Mad Money w/Jim Cramer 10/29/18

Automatic TRANSCRIPT

The mad money with Jim Cramer podcast is punctured by Fidelity Investments at fidelity, we believe nothing should come between you and your money. So we're introducing zero counties with zero minimums to open an account all because we want you to invest with zero tradeoffs visit fidelity dot com slash value. To learn more. Zero count. Minimums zero counties of ladder, retail brokerage accounts, only expenses, charged by investments such as funds and managed accounts for commissions interest charges or other expenses for transactions may still apply. Fidelity brokerage services number NYSE SIPC. My mission is simple to make you money. I'm here to level the playing field, all investors. There's always a bulwark at summer, and I promised help you. Find mad money starts now. Hey, I'm Cramer welcome. They're mad money welcomed. Okay. Marta other people and make friends. I'm just trying to save money by not just educate putting context, so call me at one eight hundred seventy three CC or tweet me at Jim Cramer has this market has this market. Become a slow motion train wreck sure seems like after a hideous day restarted strong, and then burst into the red. Dow plunging two hundred forty five points s plummeted point six six percents of the NASDAQ knows north one point six percent. Do we need to start thinking about selling everything going entirely into cash, or is this just business as usual in a highly exaggerated form to we have some other analogues we can belie- upon listen to my whole career. I've only counted selling everything four times of Tober fifteenth of nineteen eighty-seven October eighth of nineteen ninety eight March of two thousand and Tober of two thousand three were dead. Right and one was dead wrong. And almost destroyed by head from worst. In today's breakdown with the Dow was up three hundred fifty two points, then fell down five hundred sixty push for rallying domain close. Only close off to and forty five points. You need some context, which means knowing how these four situations had just quite played out. I the question baby seven going into the your things will pretty darn good. Just like this year economy hit accelerate just like this year. And our stock market was flooded with Japanese money not like this year in the eighties. The Japanese rule of financial world, and they had no qualms about purchasing stocks at literally any price. Hey, drove up valuations through certain levels at the pick. The Dow was telling you twenty nine times earnings, which is an unsustainable level even incredibly robust economy crashed occurred in two parts. First we said about five hundred points from the twenty seven hundred level and a hideous be ditty of October sound familiar, then we had black Monday and terrible Tuesday, which not golf about eight hundred points in two days all told Morton nearly sixty percent opens value in a few weeks. Time those losses may today's session. Look like child's play had the come the pass. Okay. Kupa charlatans have been selling something called portfolio insurance, which basically used futures to stop out any fun down about five percent. But the s and p futures relatively new back, then they're raw they didn't work as advertise down five percents insurance kicked in to a flood of sell orders and a wipe out of. It was like throwing gasoline on already burning building the result the plaque Monday crash. Now, here's the thing. The eighty seven crash was based on nothing with evaluation and these failed portfolio insurance products. Genitive not sure you anything, but the actual coninues doing just fine. Your later if you bought right before the crash you've made that call your losses. If you were in cash like we were my hedge fund because Ken Kramer, didn't like the action. The crash was an amazing buying opportunity was very right in eighty seven. But I was very wrong in October of nineteen ninety eight when I said get out the market had been week for much of September's long-term capitals. Huge stupid. Hedge fund had blown himself up needed to unwind some very large positions minutes halacha big deal, but won't term capital. Threatened to bring down many banks yet the fed was oblivious to the whole situation. I sense a total collapse refute of one maybe perhaps my own funds. Suffering from ill-timed opening experienced massive redemptions, the absolute low point of decline at noon, October eighth I panicked. And I wrote a piece called debt out now for the brand new St. dot com at two pm. Alan Greenspan came to a census now emergency rate cut with lots of liquidity mean jetted by crow. Reverse course, more importantly, the market took off never looked back. I get out now. Call us, perhaps the worst mistake I've ever made at least professionally do not want to repeat that mistake. If that that is willing to change course this time, and it's still can here's what's in back of mind. They did it once they can do it again. They can do it. Unlike nineteen ninety eight I nailed the dot com. Crash in two thousand got remarkable run the NASDAQ in the late nineties, I press my bets even as late as the first week of March two thousand then the rally accelerated with most tech stocks flying into the stratosphere two and a half weeks later, I told people to sell and went into cash for the most part with some gigantic NASDAQ short positions in the whole edifice collapsed. Had I know it's coming pretty easy. This talk in the street dot com. I saw the NASDAQ rollover witnessed incredible decline of our own stock price along with many others as the smarter operators flooded the market with new shares. There were no bids for most of these NASDAQ-listed stocks