MAD MONEY 文字起こし 21JUN21　Boxed CEO, Cerence CEO & Reevaluating The Reopening Plays

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窶皿ad Money w/ Jim Cramer: Boxed CEO, Cerence CEO & Reevaluating The Reopening Plays on Apple Podcasts

0:31
Cramer Welcome to Mad Money. Welcome to create America, make friends to try and make some money. My job is not just entertained, but to put it in context. So call me at one 800 743 CNBC or tweet me at Jim Cramer.

0:45
Where were the buyers last week? Why did they only come out in full force?

0:52
With the Dow surging 587 points? The s&p jumping 1.4% NASDAQ surging points at 9%. We just had a vicious decline, culminating in a sickening Friday give up. It's almost too ridiculous to believe people hated Caterpillar down five last week now love it when it's up five. they despise the rails last week. remember they just said Oh, the West Coast port. Oh, no. What was me? Well, today, all the stocks are a big did they solve the port crisis over the weekend? Home Depot got obliterated last week.

1:30
Because people aren't spending as much money homes today have soared to something change has the home spigot reopened. In truth, nothing has changed nothing except the stock prices. I often say the buyer's or seller's are being dumb as a bag of hammers, but those of us who prognosticate for living, but we got to be a lot more careful about finding a reason for the day to day action. And when I say binding, I mean inventing. Often the real reason why stocks moving is not the obvious reason. Consider last week solve its textbook. A lot of that week this was just plain artificial. What do I mean by artificial? Well, first, we have a series of programs that played out on Friday, and they played havoc with prices. There was an s&p reweighting exercise a select real estate investment trust change. That put immense downward pressure on the market. We didn't know how or why and couldn't call it out who knew only those directly involved could understand the ramifications. But when you get those sell programs the same day that a Fed official James Bullard talked about hotter inflation and a need to raise interest rates sooner than expected. Well, it was bone crushing.

2:38
But it was also an opportunity.

2:42
And there could be another one coming up this Friday, when we get the huge rustle rebalancing the reweighting rs 1002 1000 indices, we don't know the direction of what will happen. But if we get any big news that could be interpreted negatively. I expect the market to go down, sell, sell, sell, and maybe it's opportunity. Now we better hope some of the big money managers stick around Wall Street because if they go to the Hamptons too early this Friday, what could it look like last Friday? Is this fair? Is it right? Well, that's irrelevant. It's the way the market works. Sometimes stocks move in. It's all about the mechanics of the market, not the fundamentals, all we can do is stop drawing Fattal conclusions from the action. You got to take your cue from Macbeth here, because there are days like Friday, when the action is a tale told by an idiot, full of sound and fury, signifying nothing. Second quarter of last spring selling. I always say the bond market doesn't lie. But bonds can still mislead you. On Friday, bond yields plummeted in that sentence, searching for conclusions. I heard all kinds of crazy explanations that delta COVID very can't be stopped. Anyone who has been vaccinated will get sick. Maybe people have been vaccinated or get sick, especially students will bring the virus home with them. So get ready for another huge way which will shut everything down. We certainly heard that right. Ah, that's insane. Now, more than half the country has gotten at least one dose of the vaccine. And we're working to try to get it to 70% get it by july fourth. What else? I heard the shocking rise in price is going to lead to a vicious rate hike cycle from the Fed. And Jay Powell. dovish comments were simply him playing good cop to the real cop James board, who's taking a more hawkish turn. I heard the situation with China is getting more and more out of hand. So there's a flight to safety and bonds. Oil spiking, always a bad sign. Finally within Europe about the experience yet another round of COVID the bond market there represents no value. So foreign investors are swapping into US Treasuries. Let's think about this. Some of those explanations even sounded convincing. But then when we come into today, oils rally like bad no one cares markets a huge banyule sort undoing most price action. It's like that move never happened. Given this stocks react to bonds today snap back in Treasury yields made this rally inevitable at this

5:00
point you have to recognize that there are times when even the bomb working can't be trusted as Bronner, it led us astray on Friday when there is a tidal wave of selling like we had last week. So

