文字起こし Mad Money w/ Jim Cramer - 12/02/21

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。

‎Mad Money w/ Jim Cramer：Apple Podcast内のMad Money w/ Jim Cramer - 12/02/21

Hey Cramer, welcome to Mad Money. Welcome to America. I'll be one of my friends. I'm just trying to make you some money. My job is not just to entertain you, but to educate and teach you so call me at one 800 743 70 C or tweet me at Jim Cramer. Sentiment. Sentiment can be hard to fathom, but it's essential if you want to predict the markets next move. For example, today's stocks word or information that might have sunk us at another time. Maybe yesterday. Dow this time surging 618 points as we pull Boeing 1.42% Nasdaq rose 2.3%. Now I talked about sentiment. I mean, what's the markets mindset? Sometimes it's about negativity and exhaustion also. Other times it's about exhilaration and wild eyed optimism house of pleasure. Today it was about investor decides to stocks to come down so far from their highs. It simply doesn't matter how bad the Omicron screen turns out to be. Money hear about it. Oh, they're willing to shrug off the news of a second Omicron case in America. Even his talks were eviscerated. Yesterday we learned the first one. Just as important given that will likely be hearing many, many, many more infections, especially as the second victim had gone to a packed anime convention in New York City. Investors now seem to accept the Omicron variant as just a new fact of life. Of course, if this train turns out to be worse than delta, and we start seeing huge wave of hospitalizations or perhaps deaths, then we'll look back on today's bullishness as a temporary

1:48
condition of insanity. Still, the first sentiments factor, pretty straightforward. We just had too much negativity. They're just what stocks were overly hated, which made it easy for them to rally once we got a few bits of good news. A great quote from snowflake a solid with an octave good news from CrowdStrike which will be on there the show. Secondly relatedly there's the oversold factor. Sometimes stocks go down so hard so fast that the overshooting deserved bounce. There's actually a way to measure this. I've followed the Standard and Poor's proprietary oscillator for years. It measures how oversold or overbought the markets gotten on a daily basis, the oscillator has a baseline of zero, when neither the bulls or the bears are in control, that's zero as it goes up. That means the markets becoming more bullish, or if you want to be pejorative, more euphoric, when the oscillator goes a plus five, well, then you're getting into extreme overbought territory. And what you got to do is you got to lighten up a little. And that usually means your, let's say, traders do that we we even do it for the Investing Club product that terrible trust. If it gets a plus 10, then you have to sell aggressively. Because the correction is almost inevitable. But it very rarely gets there very rarely. On the flip side, when the asset gets to minus five that tells you the markets oversold and it's too late for you to sell. If you're patient, you'll probably get a better opportunity higher price. That's where we were until yesterday. Then we got to minus seven and minus seven you have to hold your nose and buy something because it means the markets become a coiled spring. And that's a big reason why I got more constructive last night. Now even though the oscillator will no doubt start rising it to daily today it will still be in negative territory, because it's a measure of an accumulation of days. In other words, there's no danger that the markets going to come in overbought tomorrow even after today. We're still barely oversold oversold kg. Of course, that's not the only way to measure the level of fear in the market. We've also got this volatility index this vix for short. And just a matter days, the VIX were from 17 to 31 where it was last night. Now that is a rapid change in sentiment. They call this thing the fear gauge and when there's too much fear you need to do some opportunity buying. That's what happened this morning as the VIX started to plummet. A high vix like we had yesterday coupled with a deeply negative oscillator reading can make up for a ton of bad news. And look when the whole market successively negative you can see some truly wild swings in individual stocks. Yesterday, as I mentioned, we have good numbers from a host of cybersecurity firms. Normally, you would have expected a lot of enthusiasm from the analyst committee. Nope. They were just too scared. They're under this task. We just got tepid, fiery iterations and price cuts, not boost but cuts. And that's at Uber unrelenting pessimism on talking about it. And by the way, it's not worth listening to win skits. Get that data. Sure enough, when sentiment turned today, both stocks war and the stocks work. Now, when you look at Okta, and you'll get CrowdStrike. We're talking about those. What'll happen is tomorrow, there'll be people who raise price targets. Why? Because people want to get involved again, they want to shy away now they want to be in. We saw the same thing the other day was salesforce.com. They wanted to shy away I think it'll be in tomorrow. CEO Marc Benioff delivered a true blowout quarter or every metric, but he didn't give you a modest forecast due to The rapidly strengthening dollar since his last forecast. Now in a more positive environment Salesforce would have been given the benefit doubt companies Dutchmen, his track record. We own this one for the travel trust something tolko club members not to miss the forest for the trees. That was a fantastic quarter. And no one cared. The stock got crushed, I thought he claimed. Today though, the stocks come roaring back up almost 10 bucks and I'm starting to look a lot smarter. Then there are the groups that have been folded spindled and mutilated Tatar groups like payments. Payments was a once love sector, because it has little risk is all about payment processing. Think MasterCard, Visa, PayPal American Express, periodic a group like this one gets into a real funk usually because there's some interloper, threatening their lucrative fiefdoms. And this time, it's an alpha quarter firm. It's a betting the credit card industry with its Buy now pay later platform. The idea of these huge companies could be filled by relatively little $32 billion outfit like a firm seems ridiculous to me, even as I like it. But when the markets full of negative sentiment, it's easy for investors to believe the worst. How bad did things get? Well, let's take the most cogent example. We had Dan Schulman, the CEO of PayPal on the show two days ago, he told us an amazingly positive tale about Black Friday sales, not to mention his own Buy now pay later business which is bigger than a firm possibilities for his huge digital wallet technology. You got the monetization Venmo come in. And I thought, wow. But the market said this. The thing is PayPal started already punch from 310 to one eight. Maybe I'll get to 50. But I want to add not so much. Such important. What percent nice final sentiment indicator? How about ridicule? Ridicule? Yeah. When you want to stock and it goes down, down, down, you're subject to ridicule, or at least I'm subject to ridicule by not be a universal experience. But I take the hit so you don't have to speak of ridicule. I felt like I was getting beaten up every single day. Because for holding bowing for the child will trust waiting what for for the Chinese government if we improve for the 737 max to go back in the sky. China finally came through this morning between say I think it was like 2545 and 645. I think no stock flew from 180 to two, it's not done. Now when the markets overbought and get that kind of move. Normally, you would sell somebody but when the markets oversold as it is now I think tomorrow people buy or they get upgraded get reifies to get target place boosts. That's what happens. Don't forget, Honeywell and General Electric have both been laid low by Boeing's prior status. They've done a lot of hardware in these planes. Both stocks can rise on this Chinese news. Even if it doesn't really translate the worst sentiments a fickle beast people every day like today, some people will jump to sell stocks because they feel like they've gotten lucky. What you need to consider is that there are many others who are waiting for the showing to stop so they can go over the top and start buying. And that's where we are right now. Now we had a big disappointment tonight numbers from Docusign. But you know what, it may not matter. Because now that's viewed as a pandemic play in the pandemic. Oh, we're putting we're avoiding it for now. Bottom line Hold tight, higher prices could be in the course for the down and out stocks that have suddenly and incredibly despite the Omicron backdrop being given a new lease on life Daymond in New York, David Whoo. Yeah. Jim boy. Yeah, David.

