MAD MONEY 文字起こし 25JUN21　Beauty Health Co. Executive Chairman, Nike & Am I Diversified?

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窶皿ad Money w/ Jim Cramer: Beauty Health Co. Executive Chairman, Nike & Am I Diversified? on Apple Podcasts

0:32
Cramer Welcome to Mad Money. Welcome to quit America. I've been wondering friends, I'm just trying to make a little money. My job is not just entertaining but educating teachers. So call me at one 807 43 CNBC or tweet me at Jim Cramer. Too Hot or Not too hot? That is the question. Every day we debated is the economy overheated? Or just regular heated House of pleasure was the personal income number us scorcher? Do we really need a trillion dollar infrastructure package? When we already have so many job openings? Does it matter that FedEx can't find enough workers in the President's spring prior wages? All of those issues were in play today as the Dow rallied another turn 37 points that come easy, don't they and the SP game point three 3% while the NASDAQ traded sideways, ultimately declining point oh 6%. Next week, though, we end the hot versus not debate. Yep, we're gonna do a backwards game plan tonight. Because next Friday at 8:30am, we get the Labor Department's non farm payroll report for June. And I gotta tell you, I think this will show more people employed and some wage growth not enough to crush the market. But whatever the number is, you can expect the inflation hawks will come out of the woodwork. And they'll demand the Fed do something now and do it. Do it now you can always find a Fed president not as breastfed this but that, you know guided fed in the title and they're going to come out and criticize pal. I am of two minds about this. And they may not be the ones you expect. My first buy says we'll have to see what we'll still see these generous unemployment benefits. So it's really hard to get a clear picture of who's really working for work. I'm really looking I mean, I got that's called ghosting, by the way, I got a lot of ghost come into my restaurant, they're ghosting, they're not really wanting the job. I don't know, we need to see the true face of the labor market. And until those benefits go away in September, we're not. My second mind says the money managers what the Fed is putting the brakes on an economy aren't really worried about inflation or excessive government borrowing. They say the word they might even mean it. But mainly I think they're just under invested or short bonds. So they're getting squeezed. And they want the Fed basically to bail them out. Look, I'm a journalist, sadly, I have no subpoena power. But if I did, I bet we find that many of these guys will come on TV and place the Fed are failing to disclose that they'd make a lot of money if the Fed took their advice. These are largely the same people want the stock market debit total down week rather than a great up week. Sorry. So they tried to gin up a phony, some sense of surprise, every time we get another piece of economic. Look how hot that is. Think about it. We read article after article about how businesses can't find workers. When you got Help Wanted signs all over the place. There's nothing shocking about rising wages is there? Honestly, wouldn't it be shocking if wages didn't spike? That means Friday's non farm payroll number could still be pivotal because even the coolest number can be spun as too hot and it will be you just need two or three billionaires to come on the air and explain how that cheap j pal is hurting working families by allowing inflation to run rampant if you're rich enough people take you seriously even when you talk about how we need to protect workers from higher wages. And I call them all in cars these days. And that is meant as derision. No matter what not. What matters here is that j pal has made his position incredibly clear. While inflation is running hot he thinks it's transitory. He refuses durations frustration, too, we have less unemployment. So Friday's jobs number would normally be any chromatic except that we have so many money managers who want to hype this report up as the end of the world. Not for them. Oh no not for them at all. But for the poor downtrodden early weight wage earner the hourly wage or you know that's what they care about. Here they actually say it with a straight face. really extraordinary and it's bogazici what else is coming up okay next Monday. We get one of the best bombers of both work in home that's Herman Miller you know they make this great air air on shoes I gotta get an air on sure got one got a they're expensive, expensive on furniture. Ever since COVID locked us down this stock has been one way to get up. But that ended with the latest last earnings report. I think