Transcripts For CNBC Mad 20240704

Platforms do a uturn and surrender everything it made after that magnificent quarter sell sell sell you dont want to see walmart soar and then repeal the whole move after an amazing quarter no less it is agonizing to witness amd give up a quick 25 points when the future seems so bright but sometimes you have no choice and i think this is actually one of those times we just had another bad day. Dow lost 291 points s p shed, nasdaq tumbled 1. 7 . Boy, did it get ugly at the close. What do you do at moments like this rather than trying to trade in and out, selling everything and then trying to buy it all back at lower levels, i think you need to learn how to ride out these moments. Unless stocks arent for you see, i think if youre patient i believe youll do better sticking with stocks rather than hiding out in treasuries even if they have much more generous yields than they did a year ago. So lets start way key word here, and that word is patience. Two weeks ago we had the eminent market historian and technician Larry Williams in studio for chart week and he made it very clear that august would be a tough month. It was a pretty good call. He didnt want to sound the all clear in september because he thinks the first 12 days will also be tough. After that, though, he says the bull market should resume. Larry said patience was warranted. He called it the p word. Because this selloff will likely end so you have to sit on your hands while stocks retreat sure, you can get out. Go put your money in a 10year where you get 4. 2 riskfree but i think you can do much better by sticking with stocks for the long term. Does patience make sense for everything of course not. But as i told members of the cnbc investing club at our monthly session today, if you like your stocks and you like the fundamentals and theyre not hurt by a rapid rate increase, that does matter, by the way, you should be thinking about buying into this dip when the market gets oversold, not selling them second reason to statistic with the market im going to introduce a concept thats a element bit ethereal the concept of rain. We accept there are always going to be rainy days market has rain too. Selloffs are rainy days theyre not fun but theyre necessary for stookz to go higher long term because they shake out the weak hands they allow the stocks to grow. So im urging you to accept the pullback the same way you accept the weather, stop looking at your positions every day it helps do hat. Ill use any analogy if it helps. And not just because ive been a gardener for three decades not that long ago i took a video of the flash crash back in 2010 where i came on our air and said the sudden 1,000point decline for the dow was just the stock market breaking down, not anything fundamental and the market was breaking down because it couldnt handle the orders. I was right. The market broke for a moment and it turned out to be an amazing buying opportunity as i looked over the video from 2010, though, i found myself mesmerized by entirely Something Else birx whats known as the ticker underneath the picture. You can see that the ticker which holds the price of stocks. As those stocks passed, i noticed dramatic gains that most stocks have made since that happened in 2010 there were losers that were trading too. They were very few and far between. Even intel is up since 2010. But i was more caught up in watching block after block of a Company Called intuit the Small Business Service Software company. It was really incredible it kept coming by. Intuit now trades at 486 it was in the 40s when i saw it. Yeah in the 40s now, in the interim from when it was in the40s what did i see i saw a swoon from 107 to 79 in august of 2015, buy, there was a decline from 231 to 182 at the end of 2013, buy and a 386 to 187 beatdown when covid hit in 2020. Buy. Intuits experiencing a dive right now too, selling off from 716 to just under 340 at its lows before turning around to 486 right now. I know intuit had a hiccup in one of its earnings lines to justify somewhat of a selloff here and it just lost one of its best people, alex chris, who headed up the Small Business selfemployed group. Hes taking over as the new ceo of paypal. But intuits doing so well id rather think forward than backward its a buyable blip just like the others can you imagine owning this phenomenal longterm winner then getting spooked out and selling it at 100 or 200 or 300 or 400, each time just to avoid the shortterm pain in the house of the house of pain and stay in the house of pain its only natural to want to avoid pain each time you could have held out in bonds rather than sticking around intuit although the yields were much worse back then but you can see how little you really make in bonds versus some highquality growth stock that happened to have its Ticker Symbol come by during the clip i saw. This day its going from 485 to 486 for heavens sake. You would have been better riding out the downturns rather than trying to get cute and swapping in and out. Still the dispiriting nature of a day like today which opens fine and then cascades its not lost on me or you. I watched the market being begin to pirouette down hard while jeff marks and i were rung the monthly investing club meeting. I had to fight the urge to say look, this things going down today, so you better get out and maybe come back to better prices i could intuit, so to speak, that today would have some heartbreak, in part because of the viciousness of a couple of stocks