8:20
first time caller lifelong fan.

8:22
Excellent.

8:24
So I've had my eye on starting a long term position with the rideshare company, most notably Uber. Uber continues to expand its reach with food services, cannabis ordering Canada and now a new him and hers delivery partnership. Both Uber and Lyft. Stocks have been pretty beat up over the last month with COVID. Varian soc. Is now the time to get in one of these or is the space still too volatile?

8:46
But about this all day, because someone came out with a, I don't know some huge price target for Uber. I think Uber didn't get too cheap, but it's it's 38 as of two bucks today does matter. I think good 45 That's a trader stock though. Uber is a trader stock and no more right now. Steve, in Minnesota, Steve.

9:06
Hey, Jim. It's Steve from Bloomington, Minnesota. Excellent calling about five nine. You had the CEO on the show a few weeks ago, and I thought it sounded intriguing. But since I bought a few shares as a starter, it's taken the big plunge. Should I keep holding or should I buy some

9:24
five nine these stocks it really wouldn't matter what which one you bought. These are all trading as a cohort. It got hammered the company did much better than expected you're gonna get a probably another really, really good quarter. Now longer term, we have to check about that technology. But right now for the next year. I think you're fine. Michael in California, Michael.

9:42
Hey, Jim, how you doing?

9:43
I am doing well. How about you?

9:46
I'm doing well wanting to first thank you for providing good advice during the past two years. At home, you're conducting some awesome interviews with some of the top CEOs as I continue to get my MBA

9:56
back you met a new young person get an MBA, I got to salute you Thank you.

10:01
Thank you. So you have helped me become a better investor. So I have a question for you, Jim. As of yesterday, AMC had a pullback, a 15%, while Cinemark had a 2% decline, yet, volumes for AMC are significantly lower than similar larger directional move that occurred in June or July. At the same time, AMC for the press release has had the biggest, biggest day of ticket sales for single title since reopening, and the second biggest of all time with Spider Man No way home. My question, Jim is, due to yesterday's draw down of AMC price crossing the 200 moving average, it would appear to me that this would be a good buying opportunity based on technical and fundamentals for the month of December.