5:13
it's incredibly daunting for you. I mean, I went out quoting one of my best hedge fund sources saying it was a fantastic opportunity, but looking for when I checked in with him today I asked what he knew he just simply said things look good. Why not be alone? He did no sell you to today. Of course now we have to figure out which move is lying. Which one's telling the truth today or Friday. We can't say the jury's back in today's move is the real one because that will be too glib. Rather than trying to judge the overall action. I think the right move is to buy great stocks like three opening plays and travel companies. The favorite oil, Chevron and Pioneer are the companies that have just reported incredible numbers like Adobe it's not too late to buy something like the gap which just came on the show last month told us a terrific story. Yet it stock has done nothing. You don't often get a chance to buy the stock of Home Depot down 40 points from its high do you sure it was up today but it's still down big versus where it was trading just six weeks ago? I'm still mystified by what went wrong. It kept with Cal tummies first, Danielle speedy is at the United Parcel company where she CEO she fought him for a specific reason to stop sacrificing more dollar take to take some market share but run the company in a far more disciplined way FedEx reports this week. I mean, what would she really do? She's instead of just trying to take share who we make more money per envelope Anyway, she reiterated the game plan that they didn't take the job and somehow the stock got crushed. That's crazy town. Finally, I had a market especially choice we I don't know if you caught it. The new CEO Steve squared he came to this bar San Miguel, which is a Mexican Tavern in

6:45
Carroll gardens. And he told a story about new products that will let Amex take share at the register for small and medium sized businesses. He made it clear that the great reopening is even stronger than we think. And his company is uniquely prepared for it. Given that few of the companies share that ready stance you probably can count them on one hand how you cannot buy some American Express your stunning Yes. Do you know that the stock rallied one day and then had three straight down these as if nothing new was said when I interviewed Steve it was all new For heaven's sake. This markets gotten so fixated on the main stocks most of which are now horrible performers that doesn't get the blue plate specials when they're placed right in front of you. Now though the markets overcome last week's negativity if history is any guide that should bring out defenders galore typically not for the stocks that are down No no no. But for the ones that are up so much no sense and getting mine and AMD where you can push a Texas Instruments or an analog devices. Why not push Honeywell down like zillion from its highs or Lockheed Martin every just heard on squawk on the street, how great things are going. So here's the bottom line. Tomorrow traders will go for the winners, not the losers, because it looks like we forgot everything. It took us down on Friday. Otherwise we wouldn't be up so strongly today. And by for God. I mean the artificial forces that drove us down,

8:07
have disappeared. They're no longer in play. Let's go to Carol in New York, Carol. Hey, Jim, what is antastic conference call? You'll just outdid yourself.

8:18
That was a low win fraction alerts where I kind of tell it like it is thank you so much cow What's going on? Thank you. Okay, so I was remembering when you prepared us a few months ago for a lot of pain in the tech stocks but that we should just sit tight. And I wonder if the same can be said about some of the industrials. I won't be here for a while. And I have a general question and a specific one. Sure. industrials, jumping today is indicative of some change in sentiment or just a momentary pop. And is do you think Dears, two and a half percent gain is just part of that or is the way that deal adding a strong reason to stay the course. All right, you're right. I think last week was artificial, because there was a rebalancing. There's another one coming up. And but the one thing I would say, Carl, thank you for the comments about the actual list plus calm. There's a June 30 crop report that comes out, the government releases a crop report. And if there's a bumper crop in corn and corn plummets, then Deere will go down. But that's really just a reason to buy more gear because it's doing so well. And it's a multi year move as we learned from agco. Thank you for the kind comments. Let's go to Marcus in North Carolina Marcus. Booyah, Jim Marcus. Happy Father's Day to you. Oh, thank you same. It was glorious. What's going on? Fantastic.

9:42
One question for you is about micron. I notice a chip shortage but this stock

9:50
market and they report earnings next week. I was wondering what your take might be on micron. It's very tough.

10:00
Because while this chip short it's not really micron ships, we started seeing some decline in pricing in some of those I liked micron but not as much as I like AMD where I think once it closes with Xilinx is going to be a very different company. Let's go to Tammy in Maryland. Tammy. How you doing Mr. Kramer? I'm doing well. How about you Tammy? I'm on a mower. The stock I'm calling about today GE power GE for some time now. Today they announced a reverse stock split. I'm just a little tone. I don't know if I should hold so

10:34
I want you to hold GE This is Larry copes company now. He's doing a lot that's right. I would say buy at the drop back to 11 but it hasn't been there. I think you're in great shape. Okay guys, tomorrow's traders are going to go for the winners not the losers because we seem to have forgotten everything that took us down on Friday and the whole rant last week. Amanda Great to see you box join me right here for the first time four years ago. Now is coming public via us back go well I talked about full circle I don't miss by Susan find out how the company is preparing to take the tape. Then why the stocks didn't well during the pandemic may have an uphill battle to climb in this market, including one very big one. And what does it seven years of shortage mean for automotive software company like CERN's? If they're in so many cars. I'm talking to the company CEO so stay with Kramer.