Herman Miller's film like pandemic play. What really work post pandemic plays. Call me a tad nervous. Tuesday after the close Peter from air environment the drone company we used to have more all the time. unmanned aerial vehicles are pretty cool, but what I care about our unmanned ground vehicles right now we got a real shortage of truck drivers and truck drivers. And Eric, by the way, aerovironment looks like it might have some answers. I like that. The websites really good. Wednesday, is the huge earnings day of the weekend starts with STC constellation brands. I like the maker Modelo Corona and Pacifica, the last being our biggest seller, my small plate restaurant bar San Miguel in Brooklyn, I am looking for a very big number. With only COVID potentially holding them back because they make these beers in Mexico. Mexico is way behind us in shutting down the pandemic. I know that it's fair to say constellations that are ahead of the problem that's go But I also know that there are many workers still not able to work. And then there's General Mills. Alright, so General Mills, many hours worried it's going to get hit because of inflation. We're getting hit with all sorts of higher costs, freight boxes, crops, you name it. I'm actually looking for something else that morning. There's an acreage report from the federal government that might show a huge increase in corn, which can send the whole commodity complex tumbling, and that will help General Mills plus General Mills base Blue Buffalo dog food. It's the number one name among dogs sophisticates and video two is not a sophisticated he's getting Pecha Purina. All right, that British good anyway. I mean, what like he's going to tell us that he doesn't like the taste. Oh, I don't. I don't like that, Jim. That's not what dogs do. I know dogs. Then there's my favorite of the morning, Bed Bath and Beyond. That's from but it's terrific Mark tritton Bed Bath became a meme stock simply because it's heavily shorted the buyers wanted to break them, but they couldn't do it. In the meantime, I think this company might just show itself to be a darn good retail with real product that could make this thing a brick and mortar survivor. Bed Bath and Beyond could be worth owning. Hey, let's get more mentors. added to the course we get results from micron the DRAM and flash semiconductor maker. The last time they reported the stock paint as though the seven year cycle was over. That's what everybody's see no one said it. But it happened. I think it's ridiculous and my current is for them to run but I hate to buck the cycle that the client has been torture and I'm betting the shareholders will skip out on any up with as much as I like micron. It's still a commodity chip maker at a moment when I rather own proprietary chip makers, like AMD where I think that Xilinx Steel's going to close Broadcom just reported a terrific quarter. And Nvidia which two guys said is calling the 900. Now we got two real good ones Thursday first fear from Ross Brewer left the senior executive job at Starbucks to take over the one as CEO of Walgreens. She needs to lay out a vision hopefully for something bigger than more stores and we're one time only customers who only visit for the vaccine. I am not a fan of the stock of Walgreens it's listless and I think it has no real reason for being. I doubt anyone can change that downward trajectory except for maybe Brouard a handful of other merchants. I wish her the best. But Walgreens has been a real bow. Second, we've got Kramer fav McCormick. Yes, the spice company. All right. The hot sauce mustard company for a long time. This was a sleeping machine that people started cooking at home during the pandemic. It's something quite far. Oh, you know what we're still cooking today. I mean, no one's like stopped cooking. But with restaurants few opening all over the place. People are going out more and more. That's what that Darden quarter said. Huge pent up demand plus mccormicks up against some tough comparisons versus last year. All we got been trying to show you how to catch the easy money mccormicks hard money stick to what works in and out of the home stick to beer, which tastes great at home or in my restaurant or any other place. But bottom line though, next week's all about Friday's non farm payroll report, regardless what the actual number is, the inflation hawks are going to come on TV, they don't make a lot of noise about how the economy's hurting. And these oligarchs their goal is to help the working person that they can say with a straight face crushes me Don't even bother to listen to them. Mark you know, Mark Hey Jimmy chill big boo Yeah, two year from the Midwest. All right to chill says Hi, what's happening? Well,

