20% is not at their home club. >> incredible. i always like to tell this you did not start out with a thousand gyms and 12 million people you started out in a totally different way that america needs know how did you do it. >> i started working at the front desk working the front desk making $6.40 when i was in college. we had one store trying to figure it out, juice bar, dumbbells, 35 bucks a month. it was rural and we had to
6:40 pm
figure out how to get the masses off the couch. 20% of the population have a gym membership back in the day it was only 15%. how do we get the 85% off the couch. first price then the atmosphere. that's getting the first timer making it comfortable, not intimidating not catering to the avid exerciser, getting rid of the dumbbells and squat racks, people grunting and dropping weight. >> no judgment. >> absolutely. >> even pizza. >> yeah, we have free pizza the first monday of every month and go through 50, 70 pizzas at a club kind of a social atmosphere and the staff get to mingle with the members. more of an appreciation. we look at it. if you happen to work out you deserve to splurge once in a while. >> your demographic is not poor people not that there's not anything wrong with it but it's all different. >> very diverse. our studies show 50% -- a third of our members make over 100, a
6:41 pm
third make under 00. if you've never worked out before regardless of your income, you're intimidated. >> you have a new deal with one of my favorites and great ceo too, michelle gloss. you have with kohl's how is that working. >> we had a great conversation. >> she's fired up. this is a great partnership and look forward to getting the stores open. she works out and hopefully lees to many more in the future we complement each other out of the 12.5 half are millennial and their average age is much older so they can help us and they can help them. >> there are a bunch of them these guys have figured it out open storefront. i'm sure you got a fabulous rent deal isn't that what's going on with all these open store fronts. >> absolutely. we drive 5,000 workouts per week per center did a study, really interesting story. a study 89% of your members combine other shopping in the center while they work out
6:42 pm
16% do it every week and 26% said that they had never shopped in any retailer in that center prior to joining >> they should be paying you right. just turn the tables on them there's so many aren't doing that well, look, another unbelievable year i mean, the only thing i worried about, how -- encore how do you keep doing them. >> we have great franchisees that are passionate and on top of the 1700 open a thousand in the pipeline half open in the next three years. 80% of the population don't have a gym membership out of the millennial population we have a 7% penetration of every millennial in the country. now you have gen z coming up the industry will grow. >> terrific story because you're a terrific story congratulate you thank you to chris rondeau, the ceo of planet fitness. now you see why we like this story so much. and for a long time. "mad money" is back after the break.
6:43 pm
mimini was born extraordinary, with more power for more fun. mini was born to do the only thing we ever wanted to do. drive. to hit start and just go. fast and far. around town and around hairpins. to leave everyone in the dust, and leave rubber on the road. because mini was born to drive. drive for yourself at the mini born to drive sales event. special offers at your local mini dealer.
6:44 pm
6:45 pm
>> announcer: "lightning round" is sponsored by td ameritrade. it is time
6:46 pm
it's time for "the lightning round. >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and then "the lightning round" round is over are you ready, skee-daddy? galen in illinois. >> caller: hey, game big boo-yah from the land of lincoln. >> what's up. >> caller: hey, got a question for you, before i pull the trigger on this stock it's one you had recommended previously it's called enterprise partners. >> the company that's the best play on the export of energy and the national limited partners with bonds finally combing alive, 6% yield. >> buy, buy, buy to ryan in florida ryan >> caller: how is it going, jim? how is the wife? >> not bad thank you for asking she's working tonight. i'll be working tonight. i can't wait to start pouring. what's up? >> caller: perrigo.
6:47 pm
>> no, not perrigo get your head in -- get maefrjt how about marc m-u-r-k-no m-e-r-c-k >> caller: i'm part of the charitable club. >> we get some good ones >> caller: so, jim, a few weeks ago you interviewed the ceo of ayx. a great interview. i already had a small position and since the interview the share price moved steadily up until today, of course >> yeah. >> caller: time to take profits or -- >> no one ever got hurt taking a profit good stock maybe, you know, maybe you do a little schnitzel take some off and let the rest run. joshua in new jersey joshua >> caller: what's up, jim?