11:29
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11:55
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12:18
Shoot this back attack came screeching to a halt. Because there were far too many deals to digest. And the SEC started cracking down on but there are still 100 specs out there looking for startups to merge with. And we're watching to see if any of these deals might be enticing. For example, last week, Seven Oaks acquisition announced that it's merging with box, which is like a digital big box retailer selling food, household and lifestyle products in bulk over the internet. The deal didn't create much hype, the stock of Sevenoaks barely budged In response, but you know what? For you, that's a good thing. It means you're getting a decent entry point. So could box be worth learning. The company's got an intriguing concept and an impressive growth rate. But it's an early stage story that's losing money with no expectation profitability to 2025 at the earliest. Also, of course, we know they're savage competitors essentially like Amazon, Costco. Still, it's worth a closer look. So let's dig deeper with che Wong. He's the co founder and CEO of box who was last with us back in 2017. Tears pitcher head of the SPAC merger was Seven Oaks acquisition. Welcome back to Mad Money. How are you?

13:28
I'm good, Jim. Thanks for having me back. I was on off the tape years ago, I was wearing a hoodie. We're still a private company. And now I'm wearing a suit. So it's good to be back after all these years. Well, I always loved your concept by drive by and all the time on Route set when interstate 78. But I have to say I was hoping that you would do a public offering so that people would get to know box better. How are they going to get to know it now that you're just doing with the SPAC? Well, that's one of the big reasons why I'm here on your show. But overall, we felt like spec product was great for us because of two main things. One was the quantum of capital that we can raise that we can then use to drive marketing drive assortment expansion, and then to the ability to really tell the story of our b2b business recovering after a difficult year last year with COVID as well as our SaaS business. So it's the reason why we want this back. And there are trade offs with SPAC versus a traditional IPO process. But we think the spec product or the spec route was the best one for us. Well, they you mentioned inspirational, the reason why we had you've got off the charts because I was just so taken by your story. Personally, I want you to share with people because it's pretty inspirational in itself.

14:36
Yeah, you know, we started off in a garage in tropical New Jersey, just central jersey, if you believe that there is a central jersey, but overall humble beginnings. So I grew up as a as a child of immigrant parents,

14:50
without a bunch without a silver spoon in my mouth and to be able to live the American dream and to be on your show today. And to drive a business to the point where we're about to be a public company wild

15:00
doing what's right for the front lines for those same folks that look a lot like my family when we first came to America. It really is the American Dream personified. Now I feel like you know, I love Costco you watch the show, you have one of the secrets is the Kirkland brand. My wife tells me that your brand is above it is a terrific brand, and it's getting more and more share. So why don't you tell us? Because I think that what's going to happen is if you really want to know where I think the money is, it's in the private label.

15:28
That's right. So private brand already has become you know, it's only about 100 items that we have for sale, that's private brands. But on 100 items, it's almost 15 to 20% of our our monthly sales these days. So folks out there that really value not only the price, but also the quality of the product, just like your wife, she seems like a very smart person, Jim, if I say so myself, really helping us drive that private label private label penetration. So it's called Princeton spring is a private brand. Well, she wanted to be to ask your data to streets in the villages that way. I said, I don't know.

16:02
So it was originally called prints in green. But then we had this epiphany that we realized that there's already a PNG that sells some of the items that we sell. So we went with the other st which is Princeton spring, but but hopefully we're not taping this and hopefully nobody out there will will remember this. But yeah, Princeton, Princeton spring, they don't really intersect. But that's the genesis of our story. Exactly. Now in front us, we've got I think, some kind of choice items, we've got a huge box of Pirate's Booty, I think that a lot of people feel like they just go through one after another. I bought one at Kings on the way home, I should be doing what you're doing. Obviously, he had giant rolls of badness case of bounty unbox of happiness. I mean, this is how people want to have things right they want to deliver to their house, and then one giant does our portions.

