文字起こし　 Next Week’s Game Plan, Sempra CEO & MP Materials CEO 5/6/22

ジムクレイマーのMAD MONEYの文字起こしになります。米国株を英語学習を通じて投資したい方に向けて作りました。皆さんの反応を見て改善点や英語解説などい追加して行けたらと思います。とても有益な番組なのにジムの英語が難しくて悩んたのをきっかけにこのノートを作成しました。 聞き取れない部分もあるのでご了承ください。是非Podcastを聴きながら合わせてこのnoteをみれば、様々なアメリカ英語を聞くことでリスニング力を鍛えることが出来ると同時に、タイムリーな米国株投資情報を得ることができます。イイネ！と思った方は投げ銭いただけると嬉しいです

Hey, I'm Cramer. Welcome to Mad Money. Welcome to America. I'd be one of my friends, trying to help you make some money or my job is not just to educate, teach, but I'm trying to entertain you keep you in the game. Call me one 800 743 CNBC. Tweet me, Jim Cramer. I didn't care anymore. We just want to get out alive. At least that's how Wall Street reacted today's red hot unemployment number. The last thing you want to see if you're hoping for stocks to go higher, because it means the Fed needs to slam the brakes even harder. Hence today's climb Dow slipping on nine points as we dropped 1.57% Nasdaq losing 1.4%. By the way, it was much worse. Much worse earlier for the Dow and the SP but the NASDAQ the NASDAQ remains in the bear blast. Yep, we're now on slump watch. It's what I call it slump watch, waiting for something, anything to show signs of an economic slowdown, but not this. Never we are right now in one of those bad news is good news situations, because the Fed won't stop tightening until the economy slows down. And they're taking too long. Never should take this head five basis points off the table. If you're a bull here, you want to slow down. But you don't want the angel of stock death to visit your ass, just the other guy's house. And therefore it's pretty tough to run the gauntlet. Now, I'm not trying to discourage anyone from owning stocks the opposite. But we are playing a different kind of game here. We're playing defense, which means your portfolio should be split amongst some cash and some stocks that can thrive in a recession. And most importantly, a bull market in energy, which I talk to you about almost every night, you need to accept the fact that we're simply trying to stay in the game. Standard Game Club times get better without any real knowledge of when that will happen, or how much pain will have to take until we get it. But when we do reach the promised land, it'll be worth it. Because that's when stocks come roaring back. That's been the case every time since I started buying stocks when the Dow Jones Industrial Average was at 1000. Back in the late 70s When inflation was even worse than it is now. The only exception was the financial crisis a moment of genuine systemic risk, which is something we don't have right now we have cyclical risk, we have inflation risk, but we don't have systemic risk. So if we stay in, we can reap the gains in the slim bull market now and then really benefit when the slump finally ends. But if we're not in the game, we won't be able to get back in in time. I promise you that. The sober analysis mind, why don't we go to our game plan? And I know it's sober. I mean, look, I've changed with this period. I know what it's like. I traded 94 I traded 87 Let me use that knowledge to help you. First up Tyson Foods. Now you're we're hoping for bad news for the foodstuff producers. We want them to say something can come down in price that's put on our dinner table, whether it's beef, or chicken or pork or at this point, frankly, kale, quinoa, quinoa.

