文字起こし Hostess Brands CEO, Utz CEO & Zebra Technology CEO 5/13/22

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

Hey, I'm Cramer. Welcome to Mad Money. Welcome to America. I've got my friends just trying to make more money. My job is not to say entertain but educating teachers with Call me at one 807 Three CNBC 28 Jim Cramer. The market should have bounced hard today because interest rates were down and there's no real bad news. Instead, we got our usual crazy swoon before decent recovery with the Dow sinking 104 points kind of a victory as to be dipping point 1% and the NASDAQ was really been registered actually inching up point oh 6%. Lately what we've been doing at the Charitable Trust, which you know, if you remember, the Investing Club is high grading the trust, taking up positions that have a lot more risk and swapping into lower risk stocks to better fit the current environment. We're still selling the high risk names that don't work and it is painful. But we want to be very careful to buy stocks with stories that can handle a slowdown. We ended up selling some long standing underperformers getting out of one completely again incredibly painful, because a good portfolio manager never sells his winners to fund his losers even if it's embarrassing. You've got to give the losers the boot. But we're not complacent either way. We are very worried about the wealth discussion. For instance, in crypto, we hang our heads on the ones great Fang stocks, but we can never stop looking for opportunity because that is what Mad Money is about and it is what it will always be about. That's why tonight I'm going to break form from the incredible negativity and introduce Gavin Hattersley to you Gavin's a beer man, the CEO of Molson Coors, who in just a few short years has turned his sleepy enterprise into a profitable growth machine with aggressive long term growth targets. You know, my mantra, it's fine to buy stocks of companies that make real things generate real profits and return some of those profits to you via dividends and buybacks as long as you can get those stocks at a reasonable price. As for Molson Coors, we're doubly blessed here because people tend to drink more beer in a recession. And this product lineup may be one of the most exciting of all the industry, including a new product he is introducing on the show tonight that I think could be the drink of the summer. Earlier today. I got a chance to chat outside, with Gavin Hattersley president and CEO of Molson Coors. Take a look. Gavin for years, I thought your beer and your drinks were sleepy drinks. And then I saw that quarter. It's anything but how have you made this happen?

3:07
Jim, thanks for having me on. Look, we started our revitalization plan two and a half years ago, and we're seeing the benefits of it. Now. The objective of the revitalization plan was for us to drive top line and bottom line growth at the same time and we did that in the first quarter. But how

3:22
is that possible? You're up this is these are old beers so to speak. Now they're my generation. How did they get to become the new generation,

3:29
the marketing team have done such a good job differentiating Milan and Quizlet they're still a staple lots and lots of people drink like beers and they drink balanites and Quizlet these two brands are as healthy as they'd been in our longtime gym. They both grew net sales revenue last year for the first time in a very long time. Unbelievable. And they and they grew in the first quarter as

3:50
well. Well, you're too humble. I know you're a beer guy who took that but now let's break news. This is the drink that I'm drinking this summer because it tells me that I am a trendsetter I missed the truly the white claws better right?

4:03
This is a great brand. This is the number two brand in the Coca Cola portfolio in the United States and they've trusted us with launching the the spiked version of it. We are launching in June next month. In fact, this is the very first time I've seen it in the in the in the outside world. And the orders for this brand are off

4:24
the charts or thrive on a rock so how do I do it? How do I drink it

4:27
you drink an ice cold straight out of the

4:29
care ice cold now when I'm doing that this has been my favorite and you know that I told you at my bar anything Topo Chico you can't keep on the shelf. Can that actually challenge this?

4:39
Well they don't put it in different places. Okay, that's a that's a hard seltzer in this is a this is a full of flavored flavored malt beverage. All right. Different consumers. This one's squarely in the seltzer space. This one is in the in the flavored malt beverage space in

4:54
the meantime, I guess I should be drinking is busy but they got a lot of competition in this group.

4:58
It does but it's a it's They're busy and Topo Chico are the fastest growing large hot sellers in the marketplace. Topo Chico is number four versus number five. Both of them are growing both of them taking share.

5:10
Let's take talk numbers for a second. These are winning brands. So what I want in the liquor business, I know I want to put money behind the winning brands, but at the same time people say, hold it, that's gonna hurt the quarter. How do you compromise next quarter I want you to spend spend, spend, but you got to deliver.