16:50
This is America, what we do is we serve as folks, not only b2c customers, but b2b customers with big items, big savings all across the country. Now, those things that you're buying, it's not just for folks that live on the coasts when we first started, we were heavily by Coastal. But one of the biggest trends that we've seen since we've been on your show is really the shift to more of the suburbs as well as a rural audience. So if you think about our customer base, we service a lot of rural areas where folks don't live within a 30 6090 minute drive of a Costco, BJs or Sam's Club. And these folks don't have access to a physical warehouse club, don't have access to physical wholesale, and probably don't have access to any of these courier kind of startups out there that bring those to your home because they just live so far. in the countryside, right? b2b customers. Yeah, sorry.

17:40
Wait a second, Costco can kill them. But not if Costco is not an accident. And you also have a software business that is that's pretty intriguing. Nick can be kind of Switzerland, right? That's right. So when we think about box, the thing that makes us unique is we're not only an ecommerce wholesaler that services b2c customers, but we also serve as b2b customers think fortune 500 companies SMBs, we should be servicing the CNBC greenroom when you guys have guests back to all those snacks, pantry items, that really is our wholesale business. But that technology that powers that entire business makes us really unique. And we can now package that up. And beginning this year, we've begun selling that technology via a software business that enterprise retailers all around the world. So we're going to generate we're looking to generate $12 million in software revenue just in this first year alone, because there's a lot of companies out there that could really use a revamp of their e commerce technology and their omni channel capabilities. I couldn't agree more. And that's why I think that this very rare to get a spat where there's a bargain under 10. Merging smart guys I know. Drew Pearson from general when you speak general Atlantic really, really terrific people you've got at Sejuani. He's the CEO and co founder of box. I'm so glad the success you had for the last time you're on. And I wish you the best of luck. You're terrific. Appreciate it. Thanks, Jim. Aware time next time. Absolutely.

19:01
They invite me back to the break.

19:04
Coming on this summer, America's reopened for business. How can you catch him on the season's hottest trends? Stay with Kramer and find out next.

19:18
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19:56
to find so great reopening stock, all sorts of crap.

20:00
Just keep trying to build themselves as return to normalcy plays. But in the eyes of the market, there's only one constant here. If a business did well during the pandemic, Wall Street's convinced that it's a COVID play, and only a COVID play no matter what it's doing right now,

20:16
by definition, the pandemic winners are seen as reopening losers. In reality, I think that's wrong in terms of the fundamentals. Plenty of pandemic winners are also reopening winners, but that's not how the stocks trade. Kate Thor industries the world's largest maker of RVs and motorhomes both the ones you can drive and the ones you can tell. These are not your grandfather's motorhomes. They're technological marvels that appealed to pretty much everyone. I say everyone because their lineup is sold out for the rest of the year. The demand is that strong. Yet doorstop. P three months ago at 152. Before we knew anything about how the people how people would live in a post pandemic world, the darn thing plummeted to 125. A week later, then the stock started a long recovery back to the high 140s in early May, where Pete again without taking out its previous high always a bad sign. Since then, it experienced another sickening decline in the third quarter phenomenal quarter a few weeks ago with a magnificent $14 billion backlog. How come nobody cared about the quarter. First putting the pandemic aside, Thor's raw costs have soared led by steel and aluminum something that will crimp their margins eventually, given the level of demand here I think they can pass most of those costs one of the customers the real problem though, many investors are convinced that people won't return to their air shoes because hotels are now safe again and air travels roaring back. They view this as the last good quarter before the reopening makes the word irrelevant. Now I think they're wrong. They're just paying too much but they controlled the stock that mean Alright, we're seeing the same thing with Brunswick, the boat maker which took it out its all time high with a run to 115 in May May seven again ha just like Thor before sickening slide down to the low 90s like Thor Bruns which essentially sold out of many miles. I know from firsthand experience, I had to plan ahead six months to get my new Boston Whaler. Luckily I placed the order last year and it arrived in time for anniversary. Like for Brunswick business has only gotten better thanks to the freedom Boat Club where you can rent boats for day and all the people went sailing to the pandemic because of a safe way to go out. There's a whole new wave of consumers who love boating. That's what's so frustrating about these two stocks. COVID didn't just give them a temporary boost. It was a long term game changer. People who might never have looked at an RV or boat tried them and loved them. The backlogs are ridiculously long, customers have had ample time to cancel their orders. Now the pandemic restrictions have been lifted, but it hasn't happened. Both companies have excellent management led by Bob Martin authority David folks of Brunswick Bob in particular is a real straight shooter with a history of being self effacing and straightforward. When business was suboptimal. He came on and told us that right now he's downright effusive. Yet none of this seems to matter the stocks I keep shouting the foreign buzzer have lost their cyclicality, secular growth but Wall Street's not buying it not one minute. The Bears are convinced that there's no way business can stay this good. Hence the ever shrinking, shrinking price to earnings multiples on great numbers. And look it's not just boats motorhomes. None of the pandemic win winners can catch a breaker day. Here's one take Campbell Soup okay by man phone mission Campbell Well, there were real execution issues late let later quarter last quarter and by when I say execution, they pointed him out right. They missed some projects that cut the forecast, but the company is undeniably taking share in both soup and snacks the Pepperidge Farm Snyder's of Hanover pretzels, arguably if there were no COVID if Campbell Soup didn't have a huge year 2020 Thanks for stockpiling, and you simply looked at 2021 versus 2019 called a gap year, the company's solid organic growth would probably be enough to send the stock higher rather than pushing it down near its low. Unfortunately, Campbell Soup won't get any credit until CEO Mark Klaus can explain it. He's got to demonstrate now that costs are under control. And the customers who tried his products during the pandemic are sticking with it. Give it this is the seasonally tough quarter though I mean maybe it may be soon the bottom. We know the video game stocks have had a tough time take two interactive almost always reports a great quarter with conservative guidance. When they did the same thing in February the stock got an eyelid pump from 213 to 161. In one month's time, since then take to struggled to get his groove back. Even though business is booming and they got a terrific slate of new titles in the way EA, Activision Blizzard are performing a little better, but they'll go out of style too, unless they can prove that more people got hooked in their products this quarter.

