Transcripts For CNBC Mad Money 20240713

So bad that were going to be debating whether were in a serious recession or depression. We have pockets, though, of strength Like Technology and health care. But those pockets cant offset a very weak backdrop, can they we saw it again today. The dow lost 218 points. The s p 500, it tumbled. 7 . But the techheavy nasdaq also had the darn gall to rally. 51 , and was up a percent most of the day. Oh, the indignity. If you make technology that helps businesses cut costs by firing people, or having them stay home, youre doing great. If you make something people literally captain live cant live without, medicine, terrific Everything Else is a drug here staggering layoffs and the big drop in the index i am worried about, or at least a lot of what im worried about which is 9 s p 500. It gets worse. If you run a business leave it to the u. S. Economy and not chinas economy, well, now your stock is getting walloped. Over and over in the earnings season we see Companies Report an incredible 2 1 2 months, then their business fell off the cliff at the end of march. These companies desperately need the lockdown to end. That may not be enough as long as tons of consumers are still worried about getting sick rational okay, now that the economy is gradually opening, many investors believe that there will be winners and losers, but crucially, the winners are the same companies that were winning during the lockdown. Alphabet, facebook, microsoft and the like, the ones i love, the ones i says every day are fine the list of losers is getting a little longer. Classic example, staples, proctor, mccormick, yeah, the spice company. Love this stuff. Almost reach for this. Wrong function and i got to tell you something, those stocks have been winners, but today they got hit as many people are now betting that the economy could come back strong the socalled v. Nobody wants to bet on the retailers or restaurants that benefit the most from a comeback because social distancing may be too hard for them, okay. I talked about that last night we had to take out seven tables out of my restaurants. I guess we can quadruple the price we ask people to pay all that stuff is getting hit. The highest in med tech fliers, amazon, shopify, dexcom, pay pal unstoppable. Seems so the staples and retailers should be moving the opposite direction. Some have tech economic sensitivity, adobe, retail, either were headed for a recession or were not in other words, somebodys wrong here [ buzzer ] so how do we deal with this contradiction . The way we always do on mad money. I like to resolve these situations by bringing in people who are smarter and better and more informed than i am. And right now nobody knows more than the executives on the front lines of both health care and tech, okay, and, yes, Retail Executives like the c. E. O. Of cvs health which is one of the largest retailers in america and also one of the Largest Health insurance providers thanks to its acquisition of aetna cvs just reported a terrific quarter. Believe me, it was, and they stuck to their guns with their guidance most do. While the stock spent most of the day higher and opened really nicely, i think based on the Excellent Health care story as i keep telling you people like, it will succumb to the gravitational pull of the retail group up against amazon. And the death star clocked this one 80 cents at the end of the day. Curious, maybe wrong, dont take it from me lets hear from the man himself. Larry, welcome back to mad money. Hey, jim, great to be here. Thanks for having me you have pretty much everything, retail, health care. We are just mystified. You reported an amazing quarter today. You kept the guidance intact, most people are cutting. Front and back stores were good. Im coming to you saying, do you think the stock was just down because, well, thats the craziness of the market . Ive been looking for someone doing as well as you and its hard to find jim, we have a great strategy we have excellent execution. Were putting up the proof points jim, what were seeing throughout this pandemic, this Health Crisis quite frankly is a validation of our strategy of making health care local and simple while improving the health of those we serve jim, you and i have talked a lot about making health care local by meeting people where they are whether its in the community, in the home, in the palm of your hand we are seeing use cases emerge through the pandemic that speak to the role of all three lets call it, jim, you know, the omni channel of health care. And, jim, im hoping what were seeing, these proof points, you know, serve as a catalyst to the growth of our stock and a validation of our strategy in your strategy, you have health hubs. You also made a commitment to the president to have locations where youre doing testing youre doing both and where do you think we are just in terms of were all out of testing away from you i know you got a thousand places that you do it yeah, jim, you know what, we have had Great Results with our largescale drivethru testing by the end of this week we will have tested about 100,000 individuals