5:25
We are we're going to deliver for the full year We reaffirmed our guidance, we said we're gonna grow our top line, but single digits, we're gonna grow our bottom line, high single digits, we're launching this brand in the second quarter, we want to make it a success. So we're gonna be putting marketing money behind that. At the same time. Quizlet and Miller Lite, we want to feel the momentum. They're both gaining share in their space they've gained share for any number of quarters in the over the past few years. And we want to keep keep fueling that momentum. All right, Gavin,

5:52
the skeptic in me says, Wait a second, you got too much debt? How can you grow?

5:56
Jim, we've taken our debt down by $5 billion. Over the last five years, we've taken it from 12 billion down to six and a half, our leverage ratio was pushing up against five times it's now just just a notch above above three, we think it will be below three by the end

6:13
of the money. Now, a lot of people don't understand the broad breadth of branch. You guys have the Bible go to Europe. If I go into London, what would I be drinking that years?

6:23
I think we've got the best of both premium innovation that we've ever launched. It's called maddrey. It's a Spanish brand. We launched it last year in the on premise, notwithstanding the fact that on premise was was open and closed. And we've just launched it in the off premise. That brand is going to be Big Jim, it is doing so well.

6:40
Well, I also know I'm a big believer. premiumization I know you are too. I got a bottle this five trails. Now I am a single malt guy if I have to be. What are you doing in that brand?

6:53
You know, when we when we launched the revitalization pledge and we wanted to go beyond beer. And five Trail is a wonderful whiskey. It actually won double gold in the whiskey festival in San Francisco. In its first year, it is very hard to get that we think we've got a winner there.

7:11
Now. So on record month of sales and more I'd never had zone merging growth. What does that it's an

7:18
energy drink. Energy. It is and we've probably not I do think we've, we've we've launched it's the fastest growing energy drink in the space right now. We've launched it with Dwayne The Rock Johnson. He's

7:34
he is so he's money. That guy. You see a term on it? Yeah, Dad, I have dynamite. It's very

7:40
good. Yes, it's very good. And he's not just a celebrity endorsement. He actually got a stake in the business big steak. And so he's a partner with us. And it's it's early days, but we're the fastest growing energy drinks out there.

7:52
That's very good. Okay, now look at this. I say Oh, my God, this this cardboard cost so much money. These beer companies, they the cans, they all got to gather this stuff inside. It's starting to cost a lot of money. The raw costs are going crazy. What are you going to do?

8:05
Well, Jim, we've had a really good hedging program for a number of years now. So whilst we're not obviously immune to inflation, we're I think, in a much better place than some of our competitors. And we're certainly in a better place than we could have been. If we'd been if we'd been unhedged. It's a robust program, very sponder. We've, it's well hedged.

8:25
Let's talk about the economy. I'm starting my show with you, I'd never do that. But one of the reason I do is because I hate the market, it's an awful market. Because people think there's going to be a recession. I tell people that don't believe me, but I've been through enough recessions to know people do not see stop drinking beer and recessions.

8:42
They do not. Sometimes they drink more. We've actually got the perfect portfolio for it and we're not seeing it yet. We're not seeing trade down. But if people do trade down, we've got the great ports. We've got economy beers, we've got premium light beers, and we've got about premium beers. It's it's all there for the consumer.

8:57
One last question is a personal preference. I get to do it. It's my show. Most of these beers tastes like Cheerios. Okay, why is this yours? Not tastes like Cheerios. This beer has been around

9:07
for 20 years. Belgian weren't invented in Golden Colorado and in the off premise, doing very well in the on premise off the charts now that I'm sorry, but this brand is growing for the first time in a couple of years

9:22
and you still off premise and on premise means that if we ever slow down the economy, you're gonna make money in. Exactly, that's what I like. That's Gavin Hattersley President CEO Molson Coors beverage company. Remember the symbol top? Stay with Kramer?

9:46
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 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 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.

10:48
Despite everything it's cool enrollment in this market even at this like stock and still rally when imports a good quarter and that's good news. But what just happened with affirm the Buy Now pay later powerhouse that's going from a market darling last year to the markets redheaded stepchild in 2022. You know this was $176 stock last November and it had pulled back to $18 and change at today's close for that one wild day. After setting a new all time low this morning was very boring. The stock ended up soaring 23% In anticipation of earnings. When in firm reported if the close the bars proven right with the company beating expectations across every major line item. They even posted a small adjusted operating profit and a surprise even better firm gave solid guidance for the current quarter. And that's why the stock surging and after hours trading. So can this rebound continue even in the face of a market that's been totally hostile with financial technology. Let's take a closer look with Max Levchin. He's the founder chairman and CEO of a firm holdings for more about the quarter and where his company's headed. I can't help but add that Max is from Ukraine, and has worked hard to deal with refugees in this terrible and entirely unnecessary tragedy. Mr. Leptin. Welcome back to man money. Max, I'm looking at these numbers. And it tells me that not only is buying now pay later, the way that people want to buy things. But the actual worries that people have about people buy now and not paying seem to be completely misplace. Judging by some of the deals you're signing and the numbers you showed me this evening. Tell us about it.