3:14
Quinoa. We also have biotech reporting, Pfizer's Mr. And Mrs. A partner. Now right now one of our biggest problems is China's COVID policy. They're locking down 50 million people right now, because they refuse to use more effective mRNA vaccines. I don't understand the plan. It just got re ratified last night. Maybe bio and tech can tell us if there's any hope that the Chinese government will actually try to vaccinate its people with something that works and they'll choose biotech, which they have. Because it's a German company, not an American one. In the future. We'll hear from Suncor the Canadian oil sands Combi we Pope obviously the way Elliott management's trying to pressure into being a better operator. I think this is a fabulous by one way or another Elliott's going to get its way let's hope Suncor recognizes that and decides to play ball because its stock will go much higher. Next I know I'm a glutton for punishment but I want to hear plug powers turning all those orders or can turn those orders into something that actually is profitable the stock got creamed today to speak of cream Tuesday we're going to learn it peloton found anyone who will buy part of the company which is obviously in much better, much worse shape, much parabola shape, frankly, than even the bears believe we were pretty bearish all the way down. I bet we'll eventually see some sort of like we crash like TV series made about peloton if not to drop out and I wonder who's going to write the screenplay first. When we're on inflation watch we're also on trade down watch, which means we need to listen to Cisco. That's s y Cisco, the food distributor that can tell us if restaurants are balking at higher food prices. They let her know they just play a huge percentage of them. Then there's this failings of high priced stocks that have come down to earth Roblox rocket Coinbase so fight real real unit grow generation. It's a cavalcade of horrors frankly, we're going to touch on every one and not just strictly for shattering Freud purposes we want to learn what happened. Capital destruction life To which I haven't seen since the.com crash in 2000. All of these copies were at one point thought to be the best of the best. Real real define the circularity of selling your clothes to someone else for a check instead of everything ending up in a landfill was such a good idea. Why is it stuck at five? Or why when we had a red hot mortgage market has rocketed eight down from 22 last summer. Unity is a legitimate company. It makes software for video game developers, but it pits yourself as the oldest Metaverse stopped which is probably why it plunged from north to 257 today. Growth generation is a fallen cannabis star but aren't they? Well. ROBLOX is another original Metaverse creator fantastic company bad stock rizona we keep it in the penalty box that that all things meta belong in right now. Coinbase proxy for Bitcoin which is falling apart at the speed, same speed as the NASDAQ. Hey, it turns out that crypto was never a hedge against inflation. It was a speculative asset that's joined at the hip with every other spective acid. As for so fight, let's listen to anything Yodo as he tells us why we shouldn't sell it even down here. I am all yours. Now, of course, we certainly want to know more about oxy petroleum after the close because it's become one of Warren Buffett's piece positions. I favors other favorite oil stocks Chevron. But Chevron has been a boring straight A student the market prefers C students like occidental that are so tough to get and B pluses. All right now. Look out. John Oliver. It's time for my quarterly joke about how my wife loves Wendy's Baconator.

6:34
What are you guys doing? ruining my marriage? Get that picture down. Anyway, it's gonna be a bit of a remix on that. Thank you. I'll never get in trouble for pointing out that she's got impeccable taste right? I went. Going out to Long Island this weekend is a really good one. So it's 62 when it should be doing okay, but let's find out if there's having any staffing issues, like so many other restaurant plays when they report Wednesday morning. Now, but Wednesday it will really be defined by something that happens right here. The CPI, the consumer price index. We know some of these inflation opponents like us car prices are already down big so there's some hope for softer number, but I fear that it could be like today's employment numbers way too hot for our own good. If we do get a weaker CPI figure the market could rally if so you know you want to buy you want to buy the Dutch Bros Yes. My favorite coffee. Yes. Now the Starbucks has kind of lost its way. They report it for clothes and I think it's gonna be real good. We also want to know about this thing Rivia and electric truck maker will let Will they let Ford sells 10% stake please. In November ravine was valued at more than 150 billion now it's valued at 25 billion marks predict better than nothing forced and sell. But obviously they would have been better off reading and registered with the IPO if they'd been allowed to. Now I'm also very interested in listening to a company called Sonos when it reports because this is a work from home story and why your house music and they'll tell us the spending on the home is cool and I'm very afraid it has that I Spy three teas on Thursday, tapestry toast and Taboola. Now tapestry is the old coach along with some small brands supposedly having a good quarter. I'm very concerned about apparel, Under Armour just posted a terrible number today talking canceled orders kiss of death because that spells Glu T glut. I've been at toast ever since it came public. Not because I have a problem with point of sale technology, or that they aren't nice people. It's good and they're nice, but because they're way too many players in that space. I know it because I own restaurants. Finally taboo is one of these companies that makes creates like clickbait. It was only able to come public last year because we were in a ridiculous period reminiscent of the.com era might as well hear from wheels up Poshmark to another pair of newly public companies that slipped through and have hurt your portfolio. Again, to young people run posh mark and wheels up very nice. Fortunately, Friday is quiet. I think we're gonna need it. The bottom line, you need cash, you need safety stocks, you need energy stocks, and you need patients to make it through this period. Without all those though. The nightmare will continue. Robert in Ohio, Robert.

9:14
Hi, Jim. I first I want to tell you I'm very happy I joined your Investing Club. Ah,

9:19
thank you. Thank you so much.

9:23
Okay, yeah, it was a good show. I'm calling about a company that has great products. People love their low beta. They got a solid dividend and they had a really good quarter last quarter going forward. Do you think Kellogg's is a buy?

