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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 2/26/24
electricity a big idea that's inspired countless new ones from powering the light bulb to virtually powering our entire lives 30 years ago State Street launched the spider S&P 500 ETF spy a big idea that inspired the world to invest differently and still does what can you do with spy before investing consider the funds investment objectives risks charges and expenses visit scea.com for a prospectus containing this another information really carefully before investing spies subject to risks similar to those of stocks all ETFs are subject to risk including possible loss of principal loves distributing distribute support for this program is provided by chevron demand for energy is projected to continue rising in the future to help keep up chevron is increasing their u.s. oil and gas production and they're innovating to help do it responsibly across their operations including their Gulf of Mexico facilities which are some of the world's lowest carbon intensity operations helping supply energy that's affordable reliable and ever cleaner that's energy in progress learn more at chevron.com/meetingdemand my mission is simple to make you money I'm here to level the playing field for all investors there's always a more market summer and I promise to help you find it man money starts now hey I'm Kramer welcome to make money welcome to creamerica I'm gonna make friends I'm just trying to make a little money my job not just entertain but to educate you so call me one hundred seven four three c_b_c_ or tweet me at Jim Kramer listen up there is no next in video I mean that's very clear this week in our c_b_c_ investing club annual meeting it can actually a running joke because everybody wants to next in video now the original videos made this stunning multi-year move people say and videos made it Jim I want something new that'll rally the same way now days like today with a doubt dip 62 points that's being climb point three percent nasa gens down point one three percent we realize how hard it is to find another company they can produce such unbelievable revenue growth I'd argue in videos the greatest demand story ever told our official intelligence can be the game changer for everything that is digital everything we know that potential represents trillions of dollars not in demand not not billion not but trillions tea no other company is total adjustable mark that size to itself and while there are still some companies with larger market capels ages naming Microsoft and Apple I could see a video suppressing even them in the not too distant future that's not crazy people of course the whole thing seen does seem totally insane why here's why okay let me say remember I quoted the new of a restock it was only worth 95 billion five years ago now it's worth almost two trillion in fact the stocks up one thousand eight hundred seventy five percent since we first visit CEO Jensen Wong and his headquarters but when you create something great enough you can justify that kind of move Apple makes best phones the world doesn't it's now worth 2.8 trillion but that's easy to swallow because it was worth 822 billion five years ago Microsoft has the virtual monopoly on important slice of enterprise and consumer software which is why it's worth 3 trillion now I bet it was worth 862 billion five years ago so it did give you a terrific move but not anything like what happens you're with a video let me put it like this who could potentially join the trillion dollar class along with Microsoft Apple Nvidia Amazon the much-trashed alphabet and the much now beloved meta if we accept it in videos a freak of nature then we want to look underneath the one trillion dollars can't for candidates right me maybe there's something in there brewing in the 700 600 billion thing well sure enough number one is Berkshire Hathaway run by Warren Buffett who just said though that the days of the iPod returns are over that's an 885 billion dollar market yet Berkshire has more than 160 billion in cash so there's a lot of good Bob Buffett's way to discipline just to start buying things up here Buffett allies how much he loves two corporations Mark Spess and Coca-Cola and makes it terrific of like co-host but okay but buys back a ton of stock and continues to raise his dividend which is what Buffett wants makes him a larger shareholder the institution still they aren't going to get him to jump over the trillion dollar wall maybe you can engineer turn in the forces of Burlington Northern the largest railroad in America Berkshire portfolio company but the numbers here were quite disappointing versus the others in the sector if anything anything can get this one over the trillion dollar mark you know what it's going to be it ought to be the continuum shocking rise in the cost of your auto insurance that's right in the end of the day it was all about Geico it is changing Geico is the most important swing bill here even as Berkshire owes a huge position Apple that was responsible for a lot of gains but then again Geico is the most valued because it offers a great service for less money who will be next up well come on Eli Lillie right I mean it's 733 billion it's got a serious chance of passing a trillion dollars as the GOP one weight loss drugs become more widely accepted what will that take the insurers coming to recognize that these drugs are being used responsibly to come back diabetes and obesity a lot of comorbidities there but also soon hypertension COPD value liver disease perhaps for many of the conditions we don't even know now there is though a real disconnect to what these drugs do and what people think they do they make your real power dramatically stronger by making lots of food so it's tasty they make it harder to eat it only I'm sorry they don't make it harder to eat that's not what they do they just take away the incentive to binge one junk food and alcohol now Lillie has an Alzheimer's treatment that's probably about to be approved I'd say even almost any day now by the FDA I think the stock sells off though in the news because so widely anticipate look I just told you right I mean like if I come in if it's approved and I can't believe it's proved you'll remember that on Monday I said it's gonna be approved right I told investor come members this weekend it's probably gonna sell off on the news I believe when the worldwide data for the GOP's guys once comes in though really will be propelled to the trading dollar level the first drug company to do so hence why we own it for the travel trust Tesla's thirty six hundred thirty five billion dollars and it does feel like some big portfolio manager right now right here has decided to make a stand not letting it go any lower I know that