12:23
I think the news fro affirm is that the US consumer is alive and well. They're shopping they're buying they're paying their their loans, at least to affirm quite well. And generally speaking, things are going according to plan. The upheaval of stock markets does not seem to have an actual impact on our underlying business, which is performing really, really well.

12:45
Well, I think that you're being too modest, I'm seeing numbers of new customers that are frankly very difficult to fathom, talking about going to six figures to seven figures is a lot of this this amazing Shopify deal that that's renewable that I know happens to be working very well for my friends at Shopify.

13:07
You know, we are fortunate and very, very, very committed to have all the wonderful partnerships. It's not just Shopify, although that was a fantastic deal. And we literally just announced that we've extended by several years and brought several new products. So it is wide. And they've been fantastic partners to us and nothing but amazing things coming out of that. But we also have a very long standing relationship with Walmart, which has done phenomenal things for the company. And of course, the newest one, Amazon. So we've been the partner of choice, if you will, to all these really, really great companies that fuel the American e commerce. And we've done well there. That's where all that growth comes from. That said, we also have a fantastically well growing program we call MSS. It's a merchant cell service, literally any small merchant on the internet can come join me for a network and help their buyers by now failure.

13:57
I want people to know how to do that. So notice a small business person should be listening to you and go and figure out how to do this. You go to your website to find out more.

14:04
Yes, please do. It's right there for versions.

14:07
All right now, one of the things that people are worried about is is loss ratio and chart and late charges. First of all, I read an article said you late charges and I said Are they out of their mind. That's what Max said he doesn't do late charges. Second, your artificial intelligence is proving that you don't have a lot of people who don't pay.

14:27
You know, if there's one thing I could teach the market is that we are in fact, as good as we say we are we have never charged a penny of late fees. We have never done anything tricky or evil like deferred interest or all the nasty things that this industry is famous for. We are the exact opposite. We stand for transparency, for honesty, for helping people be responsible adults and buy things feeling that they know exactly when they're done paying them off and not feel like they're trapped in that circle and all the awful things. We are fixing that problem for the US. That's why we're successful. That's why consumers come back. That's why 81% of our transactions are repeats, because people actually like an honest way of doing credit. That is the Alpha and Omega of what this business has been 10 years, and we got many more to come of that exact,

15:14
but let's deal with cost of capital, some of your competitors, I should really say, some people in your area, okay, are stuck with some loans that I don't think they want to be stuck with. But they say they're fine with it. How do you feel about loans in the balance sheet and cost of finance.

15:30
So if you look at cost of capital, for us, it's still lower than it was in 2019. And so the rates that are changing as the Fed tries to battle inflation, have not been a real impact on cost. If you look at our delinquencies, and all that information is in our sample that we just published. It's basically right around the 2019 level. So we feel great. There was lots of noise in the market a while ago about asset backed securities markets, having feelings about a firm that is also inaccurate with just a discrimination where we earn our first triple A rating on a tranche of loans. So our cost of capital is just fine. We've added several billion dollars of new capacity just in the last fiscal year, so triple a

16:16
triple A rating when your finances now All right, so my life hasn't been done in fair weather. And there were some people I met, I was living in my car, there were some bills that I didn't pay, frankly, and the Alfa called crown collection caught up with me two years later. And I managed to be able to schedule a payment plan over three years to be able to get it done. I don't know if that were affirm and you had a collection, she just a collection agency give you any of the money that they would get from someone like a deadbeat like me.

16:45
So it depends a little bit on the products that we're talking about. Unlike our competitors. Incidentally, we have many different products that we offer to merchants and consumers, depending on the product. In some cases, if you are late, basically nothing happens to you, because it's just not worth destroying your life and chasing you down. And we won't do business with you, again, as a consumer because that's if you really want to call it deadbeat. In many cases, were able to help folks work their schedule out where you're still not going to pay, by the way, any incremental interest or lead fees, we will just help you navigate a different schedule. And again, seems like it's too good to be true. But it does work if you like.

