文字起こし　 Upstart CEO, Biohaven Pharma CEO, Crocs CEO & Sysco CEO 5/10/22

ジムクレイマーのMAD MONEYの文字起こしになります。米国株を英語学習を通じて投資したい方に向けて作りました。皆さんの反応を見て改善点や英語解説などい追加して行けたらと思います。とても有益な番組なのにジムの英語が難しくて悩んたのをきっかけにこのノートを作成しました。 聞き取れない部分もあるのでご了承ください。是非Podcastを聴きながら合わせてこのnoteをみれば、様々なアメリカ英語を聞くことでリスニング力を鍛えることが出来ると同時に、タイムリーな米国株投資情報を得ることができます。イイネ！と思った方は投げ銭いただけると嬉しいです

0:47
Hey, I'm Chris. Welcome to Mad Money. Welcome to Kramer, Erykah Badu and make friends that was trying to make some money. My job is not just to entertain you but educate and teach you so call me at one 807 43 CNBC or tweet me at Jim Cramer. Look, if you want to die by the sword, you have to live by the sword too. If you're selling stocks, because it looks like the yield on the 10 year treasury was headed to three and a half percent, then it suddenly switches directions and looks like it might be headed to 2.75% You can't pretend like nothing's happening. It could change the entire tape, which is what we saw today with the Dow dipped at four points, but the s&p advanced point two 5%. And then as that jumped point nine 8%. These are people versus the 40 plus years I spent buying and selling stocks, I've learned that long term investments can like it or not become short term trades, even when you don't want them to be you can panic and sell your stocks because interest rates and turbo charge like a Formula One race car. But if the car starts going in the opposite direction, you need to adjust accordingly. You can't stick to your guns because your guns were based on bond yields going higher. Today's though those guns they ran out of ammunition. Listen, I've run a chapel trust in conjunction with the CBC Investing Club. In my capacity as a portfolio manager for the trust. It's my job to recognize that sometimes rates can go up too far too fast primary and come down a bit again. So we're selling stocks based on fears of ever higher bond yields, which you know, we've been doing for weeks, and suddenly you get a reversal of that trend. As we saw today. We can't just throw our Mo out the window and pretend the reversal didn't happen. It did to borrow my favorite apocryphal line from the late great John Maynard Keynes. When the facts change. I changed my mind. What do you do, sir? When you're a public figure, that that kind of thing can get you mocked endlessly because people hate it. When you love a stock one day and loathe it the next critics will roast you for being inconsistent even it turns out you made the right call. Very easy to stitch together some incredibly misleading YouTube clips that makes someone in my line of work like a moron furries. But when you when the facts change, Jimmy chill says you got to change with Case in point there are a ton of similarities between this moment in the end of the.com era in 1999. I was wildly bullish on Internet stocks, in part because of the by work with the street.com a publication I started 1995 and took public in 1999. The market was in love with a whole group picked it practically every week for backup huge percentage gauge that Doc was the biggest gains that we've ever had in history, the market. I was telling everyone, this was an amazing time and you had to buy good. Then the facts changed. the.com started running out of money. There were endless stock offerings for both insiders in the enterprises themselves. So I realized after enough of this for three months, in three and a half months, in 2000, it was time to get out of dodge. Now back then I didn't have a TV show. But I wrote a trading diary for the street. And I told people I had enough the dot coms by the third week of March 2000. That's an almost exact nailing of the tarp. And because I put my money where my mouth is I want 100% into cash in my hedge fund for only the second time in its history, the first time being right before the crash in 1987. Two for two. For days back in 2000. I told people I was cashing out and even shorting tech stocks have gone up too far. Given that the vast bulk of people listen to me made a ton of money in the stocks on the way up. I was shocked by the widespread antipathy when I changed directions. I spent weeks reading the dot coms were an investment that turned into the trade of a lifetime. In other words, we thought they were long term stories, but it turned out they were fabulous short term trades. And you read during the register, it was wishing you didn't but you did. That's why I turned on the whole group right before it peaked. And I stayed negative on these things for years afterwards. Good, cool. Just like back then in November of last year, I walked into the investment club, about the age of silliness being over. I told you to circle the wagons around companies that make real things or provide real services at a profit and ideally return some of those profits to shareholders at reasonable prices. Anything else was going to get torn to pieces as the Fed started tightening, good call. But now the whole growth cord has been obliterated. Thanks to the relentless rise in the long term interest rates then yes should we start to get a reprieve as rates begin to go back down something that continues today not be but it continued. At that moment. I had to change my attitude once again and start searching for bargains. I think this is one of those times where the bond market saying you can buy stocks not sell, even if you've been a seller. I know switching directions, directions opens me up to ridicule. But I'm not trying to avoid ridicule. I'm trying to give you my best assessment of the stock market. What I can tell you is that many tech companies that make real things in return capital shareholders now to sell at reasonable prices into the snom you're selling No, I'm not talking about unity or Coinbase or upstart which is one tonight or peloton, or Palantir. I'm talking about amazing semiconductor and software companies, especially NASDAQ names, they're doing so well, including internet games, making so much money that they become cheaper than the rest of the entire market, as measured by their growth rate and profits. And as club member members know, we are buying them back often well below we sold them. Honestly, I felt terrified putting that cash work for the chapel trust, these tech stocks have been totaled dogs. But if long term treasury yields are no longer soaring, that can make a huge difference. I don't like to be a traitor for the travel trust. But this has become a traders market. I can't stick with my guns when the facts change. I can't stick to my old views when the data no longer supports them. Just because the peanut gallery values consistency. A foolish consistency is the hobgoblin of little mine mentioned on Twitter. If you want true consistency in this market, you got to take your cue from bonds and bonds have changed direction with anata Cathy wood type who pronounces all trades as classic lifetime disruptive investments, and then sells them as out if they go down. I won't tell you all my calls will be right. Or that I'll be vindicated the long haul. I like to do Biden and I to do homework. When I get something wrong. I try to admit it rather than making excuses. I shouted from the rooftops so that everyone can learn from my mistakes. Go watch my my morning meetings with with Jeff Marx. And you'll see most of them is about things I get wrong. I don't know if treasury yields will actually keep heading lower. Tomorrow CPI can be read, I think the reverse, but I do know that the stock market has gotten oversold to the point where even a couple of days of calmness, the bond market can actually create some nice action and stocks. The one thing I don't fear anymore, the critics who say this clown Cramer was just telling you to sell Microsoft, now I want you to buy it. That whole line of thinking is idiotic. If you sold Microsoft in the three hundreds and you bought it back in the 200 and 60s, you sidestepped a huge decline. The bottom line when the facts change, I do change my mind. Right now the facts are a lot less hostile to the beaten down high fliers, at least for the moment. And I'm hiring the portfolio to reflect that there are lots of tech companies that now return capital U and are reasonable prices and are going to have very good growth. They exist again. I'm looking at them. Don and Alabama Don