9:17
earlier this year, you listed travel as a theme for investing in 2021 my stocks with a 52 week high of 187 and some change in 52 week low of 75 and some changes Expedia group, XP old seller by

9:33
horse horse by by by playing simple, no more questions. I must have talked too much about my dog. Alright, next week. My dog's names and videos second, next week it's all eyes on jobs Friday. All right. That's why I started did not start usual. From there. I start one right to the right to the source. No matter what the inflation rocks will say the economy is overheating and it's time to tighten. Because they want to help the little guy. Go listen. Oh man, man, it's right with the s&p hitting another record highs Sibley RS is your portfolio and a prime position to profit. I'll be the judge of that when we play em high diversified, which you've asked for. Then Nike stock is jumping higher than Michael Jordan on breaking down the company's latest earnings and why so few people quit it right. Matthew boss sure given us on our show, by the way, and as a big kick vaccinate his summer kicks into high gear sales are surging in the post pandemic. Whoo hoo could bank on that trend? Well, I am talking to went under the radar player that I think may be a winner. So stay with Kramer.

10:43
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 and 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 applied to the workforce Executive Council at CNBC councils.com slash WEC.

11:46
As I said before the break next week we'll determine if we're too hot okay and this is what everybody's worried about. Or just hot and on a day where the industrials came to play but then as tech took a bit of a breather, you're reminded just how important is to have a portfolio that can take whatever the market rosy view which makes it a perfect day to play EMI diversified now what happens here this way you call me You tell me your top five holdings I mean the middle you might have an index fund but then you might also stocks Give me your top five stocks. I tell you for portfolios diversified that they've needed mixed up little I don't want to read every single stock in one sector. And first up is a hashtag mad tweet from kc.co on Twitter Bujar to you Jimmy hashtag Am I diversify with my top five holdings and the holdings are Boeing crowdcast Marvell technologies and lock lifelock and Nvidia love all the hard work your staff does and your daily basis to help the little guys learn. Well, well this makes me feel fabulous. Okay. First of all, fellas, obviously a subscriber to add to my travel trust newsletter action alerts plus calm member the club because all these every single one of them are action alerts names let's go over. So Norton is a subscription service to be able to make it so that you do not get caught notes they find out if you've been hacked. Marvell is an unbelievable technology company whether it comes for 5g or high performance computing and Vidia this is a problem they both to high performance computing, crown castle, one of the largest of antenna companies in the in the country, which is fantastic and Boeing aerospace so we have to do what we have to make a decision. I love both these companies Marvel and Nvidia. But I'm going to say that we're going to keep Nvidia we're going to swap out more bill all the way up here. 56, Emory healthcare company and the healthcare company that we're going to get into

14:00
we get an Abbott Labs, Abbott Labs, and this gentleman knows that why I had to hold my breath was because Abbott disappointed us so badly last quarter. Let's go to Franco in New York Franco.

14:15
Hello, Mr. Kramer. My name is Franco I'm come from New York City. Here are my top five holdings they are GM, apple, AMD, Southwest and Disney. Am I diversified enough? What are your thoughts?

14:32
A lot of Franco's portfolio. I love it. First of all, I think GM is worth probably I think it's worth 25 to 40% more than it's selling for. I think Mary Barra is chronically under value. She came on our show she would find out that I am a huge backup. Okay, AMD This is gonna say it's Dr. Lisa Sue. That deal was I was going to close soon. We bought something the travel trust just today, Disney Bob checkup Keep it. I think capex was an interesting job. I've never learned more. I've got to learn more. Okay, fair enough. I gotta learn more. Southwest Karen Kelly is leaving, but he's leaving me executive chairman and I like that he's gonna hang out what a CEO he is. And of course Tim Cook at Apple. So we have tech, but we have high performance computing in gaming. We have auto, we have entertainment, and we have aircraft. Airlines know what Alright, we're not dying. Let's go to rinaudo in Florida bernado

15:35
Hey, Jim, this Renato in sunny Florida. Thank you so much for taking my call of a long time follower views since the days of Kudlow and Kramer bought a play Am I diversified my top five stocks are number one apple computer number two Amazon, three Facebook for Verizon. And number five clean energy Am I diversified? Thanks a lot, Jim.

16:02
This isn't very effective. Those kind comes as a very interesting way to invest. Okay, so you know, Facebook is really just scoring a dip every day seems to go up. It's because of their shops initiatives. They are now the friend of the small and medium sized business before them. They were hated. This was the smartest thing Mark Zuckerberg ever did. Clean Energy is a total spec. We had him on last week. It's about renewable natural gas. Calvin or Apple? What are we gonna say Apple's terrific varizen I hear it's gonna have a better than expected quarter, Amazon stopped believing that the Amazon Web Services holiday was bad. That's just propaganda. It's terrific. So we're going to call this a technology retailer. We're going to call this a technology retailer of a very different complexion. We're going to give this a telco. We're going to call this entertainment. That's right entertainment. And this is spec. I'm not calling it oil and gas, it's spec and if you didn't have four that are like this, I am sanctioning a spec with it. I love those questions those callers EMI diversified is back us forte. I typically like to write a written piece right here. But you know what you want to hear from me. I want to hear from you stick with Kramer.

