MAD MONEY 文字起こし　25MAY21

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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！

Mad Money w/ Jim Cramer - Mad Money w/Jim Cramer - 05/25/21 on Stitcher

0:46
Hey, I'm Cramer. Welcome to Mad Money. Welcome to credit America. I do want to make friends. I'm just trying to make some money. My job is not just to entertain you but to educate you so call me at one 800 743 CNBC, or tweet me at Jim Cramer. There's a thesis for pretty much everything. And that's why this market keeps hanging in there. Even though so many big time money managers can't get comfortable with what they see is a Fed engineered recovery with rates way too low to make any sense at all. We often hear about the bull case or the bear case with interest rates so low the obvious bear case is simply that one day the Federal Reserve will decide to take away the Punchbowl doesn't have to happen. But in the interim, I think the pessimists are fooling themselves because there are so many positives out there that have nothing to do whatsoever with the Fed. That's why after a major rally yesterday we consolidated rather than giving up the ghost dow dipping just at two points s&p declining point two 1% NASDAQ edging down meager point oh 3%. In other words, the bull case for this market is more like a stampede of smaller bookcases rather than one giant all encompassing one. So why don't we run some of them down? Believe me, I'm leaving out a lot of my current debt. In fact, I chose not to I first you cut the reopening of america that's a rolling positive as we keep hitting new vaccination milestones when you hear it. When you hear about the reopening, all you have to do is think about well, does that make you want to travel. But like so many other industries, the airlines were caught unaware and they've been reluctant to expand until soon. They cut back hard during the worst of the pandemic and didn't have much hope for rapid recovery. Now though, the recoveries here and the stocks have started to make their move. Southwest already had a strong comeback and it's widened the United Delta American air it's almost like these stocks are being bought by people who can't get plane tickets because everything's booked up wouldn't shock me while the bull market in the cruise lines is back now at the Presidents bless trips to Alaska. I think Royal Caribbean Carnival Norwegian Cruise still have more upside. These stocks have nine lives I think they're only about on like five we're seeing the same thing in the casinos. I like MGM but I love Wynn resorts been buying it for the chapel trust, quintessential Las Vegas and Macau story. It's just starting to make its move. The destination thesis was nicked by Disney's unfortunate streaming numbers, but their theme park business is looking great. So I think six flags in Cedar Fair have more room to run. I don't want to get too far ahead of myself. But you have to wonder when all this will trickle down to Boeing stock itself. The airlines like farmers when they're flush, they buy new machinery in this case aircraft from Boeing. The reopening trade is like a forest fire keeps spreading it's very hard for the put the bears to put it out poor smoky and the last week we've seen big gains from the shopping malls and shopping center names. Not long ago we thought they've been stripped of their dividends and left for dead now huge winners. Even the banks are being treated as reopening place because a booming economy requires more loans. And when the Fed is finally forced to raise interest rates that will instantly make the magazine more profitable. There's been relentless buying in the banks Why will make sense. So you're getting just to buy these stocks before the Fed relinquishes control over their ability to pay large dividends or buybacks stock. It's a once in a lifetime opportunity that's coming by the end of June FOMO. For banks, it's a pretty new thing. Now what happens daily, beyond the reopening thesis there the relentless cycles, they keep surfacing cycles, they carry entire industries. We don't talk about the agriculture cycle, but when you go over gear's widely overlooked conference quote from last Friday, you'll see the greatest ag cycle in a decade. Some would argue it's the greatest in modern history deer agco fertilized by seed companies or in fantastic shape they're all bison any weakness is ag cycles a dream come true because I think we're only about halfway into it. We've got the best fuel cycle and living memory with just a few players new cork leaving clips in US Steel to invest in. Hey, you know what, there's a lot of excitement about an upcoming SPAC legato merger which is it's combining with an old timer algoma yes Canadian flat rolled steel producer you want this is one of the rare specs I think's gonna work, man. There's the health insurance bull market. Oh my god, United Health centene all time high today, Cigna, Humana CVS that owns Aetna. They're simply saying welcome aboard that can be bought on any any any rare dip. I should say then there's the meme stock cycle remember these GameStop it's been roaring higher ever since management decides to raise capital by selling stock right into the Mall of the Wall Street best crew and she's doing the same thing stage monster rally once was able to raise some cash on the back of the same investors willing backs I should say I keep waiting for these guys to adopt another target some fresh company with with a big short position here's the catch my pic Wall Street meme beat whatever ama here beyond me 22% of the float spin short got a chance for giant expansion of their deal with McDonald's charismatic sis see CEO of then again the Wall Street bets cohort prides itself on never selling so I don't know where they're going to come up with the cash for new position. Maybe today's success allows them to steal my idea. And then of course crash me on twitter at the same time.