7:43
Jr.

7:43
Jim cool. Yeah. Don, from Bama.

7:45
Want to ask you lift? Is it a bar right now? Or should we just hold off and wait?

7:54
Why lift, there's no need to buy lift. It's not the kind of copy that I'm recommending. I want companies that are making a lot of money that have come down a great deal. And Lyft is not one of them. So I'm sorry, that is not going to qualify. Let's go to Emily and Arkansas. Please, Emily.

8:10
Thanks for showing myself and other investment club members how to transition our portfolio or navigate the times where my stock Airbnb doesn't fit your guidelines for the kind of stock to buy right now. But you showed some excitement about this company. When you listen to the CEO talk about the business now going forward. Yes. Would there be a place for the stock of Airbnb in one phone lease?

8:34
It's hard to first of all, Emily, thank you remember the club, it's hard to figure out what to what you should pay for Airbnb. They have a gigantic amount of cash flow. I mean, huge. So I felt like that I can get better and feel more comfortable about it even though it sells it 50 times earnings. But no one wants to buy a stock at 50 times earnings even as one is this. This is one by the way because people are traveling I would be a buyer of some and then let it come down. That's how I would approach it. Let's go to dentists in Connecticut Dennis.

9:02
Hey Jim, big Connecticut blue here to you.

9:05
I'll take it thank you what's up

9:07
with the airline industry is picking up in spare parts markets got to be soaring. And you also got the war in Ukraine with the javelin and the stinger missiles with Raytheon. With every NATO country you country ordering plus us backfilling our our supply. Would you say Raytheon by at this point with

9:27
Raytheon very much. I also like Lockheed Martin, which is you know, makes javelin. I think AeroVironment is very good. But I think Raytheon is excellent. You're absolutely right about the spares right about the engines. It's a really, really good story. And I think that you're right on there and just to be a buyer of right. When the facts change. I do change my mind. The facts are now a lot less hostile to a lot of beaten down tags that were very expensive that come down and at the Treasury stay calm. It could be good for a couple of days. Well made money tonight a big guest lineup appstore plummeted over 50% of the company cut its full year revenue forecasts. I gotta get to that bottom story for all of you who own it. Maybe we figure out what's going on and down significantly from its high should investors trying crops on for size or was that just a pandemic play? I'm talking to companies top brass then Pfizer now say would acquire biohaven pharmaceuticals and the biggest deal since 2016. And I'm learning more about the details of the of the deal with a company I know very well. biohaven stay with Kramer.