17:23
That's exactly how you should do it. I would have been happy to deal with any of my creditors, I could have done it really well. Instead of being harassed. I just needed to be treated decently like you treat people decently. Now, Amazon lately people feel Amazon's business has got a little light you've been given Amazon warrants have a good deal of Amazon. Do you think that everything that Amazon has just it's temporary, I mean, I'd like to think that that there isn't anything that can really change, the long term status of Amazon has been one of the great bargain houses of the world.

17:51
I think they're an amazing company, we just had our first quarterly business review meeting with them, I flew up to Seattle and got to see a hockey game, which was exciting, because I haven't been inside of a hockey arena, since pre pandemic. So that was that was quite something. And, you know, they are an unbelievable company, I have a lot of admiration for them, they have just an absolute obsession with the customer, something that we certainly have as well. And treating the customer rate is the first principle of public companies run their business. And they're really, really good at optimizing over time, they just find ways to deliver more value. And it's just really fun to learn from the

18:26
last question we've got now. Obviously, we've got Pay Pal, we've got block, which owns after pay, I mean, are there too many players or you can stand your own ground, let the other guys do what they want, you know what the customer wants, and you win.

18:44
Exactly. So just just for context, there probably is another couple of orders of magnitude to go before this market starts feeling like it's saturated, the US penetration is under 10%. Well underrepresented across all the players that call themselves by now pay later. Now, it so happens that some of our competitors have just recently posted their 15% annual growth rates. Some of them are not public. So I don't really know. You can see from my numbers that we're doing just fine and doing so with really, really high quality revenue, really good economics. Everyone should be switching to Binaca later, nothing would please me more if more banks in particular folks that do revolving credit would walk away from those products and go to simple interest, close ended loans that just help people buy things and not put them into debt. So lots of growth

19:33
as someone who unfortunately has had in a previous career mine, the need of someone like you I'm glad that a firm is around if it had been my life would have been very different Max Levchin fantastic numbers tonight a firm's founder, chairman CEO, Max, it's always great to have you on the show. Thank you. Thank you, that might not get to.

19:56
Coming up, but fuel fears and focus is this a Energy concern a diamond in the rough get another angle on energy next.

20:16
I say this every night there's always a bull market somewhere. And right now it is definitively in the oil and gas markets one of the few safe havens and an otherwise hideous market in particular, you know, I like the oils with generous variable dividend policies. And we spent a lot of time talking about Devin, Pioneer kotera. But there's another great copy. It's now in this group. It's called Diamondback energy symbol Fang The only thing on once you an independent exploration production company focused on the Permian Basin in Texas. Last September, Diamondback announced the plan to return 50% of his free cash flow to shareholders. But they also said they prefer to return capital through a buyback rather than a dividend into a lot of different ways to return on capital. At the time they announced a $2 billion repurchase program major commitment given the time that was only 15 good recovery. So far, it's been a pretty good strategy stocks jumped from $80 before the announcement to 127 today, but in part because that rallied back wants to change its approach we're gonna cover important last week they told us their top variable dividend strategy, and that's what we love, specifically gotten in that boosted its base dividend by 17% to 70 cents a quarter. And they told us the first variable dividend will be $2.35. Guys, that's 9.6% yield that is big to me, they can maintain the same level payout so we'll find out because this mark has gotten so ugly though the stocks now down slightly from where it was traded before this is very bullish announcement. I think that could be the steal. So let's talk to Travis Stice. He's the chairman and CEO of Diamondback energy, but more about his new capital return strategy. What comes next business size? Welcome to Mad Money.

21:42
Jim, thank you. It's great to be on your show today.

21:45
All right. So Travis, everybody kind of knew a fang diamond back as this very acquisitive company that all they really ever wanted to do was get bigger, bigger, bigger. There were some who were thinking this is not the diamond back. I know that I think it's the diamond back. I want to love tell about the conversion, you had to make as much money for shareholders and why it's a great one. Well,

22:07
first gen from a high level, I'm really proud of what our industry has done as we've pivoted from an industry that consumed capital to one that now is returning capital, as you highlighted in your opening remarks. That's a three pronged effort for diamond back. It's it's the growing and sustainable base dividend. It's it's opportunistic, share repurchases. And it's, as you just announced the variable dividend which, which was announced in the first quarter. And you know, particularly for growth, you know, as it pertains to diamond back, yes, we've been a very acquisitive company. And we've done so quite successfully. But in my experience, when you see commodity prices at the level they are today, most sellers want to underwrite their valuation premise at these high prices, and most buyers are not willing to do that. So for Donald back today, that means large scale m&a is off the table, however, will still always look for small bolt on, you know, smart, efficient, small scale acquisitions, like we announced last quarter,

23:03
if I went to work for diamond back today. And I found some good oil had some good prospects. But I brought you some ideas about how to how to cut back on emissions. That thing, greenhouse gases, would I do better or worse if I came up with the latter?

