Mad Money w/ Jim Cramer - 08/16/21

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MAD MONEYを聴きながら合わせてこのnoteをみれば、様々な州の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！

窶皿ad Money w/ Jim Cramer: Mad Money w/ Jim Cramer - 08/16/21 on Apple Podcasts

0:35
Hey, I'm Cramer Welcome to Mad Money. Welcome to Kramer. We want to make friends on this train make your money my job is not just entertain but to educate and teachers Call me at one 800 743 CBC or tweet me at Jim Cramer. Okay, and not with the taper tape. All right. When it comes to things you should worry about right now the Fed tapering its bond purchases. I mean, honestly, it should be pretty low on your list, hence why I'm ripping the tape off my face with nary Oh what a pain, any tears webinars. Well, which is something I used to throw at my old hedge fund whenever I was wrong. I mean, mostly because I was also really kind of unmedicated on a day when the averages started week and then recovered the Dow ultimately gaining 110 points to record the SP advancing point two 6% that's not a big comeback to an all time record close. NASDAQ declining points represent party pooper. I understand why I am not that concerned about all this big chat. All everyone was talking about was how the tapering is happening sooner than expected how much it would hurt didn't hurt at all. I ripped it off supposedly bad news for the market. But that only drove the Dow up 100 points. I mean, bring one bring on the duct tape right. I mean, the taper talkers need some tape or tape. More importantly, I disregard this kind of talk because I take my cue from the birds who doesn't turn turn, turn to everything Turn, turn, turn, there's a season turn turn turn a time to buy the industrials, time to sell the banks a time to bid for health care's time to dump the tax term term. I mean a trade for every market under habit yet, why not get biblical? People keep trading in and out of these groups because they're afraid to miss the next move. That's what's behind it. So a season that might have been acceptable two weeks ago, like buying extremely expensive tech stocks was sky high price to sales multiples has been replaced with a season two by two utilities, the consumer packaged goods plays and the homeowners. Now there's a tendency to ascribe magical powers these rotations. You hear stuff like the NASDAQ's going down because the feds going to signal something this week about taper. So sell the semies or utilities are up big because bond yields are down because of the Delta various going up because vaccination uptake is down and there's a slowdown in China. So go buy PepsiCo, Procter and Gamble or Duke. Okay. None of this is stupid. But I think the analysts focus on the Fed is a textbook case of Yep, let's bring it out. Again. This is lazy thinking. It's like when I was a date when I was importer, they would look at the date book and they say Jim, go cover a probe of the rackets. It's so easy for money managers to listen to the Fed governors or regional fed presidents then try to divine what they might say, pray to what Jay Powell has been saying. Then you try to extrapolate extrapolate whether Powell might change his mind, and to what degree it is the perfect parlor game. There's just one problem. All this close reading of remarks from various pinheads makes no money. It's chatter. You know, it's like, it's like the game of clue, Chairman pal in the library with the duct tape or tape.