17:18
investors who stuck with the swoosh were rewarded for their faith. silencing the naysayers How did Nike just do it? Kramer explains net get an edge invest like a pro access CNBC, his live streams around the globe, unparalleled access to CNBC experts actionable investor insight and ideas, start your free trial today@cnbc.com slash Pro.

17:54
How does so many of us get the stock of Nike so wrong. Making capitalization companies don't usually see their stock spike more than 15% on grade earnings unless a lot of people were very, very wrong. Or of course, very, very short going into the quarter. I know. Because I was one of those people we used to own Nike for the child will trust but over the course of the last three months, we unloaded our entire position. That's how worried I was about these numbers. Now of course, I'm kicking myself for not sticking this one even as we ended up making lots of money early on for charity with. So what happens here? One One, what bogus worries scare people away from something that turns out to be terrific. First and foremost. There's China. Back in March, we learned that a handful of apparel companies like Nike and h&m were facing boycotts in China, after they publicly vowed not to source any cotton from the Xinjiang region. That's a Northwestern most part of the country where the Communist Party is viciously persecuting the local Muslim population. They've got a million people in internment camps. And these companies don't want to profit from their forced labor. In response, the Chinese government made an example out of h&m, Nike, h&m, the big Swedish pouching. The brand has basically disappeared from China's internet and their landlords are forcing store closures all over the country. After that you had to worry that they crack down on Nike to legitimate that wouldn't be a huge problem that Nike gets surely 20% of its sales from Greater China. And it's also the country's biggest growth engine. Sure alienating the Chinese government would be very bad for business, but Nikes recently demonstrated a willingness to stand up for controversial causes. Remember, they signed Colin Kaepernick to an endorsement deal after he got blackballed by the NFL? Wouldn't they stand with political prisoners in China to what if some analysts ask them about Xinjiang on the console and management needs some big pronouncement about religious freedom Well, that was really what was keeping me up at night. Well, then we had a bunch of other concerns. The last time that reported their sales came in weaker than expected not great. On top of that winter storm newari cause huge domestic shipping delays in February, which crept into March and caused major port congestion on the world. What else? Last year, we saw a massive athleisure boom because millions of people no longer had to dress up for work. There was a widespread sense that this will be rolled back as the world returns to normal. And then for a while there you had the worry at the Tokyo Olympics, which is a big Nike wake up call would end up being canceled rather than just reschedule. Remember Nikes a major sponsor and a lot of the athletes wear Nike Making matters worse. When footlocker reported in late May, the company gave you a tepid forecast talking about ongoing pandemic related store closures in Europe in Canada. Well, I think you feel like Nike their best seller might not be doing so well. Finally, thanks sold these issues. Nike had an increasingly ugly chart. Going to the quarter this was the worst chart in the Dow Jones industrials, sometimes that's meaningless. But you had to wonder if maybe the bears knew something about this quarter that the rest of us didn't. But then Nike reported last night it totally knocked it out of the park, we're talking about a monster 42 cent earnings beat off of a 51 cent basis, with much higher than expected sales up and incredible 96% year over year on top of that, management gave excellent guidance for the next fiscal year. And then they did something that all of us dreamed about. They gave you a forecast all the way through to 2025. So how did they do it? Well, let's start with China because that was the biggest worry. Well, Nikes Chinese numbers weren't great. They were much better than feared sales up 9% year over year on a constant currency basis. As CFO Matt friend explained on the conference call the Boy Scouts hurt them in April, but most of the paint vanish didn't marry. And by now well, they're pretty much over it. I feel like I was too paranoid here. See, I sure h&m did get obliterated for defying Chinese government but Nike Nikes not h&m some of that's because Nikes got a much bigger popular brand. Some of its probably political. h&m is swedish. Okay. China can make an example out of them. And there's nothing Sweden can do about it. But Nikes huge American operation. Well, government's not on great terms of Beijing right now. They still have to think twice before they start cracking down on iconic US companies. So well. h&m products got purged from the internet and China. Nike still the number one brand on Team all the big Chinese e commerce platform. In fact, they've added another million members on T Mobile through the June 18 Shopping holiday. And that's incredible. When CEO john Donahoe was asked about China on the conference call, he didn't pontificate about human rights abuses. Oh, no. Instead, he sounded like Kevin Johnson, the CEO of Starbucks, who told us a great story about how his company has strong relations with his Chinese customer base. Donahoe pointed out that Nikes got a long history in China. His founder, Phil, Mike started making sneakers there over 40 years ago, the company's created tons of jobs here creating jobs, their new digital technology center that they're opening in shins in. So there are two ways to look at this. Maybe Nikes brand is so big that transcends politics, the boycotts just couldn't stick. Because Nikes in a class of its own, it's not like boycotting a cellphone maker or a power company. If one Jordans, you're going to get Jordans. I'm not saying Michael Jordan's more powerful than President Xi, unless we're talking about one on one. I think there's some truth to this. If any brand can transcend politics, it is Nike. But if you had another way, maybe Nike, the company is just very good at politics. Before they took a stand against human rights abuses in Xinjiang, they had a great relationship with the People's Republic. And even when Nike took a stand, they did it in the least inflammatory way possible. With a small statement on their website. They did the right thing, but they did it very quietly. Meanwhile, if you listen to conference call, you never would have known this happened because management's so abusive, but how they've been created, well, a brand of China and for China, I was worried that Nike might get asked about the gj on the conference call right ask about the persecution. But there was no persecution question. I'm betting there never will be. What about the other worries turns out Nikes getting much better dealing with logistics problems, and it's incredible DTC, direct to committed to consumer business they add which keeps growing and glowing. People still can't get enough their products even as the stay at home economy has become the back to work economy. Maybe athletes are here to stay people like being comfortable, the Olympics is happening. And last but not least the negative footlocker read through as a head fake. When you hear about closed doors, just remember that Nike makes a lot more money by selling their products direct to you over the web. cutting out the middleman will be 50% of their business suit. The biggest driver of today's epic rally though, when Nike delivered great numbers proven the bears wrong, especially in China, it created the mother of all short squeezes a big company, you had a legion of shorts who bet against this thing. And they suddenly had to close their positions when their whole thesis collapse. The bottom line, the next time an iconic company like Nike looks like it's going getting itself into political trouble. You need to be a buyer, not a seller, because these guys know what they're doing while the stocks far from keep businesses booming so you've got my blessing the bison Nike, next time it pulls back, and I bet you my child will trust which you can follow along by by subscribing to actual Rs plus, com my club will probably buy back to Can I go to Kyle in Kansas please Kyle?