me, no one was buying following once wiped up more than a trillion dollars a capital, turn a whole generation investors. Can't stop working. They never came back. But the overall impact of the economy was negligible dot com crashes all about ridiculous overvaluation nothing else. So while the tech-heavy NASDAQ got obliterated. The more diverse by five hundred barely got dinged. Now, let's related to Kern as much as FANG, and that's the apple Amazon one seems overvalued. These stocks are actually much cheaper. After today that almost all the tech portion, the NASDAQ one hundred was back, then so I would not be shouting like I didn't March of two thousand that it's time to go. Finally, there's a financial crisis two thousand eight boy, this was historic nature deeply rooted in the economy member, the others weren't okay. Keep the root Federal Reserve push us over the brink with tone series of rate hikes. They obviously there were a lot of other problems. But if the fed had been were dovish, the crisis would have been much less severe. Unfortunately fed believes the economy was strong. They couldn't see the rod underneath back then and the rest of us paid for their coolest. Sound familiar now I bring up these four examples because right now, they are so darn relevant. It's incredible. You've got our own slow motion train rent and as much as it pains me to say this the current situation combined to actually some who worst characteristic of those four pass break down eighty seven machines ran roughshod over the buyers portfolio. Sure inspected now to algorithms tips. They're like machine guns mowing down any buyers today, we've been down for sixteen out of the last twenty one sessions this month, which is very much like October eighty-seven, except at least this time. We only have two more days until we get Mercifully to November the dot com. Two thousand that went off because reckless underwriting economy go so bust, but the bankers flooded the market with too many, low quality internet IPO's and secondary offerings than the whole thing collapsed under its own way. When I told people to get into cash in October of two thousand eight when the Dow was around ten thousand two hundred I got a lot of hate that a lot of hate mail, the conventional wisdom was being sanely responsible. Of course, if you listened to sidestep sidestepped. Hideous declined down to sixty five hundreds March two thousand nine now nine hundred ninety eight I screwed up. I'm misjudge the resolve of the fed just a few days before Greenspan's emergency rate cut. He'd been reassuring us about the strength of the system. I think he was totally clueless. Once you've got a clue active very quickly, and he did the right thing, which brings me back full circle to today's situation right now the stock in single economies in for pretty rapid deterioration. Just like two thousand eight we have a fed this lamentably unaware of the danger like two thousand eight and we have a president seemingly hell bent on putting tariffs everything that Chinese sell unless they change your ways. That's like nothing we've ever seen. Both are horrendous headwinds moon that later, but fortunately, there's no systemic risk here. We're looking at a normal cyclical downturn, though linked with some eighty seven style overvaluations. And here's where I come out right now, the fed is making the same mistakes as in two thousand seventy are they totally misjudging. How weeks a major parts of the economy or thing is even strong Connie's can roll over very quickly. Don't they? No that auto semiconductors chemicals, paper housing construction going south. That's what the stock market is screaming that the Fed's tone deaf to test tone death to his quest for help. I will say this though, if the fed doesn't reverse course, like it did in ninety eight then we continue along and not a two thousand seven path but in one thousand nine hundred seven road, especially if the president keeps slapping tariffs on Chinese seems obvious to me it's not good for stocks may like it for the country. It's not good for stocks to different things. Maybe bottom line. I tell you to get out now, but I've been saying this morning. It's good for weeks and weeks on my main fear is that we could have a mini version of two thousand eight with that that doesn't change course, we're perhaps eight nine thousand nine hundred eighty seven if the machines did too far out of control our one hope if fed chief Jerome pal actually starts listening to the stock market wakes up to the damage. The tariffs can do to the economy, then maybe we'll shift gears just like Greenspan did in ninety eight then we can bottom and even more higher. But as long as pal states committed to the December hike in three more next year. Lockstep without thinking and blinders and the presents tastes committed to expanding tariffs than history says, we got more downside. No matter what Jeff and Tennessee, Jeff. Video from rocky top. All right, man. Good to have you on the shell it, sir. Jim. I was curious if the little majors BP and total have pulled back enough to be accidental high yielders, I am saying yes and telling members of the actual plus dot com club that they can buy be pay the old British Petroleum because it yields six percent, so far I've been wrong. But I agree. It's an accidental high yield or so far I've been wrong. I like to say both Henry and Texas Henry. Hey, Jim happy October twenty nine man had a question about Intel state. Yeah. Bit year right thing. Positive Ariza battles in collector upgraded satellite. The almost five hundred percent games. You think Intel said and other communications companies working in emerging markets like Africa and South America