5:51
Next up the consumer product and drugs thought stock bull market. This sprint is about the endless declining dollar which makes the overseas sales more valuable. I know these companies have issues with freight and plastic costs some poor by that by now. I think plastics about the breakdown with exception of Korean booze the chemical stocks are acting like they peaked. There are some surprises to the housing cycle is supposed to peak once the pandemic wane. But I guess somebody's got that mental because home prices keep roaring. Every time someone suggested ask them we learned that supply remains well below demand and with low mortgage rates which aren't supposed to be able to be maintained but our business remain strong and are moving up. Dr. Horton has been great. How about that Toll Brothers spectacular quarter the same thing, best housing market in 32 years that's led to some excellent gains for other stocks that people keep shorting William Sonoma, Rh wayfair Macy's, this cycle shows no signs of waiting whatsoever. Hey, you want to throw target in there for good measure? They got a lot of housing stuff in there. How about the mall store cycle, I mentioned that the mall owners are in good shape, which means that things must be great further tenants. Elle brands has a way of this been leading the pack American Eagle Outfitters gap stores that so called lag trade. Thank you, Matthew boss from JPMorgan. Now it's expanded Urban Outfitters children's place and you see that this is a cycle that few saw coming given the conventional wisdom that the mall is dead and Amazon's the center, but the strength in the stocks of federal Realty and Simon Property Group told you otherwise. Finally, there's a tech bull market that shows no signs of flagging in the semiconductor capital equipment sector. This group looked like it would peak for a moment when Applied Materials got hit after an excellent quarter. But with the United States now committed to building as many as seven new semiconductor foundries something we're going to talk about with Commerce Secretary Gina Raimondo later tonight, I think the government mandated demand will extend the cycle longer than anyone thought. That means you got to buy Applied Materials lamb research XML, and KL a here's the bottom line, just like America runs on Dunkin, the stock market runs in cycles. When you have this many running once the averages tend to be pretty darn resilient. And that's why I think you need to keep by the damps. There's just too much to like, Steve in Illinois, Steve.

7:54
Jimmy, chill boo yah, yah, what's up? Hmm. First, I want to thank you for all the positive vibes you give on your show during the challenging times of the pandemic when people were all stuck at home.

8:05
Thank you, man. Yeah, you gotta come to play not to come to bring people down for heaven's sake, what's going on?

8:11
Hey, well, I also want to say my 10 year old daughter loves watching you and loves it when you give all the callers a boo. Yes. And she's also learning about investing herself. That's right. That's what she should do. Yeah, you've done you've definitely made her dinner is more entertaining. Well, we're all stuck at home during the pandemic. Thank you, buddy. So hey, Jim, I'm calling you about Capri holdings. It seems like the most successful retailers during the pandemic have a strong ecommerce internet presence with online sales comprise comprising a significant portion of total sales, particularly with consumer spending those stimulus checks. Do you think a pre falls in this category and

8:48
what's your expanding triangle into it? They're not there yet. I think we'll get there. I actually like the company. I wish I had pushed it very hard, but it was lower. But I was afraid that what would happen was that the Chinese economy wouldn't come back and the Chinese principal buyers and stuff China's come roaring back the United States Well, I think gotta go when your kids got horsens Thank you for the call. And I hope I keep delivering for you. And now I'm going to john and Georgia john

9:12
Kramer. I have a question about Cleveland cliffs. CLS day go. Let's go to work. Hey, hey, my friend fan from Florida thinks CLF is already priced in but CLF seems undervalued compared to other steel in the sector. Vertical integration, multiple acquisitions with China planning, implemented export tax and cancel their 30% export rebate for exports out of China are practically non existent. Do you think that this makes the bullish case for

9:43
anything here anyway, that was something But the President can agree with the previous president. I think you're absolutely in great shape with clips. I was surprised the cleaning lists came back down. It did a big deal. The stock turned and flopped and chopped, and now it's ready for its next leg. Brian in New York, Brian

10:01
Well yeah Jim O'Brien since people are coming out again and and musicians want to play live I was wondering what your take is on Live Nation

10:13
I think I'd missed it. I think live has been a double from ever when people realize that you know what the cycle is the go out of your house cycle has started and it's been a winner and now I've got to wait for a pullback before I endorse it Alright, but the stock market it runs on cycles. Here's a bunch of my just found this looking through charts today. The average is hidden be pretty resilient because of the cycles. He find the gifts from anybody tonight these days and feel like they're very few issues democrats republicans agree on but the two parties have teamed up to tackle the semi truck shortage. Commerce Secretary Gina Raimondo joins me to discuss what it means for the economy, then can the video game stocks keep ROI higher as the country turns to the corner on COVID-19? Going off the charts to find out and grow generation continue to bank on throwing legalization trend on talking to the CEO so stay with Kramer.