25:52
ujar Jimmy chill. I love you. And even though I'm 27 I want you to stop me. Okay, my question. My question is about peloton. This week, peloton introduced its new corporate wellness offering for businesses Yes, and it tremendously moves the stock up. But with gyms opening back up the lawsuits against the company and the historical difficulty for fitness companies to stay trendy and sustain revenue in the long run. Do you think it's time to sell peloton?

26:26
No, I think the peloton actually was one of those companies that I didn't didn't see, I think is to meet Emily initially, then really came out of the pandemic with more people using it than before. It's still great word of mouth. I think let this one run at least the 140. Let's go to Arthur in Missouri, Arthur.

26:46
Hi, Jim, a big thing. Louis buya. Do you and thank you for everything you've done for me throughout the year.

26:51
Oh, you're very kind. Thank you. Thank you for sticking with me throughout the years.

26:57
Absolutely. So I want your opinion on a company that I already own. And then I look at as a long term investment. This talk is about 60% off its all time highs with targets of approximately 30% upside. It's just barely above the IPO price. And as a lot of insider buying is better. It's better margins than its competitors, which have traded higher recently. And the company is a reopening social media and e commerce play in the fast growing secondhand luxury clothing good space. Should I buy more hold or sell a poshmark?

27:32
You know what I'm gonna tell you to buy. And one of the reason I'm gonna tell you to buy it is because sometimes you get ideas from your door. And my daughter said poshmark is the one that I didn't believe it. I then looked in I found everything you just said about it. And you're right. And poshmark is a winner. It's expensive, but it is a winner. And they can come on the show anytime they want. Nike is far from cheap, everybody but you have my blessing. Do some buying the next time the stock pulls back. And you could say well Jim, why don't you give me my blessing when it was 130? And the answer is because I got it wrong. What remained money had asmus come off. Could the beauty business turn on do not miss my exclusive with the company behind Hydra facial then our reveal the beacon of hope I'm spot on when it comes to what I consider to be the greatest existential threat to this morning. And all your calls Robin Farhan tonight's edition of the lightning round, so stay with Kramer.