sounds strange but that almost conspiratorial right but that is how Tesla trades there could be a Kathie Wood imitator out there buying Tesla not letting it come down not caring if they get it cheaper tour de force arrogant buyer who's ever buying it can't take it back to a trillion though they just can't that's a Humpty Dumpty there there's too many points between here and there but when Tesla unleashes this new models nationwide think of jump a couple I mean maybe ten couple ten billions fourth could broad cop simple ABGO it's six hundred thirteen billion be the next one now I feel this travel trust name could go higher because of its CEO hot tan who's a master of making acquisitions I know it sounds good but this is a man who wants accumulate companies then milk them in order to fund the next big acquisition sell a division off or another division and that pretty much how it gets there now my fears that this partner of NVIDIA could never be more than that if that's the case NVIDIA might need to crack the five trillion before mark before brook on process the trillion dollar threshold see we need pin action for today how about visa all right five hundred eighty six billion this is a tough one because it's the original fintech in the market loves visa but it's wrong with my record makes the problematic let's both go over a trillion dollar market I can hit that I don't think I can happen that's it both stocks are fantastic because the credit card business is a slap happy ali goblin next up JPMorgan's crashed through the 500 billion dollar barrier of late it's terrific statement that a bank could make it this high but it's been gradually grinding its way higher over time I don't think it can make it to the trademark anytime soon because while banks are money makers they are slow to demonstrate let me give you three more that are in the 400 billion dollar club United Health MasterCard and Exxon mobile I think there's a visa ceiling for mastercard like I just mentioned Exxon's forerunner standard oil had a one-time a hundred percent market share in the oil business yet the only the only oil in many places in this country was standard oil that's not that again you know the health I think it has a shop and needs to deal with a cyber threat first I mean this thing's oddly raging still here's the bottom line there is no next in video it's what we call a law school sui generous and you might not see another story this strong for a generation but these are there are other companies that I just outlined that can break through the trillion dollar barrier and while they're not as exciting as in video a few of them come pretty darn close especially Eli little Gary in West Virginia Gary oh yeah Jim bring out in first time I like to help with its little guys I know a little mini should I add some here your thoughts I like AMD very very much you know we own invaded for the child trust and broken we sit there and think how many of these can be really own I think AMD you could buy some here and forget so 150 you buy some more that's my take I need to go to Jag in New Jersey Jag hi Jim how are you I'm doing well Jack how about you good good thank you thanks for taking my call it all you educate and how the community with your wisdom of investing thank you thank you we love you thanks a lot thank you it feels good I like very back I loved all the people at the conference it was great yeah my question is about MPV so some of your advice for considering buying a stock to invest in this sorry my some of your advice for considering buying a stock invest in is when there is heavy inside a bike correct what is that a lot with NYC be given the back I don't I have financials don't count because a lot of these guys don't even seem to know their own backs so I'm gonna take a pass on that one they just buy it because like they think it's gonna work what do they know I mean they obviously don't know or they never already got in trouble again with let's go to George that's what my mom would have said let's go to she knew let's go to George and Pennsylvania George Jim Kramer George George George from Valley Forge PA holy yeah let's go to the it's kind of king impression more for the show fine thanks for taking my call sure March man this is coming up is draft King DK and G a buy sell or hold we got the trip Kings come down so after they announced that whatever they did with the NFL the final handle I know that I could report to May and then we can look again I feel like the stock is up on such a big spike I want to be a little more cautious now we're gonna go to Steve also in Pennsylvania Steve hi Jim longtime listener first-time caller fantastic a Michael I'm Greg Nicole I'd like to know about Boeing in the next twelve to twenty four months what your feelings are on there I think they it Boeing would like to know about Boeing next 12 24 months and that's part of the problem this cut this company is uniquely not in charge of its own destination and I'm beginning to get current's concerned as I said the other day if the FAA just comes out it's okay look let's just have a let's just clean house then I think you'd see the stock up substantial right we might not see a move as strong as in videos for a generation and even the next crop of companies that could break through the trillion dollar banner isn't as exciting as say in video there are a few that are close especially L Y E line lily man money tonight the COVID era was big boom time for the pet steam but now that's starting to fade what should we do with a company like Alonco I'm talking a couple stop brass then you quote and you stuck me on intuitive machines and as I was doing my homework on the stop well wouldn't you know it a company land or an unmanned cargo leg later and then it kind of did this and you see it was like that's my that's intuitive machines I it's okay it's like it's the flood look I don't have a dirty tile the Monolian Daventy cheap Scott but that was a pretty good come on that was a pretty good imitation of the intuitive stock didn't rock and hire before plumbing today it was like this member didn't go all the way down cuz like fell on some you know and it's still the solar coming on it yeah I call that a success give me the tang all right what they actually do with the volatility that's talked up I'm gonna talk about it and investors are still concerned about the state of the commercial real estate market I'm getting a sense of Huntington Bank shares and what the CEO is saying so I say stay with Kramer don't miss a second of mad money follow @chimcramer on X have a question tweet Kramer #mad mentions send Jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com support for this program is provided by chevron demand for energy is projected to continue rising in the future to help keep up chevron is increasing