11:12
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 get an edge invest like a pro access CNBC live streams around the globe unparalleled access to CNBC experts actionable investor insight and ideas start your free trial today@cnbc.com slash Pro.

11:53
I know we got a high quality problem. The economy's rebounding much faster than anyone expected. And when that happens, you end up with all kinds of shortages. We don't have enough semiconductors, we're not gonna have lumber, we don't have enough metals. Fortunately, a lot of this stuff is fixable. We just need supply to catch up with demand. Government can make that happen. Take the semiconductor shortage, we desperately need new capacity or now the White House is pushing to build seven. That's right, seven semiconductor foundries right here in America. And that's why we want to check back in with Commerce Secretary Gina Raimondo, who is spearheading this entire semiconductor effort, get a better read on the situation. Secretary Mondo Welcome back to Mad Money. Hi, Jim. Great to be here. Thank you, Madam, madam secretary. There are very few issues that have national security, higher education and ability to be able to manufacture things in this country, as well as jobs, this issue incompetence all are we going to get this done?

12:57
We are going to get it done. There's no option, Jim. Think about how devastating the impacts would be if we didn't get it done. You just yesterday I was out at micron, which is a leading memory chip manufacturer actually the only one in America. And I was there with Senator Warner and Senator Cornyn, one Republican, one Democrat. And we were talking about how we have to get it done. Because if what you say is true, there's disruption all over supply chains. But nothing is important to semiconductors. When the semiconductor supply chain is disrupted, the economy is disrupted. There in your your dishwasher, your car, your computer, your headset, your phone, military equipment. So

13:40
yes, we're going to get it done. The Chinese have much of their semiconductor capital equipment and making in one area, the tie we want these have done the same. Can we do that? Because it sure does help for cost. If we put all this in one centralized location.

13:57
Well, it might help for costs, but it makes us more vulnerable. And it doesn't necessarily help for resilience. You know, Taiwan, for example, recently was experiencing a once in 70 year drought, semiconductor operations need a lot of water you saw in Texas, with the storms, semiconductor operations and other manufacturers were, you know, out of business for a short period of time. So I think what we do know is this, we need to be make, we need to be producing the chips in America to a greater extent than we are now. Because you want to be producing where you are selling, which takes the logistics out of the equation takes a lot of risk out of the equation. But if we're going to do this, it should be across multiple states within America. So we have some resiliency.

14:48
Madam Secretary, how did this happen? You're on this listening tour. How do we let everybody go? How do we get to the only 8% of semi cap equipment is sold in this country? How did this happen? It is such a terrible danger for our country.

15:03
It is. And let me tell you, it didn't happen overnight. Certainly COVID has made it worse all supply chains. But this is a problem that's been in the making for years. It wasn't that long ago that we made 37% of the semiconductors that we needed in America. And that number is down to 12%. And we make 0% 0% of bleeding edge leading edge chips in America. How did it happen? You know, as well as I do it, there was a desire to produce things. And in low labor costs countries, you know, in Asia, there was, you know, we got out of the business of manufacturing electronics and processors in America where labor was more expensive. Everybody rushed to just in time inventory. And it was thought that it would be less expensive to make things overseas in Asia, by the way it was, but now look at where we are, we've kind of decimated the industry. And we desperately need to rebuild and do so quickly. Do people in Washington, both parties realize how important this would be for people to study math and science, it could lead to a resurgence of the study of math and science at all grades, and college if you do this. I agree you, I should take you with me on my rounds of capital. This is the

16:27
most important thing I've tried to champion on the show in years, madam secretary in so important for our country,

16:34
I think yes, not everyone, not everyone to the extent that we might like but it's starting to come into focus for people. And and I certainly view this as a huge opportunity. At last week, I hosted listening sessions with semiconductor industry leaders, I talked to 35 of them across a couple of different sessions. They're all talking about skills, we can't make these chips without having the science and technology engineers, technicians who can fill the jobs. And so it's an IT IS A it's a crying need. And it's by the way, it's not just economic security, this is national security. And underpinning all of that is a workforce that has the science technology skills. I know

17:23
there's a terrible thing happening in our country, which is that there is I think, a level of discrimination and even violence toward Asian Americans. It's a travesty, this is an important month to celebrate an important month for awareness are the Taiwanese, a believer, perhaps at the highest level, that United States is not good to Asians, and therefore might actually want to side more with the People's Republic of China out of solidarity versus what we're doing to this important minority in our country? Yeah.