10:40
Well, the fundamentals are there fine. The technicals are not good. There were people who were unhappy to see insider selling, there's a co a call or a cohort of people who own AMC, and they're horrified the stocks going down. They will continue to buy it all the way down if they had to in order to keep the balls there. That's what they do. It's not what I do. It's what they do. Adam Aaron's done a very good job of keeping the balls in the air with higher prices could be in the cards for the down route stops that has suddenly been given a new lease on life because of the suspension of negativity for now. Tonight CrowdStrike bouncy after reporting a top and bottom line beat the third quarter, and I'm seeing if the company can continue to defend itself from the bears with the CEO. Then all birds recently hit the public market and has since been trampled on by Wall Street. I'm trying the newly listed stock on for size. See what you should make a hole that selling and Cygnet has soared this year but to point back today are investors getting a buying opportunity in the jewelry Kingpin. I've got the company's top brands, so stay with Kramer.

11:48
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.

12:20
Last few weeks, they've been devastating for high flying tech stocks, which have fallen out of style on what we call the Wall Street Fashion Show, at least for the moment. But these rotations rarely lasts forever. And they often give you a chance to buy quality merchandise incredibly low prices like just very morning. Take CrowdStrike that's the cloud native cybersecurity but be riesgo stock was at 298 new all time high thanks to this newfound fears of inflation, which makes growth stocks less attractive. And of course a more hawkish Fed chief CrowdStrike stock fell to 201. Yesterday dumps 100 points. CrowdStrike did nothing wrong. In fact, the company reported last night turns out business is booming, delivered a tremendous sales earnings beat management raising the full year forecast substantially in response to stock nearly jumped nearly 4% I think CrowdStrike would have been really a lot harder in a better environment. Don't take it from me. Let's check in with George Kurtz in the east, the co founder and the CEO of CrowdStrike get a better read in the quarter what comes next Mr. Kurtz, welcome back to Mad Money. Thank you. Georgia just got a copy of Fortune CrowdStrike ranked number one when 2021 Fortune future 50 list. Can you please tell us what that means both for our shareholders and customers?

13:27
Well, I think it really points to the future growth and opportunity and the performance that we put up as a public company. And when you think about the space that we're in, you think about the environment, how important is to protect customers? It's no surprise that we're number one in that. And we've really focused on execution and protecting our customers. And I think it's great recognition for us and certainly for all of our crowd strikers.

13:54
Yeah, can this also have to do with a couple things that are in your console, you're very good at explaining why you're good. But the net retention level is going over for only about 10 seconds in the console. I think an amazing statistics, maybe you can explain to people what that means.

14:09
Well, a big part of our model is being able to trust sell into our customer base, we've got 21 modules that are in our product portfolio on our platform Falcon. And a big part of our success is being able to get into a customer with a few of the modules and then be able to cross sell into those and you know, we've got 66% of our customers that for more modules, but essentially what we've talked about is achieving greater than 120%. We give out the full year numbers at the end of the year, which means that we're selling a lot of new subscription modules into our customer base.

14:41
At the same time, you actually point out point blank, you are taking big business from Microsoft a lot people feel so powerful company and Symantec I mean Hawk Tandberg competive. guy bought Symantec. You're saying you're winning they are you call them legacy vendors, and they also have been hit with massive ransomware attacks. When you go into these Guys, I mean to customers who have these two, do you say, Listen, that's got to go if you want to be safe?

15:08
Well, I think they tell us it has to go, in many cases, a lot of the breaches that we respond to have legacy technology in place like Microsoft and Symantec. And they're just not capable of keeping up with the advanced threats that are in the current environment, which is why we've pioneered artificial intelligence, protection and detection on the endpoint. We've got one of the largest data modes, we collect a trillion different signals or events per day, and we use all that advanced information to create protection for customers and drive these AI algorithms. And it's really the community immunity, the crowd and the crowd strike, which continues to make our our technology smarter as we add more customers.

15:48
Now you want to contract that I have to believe as a bragging rights contract that every day when you go into anybody, they're going to be interested that you got it the cybersecurity and infrastructure security agency, CIA, NSA, I did not even know much about this organization literally had to google it, it turns out, it's some it's the more key more key part of our federal government. How did you get that?

16:09
Well, we got it because I think we've got the best technology in the market. And we partner I think, well, with the US government, obviously, it's very competitive, as you might imagine, to win an opportunity like that. This came out of the executive order. And I think, you know, the current administration is doing great job focusing on security with Sissa. And we're proud that we were selected, it's a massive opportunity, one of the largest wins in company history. And really, we're just getting started.