9:38
I went over that quarter and I don't want to necessarily say it was a good Kellogg. But that was a great quarter. And I think that Kellogg has taken some costs out and I'm doing a lot of things right. You're starting to get better organic growth. Robert, you're writing a good one. Don't forget by the way, you went that area. Look at that Hershey. Oh, wow. And thank you for joining the club and coming to the meeting. How about James in California? You James

10:02
Baba Baba boo yah yo Jimmy chill. How are you

10:05
to chill man between be chillin because I'm gardening this weekend and I got nobody

10:11
getting that garden first. I'd like to wish all the moms out there Happy Mother's Day, especially to my beautiful wife Holly. So I'm looking for the best in breed blue chip stock like an AJ Brown and Devonte Smith for the Eagles and not some speck bust like a Jalen rager go birds and I'd like to get your take on Procter and Gamble.

10:33
Procter and Gamble's AJ brown. It's number 11. That's terrific. can do the short route can run through traffic. Got good cost control, fabulous dividend dividend aristocrat. It could take care of the Super Bowl. I'm not kidding. Nancy in Illinois, Nancy.

10:50
Jim, recently, I ran an article about MCD that mentioned a whale. What is a whale and what does it mean for the future of the staff?

11:00
Okay. Just a personnel problem for moments. Okay, yeah, let me get to that. I think they did. Look, I think they're just a very good company stock was up today all day. Good dividend. It is. Again, it's an aristocrat. I like it. I have to repair my marriage. So I'll have to take an early break today. So eclampsia divorce the Baconator you need cash, you need safety stocks, getting energy stocks, you need patience. Okay, we're gonna get through this period together. We always do. Come on. We've been together for so many years. Does it not work? Hey, join the club and you're going to get a level of me that's even more visceral than me making fun of my wife eating a bacon air. Oh man money tonight. Amid the increasing increase in volatility should investors turn to a dividend play like separate? Wow, that's a good I'm checking with CEO then yesterday CNBC Investing Club, we held our monthly recap, we convened our monthly meeting for subscribers only giving you a quick look at what you get in a better day. If you own stocks. And you don't want to the club. You're missing something. And MP materials fail. Today attorneys are investigating a rare opportunity by the stock of a rare earth mineral company. I write this up. It's funny, isn't it? I'm talking. I'm talking to the company's top reps. I want you to stay with the Investing Club and stay with Kramer.

12:28
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.

12:59
Set it for us. And again, even in a very difficult market. There are plenty of stocks that can rally take simple diversify utility in California, Texas, with a big natural gas pipeline business and a growing liquefied natural gas export division. Separate oil has been a well run utility, exactly the kind of stock that's worked when we're worried about a Fed mandated recession, which is what it seems like we're getting but now it's also got the liquefied natural gas kicker. They've got one export terminal in Louisiana, and they're working on several more. That's why I recommended this fabulous talk about a month ago 24% For this miserable year. Because thanks to the Russian invasion of Ukraine, our government is now desperate to promote LNG exports to fossil fuel starved Western Europe. It's like Sempra had seen this coming. We know the business is thriving, because last night it's temporary Porter really terrific quarter substation top and bottom line beat, which was enough to actually send the stock up more than 2%. Today, given its relative cheapness and the 2.8% yield, it's low yield because the stocks do so great. I would be surprised if it didn't run. But let's take a closer look at a really super executives named Jeff Martin, chairman, CEO of Sanford are more about where and what comes next. Mr. Martin, welcome back to Mad Money.

14:06
Jim, it's great to be on with you again. You know, I'm always reminding you, I'm your biggest fan.

14:11
Well, thank you, Jeff. You are a faithful watcher. And I appreciate that. Now, what I've been over your coffee for a moment, I have to say to myself, did he see all this common? The fact that Mexico needs our liquefied natural gas when they were huge oil export the fact that Europe needs our natural gas. I know it's only one part of central but I want to start there. How great can this LNG business really be?

14:36
Look, we're very excited. I think that we have long talked about for about three or four years the need for a second wave of American LNG. And in part that's because we believe as part of the energy transition, Jim it will be very important for a lot of the OECD nations and developing nations to have access to natural gas is a move away from coal for power production. So all this really taken places is when you have functioning markets like we do today is that risk and opportunity has been pulled forward. And we're really in a unique position to have opportunities to dispatch LNG off the west coast of North America to Asia, and now the Gulf to Europe. So I think we're in great shape.

15:16
Now, has the President talk to you about how to do this? Because I would dial you up to say, What do I do? How do I help Europe when what are the conversations like?