the viciousness with the stock of drugstore and Health Care Company cvs was manhandled when its pharmacy benefit manager subsidiary caremark lost a big blue shield contract to amazon and a company run by mark cuban. I also saw how walmarts stock got absolutely clobbered on really excellent earnings. It was obvious to me that these were terrible omens for the day. Sell buy, sell buy of course i wanted to say just get back in at a lower level but i know better. Thats very, very hard to do think of it like this. I cant tell you whats going to happen at cvs. I dont like that stock. I havent for a long time. And thats because i get the creeps when i go there because i need to call for help every time i want to get any name brand product under lock and key i used to stop by during work to pick up what i needed for home but now i just order from amazon before i leave my home and there it is, faster, less aggravating, when i get home. Cvs now is a horrendous Business Model compared to amazon but how about the walmart . I figure the analysts would rally behind it and raise their price targets tomorrow because thats pretty much what they always do. Lets go back to the intuit situation. Do you think i can even recall what happened to caused each of those vicious swoons over the past 13 years . Something went wrong with the company . Did Interest Rates jump up as they did today did some rival product come . I have no idea all i know is there were plenty of days like today in the last 13 years and each one of them could have been a great moment to sell into it but only if you were able to get back in at a lower level. Unfortunately, again, i think the vast maintain of you couldnt do it i know i couldnt. Bottom line, i dont want you sacrificing huge potential gains like intuit on the altar of perceived safety because when you look back trying to sidestep these relatively small declines tends to give you worse returns than simply staying the course and riding out that rainstorm. Lets go to peter in new york. Peter. Caller hi, jim how are you doing . A big booyah from new york. Thanks, peter whats going on . Caller were big fans of yours. Thank you caller now that everyone is traveling again, why is airbnb continuing to go down . Well, thats because peter, people ill tell you why. Because people arent smart. This is a stock that has had repeated breakdowns. And ive recommended the stock after every single breakdown because brian chesky the ceo is a great operator and they have a great app and i am with you, peter. I think that when we get really oversold airbnb is a buy david in california. David. Caller hey, mr. Cramer ive been watching your show for two decades and i just retired from cal poly. Fantastic caller i have a question for you. I own two stocks in my i. R. A. Account that i would call safe stocks with pricing power, pay decent dividends they sell similar products similar p e ratios however, one has better earnings higher margin and less debt but the others about to split into two companies. Im wondering what you think the companies are kellogg and General Mills. I think that General Mills is an Amazing Company and theyve done a lot of stuff to be able to diversify away from pure food including buying blue buff which was a brilliant move and i say that as a dog owner. Kellogg weve got to see how those different pieces work. Lets give that one some time. And thank you for your cal poly work that was great doug caller how are you doing im doing well. Whats happening caller not a lot love what you do thank you, doug caller my question, jim, is about the sustainability and profitability of carvana, a stock moving forward last quarter they posted a 40 higher per car sold profit and still were in the red. Well, ive got to tell you something, doug, i think youre right to find the situation problematic. Right now theres a really good article in ate Automotive News saying the car dealers have way too much inventory and that is very worrisome to me and its been a great way youve made a lot of money in carvana. I think its time to Kaching Kaching kaching. Right now might feel like one of those times where it would be just so great to get out of the market, avoid the losses but maybe staying patient here will pay off down the road on mad tonight as we just discussed todays tape was miserable and i see rates going higher im not blind to this stuff. So should investors turn to a company like real income which goes by the Monthly Dividend to ride the turbulence . Ill see if this could be the stock for you. Talking to the ceo of course then earlier we held our monthly meeting for subscribers to the krrns investing club we had too many Great Questions sent in by club members that we decided to answer some of them tonight. And you will not want to miss my interview with a company ive tried to have on for 18 years. Thats cintas. Yes, its got the finger on the pulse of two important sectors, small and medium sectors in the Service Industry the backbone of our nation and im checking in on the state of both of them with the companys top brass. 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. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. What do we do when the higher dividend stocks have been crushed by renewed bond Market Competition . As longterm treasuries have soared in recent weeks and theyve done that very quickly consider the case of Realty Income the Real Estate Investment Trust Company i like because it owns more than 13,000 commercial Properties Across the country including a lot of retail Realty Incomes claim to fame is they pay their dividends on a monthly basis, which is another reason why i really like them. Right now the stock yields 50. 