16:37
Okay, now, we're concerned about the competitive environment. Now you watch the show, I didn't know and I stay close to you and some others, the industry, we've talked a lot about Palo Alto they offer on prem and they also offer cloud, when you go up against Alpha like that. And companies do have on prem and cloud, how do you make a proposition that wins?

16:55
It's very easy. Our technology, our agents actually run on prem or in the cloud doesn't really matter. It could be a public cloud, a private cloud, a data center, our agent runs there, the the management control framework runs in the cloud, which is a real advantage cloud native, we can iterate our technology so quick, we can provide protection, update our algorithms seamlessly. And it really then not only drives better protection for our customers, more efficiencies, lowers the cost. But it also allows us to iterate very quickly and react to these threats as they come out in the environment. So it's a real advantage, actually to be cloud native.

17:32
Alright, well, one less thing. btig Which good good report great Powell wrote not that long ago, he said that over the last few weeks, we spoke with nine contacts the security space, and CrowdStrike and broader trends in the endpoint security market. For the first time since covering the stock, we picked up a notable change in the competitive environment, saying that basically, you're bumping up against a lot of others it Do you think that analysts is looking at, say, with the two small prison,

17:58
gym, it's always been competitive. I mean, it's no secret. It's a competitive environment. But we're winning. And we're winning because the technology works. We're replacing technologies that fail to scale. After two months, we talked about in the earnings report, we replaced a next gen competitor because it felt to work, and two months into their 24 month contract. So you have to have a platform, you have to go beyond buzzwords and architecture. And I think our numbers speak for themselves. And we're really excited about the quarter. And we're really excited about the future for CrowdStrike.

18:28
You should be and also congratulations on this great honor. Because I think that when people are trying to figure out what stocks to buy, they want to look at something like a Fortune list and see you at the top George Kurtz. Thank you, CEO of CrowdStrike Great to see you again, sir. Thank you, Jim. Yeah, buddies back after the break.

18:50
Coming up, this company's got so but is this shoe stock street ready. Kramer spreads his wings on the heels of an IPO that's got investors in knots next.

19:10
On the market came roaring back today, there's a whole class of stocks that are still very much languishing the formerly red hot IPOs that came public earlier this year immediately soared to sky high valuations. Lately this group has been obliterated, often with good reason. So it's not I'm going to talk about what's wrong with so many members of the Class of 2021 Goodies representative example. company may you may like I got the shoes I like them. It's called all birds. And the ticker here is bi rd. That's the lifestyle brand best known for making shoes from naturally derived materials, although they also do apparel. On all boards came public a month ago, Wall Street lapped it up a well known consumer brands with a fast growing and sustainability angle combined. Isn't that great? It had all the ingredients to generate hype. The old burst deal price of $15 immediately spiked jumping to 32 bucks change foot close In the first day, it's just 129. Elliott dump right out of the gate. But there's a reason I didn't highlight this one right before or after it came public. It's a simple reason it's too expensive. Sure enough warbirds people in that first day, and since then the stock has been cut in half, literally cut in half. And now it's just over $1 over the IPO price. In other words, anybody bought the open market well.