with realtime results. Last week we announced were going to make that testing even more local, bringing it over the course of the month of may to nearly a thousand cvs pharmacies were going to utilize our drivethrus and our parking lots were going to use the swab and send test. Were also going to be using mobile capabilities to go into the historically under served communities which have been disproportionately impacted by the virus. Jim, were also working on a b2b solution for aetna and care mark clients as they think about their various return to work programs. This will be the first time i wanted to get tested last week my doctor said, youre in new york we just cant test you will this be a case where if i called ahead, i got an appointment, i can get a test just because i want to get a test whether im okay . Well, jim, we have been using the cdc guidelines and its a great example of how we brought our digital capabilities to life youll go online at cvs. Com. You go through a simple checklist. And if you have any of those symptoms, it validates your need for a testing strategy, or through validation by your doctor like i mentioned, we have tested about 100,000 individuals utilizing those capabilities gotcha. Okay, lets talk about how retail is doing. You had a really good quarter. Im trying to figure out how much of it is sustainable, how much of it was because of the pandemic and, therefore, pantry stock so to speak. Whats your outlook given were going into a recession, at the same time were opening up the economy . Im trying to make some sense of it yeah, jim, our Retail Business did have a great quarter. Year over year operating Profit Growth was up 28 . Jim, about 40 of that was the result of activities directly related to covid during the month of march weve had an awful lot of pull forward prescription refill activity as well as pantry filling, whether it was the medicine cabinet or the cleaning cabinet. You know, were seeing that reflected in our april results, but, jim, i got to tell you, i couldnt be more proud of the work that our retail teams, our pharmacists have done in terms of you think about those millions of americans that suffer from chronic disease, and the maintenance medications associated with keeping them happy, and i could tell you pharmacists have done a great job of making sure that therapy for those individuals has not been interrupted at the same time, im wondering if there isnt some dropoff my cvs which i go to all the time changed their hours they shortened their hours to me if i were cvs, id lengthen my hours. Yeah, jim, what we have seen and what we responded to as the shelterinplace orders took place, we did roll back our hours to some degree as the shelterinplace orders are now being reversed, were returning our hours of operation to their normal trajectory okay. Now, one of the things that really does steam me as my Charitable Trust is the longterm shareholder in cvs, you mentioned telemedicine which you are unbelievable, 600 increase teledoc goes up, but you dont be get any credit. You really are the pioneer of telemedicine well, you know what, jim, telemedicine is a great example of, you know, the use cases that i was alluding to earlier that really bring our strategy to life you know, health care in the palm of your hand. And, jim, its interesting that what we have seen is telemedicine utilization, not just for individuals with the covid symptoms, but, you know, telemedicine utilization for pcp type of activity and even in some respects Specialty Services so, you know, were very pleased with the growth that were seeing there and, jim, some of the numbers that we talked about on our Earnings Call this morning, there are times when you muscle improvements through the increases that were seeing are the result of the investments weve been making in our business now, i do want to ask you, the Companies Whose stocks are going up the hardest are companies with great Balance Sheets i know you still have work to do on your Balance Sheet and you actually took down some more money. Where are you in terms of making it so that we feel that one day were going to go back to the old days of cvs raising its dividend every year . Well, jim, first of all, we by the end of this year we will have paid down about 6 billion of debt tied to the acquisition. We are on target to delever our debt ratios down to the low three times, by 2022 were comfortable with that plan we continue to maintain our dividend, you know, at 2 a share. So we continue to work to enhance value for our shareholders last question and i know this is the toughest one. Everyone is talking about, listen, when we get the vaccine were going to be fine, get the vaccine. Do you think one, do you think we can get one two, do you think the end of the year is too aggressive and three, can we all get it or will it be boutique instead of scale . Well, jim, once again, youre talking about the roll of our Business Model because lets carry a bit of optimism with us because i do believe that our researchers, our scientists will develop that vaccine you know, some say early next year, some say 12 to 18 months but lets be optimistic that it is coming. And, jim, you think about those millions of americans that need access to that vaccine right thats the role that cvs will play all right well, look, larry, i want you to stay safe. The quarter was great. The market is a little nutty youre in the s p, but youre not in the nasdaq and i think thats what hurt the stock larry, c. E. O. Of cvs thank you so much, sir thank you, jim. My exclusive, get this. Beyond meat up huge. Mattel, and then Waste Management just ahead. So stay with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer madtweets. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. When i was growing up in philadelphia, we had three big tv stations. Nbc, abc, cbs. If the rabbit ears were pointed correctly we could get channel 29, whatever that was, and pbs if an advertiser was trying to reach a mass audience, you went with one of the three affiliates you could place ads in magazines or newspapers. We had the enquirer. Both had real reach. We had a few radio stations. Then cable came along, offered much more targeted programming, took market share from everyone else over the last 25 years weve seen the rise of the internet and gradually all sorts of digital operators have pried ad dollars from media to reach a target audience, truly targeted, to know your ads are being read or not. Sure enough, the internet changed everything newspapers fell apart. I got a Charity Appeal to give money to the nonprofits basically to keep it going well. Most of the newspapers have been destroyed. Magazines fighting for their lives. Some are charities television is hurting, especially cable heck, even major online Media Operations are struggling here because while the web has been a gold mine for those who can reach both segmented and online consumers, its controlled by the big three, alphabet, amazon and facebook with this latest quarter, theyve pretty much become the only game in town. Every town their digital take over happened practically overnight. Only a couple years ago there was widespread sense channels were winners pinterest, snap, twitter, yahoo yelp, they all had tons of eyeballs most disappeared those thriving like the New York Times at least for advertising, you had specialty sites for reviews. It all seems to be coming together, especially sites that cater to travelers finally the last bastian, you had a ton of advertising centered around live sports programming on tv. Almost all the big games, started with the kickoff and the jump ball. Then the coronavirus came along and shutdown all sports. Without games theres nothing to advertise against. Big digital platforms, yahoo was subsumed by verizon media. Yelp, we dont need yelp restaurants are closed expedia said its down 5 from last year. How about the New York Times today the great lady predicted a stunning 50 to 55 decline in ad revenue. They are doing unbelievably well with digital subscriptions it was a grim advertising forecast for the rest of the industry that caught my eye. Ad estimates are too high. Snapchat, i dont know most surprising, the stunning dropoff in twitter and pinterest. Before covid, twitter was a great place to launch events now there are no events, and the quarter was unloved. I thought pinterest owned a lot of niche verticals, leisure activities last time we learned their ads are shockingly weak. You know who had truly blowout numbers . Facebook, alphabet and google. All three took a massive amount of market share. Ads from consumer Package Goods to deluxe items, sheets, towels, furniture. The big three own Small Businesses, now they own all business, Consumer Packaging thats why their stock is strong facebook has been a dominant player for a while same for google with search. I was done by the strength of youtube. Amazon came out of nowhere they have pulled away from the pack advertising is once again a threehorse race just like when i was a kid just like when it was nbc, abc and cbs. Today we have the same thing, only its facebook, amazon, and alphabet lets go to connecticut. Caller jim, thanks for taking my call of course caller my call is about libre. Are they past their market place and ebay offering they used to have, the payment sis democrat right caller now other retailers are using. I got in at 548. Last night they crushed market expectations, theyre at 740 im wondering if i should ride this out or sell i know this sounds wrong, but twofor. Shopify, theyre both fabulous up 121 is a sign not of something you should bail. That quarter was great its just being revalued youve got to hold onto it wow. Lets go to eric in new york eric caller hey, jim, hows it going . I dont know, man, these are long days. How are you doing . Caller i watch every day with my wife her name is anggiselle. Giselle, how are youdoing caller i have a question about a northeast staple, duncan brands they Beat Estimates and earlier they announced a new partnership with uber eats in partnership with grub hub. What do you think of dunkin Going Forward . I rem the stock for a very long time. Its a good company, it is but starbucks is in the cusp of a major, major turn. And i need