are good kids for the future. Well, this has been a rocket ship. I mean, it was February. It was a two and now to twenty-seven. My take is is that I don't really care. How great it is. I would take out half right now. And then you quit best. Brought but I would not put capital situation. Look the Marcus at that. Right. The fed and the president will determine bottom. But I think we may have more downside if things don't change. When money toxic for this Martin, the fed the president's powers on giving my and hats off the red hat and IBM a both companies touring me here tonight after the thirty four billion dollar deal. And from winter puts down jackets Columbia's ports where can help protect you from the elements even in this market. But after earnings is doc feeling the chill on sizing up the company with the stick with Kramer. Don't miss a second of mad money fun at Jim Cramer on Twitter. I have a question. Tweet Graber tag mad tweets sin. Jimmy mill to mad money at CNBC dot com or give us a call at one eight hundred seven four three CNBC miss something head to med money. CNBC dot com. Epa today's craziness. Here's a relevant question. What's more toxic for this market, still higher tariffs on Chinese goods? Federal Reserve that keeps tightening and tightening and tightening. Honestly, it's tough call at this point. They're just playing horrendous for stocks and the combination to his even worse tape, for example, walk was cuisine won't just find dandy until the Trump administration. Let it be known that it's going to put tariffs all Chinese products. If the next round of talks between President Trump and president Xi bring no resolution we then saw a horrific plunge. Pretty much of it makes sense. It's rational the market's been getting respect the fact that Trump simply will not let the Dow Jones industrial average interfere with his desire to prosecute a Cold War on all fronts against the Chinese in the same way, we spent decades pressuring the Soviet Union. It started with like that with tuna at this point. It's no longer just about trait and that makes it harder to resolve. But Wall Street has never been a fan of the trade war to begin with lately. The pain started spreading to mainstream to whether or not you think the policies just five it's just bad for stocks period. But isn't as bad as the fed this morning. We got some pretty tame personal income consumption numbers, which brought Asya relief from investors who fear. The fed will just keep raising rates with one more height plan in December three next year. The figures were not too hot. Not too cold. Yes. The fable Goldilocks scenario, which investors thought could suit the hawks and the Federal Reserve, including Cleveland fed president, Loretta Meister, and muster. I've got to tell you. I don't know if you remember on Friday Sheikh Boston Nason rally with some. Tough talk. And I think it was unnecessary talk about how wild Soon's the stock market won't deter thinking. Unfortunately, just like President Trump. I think the fed is implacable. I doubt today's numbers will cause them to change the minds just as Trump is going to stick with his tariffs, regardless of the action the stock market fried. Sprite crazy thing is held them. The market can be for much of the day. The retailers were higher on a belief that the personal income consumption figures. Couple continue week dismiss shares of Amazon because the federal surgery more accommodative resulting in a better holiday season. But then we learned to the new tariffs would certainly would hurt the retailers, which by large importing, huge percentage of goods from China. So that group took a header making everyone bought them at the top. They look pretty darn stupid. In fact, every tenth to bottom fishing. This market has made people clean bozos with accepted those who bought red hat during Friday's horrendous session, there's no respite for the weary bulls as the bears everything in sight. So there is no lesser of two evils here. The feds insistence on tightening, regardless of the data makes precipitous course that can't be corrected. The presence and changes some Taras make it difficult to believe that we'll get any help from worldwide growth if anything higher rates and higher taxes are setting us up for very difficult. And if you're not to mention twenty nineteen unless something's done to me, those two different houses of pain. Also, we've gotten positive. Action from a scattering of sectors, the recession stocks tried to make a stand before being overwhelmed by sellers as did the bags which should have been up in the first place. But the overall sense of this market is that there's no place to hide particularly in the dreaded FANG names, especially now that Amazon now both allegedly disappointed. I want to be constructive here. I want to be less hard line. But unless someone from the fed takes notice of the rod underneath this economy and someone from the White House recognizes that our goal with China is to get them to play fair, not two million them across every corner of the earth. Then this market's going to keep falling Kinney and transitions to the fed and the entrenches the president things are not looking for stocks the one silver lining both. These problems are manmade, which means they can be solved, but I are leaders need to be willing to change their minds so far neither seems likely to occur. Fred New York. Fred Jimmy, thanks for all you do for us home gamers, man, we appreciate you out here by your very kind. Thank you, buddy. Jimmy, call you about Alibaba. They're getting killed should I add to my position. Can't we got a Cold War going on with the Chinese? And I've been right to say stay out of the