20:24
So now at this price, be it worth considering. Right dive into the details sheet. There's nothing particularly wrong with the company offers. It's not like they screwed up big time. But this decline in themselves, it's at the stock simply never should have gone so high in the first place. And that's hardly unique to one company. We've seen this pattern over and over with the IPOs in class of 2021. Just a series of great companies with lousy stocks, they trigger Oh, I love that grill or clear secure, I use that that's a security solutions company see it all the airports get ripped through the line. The problem in each case, the investors bid the stocks up to ridiculous levels, not because they like the fundamentals of the company, but because they liked the product. Or to put it another way, your fans and the merchandise set you up to fail. As for all birds, there was a price where this thing would have been enticing, but you never got that price. This is a very popular footwear company, their most iconic product, the wool runner, which is made from sustainably sourced wool and carbon negative chemicals was dubbed the world's most comfortable shoe bike none other than Time Magazine. There are a lot of consumers who want something environmentally friendly and many investors feel the same way. I do it with William Sonoma, they're very environmentally friendly. One of the reasons why I like the product so much. But when OPERS came public a month ago, the fixes they were pretty darn good. Not great. Very good. In 2018 2020, the company saw its sales grow from 126 million to 290 million, which translates into terrific 32% compound annual growth rate over the same period of gross margin what they make after the cost of goods sold jumped from 46.9 to 51.4. And while the company is indeed losing money, that's because they're spending heavily in order to expand we like that to not include the big digital business and even some retail stores. They have 33 Now, however, like I said, the numbers were good, but they weren't spectacular. Albers is seen as revenue growth decelerate in the first six months of 2021. They grew at 26.7%. At the same time, while the margins have expanded, their losses have also expanded which is not ideal. On top of that they had negative cash flow from operations in the first half. I don't like that at all. Put it all together. It's kind of nuts. The stock was almost double ones first day of trading. And that was after the book runners had raised the price range and increase the numbers of shares the deal, investors had just such a racist appetite for the stock of Allbirds and that first day, but their appetite vanished within 24 hours. It sure didn't help them. Wall Street started fretting about inflation. This weekend all the richly valued growth stocks just got hammered. But the worst was yet to come see on Tuesday night, Ober supporters first quarters publicly traded company. Well, I thought the numbers were pretty much par for the course, Wall Street was clearly disappointed the stock plunged 16.5% Yesterday in response. Now it's not that the quarter was bad. It's not even like it should have been surprising. Auburn is actually gave you preliminary third quarter results in their own IPO prospectus. And the numbers they reported this week were basically in line with Nigeria's predictions. Even better in some places. We're talking about 33% revenue growth rising gross margin secure supply chain. So what didn't go wrong, something has to do with some oddities of Wall Street, for instance, the share count, the earnings report use the pre IPO share count, because the quarter ended September, however, many analysts use the post IPO share count, which includes nearly tripled the amount of shares to make the consensus estimates, the result was a loss per share that appear to be much larger than expected. Even though actually the opposite was true. Unfortunately, because we live in a world where robots write the headlines, and I mean that by the way, artificial intelligence, you saw a lot of stories but aubergine put a weaker than expected earnings. More importantly, though, I think investors they were friendly, underwhelmed by the guidance. Remember, that's the future and we care on money. And all the professionals care about the future. The guidance, again, wasn't really bad, but it also wasn't great. And that's a wake up call for those who bought the stock because they love the shoes. When Allbirds gave you their full year forecast, it was a tiny bit better than expected. However, the forecast for 2022 was a tiny bit worse than expected. In the scheme of things. The numbers were basically in line. But if you're hoping for a blowout of so many people were because it's a brand new company, you did not get it. Which brings me to the real problem with all birds and his fellow travelers. There were way too many people hoping for a blowout had to figure that there was no way they would do a blowout, or I'll say wouldn't come public now. And it's first a peak oil versus valued at $4.7 billion, which is incredibly expensive for an unprofitable footwear company with a growth rate in the 20 to 30% range. Even when the stock had pulled back to $19 and change earlier this week. It was valued at 2.8 billion roughly eight times that your sales estimates not earnings, but sales and that's a lot for a company that makes shoes versus not some cloud software company with turbo charge growth rate. There's no snowflake here. Now at this point the stock was formed around 16. It's now valued at 6.6 times six year sales. Is that cheap enough to make things interesting? I don't know. I mean stick it's just a little bit more expensive that and that's times earnings. This is a consumer product company. And I really prefer to value these one a typical earnings basis. But Albers has no earnings. We don't have a sense of when it will turn profitable. If you really want a piece of this one. You know what I booked 12 bucks. That's what it would sell a trade at five times sales. It's still difficult but at least easier justified. But again, there's been a ton of this kind of overheated IPO market just Calpis the Honest Company came public in May I went your way from it at 19 told you to wait for deep pullback, it's at eight that there's Dutch Bros when it was 53 I said you should wait for it to sink below 40 Even as I love their coffee stock then soared to 81 earlier this month make me look bad. But since then the stocks collapse it's now at 47 Down 10% For it was trading when I said you should wait for a pullback and I think you can go lower because it's just still overvalued versus traditional merchandise thing Starbucks, I could go on and on with these. But the bottom line, this has been the biggest year for IPOs in history. And many of these stocks are split into ridiculous levels right advocate setting their investors up for failure. And that's what happened to all birds. I think go lower before finds a bottom but I still like my shoes. Mike in Georgia Mike.

26:25
Hey Jim roll up his sleeves, buddy. I need some help. Jimmy chill is here to help upstart I mean, before the quarter announced they had a blowout quarter and a DRS dropped 60% What's going on

26:38
okay so I was discussing with Jeff marks who's from my the brain trust that is runs the chapel trust that's Investing Club and I also with Ben Stokes Research Director Mad Money we were both just shocked that this thing could go down so much. But then again, look where it came from. I think upstarts terrific but it got too overheated. It's not DocuSign which now has lost a lot of its mojo upstart can come back my my idea Mike is actually to buy some. But remember people are locking in profits and upstart a lot of people have a very big profit. That's your enemy. Just in North Carolina, Justin.

27:14
Hey, Jim. I'm calling about NerdWallet. Like, yeah, what do you think about the stock?