3:36
Okay, so if it's all about the Fed, what do we care about? Let me give you my list, right? If it's not the Fed, it's this. First of all, if I care about the state of the consumer, now, this is the big earnings week for retailers. I think American consumers are like hot coals with Congress throwing, canceling when a Kingsford that would be very good for Clorox. So when we hear from Walmart, Lowe's, Home Depot and target, we have to hope that they are killjoys who equivocate by saying, Who knows what the Delta variable bring? I mean, that's kind of the reason why the stock would buy air b&b, a company I absolutely love got polacks, the simple things look good, would have been a lot better. So memory retailers, when you report say the consumer remains flush. We aren't concerned about the Fed, we look forward to more people turning to work, but they'll still be spending a lot of time at home. And there's plenty to do now that we know the home is where the office, you stick to that script retailers and your home free. Oh, it has the advantage of being true. Second, I care about how much Afghanistan actually matters. Do we just abandon an important ally that needed our help? Or do we abandon a sinking ship? That was always going to be unsalvageable? Does the withdrawal matter to the rest of our foreign policy? Or was any a 20 year war a special circumstances? I don't know the answers. I'm going to ban Bonnie. But it matters because we've got an important strategic ally in Taiwan, where a huge portion of our semiconductors are made. And China keeps putting more and more pressure on them. I don't see Taiwan giving it anytime soon. Yeah, the government is pretty Possibly China, Chinese Communist Party, but a President Biden blinks. Who knows what could happen? For the most part, the big money is betting that this won't matter. We know that because less expensive tech stocks didn't plummet, they went up. I was incredibly strong all the all time high. It was the same doctor stocks did get hit, possibly due to the Taiwan connection. Oh, an apple don't trade please. Third, the stock market's saying that the Delta Varian can run its course, like it did in the United Kingdom, or even India, where people either got vaccinated or they rapidly got infected. My fear is that this could be wishful thinking, we got way too many anti vaxxers we're fighting for the freedom that gets sick. But Wall Street's shrugging off any restrictions as indoor activities as though they'll definitely be short lived. Thank heavens for regeneron and the monoclonal antibody drip that gets you out of the hospital fast, not to mention the binax. Now test from Abbott that keeps you at home so you don't spread the virus and that's very important. Both stocks should go best, by the way, in competence of the CDC and the FDA. I love those. Isn't that great? CDC, FDA and competent. I like that, because everyone else is free to say it, I guess I should be afraid. Anyway. For long term interest rates are going down is good for the goose nots, homebuyers and anyone else who needs to borrow money, but bear for the gander anyone in the business of lending money. So time the Bible in our time to sell JP Morgan maybe given that buying houses still pretty cheap relative to rent and mortgage rates are ridiculous as well. If you got enough cash for downpayment, by the way, this is just a fantastic time to buy some real estate. Honestly, I think almost any piece of property might be better than the vast bulk of stocks that fall, Midland low price earnings multiples are in and high priced earnings. Sales high high priced earnings, not sir earnings, but sales. These companies don't have errors. Those are the ones that people avoid. Now, this is a very hard Turn, turn turn, because it's out of sync with everything else except the idea that the markets gotten tired of absorbing all these money losing IPOs. And what's the safety of cheap stocks with dividends, more important buybacks. We see this behavior before when there's too much supply, but a stock glut only tends to be bad for everything. We've taken down so many new offerings that it's hard to remember from them from one day to another, although that's even more reason to stick with the tried and true. Six regular big cap stocks that have good dividends are now loved for their yields versus bonds. Johnson Johnson PepsiCo Bristol Myers, that kind of thing. Remember what I used to say What's that got to do with the price Jeremy's multiple Bristol Myers we just need to substitute Afghanistan WhatsApp scan it's got to do with the price. They're reasonable. Bristol Myers, nothing. Finally, because we're talking about important things like paper. Let's get really granular. Okay.

7:46
Jimmy chose dill pickles aren't as good as this sauce of which there is not better. Okay, maybe that's not as important as the taper tape. Maybe this just tastes like coercing vinegar. I kid you not. But it's more important than a tantrum any day of the week, especially because I simply can't get the recipe right? I got an idea made which is short the stock of Pinterest. Listen, all I'm really trying to do here is explain it to our many seasons to this market and did not scare you to not threaten you out of this market. Don't make it so that you sell good stocks because some chatter about something it's not gonna matter a thing do okay. But what's more thing, remember is that it's a rotation return. The market stays in no matter what because it's just got money. It's dedicated to stocks, jump from one group to another, and sit down finishing possibly after opening sharply lower the bottom line. Okay, face it, let's face it. The bottom line, if you really think the whole market is poised to get hammered because of the temper tape, whatever, tantrum, we haven't had a 5% decline 200 days. You shouldn't use that to gradually do some buying into weakness like we had in this morning. What a great time. And you especially want to buy when stocks getting crushed by a sector rotation as people are so so worried and talking endlessly about something that honestly should be no more to you than my bad pickles. Buy good sauce, or this. Don't worry. It will have its turn soon enough. says it all, doesn't it? I didn't go to college. It's stupid. terrarium washing please. Sorry. Like I Booyah. Jim How are you? I am good. How are you? Hey, thank you for letting me retire early. I retired to 68 by using your advice that I love because that's why I'm still out here at 87 doing this storm show. Great for an 87 year old let's just put that out there. All right, go ahead. How can I help?

9:37
I got a new acronym for you Dr. carps. What's that we're dash Roku supposedly affirm Robert nude PayPal and my favorite square gym. When's a good time to get into buy square?

9:51
Why you got a lot of baggage there. Those are all the stocks I read about Costco. I like square right here. Why? Because every time I think that they've come up What's the last thing that they come with? They come up with something else. And I remember when jamie diamond gave a talk and CEO of the big one to JPMorgan. And he said, like, why he basically said, like, Why cannot be square? I mean, talk about temper tantrum. I mean, I won't be square. Okay, sorry, you're not let's go to patrician Illinois, please. Patricia.

10:20
Hi, Jim. First of all, I think you're a terrific guy, and very knowledgeable. Thank you, for all the great advice you give us.