17:56
So first of all, I want to echo what you say that there is no place for racism in it of any kind. But as you say, recently, we've seen it increased towards Asian Asians and Asian Americans, and there's no place for it. Secondly, No, I have not seen I have had a lot of interaction with tsmc, which is the Taiwanese producer of chips. I have talked to the CEO multiple times and his team, I don't think there's any reason to believe that they have been a good partner. through all of this. Having said that, it just stands to reason that it's too volatile and too vulnerable of a spot. If we're buying 30% of our chips from a Taiwanese company total. They're terrific. And they've been great to work with. But that's just to not a place we can afford to pay.

18:48
Finally, I know the republicans are involved with a counteroffer involving for infrastructure. I sure we'd like to take this out of infrastructure and make it national emergency defense. But how do you think things are going? Because I know politics has to play a role, even though you and I both know, this is national security. This is education. This is health care, this is everything that matters in this country.

19:10
This cannot wait. This cannot wait. I am hopeful that this will get through the Senate in the coming days, not weeks. This it This requires emergency appropriation, just like you said, and I think they're I I believe that there is that the will in the Congress to make that happen. As for the counter proposal from Republicans, we'll see what they come back with. But listen, that's progress. And you have to give President Biden credit. He said to us his team, reach across the aisle and work as hard as you can to find bipartisan agreement. And now we're hearing as you said, Republicans might be coming back with a with a trillion dollar counteroffer. I don't know what's in the offer. We have to see if it's real, but the very fact that we're still talking They're coming back with a potentially trillion dollar deal is his progress for sure.

20:06
Well, I wouldn't want to give him credit but credit where credit's due. Madam Secretary, thank you for everything you're doing for this incredibly important issue for America. Great to see you again. And see. That's Gina Rimando, US Secretary of Commerce people. I cannot tell you how important this is. This is what keeps me up at night. We have got to be independent when it comes to technology. They have monies back in

20:28
coming up, game on could the big video game makers go head to head with a new generation of digital diversions. Kramer goes off the charts 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 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 CNBC councils.com slash WEC.

21:17
Can the video game stocks keep working? Now that we've analyzed the pandemic and they're up against much tougher comparisons? Maybe they can. We know this industry has been on fire ever since COVID sent us to the lockdown, but that's part of a longer term secular trend toward more immersive entertainment. games aren't going anywhere as the world goes back to normal. In fact, the last time Netflix reported CEO Reed Hastings made it clear that he wasn't worried about competition from other streaming services. He considers the gaming companies his biggest rivals. Now we're even hearing chatter that Netflix wants to watch its own gaming service. More importantly these companies keep reporting great numbers. Last week it was Kramer fav take two interactive the week before it was Kramer fav Roblox, which have come to the table just last night doesn't hurt that other than Roblox, these stocks will pull back from their highs earlier this year. Plus later this week, we get e three. That's a conference is like a festival of all things gaming could be a good catalyst depending on what gets announced. So how much more upside could we be looking at? That's more of a quantitative question. So to get an answer, we got to go on emotionally off the charts with elbow Bob Wang, the founder of explosive options.net as well as being the brain technician in the all star duo behind the street dot coms trifecta stocks newsletter. He's also the author of know your options. So let's start with roadblocks because their platform is the hottest thing in the industry. Now remember, roebucks has a whole ecosystem that lets amateurs and professional developers make their own games and then share them with 10s of millions of people yes, free content for Roblox. It seems like every kid is using Roblox and let's play fortnight like I told you last night. I'm a huge believer in the fundamentals in part because this is arguably the only safe place for children on the internet. But what about the stock though? Check out the daily chart after moving sideways for a couple months in the wake of its March IPO. Roblox caught fire when reported the week before last. And it's been trending higher ever since Lange points out that if it keeps gaining buyers on every dip, it's going to keep going higher and that's just what it did look the stocks make it pattern of higher lows and higher highs. That's exactly what technicians love to see. You should always be looking for that it means you've got a healthy uptrend. Look at this. I mean this is just fantastic. Here to hear. That's what you want. When you look at the RSI relative strength index, which is down here at the bottom, it's an important momentum indicator language the trend is very strong, but that stocks getting overbought territory good. In other words, it hasn't come up too far too fast. Currently, robox is trading at nine bucks. It look like things this thing could be smooth sailing to 100 and then 120 by the end of the year. It's easily his favorite name in the group. I agree with him in a market that generally has little patience for these fast growing tech companies with no earnings robox has managed to rock and hire that tells you everything you need to know just imagine how well it can do if the turbocharged growth cohort actually gets its groove back by the way chaiken money flow is just extraordinary here and there's a beautiful crossover This is all beautiful but let's go to the next show it's going to take two interactive now this is another one we love here on Mad Money remember we use that straw so click on this we get some come with a bunch of Grand Theft Auto Red Dead Redemption a host of other major franchises MBA cake last week take to report a tremendous quarter with cautious guidance. But that's what it always does. This time the Wall Street figured it out right they did under promise over deliver and that's why the stock exploded higher on the news jumping from the 160s to the 180s line points out that when take to me that short move higher.

