Mad Money w/Jim Cramer 09/18/19
at Matthews Asia we uncover unique companies across Asia prime to benefit from consumer trends that brought her international funds myths find out what a dedicated allocation to Asia can add to your portfolio at Matthews Asia. Dot Com slash opportunity why mission simple to make you money I'm here to level the playing field all investors. There's always work at summer camp and I promised to help you find money starts out Hey on crater walking money. Welcome the Kramer friends trying to make some money. My job is not just entertaining but cutting teachers so call me at one eight hundred seventy three. CBC or Tweet me Jim Cramer last night. I warned Warner that even if the Fed gave us what we wanted today today the market's still might sell off at least in part sure not when fed chief Jay Pailin NASA quarter point rate cut. Wall Street's immediate reaction was pure suspicion. Oh Oh doesn't have his heart in the re-cut. He's not as worse it should be. He's being dragged kicking and screaming to this rate cut because these are weaker overseas dot here and that's why the averages initially got hammered before the market finally came to a census late in the afternoon though only closing up thirty six points advancing point. Oh three percent Nasdaq declining just west point one one percent I get it the US economy does straight. Does the rest of the does have a lot of weakness so we got what pundits it's recording. A hawkish cut other so clever meaning. It's the last rate cut or maybe the penultimate rate cut. Apparently that wasn't enough for some money managers. So what do these Uber Bulls want that. They were so disappointed day they wanted to be surprised they wanted. POW to tell us that he's enthusiastic about easy and it will find a way to storm the other fed officials those who voted against the cut in other words the bulls wanted Bill Bella check thing chief okay. I'll get this done to your job chairman. Who Won't let up until he wins read talknet the juggler the juggler they want to say the president's back in the train anyone allow the economy to fuller and he's just adjusted? I first half stumbling and now always got the rate cut Mojo yeah. They were hoping for this pumping chief fire-breathing fetchy a chest pumping fed chief I. I wonder if these people ever heard Japex speak chest bumping fitch if he's a straight laced orthodox fed chief. He's not about about talking the market up. I think we're lucky with that. He did not go. All Jim. Warren say what's about rate cuts. Don't talk to you about rate cuts. Your rate cuts recession so let me tell you what's really going on. I defend did cut rates because they see very little inflation and moving to Klein in economics McQueen courtesy of the trade war. It's good if the panicker stumped the stock and you saw that they were in there just throwing you. Steve was asking questions and there's the smart buyers and they did pretty darn second. The worry pal express blades real. It's not acting industrial economies already slowly and given it'll it'll be almost certainly be more tariffs well. We can expect it to keep decelerating in other words. He's not asleep at the wheel to combine. You may even be cognizant of his surroundings. Serve economy gets weaker Powell. Take Action again. That's not what the Super Bowl's wanted to hear. They were hoping the Fed would take a coordinated native approach with the White House and or offset any pain from the trade with China. They WANNA preemptive action before we get more weakness. Basically they were hoping pal would be symmetrical late last year. He tightened repeatedly in order to get out ahead of the potential inflation that he saw coming. No one else did. Why can't he approach rate because the same way well let me give you another cushing and this time from the late Great Danny Green Jay Pal. He is who we thought he was. I mean the Fed. It hasn't had a symmetrical approach to this stuff more than forty years ever. Since the Paul Volcker era they even more worried about stamping out inflation and preventing economic weakness J. Pals very much in that tradition mission. He's not gonNA Apologize. Wake up one morning as a totally new person with totally new priorities some. You're tempted to sell stocks because didn't give you precisely what you want today. Well you need to adjust your expectations. He's a sensible guy. He's a warrior turned investment banker. I'm pretty sure he doesn't end every fed meeting by asking everyone to huddle up and break on through with more rate cuts by the same token you're not going to see a slide. Jay Pal and a hoodie making some startling comments about how contra president trump. He doesn't feel like a bonehead you see when they asked about hey. How do you feel like being called a bonehead. Where do they get these guys. If you were expecting him to snipe at the press of the United States you may have an overactive imagination. The man is as a professional for heaven's sake. He's not like me. How do we put an end to all this crazy. Look I'm not asking powder. Go Full Benjamin disraeli never complain never explain but he's he's created a monster with these press conferences. The truth is he doesn't have a lot to say beyond the Fed statement anyway. That's a good thing you should just release the statement otherwise we're going to keep watching her. Fed Chief get treated like a gentleman Yada by the press as one reporter after another tries to trip him up. I listened to the questions and everywhere in the press to try to get a crack at him. I mean