10:30
Don't miss a second of Mad Money. Follow at Jim Cramer on Twitter. Have a question. Tweet, Cramer hashtag mad tweets, send Jim an email to Mad money@cnbc.com Or give us a call at one 807 43 CNBC miss something head to Mad money.cnbc.com CMBC is workforce Executive Council is a premier group of C suite Human Resources executives from leading companies across the country. It offers a members only portal and chat plus exclusive industry content with access to Breaking News calls and digital networking experiences. The network and resources HR leaders need now applied to the workforce executive council at CMBC councils.com/wec.

11:31
Right this market is merciless Damien's going out of style the Wall Street Fashion show what is today's horrific 56% to climb up toward a heavily shorted stock, the artificial intelligence powered lending platform last year this was a beloved stock but like so many other FinTech names it's fallen deeply out of favor, now plunged from four to one its highs to 33 and change today. upstart is a turbocharged growth stocks, so it's been obliterated by the markets revaluation of all values over the last six months. But lately there's also more serious questions about the business model some of the loans they have sold it because underperforming the absence of government stimulus programs go in a rising interest rate environment and you can understand why Wall Street's skeptical and that why I am skeptical. So when upstart important last night even though they beat the expectations for the quarter and crowed about that investors only cared about the fact that management issue very disappointing guidance for the current quarters slashes full year forecast. Worse the company announces been using his balance sheet is a form of bridge financing. While credit markets adjust to higher interest rates and the loan balance more than doubled during the first quarter. I didn't even know that a loan bounce business model here is that they sell these loans to other investors. So they're sitting on a ton of excess inventory, perhaps with dubious vintage that's sub optimal. On the one hand, I gotta wonder if upstarts been punished enough. On the other hand, there's no telling how much worse things can get. If the Fed finishes tightening and towards the two year goes higher. So let's think deep with Dave Jordi is the co founder and CEO of upstart who's willing to come on the show in both good times and bad, but that Mr. Rob, welcome back to Mad Money.

12:57
Good to be here. Jim. Thanks for having me.

12:59
All right. It was it fell by name is Cliff Hodge on today on our Air Chief Investment Officer Cornerstone wealth, here's what he had to say about you. upstart is a disaster down 60%. Today, still trading at six times next year sales estimates, which are going to get marked down this stock is the poster child for what can happen during regime change. That playbook is over. Why is Cliff Hodge wrong?

13:21
Well, Jim, I, I don't know what clips talking about. We are a FinTech that has delivered seven straight profitable quarters in four straight quarters with triple digit growth rate. So if you can find another FinTech or another technology company, you know, with that combination of growth and profits than I think you should buy it. So if I ever visited

13:39
Coffee with 600 million bad loans on the balance sheet, I wouldn't buy it.

13:43
Yeah, we don't, Jim, we are, we are a technology provider to lenders, we occasionally take some loans on our balance sheet to test our models and in bridge, but we aren't fundamentally a lender ourselves.

13:58
2.91% average legacy, I don't have to test the model. That's awful. I've been I've been in banks all my life. That's a bad model. You know that too. You should have been flagged that 2.9 is too high. That's what I did to Clemson. That's what Cal said, Come on, my friend, you better neck.

14:14
Jim, we're a platform that has dramatically overperformed and credit performance and far out distance traditional models. That's what matters. We have more than 50 banks and lending and credit unions on our platform. And all of them have seen either over performance or on target performance throughout all of COVID.

14:32
We'll put what you said then there's your quarrel. There are two or three vintages that were right around the time of what we call the reversal of the last trend. And you can see this in our investor deck and they basically were gonna marginally underperform. He talks about underperforming so why didn't wells take them? I didn't get one of them your partner's take them when they first arise and take them. I mean, if they're so good, why didn't I take Why didn't you abs in them?

14:55
Well, Jim COVID period was a period of tremendous over Performance delinquencies were down about 50% below where they were modeled to be largely because of stimulus provided by the US government. So our model accommodated that and then return to normalcy a couple of them are a little bit off performing, but not radically and not dramatically art over the history of our platform. Credit investors, as well as banks and lenders have seen tremendous over performance, and we're very proud of the performance that he's delivered.

15:28
Today, that's all great. What I want to know is when I see a stock that is down 56%. Okay, I don't say you know, what time to buy. I say what went wrong? Why do you have any loans on your balance sheet? I thought you were a platform, a platform that every bank I know loved. I was shocked to see how many loans you had on your balance sheet shocked? And it said to me that I did not apply? I did not know upstart I thought I did. But there are other investors that you and I both know who thought we did. And we were shocked at the amount of bad loans, or potentially bad loans or your balance sheet. Shocked?