27:19
Okay, when did you phrase it just right. I like the app. What about the stock? No dice. Here's the problem. We are happy we have a lot of companies. I was actually trying to think about whether to put NerdWallet in when I was thinking about well what stocks were too hot versus the products that everybody loves. I should have NerdWallet penalty box 15 minute major don't even know if they have those. How about Ross, Illinois Ross. Hey, Jim, big

27:44
fan. Appreciate your input on Global Foundries, their new Ford relationship, recent financials it seems like they have a willingness to go after the lower end of the market. If there is if there is a less sophisticated end of that market chip manufacturers.

27:58
Tom. Tom Caulfield is a man predictable Maryann is trying to satisfy everybody and I think he can. He has got the full features he's taught me to speak of those. Those are the ones say that auto companies are using and he's got high performance. I think he's doing a remarkable job. I think Global Foundries which unfortunately not been that good of businesses, even admits is a great business and I think there's going to be multiple years, Tom Caulfield's a winner. I like that company now Allbirds the stock or the company or the shoes what am I talking about? I'm talking about the shoes and those are great now let's talk about the stock that's not so great could go lower, much more mad money had good my exclusive with Signet jewelers now there's a good example that sells at a very low more will towards earnings, not sales. If you're pulling back today, is it time to propose a plan to add your portfolio? Remember every kiss begins with paper? I'm talking to see you then we're armed with the tools to help beat the scourge that is COVID-19 But stop Yes, I'll reveal no Eric was rapid fire tonight's edition of the lightning round. So stay with Kramer

29:07
sometimes a stock stock that we like will sell off for no good reason whatsoever. So the shareholder base missed the memo that the markets feeling a little down. But we'll take signatures okay si G, which you might recognize the parent company of Jared sales, Kay Jewelers, among many others. Here's the stock that's been one of the best stories that we have ever identified. And we've identified since the bottom in March of last year. See it's going from a turnaround story to a true omni channel powerhouse. But in the last couple of weeks the stocks been slammed first because of the pin action for the not so hot retailers like me GAAP, then because the arm cron variant has got investors freaked out about any change Lionel's more traffic. This warning note signal and Porter what I thought was a terrific beat race yet the stock got thrown in the meat grinder tumbling 5% To me, this is an eight second earned dollar 43 per share. What's the reason looking for 72 cents same for sales 18.9 Wall Street one 11.6 fourth quarter guidance magnificent. Best of all, the stock still trades at less than nine times earnings and certainly cheaper is less retail. So let's talk with Jenna. Jenna Drosos. Jenna is the turnaround or CEO of signatures for more about the quarter. Jenna, welcome back to Mad Money. Hi, John. Thanks so much, Jim. When people see a stock down four, they tend to think that something's wrong. Let's go right to it. How was Black Friday?

30:22
We had a great Black Friday and Cyber Monday weekend. Jim. We saw momentum continue. We had very strong October, which we talked about in our earnings call today saw that continue into November. The Cygnet team is ready for holiday we're stocked and staffed. We have great new capabilities for customers buy online pick up in store, same day delivery great assortments that are performing very well.

30:47
Balance Sheet. How's it look?

30:51
It's very strong. I think that's a good story at Cygnet, a great working capital story. We've been working on the the health of our inventory over the last several years now. Our clearance is down significantly, our inventory turn is up 50%. It's really an exciting story there. And it's giving us the liquidity that we need to invest to continue to grow. We announced that we had advertising up 50% Last quarter as an example. And we continue to add new digital features to help customers have the experience that they want online.

31:24
Are you still doing a lot of NFL football, we've been doing other ways to be able to get ahold people.

31:30
Our marketing program is much broader than that now, but we are proud that k is the hall of fame sponsor for the NFL, and definitely consumers will see us on TV, hopefully on that Georgia Bulldogs game this Saturday. But we we we definitely are doing a much broader range of marketing. Now it's much more database more personalized. We're targeting bridal shoppers with bridal messages, gifting shoppers at the right time. So I think our data and analytics capability is really coming along and paying off for us,

32:01
you get a lot of commercials that Georgia game because you're the best defense I've ever seen of gentleman, Georgia, and there'll be a lot of punting by the other guys who do things I want to talk about, because you have really made a major change. One thing that happened before you got there was that you had your company had the reputation maybe the worst workplace for women. Okay, so workplace. The other thing is, is that you had a giant credit department that was actually running the company. Now you've excellent credit, and you just got, again, an award for a great place for women to work, how were we able to turn this around such a fast period of time.