I thought I was waiting for some college reporters. Maybe even a highschool editor in chief to take a shot at the guy doesn't do this to himself. Why just sit there and call and everyone like a kindergarten teacher. Why would he subject inject himself to that. I have expected someone to say Mr Chairman. When did you stop beating Janet Yellen. Please Chairman Pal. Don't do this to yourself often. Don't do it to us. Forget the press conference. No one's that much of a masochist of course this market speaks with forked tongue. There's a camp that's real. We finally put this meeting and rear view mirror that went back to doing business earlier today. Wedbush put sal positive note about new iphone has massive pre order so the buyer swarmed in apple and congratulations. We've got to say to Steve Dowling remarkable person. WHO's helped US tremendously sixteen years as investor relations retired today remarkable job fantastic through all sorts of turmoil. I wish the best of luck we all do and we also got other people buying the bank stocks because there's a chance pals rate cuts may put an end to this artificially inverted yield curve and at the same time he's committed to preventing then. Nikon we from slipping real credit ruining recession yet POWs planning to slam his foot on the gas pedal. He's just gently tapping to make sure the economy does a slow down too much and that works for the backs. Yes I love a market. That's led by the Finnish. That's a sign of health. If you only remember one thing tonight show remember the banks rallied. That's extremely positive I think it should carry us through the rest of the week. When we you probably start the guessing game all over again about the recession whatever because pals not on knitted there are other members that Federal Mark Committee and seven of them have said that they don't want any more cuts or no Mike the Cutter. Whatever tell us what they're really saying. Still Pal has a say and he all he needed to everyone's flexible. Things get bad in the end are are sober. Fed chief isn't taking anyone's Bait. He didn't apologize. He didn't belittle the president. He came out and did about what you'd expect them to do. Maybe maybe palce you get an acting coach at least a little change so we can learn to smile and intone even periodically. I laugh me laugh. You know but if you're waiting for him to do that don't hold your. Here's the bottom line. The Federal Reserve just gave US opera quarter point rate cut and Automaton like twenty five basis points slice a predictable to bit haircut. You're you're not gonNA get more than that from J pal unless something has gone seriously won't with the economy. Is that boring ten. No kidding but boy is chief. Janet Yellen was reporting report was wonderful and incredibly pal may just be even more boring than she was. Scott Scott in Florida Scott Kim. How're you doing well. I'm doing a little fist pump and honor the Fed. She puts a deal down here. Dodge agents them hurricanes dot com. What's going on a friend Ed Jim. I know about a twelve to fifteen percent of his position with slumber number J. in my Roth IRA fast two years. I'm fifty one years young down about forty five to fifty percent in the house of pain. I'm just curious in your opinion. Just hold on the other day chapelcross mistakes. We bought the company since nineteen eighty two and we just decide to take a little bit of a loss. I have a good yield new measures could but you know what I think. He stocks are dead in the water and nothing's going to change my mind anymore so I told you what it actually was plus dot com club did I told them to do. We sold some. Let's go to fill us in New York Phyllis again. It is such an honor on to be speaking to you. I can't tell you how excited I am or. You're gonNA stay a good advice that I've taken from you. Thank you him. My I largest holding is Wendy W. E. N. and I've been doing so well with it. Every time I have some extra cash. Gosh I just put it into more. Wendy Stocker I call it my stock savings account and I was really thrilled when when a short time ago on CNBC they spoke of a survey that was taken to find the best fast food uh-huh restaurants serving chicken okay chicken and I was so excited I almost jump through the TV they recorded. Wendy is number number one but I wasn't surprised I'm also a customer there. Okay well. Let me tell you I think Wendy's is great stock with terrific management. I want you to hold onto it. Don't get too who don't put all of your assets in that but they're really great and my wife likes the Double Cheese Bacon ear and you've got to work out for nine hours after you had that and take five Katori with it. It's really a great thing Johnny Mississippi John. Hey good evening Jim Dow chemical. I'm wondering what's going on today over when they look at one eight. The numbers are always perpetually too high with. Dow Chemical and it's got a Lincoln Lincoln to oil. That's not so great. Jim Federally doing a good job but I gotta tell you. That's a tough road to hoe. Dow Chemical POWs taken the bank bake. People called predictable one boring even with that's what he wants to be a man tonight why competition is everything when it comes to adobe and Fedex then and I talked to seal coat out the latest lineup can so seeds for prophets and if you're looking at a real pulse on the overall help the tech market there are few copies that are as good as tech data to do it so I'm talking to see. I want you to stick with Kramer. Don't miss a second of money follow at Jim Cramer on twitter APPA question tweet