4 . But this is a tough environment for them given the bond Market Competition. I think thats why the stock has pulled back more than 5 since Realty Income reported a solid celt of numbers just over two weeks ago. Then again i like the underlying business because their top tenants tend to be convenience stores, grocery stores, Dollar Stores has this one come down enough to be enticing . Lets take a closer look with sumit roy. Hes the president and ceo of Realty Income. Mr. Roy, welcome back to mad money. Its my pleasure, jim thank you for having me. People see the stock go down and everyones just talking about how quickly Interest Rates have gone up and i think some people will probably say you know what, that could cause a real problem for Realty Incomes tenants. Could you explain to people why a very super fast rate hike still doesnt mean anything to your actual bottom line . Yeah, its my pleasure, jim and like you said in your intro remarks, if you look at the actual constituents of who forms the revenue line in our p l, its largely companies and industries that you mentions its Dollar Stores, convenience stores, drugstores and grocery they represent more than 30 of our revenue line and if you look at the makeup of those businesses, they are largely insulated from what is happening in the higher Interest Rate environment especially if you look at the actual operators within those industries that we are exposed to they happen to be Companies Like walmart, kroger, 7eleven, Dollar General and those businesses tend to actually do quite well in an environment like the one that we find ourselves in. If you go beyond the makeup and look at our Balance Sheet, it is as strong as weve ever been we are an aminus rated business and our cost of capital and cost of debt has gone up visavis others but if you look at the overall competition weve gone up a lot less than others. We were able to continue to execute on our Business Model and continue to be viewed as a defensive company that most have associated with Realty Income and just a few days ago on tuesday i believe it was we declared our 638 consecutive Monthly Dividend incredible. Let me ask you, there will be people who say jim, i know youre behind this one but these higher rates are going to hurt all the tenants, so there probably are defaults and there are probably people who are pulling out. But thats not the case, is it not for our portfolio, jim. Like you said, we reported our earnings just a couple of weeks ago. We have a 99 occupancy number, which is the highest level its been in the last 20 years. If you look at our credit watch list, which we monitor very closely, its at 3. 7 , which is again the lowest its been in the last five years. So some of this is obviously intentional. Its the way weve gone about creating the portfolio and thats why we feel very confident that despite what you see happening in the broader economy we feel very insulated from that. Now, you have to put on some sale leasebacks including one giant sale leaseback in the gambling area. Are you feeling confident these will work out . I think so. In fact, im very confident that it will. In fact, theres a backdrop to all of this that is very interesting for our business, jim. If you look at we looked at about 300 companies in the s p 500 that have about 1. 6 trillion of real estate sitting on their Balance Sheet and these are businesses that are not in the real estate business and if you look at their same Balance Sheets theyve got about 1. 2 billion of debt that is comingdue through 2028 so you compare the refinancing these companies will have to consider and you compare that to the sale leaseback product that is an alternative source of financing for these companies, and suddenly our product starts to look very compelling. So yes, i think this is a beginning of a trend we did the transaction that you mentioned with wynn resorts when we bought their encore asset in boston for 1. 7 billion we did another very large sale leaseback in the Second Quarter with e. G. Group, largely convenience stores, actually all convenience stores, largely located in the northnortheast these are very highquality assets and that was a 1. 5 billion sale leaseback. And i believe were going to continue to see this trend in the near term and beyond i know you talked about how youre constantly looking at the credit as you just mentioned you took on some medical clients, some doctors in a box i guess, some people would call. Thats what stephen king said in his most recent novel. I like that. You like that credit you think they do well i think theyre going to do well because again, i feel like Hour Health Care is going to be delivered to the consumer. That too is going through a change you know, the traditional form of delivery where you immediately go to the hospital when you have an emergency need, et cetera. Those models have obviously resulted in very expensive, you know, delivery of health care. We believe that the new model is going to have some semblance of concepts that are going to be closer to the consumer base. And that is an area that we are very focused on on participating in and its very much aligned with, you know, the locations that we are very comfortable with. Retail locations that tend to be closer to the consumer and if you look at some of our larger exposures like cvs