23:22
Listen, I think our industry has made great strides in emissions. And you know, if you'd asked me that question a couple of years ago, Jim, I probably would have responded by saying, Well, how much is it going to cost? And what's that going to do to my expense structure? And how much additional capital am I going to have to divert away from the drill bit, if you brought me that idea today, what you would see is that now, emissions in controlling emissions and emissions intensity specifically, is part of an operating philosophy. And that's not just unique to diamond back, we may be a little further ahead. But it's really the industry has adopted an operating philosophy now as part of our full cycle costs. Emissions Reduction is part of what we do on a day in and day out basis. You know, in fact, one of the most demonstrative things we've done is we now have almost 75% of our existing production with some form of continuous emissions monitoring associated with it. And that's a big, that's a big change from just a few years ago.

24:18
Now that does not add to your bottom line you doing it because you're why?

24:23
That's a good question. Wanted Jim. Honestly, it's it's a way that we continue to earn our environmental licence to operate. But we've also found that it's increasing our operational uptime as well, too. So there is a tangible benefit to to our shareholders as we allocate capital towards this.

24:39
All right now, one of the things that I'm concerned about a mutual friend rush to Brazil, from RBN was telling me we are really depleting the Strategic Petroleum Reserve. We're taking down a million a day with some people that say it's a dangerous move. Is that the long term way to be able to handle our situation?

24:56
Look, I think we're going to ultimately have to replenish the strategic petroleum reserve and I only hope we don't replenish it when commodity prices are really high. We've got the capability here domestically to certainly lean into production growth. The problem is today, though jam is that the same supply chain issues that we're seeing across the the our industry and across other industries are really making capital allocation decisions very difficult because it's going to translate to degrading capital returns. And that's what our shareholders have been asking for for a long time. And you highlighted in your opening remarks, this is a return period. So any capital we allocate today that degrades, capital efficiency is not looked upon very favorably by shareholders. Well, that

25:43
gives me a good chance. That's my last question. A lot of people trapped say, they can never have that discipline their oil people in the end, they're going to just drill drill drill, they don't know how to do anything else. I think you your company is now exactly the opposite. You're trying to make as much money and be good stewards. And that's not going to change is

26:03
no, it's really not Jim and and look, every quarter public companies continue this discipline actually improves the trust that we have in the industry. I mean, sorry, from our investors. And you know, if you look at what percent the s&p was represented by energy today, it's 144 and a half 5% at the low a couple of years ago. 2%. But you go back 10 years, and it's 10%. And I don't think we're gonna get these shareholders back. Until we continue to walk the talk, we continue to deliver on what our promises are, we continue to be very smart capital allocators and look for none of that, you know, we're going to continue to allocate capital which, which we believe generates the greatest returns for our shareholders, and we try to be as flexible as we can in that and we try to be as transparent in that business plan as we can as well.

26:45
Um, so the doing that for my childhood trust, I'm trying to get up to 12%. Why because your companies are good citizens of the world that preview a terrific return. Travis dice Chimp, CEO of Diamondback energy symbol Fang and a great honor to have you on sir, thank you so much. It's

27:02
been my pleasure. Jim.

27:04
Bunny's back after the break.

27:09
Coming up, it's a good time to fortify your portfolio with high grade names. Does micron make the cut, Kramer sits down with the CEO next.

27:28
There's nothing more frustrating than watching a very good company report terrific results. When you see it dragged down by the gravitational pull of the horrible market like we have right now. Take micron, the chip maker focused on memory and storage, which has seen its stock tumbled from the low 80s and late March down to 67 and change today, despite the fact that their last quarter was remarkably strong. In fact, the only thing better than last quarters results was microns guidance for the current quarter. Since then, though the stock is down seven more than 17% I gotta figure this out. So they're not microns for all things tech are still hated right now. So it's frustrating to see this quality company beaten down to the point where it sells for roughly five times next year's earnings estimates. Today they tried to turn things around with an investor meaning it looks like they had a least a little success at the stock because the stock rallied more than a percent. So can micron go to where it should go. Let's check in with Sanjay Mehrotra Sanjay is the President CEO of micron technology. Get a better recap of today's investor day figure out where things are headed. Mr. Murata. Welcome back to Mad Money.