10:28
Oh, just a second. Just a second. I got to get my wife on the phone. She's been really, really helped me. It's a lot of family standard place. I made one comment. Nevermind, nevermind. We'll get away from that. Go ahead.

10:41
Several weeks ago, you hit on the CEO of skin skn. I wanted to see if you still think that's a buy. Yeah. What's

10:48
the executive chairman Brent Saunders used to run a company that we liked very much called our Oregon. And I thought it shatters spectacular. Frankly, I haven't used one of the spa treatments, I think go to a spa recently. And they were doing a scrub and they scrub my eye and then I spent a lot of money go in the eye doctor. Absolutely nothing. Okay, now, I'm saying this is it. Now you got to get some of this. All right, and put it on your ear so you don't have to listen anymore. Enough with the tape or tape. We don't even identify with workmanship. Here are the things that I care about more than the feds Kibriya bought prices. And I got to tell you, between this and the taper tantrum, always go with Jimmy dill. All right. Yes, because I am a big deal. And remember, there are many seasons to this morning. So don't be afraid to just God who by no means like we have at the opening today. Oh, Marcus, never doubt you got your chance on man tonight. App loving was one of this year's largest IPOs. But after recent volatility, could investors start loving this technology play again? Hey, why don't we bring on the CEO in the infrastructure package coming out of watch. He's gonna create some new winners on Wall Street. And I know which ones they are and the liquor business and continue to prosper amid the pandemic. So why don't we check in with not just trade here, Jim Beam maker Suntory to see where the industry stands because now you can clean up on alcohol. And that's just like the Delta variant. So I want you to stay with Kramer.

13:05
couple months ago we filmed a homework question about one of the year's largest IPOs a company called app Levin, which is a mobile game company that also makes software tools for other mobile app developers. This, by the way, is a great business. I told you that there's something going on here. But I also warn you to wait for the stock to come down because this kind of sliver IPO often ends up being incredibly volatile as traders brace themselves from more shares to hit the market. Notice they only let a little bit code the beginning. Sure not since then, weapons pullback from 81 to 55. No, this has gotten better. When you look at the quarter they just reported this company is doing incredibly well. They had 123% revenue growth for heaven's sake, while the stock initially rally 2.5% the next day quickly reversed and gave up all of its gains. Some of that's because Apple declined to raise its full year forecast and they have an odd forecasting method. Some of it is because investors are worried about Apple's new privacy rules that make it harder to do targeted advertising. Something really doesn't even apply to most of our businesses. My one concern is that the lockup when insider selling is about to end all the shares will become available for trading and a couple of charges over the course of the next. Not that near future. And that's never good news. If the stock gets hit, though, it could be worth buying witness given its incredibly strong growth and terrific margins, but do not take it from me. Let's check in with Adam frog. He is the co founder Chairman CEO of app loving to learn more about the quarter and what he sees going on. Or Mr. Brulee Welcome to Mad Money. Hey, thanks for having me. Jim said it'd be here. Well, I got to tell you, sir, many people come on the show. And they say they have a flywheel. And they don't mean it. Then I mean, it's like just a group of disparate businesses. But you've truly cobbled together a company that actually every business works better with the other. I want you to tell people about it.

14:49
Yeah, for sure. So it really has to do with we built the marketing platform for app marketing and monetization tools over the last decade. And then three years ago, we saw an opportunity to get into Build a games business that could get large scale reach and get us first party data, they could then fuel our software to become better for advertisers we work with. And that's exactly what we've executed on. Actually, you mentioned our overall growth was 123%. What we're most excited about or in our business is that the software platform grew over 250%. We did $200 million in software revenue last year, we're trying to clear 600 million this year. So it's all the pieces coming together. And as you said, making them better.

15:33
Yeah, it's important people know you're not some company is sitting there losing boatloads of money while you go.

15:40
No, not at all. So this is a great part about our business is that every incremental dollar of software revenue that we report has incredibly high margin, we really don't have costs associated with it. So actually, in the last quarter, if you dissect our numbers, we beat revenue estimates that were out there by about 30 million. And we cleared EBITDA estimates by about 30 million, the software revenue converts almost one for one to bottom line. And that's hugely impactful as we see tons of growth ahead of us for that software business.

16:11
Now there are these people who keep thinking that you Apple's new privacy rules impact you badly, but you have an incredible amount of what's known as first party data people stay at your site, I don't understand why people extrapolate that app, Levin's got to be the company's being hurt.