stocks. I'm doubling down on my stat of these stocks, unless something changes, I don't see any change. No, you can't have Chinese doctors pumped up don't purchased by the fed and the president trouble unless they recognize the damage things. Well, let's just say it w much money had a big blue just announcing we'll by red hat to get into new hybrid cloud industry, or at least two dominating the CEO's explained it all just ahead, then after wild ride down one company mansion stay in the green do not miss my exclusive of Columbia sportswear, and how tech taxes and homelessness are getting some of silicon valley's top leaders balking Domus Mike of Salesforce here out. He comes down on opposition, see San Francisco's most contentious measure this election sees to stick with Bremer. Coming up is big blue on cloud nine IBM is making its biggest acquisition ever on Kramer, sits down with both CEO's. This to me is resetting the entire cloud landscape in it's the next chapter of club when bad money returns. I don't know what this hideous day or the fact that the markets become a slow motion train wreck distract us from the fact that there are still pockets of good news, for example this weekend. We learned that IBM will be Quiring red hat. The open source software kingpin, that's integral helping other businesses. Embrace the cloud. It's one of our cloud kings IBM's paying one hundred ninety dollars per share cash, which is why red hat's stock surge. Nearly fifty three dollars or forty five percent today for both companies, right? Add been down. The dumps it for a couple of less than perfect quarters. IBM is eager to double down. It's fast going businesses in order to diversify away from its slower lazy, visions, and if the latest quarter, which was created with a thud by the community. I think they could use red hat's help. And. Yes spice. I IBM's stock was punished today. I think it's a very good move for this company, despite what looks to be a high price tag. Which is why wouldn't you take a closer look at what it means for IBM and the cloud earlier today got a chance to check him with Ginny Rometty, the chair and CEO of IBM, and Jim Weider, she's the CEO of red hat. Learn more. About this transformative deal, and it is transformative. So take a look. Janine? Jim great to have you here. Thank you for coming on may have money Ginnie. You often spoken to us about reinvention of IBM. And how important it is. How important is to have a strong IBM for the country. This is the reinvention with looking for them. It is is this to me is resetting the entire cloud landscape in. It's the next chapter of cloud, Jim because this gym, and I have often talked the first twenty percent of the cloud was really the easy stuff that kinds of done this next eighty is mission critical, secure work. That's gotta move. And that's what this is about. So we're reinventing IBM to be the number one undisputed book that was a bowl claim gained. Because ask you. I mean that is gutsy thing to say, yes, it's a one trillion market one trillion emerging market, and Jim and I were both talking since we've announced this hundreds of notes from clients all reinforcing. Yes. This is what we need. This is perfect. And what they need is as they move. This eighty percent. They need someone who's going to put it we call it hybrid cloud. And what that means is depending on the kind of work you're doing maybe it's data that has to stay on premise in a private cloud is maybe it's okay to go to a public. Maybe it's okay to go to to Amazon or AWS IBM cloud. But boy, somebody's gotta manage all of that decide how to move it. Keep it secure in. Don't lock me in on an answer in that Jim, and I get the choice to chance we'll do together. But Jim, I'm you know, we've been can't supporters of red hat. Here's years ever since cut there. I know that you've taught me that you're Switzerland has so can you be Switzerland and go up against what could be Amazon web services in, Azure, Microsoft. Well, yes, we can. And let me talk about a couple of aspects of that. So first off as we've talked about it. We're keeping red red. So red hat Salesforce red hat's product suite is going to be completely neutral. So we'll continue to work with Microsoft, Google, Amazon others, and our sales teams won't be somehow incented to sell against that. Right. So we'll continue to do that. And I think because of what we can do to exceleron drive of workload onto kind of a cloud native platform, we can actually help accelerate Amazon Google Alibaba, Mike SaaS businesses at the same time, then IBM could be opinionated. So they can take what we're doing. Hey, do it in native. So all of a sudden on IBM's cloud. You can have as worse at firmware to application security. You can have higher performance. So yeah, we can do both. Jim you're wearing blue shirt. You wearing jeans wear red shoes. This not an IBM or outfit. How do you work out? These coach ova can be come on of judo the perfect combination of blue and red. I thought about that ROY g bay of you're right now this it's it's different Carolina rebel year guys pretty standard. Not the IBM of today not one bit right? And so I think this is to us, Jim. This is nothing about this is only about growth this is about growth in what Jim just said about. We're going to be able to grow horizontally because gyms challenges scale, and I can scale him into every corner of the enterprise market, and therefore you can next good for me. Even though people saying a four point only four percent directors, but you're talking about basis points two hundred basis points Kahgar five years, not back in loaded in remember, I'm a high value model that says low single digit revenue mid single