28:30
Thank you, Jim. Great to be back on the show.

28:32
Okay, so Sanjay, I heard a story today that you told which is basically one of high the highest intellectual property in the semiconductor companies not just in low end PCs, which is actually not even that big of business for you. But in everything and I need you to tell people why this isn't the micron where of PC sales goes down, you got to sell it.

28:55
Jim our in markets are well diversified today. In fact, data center is largest market for our industry, smartphones, mobile phones, PCs, automobiles, especially autonomous making data centers, our automobiles, data centers on wheels. So these end markets are diversified, they are growing and that demand trends are secular in these end markets, memory and storage is bringing greater value to these end market applications. And we have seen of course, strengthening of profitability across the industry. But more importantly micron is entering a new era of leadership built on his technology, product, manufacturing leadership and delivering financial leadership as well. We announced today that we are increasing our dividend by 15%. And we present it for the first time in the history of the company across cycle financial model. And this is built on the confidence that we have in the demand drivers as well as microns execution.

30:00
Now, when you came on our morning show, somehow we got a little derailed I hope was my fault. We talked a little too much about low end PCs. What I want to talk about now is the explosion of Industrial Internet of Things devices, and how you are number one in IoT.

30:16
We are number one in the automotive sector as well as industrial markets. And industrial is a wide spectrum of end market applications where more memory and storage is being used automotive, we have a strong history of number one market share, because we provide high quality products that are critical for automotive, but also leading these markets with industry leading products that really make a difference transform the experiences in these IoT devices. So micron is very much at the heart of the trends that are shaping the world today, industrial IoT, autonomous, of course data center. So from data center to the intelligent edge to smart user devices, micron is really delivering experiences that transformed the world unleash businesses to do more through cloud computing that needs more and more memory as AI becomes bigger in cloud computing applications, autonomous needs more memory to make those split second decisions around our autopilot as well as increasingly autonomous features in the cars. So this is where a lot of excitement is diversity of the end markets and micron, yes, is a leader in industrial applications, industrial IoT, automotive, as well, as a technology leader, we announced today, that micron will be is already several quarters ahead of others in the industry with our one Alpha DRAM and 176 layer NAND and we today announced that by the end of this year, we'll be starting production ram of our next generation technologies. And Jim, I think we will again be several quarters ahead both in NAND and DRAM of our competitors. And

32:05
for people want to own the stock, I want you to turn to page 28 of the deck where you can see how much they've gained in automotive and industrial how much the game in datacenter and graphics and how PC and mobile has been cut back, which is why I like it now Sanjay. There are some people who claim that they are the deans of American industry and building things here. They're very nice people. And I liked that I want people put up back here, but it's micron, not America semiconductor company.

32:32
You know, of course, micron was founded in Boise, Idaho 43 years ago. And as you were referring to earlier, Jim micron is the innovation powerhouse. We announced yesterday that we have 50,000 patents now, that is monumental. And that shows how much innovation, technology leadership, manufacturing excellence, product innovation that we have delivered here. Of course, as an American company, we're very proud of our roots here. We have manufacturing for automotive and industrial markets. Overall, a small part of our overall production is out of Manassas, Virginia, and, of course, world's best in class r&d facility in Boise, Idaho, and tremendous opportunity for future expansion of leading semiconductor memory here in the US, because after all, we are the only US based memory and storage company.

33:27
Incredible. Now, I have to get to this because I want to bury it. All right. Do you think that cell phones cell handsets are falling off a cliff? Do you think that lower end PCs are done because last time when you were here somehow that became the narrative and that narrative was wrong?

33:47
Well, what I would say is that it's not like anything is falling off the cliff. You know, therefore lower end PCs consumer PCs, where memory usage is actually at lower end of it is not the big part of the market for us. Enterprise PCs are big because they use more content in those enterprise PCs. So yes, while consumer PCs lately have are not experiencing the same kind of growth are they experience in last two years although remain a large market enterprise PCs and desktop PCs continue to be a healthy market

34:25
handsets are fine right sir I mean China's on lockdown, but handsets are fine.