15:26
Well, I will tell you there is certainly a recognition across the administration and all the federal agencies that this is the right time to put together a program that we responsive to the needs of Europe. And if you think about it, there's about 18 billion cubic feet today of gas that flows into Europe, from Russia, that's about 45% of the European continents, access to natural gas, the best country in the world, this in a position to help solve that problem is the United States. So this is not just about Sempra, the entire US LNG committee community is in a great position to be part of the solution. All right,

16:02
yeah. I spent a lot of time in Mexico and deal with a lot of companies that have relationship with Mexico, you have the single best of anyone I deal with, how can you create that? Because it is a very important relationship. And you're at the keystone of it.

16:16
Yeah. Well, I appreciate the question. We started investing in Mexico back in 1995. Before it became popular, and I'll remind you, today, it's the 15th largest economy in the world. In our internal estimates, Jim, we think it moves down to number seven on a GDP basis. 130 million consumers as one of the fastest growing consumer markets in the Western Hemisphere, their great challenge, much like Europe, is they tend to be relatively energy secure, roughly 70% of all the energy they consume every day is imported. And that's one of the reasons separate has been investing consistently there. And we've got about $11 billion invested in Mexico. So we are really the dominant provider of the energy network to Mexico and is one example, the largest export market for us natural gas is Mexico. And we flow about 7 billion cubic feet today, to Mexico. And the reason it's so important, is a country that has traditionally used high sulfur oil for power production. So America is playing a role not only in improving and energy security, but helping them move to a lower emissions fuel. And we own 11 of the 25 pipelines that serve Mexico and roughly 66% of all gas that flows to Mexico, flows across our network.

17:31
Well, I want people to understand one of the things is temperate does. And it was really great that you said that you asked us that bill was just separate in terms of the environment. I had not been a believer in renewable natural gas until I met you. Because you are making you're making things that are that are actually I thought too expensive. You're making them into very reasonably priced fuels that are very good for the environment. Orange cheese will.

18:00
It certainly is in here in California, we made a commitment about two years ago, Jim, that we would serve 20% Of all the natural gas that goes to the consumer market, from renewable natural gas, you're talking about landfill gas, and other exogenous methane in the environment that we're capturing. And using that in the pipeline system and combusted. Methane is far less of a problem from the environment than let it happen naturally. So we feel good about that. The regulator here in the state risk recently passed a rule mandating that all load serving entities need to at least have 12% of its fuel supplies come from renewable natural gas by 2030. So think there again, we were ahead of the curve. Oh, you

18:42
definitely were now let's be ahead of the curve. I usually don't talk about this, but your board is 91% independent 55% women and or people of color, diverse board. I want to know why everybody, I think how this must be incredibly important you because that those are the best numbers I've seen in terms of trying to represent everybody in this country?

19:00
Well, it's interesting, you say that what we talk about a lot is creating a high performing culture. We think one of the things that usually unique at our company is we've got three separate growth engines. But the key to it over a long period of time, Jim is finding that fourth gross growth engine and that fifth growth engine, and we believe that comes out of our culture. So the elements for us, of a high performing culture is to be safe in our operations, to invest in leadership development and employee development. And we believe in diversity and inclusion. And it's not an academic exercise. Our board reflects our commitment to the belief that diverse backgrounds are likely to make better business decisions. At the end of the day. Our job as a leadership team is to make one good management decision after another and we believe that diversity plays into that.

19:47
Well, I think it does, the decisions that you've made are so much forward looking than almost everybody else was beat to. I want to thank you for what you've done with Sempra Energy and what you've done for shareholders. Not a lot of people make money this year, but I'll tell you something, Jeff. More than just making money for you, Jeff mark is the Chairman and CEO separate thank you so much for coming on the show.

20:05
Thank you, Jim. It's great to be with you. Yeah, I'm

20:07
gonna be back after the break

20:14
of tension primerica it's a volatile market. But don't worry. Kramer's answering your pressing questions to help you through the uncertainty next.

20:35
This is, I've always had the same mission to help investors to help you navigate volatile and uncertain times that we have right now. It is so easy to panic, right? But always remember, panic is not a strategy. It's much better to be curious. And thankfully, we have a lot of curious viewers. So tonight, I'm going to open the floor to questions from all of you, and what the heck is going on? Because most of you have never seen anything like this. I've seen it happen two times in my career. And I need you to know that it's an opportunity, an opportunity. By the way, Jeff marks who is my partner for the club. And I answered many of your pressing questions yesterday, during CVC, investing clubs monthly meeting, it was by far my favorite part of the hour. And the reason why it's my favorite part of the hour, just so you know, is because I feel like I'm talking directly to all of you, not just to one person. And this meeting that we have, it is not like anything else you ever gonna see. It is spirit, it's authentic. We go back and forth. We disagree. We try to reason with each other happen all morning today, on a couple of top positions, just like the one you're gonna be here. Let me just say I pour my heart out. Okay. It's real. And it's visceral, wants you to first take a look at what we get up to in our monthly meetings. Because yes, I want you to join, take a look.