16:25
You know, I'd love to say we're skilled on this. But I think we got a little lucky. But we did have the foresight to know first party data creates an advantage and marketing software. And that's why we got into games, we now have over 200 million players playing our games. Every month, we've gotten first party data on hundreds of millions of consumers over time that feeds into the software paired with our machine learning that we really launched and executed on a year ago, the business is accelerating on all fronts.

16:51
Well, I want to talk about that machine learning because you made an acquisition axon. And it was the kind of thing again, I see companies make acquisitions and can't figure out what they were doing. This one seems to have really accelerated your your growth.

17:04
So accident actually was homegrown, built up by our engineering team. And really, that it came together last September, and the platform wasn't using our first party data before. So what we did was we started building this, these models that could become smarter at figuring out what app to match consumers up with. And that's accelerated the growth in the business every quarter since really outsized rates, quarter over quarter, actually, q2 over q1, we grew the software business sequentially over 60%. That's unheard of in software. first half of the year, we drove almost 2 billion app installs that consumers downloaded discovering great new content off of our platform. We're very excited about what lies ahead.

17:47
Okay, now, I do want people to I don't want to enthuse him temper because the stock has come down in the import a great quarter. But there are there is stock that will be for sale, we know that it's no sin. I mean, your company's been around since 2012. It's okay to have a liquidity event for people. But I do want them to know, it means you didn't just start two years ago or dumping stock, I do want people to know that there's a possibility that some stock will come in for sale. And that could make it so that people have, let's say a better chance if it does come in, if they don't sell then obviously, this is the bottom,

18:17
like 20% of the shares came lockup free on Friday, and you're still seeing low volume and rare little drop in there. And the reality is a company's closely held, I'm the biggest individual shareholder. And I bought last quarter at $60 and said around $60. And the other reality is our software business went from 200 last year to 600. Plus this year to we're confident we're gonna hit a billion dollars plus in software revenue next year. And the markets not even absorbing this high growth of a software business. There are many in the world at that scale at that higher growth rate. So as people start appreciating how strong our business is, you're gonna see this as a great value buying opportunity.

18:57
And one last thing I I we cover all the gaming companies, I kind of feel like that they're new, you know, when you submit a dentist you down and you download it. And now you really app Levin's kind of leapfrogged everybody, is that an accurate depiction of what other guys are doing in mobile gaming versus jus?

19:16
I mean, we hope so right. Like the advantage we have is we're not just building games and trying to make a business model from the games, we have this marketing platform that lets us monetize the data from our audience in our games. And we're giving consumers a huge benefit. We're helping them with their data, discover new content that they can go download and engage with. So we're driving up all parts of our ecosystem. And that economic advantage is massive, and in very fragmented and highly competitive market. And it's why we were able to grow the gaming side of the business zero to over $2 billion

19:49
in just three years. Well, that's just incredibly impressive. I was so glad that a call or pointed out to me there's so many new companies. This one is very exciting. That's Adam fruita. co founder Chairman, CEO of Apple, Inc. Thank you, sir. It's great to have you on the show. Thanks for having me. There's always valueless countries that are just doing so well. They're growing so fast, they're making money. It is hard to keep track of what our viewers do. And this was one where, frankly, I am in awe of the growth that this company is generating their base back.

20:20
Coming up can really be an infrastructure bill with some bite. Cramer goes off the charts with the bills big winners next. CNBC 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 contact with access to breaking news calls and digital networking experiences. The network and resources HR leaders need now applying to the workforce Executive Council at CNBC councils.com slash WEC.