Gramer Hashtag big mad tweets send Jim Email to mad money at CNBC DOT COM or give us a call at one eight hundred seven four three CNBC. There's something Ed Tha mad money dot. CNBC DOT COM I'm David favorite join me CROC into me and Jim Cramer for the opening bell our of CNBC squawk on the street the podcast subscribe for free wherever you listen and you can always catch us live weekdays days at nine. Am Eastern CNBC I eh do. We need to start worrying about the e commerce space last night. We had not one but two calls that made you feel like maybe it's getting too tough to beat in this business that is getting too much competition least in terms of predicting with this. ICAL I mean I'm talking about fed ex and adobe wow now if you listen to both conference calls after their quarters you know it's Dixie unfair for me to lump dopey and with Fedex. They'll be deliberated generally solid quarter we had Ryan on the CEO. They just made some missteps in their customer experience management business especially the parts of the business. They got when they acquired marquette last year plus. The bookings were little light consulting services. This is disappointed sure the headline numbers were strong but there were some areas of weakness that prevented the company from raising its forecast instead they trimmed it ever so slightly while adobe at least arguably the cheapest of the big cap clouds place stock sells for nearly twenty nine times earnings assessments and it's not like it's an incredible bargain. If management can't address these booking the problems analysts being on November fourth. I think the price hearings quotable might be hard to maintain hence while the stock tip five bucks. It was a lot more at one point so adobe is basically a healthy company copied stumbled on a couple of line items. I think you buy the stock into weakness ahead of that conference on the other hand. This was out total meltdown from start to finish stock fell twenty two bucks or twelve point nine percent sheesh why the in parts because this company can't predict what will happen to worldwide commerce see as we got no clarity whatsoever and the trade with China which is a big big place for Fedex business that CEO the Super Smart Fred Smith was openly bemoaning how tariffs are slowing down the whole global economy and we're next thank heavens. Vince JAS listening J. Pouch not not Jay Leno not usually confused. Look I support the trailer. We need to crack down China's unfair practices but there's a cost to that in Smith's not not wrong when he points out that for example Germany sweet because China's weak and member fed ex is in all these areas. Is it truly international triumphant company that I'm proud. OUGHTA that said Fedex in Puerto Rico shortfall slash guy was for good measure and the analysts believe that there is more to do with execution than Smith to admit there was open rebellion on this cops Bob School type of criticism you only hear when they feel that they've been completely hosed by management's poor forecasting and Deafen suboptimal execution and that's why the stock was pummeled my view. I WANNA be more forgiving than ex is in an impossible position of chief competitors. UPS DHL the Postal Smith Amazon constantly innovating tough guys fed ex is trying to fight all four award them on every front porch plus. The company dropped the last bit of its Amazon business which is surprising profitable for now but at a big cost down the road given what Amazon's his aunt asking for well. This is only piece of the Pie for Fedex only one point three percent on a copy so revenue in the near term. Smith says it means his earnings will take meaningful hit not come as a shock. I thought that was not so great. When you combine the Amazon surprise the amount of money fed ex is shelling out for capital expenditures the higher labor costs experience country and the company's overall inability building a fully integrated some European business and be able to predict anything you could understand why the analysts were furious but I kind of different takeaway. I mean everyone's got that consensus view. I'm taking something different. I think what's happened is the competition for e-commerce no matter where it is whether it be software whether whether it be freight freight has gotten very intense ultra intense whether it's jobs digital marketing software versus say salesforce or Fedex shipping versus. UPS for example is as Heather Blaney. WHO's an excellent analyst Goldman. Sachs wondered on the adobe call. Maybe there's just some competition to the Marquette. Oh into the business causing problems in her shoes. I probably wouldn't have been diplomatic matic and just as a salesforce gunning for sure seems like that case and if you're running a business the last thing you want to serious competition now I think Fedex may at the same problems problems the rivals may be Cherry picking the good parcels and leaving fed ex deliver on the lots that are less profitable at the same time the global economy slowing down when it was ramping up to when fantasy ramping up to meet worldwide ECOMMERCE demand. That's now no longer materializing because of the softness of the world's economies both business to business and consumers consumers are issues for fedex the former because of a slowdown the industrial economy the latter because it's just too darn expensive to get it right but with Fedex into a beginning hammered today I wanna be a little gentle bathroom misses all the other jackals the photos not in themselves in this case. It's in their stars