21:59
This is actually their time for them to start looking at deals. When valuations

22:03
are climbing down, they can buy anything, biotech stocks roll down big, I don't want to bet against Dan hurt. No. And that's how you have to look at sometimes great management. Alright, which my final comments are this? It's a horrible mark. We all know it's horrible mark. What we think of when we have a horrible market is get out now. How wrong was get out now, in 99? Yet, how wrong Get out now will be at this moment.

22:35
And see what I'm saying there is that there was a time when a lot of people panicked, including me. In 1998, I made a big mistake the market and proceeded to call up gigantically. I was able to reverse my position. I wrote all about it. But you need to know that my panic was exactly when the market bottomed. And we don't do that. And I learn from that. And I explain all my foibles at these meetings. And most people will never admit their foibles. You know what? I've been around long enough to be able to do it and it doesn't bother me. If you miss that monthly meeting. I want you to go watch it. You can log on to catch up. Because I've got to tell you, it isn't like anything else I do. It's not like this. It's like squawk on the street. It sounds like the morning meeting even it is about trying to figure it out. Now, we didn't get to all the club meeting members questions yesterday. And that bothered us but we run them on time already. So I'm going to take them right now on Mad Money. And the first one is from Vinson in New York, who asked Amazon and alphabet both have stock splits coming up. If you did not currently hold a position. Would you take a position prior to the split under the thinking that retail investors will come in afterwards? We are not even going to think like that visit here's the way we're going to think about it. This company which we have sold a huge amount of Amazon is not doing well. Just not it's not the Jeff Bezos, Amazon. This company, however, is doing great. I don't care if you buy it before or after or during the split. This one not making it this one is we still hold some of this for the trust. I know that I talked about Jeff this morning to make we've met to sell the rest. All right now next one is from Jill in Illinois. She asks, What do you think of upstart it makes money has low P E and peg ratios and seems to be picking up new customers at a steady rate. Is it a by this environment? Okay, so let's take a look at this. It is not a low pa Jill, it sells in 35 times earnings. It reports next week do I think it'll be good? There's a 27% short position upstart this shorts hated the moment it reports are going to come in and bang it down. Let's talk about a debt. Not now. Okay, here's a question from Jose in Florida. What do you think about UnitedHealth Group buy hold or sell? This company had an amazing quarter and it's down 60 points for an amazing quarter and Cigna report again and that was a competitor name Take great UnitedHealth it's a buy. Next is Gary in Florida who yes, I bought Lowe's near its high at around 250. Should I hang on to it or look, buy wounds and use whatever's left for some different stock? I don't care whether you bought a 350 or 150 or 200. I care about where it's going now where it came from. This may not be the best quarter for Lowe's, but it's the next quarter that matters because it's planning and gardening season. I believe Marvin Ellison, I don't care where you bought it. I like Lowe's. Don't be aggressive, but buy more. Now we've got a question from Anthony in Florida, who's wondering should I sell and take the loss and roadblocks or keep for the long haul? I think that they're going to report just as so so quarter next week, it's not going to be a great quarter, but it's in the third it stock is down. I don't stand a point. It could go down another 10 and still be overvalued. That's up to you to decide if you can handle it. Next is Andrew and Idaho who says what are your thoughts on Yeti as a long term hold? Okay, so Yeti reports next week there soon as we recommended last week there was a guy came out and downgraded. I worry about the possibility. I worry about the possibility that people are going to say that yet his time has come and it is gone. Now I've got to tell you in June, when I look at a company like Yeti, I actually use the products. I liked the products and remember what I like about a stock, does it make things does it do things sell things at a profit gives you some return to that profit? That's the one problem yet he doesn't have. It's not giving us enough of return. So my experiences is that yes, you can buy it. I think it's a very good company. Very, very good product. But I bet that the stock goes down when reports next week unless we're really, really oversold. Now for when in North Carolina. He has I have a nice run up in McKesson. How do you decide when to sell and move on? Okay, McKesson reporter great quarter. So my answer of how you decide when to sell and move on. Is it record a great core in an environment where there are no we're only a handful commission corporate quarters? Why do I want to sell McKesson? What put it in a company that doesn't doesn't do? Well, I don't want to sell the good to fund the bad. Finally, we've got one and this is really in my wheelhouse because of what I've been studying with energy. It's from Manny in New York. He's saying, What is your outlook for utility stocks like Con Ed, and public service enterprise group. And here's what I decided. I decided that I don't want to be in utilities, utilities, pretty much trade as a group. But I don't want to be in utilities that are in areas that are heavily regulated, because I see anger and political issues, and people in government who want to show that they are not going to let you be hurt by inflation. And those are situations like New York and New Jersey. I would much rather be in American Electric Power, or in Sempra. By the way. Sempra is a growth stock. It's a growth stock for heaven's sake, these they're not growth. They're just not five. That's all for now. But remember, in a market like this, I want you to stay curious and keep asking questions and looking for opportunity. Now, by the way, there's much more money, including my exclusive with M P materials, from EVs, which is electric vehicles, to wind turbines, the need for rare earth materials is growing and it's also about our defense. Um, see if the demand is enough to help grow the stocks, then our stocks themselves collateral damage in the Feds fight against inflation. Are they part of the problem and Powell has taken a minute give you my take, nor your calls rapid fire tonight's edition of the lightning round, so stay with Kramer.