16:04
Yeah, first of all, just just to make it really clear, in the first quarter, a single digit percentage of the loans that were originated on our platform came from our balance sheet, that hasn't changed in our history, we've said we use putting loans on our balance sheet to test new products and new models. And that's largely what those represented. So it's not a new change in our model, more than 90% of our loans are originated and held by banks originated by banks and sold forward to institutional markets. That hasn't changed, Jim, but 10%

16:34
of the size of your doing has changed. And then you're moving into auto refi, which I find is the most difficult single business that I'm that involved right now. When I'm watching core Vaughn, and I just say, Dave, cool, man, just go back to what you were doing. And don't do the price discovery just be this fantastic platform that every bank needs in order to be able to access the smaller investors who are really what I really why I liked your company so much. And you know, I see vintages that are bad, I think about companies in 2007 2008. They told me vintages went bad. And you know what, sometimes I'm still criticized because I didn't say they're all going bankrupt. And I know you're not but I'm gonna tell you it was it was it was it was certainly ill advised to have that many loans on your on your balance sheet. And a lot of the bankers told me it's because you couldn't get you couldn't get rid of there was no way you could get rid of

17:25
Jim through most of COVID loans that were targeted a return and 7% were returning more like 12%, a few vintages that were targeting 7%, in the latter part as stimulus went away will probably return about 5%. So in the grand scheme of our platform, we're pretty happy with that Len, banks and investors have made incredible profits have been incredibly successful on our platform. It's not perfect, but has performed exceedingly well. And we're proud of it.

17:54
Okay, well, then. All right, I'm gonna ask it straight out of stock this down. 56% is not a misunderstood stock. It's a stock what people thought there was far more risk than we realized. Correct? Well, yeah, look,

18:07
I mean, all else being equal, I prefer our stock was going up. But the fundamentals of our business have not changed. Profits and growth have been the combination. Since we went public in December 2020. And since before that, so again, we're proud of what we're building. We think if the market doesn't appreciate it today, it's okay. We're alright to be understood. Because applying artificial intelligence to the to the business of lending is a fundamentally important change. It's good for consumers. It's good for banks,

18:36
because the average rate of 10 months of 2021 Vintage 2.91% I was not born yesterday. That's a really high number.

18:48
It's not hard number, Jim. Look, our whole goal is to predict exactly how much loans are going to default. That's the notion of a risk models to accurately predict

18:56
wish. I wish you and I slide I on that, but I guess I've done banks too long to know that 2.9 is way too high. And you know, what would have been better? I think even come on sit. Listen. Yeah, we got some 2.0. Don't worry about it, Kim. We're gonna syndicate them. We got a lot of buyers. If you say that to me right now, then I'll say the stock price is wrong. Do you have a lot of buyers for the stuff that's down 2.98?

19:21
Jim, everything Claire's in our system. So we our business is really healthy. We generated a lot of cash left probably 60 $70 million in cash last quarter. There's nothing going wrong with our business. That's cool.

19:32
I'm sure I have to be so tough, but obviously a lot of people have lost a ton of money. And if you can clear those loans, and you're that platform that we all want and that's a better company, Dave, that is a better company. It is. It's simple. All right. Get rid of the bad loans and the stock will go higher. Give her the 2.91 criticizing, it'll go higher. Alright. Thanks, Jim. Appreciate it. Thank you, Dave. Good To see if co founder and CEO of upstart gave their money back into the

20:12
coming up after an earnings beat for crocs is a time for the other shoe to drop. Kramer does some fancy footwork next

20:30
this is a heinous, complete, sometimes ridiculous market where nearly all the markets former leaders have been lined up against the wall and they have just been shot. So no one wants to own any of them. It is just incredible. But not every stock that's been destroyed and last six months actually deserves the pain. And there's been a lot of ton of collateral damage and create buying opportunities. Remember, we want real companies with real products, real earnings and real cheap stocks. Which brings me to crocs. The nature of these modern day clogs have become incredibly popular in recent years. I've got my own Go Eagles, you got it. You could argue this was a COVID winner because the stock shot up from around $10 A pandemic close to 183 changelist November, people seem to like Crocs and stay at home economy. That's what's really killed. All the COVID winners have been pulled last year including crocs, which is now down more than 70% from its highs, but beyond the sector rotation while she wasn't thrilled that the guy shelled out 2.5 billion in cash to stock to buy an Italian Shoemaker called Hey dude late last year because this is skeptical step part even though this is worked out well. But this company is doing great crocks report is strong quarter last Thursday monster earnings be fooled by 40% plus revenue growth and while their guidance for the quarter was mix the stocks now down 25 cents and reported in the mix had to do with Hey, dude being good versus regular crocs be okay. Now look at these levels of stock trades of five times earnings. So much makes no sense to me. Okay, it seems cheap. I gotta figure this thing out. So let's take a closer look at injuries is the CEO of crocs. Learn more about the quarter and what comes next visionaries. Welcome to Mad Money. Thank you, Jim. Pleasure to be here. All right, I tell him point point, point blank schedule. I like to read things with in the confines of the reports and listen in the conference reports not look at the stock price, because the stock prices are lying all over the place. Now, I know that you put up incredible numbers. All right. So I have to try to figure out what went wrong here. There was a paragraph with it. I thought it was boilerplate. Right? We you said, Look, let me turn to the futures this custom first court macro environment challenging backdrop of high inflation rising interest rates, supply chain disruptions don't become more complicated with the war in Ukraine. Ongoing shutdowns caused by zero COVID policy in China. Now, I've heard every single company say that why isn't this why did it crash your company?