digit high single digit EPS, so four points is huge as you said, right? So no, I agree. I think you listen to the critics in someone's some of the bigger statement, listen to balance you to stretch, and you your four point seven percent notes due February twenty forty six I just checked off two point six two five percent points. Should we be concerned about the balance? The dividend matters tremendously view does. And I want your viewers to be absolutely clear that we are going to continue to grow our dividend. And it is more than safe when I say financial flexibility and ample for us, we're gonna pay cash and debt, but remember, we're already strong investment grade. And even with this, we're strong investment grade. And Jim as we said, we're just prudent. We'll be back to what we target is our normal leverage ratio years. And so and that is we're conservative, right? That's right into high single a so that's why I always want to remind all your viewers, right? We ended last quarter fifteen billion of cash twelve billion free cash flow. So we have plenty for inorganic and organic and strong dividend last quarter tough one stock down twenty percent for the year mistake by Wall Street. Not understanding what you or is this the change that people start recognizing where IBM is really going. It's both last quarter, as you know, we were flat at concentrate as you know, and one of the biggest. Things that happened last quarter. Big success? We returned our margins to flat year DeAnne with trying to include years and underneath it our services businesses grew. And that actually the March improvement first time in five I mean, really good progress on all elements of some cognitive somewhere. I would say everyone looked at that. We talked about what it was. But this is also this is a really key point. This combination is going to lift all of IBM that includes analytics a I that includes our services business, and I told my whole team this morning, I spent the day with Jim's team daily ours. This is about lifting all of IBM, which is why we're so bullish about saying. This is this is absolutely accelerates our high value model, so not just revenue growth accretive, your one on free cash flow and gross margin. Now, Jim how do you keep your people? And how do you incent Jim steak? He's been a big hero voice. He's staying well, look, this is the greatest thing that we can do in terms of accelerating. Our business. And growing our relationships with customers, so this'll accelerate our growth, it'll allow us to hire more people faster. And so our people in general very excited about this. This gives us an opportunity to for them to grow their career paths. And as we say, we we're very passionate about open source if there any way to make sure open sources, the dominant platform going forward, you know, this will allow open source to do that. Okay. Now. Let me ask you because you have told us. IBM is really important company to our country to the world that people work there is this your legacy going forward or the or some people say this. She's betting the company she's done a series of many many deals, but this is the bigness one of the biggest deals of all time. Is this the legacy that you want? This is going to be a critical part of IBM's future. And so I think of it as the most important thing for our customers and for our business or I wouldn't have done it. And this is about being number one IBM is number one in hybrid cloud mission critical one trillion dollar marketplace. Together, we are the champions for open gym, this moves, the cloud debate or battle to open versus proprietary. Meaning we believe Switzerland. We should be able to in our clients want to move things around. So this is absolutely important. It is a game changer to IBM do. And we know it's the right thing should we make concerted at all the the narrative last week was that the cloud is slowing. The data center is slow. Caught with two people can tell me that. That's not right that that's the wrong aired of and I would believe you guys is it slowly. Yeah. Look the first twenty percent the easy stuff behind us. Okay. To eighties in front of us in that with this refashioning for. Yeah. Say from our perspective, we're seeing at acceleration as customers start to work on that more difficult eighty percent because that's where we're particularly strong because we are both were strong on premise, and we have positions in cloud different positions club at positions and cloud. And so that next eighty percents where we're in the best possible position to win. This is great pry B M eighth grade for red hat shareholders scrape for both. Thank you so much money that stadium. Nettie chairman, president CEO of IBM Jim waiters presidency of red hat. I wish he goes to the best of luck. Thank you. Man. This has been a brutal earning season. It went to company delivers a phenomenal plow quarter stopped might go down. Anyway, just because it had the misfortune of reporting on a bad day. Take Columbia sportswear the apparel maker you'll recognize his Columbia sorelle mountain hardware, pronto bum. Many of the names last Thursday. This company reported a monster top and bottom line beat and management even raised their full year forecast substantial for the third straight quarter in a row. Yeah. What happened will Columbia stock sold off the next day? Pulling back about two percent because such recession this move seen downright crazy to me and upon further review. This talk came roaring back voting four dollars or five percent today. If you bought Columbia too weak to some Friday, yet a nice win here. And I think that the stock might have more upside up, but don't take this from me. Let's think tape