21:09
Now the big bipartisan infrastructure bill looks almost like a sure thing, or at least as close as you can get to a sure thing in American politics these days, we are talking about how you can still make money from it. Now many of these stocks have already rally because this is very clear who benefit. But that doesn't mean that they don't have more room to run. We're talking about nearly a trillion dollars of spending on roads and bridges, rails, electric grid broadband mass transit ports, among many other upgrades. Honestly, we should have done this years ago. We know that but how about this better late than never. The thing is, there's over a decade of spending in here which that a decade not a month, not a quarter, but a decade, which means major long term gains for all the companies that compete at the federal trough. And like I said before them, they've already run Don't be surprised. So how do we figure out the infrastructure plays with the most upside from these levels? Alright, to answer that, we got to go to Bob black. That's right. Bob line is the founder of explosive options dotnet as well as being the brain technician in the all star duo behind street comms trifecta stocks newsletter, he's also the author of know your options and he's made a lot of money over the years has alright well why don't we start with Martin Marietta materials? That's the rocks and asphalt company that's maybe the most straightforward winner from this infrastructure package we've had him on I love these guys. When you see $110 billion roads bridges a decent chunk of that is going to actually go to this company no one knew the daily charts been on fire lit like points out there you got a solid pattern of higher lows we love this right higher lows and higher highs action recently forming all boy Yes, the W that so many of us crave and that's followed usually by a very big bracket. Now once you look at this line called the chaiken money flow kind of look, this is not perfect. This is it. This is like a Rothko, it's an indicator shows you whether big institutions are buying or selling you see strong money flow here over the past couple of months. On the other hand, the RSI or relative stock index or bottom it shows that mark Mayer is now in overbought territory. Oh, now that could often signal as a top right maybe one up to par to best Sometimes though, overbought stocks simply stay overbought when they're really good stocks. Is that possible here lying lies at Martin Marietta has been rally on heavy volume. And so you take a look at the volume right now I know that it looks like until you go, you know go like that. Look at that there's low volume right there rather than heavy volume, what you might want to let the stock cool off short term and that's always possible lag things. This is a $300 name that could run the $500 so what you would do probably freaks people out if it goes below that. held to that by it. I don't play me want to wait for a pullback all these might want to wait for a pullback. No, that's not fair. Because there's a rail that you might want to go right now. Next up, dear. That's right john deere reports later next week, every news viewers a company that makes farm equipment but they also have a construction equipment business that could benefit enormously from this bill. That's one reason that stocks been absolutely on fire since mid June. Just like Martin Marietta deers got bullish money flow and relative strength index is overbought Okay, so we'll get to this chaiken money flow amazing. relative strength index is overbought here. Lange says you should look for the stock to make a move past earnings. If we get any kind of dip. He thinks it's a buying opportunity. I totally agree. I worked on this company because the food stamp story this week in Quebec a rough new high roughly 17 points here. This is my favorite. Okay. I just went I did the work on it this weekend because of the food stamps. Remember Biden's upping the amount of money for food stamps? It just keeps coming back to do your road construction. Your I haven't gear? Yeah. Can you believe it? I can actually operate it. I mean, what a simple machine right now how about Union Pacific, The Big West Coast railroad which I cannot operate. These guys benefit from the $66 billion in rail investments and the 17 billion for upgrading our ports and we got an enormous backlog. On the west coast not anything it makes it easier to import goods means more cargo for Union Pacific if you've ever been after you know, it is just a staging ground for Union Pacific line points out the stocks been trading in a box since March. Here's the box. Okay. Now, that's really fantastic. Why? Because when it breaks out it is going to break out big time. Meanwhile, volume trends have been bullish. We like to see the volume pick up okay. That means the stock rallies tend to route at high volume. Remember, the volume is like a polygraph. It lets you know whether or not a move is telling the truth. There have been a lot of line moves of late. Then there's the moving average convergence divergence. We always call that the MACD. That's an important momentum indicator that helps charters detect changes in a stock's trajectory before they happen. You don't need coincidence right you need before and you missed this case the MACD recently gave you a buy signal ratio. probably hard to see if the trick my word for that's where the black line crosses above the red one.