22:44
Look, I I'm not sure I can fully answer that. What I can tell you, Jim is like we had a great quarter were great last year, I think was certainly getting lumped in with the other COVID stocks. But you know, unlike peloton that I think released today that lost a ton of money, we make a ton of money, right? So we made 600 plus million dollars in profit. Last year, we had a great, highly profitable quarter in q1. And we've given very clear guidance to the to the street that will make you know approximately $10 A share that share in terms of in terms of EBIT contribution. So we're highly profitable. We're growing, I think we're just getting lumped in with that, that rotation out of the, the, you know, those those COVID stocks, right, but But honestly, you know, we don't believe that's true for crocs who are 20 year old company, we've had a, we've got a much longer track record. And, you know, I think we've got a great future in front of us, which is going to be a growth future oriented around the crux brand. But also, as you mentioned, in your introduction, we bought another brand, which also gives our investors diversification.

23:47
Well, you you paid okay, you just talked about you paid your two and a half. Go for Hey, dude, but the amazing thing was, I know you haven't aged very long. But whatever the heck happened once it came under, underneath your your umbrella, hey, Jude is on fire.

24:04
Yeah, I mean, look, we bought this brand for two reasons. One, we could see in the marketplace, that it was doing extraordinarily well, you know, the compound annual growth rate on the brand for the last three years is over 200%. Right. So it's been growing really, really quickly. We also knew that it was really only in the sliver of the United States, it's really mainly penetrated down through the middle of the country, Texas and Florida. Right. And so there's a lot of people live in California and the Northeast, right, so we knew we could expand it around the country. So we could see the opportunity. The second reason we bought it, and look, I think in retrospect, when people look back on this, you know, 12 months or 24 months from now, they will say this is an incredible deal. The second reason why is to provide diversification because one of the things we've heard from our investors as we've grown the crocs brand, which is really concentrated in the iconic a clog. They were they were uncomfortable with the with the content Question. So now we go on to brands that are both gonna grow. I think it's an it's an incredible investable story. But but obviously we're getting kind of swept up in a lot of I think, you know, market dislocation.

25:11
I mean, the baby boomer felt that you have supply chain snags, because Hey, dudes made in China. And maybe people saying that, listen, if, if Tesla can't make them on China, you won't be able to make them more Well, how's the supply chain are there for you?

25:24
It's not bad, actually. So yeah, we, I would say, as a company, we're diversified. We're in Vietnam, or in China, we're in Indonesia. And we're in you know, other Western markets as well. We're many back to Hey, dude is predominantly in China, we've seen some closures in the in the first quarter factories closed for a week or so. But we're very confident in our kind of ongoing supply. So we're in a number of different factories that were diversified from a facility perspective. So I think, you know, look, we're looking pretty good from a supply perspective. And as we look back over the last two years, I think one of the things our customers would say, you know, our wholesale customers we sell to, we've probably one of the better brands in terms of managing supply during the COVID. And we've been able to do that because a product to pretty simple, right? If you're making a sneaker, this is 3040 50 pieces go into that you'd have to assemble before you can put the shoe together. But most of our products does three or four. So getting us up and running, and it's easier.

26:21
Alright, last 140 8 million in inventory seemed high to me. Could that be what people don't like about?

26:29
Yeah, that is a little high. Right? So right corporated hate mood. And as you know, you've got to mark up the inventory when you make an acquisitions that are a little elevated from an from an inventory acquisition perspective. But, but I think that's also a testament to success. And we've managed to get inventory on the water on its way to the United States on the way to our international markets. So I think that will prove to be a valuable asset in the coming months.

26:52
Well, look, I don't understand this at all. And I'll just be honest, I've been in this business for 40 years. This this price makes no sense to me on the fact that people just hate anything that they saw people wear during a pandemic. I got my Go Eagles class, I didn't have this new pandemic. I'm thrilled. Alright, that's Andrew, reseal, crocs. Guys, I don't know you don't get hurt deathbed buying five times earnings for real growth stock. Thank you so much for being on the show. netlinx back here, quick break.

27:21
Coming up, it's an m&a day in America. All the big deal details with a top brass of biohaven Next.