and walgreens, even if you listen to some of the Health Care Providers like tenet, et cetera, and you listen to what their ceos are saying it is very much aligned with what im suggesting here so if we could be the onestop shop from a real estate perspective for some of these concepts, i do think that will be the model of the future i think youre right. One last question. Are you working hand in hand with your retail customers to try to figure out a way to stop or slow down some of the pilferage . Because were hearing about so much stealing with these retailers when they report, and i know someone like you would offer very common sense ideas. Maybe you can help them. Yeah. I think the problem is beyond just the operators its the laws that we have to take a look at but we are also very focused on that piece, and were trying to make sure that were positioning ourselves in locations where you have a complete balance of things that will allow for those shrinkages, if you will, continue to dwindle down but that is certainly a problem that were keeping a close eye on all right well, im sure youre as always respectful of your clients in trying to make everything work and once again, you pay a Monthly Dividend, which is what people really love so many of my friends who have watched the show are so grateful for what you do. Thats sumit roy, the president and ceo of Realty Income look at their customers, how diversified they are and youll know why its terrific thank you, sumit, good to see you. Thank you very much mad moneys back after the break. Announcer coming up cramer took your questions on todays cnbc investing club monthly meeting. But hes so nice were doing it twice. Mail call. Next fan 1 there ya go thats what im talkin about josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. Switch now and theyll give you nfl sunday ticket from youtubetv, on them. hero fan this plan is amazing josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo for a limited time get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free Samsung Galaxy z flip5. Only on verizon. The citi custom cash℠ card automatically adjusts to earn you more cash back in your top eligible spend category. Hi. You dont have to keep tabs on rotating categories. This is the only rotating i care about. Or activate anything to earn. Your cash back automatically adjusts for you. Can i get a cucumber water . Earn 5 cash back that automatically adjusts to your top eligible spend category, up to 500 spent each billing cycle with the citi custom cash℠ card. I love it. [voice vibrating] upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. Earlier today our investing club held our monthly meeting, oh i love it, where my colleague jeff marks and i go through our thought process for the club, discuss our current holdings, take some member questions its one of my favorite things to do, and we always have more member questions than we have time thats why i thought wed take some of the leftover ones here tonight, give you a taste of what our monthly meetings are like if youre not part of the club and want to be, and i sure hope youll be part of it, you can open the camera on your phone and scan the qr code behind me to become a member or you can go to cnbc. Com investingclub, one word of course. So first up were taking a question from mark, who asks how does one determine when to violate the cost basis and buy more of a stock that has dropped considerably but is still above the cost basis for example, palo alto networks, panw thanks so much the Investment Club is awesome youre too nice. Let me say something, i dont like to violate my basis, period and when i do ive only done it a couple of times, i dont usually like doing it. Its too risky in a case like palo alto which has come down a lot it is tempting to buy some but what i would like to do is actually see the quarter rather than just say you know what, i am going to buy some ahead of the friday quarter and hope i do well ill see the quarter and if the stock gets hit anyway because of the market and its a nice opportunity, then i might file a cost basis but its very rare that i do it. Next up were taking a question from cliff in South Carolina who asks for defense stocks do you remember lockheed martin, l3harris, rtx, aerovironment, Northrop Grumman we just did a piece profiling why we like l3harris you can go back to that on cnbc. Com and take a look you know ive been a longterm fan of rtx just yesterday in the lightning round i mentioned its been punished enough for the problem it has with engines. Lockheed martin has been very well run and in many ways is the most consistent. We like American Tower all three of those are the ones i like lets go to brian who asks whats the best way to scale into a stock like eli lilly or nvidia where you missed the big move and have a small position and want to add even though youre above your entry point. No, no, no you have to say you missed it and you have to say the stock has to godown very big i think between 15 and 20 from the high is where i would buy either one of those. And the reason i say that is these are special stocks and theyve met big, big moves so im not itchingto tell you to be in them unless they come down very hard which they might do. I dont think so but they might do it. Sometimes you have to say i missed it. Lets take a question from heather. As i understand the reason to buy Stanley Black and decker is the Home Improvement projects. Actually its not diy we like. Its the professional, the dewalt