24:40
It passes through moving average resistance and there's the resistance line so when right above that, okay, it's now above the 50 day moving average Should we go pink? That's what what is what would you call that move? I don't know what that I like that color, which is something which is something in charters cake good enough. It means trajectory is improving to lying. It's like He just made a W pattern. Oh boy, do we like that right? And that means it could have a substantial move up upward as long as that right side of the base gets carved out and that's what's going to happen here. Meanwhile, the moving average convergence divergence with the MACD look at this right here, it's it helps technicians detect changes in the stock trajectory before they happen just been a very powerful bullish crossover. That's where the black line okay goes over the red one. And as far as the technical patterns go, it's a pretty reliable signal that it's time to buy. However, the chicken money flow indicator that's CMF Alright, it shows you whether big institutional money managers are buying or selling it still hasn't showed you very much. On the other hand, like says the vibe trends are bullish the stock just word on high vibe, which suggests the rally has legs and there's the VAT there's that excellent volume spike put it all together like when we surprise it take to first gets hit with a pullback, no hurry here right gets hit with a pullback to 170 but longer term he sees the stock headed higher, perhaps all the way back to its old highs around 215. If we do get a buyer, if we get a pullback, you must buy this stock and remember the pullback won't be very deep. Okay, now, finally, what about Activision Blizzard the largest player in the industry doesn't have its own hardware. Here's the daily chart. Activision reported a pretty good quarter earlier this month, although not a colossal beat like Roblox or take to Activision chart was momentum in February. All right, back when we had a major pandemic winners started getting hammered as investors rotated to the great outdoors right the reopening stocks. Activision quickly stabilized though and Lang sees a W shaped pattern there it is, again, which would be very bullish, plus earlier this month, the MACD through a bullish crossover. Alright, let's go down to the MACD. There's a bullish crossover right there. And that's a buy signal we're getting right now activists is trading around 96 bucks likely to gain steam. If the stock can break out over to your persistence at 98. Up listen to buck schmear. The line believes that breakout can take this thing all the way to a new 52 week high of $110. Here's the bottom line. The charts as interpreted by Bob wine suggests these gaming stocks have a lot more room to run. Makes a lot of sense to me. I think people still have a huge appetite for gaming, even with the world going back to normal especially Roblox which is like a digital babysitter for parents that won't expose your kids to horrible things. Andrew a Massachusetts Andrew. Hey, Jim Mario. I am good. Andrew, how are you? Good. Thanks, Andrew from Merrimack college here. Thanks for having me. Kids are in what's up?

27:35
My questions on Zillow, the stock's down about 44% since its high in February, do you think the sell off is a good entry point. The company has the largest user traffic volume real estate listings and has shown significant APS growth with the possibility of interest rates to rise to

27:51
I think it should be higher. But I have to tell you I don't like the chart. And you know the person was on the other day. It told a pretty good story and that the stock didn't move. I'd rather see you in an actual home builder than I would see you in Zillow. I like FinTech in real estate less than I like actual real estate. Even in some overtures normal the charts suggest that the gaming stocks have a lot more room to run. But we're mad money and including my exclusive we grow generation with us at the company's experience California footprint. I'll find out if you keep making you green. Then the wait great markings for wife today. What What do you have to say about this market? I'm taking a yes, lawyer calls rapid fire tonight's edition of the lightning round. So stay with Kramer

28:49
the Cannabis Stocks finally found their footing, like so many spective places whole group has come down dramatically over the last few months. But some of them have begun to bounce. Take regeneration. The hydroponics retailer with the stock that's been a huge winner for us, even after the recent sell off will grow generation poor nearly two weeks ago they delivered a blowout quarter. And nobody came. The stock actually dropped 3% The next day, although at one but it was down more than 7% systems made a serious recovery up 10% from Lowe's, and I'm starting to wonder if we've seen the bottom. I really like the fundamentals here especially as the company keeps acquiring smaller hydroponics retailers and rolling them up like they got another one today in California. So let's check in with Darren Lampert. He's the co founder and CEO of grow generation get a better sense of what the quarters going what's happening. Mr. lebryk Welcome back to Mad Money. Thank you, Jim. Alright, so Darren, I'm beginning to think that perhaps people are recognizing that even if the Cannabis Stocks aren't doing that, well, a company that is selling to those who want to grow cannabis can be doing far better than the price of cannabis. Are you starting to feel that maybe your stock can pull away from the pack