27:39
When stocks get too cheap, big companies start making takeover bids this morning we learned the Pfizer's buying biohaven pharmaceutical for $148.50 per share a huge premium from the AdPR price were close yesterday. I gotta tell you, I love this deal for both companies. Pfizer has been printing money with its COVID vaccine, but it's losing some major patents next few years. He's to bolster its pipeline. As for barley, and this one's personal. For a few years now I've been using the breakthrough acute migraine drug neurotech od t, which is a remarkable drug. And it's changed my life. It's one of the reasons why I've been a fan of stocking endlessly told you to buy it. Even it's been hammered in recent months. So what does it mean for the company going forward? What does it mean for the patients? What does it mean for the shareholders and Dr. Blood short, the Chairman CEO of biopharmaceutical Dr. Schwartz, congratulations on the sale. Welcome back to Mad Money.

28:26
Thanks for watching. Really appreciate it.

28:28
Alright, so glad you and I both knew that this market was much bigger than anybody realized. Were you surprised that Pfizer used the billion person number?

28:38
Jim, I have to say this is a great day for patients and shareholders because this continues our mission for patients to deliver the only all in one therapy nurse tech ODT for patients Pfizer recognize the value of this franchise that I think you have for many years now been advocating. And they are a global drug development powerhouse that's going to bring this drug to even more patients.

28:59
I think it's amazing. You were instrumental as as the chief spokesman for American migraine foundation, you were a great help to me because you explained to people early on migraine is not headache. Migraine is not had it, you said it over and over again. And the people who treat those who have migraine is having headaches demean them. Tell us what this drug does for people both before now and during migraine.

29:24
So Jim, this is the only on one therapy that can treat a migraine, acute attack and then prevent the next episode. And it's been a game changer in this area. I think you know firsthand. And thank you for your advocacy through the American migraine Foundation and the number of patients that have learned about neuro tech ODT, because you've talked about these novel therapies, and I think what we've seen is that this has grown into one of the most important class of therapies for people suffering from migraine. And I think Pfizer's deal today represents a continuation and put Take this drug in their hands to bring it to even more patients,

30:02
particularly women patients who have been, I think, very discriminated against because of they say they have, they're afraid to say they have a headache, or even though it's migraine, I've got in front of me something I took, I took Tylenol extra strength and took Advil, liquid gels. I took that Excedrin. I took all these they did nothing. I kick a drug called aimovig. I gave myself a shot today, but there's four days where I'm not covered those four days where I always, always, always have migraine. Got up Saturday morning, I knew I had migraine took Nortek 15 minutes later, no, no migraine. And yet how many days today just started studying migraine at med school. But how many?

30:42
My way I med school is something that we studied and for many years didn't have these type of tools. And what's exciting is that now we have something better. And what's remarkable, Jim, as you know is the number of people haven't heard of these therapies yet. Right? And

30:57
it has, I mean, now look, your quarter was stunning. But I keep going to people in men's shoes I always had to carry with me because I have to do it. If I feel like 15 minutes for it comes on I gotta pop when I saw I always have in my pocket. But flat. This was the first quarter where your sales really started reflecting and maybe the word is getting out

31:16
if the word is starting to get out, but Jim, when you look at the numbers, there are over 300,000 physicians in the US who still write for the older tripped hands and have not yet written for one oral CGRP. That's not acceptable. We have to bring the modern day a novel therapies to those patients and Pfizer really is the best company to build upon our work and unlock the potential of this franchise and bring it to the patients who are still in need.

31:44
Well, I want to compliment you you never once when you when you came on the show and you announced the deal. You never said that Pfizer might not ever by you didn't say that you did say you want to help as many patients as possible. You can't do it. You're too small Pfizer Can I think Pfizer globally is going to make this into one of the last 10 largest drugs in the history of the world.

32:06
I agree Jim, I think this is going to be one of the most important primary care drugs and in addition to that, it is going to change the way migraine is treated and set a new standard of care there has never been before one drug that can both treat your migraine and prevent the next and I'm really looking forward to seeing the team at Pfizer really encourage patients to learn about this and tap into the full potential of CGRP agents. Well

32:33
look I want to congratulate you Vlad Dr. Church because you've been the leader you've changed a lot of people's lives this is an amazing medicine and you deserve you and your shareholders deserve every penny that you got today. Thank you so much for being on Mad Money.

32:48
Thank you Jim. Good to see seen your advocacy.

32:50
Thank you. Anytime people, particularly women must be treated fairly and the discrimination against women would migrate stay with Kramer

33:05
just chill to get to

33:07
messaging to Joe Madison to house he's happy the

33:10
lightning round is coming up when bad bunny returns

33:22
it is times over the light rail that was a rapper goes on CNBC and it was his plan. And then the lightning round is over. Are you ready? Ski daddy.

33:33
Bill, Bill

33:35
Chill man I don't know about you but I can't skip a sidewalk at Chipotle.

33:40
But what do I do about avocado producer and distributor mission produce I want to be cap on avocados the up and down nature having known for 12 years in the restaurant business is too hard to gain. I want you to be very careful that even as I think they make a good point it's just too darn hard quarry in New Jersey quarry.