brand, and that did very well because they didnt break it out in home depot youre absolutely right, why not home depot Stanley Black decker is doinc. It has a 3 1 2 yield and i like it very much i like the business of remodel and that is a remodel play but home depot had a terrific quarter. Im never going to fight anyone who wants to buy home depot. We already own costco and thats one of our retailers and we own amazon and tjx we didnt feel like we needed any more retail exposure but i like that home depot quarter. Next up lets go to michael in utah who asks jim, when you do your homework on an unfamiliar stock what does your process look like when youre doing research what are some is tools and methods you use . So i start literally looking at the website. Thats a great place to start because you want to learn what product it does, what they believe in, what their ethos is, who they are i like all that, all one place then i go to the most recent Conference Call and i read through that and sometimes i read the one before that to see if theres any improvement and after that i actually literally google i google to see news stories very simple. You can do that too. And then only finally after ive done all that work do i look at wall Street Research to see what their judgments are because i dont want their judgments to influence my thinking, which i think is frankly not too proud. Everybodys better than what theyre thinking ive been doing it for a long time next up we have rosemary or rosemary, sorry, in new york. Who asks do you think the stocks from the i. R. A. Have the benefits of this program already baked in their stock price or is there still an opportunity many of them have been baked in. Absolutely but the markets been coming down and it is the markets coming down is giving you a chance to be able to buy in for all that money coming next year. We own caterpillar for that reason Martin Marietta materials is a company that can do well Vulcan Materials is a company that can do well those are three that i like for it and you might want to look at jacobs they do well and also sterling. Those are my recommendations now lets go to william in florida who asks, i own shares of carnival that are underwater. Should i hold or sell . I dont care where you bought something. I care where its going to where you bought it is irrelevant to me i white out the basis every day to see how i can think clearly carnival is not my favorite. The one that is my favorite is royal right now. And boy, ill tell you, it would have been norwegian but frank retired and so now im more partial to royal last up were taking a question from burt who asks hi, what are your thoughts concerning reits ive invested in them for a number of years and have reaped great dividends many times after gloom and doom later i wished id kept them Realty Income, monthly stream, fantastic. My writing partner is investigating a thing. We speak with the ceo. I think thats a great one to own. I happen to like don wood who runs federal realty. A lot of people are betting against Shopping Centers i think thats a big mistake hes done a very good job but it is case by case ive given you too. I dont want to give you that many more other than tanger i think is doing very well skt. Theyve got a terrific Business Model. Mad money will be back thank you for the questions. After the break. Announcer after the break, is this stock suited up for success . Dress for the job you have when we return this tiny payment thing is a giant pain hi ladies alex from u. S. Bank can she help . How about a comprehensive point of sale system. That can track inventory, manage schedules and customize orders . Thats what u. S. Bank business essentials is for. oven explosion what about a new oven, can u. S. Bank help us there . We can serve loans in as fast as 12 minutes. That would be a big help huge jumbo ginormous woo woo finding ways to make your business boom. Thats what u. S. Bank is for. Well get there together. The first time you connected your godaddy website and your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com everybodys trying to figure out if the economys running too hot or not hot enough, but if you want a clear read on the situation in this economy you need some insight into whats happening with the bedrock of the u. S. Economy, the small and medium sized businesses. And i always tell you, that is the backbone of our country. Which brings me to cintas. And thats the company you go to when you need to buy or rent uniforms for our employees as well as things like restroom supplies, first aid safety, really important, Fire Protection really important, cleaning products. Heres a stock thats been an incredible longterm performer now fuld back 7 from its highs. You better listen up because this may be the opportunity. I havent seen it down this much after a great quarter too in mid july but most important, nobody understands small and medium sized businesses better than cintas so what do they see and what do they do . Lets talk with Todd Schneider hes the president and ceo of cintas to get a better read on whats happening so exciting. First interview. Welcome to mad money. Thank you, jim. Thanks for having me its a pleasure to be here you know, we do have a pretty good read on business out in north america. We service a wide breadth of customers. Everything from a twoperson shop on main street usa to a multilocation National Account that would be a household name to you so you name it weve got it. How Many Companies do you think