with Tim Boyle, the president and CEO of Columbia sportswear get better since the corner where the company said it, Mr. Bob, welcome back to my money. Jim great to be with you, Tim. I think a lot of people don't know first storied history eighty years second twenty years public of which you've trance the SNP more than twice better. What is the secret of your company, we have accelerating revenue growth after all those years? Well, you know, it's a it's a company that's controlled by the family. But it's it's a public health company. We take our obligations to our shareholders very seriously. We have an enormously strong management team that we've continued to improve we have a global business which. Sometimes people get confused about the impact of the US weather on the company, we have a global business, and we have a very strong board that that make sure that management is focused on the right things, which is high returns for our shareholders. Now this most recent guide up it seems to be directly connected with what you've been doing with project connect, and I want people to understand that. Because a lot of people have these different projects at companies, they never amount anything. This one seems to be materially improving your competent. Well, you know when you've been in business eighty years and been a public company for twenty. And then the businesses really changed from being a local domestic distribution company to global company you develop habits work arounds activities that are that don't bring the business forward. So we we spent really the last eighteen months on this project internally called connect, which is an opportunity for us to streamline the business to really bring it into the the the the current time and make sure that we're set up. For efficiency running a big business. And frankly, the returns have been quite good. We're just now starting to see those returns, and we expect that the two thousand nineteen and twenty and beyond will really be where we find significant savings and significant improvements in the business efficiently. You talking conference call about about the two hundred billion dollar round of tariffs today. We heard that the president's talking about how has put tariffs on everything if the Chinese don't come to the table and give in you've got a big business China, and you also source from China only ten percent of your total import value to the US from China. But what would it mean at the president put tariffs on everything that we import from China what it means for Columbia? What would it mean for world trade, you think? Well, let me first talk about what would do for Columbia. So we have a global business in the high thirty percent of our total businesses outside the US. We have a big business in China. I think it would hurt. Our Chinese business are US business is as you said earlier is supported by a product source from all over the world. But I think it would do significant damage to the US economy to have that kind of impact on tariffs are are categories of merchandise apparel, footwear, already some of the some of the most heavily tariffs in the United States and really in the world. And we've we've find that one of our strengths is navigating these significant tariffs in order to make sure that we offer consumers the best product at the best price. But when you when you throw tariffs on on a sourcing country, like China, that's so important for the rest of the world. And and so important for the US. There's there's no way it's going. Mean anything other than higher prices for consumers in the US? Okay. Now, I know that I think people have been willing to accept let's say premium prices from your company because you have been probably the most use a great term. You say your DNA is in technology, basically. But you also are tied him with fashion. This has been a winning a few guys how important is just fought influencers like the on the heat three D gets recommended by outside by gear junkie. He's allow you to charge a premium price that matter what don't they? Right. Again, this business has very low barriers to entry the apparel footwear. Business are easy to get into. So you have to be able to differentiate yourself. So we use lots of. Developed innovations technologies that we've developed in house with our team of scientists that really work heavily on on solving problems for people who like to spend time outdoors now that coupled with my mom that nobody can replicate is really been a winning formula for the company. I got you can't leave it at that. Just tell people about your mom because they'll be saying what does he talking about? He's a businessman, please, tell us. Well, you know, our company was founded by my grandparents, and my mom, and I took over the business when my dad died was a tiny little business, frankly the year, my dad died the company was doing a million dollars in business. The next year, my mom, and I took it over. We went to half a million, and we struggled my labor. We had some big help from our neighbor here at Portland we had one of the early employee's. At Nike helped us on a on a board of advisers that helped us find our way, and we've really been able to build the business basically using the formula where we design and market from Portland and we distribute globally, and we source globally. And that's really been about expanding. The unique points of differentiation for the company, which frankly have been our innovations on our styles, and my mom, well, though, congratulations eighty nays ING years in twenty years public where you've doubled more than double the SNP greatest peak you at Tim Boyle Columbia's portion of presidents y'all