34:31
With respect to handsets in China with certain smartphone manufacturers, they are in demand due to COVID lock downs is somewhat be so some inventory adjustments by certain handset manufacturers in China but what is important is that overall handsets were and micron is engaged with all leading players right our footprint is diversified with handset providers in terms of our supply and hence it continues to be a large market while its growth rate because the total number of units being sold has stabilized now, but 5g and applications continue to drive increased DRAM and Flash content. Mobile continues to be a large market opportunity for an industry but no question that data center automotive, industrial networking, these are the big growth drivers in the years ahead. Excellent.

35:24
And that's how the narrative must be known. So people understand that by your stock Sanjay Murata CEO of micron. Thank you for everything you do for the country, sir, you've done a remarkable thing. You've kept us in the game. Great to see you sir. Thank you, Jim. Mad Money is back after the break. I hope you're what he had to say. Okay. It was very very positive. Stay with us.

35:48
Stick around

35:49
man next suggestion. I would stay with

35:52
the lightning round is coming up next

36:02
is time is at the level of the driver goes WHERE ARE YOU READY ski. Michael, Michael. Good evening, Jim Gray. Dang, who? Who are you?

36:18
All right, longtime listener and reader and invest my time before I invest my money. But the stock I have and I have real low p e 52. Week or 52 and none other than Harley Davidson.

36:32
All right. Well, I would normally like Harley Davidson but I think there's too much competition for the worldwide he doesn't see you as very good. We got to take a pass on it just even though it's cheap. It's not what we want. I want to get a Gordon Louisiana Gordon. Gordon speak to me. We

36:47
know from Louisiana. I like the I like the EMP space and you want to get your thoughts on pelos energy count

36:58
for me, but it'll do the job. You know, I like them bigger boys. I do like to Devins but I think you can find that one. Let's go to Mormon in New Jersey, Marvin. Hey, Jim. Yes,

37:08
I'm in your state. Well, you know, I bought a CNC in the mid 30s A while back. And I'm wondering if I should double down now.

37:21
I think that ATT is making a comeback, though, because they got rid of some things a little more focused. I did get more positive on it. 100 to 120. I think you're fine. You can ride for a couple points. Not more than that. Sarah in Illinois, Sarah. Great. Thank you for taking my call. Of course. Sarah, how are you?

37:37
Wonderful. How are you? Good. I'd like to ask about Jamia given the nickname of the Amazon of Africa and

37:46
partnering with UPS to dangerous we are in a market that is fraught and the blue chips are getting crushed. We got to stick together and high grade our portfolios not take them Lord Jerry in Missouri, Jerry.

38:00
Yeah, I'm a founding member of the club and want to say thank you.

38:04
Yes, had a bunch of fun made a bunch of money on the street today. And people are so excited about what we do. I've got much more on my sleeve. How can I help you now?

38:13
Well, I want to say that this is a high grade stock, but it doesn't make stuff. It's a cloud based data platform. And they'd like to CEO and I've talked about him a lot in the past. But I haven't heard him speak the company name in quite a while. Is there a price? And I should start a position and snowflake?

38:30
Yes. I think that if you take a view for a snowflake if you take a view for a DoorDash if you take a view for an errand be that you're not going to look at it for the next two years that you can start buying snowflake tomorrow morning. Lewinsky in Virginia Molinsky.

38:46
Hey, Jim, glad to be back on the show. Again. It's

38:49
good to have you Good to have you join the Club. What's up? Yes, sir.

38:53
Hey, I'm befuddled on the stock here that's just been killing me. So we all know that anybody's tied to oil exports of raw materials getting crushed. But I got a company trading less than six times earnings. Just had a great quarter had the best first quarter revenue 10 years and cash flow plus they they're passing on the raw cost. They stated it. They've had great international growth so they're not tied. I'm gonna I'm trying to hold the name of the company. Alright, go ahead. So they've got great international growth.

39:24
Okay, okay.

39:28
I'm gonna I'm gonna auto they're not dependent on the US and China. New Car sales are up 10% But they made a smart acquisition. Last year Cooper retired there was a business was up 40% I'm talking about a company. That stock price is lower. Okay. This stock we can make an album came out the stock Yes. From my hometown,

39:52
good, you're tired. Okay. Really bad previous quarter better quarter this quarter. That's why it says where it is. People do not have faith in Mr. Kramer. He's not relating to my dad ordered me but they don't have faith in and that's why he's got to come back and Mitch Kramer must explain why it's okay. Now after it wasn't last time John is in Pennsylvania, Jonathan.

40:13
Hey Jim. I'm calling from Jemison in the heart of Bucks County pa I'm a founding member of the investor club.

40:20
Oh my god, we should measure it about Boeing. Darn it. But you know what? We're making a lot of money together. How can I help?