you to go into starbucks, not dunkin i do like them both like i said, but starbucks theyve both been knocked out but i think Kevin Johnson has Something Special coming and you want to be there for that. Including beyond meat, by the way, which they have a great relationship well hear from later. Its in deja vu taal take over alphabet, amazon and facebook are the only games in town beyond meat, mattel not doing that well. Waste management, i dont know stay with cramer we could never do what they do. But what we can do it be a partner that never quits. Verizon is the most Reliable Network in america. Built for interoperability and puts First Responders first, giving their calls priority, 24 7. We do what we do best so they can too. [and rachel get done before nap time is over . How much banking can matt within the wells fargo mobile app. Rachel is depositing a check without leaving their home. Matt is sending money to his parents with zelle. rachel [whispers] have you seen my debit card . matt [whispers] no. vo rachel is turning off her misplaced debit card. matt [whispers] babe. vo and turning it back on again. rachel shes up. vo bank from the comfort of your home with wells fargo mobile app. Wells fargo. Every day it feels like we hear about another meatpacking plant thats become a coronavirus hot spot even with President Trump ordering these meat plants to stay open were starting to see shortages in beef and pork which means higher prices. Maybe we shouldnt be surprised beyond meat maker of alternatives reported a spectacular quarter last night heres a stock thats been a wild trader. Plummeting during the covid crash, then rebounding to 100 as of today yesterday. Beyond meat reported a magnificent quarter last night surprise profit only not to us driven by sales, up 141 year over year. Their sales accelerated once the pandemic took hold thanks to the run on groceries thats more than offsetting anything on the food service side that analysts are worried about. No wonder the stock surged 26 today. Does it have room to run lets dig deeper with the founder and c. E. O. And get a better read on where the company is headed. Mr. Brown, welcome back to mad money. Jim, its great to be here. Thank you so much for having me. Its always a pleasure all right, listen, ive known for a while and i know what makes you tick i know what the analysts dont know you run a company thats an ethos, its a belief there is a doctor, i bet you know, foremost Health Nutrition doctor of our time and he said last year that we do not take action and switch to a plantbased diet, what is going to happen is were going to have a catastrophic pandemic. Is that not one of the main reasons why beyond meat lives and is doing so well i think thats a terrific context to start our discussion. If you look at whats happening, you dont necessarily need to be someone versed in biological systems or global eco systems to see a series of incidents occurring that come together as a pattern. Whether you see the Coronavirus Impact here on the u. S. Meat supply or you see whats almost been forgotten, which is the swine flu in asia, or even the evian flu that youve seen recurrences of in South Carolina and ireland. Weve reached the point where there are so many livestock on the earths surface that were running into challenges with keeping that system working and that supply chain is now as many in the industry themselves have said is under enormous pressure. I think we are reaching a tipping point. If we did go to the tipping point, would there be a david faber kind of chided me in this. Youre not a big company yet would you be able to scale effectively to be able to handle what you know is going to be a world that has 10 billion people one day . Jim, as you know, im hopelessly focused on market share. Were a very longterm oriented company. Were going to look at this summer as a real opportunity for us to be relevant to the consumer as they are looking for solutions as the meat supply has been disrupted so were going to take aggressive pricing over the summer to be able to make our product be much closer to the Animal Protein equivalent. When you look at beef which is now 4. 10 on the wholesale markets, you transfer that to retail, we have a fighting chance as we offer value packs by the way, any retailer that wants to offer a value pack for the summer season, we view this as a massive opportunity for us to drive trial and win consumers over into our segment. I am tired of hearing people say, but you know what, the chemicals, whatever. Im looking at the new sausage it is far less fat, far less saturated fat, far less sodium the complaints are done. Yes, thats frustrating for us, too. Were very proud of our process, our process is a clean process it begins taking protein directly from the plant and we restructure that into the form of muscle. You have to compare that with the other process, growing crops and feeding crops to animals then harvesting the animals. There are many steps in that process as well. Its important to look at the process and say which do i prefer youre welcome to come to our facilities, knock on the door, well