specifically the competition in ever-evolving e-commerce commerce world. It makes it incredibly difficult to forecast how well you're going to do. It's this competition. It fell both exit adobe at the same time while the one obviously receive fell a lot harder than other monies back. you think my combine sexy. We're talk agriculture equipment ever you need to know with Martin recent. CEO of Aiko Stay tuned brought to you by fidelity where decisions are clear and costs are lower than ever learn more about our industry leading value and open an account today at fidelity dot com slash is trading brokerage services. LLC MEMBER NYSE SIPC the trade war may have farmers feeling uncertain but consumers consumers need agriculture as much as investors need returns. Is this DACA fertile way for home gamers to invest in the American heartland Even though the president for the moment has been de escalating the trae were rhetoric. We've got a new round of talks coming later this week. We also know that it could flare up again. At any moment I keep telling you that the United States is in much better shape than China especially with the feds quarter point rate cut today but there are still some sectors that tend to be caught in the crossfire and you know which one really is just front and center center agriculture. That's why I stopped like deer substantially lagged yes some five hundred year to date but some of the players have been able to defy this gravitational pull like Waco the big maker for me equipment with the Stockton something within thirty five percent for the year. How do they do it. ATCO smaller Spore Nimble and most important as a lot less last year s exposure twenty percents sales versus deer more than fifty percents yet. This company is thriving in a challenge global environment and we want to know why so we have invited Martin recent Haagen. He's the chairman and CEO of ATCO corporal to come on over and this time he's decided to show not just hell L. bring along some fabulous new hardware. Look at that calm by Mr region have money good to see our you. Thank you very much Tokay now Martin when he did with weather you control everyone. I do control I do have that. magical powers now look behind me is something that is really what people are thinking now. They're not really thinking about us so please before we even get started. What the heck is this thing. This is a combine harvester and this basically is a cut little effectively on wheels. It's cutting its cleaning. It's flashing. It's doing all drop and at the end grab a pure corn the pugilist one in the industry no in stones nothing well okay so the reason why I this is emblematic is what I see that you've been doing is. You've been reinventing the company. Some of these animals have been saying you know what this is just a combination of brands. This is like no other machine yes we had the opportunity messy ferguson invented vented for self propelled combine years ago century ago and so we decided to do something completely new and to re invent the combined because we want to differentiate associate ourselves and that is how you can gain donkey shelter in difficult markets like the US. How much does this cost about eight hundred fifty thousand. Ah That's all if you bought it now. You have a deal for eight hundred. I don't know man and then neighbors here. That's actually not that expensive. The reason I say that is because if it's a technological the marvel how many Rashid's does this replace it place. Maybe I would say something like for conventional conventional smaller one. That's incredible label now. Tell me about how things are doing because you've got a great European presence. Latin America's been going well. You're diversity really does explain how some of these economies there are others. I think this is the advantage and that despite purpose that he always wanted to be globally diverse and so that means one market is doing better than the others I and in history be figured out that always was the case so you'll love is doing slightly better. South America might come back now the US is suffering. I forgot a little bit. We are pretty much on schedule in the US. We have fine so we will make our guidance you do have some Special Asia Pacific House that I took well actually be lost our our we we basically did built tax us more to the US we had to change that they come now from south South America and that detailed us a little bit so we lost quite some volume in the factory but be we think we can replace place that pseudo my domestic transition example. You've been in genius. Make so that you still beat your quarters. Even though you have tower Yata tariff my idea boss. Let's say we've all all the unrest and the kind of this influence you get from all over the world. my idea was to be independent and to fix things we can do on our own and to improve things so we are pretty much on a we are very focused on margin improvements and so that works very about so far now. We had a speaker Pelosi on last night. Farmers in each country are cherished. Why is it that there's ever any cyclicality. Can't can't governments subsidize the farmers if they run into a problem in a trade war. I think subsidies in general go down the American farmers AH getting some more subsidies than usual. Normally they'll only do have cop into. We have a great secretary of agriculture our former governor governor of Georgia who knows us we are in Atlanta and he does the right things. Maybe the best guy in the all administration he he knows that let's say Tate's