29:59
Can we switch Hope so we've had a tremendous growth spurt from 2018 to now, up 15 fold in revenue on even a positive we make about between 54 and $58 million this year. So this company is almost earning $1 on an adjusted EBIT basis right now.

30:18
And it also seems like that you're able because your stock prices, good price that people want to sell to you, I think that this new acquisition you just made in California is gonna immediately produce results immediately.

30:32
chimiques in every acquisition we do on repro produces results immediately on their best of breed. They're all making money. And the nice part is we're bringing we're bringing our staff into these stores will bring in our selection, our service, our supply. And what you're seeing, really Jim is same store sales are rocking, they were up 63%, last year, a year before 37%. We just came off of 51% of first quarter, you're seeing growth on stores, we're buying legacy stores that have been in this market for a long time mature stores. We're making them better, we're revitalizing them. We're bringing tremendous growth into the stores.

31:10
Yep. You guys must do some forecasting of states that you think could go, let's say the next 12 months. Do you see a roadmap of half dozen states that could legalize more than that, because it's obviously bringing revenue in everywhere. They're legalizing? You know, we're

31:27
we're extremely excited about the East Coast. On Governor Cuomo came out with some certainly some wonderful news. Last month on on licensing in New York craft licensing. 50% of licensing go into the under represented a home grow rules. And we believe that even though it hasn't been inked yet, but once it gets sick, we do believe that the rest of these coasts will fall in New York, and hopefully New Jersey falls also with home grow craft, and just more robust licensing allowing individuals to grow.

31:59
Now there one thing I think you need to tell our viewers is, look, I'm a gardener and I play a speaker I planted beans, I planted some tomatoes. This doesn't work like that. You can't do this kind of farming without without the help of Darren Lampert in his company. Correct.

32:16
It's true, Jim. It's controlled environment, agriculture, it's growing indoors. It's controlling environments, its consistency. Its irrigation systems. It's fertigation. It's benching it's lighting on it's it's it's the inputs that go into a facility to keep keep the quality consistent. We do believe that the urban and vertical movements will follow the cannabis movements in this indoor growing craze that you're seeing in the United States right now. This technology is so specialized, Jim, that you have to come to a hydroponic store, and most likely it's grow generation.

32:48
So there I was at Home Depot and Lowe's and last two weeks. They don't seem to have any inclination to be to go into this market. I think it's kind of like you've got an amazing runway, maybe they just don't think it's wholesome. Or they just don't have the expertise. But they seem to leave it. They don't leave it to you.

33:06
Sure, I think a lot of it has to do with the expertise of growing, it's controlled environmental agriculture, its technology on its having individuals working for you that understands the plant, the sciences, we have over 500 growth pros working in our stores right now, over 625 employees, they know how to grow plants, they're their value add to the supply chain on milagrow. Jen is building really his network capability to better serve our customers, more stores, more distribution, more private label products on and it's winning, it's winning right now. It's selection service solution. And really, it's the it's the model of growth and doing it in an omni channel approach.

33:45
Now, how about these greenfields? ingestions, you mentioned the last conference call? Is that something you want to do because there's so many people probably want to sell to you.

33:53
Jim, our business plan is to buy stores in mature states best of breed that have employees that have been in this industry for a long time. So we have a really a bullpen of employees to root to move around the country when we start Greenfield stores in new states. We've been quite successful at both. When you look on the East Coast right now, when you look at new emerging states, there's very little to buy in these states. They're really old legacy hydroponic stores, akin to the hardware stores back in the 80s in the 1980s and 90s, that are no longer here to that.

34:27
Now this one of these is really fascinating to me, and I think it'd be great private label if you're able to this partnership with Baluchis farm. Tell us about that. I think that people gonna want to buy the stock just by what you're about to say.

34:41
You know, Jimbo, which is one of the iconic individuals in this space right now. We started working with Jim about six months ago, and since we've been working with Jim and Bill helped building out his farms, his plants have been dancing like The Blues Brothers. That was a direct quote from Jim mom a few weeks ago. So there's such opportunity Jim, Jim is a pioneer in this industry. And we're working very closely on a bunch of different partnerships with Jim and we look forward to really working on this relationship and, and certainly bringing a lot of new innovation to the industry.