28:37
heinous mark is creating some deep deep discounts. Some of them could be great long term opportunities. If you know what to look for. Consider the case of M P. That's Mary Peter materials, the largest producer of rare earth minerals in the western hemisphere, which came public in late 2020. Via SPAC merger. This is one of the few very few SPAC stocks it's actually worked for investors, because NP materials had the advantage of being a real business with real profits. And look, we know the business is still good, because last night, they reported a blowout quarter, nine cent earnings beat off a 41 cent basis fueled by 177% revenue growth. These guys have an incredibly consistent track record of shooting the lights out, this stock went down 5% It means nothing to me, as far as I'm concerned, because this market is so crazy in the short term. But this thing has been taken down from 60 to 37. I liked that. I think Wall Street's become skeptical of how NP materials can hold up in a Fed mandated recession. But these rare earth minerals are in such super short supply. Most of them come from China. No thank you. I'm pretty confident demand isn't going anywhere but up, which makes it a bargain. Don't think of me let's check in with Jim Lewinsky. He's the founder, chairman and CEO of NP materials to get a better sense of the quarter. Miss Lewinsky Welcome back to Mad Money.

29:51
Thank you, Jim. It's great to be here.

29:52
No, I've got you too. I've got two releases on my desk. First one Texas rare earth magnetic factory restore whole US supply chain, you and I talked that that had to happen. And then a segment the President visited you, because he understands how important this is. And then I went out to dinner with Mary Barra, and she says that you could be one of the solutions they have you got three things going for you. Why don't we start with the supply chain being no longer connected with China one day?

30:20
Sure. Well, and thanks, Jim, that you got it all there. We, as we announced the Texas factory, and we actually broke ground, we had a great ceremony. And then we also had announced an award in February with the president knighted states. And that was a lot of fun. And you know, really, this is sort of a bipartisan thing. Everybody in the country wants to get this Supply Chain Home. We're leading the way on that. And so what we announced is that the we will send rare earth materials that we make at Mountain Pass California, over to Fort Worth, Texas, and we will turn those into magnets. And then as part of that, as you mentioned, we announced the GM deal. So we'll be we'll be making magnets for GM and Jim, I believe you are on the waitlist for a Hummer e v, right.

31:03
My wife is on for the for the SUV Hummer. Because she problems. The T test drove the Hummer and centers one of the great spirits, everybody was hard to hard to find a spot, a parking spot that was big enough. But she said it was an amazing is that yours? Set your materials?

31:22
Well. So the so GMs ultium platform, which is their electric vehicle platform, we will be part of that deal was we will be providing magnets for a number of models across that platform out of our factory in Fort Worth. And that'll be you know, 100% End to End US supply chain.

31:40
So you'd think we'd be independent in the some rare earth materials from China. Not all but you have the ability to be independent of how much of independent of VZ. Oh, right,

31:49
we'll be Jim, we will be completely independent of China for for all rare earth materials for that deal that we announced. With the initial facility in Texas with GM, that'll be all us made materials.

32:02
Okay, so how can you raise enough money to be able to make it so that we're number one in this?