24:46
The most frustrating companies are companies that got a boost from a terrific news story during the pandemic. But now they're having a real hard time pivoting back to an old story that worked a narrative that needs to be revived in them.

25:00
most obvious what this we're sure we got excited by the strength of Disney plus and the stop sword once the company cleaned up the balance sheet. Now though the narrative should be all about the reopening of the theme parks Parrish just came back last week and also having to return to movie theaters the first one Disney movies. No, if I were the new CEO Bob cheap I would personally call Whichever team wins the NBA championship get this, get this start in five, invite him down to Disneyworld for a huge celebration. And I tried to hang out with them too. I also hold back the movies from the streaming service to get people excited about going back to the theaters again if only to show Hey, look at us. We are the company for entertainment outside of the house once you show me on cruise lines. Instead it's easier for me to come out and recommend something like Cedar Fair is six flights, six flights which doesn't only count with dizzy let's go super story Six Flags all parks were about slowing growth rate of their streaming video service. That's why Disney's got a broken stock I think that can turn things around but he has to avoid the trap of Disney plus becoming another ESPN which drags the stock down for years yet to their numbers Pete JPG is your mind people that the rest of the company exists and is perfectly poised for the great opening reopening even if there's a moderation in the rise of Disney Plus if you want a straightforward reopen plate then go for planes right now I like the airline Southwest or delta in theory I'd like Boeing to but not for this quarter until we see the potential for equity offering previous CFO didn't want to do it maybe the new guy does companies that got a boost from COVID I think Airbnb got here's got Mojo bottom line. If you're a company that you kill your the pandemic it's become toxic in this market. Even if business is still booming, that creates my opportunities, but only if you're very patient and willing to take some pain can run in Pennsylvania and camera on Jimbo first time long time

26:54
away for me. All right, it's got to work. I'm talking about Carnival Cruise I bought about a year ago I was gonna hold it short term. But the more I'm thinking about it, the more I kind of want to hold it long term. Just trying your thoughts on whether to buy more, sell it or hold. I would hold it. I do prefer Norwegian Cruise because they do have a better balance sheet. Franco Rios and a better job in terms of raising, raising the cash. And he said a lot of good stuff when it comes to COVID. Let's go to Mike in California Mike. Hey, smokey Central California.