33:59
Hi Jim. How are you? Thank you for taking my call. Oh sure. Thank you for all making goalless investors feel calm during this crazy time.

34:10
That's what I want. Look I want people not to be complacent but calm they're two different things. Thank you How can I help?

34:19
I just purchased over time some stock in the stock to them but source Bergen and I wanted to know what you thought they

34:27
are very inexpensive, terrific, profitable company that I like very much. Good call by you. Women Alabama, William. Yes, sir. Go ahead. What's up?

34:40
All right. My question is about Funko. About Funko for around $6 back in 2020. My question is, do you think I should continue to hold

34:50
or that's a big game, maybe take some off the table but this promoter is making a lot of really good deals, but many of us were confounded that the stock went down as low As he did, I think it's gonna come he says a 10 times earnings but I always like the heck a little off the table and you have more than you're planning the houses money. Let's go to Kenan Georgia please Ken.

35:10
Hey Jim, I need two pieces of advice from you Sure. One how to how to grow the best tomatoes to EECOM ticker ACM?

35:18
Well, you got to get the best tomatoes, frankly, is requiring tremendous irrigation. I've got a great irrigation system. And that's what really helps me because it really is about water and sun. And what was the stock? Oh, eight. Oh, my God. This is a tremendous infrastructure play that has come down a great deal even though it's profitable. I think you should own it. And I think you should buy it. I liked him very much. How about Craig in South Carolina, Craig.

35:46
Hey, Jim, thanks for taking my call. Of course. Hey, this morning on the air, you said that everyone has one stock in their portfolio that they've been pummeled on absolute gem must must screens bleeding red with a farm holdings. They have earnings on Thursday. What should I do with

36:03
here if they have some secret weapon, some bullets, something's going to make it so people are less concerned about the debt it's by now not and never pay. That's what people worry about the credit risk. Maybe Max Levchin has answers. I know that there's been a lot of inaccurate stories about his company. Let's learn more when they report. Let's go to Matt in Illinois. Please, Matt. Hey, Jim. from Chicago, Illinois here. We love you. We love you, man. Thank you. Thank you. What's up? today? I think I got a hot one for you. What's

36:35
your take on this? Sure. The McKesson MC K Great.

36:39
Sales at a very low multiple not that much difference or Mercersburg. Except for actually better. Really, really well run company. I always felt that it's 13 times earnings and that to me people work at the company. I said Why am I not a McKesson? Let's cut and Rochelle in New Jersey Rochelle.

36:55
Hi there, Jim going on follower. Second time. Caller Thank you. Very. I'm very confused and perhaps you can clear things up. Sure. Brian. Black night closed today at $69.54. And it was recently announced that they have agreed to be acquired by ice for $85 per share. Well, the KPI has been downgraded by several analysts just recently Can you explain this

37:34
you know I can't I mean I saw the acquisition I said Well hey look, that's a good one ring the register. But you know there are a lot of stocks in the arbitrage worlds that are getting hit because people are because of the Twitter deal these guys are getting hurt. I don't want you to pull ran you got a great game. Let's take it and that lays the inclusion of the lightning round.

37:56
The lightning round is sponsored by TD Ameritrade comm coming up, inflation is feasting on the market. Can this food stocks help satisfy your cravings for profit? Cramer takes a bite next

38:16
you a first time investor he for inspiring me to get in the game your show is the best I am so glad John TV wants you to know that you have transformed me thank you Kramer.

38:40
Every three days of horrific selling sometimes it's just nice to see company word strong results that actually get rewarded on the spot for a higher stock price. But get Cisco by this time I mean to see us why why Cisco, the food distributor that supplies restaurants, hospitals, schools, and hotels. I've been a huge fan of this one is the reopening play that can pass on the cost of inflation to his customers by directly raising prices. Does it hurt that the stocks relatively cheap? Sure enough, when Cisco reported this morning, they crushed the sales and earnings expectations. Management also raised their full year earnings forecast just a textbook beat race as Cisco is taking share and taking names. That's why the stock jumped 6%. Today, it was just organic growth. How many surprises did the run still not at its high? So let's take a look and check in with Kevin Hurrican. He's the President CEO of Cisco very back from the shark and welcome back to my buddy.

39:30
Jim, it's good to be on your show again. Thanks for having us back.

39:32
Okay, so the first issue, Kevin is that everyone tells me that all the big restaurants are closing that there's real problems all over the country that people aren't eating at the office anymore. They're eating at home. Your Cisco numbers tell me either you're just killed and taken share from everybody where that whole description is wrong, which isn't.