28:44
For months no one wanted to go near the spec stocks right because we've all been burned by the entire group. But now we finally meet some place where the market can differentiate between the garbus back deals. And there were good ones that are already real companies aka giesbrecht. Take the beauty health company simple skin for you home gamers, which is a new medical esthetics outfit created when a business called hydrafacial merged with a special purpose acquisition vehicle in early May. And late last two months this stock has rallied from just under 10 all the way to 17 bucks and change skin is interesting concept they sell their hydrafacial delivery system to health spas poor there's so many of those now and dermatologist then they make money off disposable supplies razor razor blade every time someone gets a $200 skin clues and cleansing procedure. I like some of these backstories the beauty health company is a real business with real sales and even positive earnings before interest, taxes, depreciation amortization. Best of all is backed by familiar face. I'll be in a face that seems to look younger every time you see it. I'm talking about Brent Saunders, the former chairman CEO of allegan, who sold the company to admin for more than 60 billion in 2019. So Could this be another hour again, let's say you have a brand sooner The executive chairman of the beauty health company to kick the tires on this new company. Hey, Brent, welcome back to the show.

30:07
Hey, thanks for having me, Jim. I actually feel older. Maybe I look younger, but I feel older.

30:12
You look good. Now Brent, first, because you're familiar face this show. I'm gonna ask the question. Don't use the SCP, which is why SPAC versus being a CEO of another company. I'm sure you're the pickup order.

30:23
Yeah, look, I I actually didn't come up with the spec. I came up with a strategy, which was to consolidate a beauty health company, this kind of Kwazii market that sits between the true medical esthetics companies and the beauty companies like L'Oreal. And once I had the strategy, I kind of said, Alright, what's the best way to accomplish it? And SPAC was just easiest capital formation. It had nothing to do with wanting to do a spec and then look for a target. I actually came at it strategically a little differently. But But you

30:54
know, it makes sense. You know, I was out in a little town called Doylestown, pa with my wife. And we were saying, you know what, when you're in these towns, you would from Jersey, you couldn't a town and there seems to be a spa, literally had every quarter now You and I both know, those didn't even exist five years ago. First, why is that? So? And second? What can beauty health do to differentiate them?

31:19
So you're exactly right, the Med Spa channel is the fastest growing segment in the esthetics world, and skincare is growing faster than beauty and makeup. And so the confluence of those is really driving this Med Spa proliferation. And there's another interesting phenomena that's happening, which is the democratization of a lot of these treatments. In my own company, you know, we sold very expensive medical aesthetic procedures. And they were wonderful and that that company is the best at doing that. But this is something that's like you said, $200, on average, across the country, highly accessible to a lot of consumers. And they don't feel like that's about a park avenue or Beverly Hills to get a treatment, they can go into their local spot and get phenomenal service not be with sick people being an elegant environment with great music and a good smell and and be treated and pampered.

32:15
Well, you know, what reminded me of when you go to a really fancy hotel, and they have a spa treatment, but it's $600. I mean, this has been three steps. 30 minutes best good in real life. I have to say I want to try it out. I mean, where are you in New York,

32:30
you absolutely were all over the world. And you should try it out. Because I will tell you, there's no downtime. You'll be you'll feel great. You know, most consumers walk out raving, we have the one of the highest NPS scores in the category, I think the highest in the category, depending on how you measure it. so incredibly high consumer loyalty. And you look great, immediately, you can go right back to work on your skin is clean, it's glowing, your makeup goes on better, you feel better about yourself, whatever it may be, it just, it's just a clean, health, clean beauty. feel good about yourself treatment.

33:04
And when I think it's interesting, when you look at your doc document or your you know, your different documents, it seems like this is something a lot of men men are doing.

33:13
Absolutely. In fact, you know, when you look at medical esthetics, it was about 10% men, 90% women, this is trending closer to 30%. And I think it's going to grow even faster as we launch more programs and products directed directly at the male. So this this is really omni channel, we sit in Sephora. We sit in hotels, we sit in doctors offices were all over the place.