explain our process to you. We have transparency there we think people have the right to see how their food is being made were proud of our process on the ingredients, we made the commitment to use no genetic modification and no artificial ingredients. We need to make products mom and dad are comfortable feeding to their families i think we follow through on that commitment. What really matters to me right now, there isnt a notion that if you do not have the, you know, the cafeterias in offices, that means its going to be bad. But you showed retail demand in april was huge but i am concerned i interviewed chris at mcdonalds about you, okay. And i know its talking about the trial. He said, i knows i like it he knows i like the product, i wear the hat, he knows im a believer thank you, jim, thank you i said hows it going jim, our system operates best at scale. We dont do hobbies really well. He used the word hobbies take the hat off, i go to Kevin Johnson at starbucks what does he say we have a great relationship with eithethan why . Because you are doing multidecade environmental sustainability hobby or ethos thats terrific its definitely an ethos its one that this generation so clearly understands. As we talked about before, jim, we go to college campuses. The reaction is amazing. Particularly this generation coming up understands that we cant continue to have the ratio of people to livestock in a finite eco system. So we have to start making a different model for producing meat and we have that model and people are excited about it. Its definitely not a hobby and we are working very well with very large qsrs that are global including mcdonalds, launched the test we did with them was very successful. And what youll hear from us throughout the course of this year with new partnerships, new relationships globally with some of the Worlds Largest quickserve restaurants. I have to believe that your joint venture with starbucks in china is going to drive china sales for starbucks meaningfully meaningfully move the needle thats what kevin thinks do you agree with me im so excited about that launch i want to be over there now. I wish i could be there. The moment all these lift its such a great opportunity for us. I love what starbucks has done, commitment to sustainability and health and living up to that commitment its something that im very eager all of our partners, look at the sausage of dunkin, for example. All the incredible benefits there, whether carls or hardees, et cetera. Youre getting less saturated fat, less sodium these are benefits the next step for us is to continue to drive down direct materials and direct labor which we did very well over this last quarter which produced that record gross margin. We have the lowest cog weve had in the quarter were going to keep marching the steady progression and continuing to achieve the cost reductions so some day we can under price animal production. A billion dollars in sales next time wee see each other lets do it founder and president and c. E. O. Of beyond meat. Its not a hobby, its an ethos. Mad money is back after the break. This virus is testing all of us. And its testing the people on the front lines of this fight most of all. So abbott is getting new tests into their hands, delivering the critical results they need. And until this fight is over, we. Will. Never. Quit. Because they never quit. Look, i always tell you that its better to be lucky than to be good. And this pandemic shows us why every darn day because bad luck trumps managements attempts to grow or turn around. Look at mattel theyve been struggling for years in the wake of getting real traction year to year looked like 2020 would be a great year for the maker of hot wheels then covid19 hit. First there were supply disruptions, then toy stores were forced to close as we saw mattel reported last night, theyre having a rough time they posted a 56 cent loss when wall street was only looking for 41 cent loss sales down 12 on current currency basis april doesnt sound too well either arch rival has borough had a decent quarter they have a lot more exposure to classic games you know and love. Monopoly, life, clue and the like the stock has been hammered down again today, another 1. 34 ouch theres only so much management can do when the environment is against you. With the economy gradually opening, is it time to take an op opportunistic approach . Get a sense of how companies are holding up welcome back to mad money. Thank you, jim. Good to be here. Im a little worried because there are some classics here barbie made a comeback when you were here, down 10 of the American Girl down 16 these are classics whats happening i never thought these would go down hard even if were on the cusp of a recession. We entered the year strongly. And as of january and february we were up pacing slightly ahead of market. The decline in the third in march was driven primarily of temporary closure of stores representing 30 of our sales with retailers prioritizing essential items and there was temporary category shift in consumer demand. But were starting to see a change were starting to see a