barrier. Santana are not perfect business like speed and so he's very very supportive because the American farm has lost most of their corn beans pick and chicken business in China. That's credible smart. I'm almost US too that the president didn't know that so well the meaning wasn't that for that they would like this okay. I think it was a surprise. Maybe maybe not I don't know oh I think it really escalated everything. I didn't think that they would just go right after I mean. That was incredible now the whole time that we've been talking in the years that we've been talking. You always have more faith. The annals always now now. The adults are coming in. They all way but you thought you in five years you went from from ninety. Three million shares seventy six million shares. You put the whole time and it turned out to be yeah I bought and of course also say I'm close to owning a million so all include. We'll let you tell them about at least yeah okay so let's let's let's just let's go gat and kind of lightning round flashing house. Russia doing last shot is okay so the problem with Russia is it has by far more potential than screen greenish showing right and people say what what what is gorgeous you can now own land privately so right means farmers can securitise investments so that's slightly better but it's still slow and it's difficult. We have a very good joint venture partner where so therefore we. I think we are glowing. step-by-step. Brazil Brazil is okay a lot of pressure in the marketplace still unsecurity the government and I'm not really confident about the new president so much while in general I think they support him Germany. Germany's doing pretty well of course the German women farmers are still also they think about Black said let's say now the the new trade agreement the Yudas with America Sioux County will now dot com chief chicken from Mexico and things like that so they'll base a little nervous so when you talk to a German farmer he would never tell you. I'm doing very well so they've all this mindset well the guy. I don't want to bury we this is a technological marvel it will probably I would take share and by the way these are not metal. No it looks like they're metal but the new composites that snap right back and we you and I will take the sign ninety five after we'll just take a spin we do that. I can tell you the great thing. This thing works fully automatic so that means. You don't have to be an expert anymore. It's user friendly and that's what we wanted to be high tech but not in a way that you need to be an engineer in order to to operate well then I'll company take it for spin. Maybe without even without Caleb the guy who knows how to use. I can do it myself. I believe me that's Martin recent Huggies Charon presidency on. I co a winner all the way back to the great. Thank you tomorrow kickoff. The trading day was squawk on the street from post nine at the NYSE. I Bet I I will agree with you. The regular have a costco front door big banks. I don't need a seven pounds thing catch-up Guinea twelve houses game and it all starts at nine. Am Eastern Jay. We take to arrive. Let's do it I love. I think you'll like this. Oh my goodness. She let us Garage Ullman Tonight Ten eastern. CNBC get yours breath when the pet gave us that beautiful quarter point rate cut earlier today they mentioned the business investment had weakened since their last meeting July. I told you this before a consumer economy is solid but our business economies moral. It's a mixed bag for awhile now. The bears have been salivating salivating over the idea of a possible corporate investment slowdown especially in tech spending which has been elevated for years. If you're an executive and you think we're headed for session maybe cut back on your technology budget tech your margins but here's the thing if the bears right and tech data one of the world's largest wholesale distributors of Technology Products and services report sister fabulous quarter three weeks ago. This company is getting supermarket technology certainly with high skills and their numbers were so incredible that the stock surgically sixteen percent single obsession flying from eighty one thousand five hundred and three. I wouldn't be surprised it's got more upside. Take it from me. Let's dig deeper with rich Hyun and riches the CEO of tech data got to find out more about as companies. Do Welcome back to money good to see you have a seat back. Let me how come in in the midst of all this sturm drag and people say probably have recession worldwide thinks doing badly every geography that you had reported better than expected. How's it possible well. I'll tell you we're we are privileged to have a very wide and broad portfolio from a couple of dimensions. I geographic AH diversity second is product portfolio that bridges from the PC ecosystem to the most sophisticated data centers and third. We have one hundred twenty five five thousand customers mostly concentrated towards sm be right so we find that to be a really good market right now now. The small business typically should be more worried we didn't they are but it seems like that. They're spending maybe because when I go your website do good prices yeah. Well you know anecdotally. We believe that sm be much stronger than large enterprises this point in time and we're taking advantage of that and again. It's the diversity of one hundred twenty five thousand and by the way in tech something is always hot rod so you know we have a flexible salesforce. That's able to move to where the demand is