35:15
Right. So when you look at the non retailer acquisitions, explain those to be there's eight of them that have happened. char acquire these are I'm trying to understand, and maybe you can help me, I'm just, I just don't know the industry well enough, you know it really well. So maybe you can explain it.

35:31
Jim, we're always out there besides it into our store accounts, or we're writing to our private label and proprietary brands. Last year, one and a half percent of sales from grow Gen will private label products. This year, we're expecting 10%. We did 6.2% in the first quarter of sales. So you're seeing a tremendous lift in our private label products. A chart for is one charcoal is a cocoa product, that we've had tremendous, tremendous success in selling. But it was a product that was coming into our stores that we saw taking off on everyone was asking for So is this a product that we want to own ourselves off? Same thing with power Si, it's a powers. It's a salicylic acid product that makes the plants stronger. So through our staff and through our customers, we're seeing some best of breed products out there that are really looking for the professional team that grow Jen has to sell these products and bring it out into the into the industry.

36:26
Well, I think you've got a great model. I think that that I can see the private label is going to be good other companies should be selling to you. And I love the fact that the big competitors, the big box, they're not going against you because they don't have the expertise or the technology, Darrin Lampert, co founder and CEO of grow generation with a stock that I think's gonna break away from the marijuana quotient. Because it's not that it's all about growing. Thank you so much for coming on the show. Dan. Great to see you again. Thank you, Jim. That's that's a winning stock. All right, and it's come all the way back down for no reason whatsoever. That Mike's back into just chill. Chill master j the chill man is in the house. He's happy.

37:06
The lightning round is coming up. When bad money returns. It is time it's time for the lady. And then the lightning round is over. Are you ready? For the lightning? Talk with Robert in California Robert? Jimmy Choo. How's it going, man I am doing well. How are you? I'm good, man. I'm ready to travel. I'm ready to come back from New York. I don't play Me. Me. I'm calling about sun over energy.

37:41
It's tough stuff because all the soldiers toxin going down. Because after the kleinian price over and over and over, they finally started going up in price and that is make them to be less competitive. I have to stay away from silver. Let's go to Brandon and Brandon in Virginia. Brandon. Hey, Jim. How are you? Alright, how are you? Very good. My question is about Alibaba Group together. This stuff has come down a lot Alibaba and I do like it here very much. I think you should buy it and put it away. Let's go to Luis and Raquel and Luis.

38:11
Hey, genius. Luis. How are you doing? I'm doing well. How are you? I'm doing great. Listen, I've been looking for something in the copper because I missed a huge move in my portfolio. Okay, and now I'm a stock guy not an ETF. So I found this powerhouse, sir. Has copper but has think has potage has or has aluminum. Iron and guess what? throwing some oil and gas plus a wonderful safe dividend of 4%. Why did you say my stuff? Is bhp

38:45
highlight bhp? Of course I remember is your Broken Hill properties. I think you've got a good one. That's a great idea. It's a nice mosaic of what is working right now. Molly in New York, Molly.

38:57
Hey Kramer, longtime watcher. First time caller. Because of you. I've been interested in investing. So thank you for all you do. That's terrific. Thank you. Thank you very much. So I joined this investment group, the Bates group. We're like an amateur club and we have been talking about their two financial bi RT.

39:18
Y get it to welborn. Look, we know people from it. It's a very good financial company. I think it's shinda. It's Jimmy trout selling at a higher price and it has very low price earnings mode. Will I be a buyer of it? I think you're in good shape. And thank you for the kind comments. It's going to bill and Zach go on a bill. Blue. Yeah, Jim, how you doing? Well, I don't know. I got some sort of allergy thing. It's really not coming out. How about you? Well, I know ours is here. Thankfully. First of all, thanks. I'm actually plus member first. Thank you. When I will, I want to thank you for all you do in the area for doing my best. Thank you so much. My question is about jd.com Yeah, there's been very weak. You know, a lot of people do not like the Chinese stocks right now. JD is almost as good as Alibaba. I think it is worth holding. But understand the trade war. I understand the temper of times is not going to invest in the PRC, but that one's a good one to read. northcarolina Brad.

40:19
Hi, Jim. It is a privilege and an honor to speak with you today. Thank you. I want to thank you so much for taking my call. Cool. I would like your thoughts on DJs wholesale club

40:33
DJs. Why not wait till Thursday when Costco reports because if it Cosco doesn't do a good job, then PJ is going to go down you ever pick up PJ's which is going to be end up being having nothing to do with Costco. And that wage of the conclusion of that lightning round.