you have under your belt we have over a million business customers and we have 44,000 employee partners that service those million business customers. Every morning we have 12,000 trucks that roll out of our parking lots and take care of those we see them everywhere. Its amazing. I hope theyre really clean. Always. Well maintained and whats exciting about this is our locations, our partners take care of our customers and they help them they help those customers. We call it get ready for the workday. They help them with things like image, safety, cleanliness and compliance and as a result of that where we are today is were the largest provider of rental workwear in north america. Were the largest provider of vandelivered first aid products in north america were one of the largest Fire Services companies in the entire country. What are your customers saying are they worried the rate increase has been very rapid. No one has a million customers you have to give us a sense of what theyre saying. Yeah, as i mentioned, you name it weve got it what we hear from our customers and by the way, were in our customers every single week. Weve got eyes, weve got ears, weve got minds that are helping those customers. And what were hearing from them is business is still good. Hows that possible they raise rates endlessly yeah. Theres no doubt and i care about how Interest Rates, where they are. And the reason, main reason i care, because we have, you know, a pristine Balance Sheet what im mostly interested in is how it affects my customers. We have such a wide breadth of customers. Some are doing incredibly well some are struggling. Some are trying to find the best people still and struggling with employment really . Still . They still are. Still trying to find the best people is challenging. But we have some that are flourishing, some that are challenged you name it. Is that a different mosaic than a couple years ago . Is it tougher now . Certainly the employment market is easier but still not easy its still a challenge to find good people. Because of your unique position you might know if people are still expanding or are they worried about expanding . Whats the tenor the tenor is it depends upon your industry, it depends upon your geography, but in general things are still we see good momentum in the marketplace. Thats amazing. Oil and gas, these are all places youre seeing good growth we service i mentioned a million business customers every week but theres 16 million businesses in north america. So we think theres incredible runway available to us to grow our business and heres what i know is this once we go from a million customers to 2 million customers theres probably going to be more than you think thats possible for sure its possible. Thats exciting got good momentum i run some businesses and i know the uniform business is great. But this first aid business, theres a box that you have. And i look at it and ive always told employees if you get that box the Insurance Companies are going to say you know what, they had cintas, its the gold standard, they did the right thing. The Fire Department says the same thing it is different than the others. People like to see that. Its a Good Housekeeping seal of approval is the way i look at it well, i appreciate that and we like to talk about helping our customers open their doors with confidence. And when it comes to safety, whether it is first aid products, aeds, clean water, eye wash stations, those types of things, but certainly fire service items, we talk to our customers and we ask them, hey, whats more important to you than the health and safety of your people . And they tell us theres nothing more important are there other adjacencies youre thinking . You have customers that loved you. You probably have other things theyd like you to be bringing to them. Jim, part of our Corporate Culture which we believe is our absolute number one competitive advantage is we dont believe the answer is at our desks we dont believe the answer is at our corporate headquarters. We think the answer is with our customers and our employee partners so we get out and we travel. We talk to them. We say what are you struggling with what do you need what voids could we fill and we learn we get better from that. So were always in search of another product extension, another business extension, service extension. But we dont need that we dont need it but were always in search of it because theres such a great opportunity where we are absolutely. Now, a lot of times i get a call about you. Ive done many profiles of your company. And what ive always felt was in good and bad times you still seem to do pretty well youre one of the most consistent companies in the country. How are you able to be that way . Part of it is our Corporate Culture. Weve grown our sales and profits in 52 of the last 54 years. Incredible. I dont know anyone else who has that record, frankly its impressive and were very, very proud of it tomorrow were going to be celebrating our 40th anniversary of being a pubc company. Weve raised our dividend every year since we went public, since 1983, and last year we raised it 17 . So were very proud of that. Should be but our culture is such that were constantly innovating. We find that the status quo is completely unacceptable. Were really successful, but we feel like if were standing still were going to get past. So lets keep moving when i say i want you to own consistent companies, its on days like today you have to think about a company like