33:37
Now to help us get around this because you're always created valuation, to beat humans to beat our valuation. That's roughly 11 times this year sales. That's an 88 times that 25 million in EBIT dot. First of all, you could take Jim first, most these companies aren't even profitable, ours is profitable. But second, I mean, you really understand where something sits in this space. Is that are people ahead of themselves, or is it just the growth prospects? so great? Yeah, I

34:06
think the growth, I think there are two things. One, the growth prospects are tremendous is the company pre pandemic that was growing over the last few years at a 52% kegger. top line. So really break type top line growth, multiple levers for additional growth, not just expanding in the US where we're we're just you know, very low double digit penetration. But international growth is massive for us. And then I think you have to you have to realize that when I acquired this company, I made this deal at the heart of the pandemic. So I bought this at you know, a rock bottom valuation. I think today's valuation reflects what it would have probably traded for if I tried to do the deal today.

34:47
And one thing I thought was really fascinating. The different thing you have in foot influencers and social media driving purchases, I agree with that next gen beauty, but this is something that I really like aging millennials are spending more on skincare preferring experiences over products. So in other words, they like to go to a place called a spa. they're familiar with the asking for this for this product, or will find it from influencers. And this is something they do on weekends at night is it? I mean, because it seems like it's a, it's something that people want to

35:21
do your debt, you're exactly right. And not only are they doing it on weekends at night, they'll do it on their lunch break. And what's even more interesting to the experiential component is we're seeing retailers so for being a key partner of ours, but others around the world wanting to put the machine in their store, even clothing retailers to create a more experiential shopping situation, because this is something that can be done so easily. And again, everybody loves it. So it just creates such a good feeling for everybody involved.

35:51
But the machine is at that spot, and it's a razor razor blade model. So once people get excited about it, they want it they can do a monthly subscription,

35:59
that well some places offer monthly subscriptions we offer. Obviously, it's like a Keurig machine, you can put whatever skincare regimen into our machine that you need, whether you have rosacea or acne, oily skin, dry skin, we sell an upgrade people two boosters, which are higher margin depending on advanced care, we're just launching a haircare program with kerevi that will really clean the scalp and help refresh the scalp and put boosters and growth boosters in the scalp. We have a home device coming. So there's so many other things that are yet to come. With this treatment. It's just we're just scratching the beginning of what's possible

36:39
here. But one last question. I'm used to to Brett, um, you used to Brett Saunders as the CEO, not the executive chairman, you've got a pretty experienced terrific CEO. But at a certain point. I mean, is it is it his company or is your company

36:55
by luck, I Clint Cornell's our CEO. He runs the company day to day that's his job. He's the boss. I'm working with Clint on strategy on m&a on investor work. And really just as a sounding board to him as this is his first public company but incredibly experienced guy and he's done such an amazing job with this company already. It's I'm excited to see what he does next.

37:18
You've got to go into the office, everybody. Well, there's no real office anymore places but your this is really active for you. You're not going to do three more spax No, I'm

37:27
not a serial spec guy. This is this is what I want to do. My legacy hopefully is the beauty health company. And I view this as a platform. I really want to build this company. I want to create a bundle of these types of services, these beauty health services, and really be the best at the world of providing these technologies to med spas and hotels and estheticians around the world.

37:47
I think it's a great idea. I really do and I just I always lamp. I guess he did the same thing. It was like spa, spa, spa spa. Boy, what do they have? And what they have now is beauty health. Brent Saunders, executive chairman of the beauty health company. It's not us back. It's a company. Thank you. Great to see get bread I appreciate.

38:09
Everybody's back here. Coming up next what's big money together? What do we got?

38:14
Kramer is bringing the thunder and answering your burning questions in today's edition of the lightning round.

38:36
And then the lightning round is over. Are you ready? Keep that in the light of the remote summit. Michael in Virginia Michael. Hey Booyah. Cramer hope all as well buddy the ticker symbol LCC Karla. I'm done with the US courts for now. carmax may have been the peak when it had that really great number. I'm staying away. Windy in Georgia windy. Yeah, I damn. Hi, Wendy. How you doing? I'm doing fine. Are you doing? Good. I got my whole family here. They're all excited. Hey, guys. How you doing? Hey, all right. All right now. stock. Mankind speculative stock. I hated the stock for the longest time and I was right. But everybody on Twitter can say How could he hated the injuries now? It's expected to play that I like and you can tell your whole family that it's just for speculation. There was some buzzer went off. Wendy you can ignore it. Let's go to Zach in Washington, Zach. Hi, Jim. Hey, what have you heard about the debt free company developing breast cancer treatment drugs ACLs. nothin cuz I don't know. I got to look into that one. I mean that thing that thing like that charts really very positive. Let's go ahead and get we're gonna do a homework Jerry in New York. gerrae Hi Jen. A big from Long Island New York Gaul my wife's here right now well play What's up? Great. Thanks time caller here. I'd like to know your opinion about a company you recommended before. Should I buy sell or hold? TP why pace beneficial finance Corp? Yeah, I thought that was a good you know, to me, it seemed like a decent spot. You know, this facts have all been kind of wiped out. I don't want to give one. I don't want to give up on it. I just don't. And that leisure inclusion of the