40:50
The lightning round is sponsored by TD Ameritrade. Coming up Kramer's a magnet for finance. What big money ideas are being pulled in by his positive charge. Get stuck on success. Next.

41:15
I am a magnet for anything financial people talk to me about everything that moves. Whether it's something I fall for decades or something I'm furiously studying so I can keep up with what's working. The way great markings always called me, Reverend Jim Bob from the Church of what's happening now. That was my moniker. Because back then I had much more of a short term focus. If Mark canes were still around and still hosting Squawk Box, the first thing he did ask me is, what do I think about GameStop and AMC the pair of meme stocks that exploded higher today, I tell him that AMC is a great reopening store with a mountain of debt far more than top racers can cover but because there's a group of rabid investors who buy a any amount of stock, even 10s of millions of shares of CEO Adam Aaron were to offer them. We don't need to worry about the balance sheet. I tell them there's a Reddit message board called Wall Street bats. And those people step up new shares of AMC in a heartbeat, though by but this wall street bets commanded it. And that's what matters right now. As for GameStop, I'd say it was run by a spin golly, Ryan Cohen. Someone is worshipped by the same Qadri and he too can do it every once including nothing. The stock will rally anyway because Wall Street that's demands it and can keep climbing until they run out of firepower, which seems nowhere near the 200 level. Mark would ask me what's all those colored things they put up? What's this moon stuff? And I'd say it's just some sort of silly rallying cry, but because I say things like that these people hate me anyone to know what else they'd be championing. I said nothing. Mark would consider that unimpressive. What else? He definitely asked me about Cathy wood the money manager behind Ark invest who had great performance last year, but it's been struggling this year. The old me Reverend Jim Bob from the Church of what's happening now would say she got cast the right so nothing else matters. He question if that's really enough. Well, for the people chasing momentum stocks the answers, of course, walk with notice that she's from the Church of what's happening then, which is not as good as the church what's happening now. Which brings us to cryptocurrency. I can just imagine him again, asking me upfront, is it one big phony Cramer? He want to know why I sold most of my Bitcoin and the theorem near the peak. The truth is I got lucky, because I literally forgot I owned it and I needed some cash to buy form. Then I tell him the dirty truth. When it comes to the younger generation. Nobody cares about stocks anymore mark, they just care about crypto, there are lots of younger operators do nothing but trade various cryptocurrencies, of course on margin, maybe in slivers hoping they ignite, and they're making these bets with borrowed money, sometimes as much as 101. A Mark would say, well, that'll end badly. I reserve judgment. No, probably will bad someday. But I mean, like, Who cares? That doesn't mean it'll be soon and you could miss out on some big gains in the end, and boy, would that ever be me? virtually every day some new cryptocurrency turns into a quality asset and new millionaires are made. Plus you got a legion of proselytizers like Mike Novogratz, I see him on TV period periodically, and anti pompliano pop, who makes these things sound incredibly enticing blue chip, even when the whole crypto edifice has spent the last month getting crushed. The truth is, it's hard to keep up with all the new ones like tether which is actually some sort of wild transfer agent from cash to crypto. They'll tell me it's not new, but it's new to me. One that raises eyebrows. Hey, maybe both eyebrows, or Dogecoin? Which starters a dumb joke perhaps and joke's on you. If you missed out on a study move on past six months. Mark within ask if kryptos just like sports betting? I would say no. On the one hand, it's less rigorous than sports betting. On the other hand, you can put less money to work and potentially generate far better returns. That's what he throw up his hands and he'd say, if that's all young people want to talk about then go study it. Let me know if there's any way to help you. And that's what I'm doing. Obviously, there's not a lot of rigor to the process, but Reverend Jim Bob of the Church of what's happening now, what matters is that Elan musk makes the best environmentally friendly cars. And he likes crypto. At least today. Cathy wood loves it too. And they're the expert who matters. Who will be right long term. Who cares? Remember, that's the old me. As long as they're on the same team again, I think that the two of those people can get get the whole thing going. Musk in wood. He can't be dead right. And as for the memory of Mark canes, we have something special to offer. CMC is auctioning off and NFT of his famous bottom call in March of 2009. Now, I don't think he BNF t guy, actually not at all, but he liked it all proceeds go to charity. Autism Speaks in the council for Economic Education. You can bid on it at mental dot app slash CNBC until tomorrow morning at 1030 and I want you to do it. I like to say there's always a bookmark in somewhere I promised not to find it just for you right here on Mad Money. I'm Jim Cramer. cinnamal. The news whichever service starts now.