6:48 pm
how are you doing? >> i'm fine. getting ready to kick back and start working at my other job. >> of course >> yeah. >> caller: i was wondering about cdss >> a small diagnoses to tick tool cup codexis. i won't tell joshua i like it. that's what the jokers and the knaves and fools do. we'll come back and do homework. tim in washington. tim. >> caller: hey, mr. cramer, thanks for having me how are you doing? >> i'm doing darned well how about you? >> caller: doing well. looking forward to the weekend >> well, we had a birthday here. it makes me happy. our staff. we actually celebrate stuff like that what's going on >> caller: i'm wondering about action enterprise. >> why is that stock down so much i got to tell you, i think it's a great opportunity. rick has a contract which incents him to make money for
6:49 pm
the shareholders and that's exactly what i want. and that, ladies and gentlemen, is the conclusion of "the lightning round. [ buzzer >> announcer: "the lightning round" is sponsored buy td ameritrade i'm worried that tim cook will need to introduce a driverless mac car that runs on water and for an addition ago $49 can take us to mars. it has an ecosystem which you can't live without this is the symbol for an ecosystem and i need some zzzzs. >> boo-yah i have no idea what that means. >> i don't either. visionary. live long and prosper. ♪ see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know?
6:50 pm
well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
6:51 pm
6:52 pm
♪ i'm coming ♪ i'm okay, we teed to talk about the life cycle of the ipo market they come in cycles. yesterday it began with the achievement of the good deal from a company with a fantastic brand name very lie chip bergh has taken an insistent business and turned into a well oiled machine that
6:53 pm
is getting revenue growth. anyone who bout levi's at the opening dot a terrific $20 and change basis if they played their cards right by buying in the after market now they have a nice position in a company ha should have a good first quarter right out of the gate so he can settle in knowing they have a gait apparel play. that's how it starts the first ipo is always the highest quality and priced to move and always priced to make you feel fantastic next the underwriters begin bringing unicorns that start with lyft next friday. still, lyft is viewed as a solid tech transport play and that thor is a market that hates the banks. the oils are hated too and i bet lyft and uber will be beloved for the same reason people like square and paypal more than bank of america and i don't know
6:54 pm
jpmorgan once again they will price it reasonably that's the way it works. now, levi's will be too much demapped after what happens but give you a nice engineered first day pop and the big money managers will get a piece of the deal and end up with a solid cost basis not as good and seeking valuation of 21 to $23 billion gu but given the retail demand i believe that lyft will trade north of $30 billion unfortunately these buyers will have to sell something in they want to swap into lyft because there's not a lot of new money coming in. like i don't know a salesforce, visa, something of that ilk to raise cash to buy lyft then we'll get the pinterest i po after the close they released its prospectus they got to move fast but kick around for a long time i think it might end up being the first of the sliver ipos,
6:55 pm
the ones where because it's not as much demand they won't offer that much stock in order to be able to have an engineered artificial pop right out of the gate these happen because things are starting to wane, the are is declining from regular investors in the big funds have already started to be stated and let's remember most is run by index funds and not a lot of participants because after the sliver deals we got the flotsam and jetsams. the mother of all deal is about to occur, the one everybody wants. the prize, uber. now, if history is any guide this is where it goes awry i don't think they'll order the flood of orders and mutual funds that think they're owed stock because they held on to pinterest and lyft uber going to the new york stock
6:56 pm
exchange i'm thinking maybe they won't have any real trouble on the he can change side like when facebook came public on the nasdaq but the orders will keep flooding in and it will open too high and go higher once you get the pop then uber will start coming down as institutions that got lots of stock on the deal are given the free to trade instructions by the brokers meaning they'll ring the register just to sate all the original investors using marketing orders and will get smoked after it peaks it's all downhill and more sliver deals from worse company, maybe they can place their b & b in the queue. maybe they can't but won't be enough institutional demapped because there won't be enough money around once it comes it's all over but the crying it sinks under the weight of of all this new supply. that's why i can't enjoy all this exciting long awaited ipo
6:57 pm
talk the cycle has begun and while it's all joys and high-fives at the start, it's always tears and heartbreak at the end. stick with cramer. you're searching for something more... right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in.
6:58 pm
your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place.
6:59 pm
because when it's decision time... you need decision tech. only from fidelity. okay, tonight we heard that special counsel robert mueller has delivered his russia report to the attorney general. it signals the end of a nearly two-year probe but, of course, it's still unclear how much will become public. all right, bad day today and it's all because of this inverted yield curve i am telling you, look, i don't know when the selling will end but it's misplaced because it's about trying to get ahead of a recession and i don't think there will be a recession. plenty good stock, not just pepsico and not just clorox. we'll find them together i don't want you panicking, people nobody ever made a dime panicking. i always say that's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you monday.
7:00 pm
narrator: welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ to add affordable and sustainable protein to a favorite snack. ♪ hi, sharks. my name is rose wang. i'm from san francisco, california, here seeking $100,000 for 7% of my company, called...


info Stream Only

Uploaded by TV Archive on