remark. Able company technological apparel laurel that money's back. It is. And then over are you ready skiing? By just in your just, Dan. Impo Long Island. Did I love your show? And I love your our on with David. Thank you. So I want to know about a young event there. I got about ten full you win dividend play by holder. I don't know. I hate commercial real. I mean, honestly, I think that's the next thing. It's gonna roll over. That's what this market is telling me. I mean, you can you can stay the course in it. But that's where I think the real week is coming next after housing after autos and after Kendall's yet your papers after semi virtual real estate, Emily in Arkansas, Emily. Kim with six flags near fifty two week low and paying a good dividend. But the by for the long, I was flummoxed about why they did so badly. It was really quite a surprise to me. So I cannot recommend the stock. Let's go to abbey Virginia, Abby. He first time long time. Okay. Gotta ask you about Northrop. Great earning accelerators. It's been unbelievable to me, ABBIE. Unbelievable to me the defense docks until we get to the midterm elections. These stocks are in such a bear market is. Good numbers. Nobody cares. Let's go to Chan and Tennessee Chan. Hey, Jim big buoy to you from Tennessee. Good. Daddy. Hey, my question is on m Madda Thon petroleum been hat. Good returns before. But I'm getting well. Well, got he'll protection right now. The the stocks that the US stocks are in bear markets. I'm saying a lot of stuff bear market, but that's just obvious. But the oils are definitely it's got a guy in New York guy. They Jim big yuppie Fenella New York. Okay. I'm gonna thank you everything is new for being a boy so reason for greater fight you say try, thank you eight Tim Marvell technology group by picked it up in the mid twenties. Low twenty by hotel. I gotta tell you. I mean, if fundamentals back this is a by because that's how well companies doing. But like I said a lot of other situations. Don't matter right now, the stocks going lark. Let's go to Donna, Massachusetts, dawn. Don, I just want to stay on blood. We got you to coach us through the. I'm sure. Sure. Tries ninety guy. Thank you. What what are your thoughts on the management and development stock symbol the F? And that was read fame was that was the stock RDF that was the first doctor tell you that real estate was cratered. That's what sent me that was the one that sent me to. Running for cover. No way. No way. No how Jerry and California. Jerry. Victor crema. How you doing today? Good. How about you doing okay of bit concerned about this TR P TransCanada of headed for a long time. I know I have to be that is it is where do you see happening when we? Tremendous bear market mode. None of them is being safe by a high yield. I think this represents tremendous value trans candidate. But that does not mean it won't go down. I am not against owning a Stockdale got a valuable business, and it's got eight coverage of that dividend. Let's go to Jordan, Florida, Jordan. All right. How about you pretty good? Hey was curious about sparked global holding the time to buy. Oh, I do not know smart, and I will have to do some work because this one awful working. I think what more Andrew in Texas, Andrew. Jim we both in the TV show was wanting to know about ATM and the new James Dolan news that came out recently. I thought that this company stopped with bottom radio broadcast. It had more worth to it than it does seem to have. And the stock cannot seem to find any any sort of footing here at all it is very inexpensive. But again, that is opinion continue fame of this lightning rent expensive. Does not equal a stock dick and stop going down. Let's go to David Illinois. David. True energy partners. He prospect. I think it's prospects are bright we're going to be a big export of look by natural gas yields wasn't seven percent, and it can pay for that. So I think that it's okay. But remember that easily could good eight nine percent before bottoms. And that was the conclusion of that. Mike big round is sponsored by TD Ameritrade. You may have heard that there's an election coming up next week, but well, everybody else's focused on what that means for congress. Various governors mansions all over the country. I want to focus on something sport. But in San Francisco will decide on proposition. See a small point five percent tax will mortgage businesses to be used potentially double the city's homeless homeless disbelief. But now, I think this is a microcosm for the coun- country at Lord's not just San Francisco because the question is very simple. What a businesses owner their communities. San Francisco's become least of portable places to live in America because there's so much tech money floating around, but nobody likes paying taxes, and you could argue that this is the kind of thing that drives businesses away on the white hand. You've got guys like Twitter's Jack Dorsey and coming out as one of the leading voices against us ballot initiative, the other hand, you've got more Benny off of Salesforce, who are he's pretty binary either your four homelessness or you're just homeless which is could now Salesforce has stock has gotten slammed today along with the rest of the cloud names. But this is a fabulous company and one that has a long history being committed the. Pretty so let's welcome back. Mark Benny off the chairman co founder and Costa yoed Salesforce hear more about prophecy. And how companies doing Mr. Betty, welcome back to money it, Jim it's great to be with you. And thanks for having me. Of course. Now, Mark you have been outspoken and quitting a fabulous up at peace. New York Times about the socialist bonds