25:57
Maybe Alright, and this one most reliable tell us out there. Plus the stocks been able to bounce off its 50 day moving average. Oh man Do we have a lot of it's blue line, held it held and held it? why it should have been nice for support. down about seven bucks from your people, by the way didn't even like the quarter of Union Pacific. I want them back one member to self book Union Pacific. If you're interested, we can break out of its box pattern by closing above 229 he expects the stock to make a run to $250 never they'd buy back a lot of stock. I love these guys. Yeah. Listen, it's pretty. It's just a really well run company. Alright, next speaker will run copies. We can't forget about Nucor, right. That's the best one steel maker in the world. I want you to take a gander at the weekly chart here. Obviously, when you spend a trillion dollars upgrading the entire country's infrastructure, but what happens it requires a lot of steep. That's insane. It's like a tech stock has a lot of steel. Hence why the stocks been way hot lately. Lange thinks this is a situation where terrific rally on strong volume is pulling in more and more buyers, even as the stocks already up 133% year to date. Now this is currently $124 stock, but I could see it going to 150 and then maybe 175. Wow, I think he's right. Fabulous moment for new CT. They weren't doing great even when this infrastructure package looked like it was dead in the water. So just imagine how well they do. If it passes then just for a little commentary. When new CT does well, it doesn't do well just for a year it does well for multiple years. That's been the style. That's been the strategy. stay long. Finally, this last one might seem out of place. American tower. Yeah, it's coming out wireless towers over the wall. What makes American tower infrastructure stock Okay, as it's currently constructed. The bill is 65 bill for broadband upgrades. And you gotta expect a lot of that's going to be in mobile broadband. That means American tower should be able to cash in all the spending over the next decade. Hey, you know, this one's not so bad. Look at this. The daily chart all Merkin tower has made a huge winner in the past year. It's one of the strongest performers the communication space over the last five years had a new CEO maybe that's what people are worried about. As Lange sees it. This is an amazing chart. Not a lot of work can candlelit. The stocks been consistently strong since bottoming in March, and it bounced back hard every time there's a dip not long ago and broke into our pullback to its 50 day that's the blue, right moving average. And then it rebounded almost immediately, but it's still got some room lag. Notice the volume trends here have been positive. I questioned that right at the end, but he says positive. And unlike many of the other infrastructure names, the stock doesn't look overbought relative to the this is the RSI so it's not over this line that would make it overbought. Last Friday Merkin tower closed above its 20 day moving average. Now we've got a tiny bit of follow through today at $283. This stock is six bucks away from making a new high. If it can get a little momentum going. Lang thinks that you run the 330 and the Roth in your future. And then the 350 these are amazing price targets. Here's the middle line doesn't flow around. These price targets are not financeable the bottom line even though infrastructure stocks have already run the charts is interpreted by Bob lines, just that many of them could have a lot more upside. Especially Martin Mayer, Union Pacific Newport and American tower. I think he's got a real good point I'm throwing in john deere. I think john deere is gonna be amazing. Hey, Eric and Delaware peace Ark.

29:06
Bujar Mr. Kramer. This is farmer Eric and Delaware. I would like your take on empty materials. I'm on wondering why they have to continue to ship the raw materials and the rare earth materials to China back to the other states. Well, they're

29:22
going to change that they're committed to doing that. Now I have been critical one point because they had so much stock for sale, but then they demonstrate that good a good quarter. And if they can bring it back to here, then I think you have to own the stock $6 billion stock. It is still the best way to play the market for the kind of materials that we just don't have enough of How about that? I don't want to quote my magic materials. But it's it's let's just put it this way. It is the rare earth play of our rare earth play. Now many stocks standard benefit benefit from the infrastructure bill coming out of Washington, but the chart suggests go from Martin Marietta Union Pacific new core in America. Ours the best. And remember, I'm saying Dears, good. Now much more money at one of my absolute favorite companies from Jim Beam, the pinnacle vodka. What does this Pierce business look like as the Delta variant begins to impact the great reopening? I got this visit with the CEO of Suntory, the Japanese company, then how do you know if the stock price is too high or too low? Just right. It's like Goldilocks. I'm getting my strategy for you make some major moves. I think you're gonna like lawyer calls rapid fire. It's a nice addition to the lightning round. So stay with Kramer.

30:43
What happens to the liquor stocks now at the great reopening has been interrupted by the great reinfection. Given that the Delta variant is spreading all over the world. We need a more international view here. I'm talking about the Suntory group. That's the huge Japanese beverage company. They've got everything from premium liquor brands to beer wine, booties, bottle water, soda, and energy drinks. Now centaury doesn't trade here. One of its subsidiaries does trade Japan. Last week, they reported the first half results and they were magnificent. They had 9% revenue growth. Operating Income was up 33% year over year. But with the Delta variant totally out of control. Can those numbers continue on with the new delivery services? Will people just drink more at home? Let's dig deeper and talk about the company's incredible green initiatives too. With talk Minami. He's the president and CEO of Suntory Holdings Limited mission Minami Welcome to Mad Money. Thank you for having me. Um, how are you, Jim? Well, sir, I have to tell you, you have some of my favorite beverages. And I think you probably have the biggest cash cow have ever in liquor, and that is Jim Beam. And I wanted you to start by telling us how well that's selling around the globe, because it's universal.

32:03
Yeah, doing very well. Despite that, the COVID is still going around in the world. And the people drink, you know, at home, as well as the nowadays on premise activity has been, you know, resuming because of the rollout of vaccines, but are still on productivity and productivity is stays in the world. And then in the, in the, in the, I think that creates still uncertainty to order the future. And so, up until now, we have been doing pretty well, but because of uncertainty, we stay very much, you know, calm and make every effort to increase profits and the cells in the world, not only North America, my concern is that Japan has been affected because of the very slow rollout of vaccines in this country.