shift in demand total p. O. S. , this is sale of demand, normalized for easter is showing improvement in april compared to march. Especially in the u. S. , when the last two weeks we saw doubledigit year on year increase and triple digit increase online. Online retail continues to grow strongly and perform especially in the u. S. , although not completely offsetting the decline in bricks and mortar according to date, our online p. O. S. Demand in the u. S. Has increased over 90 if the retail environment returns to normal, we expect it will be a good holiday season. But its too early to tell at this time. Thats very bullish when i read most of the analysts and went through your conference call, a lot of it was just talking about how your supply chain which seemed like it had been compromised is now better this is a very positive story that youre telling me about a comeback that could accelerate if the economy really does, lets say, bounce back on the reopening. Well, you know, in spite of the declining quarter, you need to remember we still have very strong brands that perform very well and still resonate with consumers. Hot wheels was up 8 our games portfolio a bit small, outpaced the industry and we gained market share with uno being the number one purchased item in the category globally. Even barbie, which declined, grew market share. And so we see continued momentum, were seeing a positive direction in april p. O. S. So far. With barbie remaining the number one fashion doll brand in the world. All right now, over your Left Shoulder is a hot wheels, which is doing well but thomas the tank engine, iconic brand, it seems to have stalled. Thomas is a great brand just recently prince harry partnered with us to do a promotion. It is a great brand that is evergreen, and were very confident about the return to the heydays of thomas. It is impacted now, but we launched recently a new show on netflix and we expect things return your entertainment background, i was hoping of course, it would be a lot of things which is terrific but covid, that part of your portfolio, is it stunted because no ones making anything well, were very excited about our film strategy and about our approach, mid to longterm plan to capture the full value of our i. P. We continue to develop our projects in motion in time where people go home we made a promise in the development side, working on the creative aspects of our projects and we expect things to continue now, theres probably going to be some impact on timing because of the delay the industry experiences in relation to production and some release schedule but we are very much on track with a lot of excitement and moment in our film and content strategy in the meantime, you think you preserved enough in the Balance Sheet to have enough liquidity if things dont turn quickly or they go back to where they were in second half of march . Well, we refinanced our near term debt and now have no maturities until march of 2023 we entered the year with more than 600 million in cash and access to 1. 6 billion in Credit Facilities so we believe we have sufficient liquidity to effectively manage the covid disruption and continue to execute our strategy okay. Youve got a new line that i think is going to sell, which is called thank you heroes, line of doctors, nurses, emt, delivery Action Figures how is that going and what will you do with the proceeds well, were very excited to be able to support communities in times of need we recognize the role we play as a Global Citizen and have resources to support the communities where we live. All proceeds from this campaign will go to donation, First Responders first its a Charity Organization that were supporting and we really dedicated to Community Support to producing also in addition to donation, protective equipment for medical professionals. We Just Announced 500,000 face shields, and providing grants and donations where we can all right well, look,i do want you to turn around. I hope those april numbers stay strong because it could be a great opportunity. Chairman c. E. O. Of mattel, thank you so much, sir thank you turn around are hard, people. The pandemic is making it tough for everyone the april nubds were much better lets take a look. Mad money is back after the break. Yes. The first word to any adventure. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. I know thatg your true colors every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Were committed to making college more accessibley, by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. I came across sofi and it was the best decision of my life. I feel cared about as a member. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. Announcer lightning round is sponsored by Td Ameritrade it is time. Time for the lightning round rapid fire calls, one after another. Buy, buy, buy sell, sell, sell. [ buzzer ] and then the lightning round is over. Are you ready, ski daddy lets start with davis in texas. Davis caller youre talking to him, jim oh, boy caller youre talking to him. Youre talking to a 93yearold exmu e e exmerrill lynch and vice president. Lets go to work. Caller you do the best job on television. Do it for everybody, and well understand the market better and better thats the goal thank you, sir caller youve done a hell of a job. Thank you caller now, listen,jim, what do you think about crowd strike crowdstrike is the single best Cyber Security company to play for the revolution of being online in the cloud, working at home, i like it very much. Buy, buy, buy im not trying to say anything bad about opta. Thank you, sir robert in texas. Robert caller hey, jim, my stock is cwh. Cwh, theyre making a comeback ive got to tell you, i know its been rocky. I know the stock has been down a lot. But i do think that camping is coming back, and now that theyre opening the economy look, do i just say pound the table here thats a tough thing to do but i did see the winnebego report a good number im okay lets go to dennis in iowa dennis caller booyah, to you, jim booyah. Caller question, apache. Lets just scram. They really did a bad i know mr. Krishman is really nice. It didnt sit well with me lets go to paul in texas. Paul caller thank you, jim, for taking my call im calling for the first time i just want to see whats your opinion about Lam Research Lam is in the crosshairs of the president of the United States of america. He says something bad about china the stock goes down. He says something good, it goes up its too pingpong i cant recommend it here as long as trade tensions are as high as they are right now brian in connecticut brian. Caller booyah, whats going on, cramer not much, you know. Living the nondream how about you . Caller doing well. I appreciate you having me on right now. Im a big fan of the show. Of course all right. Caller real quick, hello to my mom and dad and friend in vegas and fort lauderdale. Love them all caller growing up in connecticut this is a company i knew about from a young age. My grandfather was in the navy and served in world war ii this is a company i believe in, my dad told me about it a lot. General dynamics youre going to have to take a long view on gd because its not the favorite one right now its not the loved one [ buzzer ] the whole group is a little under pressure, but i think good longterm hold lets go to christopher in minnesota. Christopher. Caller how are you doing, jim . Hi, chris, how are you . Caller im good, im good. Im looking at unfi. Oh, united natural . That is the most inconsistent that is like good, bad, good, bad, thats too hard for me, okay its too hard for me im going to have to take a pass on it. If you want natural and you want organic, theres really nothing. And that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer the lightning round is sponsored by Td Ameritrade turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Featuring the Emmy Awardwinning voice remote. All the apps you love, including netflix, prime video, youtube and hulu. And the most 4k content. The best Entertainment Experience all in one place. The economy headed for what looks like a fullblown recession. A lot of well round Companies Got taken down Waste Disposal business, stock has been hammered since covid came along the business is highly cyclical. When there is less Economic Activity we produce less trash thats especially true for construction Waste Management reported this morning the company delivered a solid top and bottom line beat pricing held up and commercial collection volume stayed strong until the second half of march once lockdowns went into effect it took a hit. Management pulled their fullyear forecast thats why the stock was down 2 today. Has Waste Management been punished enough, is it a way to get in or stay cautious . The president and c. E. O. Of Waste Management with where the business is headed welcome back to mad money. Hi, jim how are you . Good, jim thank you. I know you spend a lot of time on your call your people are out there and theyre on the front line. You have to do a great deal protecting them and youre doing it well, we are. Look, probably half of our employees went home and, you know, 20,000, theyre working from home, we did that in four days, five days time the rest are on the front lines. Theyre doing a great job out there. We made sure we put real strict social distancing protocols in and everything were used to now. Its been amazing the job that theyve done let me ask you, a lot of people say, hey, so many people are staying at home. Theyre throwing out a lot of trash. How could Waste Management have a lot of blowout numbers . You were heavily levered construction which is basically shutdown in this country if you look at our businessness we cover all sectors of the economy that includes retail and restaurants and sporting venues and so all of that falls within our commercial and our rolloff lines of business. Our landfills as well. While residential is fine in terms of volume by the way, theres a lot more trash in each container now. Those are up probably 25 . We have to go back to those guys and get a little more money because we didnt contemplate 25 more trash in their trash can. But the commercial business has obviously taken a big hit. Its really part of why