ability of business and some of us are kind of mystified like we do think you're either for homeless. Discern gets almost tell us, isn't it? This binary is ad or I just because I was homeless once don't get it. And then two biased. Jim you understand the situation here in San Francisco. Very well. I know you have a personal story we're in a crisis of homelessness, and it's a very serious situation. In San Francisco I've made at the same time. It's really become a crisis of inequality. Exactly. Like, you said it's the best of times in the worst of times. Our companies are ripping our economy is ripping here in San Francisco, and you can see great companies emerged like Salesforce, like Twitter like square like dropbox. I mean, I could go on and on and on hundreds of billions of dollars of market capitalisation, you've reported on many of those companies on your program and yet at the same time, a huge crisis of homelessness, seventy five hundred homeless individuals on our streets in San Francisco twelve hundred homeless families with two kids on average each that this is unacceptable. We can't have on one side the most prosperous most successful, and as you can see bullet. Behind me, the most beautiful city in the world. And on the other hand, we have a humanitarian crisis of epic proportions. This is turning into a crisis of an action and indifference, and we need to just put a stake in the ground and stop it. And that's why I'm asking everyone to vote. Yes on proposition. See, I know Chuck Robbins, very well from Cisco as do you? And he saying save seven thousand chronically homeless in Santa Clara county, which is why he's back similar proposition. Even though he knows it won't cost Cisco money. So I mean, given the tax return the change in taxes. Given the fact that there are so many people who are rich. But you got like Chuck you whose opposing this thing. Well, that's exactly right. Jim Cisco is four proposition see sales forces for proposition. See, and of course, many of our elected politicians like Nancy Pelosi and Dianne Feinstein and others are also four proposition. See, but the real issue is this you cannot extract businesses from our city, and look you have a beautiful office here in San Francisco, but you know, as I know you can go downstairs and by just walking a few blocks from here you're going to be in a very serious homeless situation. And it's also crisis of cleanliness. This is turned into a situation where streets have never been really dirtier and have all kinds of problems that we've been seen reporting on in national media. And this this needs to come to an end. That's why I'm for propositions. Mark mitchell. I was out and Simpson two times ago, and there was a robbery right in front of me. Walgreens. And I asked the police what's good. And that person is basically catch him release. They have no place you've no homeless children's. They've. They didn't eat the police. Do not know what to do was my understanding after witnessing this robbery right in front of him. They don't know what to do. Jim. I mean, I was so sorry you're here for dream force. And we heard some reports like that for many of our customers where they had adverse situations you saw a robbery with someone who is homeless in Walgreens. And look that's got to come to an end. And that's why I'm supporting proposition see because of incidents like you have had here in our city. Now, Jack Dorsey is vocal against your view wealthy makes a lot of money with just this. This is this the old Milton Friedman argument that business owes nothing to community. What business does is make money for business and stare orders? Well, you're exactly right, Jim. The question is is this is the business of business business or is the business of business improving the state of the world. And of course, you know, what side I go on. I'm all about how do we use businesses? The greatest platform for change and sales forces worked on homelessness here at San Francisco, we've given more than fifty million dollars to our public schools. We've given away more than a quarter billion dollars over all done three and a half million hours of of volunteerism we run forty thousand nonprofits for free. We totally view businesses the greatest platform for change. And when we're talking about attacks that is one half of one percent one half of one percent to a deal with the number one crisis in our city. How can we do anything else but to vote? Yes. On C. I agree now, it'd be bought my personal view. Obviously people could have different. I well, I have you have got to ask. I know how important you think IBM is to the state of our country that it's just an important company. I know. No that you get along terrifically with red hat. Eddie view on the red hat IBM time what it means for the cloud business. Well, I just thought this was a great acquisition today. I think this is exactly what IBM should be doing. I'd like to congratulate Ginny. She has made a fabulous move acquiring red hat, and they're fantastic. And they've got a world class management team world class products will use it at Salesforce. Everybody knows. They're the kid. They are the heart of the cloud today. And now, they're the heart of IBM. So congratulations doll IBM. Great job. All right. Let's leave it there. And it's more Ben you have chairman co founder and co CEO of Salesforce break to see Mark is always thank you vote. Yes. On C. Remember ceus Kramer? They would be but. Don't be fooled by these up openings, we need a down opening any footing. That's the gospel. Like, Ted is always more markets on my palm. Right here. Mid money. I'm Jim Cramer. I'll see you too.

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