32:07
Yeah, so that's a great question. Well, the good news is, you know, we have a lot of cash on our balance sheet, as you mentioned, we're a free cash flow positive business, we announced a great quarter, we're doing run rate 500 million of EBIT, da, we have 1.2 billion in cash. And, you know, we've made clear that we believe will we announce with the President will be investing $700 million over the next couple of years. And if you do the math, where current prices are today, you know, we believe we'll still have a net cash position. So the good news is, we are you know, we're sort of in the sweet spot of what you've been talking about we we generate a lot of free cash flow today, we've got high return on capital investment opportunities. And then you know, from there, you know, we'd like to TEDx our facility and then move on from there this industry is it's an enormous opportunity. You know, electrification, is a great theme.

32:53
Defense, we need this, right? If we're not in what could happen to our country?

33:00
Well, the key thing, Jim is, is this is the bigger existential issue is, you know, as I said, on earnings call four of the 10, largest OEMs, by for battery electric vehicles, by market share are now Chinese manufacturers. And so this is actually a commercial national security issue where we're just in a global race to compete. And, you know, our mission as a company MP is, we just want to make sure that American OEMs, led by, you know, GM, in our, in our deal, we announced in Texas, have an American option for a full supply chain. And, you know, we expect this doesn't need to be a zero sum game out there, because there's just so much growth. But But really, the issue is just making sure that there's supply chain diversity. And that's that's the mission that we're after

33:42
one last question. It's a little more ethereal, but years back, there have been many, many specs in shoe. Why are you one of the handful of specs that makes money?

33:57
Well, I think that we win when we approach this, and maybe, you know, it comes from the fact that I had a number of years in the investment industry in advance. You know, we were very focused about making sure that we were building a public company the right way that we, you know, could put out reasonable numbers and beat them, that we were building the business and making sure that we were creating value for all shareholders, this going public was really the beginning of a large growth journey for us in a thoughtful way. It wasn't it wasn't an exit, you know, we're here. And then but the other thing, Jim, I would say, and I think this speaks to maybe something that could be helpful for for your viewers, as they think about this market is you know, we've been in a 14 year bull market that has now ended in growth in technology in essentially there's been a negative cost of capital in the technology space, the real economy has been starved. The cost of capital as you look across, you know, the cost of capital for mining materials energy and I know you're a fan of energy, you know, we think this whole space is really going to be the new bull market. If you look out for the next three or five years. There needs to be a lot of capital that comes particularly into the electrification economy, the real stuff. And so I think that you know, real stuff is going to lead the way in the next three to five years because we look around at the supply that's there and the amount of stuff that needs to come online and we need a lot of capital to come to this space. So I know that with this sell off, you know, we need to in a lot of these companies are buying back stock and you know, you can look at ours, you can look at many and so I think this is the new bull market,

35:26
I will start with you, I agree with you real stuff made by real companies that generate real cash flow that can do great things and that one of them is MP materials. That's Jim husky, CEO of NP materials. You got to read these guys, these guys are can help us become independent of a comp of a country that is not necessarily one that I regard as friendly anymore. Thank you, Jim. Appreciate that. You may have monies back after the break stick around my neck suggestion. I would stay with the lightning round is

36:05
coming up next.

36:15
It is time and then the lightning round is over. Are you ready? Ski deck. Zack in New York, Zach.

36:28
Hey, Jim. Thanks for taking my call. So I'm calling with them Nokia and okay,

36:33
I thought they should have had a better quarter. I mean, we've given them a huge runway in your opinion did not deliver Jeff and Jeff. Hey, Jimmy, thanks

36:44
for taking my call chill says thank you. Okay, hey, it's been tough for the offshore oil drillers for a long time but Mr. Thick then at trans ocean symbol rip rich

36:55
and ocean is nothing but net right now. Let me throw. I'm gonna throw in slumbers. Yo give it to. Let's go to David in New York. David. How you doing?

37:10
For San Carlos, longtime fan.

37:12
How you doing? I am doing well. Although I have to admit I can't wait to do some gardening this weekend. You owe me to relax. Oh, yeah. Oh, yeah.

37:23
Let me know. What's your feeling? Is that Nova?

37:26
Is that going back? Never been a fan. I think that they went all the way up. I tell people that you know, look, this is the one. If you want to be in that group, you got to be in the Maderna or be in the Pfizer. Let's go to Alex in Washington, Alex.

37:39
And Mr. Carter,

37:40
thank you so much for having me on. And thanks for all you do. I have a question about Libya. You know it traded $179 in November and today is down to 28 as a whole.

37:53
I think four is gonna be a chance to sell stock if you're like Caribbean. I have a wait to the chance when Ford sells that stock to buy rivian Let's go to Thomas in Nevada Thomas. yet. Hey, who got Kramer. We are listen.

38:07
I'm not a real gambling man. But I was watching the show the day you gave Plug Power Your blessing prior to that you did not?