27:27
joins back. Oh my god, it's back. I hope rain. I hope everything is good. What's up? Thanks, man. Hey, 25 years of investing. Jim. I've learned more from you than anyone else. You are the Louis rukeyser and dictated to me that they were for my late mom. Thank you. Thank you. That's very sweet. Thank you. So a few weeks ago as well as during the pandemic he met the CEO of Lidl on talking about his prospects post his company's post pandemic prospects. So I bought the stock but I was stopped out when it dropped under the 50 day moving average. I bought it back this Friday at a moving average. So they just received their private equity buyout offer of 60 to 10 per share for a gain of 80%. So what thank you for the stock and to Should I take the profits and buy that cashmere sweater or hold on? You go right now and you get that cashmere sweater you can go on Amazon Prime property and get a pretty good one. And may I please thank Sarah Greenstein who came on the show twice, told her remarkable story helped out mightily in my mass competition and did everything right and I hope that the that she agrees with the takeover and gets to continue to run the company, congratulations to you for nelion want to win. Business booming doesn't seem to matter if your company killed it during the pandemic. It is toxic in this market. What seren powers AI in nearly 300 million cars on the road globally. How is the company navigating the current automotive department? I've got the CEO then how the Wall Street bench crew that's even the worst Wall Street firms look like a collection of Warren Buffett's wolf wolf. Know Your call is rapid fire and tension is in the lightning round. So stay with Kramer.

29:28
If you bought a new car in the past year, there's a good chance you're using swapper created by surgeons. That's the world leader in automotive voice and AI. Their technology lets you speak to your car connected third party applications. So turning on your Spotify playlist ordering a cup of coffee from Starbucks without ever taking your hands off the wheel or your eyes off the road. Sounds pretty good to me. Even if you've never heard of SARS before, they're already the dominant player in the space. Their tech is in theory 25 million vehicles around the world including one out of every two cars sold last year. No wonder the stock has had a huge run.

30:00
Ever since service was spun off by Nuance Communications less than two years ago, it's jumped from 15 and change to 111. That's in the stock still downward. 20 bucks from its highs earlier this year could have more than run, let's check in with Sanjay Diwan. He's the CEO of certs to learn more about his company's processes. This is one Welcome to Mad Money.

30:19
Hi, Jim. Thank you. Thank you for having me. Well, it is very exciting that to have you because I remember this the spin off, by the way nuancing goes on to get bought by Microsoft, they create a lot of value, but you've been able to create a lot of value with service. How have you been able to do this in it help you to be your own company?

30:38
Yes, absolutely. Jim, that was one of the main pieces behind the spin. nuance, you know, had started many different businesses in many different verticals. And you know, we were one of the the smaller ones, because the company was becoming more like a healthcare company, healthcare was becoming very dominant. And no one's auto, which became silence almost one and a half years back needed its own focus its own identity. And, and that's what we did in the spin that was effective October 1 2019. We created the company servants. And since then, you know, we have been very focused on innovation. So we have been, we have introduced almost a dozen new products and have been either staying extremely focused on creating the new AI technology for automotive. Now it seems like you remind your company of miles Do you have a copy of you know, all too well, Harmon, where we had the initial times and as far Well, I mean, how can you stay independent, I have to imagine that Harman now Samsung wants to buy sirens.

31:49
I very fondly remember you every time there were earnings call and donation your conversations, I was running one of the divisions for the nation at that time at Harmon. And, you know, it's, it's lovely to be working with Harman now, and we work with all the tier ones, almost all the VMs

32:14
Jim, focus for me is very simple. You know, I believe in kind of, you know, creating, you know, innovative products, and then you know, what happens, you know, from a, you know, m&a or acquisition Same way, you know, that's somebody else to decide, I'm focused on creating products and value for my customer. Right. So what is the most used on AI? I mean, for instance, I told my wife because we have XM, Sirius, I'm always looking for what channel the Phillies want, and it's not here might be a 197. And I tend to just say, put the Phillies on, I mean, what is the most what are the biggest users?

32:51
I think, you know, the, the biggest use cases are, you know, navigation, phone, and music search, these are the three most kind of important use cases that most of the users use when driving cars. But these are only the starting points, Jim, you know, the, our goal is to create the best code driver experience cocoa driver assistant that the world has ever seen. So we're you know, looking at, you know, creating a completely seamless experience for the driver for not just inside the car, but also outside the car, you know, as your is you know, we all have a you know, big digital life outside the car as well right in the home in the office, and so on and so forth. And we want to integrate the digital experience in the car with the life outside the car. So, the use cases would be things like you know, you are driving you know, towards your home and you can set up your systems AI system in the car where you as you get closer, you say, turn on my porch lights and switch on my air conditioning and you know, and all this happens, you know, while you are just you know, one or two miles away from the, you know, from your home, or, you know, you you drive off and and the systems know that your car is 5050 meters or more away from your home and garage doors close automatically. So, there are there are many many curricular use cases that we are working on, you know, to to seamlessly integrate the digital life of the driver have one last question. semiconductor shortage in autos, what are you thinking?