we didnt give guidance is because the visibility is pretty poor right now with respect to how that returns and when it returns. To me, when i read your call, i was thinking it is a difficult balance. President wants to get everybody to work. We also have a lot of companies that are involved with sickness and recognize that sickness is not going down in a lot of places but then i see in your conference call, you talk about how you say its a ghost town this is one of the great parts of the country where youre located. My feeling is maybe with the opening there can be a pickup in commercial youve seen it just open what is your estimate or hope for this kind of reopening with a lot of social distancing and lot of new rules id break it down, jim, in Small Business and big business. Big business is actually coming back i talked this morning on the call about how our rollout business had been down at the low point, down about 20 . Now its only down 11 that sounds like a big number, but think about the call back. Thats half of the downturn. Thats mostly big business Small Business is in our commercial line, and the low point, the low water mark was about maybe down 16 its come back a point or point and a half i do think if there is some good news here in the commercial line of business its that we only saw about 1 cancellations and we have aggressively tried to pursue those customers to make sure that they are, in fact, going to try and continue. And so 1 is very low in terms of cancellations what it tells me is Small Business is going to make a shot at coming back right but theres other businesses that we didnt even think of as businesses schools. Sports i mean, these are givens in america. School, of course, opens no sports, well, thats got to be no how do you thats got to be a lot of business that just gets lost look, i think 15 of our commercial line of business is schools, and obviously that got shut off literally overnight so theres no waste coming out of the schools im hearing things like 40 of High School Seniors are going to take a gap year, or theyre talking here in houston maybe about having some when they go back to high schools and middle schools go back next school year, that maybe they go every other day, maybe juniors and seniors go on monday and sophomores and freshmen go on tuesday. That in theory would cut our waste in half. The good news, though, is i do think these businesses plan oncoming back, and thats why youre seeing such a low true cancellation number. A lot of service reductions, about 10 of our total customers reduced service. But very few cancellations, which tells me they all want to make a run at coming back. How many will you have to give, say, a free month to so, we put that out there because look, right as this thing started i reached out to a handful of c. E. O. S we have to support Small Business i think they are at greatest danger here. If we dont support them beyond what the governments done appreciate what the feds have done, but we as big business have to support our smaller brethren there universally those c. E. O. S came back and said, absolutely agree with you that offer that were giving, which is really a free month of service for affected Small Businesses, thats not big business or midsize business. Those are Small Businesses you know, the monogram shops and some of the restaurants, you know, that we would give a free month their first month. Look, its not going to be desperately expensive. I mean, its going to cost us some money, but i think we establish some real loyalty coming out of it and that to me is kind of the longterm benefit to shareholders. I think thats an unbelievable move. I wish that is not being extended, jim, by other companies. And really appreciate what youre doing that is a highly unusual thing that youre doing. Thanks. All right thats jim, the president and c. E. O. Of Waste Management, running his business the way you have to run it, for the long term stick with cramer. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. Not that long ago after dispointing quarter, jeff lawson from twilio came on the show and said stop worrying he hit it out of the park. The stock is soaring the headline, its a missed quarter. Are you kidding . You listen to dan, he put up great numbers. April strong stock screaming peloton, i know a lot of you feel its ridiculous its just a bike well, if every gym of any size is closed, well, then you have to get on your peloton i tell my wife take the clothes off, start biking. I like to say theres always a bull market somewhere, i promise to find it for you right here on mad money. Im jim cramer ill seal you tomorrow markets in turmoil with scott wapner is next [ laughter ] good evening im scott wapner on day 129 of the Coronavirus Crisis another amazon worker dies and a new battle breaks out between Americas Health community and the Trump Administration as bad as this has been, its just the beginning one former Top Health Experts dire prediction also tonight we think we know what we know, but nobody knows new reports children are now in danger. Plus, new controversy erupts between hospitals and the