39:53
The honest truth is I think it's a little bit of both Jim the market is proven to be pretty resilient from a food away from home perspective as the home micron variant exited stage left at the kind of middle to end of February the month of March was really robust from a food away from home perspective across the industry. But make no mistake, Cisco is meaningfully taking market share. Our stated goal for this year was to grow 1.2 times the market. And we far exceeded that growth target US versus the marketplace in the last quarter, Jim? Well,

40:22
I mean, you gotta tell me what your sales were. I mean, the sales growth here is incredible. And when you compare the sales growth, even to the pin pre pandemic, it's monstrous how well you're doing.

40:34
Now we have a strong beat from a top line to bottom line perspective, as you said in your intro, and our volumes, that's actually what we're measuring more than anything because inflation is helping our sales, our volume and our US business was up versus 19 In the most recent quarter. And Jim Well, we're excited about is that is well ahead of what industry experts had predicted for our sector. We still have growth tailwinds at our back we have international business as you well know and international hasn't yet caught up to the US and we have sectors that we serve like travel hospitality, business and industry which is caters to large corporate offices that are not yet fully recovered. So sales well above 19 volumes above 19. And we still have gas in the tank from a recovery

41:16
esteemed guest. I want everyone who runs a business to listen to what Kevin's about to tell you. One of the most innovative things I have ever heard is this shift to a six day delivery model. I don't know who came up with this, Kevin but it is brilliant. tell people how it works.

41:34
Yeah, we we like what we're doing here is we're expanding our workweek for our physical operations, while at the same time shortening the workweek for our associates, one of the most important things that we need to do being a supply chain company is improved the quality of our jobs. So we're converting from a five day scheduled work week for our associates to a scheduled four day work week, 14 hour days. And if they need to work overtime or want to work overtime, it's easier because it's a fifth day instead of a six day they have a better work life balance. But for us as a company by stretching to a full six day Monday through Saturday delivery, were essentially able to increase our throughput capacity on each and every day of the week. Provide restaurant customers with better service and gym, we're able to grow our business profitably with fewer physical assets. We can sweat our trucks, sweat our buildings, we will invest in new buildings, we will invest in new trucks, we've increased our throughput capacity, we've increased our ability to ship on time and in full to our customers. And it's better for our associates as well. So we're excited about it. We just completed that work this past quarter.

42:33
You know, as a customer, it's ideal. I mean, we always do, you can't have two days off. It's a six day operation. Murray knows that. Now, one of the things I love moving to Cisco trucks and parked parked in front of the are places I mean, they look they keep the engine running, that's fine. I don't play them. They're trying to keep everything fresh. This deal you're doing with carrier makes so much sense and electric pilot helping can be

43:00
there. We're excited about the work we're doing with our climate sustainability goal. Jim, we're the first and only foodservice distributor with a stated science based target that's compliant with the sbti initiative. And it has multiple factors. We will be electrifying our fleet, and also electrifying the trailer. As you said, we're shipping product on a tried temperature truck. It's got a freezer section or refrigerator section and a dry, we shipped millions of miles. And we can make a really meaningful impact in our communities in a positive way by electrifying our fleet. It's the right thing to do for our climate. It's also good for our business, we think it can create a competitive advantage. Our drivers love driving the electric trucks and you'll see an announcement for us from us soon actually on a pretty significant commit we're going to make in the electric truck as

43:46
well. If you do I know there's a comment I'm not putting up but if you do have a carrier, I had to like this. You know, they've got some really great technology. And they're very proud of it. And we got to show it off because we don't want trucks idling. Okay, but we do want trucks right in front because it has to be made easy enough to deliver this stuff to the restaurants. Now one last thing yesterday I was on the Tyson call And while certainly food is not soaring anymore, it did start kind of roll over a little bit. Chicken rolled over a little bit pork roll over b fold on over a bit. Are you seeing any relief at all because this country needs it?

44:23
Yeah, we're seeing significant inflation across the food sector as you well know. And I've kind of gotten out of the business of predicting when inflation will begin to normalize because I've been wrong three times. We've three times have said it's the next quarter where it's coming. We're working very hard at Cisco to lower prices for our customers. Jim That's what I could say. Being very aggressive on negotiating with suppliers finding alternative sources of supply introducing Cisco brand as you know to help save them money and helping with them with menu design. We can help restaurant customers understand alternatives to help them lower prices portion size on the menu in just generally speaking, helping that restaurant be more profitable through advice and counsel that we can give them. We expect inflation will begin to normalize. As you said, we're about to roll over right to meaningful increases from a year ago.

45:14
Well, look, I like the story. You know that I'd like this today better because I thought it was a very underperforming copy. And I remember you said you just watch it. You did everything you said. So what congratulate you that's Kevin Hurrican. He's the CEO of Cisco as well icon. All What can I say? I mean, there's always been more summer. Just for you right here made money. I'm Jim Cramer. See you tomorrow. The news with Jeffrey Smith starts now.