34:34
Right, so, we are a software company, right, so we we, about two thirds of our revenue is completely software which is not tied to do any, you know, sure the semiconductor shortage issues. Jim 100% of our revenue is software. So, but two thirds is completely independent of the number of cars shipped. 1/3 of our revenue is tied.

35:00
To the car shipments, but we're seeing this quarter slight, you know, shortages, you know, things should, you know, ease off as we get into the second half this year. But the good news, Jim is that demand is through the roof. You know, people want cars, we want to buy new cars, we want to buy used cars. So from that standpoint, demand is not an issue at all that I see in the coming year. Well, terrific. I think you're I think your company's in a fabulous position. Sanjay, and I thank you so much for coming on Mad Money. Sanjay Diwan, CEO of CRN crmc. Thank you, sir.

35:34
Thank you for the power half the course you're probably using them. I like the story. Everybody's

35:42
coming up next. Let's make money together. What do we got Kramer's bringing the thunder and answering your burning questions in today's edition of the lightning round.

36:07
And then are you ready skiing?

36:10
Can you lights over john in Alabama john?

36:14
Who y'all from Bama? Jim Nice to see you on. Squawk Box and Mad Money got me into investing.

36:22
About

36:24
I'm calling about biotech ticker symbol s e s. n it's skyrocketed lately and his upcoming FDA approval will this one continue or is now the time to take profit. Man this stock is like a $4 stock this takes him off. Please take someone if it doesn't go right. This thing's gonna go to one. Okay, just take some off and you'll make me happy. Let's go to Chris in the saving grace. How you doing Jim? I found a stock with a PE of eight and they make products that every home builder has to have like OSB and LTL and hi Joyce. But lately I've felt like ups been circling the drain with Louisiana Pacific LPA Okay, so what happens when that moldable shrinks it usually means that the earnings are going to fall apart next year. I disagree with that judgment on with you. I know this can go lower because the chart is hideous. But I want to stick with Louisiana Louisiana Pacific. Let's go to Korea New York Cory

37:26
Jim big fan. Watching for a while now. That's fantastic. Your opinion on GE vo ticker GV oh chemos the kind of company I think that people should have room in their portfolio for because it's a way to be able to have fuel that is not bad for you. But green chemicals are the future. Okay. Excellent. You buy these guys. Let's go to Richard in Missouri, Richard.

37:53
Hey, Jim. What's going on Richard? Hey,

37:58
the company I'm calling about I've been a customer and subscriber for forever years. I was so happy with their cameras and their service and I started my appearance.

38:06
I think it might be a good

38:08
buy. Right now. Arlo technologies

38:12
you know, I thought that I thought this was a commodity company when cameras, security cameras. I got to do some work on that because I don't want to just say point blank. I disagree with you. But that was my impression. Let me use some more work. Let's go to Clark in Florida, Clark. Hey, Jim. Oh, yeah, probably on the market today. Who? Yeah, what's going on? I just wanted to get your opinion on Nikola. You know what, that 18 million

38:42
after Lordstown after what happened to coal? I know. Let's it life's too short. Let's pick a different one of these. Let's not go for that one. Okay, let's go to john in Ohio. Please, john.

38:53
Hello, Jim. Thanks for taking my call. No problem. Longtime listener first time caller last

39:00
year? Yes, sir. Last time, at the height of the pandemic, I took advantage of an undervalued stock called advantage strange systems. w m s. It's done very well. And I'd like your thoughts on whether to buy sell or hold. I think it's going to be viewed as a pandemic play. With the opening up to me, it's going to be one of those stocks where people say okay, all that work was done during the pandemic and now it's got no Mojo. Look, I think the stocks gonna come down but I agree with you. I think it's a very good situation. Okay. It's just a nice medium size cap story about building drainage. Perfect. I again, remember I liked the Lenore call, and there's kind of like, class pants here. Let's go to Tiffany in New York, Tiffany.

39:45
Hi, Jim. Hi, Tiffany. Hi. Hi. Thank you so much for taking my call horse. You know, you're my favorite person on television. Oh, you're very nice. Thank you. Thank you. Seriously, I subscribe to cable because of you.

40:02
Don't cut the cord.

40:05
Well.

40:07
I only learned so much from you though and I suspect we'll many as well. Thank you. Oh, I got my blog. That's so nice. Thank you How can I help you?