quite quickly and take advantage into that but I don't know about. Maybe everything's hot you call out. Software services networking hyper converged technology. PC security these the rule good house not bad no that's right so we were were again privileged to represent the best of the best in our portfolio so we have excellent vendor relationships and even within those big categories something is hot so the categories are large enough and the portfolios large enough to take advantage sometimes. I think that you're the only only one conviction you were in there. Buying Stop the whole time frighten you were buying Oh. We're very confident in our company where we're going so yes we like our future and we like what we see so our board authorized starting last October over three different authorizations about a half a billion dollars and we've actually actually acquired back two hundred and seventy five million at the close of our last quarter so we like our stock will you should and I think that what happens people should understand when you buy back stock as as aggressively as you have when you get good news you see what happens you get that spike now. You're doing a lot of things right. You're investing next generation investments strengthened end end to end portfolio transferred digital optimizing global footprint. How do these turning to higher earnings per share so jim. It's our point of view that digital transformation formation is the big market mover and it will go. We're in the second or third inning here. This is going to go for a decade and oh by the way when you when you when you back with five G. in the future it really is going to go to a new and different level so there's great opportunities there but we're very focused on cloud analytics. FEDEX IOT security and services and we believe that those are the growth areas for the future moving forward now. I won't be able to understand when you have all the one hundred thousand clients. It isn't like you. Can you're not best buy you. Don't go and look for something a chip you don't go and find a Western digital chip for the individual right. I want people to understand that this is much more high level absolutely so you know we are participate with our business partners in the most complex flex data center deployment so we go all the way from the ecosystem all the way up to the cloud hybrid cloud in all of the new technologies that within the data center talked about wild waves giving you have some representation while they chiefly. Europe I guess but it sounds like the listen when someone that's just way ears. Perk up and say okay. We're GONNA hear that this is the destruction of all capitalism but it's kind of treated like business as usual yeah so we represent while way in Europe and we're we focus on their mobility portfolio and if you go take a look at the the results in Europe always quite a participant in in the mobile cell phone space it seems like a- any logically while waste an enemy here but in Europe being you have wildly. They're actually taking share from Nokia and Ericsson. Europeans seem to be a little agnostic. About where were they buy something. It seems that way you know the demand remained strong for a mobility and total in Europe and that's a piece of it for sure. So what do you think we must be listening. You hear the downbeat stuff. I- of recession people worry you look at your workbook every day. It is almost any other company. You're just not seeing that or you know no average ship and bill about one hundred and fifty million dollars each working day and so again we moved to where the demand is and we are blessed to the have a very broad portfolio so we have the opportunity of really moving to where the demand is in the mark but one last question. How do you ship your stuff to your clients. They'll tell you where I'm going. You used what kind of shipping company so we use a variety of shipping companies and you know our our supply chain is very efficient. We'll even do a lot of jobs ships from our vendor to to our our business partner right to the users. Okay it's important because I listened to fed ex last night. I kind of wanted to slip my wrists. It was so downbeat but you make me feel like in. This is something I talk talked about on the show. They may be before you jump to. The conclusion of things are bad. You should look at Tech Day. Just do it because you have a very big panoply of everything we just keep focused on a ah our strategy and our execution and we see lots of good opportunities in the mark. I wish you were coaching the NFL bet with your teeth that's Ritz Ume. CEO Tech Data they did everything right and they believe in themselves and therefore they made a lot of my for shareholders may have bunnies backing it is a rocker is uh-huh rouser. Are you ready skiing light bill in your bill as ago and I am doing doing well. How about you so well. My question has doing fray death. down thirty percents rely week. It's been trading trials mostly. recommend hunting getting tighter out. What was the stock and trade desk ask. All I think trade desk is oversold. I mean remember. This is one of those stocks part of this whole cohort that people being given up on. I haven't given up there to stand. It is very ball. The let's go to Chuck in Arizona Chalk. Hey Reading Dr Kramer just as Good Luck Phoenix. How about the thunder lightning liking round today thunder. Oh Unit okay. I'm looking for your advice on holding dining. for the short term with a long term hand stats intense. I like the device. Let me there's some work on the stock. I like the device. That's not enough to be able to sound like the stock. Everyone should know that I need to go to sorry mispronounced this. Oj Show in Virginia Oh Chow which I just hear from Virginia Jim Clothing January metrics. What do you think about it by waiver. Larry Corp I. I don't think that this isn't going to happen. Due by next year this time it will be higher. A lot of people don't that kind of patients. I am urging that patients Larry Cole John Gee. Let's let's go to Tim in Virginia Cam. I Jim Timoteo Health Insurance incentivation. 