cintas youre going to look back and say what was that blip that allowed me to get it at such a good price thats Todd Schneider. Hes president and ceo of cintas the symbol is ctas anyone whos watched the show over the last 18 years knows this has been my Small Business choice if you want a company thats consistent. Mad moneys back after the break. Your calls on the thunderous lightning round. Next this is dr. Arnold t. Petsworth, hes the owner of petsworth vetworld. Business was steady, but then an influx of new fourlegged friends changed everything. Dr. Petsworth welcomed these new patients. The only problem . More appointments meant he needed more space. Thats when dr. Petsworth turned to his American Express business card, which offers flexible spending limits that adapt with his business. He used his card to furnish a new exam room, and everyone was happy. Built for dr. Petsworth business. Built for your business. Amex business. It is time its time for the lightning round on cramers mad money. Calls one after the other play until you hear this sound and then the lightning round is over. Are you ready, skeedaddy . Time for the lightning round on cramers mad money. Lets start with dave in illinois dave caller dr. Cramer, my mad tuscan olive grove tycoon. How are you . You got me, dave. Speak up you got me whats happening caller jim, this 200 billion Market Cap Company is best of breed among Enterprise Software companies they reported strong q1 results last may and reiterated similar Forward Guidance for me a nobrainer but more importantly jim, your thoughts on salesforce. Okay. So salesforce, dave, thank you for the kind words, is going to have its big dreamforce meeting. Im going to go out there and see it the Charitable Trust owns it as you know weve owned it forever i understand every high multiple stock is coming down well have to see what they say. You about daveu know i like salesforce and im not backing away from it michael in pennsylvania. Michael. Michael, speak to me youve got cramer. Caller can you hear me, jim . Yeah. Im there. Whats up . Caller jim mmhmm. Caller since this Company Reported earnings last week its done nothing but fall. Can you tell me when i should start buyingar month of sofi i think sofis fine they had a really good quarter obviously the stock went up a lot. Its come back down. What can i say i think Anthony Notah does a terrific job its still double from when we saw him at the ceo conference when we went to santa barbara. Lets go to bill in connecticut. Bill caller hey, jim. Thank you for taking my phone call of course caller im a longtime fan i started watching with my dad years ago. Hes since passed but im keeping a Family Tradition with my son thats what i want. Caller my stock today is american airlines. Were not going to recommend the airlines right now other than delta which we think is having a very good quarter and why are we doing that . Were cutting back on discretionary spend because were getting a little nervous that people themselves are getting nervous because of how bad the stock market is and the bond market. Lets go to carlos in texas. Carlos caller jimmy chill booyah to you, sir. Chill says hi whats happening caller i would like to get your wisdom on an lpa slash ai company. The company is ui path one of those high multiple companies that i just think theyre losing money theyre supposed to make money lets wait till they make some money. This stuff is all just terrible right now. Lets go to robert in new york robert caller hey, james. Wanted to get your reaction to dan ives article about apple making a bid for disney. Also i thought that was just nonsense i mean, i absolutely love dan. Hes a terrific guy. But i dont think theres going to be any mergers anywhere anytime soon just sorry lets go to john in ohio john caller hey, jim. Thanks for taking my call. Appreciate it. Love your show thank you caller jim, im a longterm investor, just so you know for my question. Ive been accumulating draftkings for about three years. Ive got a big position. And they had a blowout report. Earnings the future looks great best in class. There was some news of disney and fant sxikatics and all of t. But it has gotten clobbered youve got to hold. Theyre the dominant player, the number one big problem is that the markets bad. The stock went up huge but the companys great. Its going to start doing incredibly well, making real money. Therefore, i would say buy some after when its minus 5 1 2 club members get a discount on the oscillator if you want it. Angelo in new york. Caller jim, i love your show down ten points. Are you still recommending Ge Health Care . We talked about it today. We just figure the stock is wrongly priced i went on and on about it today with jeff marks. We cannot believe how poorly this stock acts. Look, im not saying i cant be this wrong because ive been wrong in my career but there is no reason for this stock to be selling this low after being 87, its now at 68 i think its a terrific company. Mris are going to be needed in order to be able to find out whether youre able to get the alzheimers drugs that are coming out there is a seller of unbelievable proportions and we will buy more using a scale probably at 66 when i talk to jeff tomorrow. Now of course were frozen steve in pennsylvania. Steve. Caller hey, jim. Very satisfied club member shout out to my grandkids sarahson and bela. Ive been suffering with coke the last few years im not worried about coke. Theres four other stocks im more worried about right now than cocacola and that ladies and gentlemen is the conclusion of the lightning round announcer coming up, tremors from china and cramers sipping mezcal. Why so sanguine . We explain when mad money returns. You ok, man . The internet is telling me a million different ways i should be trading. Look whats up my trade dogs . You should be listening to me. You want to be rich like me . You want to trust me on this one. [inaudible] wow yeah its time to take control of your investing education. Cut through the noise with bestinclass Education Resources that match your preferred style of learning. Learn your way. Not theirs. Td ameritrade. Where smart investors get smarter℠. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . When i hear about yet another crisis in china all i can think is been there, done that right now theyve got a problem with their shadow Banking System which exists beneath the more public but equally byzantine state banking machine. So im being bombarded by missives from very smart people who tell me that this is the big one. Country garden, a gigantic Property Development company, is on the brink of default and thats causing dangerous ripple effects including perhaps missed distributions at some large trust companies where many chinese consumers keep their savings. Of course almost two years ago it was evergrande, another failing chinese Real Estate Developer that was going to bring down the chinese economy and this have been other crises du jour. Somehow it has the yub dous distinction of being the most powerful country on earth but the shakiest its allegedly about to crush tens of millions of peoples nest eggs especially if theres an actual default in this country we cant imagine having money tied up in a failing enterprise and not doing everything in our power to get out before the crash Many American commentators assume that china works the same way. But thats exactly where theyre wrong. I dont know if the Chinese Government has made it clear that those with money in trusts with exposure to Country Garden that they arent going anywhere. That if they try to redeem theyll become enemies of the state. But man, if i lived in china i would not want to be the investor whose redemptions kicked off a financial crisis. Were talking about an authoritarian dictatorship thats only committed to free markets when it suits the regime if the communist Party Decides its your patriotic duty to stick with country guarden and take the hit you better take the hit. Come on thats better than take a bullet, which could potentially be the alternative of course now were hearing chinas going to drag down the rest of the world including us but weve seen this movie before and we know how it ends. I remember eight years ago when the chinese stock market was crashing pretty much every day that was going to bring us down. Just a gigantic rollover like our market during the financial crisis a slowmoving train wreck that was going to take everything down with it you can imagine every night at 9 00 p. M. Wed huddle over our screens and see where the Chinese Market would open. Whether it would hold. I felt clued in simply because i was worried. I recall well because it used to ruin whatever we were doing at night to check on china. One day my wife told me just go to take your pc and go there. Thats a bar we used to own. Watch it from a high top and maybe get a mezcal every night scheina would go down never holding for a minute. Then one day when i was sipping that mezcal it just stopped going down at some level where the Chinese Government said people shouldnt sell anymore we used to joke it hit the 200day moving average and the presidency was really a technician that was that. The decline ended. It was over. I stopped sipping my mezcal, came back home a lots changed since then including selling the bar because my wife created foss foro, a darn good mezcal company. Federal rules say you cant own a bar and the if president xi decides the problems over like he did when the market crashed in 2015 its going to be over. Even if he needs to send in the Peoples Liberation army to calm things down. Of course it would help if he crushed these neerdowell institutions like our government did with the savings and loans in 1990 by creating a Resolution Trust and selling off all the properties it wouldnt hurt if china cut rates to zero and did some quantitative easing. Instead i think theyll just arrest the neerdowells who brought this on. But i can tell you whats not going to happen. Chinas not going to collapse. As big as those institutions are, and theyre big, theyre not big enough to bring down the whole darn regime because of their ridiculous patently crazy aversion to curing covid with a lockdown and a bootleg vaccine didnt overturn the regime, believe me, this wont either. In that case i think china plays out like it did in 2015 a good reason to have mezcal but not a good reason to panic and sell all your u. S. Stocks i like to say theres always a bull market somewhere and i promise to try to find it for you right here on mad money. Im jim cramer see you tomorrow oh, right now on last call, the graveyard of teslakillers, another oncehailed rifle biting the dust. A bit coin mystery. Why did crypto currency suddenly crash more than 2000 bucks . Space . Black box revealed. Secret finances. One corner of the market doing something it has never done before, and it could have big implications for your money. Speaking of your money there is some good news on how americans are saving for