32:59
For Is there a chance at see we have great delivery services now in our country. So if you wanted to order alcohol doordash will bring it to you. I wonder whether people hunker down in Japan because of the outbreak and drink more of say Yama kazi, which is amazing. You have some of the best, you have the best single malt Sir, I have the big love Floyd fan, but the Japanese single mortes bolts are extraordinary. Wouldn't people just have them at home enjoy them?

33:33
Well, as a matter of fact, Japan is still under deflationary scenario among consumers. So people drink less supremum in this country, whereas North America, Europe, consumers drink premium spirits at the home. So that's a huge difference. So we want to sell more Yamasaki and but the market has a kind of supply a limit because we didn't produce more than 15 years ago. So it's a limited supply, by the way.

34:08
Now, you have taken I think, a leadership position in environed environmental issues. I mean, you're doing something that's rather extraordinary. you're targeting 100% renewable electricity, not by 2030 or 2050. But you're talking about doing it by 2022. You are only a third 30% last year.

34:33
Well, I think that that's a right move by making use of renewables much more, except the maybe Asian countries that's in correctly, including Japan because Japan and Asian countries that rely on still but the coal burn and field burn gas burn electricity, but other than this region, I am very much confident that we can reach out, you know, neutrality there soon. And we have already switched to Dr. To the Dr. renewables in North America already. and Europe.

35:15
So we've been doing pretty quick to reach out that the goal. And even though I have mostly glass bottles in front of me from your great company, you have taken a leadership role in plastic. Why is that important for you?

35:31
We are very much concerned about the biodiversity in oceans. And that's a key point for us to contribute to the world. And we brought the new technologies to resolve a lot of issues of plastics, and now only, you know, by ourselves with, together with our partners with the across the industry. We want to resolve the plastic issues ASAP. And they cost a lot but unless we do that we will be kicked out from consumers I'm

36:05
sure well, I greatly appreciate your company. I did not know candidly all that though. They're all these great brands were owned by you, including hornitos, by the way in sales, a fantastic to fantastic tequilas, but thank you for everything you're doing for the environment, which is really what I'm going to remember Suntory for when I have one of your fine drinks. Maybe even later this evening. There is that is talk me Nani is the CEO Suntory a great company. Thank you so much, sir, for coming on, man, buddy. Everybody's back.

36:38
Coming up next. Let's make money together. What do we got Kramer's bringing the thunder and answering your burning questions in today's edition of the lightning round?

37:02
And then the lighting rose or are you ready? Today in California or for cane cane kid? What's going on there? More than ever, though, with the continued trend of secondhand apparel and resellers running low on stock? Are you a long term buyer of the real real after last week? No.

37:23
Matter of fact, I am actually I want to take all these places that do close let me crawl and Rent the Runway and start thinking you know what, we got too many of these guys. I just really feel that way. So I'm gonna say no to real real. Even though my wife did the thing. Let's go to Devin in New York please Devin Cramer bull Yeah. What's up? My question is about mine. ticker and drums. I thought it had a future but right now it looks like the past. I am a believer that this is a great spec. Okay, two bucks back. You can do that. Remember, stocks can go to zero. Let's go to Jeff in big Missouri Jeff. I'm calling about the buy now pay later company that just think that huge deal with Apple. I'm calling about a firm holding both. Max Levchin is the pioneer in this group. I think if the stock doesn't get higher, he'll sell the darn thing. I like him. I like a firm. I'm a buyer right now we need Alicia in Massachusetts, Alicia.

38:31
Hi, Jim. I love your show. Oh, thank you. Miko Why has the share price dropped over $100 since July 23. and is now a good time to buy it on the web. We now

38:43
have competitors to Fair Isaac. And I think that that's a problem. There's other companies that are coming into the business, and they've got a better way to do loans including Yes, upstart. So I am not a fan of Phyto theorizing. Let's go to Cathy in Washington, Kathy. Yes, you bet. It's Jim more than ever.

39:10
Okay, I'm a fan of pup work. I'm an owner of work. And they've been going down for the last cup last week or two. Right? And I'm wondering that this is a good time to stay invested Kathy. I

39:25
actually covered this kind of stock at the top of our show you here tonight and this is really important. This happens to be exactly went out of favor about two weeks ago, but Hayden brown does not go out of favor. She's extraordinarily good. So I think you should hold it for the long term. I'm gonna go to Jared in Washington, Jared.

39:44
Capital capital to the gun the other guy I haven't had one lately. What's going on? Jim wanted to get your thoughts on Jonathan drops birds butterfly network.