's looks undervalued is H. I. Q. Uh-huh you buy the heck. Is that stuck doing down there five times earnings. When I see something five times earnings I have to make calls that is too cheap usually don't get that cheap unless unless something is not right so I took it I'll be how about we go to Ashwin in California Ass Win Jim. Thanks for taking my call. Thanks for all your is pretty. UH my. Atlantic Ocean was micron and you. I like my God I saw Goldman said but then a mute the commentary but I've liked it since the thirties and I want to see her to come back on this companies American Marble Innovation Jim in New York Jam Low Jim. How are you doing real. Well Jim Jim how are you. I'm good. Thanks very good. I I'm calling about Scott that I that I that I bought about ten dollars and made a little money on but sold half my position and snap when the recording was perfectly now you let the restaurant if they have another Gordon to Stockton going eighteen ninety take that last quarter got surprised by and my hat's off those guys as you come on. They probably despise me but I don't care forgiving Fella. I'm like Gandhi Kinda Jacket Ohio. We love your show. Jimmy Jagger helping I'm looking at evidence from top to my holding that you'll get company and I have always liked national fuel gas and I am going to endorse now. I think that's a great idea. I Ebisu you. You remember my pecking orders power than dominion and then con Ed but she's good stock. I like it. I was Kinda. Angela California Angelo Angelo Angelo lived through this Angelo. You Got Kramer Yeah my wife and I in our early eighties and in just about all of our savings for the past four five years invested into cuts went up at apple and here's here's the problem. That's that's unbelievably right and I liked those stocks so much but I also think that you got. Maybe I don't want to have all of your money riding on those two bursting downgraded costco tonight I think that will be ill advised but if you can make sure that you have enough cash for your knees. I'm fine with those two stocks that you like more diversification no so in that Kujat the lightning rounds is sponsored by D. Ameritrade. How do you know when to start circling back to a formerly red hot group. That's gotten very very cool and that's the question I keep asking myself about. The marijuana stocks Etre phenomenal Jim by candidates moved to legalize weed cannabis core pizza earlier this year and since then it's been kind of a let's say an unbearable house paint last year. The pawsox were judge bit based on their grand plans for the future but not the markets sober up investors are more focus in the cold hard numbers and even the highest quality marijuana names like close canopy because they've been hammered take quotas vertically integrated cannabis produced with medical marijuana licenses all over the world and rapidly growing recreational businesses places where it's legal thanks to one point eight billion dollars investment from altree. Qantas has a mess. We're just second with canopies which which means they're in a great position to take market share and the company's latest quarter was good as robust top and bottom line beep profit but at the end of the day this is still a super expensive stock. That's in the early stages of growth story which is why it keeps falling like the rest of the group down from twenty five in March to just under eleven today so let's take a closer look with Mike Orson. He's is the chairman president and CEO of chronic scoop. He had a better we'd on what lies ahead for the copies specifically the cannabis for his company of course buckle good to see you sir. How are you Abbasi's grave near. I on one give me a state of the state here because you've got the best brand name. This is the most recognizable been you've got a secular Tailwind Aylwin at the same time. There's vaping at the same time. There seems to be a lot too much hot. Money got in the stocks. Keep your over arching formula and then we get a sense of Weirdo. Don't sure so Kronos were were differentiated. We are category agnostic cannabinoid specific okay and while most companies really historically been focusing on supply we focus on innovation and the consumer and so when we think of supply chain we really look at partnering with experts other farmers to source ingredients but then we can make products like these that you really differentiate with the consumer so this is an asset light situation. You're not trying to grow as much as that's right we follow the same model it's made companies knees in consumer packaged goods industries successful and pharmaceuticals focusing really on. Ip and brands okay now. You also made a commitment to vaping. I Dunno vaping vaping was around for ages and then suddenly I think the jewel guys have made it so that they things become controversial. Where does he go with that. Well I think I think I think that there's certainly differences between the nicotine vaping space in the cannabis vaping