40:16
So my question is about what do you think about marathon oil? Well, you know, I think marathon oil so can't got an upgrade today. You know, I prefer Chevron because you read what I write, but you're going to be fine and marathon it's just not as high quality as I'd like. But it's a $13 stock is probably going higher. And thank you for those kind words are really amazing. And that was Yemen's the conclusion of the

40:42
lightning round is sponsored by TD Ameritrade.

40:47
Coming up, as the Reddit revolution reached its Waterloo, Kramer on why the means need the market, not the other way around. Next.

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Just when meme investing started getting mainstream attention, the darn thing peaked. parsing because Wall Street bets became to violence to infinite internet. The massaging here is off the charts, but mostly because they've started to lose people a lot of money. In the last two weeks, we've seen recommendations on Wall Street bets. They make even the dumbest Wall Street analysts look like Warren Buffett, there was that ridiculous attempt to push Wendy's to the high 20s that failed miserably, a truly awful suggestion to buy course your gaming right into a flood of insider selling. It was like they were just waiting for the majors to take the bait, and a top taking Cleveland cliffs that chose these guys don't have a clue how the smokestack stocks work. While I agree with him about clean energy fuels. We had the CEO on the show just this week, I only blessed his natural gas story for speculation, meaning don't buy it with money you can't afford to lose. Now the worst of what might have been the total gaffing of their followers in Petco health. The Wall Street beds crucell, the 25% of the float had been sold short. So they thought they could engineer a short squeeze. That's kind of what they did with GameStop. Well, the stock spiked from 22 to 28. But then it plummeted right back to 22 if the shorts didn't fall for it, and anyone who bought this bike when Ws B's suggestion annihilated the mall everyone's tired of this blackberry push my get the logic of their attempted short busting in Bed Bath and Beyond. It's proving to be a loser for them just like pickup. I actually like Bed Bath and low to mid 20s because CEO Mark Triton is very good at his job. But the game guys won't care about the short positions, not the fundamentals, which leaves them with AMC and GameStop they're only winners after Wendy's where there was no follow through course here where their push was met with that gigantic amount of insider selling and Cleveland cliffs where they started pushing a steel maker right, it's the cyclicals went out of style. The monsters are killing you with the recommendations. Petco being the worst. And look, even AMC and GameStop aren't looking that great right now are they? AMC is a $28 billion company with very little hope we can survive unless he keeps monetizing the meme support by creating new stock. If the CEO Adam and census helped desperate the Wall Street beds, people are after the string of losses, then what we'll do is he'll sell them 10s of millions of shares to take the balance sheet problems off the table. Even though AMC should not be a $28 billion company. The problem was selling a ton of stock is it tends to push the price down. So AMC has to do it at the money selling to get the job done. The Wall Street bed scramble to the rest, they need the stock higher so they can send it they know how to do something. I'm sure they'll support it because every cow needs when now and then don't they? Everyone in this industry knows that it's a perilous time to be in the movie theater business. Sure Adam can use AMC stock as currency to buy up his status down now competitors assuming they'll accept the stock restock deal here, but he still has to go to the studios to say listen, we need exclusivity for two weeks now. Now the pandemic sending people are going out again. Well companies like Disney bite I think they should tell make it so that they're an it's a past a pandemic story. No more. How about that. We mentioned that earlier with Disney but who knows. Game stops feeling like a house of cards for the stock now down over 100 points. 100 bucks from its recent highs. Well here they need a brilliant plan to turn the business around. While Ryan Cohen has ported some crackerjack executives from Amazon. This is a company that needs to transform itself now, and we have no idea what it wants to become. It can't hold on as a brick and mortar video game retailer, it just doesn't work. If you buy GameStop you're betting they can use the mean wave to raise a lot more money in order to totally remake the business. But we have no insight into what that plan might be. Tiny series of Best Buys maybe, and then who sees them notice already give us any maybe they just don't have one nerve just spitballing all day. At this point. We don't know whether the mean playbook will keep working with AMC or GameStop. But when Wall Street beds tries to branch out and other stocks, they've crashed

45:00
Every one who listened to them, it turns out these guys only have enough firepower to pop up a couple stocks at most. I think they're nothing more than tough to read Eugene O'Neill plays think the hairy ape, not Planet of the Apes. More importantly, they're horrendous stock pickers. And as we used to say, when a really bad stock picker entered the fray, The Iceman Cometh. I like to say there's always more work in summer and probably try to find it just for you right here on Mad Money. I'm Jim Cramer See you tomorrow. The news with Chevron Smith starts now.