38:17
Well let's understand the report next week. I liked the long term prospects of freeing hydrogen which plug power has been my buddy my construction buddy that I went to to win a walk bike today. We both commiserated that right now this is very tough tape for stock like club car. And he's absolutely right. Let's go to Douglas in New Jersey Douglas. Jim, how you doing? I'm doing well. How are you?

38:39
I'm doing great. I just want to get your take on Chubb insurance ticker CB

38:42
he you know what Adam Greenberg is just delivering and delivering and delivering. He's a great CEO and Chubb is a great company. Let's go to Paul in Connecticut. Paul.

38:54
Hi, Jim. Lumen technologies.

38:56
I keep hearing great things about lumen. I keep hearing great things. My problem is that I don't understand. You know what, let's have a more because, you know, I don't understand why it sells a five times or, I mean, give me that just too cheap. Something must be going on that I just don't understand. Let's go to Daniel in Wisconsin, Daniel. Yes. bleah. longtime listener, excellent. And I'm wondering about the stock Verizon when she brought it all the way down, and we were yields 5.3% But T Mobile is really crushing. T mobile's crushing. And that lady jumps up version of the

39:33
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40:11
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40:29
All right, I got to think in this week, I started thinking, Is it possible that the stock market is is actually collateral damage and the Feds fight against inflation? Or is it actually a key front in the fight against inflation? In other words, are stocks part of the inflation problem, something that Fed needs to take aim at directly in order to cool things down and stabilize prices. And you know, you feel that too, because I watch your portfolio. Either way, the market is going to keep getting hit. Because of this. I think the Fed will win the battle against inflation. But there could be even more downside for the averages of the process, especially if the capital markets remain hostile to IPOs. This back deals will ultimately see fewer rapidly expanding startups and fewer jobs created for long time, it was very easy for businesses good or bad, or even non existent to raise money on Wall Street path took that away. It's no longer the case. So let's take a company like Shopify because you know what I know, software company helps small and medium sized businesses set up their own e commerce platforms, second largest fulfillment house after Amazon at the end of 2019. Right before the pandemic, Shopify was a $397 stock, then as the government threw money at small businesses, and the Fed made it namely easy for companies to borrow money, Shopify stock charts above $1,700 last fall. But ever since Jay Powell declared war on inflation, November shopwise form below where it was before the pandemic. I don't think Palace literally trying to tamp down the irrational exuberance and specific stocks like a Shopify or today HubSpot or toast or build.com. For all legitimate companies. It's just that their valuations were way too high. And that froth helped fuel the overinflated IPO and spec bubble that I know Powell had to stop. However, I gotta believe Pallas concerned about other developments with the stock market versus he had good reason to keep interest rates low during the height of the pandemic. But the problem of giving companies access to more or less free money is that it's always going to be temporary. And when that money goes away, as it is now the hangover can really hurt the economy. And again, your portfolio. I think the stock market as a whole was and is a major risk to containing inflation. It's not just collateral damage. It's one of pals targets, not every stock but certainly the ones with shaky valuation underpinnings that were trading to the roof on sales or even orders because they had no actual earnings. When you look at the detritus today, and yesterday, you realize the damage you're actually did start a long time ago. Now I'm hearing people compare this period 1994 to 1995. When Fed Chair Alan Greenspan doubled the federal funds rate from three to 6% through a series of rapid fire seven rapid fire rate hikes, including 175 basis point triple rate hike, and three other 50 basis point double rate hikes. Now you might have thought that that would wreck the whole stock market, but it barely did the s&p 500. I know I had a big year that year, when I was still my hedge fund. And we that was because we processes raid heights quickly, it produced a huge rally, especially the financials. In other words, high quality stocks did just fine. The profitable ones that make real things and do stuff and return capital did well during the tightenings. I think we could be faced with a very similar process this time around. But I was upset because it's too being too slow. And was really ill advised that Powell took the possibility of a 75 basis point rate hike off the table. I see that as mistake I think we need 100 basis point rally 100 rate hike 100 Because we got to get this over with and heaven knows I am pals biggest fan on Wall Street. To me it's just much better to get the paint over with as fast as possible. The economy so strong that we actually may need 1994 style shock to contain inflation. In the meantime, while we wait for the Fed to finish hitting the brakes, the formula high flying stocks with no earnings and little sales will keep drifting lower and lower and lower. To this day represents still one more important front in the war against inflation. adjusted as always a bull market summer. I promise try to plan it just for you right here on Mad Money. I'm Jim Cramer. See you Monday.