space so we were looking at when we segment the consumer needs state. We're looking get specific occasions and we're looking at upcoming launch in Canada. We've been doing over the last few months really leveraging work for about six years. It's been done in Israel okay cronos device labs and actually focusing on safety quality what the ingredients are are brand will launch under. I two spinach which we've we've picked the name because we want to make sure it was. We're being very responsible and not attractive kids. Don't vape sales been affected in the last few weeks yes so Canada we actually have. We're waiting for the derivative product launch so we actually haven't been able to to start sales so give me A. You've got a terrific terrific guy. WHO's a consumer package. Good guys chief innovative ulcer. Is he behind no word Jones established brand but is he behind the strategy of making so that you're disrupting two hundred fifteen billion dollar package could business that he helps us with yeah with with innovation with Martin. Some great places fell onto lease Pillsbury is buried and one of the things he's been been great add launching products like Belva is focusing on functional benefits and when you look at really what the brand equity is built off of why People Wanna GonNa want to see these new brands. It's the functional benefits you can get from connivance and so having actual functional uses building that into the products that's ultimately going to differentiate how has just become the brand name than anybody. WHO's I'm not kidding. There's lots of different companies. This is an with Brandon the industry that's attractive to us because a lot of CD companies yes very few. CBD Brands and it just comes down to and where you're focusing in the value chain and one of the things that we loved was these aren't products and you try some. This is not what you're thinking of when you think of CBD people think how much hamper you growing or extracting it now so you're this is what people use instead of icy hot right now when I found that you because I am the spokesman for the American Migraine Foundation I have to tell you this is what you do. You have migrated. This is exactly what they tell you to do and there was nothing to do before that. I'm not kidding. This is what you do and there's thirty million people who will use this. Once people realize that it's the only thing that does work now we'll be asking why is this in my hand. The product no kidding would come. Spokesperson is the only thing that works. We all know it but we're all frayed fade to talk about about it even though it's no. THC There's no issue. It's legal but people are still afraid now. Let me ask you beck. America Merrill Lynch talked talked about this acquisition and said that you had a U. N. Another director had an interest in a company called Gotham Green partners which had an interest in Redwood Holdings now. That's a an even deal for kronos versus this company. If you have a stake in it sure is a Gotham Greens. it's now the largest candidates venture fund. It's a fun that one of the other directors and I- Jason Adler started and we disclose we went through the you know everything by the book so we actually created a independent a special committee of directors who led the negotiations diligence and made the decision so they don't because I know you gave you gave cash. I would've taken stock in Cro. There's there's some give and we're we're pretty focused on on dilution. You know we especially with levels we look we wanted enough that we can incentivize foul and amazing team right and we want them to be in the same vested position but one of the advantages we have is that our currency is primarily cash and being able to use that currency speaking of cash house. How are they happy then good advisers because they've been through every single. I mean you know you talk about this being controversial. It's not what they do is. Are they helpful. Oh they're extremely hell yeah. That's worry we're young company. That's focused on innovation right focused on brands and what we're trying to do is take a industry with a regulated crop certainly controversial and turn that into a global industry and when we met with ultra what we saw just the company that for over one hundred years also taking a regulated drop and they become manufacturing distribution and brand powerhouse and being able to take our inputs. Rip and plug that into that machine is is really excited well. We're going to graduate as I get my stuff off. You've done a terrific job and I know that the whole industry is hurting but that doesn't mean that there won't be a comeback someday and what will lead it our brands and you to have the best. Thank you recording. Thank you so much chairman. President CEO of Cronos book every one of these stocks down. I know a lot of you are upset it down but you know these respective stocks. That's what you get when you speculate monies back to the the Dow is down two hundred or went on twitter said let 'em Pant let himself you. GotTa do some buying and you know what what can I say once again. The trains are just wrong. They are not considered. They don't think they they just act you be the opposite into the opposite but always palms are fine. Just few right your money. I'm criminals seat you to morrow. ooh Father Daughter both brilliant attorneys. Can they put aside their differences to fight for justice. You could change the work. Jimmy Smits and Caitlyn McGee star in Bluff City Law premiering Monday September twenty third on N._B._C.