39:56
You know when I first heard about this, I happened to be with a doctor who loves the product. And I thought it could be a hit but you know what it's just another one of those companies that came at a time when there's too many companies so I'm gonna have to say there's got to wait till people finish selling and I don't know when that is but it's certainly not your now let's go to was in Colorado was

40:19
great Kramer this this sign billions in contract for their 5g bill Do you see a

40:29
deal and four deals with other companies to finance the 5g

40:35
Charlie Ergen runs that was ways and was with sorry. He is so smart I would never bet against the guy even though I can't see a single reason though on the stock other than the fact that Charlie Ergen runs it. And that legem is the conclusion of the

40:55
show is sponsored by TD Ameritrade comm to make sense of the day's most critical market machinations in no time flat. Stick with Kramer for a special no huddle. Next.

41:15
You aren't super first time in Turkey for inspiring me to get in the guinea show is the best time for that junk TV wants you to know that you have transformed me. Thank you Kramer.

41:50
Whenever you're trying to figure out what a stock's worth, you have to ask yourself, what's in the stock and what's not in the company. If you want to pick individual winners need to have a view of what a given company can make at any point in the business cycle. So we'll give you an example. What's more expensive, Nvidia the chip maker that sells for 50 times earnings are Nucor, the steel maker that sells for six times earnings. At first glance Nvidia seems wildly expensive versus Newport. But when you look deeper, that's actually an illusion. Ethel Nucor stock, first of all, just jumped 40% last month, there's a lot of good news, it's already baked into its share price, right. Meanwhile, Nvidia has been consistent, I'd like to think there's never enough good news baked into that stock. But that's a little guts company just as so well, the men of the circumstances. So I often want to take the what's in the stock part off the equation of the when it comes in video. But what about the more important part of the equation? What's in the company? When you see something like invidious side for 50 times earnings, that usually means when we look back on this moment in the future, the stock will turn out to be cheaper than it seems, because the earnings will probably come in better than expected. It's probably in the 10s, though much cheaper than we thought. When you look at it through the rearview mirror, I think you'll see them when the company reports on Wednesday, it's exactly what's gonna happen. But Nucor, it's the exact opposite. As a steel maker, this is a classic boom and bust cyclical. The kind of company that's totally hostage to the strength of the economy, when it stock trades is just six times earnings, that low multiple usually means businesses about to fall off a cliff, meaning the stock will end up looking expensive. In retrospect, if steel prices collapse, the real model could be 20 times earnings. Now, if nuclear was such a well run company, then the risk would be worse, which is the situation with the highly leveraged Cleveland cliffs. And remember, I, I think that the Nucor stock price doesn't adequately reflect the infrastructure bill. I expected enough year for this. So in other words, what's what the company can do has been extended by the infrastructure bill. Now, there are all sorts of judgments you can make using this kind of thinking. The banks will have low multiples, but they can be very deceptive, too. I know many think Morgan Stanley stock has gotten ahead of itself. It's up 51% for the year, he trades 14 times earnings. I look at it differently. To me, Morgan Stanley is no longer traditional investment bank. It's more of a wealth advisor for all sorts of demographics. That's a better business than backing. By comparison. The other big investment bank Goldman Sachs, now sells for just seven times earnings, even it's up 55% for the year. Yep, seven times earnings. Isn't that just like new core, but what more flexibly? The business will be worse next year. Could be might be bargain. Or how about construction, Deere and Caterpillar both traded 21 times earnings, but I'd rather have Deere remember, Bob likes that that's a better chart. But why because it beyond infrastructure. It's got agriculture, which is a great business thanks to expanded food stamps and high grain prices. Caterpillar Scott mining is very strong right now and infrastructure to but that last quarter simply wasn't up to snuff. If there's a downturn cat will probably get hurt worse than deer. When you do this exercise. You're really trying to figure out what to what to avoid the kind of stock that looks cheap now, but wouldn't be very exciting. Benson when we look back at this moment, 12 months from now, hey, micron stock looks so cheap right turned out to be expensive as the earnings look to be peaking. At the same time. We're also bargain hunting at all time looking for stocks that seem pricey but will turn out to be good values when the earnings come in better than expected. So think about that before you buy or sell anything. You don't want to throw away a perfectly good stock just because it's got a high price during is moldable. At this point in the cycle, I'm more worried if it's price to earnings, quotable is low. On the whole, the market is not that stupid. So when a stock looks very cheap, it's probably cheap for a reason. I like to say there's always a bull market summary. I promise try to find it just for you right here on Mad Money. I'm Jim Cramer. cinnamal. The news with Shepard Smith starts now.