40:52
lightning round is sponsored by TD Ameritrade. Coming up, what can Nike and Starbucks teach the street about doing business in China? Kramer's got the answer.

41:15
I've said it before. And I will say it again. The biggest risk to our stock market in our economy is the possibility that China may take a run at Taiwan. That's been a background risk for decades, but we don't normally worry about it, because the Chinese Communist Party knows that the US government would intervene. However in recent years, China has stepped up its pressure on Taiwan. The Chinese Air Force keep sending in planes to violate Taiwanese airspace. Last week was the biggest incursion yet 28 fighter jets and bombers. They also keep hitting Taiwan with cyber attacks. Just yesterday, Taiwan's Foreign Minister went on CNN, and said we need to prepare for military conflict with China. Remember, China doesn't acknowledge Taiwan's independence, and they want to get their hands on Taiwan semiconductors massive foundries. While it would be insane for China to invade, they keep ratcheting up the pressure with their military exercises. So Believe me, I am worried. But maybe I've been too dire in my in my projections. Sometimes you let your political views and your fears get in the way of money. That's what this story is about. Last night, we interviewed Kevin Johnson, the CEO of Starbucks, right when Nike reported incredible quarter, and they both had great things to say about their business in China. I'm starting to think that the American companies who create lots of jobs over there could actually be fine. Even if our government and the People's Republic stay on bad terms. Like I mentioned earlier, the Chinese government is aggressively prosecuting persecuting Muslims in its northwestern region. It looks like they put a million people in what can only be described as concentration camps. But when I asked Kevin Johnson what he was doing to fight for human rights over there, he said he's running Chinese stores with Chinese people who share the company's values. No word Starbucks isn't going to take a stand. And while that might not be the right choice, ethically, it's absolutely the right choice for their investors. People who work there do very well. But as almost everybody in China, Nike was even more stark. While they didn't get asked about Xinjiang on the conference call management sure made it sound like they they're back on the Communist Party's good side. Short, Nike got hit with a bit of a boycott this summer, I say because it wasn't full in this spring, when China went after foreign companies who criticize the ramp that human rights abuses but those boycotts didn't stick like Starbucks, they've been able to sidestep the issue, possibly could be analysts know that if they bring it up, maybe they might not be invited back on their conference call. And it's not just those two companies. I think we're seeing a broader turning point in America's business relations with the people's public, not government, but business. First, there's Tesla after listening to Kevin Johnson, john Donahoe totally avoided the Xinjiang issue. I don't expect you are most most to say anything about human rights, rights or religious freedom. Musk can be loose kin, but he knows how to make money. And I'm betting China will ordinarily be Tesla's biggest market. Second, Apple has created a massive number of jobs in China. So I'm actually much more confident than I had been that they'll be able to keep selling iPhones over there. I am actually hopeful now that Boeing which is still waiting for certification for the 737 max gets it because the Chinese need planes, lots of them. You see that happens? stock goes to 300. All that said the Chinese Communist Party controls all these decisions. If they decide they want to get rid of Nike or any other business that will wreck the quarter, and possibly the whole year, they can do that. That's why the stock went up so much the shorts thought it would happen. And anyone on one of these stories can change on a dime. And the shorts Sure, sure hope it will because that stock was up 15% last night, though Nike and Starbucks showed her broken copies that they keep their mouth shut about human rights. Yeah. Then China will let them make a lot of money. Not exactly profiles and courage. But at the end of the day, these executives have a fiduciary duty and that duty is to you to make money for the shareholders. I'd like to say there's always a bull market summer, and I promise try to find it just for you right here on Mad Money. On Jim Cramer. See you Monday. The news was Shepard Smith starts now.