32:34
I think it's been a true team effort across our company, Jim, we are very proud to but for the second year in a row be a great place to work certified company. As you know, that's something that the employees vote on. And we've been listening to feedback for the last number of years now making improvements in our culture. We made a lot of improvements this year in our compensation for employees, raising our hourly wage, adding new benefits, offering holiday surpluses for our team members who are working so hard around the clock this time of year. So I'm very proud of the efforts that we've had in our employee experience, making sicken a place where people can come and stay I I know it's a big story in retail right now. The turnover and attrition that people are seeing but we're seeing the opposite. We're actually down 60% In our attrition among new employees in our field team. Well, that's

33:27
okay. I know gratulate the team but obviously you've led a great pathway to brilliance here. Now. Another thing that I find find very intriguing was that you seem to know that people were going to shop early and you had the inventory that was necessary. And it turns out they did shop earlier than we thought this year.

33:46
That's right so we've been using our consumer insight and trend predictions to guide how we plan our assortment. We predicted months ago that customers would be in the market earlier and we turned up the dial on our marketing support we got the right product to the right stores. And we serve customers very well in brick and mortar brick and mortar traffic was up considerably versus year ago they'll still down to two years ago. And an E comm we lapped almost doubling of our E commerce business last third quarter with 14% growth so very strong on that front as well.

34:21
Okay, last thing you always come on right about now and tell us what is hot what are people giving? What are the great Christmas gifts I know you always have a great design artists and brand name what's selling very well right now.

34:35
We do we're seeing pretty broad scale strength right now. Diamond fashion jewelry is trending for women and for men. That's a very interesting new trend men buying for themselves but also their partners buying for them. And then we're seeing gold jewelry do very well also among men and women. Some of the new lines that are particularly hot in bridal are Monique Lea and had seen the Nina Tournay that we launched last year. Vera Wang has been very strong Neil Lane. So we've a very good broad scale strength in bridal. And then in fashion the new Serena Williams line is continuing to do very well so we're excited about that one for this holiday season

35:17
also loves want to thank you you are your advertising is the best ESG kind of advertising. I've always felt that you treat men and women of all races colors, Creed's equally, I wish others did the same thing in their advertising.

35:33
Thanks so much for that, Jim. It's really important to us to show all kinds of relationships, all kinds of love, that's something that we celebrate, it's it's really the purpose of our company to inspire love. So it's very important to us and and beyond that I you know, if you go to our website, you'll see how strongly we feel about corporate citizenship and sustainability. We have our own netzero goals were part of the UN sustainability compact. I mean, we really take it very seriously. Oh,

36:01
it's terrific what you do with gratulations. Once again, it's a great quarter. There's going to be profit taking periodically after the run that you've had. Jim Joseph, thank you so much for coming back on Mad Money.

36:10
Thank you, Jim.

36:11
This has been a turnaround on every single level it is so impressive symbol si GE getting chance to buy it at eight times earnings that seems to keep the net money back in.

36:27
A storm is coming. So give us a call. Kramer's got the answers to all your burning questions. The lightning round is next

36:44
is time and then the lightning round is over. Are you ready? stay dead. With me Island Georgia me now.

36:58
Hey, hey, boo. Yeah, Jim. Yeah. My question is, yeah, my question is, you have guided me through man money for the past decade in investment strategies. Thank you so much for that. Thank you. I want a suggestion regarding the biotechnology the ticker is d i R.

37:20
Yeah, Dr. George skank goes, Boy, I've met him many, many years ago up in Boston. He works in that he runs that company. And I've got to tell you, he is part of a class so SmithKline I spent a lot of time folks with GlaxoSmithKline they may have something that could be very, very good again against Omicron. It's very early very early, but I like it. I think you should own the stock clock in Florida, Clark. Hey, Jim, how are you denying could have a you Clark? Good. Fantastic. Hey, listen, I

37:47
just wanted to call and get your feelings your opinion on Enbridge end,

37:51
that shock has just been in the House of Pain however, it does heal 7%. That's our Monaco. They've got a great long term business. I don't understand why it's going down. Other than being brought down by the fact that oil suddenly went from 80 to 70 to 64 by Enbridge mark in Wisconsin, Mark.

38:09
Jim, thanks for taking my call. I got a semiconductor stock for you. Bank of America just upped their price target from 70 to 75. It currently trades in the low 60s. The ticker symbol is all and the name of the company is on semiconductor.

38:30
We've had a sale Cory on multiple times. I think he's a genius. He put together Cypress for this. He's got the best automobile chips. He's got Internet of Things. That stock is a buy to me, George in Florida, George.

38:42
How are you Jim? Diane in Boca Raton. Oh, actually what's going on with at&t Jim?

38:51
I had a grandmother Nana, Mary. And she always said if he did anything Sunday, if he had nothing good to say about someone, then don't say it. Susan in New York, Susan. Yes. You're up. Hi, how are you?