40:27
Well, I first want to thank you for all you do for us. And after you realize the

40:30
club means so much to me. I want everyone to join the Club. But

40:35
you improve so many people's lives and you're passionate you Thank you. Thank you for your gifts all so I owe Lockheed Martin and Raytheon. I want to know what you think of Huntington Ingalls.

40:44
I've always liked them. I've always been a fan of Huntington Ingalls when they spun him off I remember actually recommended in 1981 when it was a different version and that lady's

40:55
life. A lightning round is sponsored by TD Ameritrade coming up, stocks these days can feel a golf hot potato. Kramer helps you stay vigilant with a roadmap through perilous times. Next.

41:20
Don't a lot of soul searching like you I'm sure I saw want to give us a little sense of history. We're going through a brutal sell off had a little lead up this afternoon. But you and I see ourselves before correct. So we have a general idea of how these things tend to play out. The s&p 500 was down roughly 18% from its highs coming today's session. We flirted with the bear intraday, that's in your 20% decline. Historically, we've often had nice snapback set for the level of decline that we've seen. Remember, we saw a fantastic snapback after the initial COVID crash. Now that was partially fueled by easy money from the Fed something we're not going to get this time because the current meltdown is caused by the Feds commitment to tightening. We also saw a spontaneous rally after the big decline in late 2018. And all of that was a Fed mandated decline as well. And it stopped because the Fed changed course, the person who raised interest rates and the fed back off in the market went back into full bear mode, well mode, it was just a brief bear market, albeit a painful one. Now I don't think 2018 or 2020 are the right models here. Unlike either of those times we're dealing with one of the hottest inflation rates in decades. The Fed can't save us from this weakness because the Fed needs this weakness in order to cool down the economy. Powell reiterated that opinion later today. And it's very tough to cool without the crash. What else we had a brutal couple of moments when former Fed chief Janet Yellen tried to raise interest rates in lockstep, then eventually backed off because of a global growth scare. And the collapse in oil prices that showed Yellen was being too aggressive so she backed down market bounce back again, I don't see that happening. We have much worse inflation than we did in 2013 or 16. Then there was the 2011 debt ceiling crisis where US Treasuries were downgraded by the s&p, because Congress couldn't agree on whether we should pay our bills. At the same time, Europe was experiencing a much more serious sovereign debt crisis took a while but people have actually realized that the US was nothing like Europe, at which point our stock market rallied and rallied hard. Again, not exactly the best analogy, because our biggest problems right now are home. Could we be in a financial crisis type total systemic risk situation? I think it's still doubtful that's only possible if it turns out the crypto is to true financial black hole like housing was back in 2000 8000. Want it to be so the world I know plenty of people are in crypto, but I don't think it is like homeownership. One big stable coin has now broken down supposedly like the money market, marking fun benchmark. But I don't think it's going to be that big to matter. However, there are people out there who tell me I'm wrong. There's another people who are really good people who say it could be a much bigger deal. By the way, I've been warning about these bogus stable coins since last year, and people just forgot that I did steal the matter must be done with expeditiously before too many people lose money and something they know nothing about. And this could happen again. But looking back unfortunately, the best analogy is the.com collapse that I lived through you might not have. That's part of the thing. I've been through cycles you may not have. We had the former Blue Chip tech stocks that did just fine. We had large cap tech which consistently shrunk a bit every day, like we're seeing right now with Fang. And then we had 600 Odd stocks that we're doing we're just doing nothing, including 330 that have recently come public and only we're just dead been walking folded. In 2000. We periodically had short covering moments that would suck people in maybe like the one we saw in Tet this morning and afternoon except for the big dogs. But even with Treasury yields down big today I think most of the rally except for for the high grade better stocks, like in 2000 was short covering. The main thing you need to do here is high grade your portfolio like we've been doing for the child trust. If you're a member of the Investing Club, you know this. In other words, you need to swallow your pride and sell some of your losers in order refund your winners. We took a position out today at a loss into selling a lot of us to gain and it was very painful for me and for Jeff marks as we explained to club members, but we wanted more money to buy better stocks. You must never sell your winners to fund your losers. You got to be a realist right now. 2000 We had a lot more pain than we're experiencing so far this year. So don't get too comfortable with anything you own. Because I think the sell off can continue as long as inflation runs hot and crypto runs cold. I like to say there's always one market somewhere I promise try to find it just for you right here on Mad Money on Jim Cramer See you tomorrow. The news is Shepard Smith starts now.