39:08
I'm good. Mr. Kramer. How are you?

39:11
I'm pretty good. How are you?

39:14
I'm well. Thank you. Thank you for everything that you do for us.

39:18
Thank you. Thank you very much. Thank you.

39:21
Oh, you're welcome. My question to you today is Robin Hood.

39:26
Oh, no, no, no. You know, I had a grandmother though. Here's the problem with Robin Hood. They've got the wrong customer base. They have a great app. But remember when I had that young person come on and said Why am I using Robin Hood? Because I'm tired of Candy Crush. There's got to be more to it than that. And that ladies and gentlemen is the inclusion of the lightning round.

39:49
Lightning Round is sponsored by TD Ameritrade comm to make sense of the day's most critical Mark machinations in no time flat. Stick with Kramer for a special no huddle next time

40:15
turkey for inspiring me to get in the Getting your show is a bit of a joke to you. He wants you to know that you have transformed me. Thank you Kramer

40:34
he's a baby. It's because I'm from Philadelphia and I love a good fight. But I'm not going to let up on this vaccination issue not now not ever. There's something very good happening here. And if we could only go zero tolerance on COVID, I think we could finally beat this. First, don't forget that we're on the cusp of producing what we needed from the store antiviral drugs and antibody formulation now today from GlaxoSmithKline that could perhaps one day Blunt, The Omicron variant, the antivirals they could be a real godsend. Pfizer is doing everything you can to manufacture enough this stuff to reduce the risk of hospitalization or death by 89%. The clinical trial data on this thing is incredibly at the feckless FDA. So let's roll on Pfizer's drug, even as it recently proved one from Merck that looks like less than half as effective. Two weeks ago Pfizer applied for an emergency use authorization federal government's paying 10 million pills $5 billion in an effort to transform the way we treat this disease. Let's put them to work as soon as possible. Pfizer one government zero. At the same time, we know from statistics out of Johns Hopkins that so far no one in that medical powerhouse facility who's gotten COVID Despite being vaccinated has died from it, sleeping vaccinate, that's why you got to get shot. When you take these two details, you get a scenario where If only everyone were triple vaccinated, it is now of course obvious that the original efficacy was overstated. We can pretty much take the threat of death off the table in potentially millions of a hospital. That's very good when you see 90,000 Delta cases a day in this country the most in the world, and will soon have many more with Omicron especially if the news today that case was detected in Minnesota from a gentleman who just traveled to New York City for an anime convention yet anime I went to the site. Okay, if that sounds too good to be true, it's only because we can't get our act together as a country. The massive resistance Yeah, massive resistance to getting vaccinated has become a huge problem. Anyone who won't get their shots is a potential breeding ground for new, more dangerous strains of the virus, particularly those who are compromised with immunity. At the same time, the at home test situation in this country is intolerable and idiotic. Our government spending fortunes to buy nearly everything that could stop the pandemic. But we're not giving at home tests away for free. Instead, Abbott Labs is marketing the best one on its own. If you go to the UK, their national health system gives these tests away for free. Here we can find these tests for as low as $14 per box. I've got tons of them. Local Government will reimburse you if you've covered by Medicare. But well, Abbott's been singled out for price gouging. Abbott makes this great product by next now, I think that's ridiculous. 14 bucks isn't too expensive, just ridiculous that the government wants subsidize something that could be so useful by more than giving the people so if you won't take the vaccine and the government isn't making it easy to get tested at home, that means you're far more likely to get sick and die from the same disease. It's barely does any damage to someone who's gotten the shots. He scientific breakthroughs mean nothing if you have leaders hiding behind ridiculously the first or 10th amendments to assert your right not to get vaccinated. As I heard some politicians say this morning on Squawk Box. The First Amendment is about freedom of speech, not to do with vaccines there, which has the government has been forcing people to get for over a century 10th amendment that reserves unenumerated rights to the states. But again, there been that federal vaccine requirements before whether we're talking smallpox, smallpox or polio. I was President Biden would take more of a stand on this issue. But the FDA and the CDC are so wishy washy, if not foolish, then I'm sure it doesn't inspire much confidence. The Oregon stream may be the break we needed. A form of the virus that's both milder and more contagious allowed me to replace the Delta variant as the dominant strain. Unfortunately right now, it's just going to be used as one more excuse not to get vaccinated. Sadly, we can stop this whole thing in its tracks if the White House ever decides to get really serious, but our leaders lack the political will to do so. As long as we keep coddling the anti vaxxers COVID will linger. And that's the last thing we want in our great country. I like to say there's always one market somewhere. I promise try to find it just for you right here. Oh man money on Jim Cramer See you tomorrow.