their u.s. oil and gas production and they're innovating to help do it responsibly across their operations including their Gulf of Mexico facilities which are some of the world's lowest carbon intensity operations helping supply energy that's affordable reliable and ever cleaner that's energy and progress learn more at chevron.com/meetingdemand as a person with a very deep voice I'm hired all the time for advertising campaigns but a deep voice doesn't sell B2B an advertising on the wrong platform doesn't sell B2B either that's why if you're a B2B marketer you should use linkedin ads linkedin has the targeting capabilities to help you reach the world's largest professional audience that's right over 70 million decision-makers all in one place all the big wigs then medium wigs also small weeks who are on the path to becoming big wigs okay that's enough about weeks linkedin ads allows you to focus on getting your B2B message to the right people so does that mean you should use ads on linkedin instead of hiring me the man with the deepest voice in the world yes yes it does get started today and see why linkedin is the place to be to be we'll even give you a $100 credit on your next campaign go to linkedin.com/results to claim your credit that's linkedin.com/results terms and conditions apply as a lanko animal health the veterinary medicine place spun off by Eli Lilly in 2018 finally found its footing for years the stock has struggled but in the last nine months it's more than doubled off its lows the sporty luck or poor it was kind of a mixed update a small revenue beat with the two cent earnings miss their larger farm animal division came went strong their pet business well that missed hmm management's four year forecast was basically in line with expectations but their guidance for the current quarter fell short so initially the stock opened down 6.5% in response but after the conference call it snapped back and nearly finished flat on the day ending down 11 cents so what on earth is going on here let's take away Jeff Simmons he's the presidency of a lanko animal health he had a better read on the court mr. Simmons welcome back to man money great to be here Jim thank you well Jeff it was a funny day because initially people are like me is it oh my god who did is this a setback but actually when the smoke cleared it showed that you're gonna you had second second quarter five percent growth you've done some great things by selling off Apple because you heard me say I needed to see some of that debt paid down and now you've had a couple of blockbusters they could really ignite earnings for several years to come yeah you just sit on all the key factors and I think the second half of 23 showed a lot of proof points is strategies working two quarters at five percent growth and really the story today is it lanko's back growing again and two two really good quality quarters in a row of revenue growth we're guiding for that growth to continue and actually to increase in 2024 before the blockbusters so it's all about growth innovation our existing innovation that has a couple those blockbusters in it actually doubled in 23 compared to 22 and yes those three blockbusters we talked about are still on a path for a first half 2024 approval and yes before the aqua business we're guiding and this was a good discussion today with a lot of investors our free cash flow conversion is a key company priority it's going to increase four times in 2024 compared to 2023 so what are the three key drivers to value any lanko growth we've got it innovation we've got it and more is coming and this whole free cash flow conversion with what we're doing inside the company and yes the aqua business will do it as well well I love that you're gonna be using some of that free cash conversion to buy to get salespeople so that you can go up against zoethas because I liked if your drugs get approved those drugs that they have are just right for the picking for a lanko could be really gigantic yeah we we've increased earlier in the year 20% more in our sales force in the US and I say this is a lead indicator of our confidence for what we see in this pipeline historic pipeline six potential blockbusters between now and 2025 we also today made another you know dis you know really disciplined decision to say we're gonna restructure our business a little bit more and what we're really gonna do here is we're gonna take about four percent of our population out and create more resource to invest for this future pet health blockbusters and how we gonna do that we're gonna we think pigs to pets in Europe we're gonna go to a B2B model on some of our farm animal business and we're gonna move to a distribution model in some countries like Argentina that are non-strategic freeing up on an annualized basis about 30 to 35 million dollars so hey tough decisions aqua adding sales force restructuring why just what you said Jim our confidence that we're coming into the next era of growth and innovation that we think is going to be historical for our company well look I know I got to focus in dermatology first this is inrelia to me I don't know exactly it's efficacy versus the drug that we give our drugs a little time that I work well but I mean that is a gigantic market I mean just I can how much of it do you think you can take well look I think the good news is the as you say the humanization of pets is happening the globalization of pets is happening and the globalization of dermatology is happening so and more innovation only creates that market to grow so I start by saying the market's gonna grow there's still a lot of unsatisfied pet owners as you as you highlight here and vets are saying they want more choices we've never seen a big market like this have as few choices as they do today all of those things line up nice it's a differentiated asset we're gonna follow it with a monoclonal antibody that will complement our Jack one that we're going to you know launch this year those two products and then you know we've announced we had some of the biggest next wave of innovation coming in from our D team that will really be coming in this second half of the decade a little bit very similar parallel to our parent company Lily as we're looking at you know bringing that forward so turns a great market we got differentiated assets and we're gonna be able to compete that is a great look at that is a great look at I know that when it was spun off I was always hoping to get some of that lily robed off on it's really happening now I've got to tell you know candidly this is me if I were running the company which I'm not you are I would not have downplayed I know I would I would upplay more about what you're doing with Experior and Bovier because I think that people are starting to get very wise that even though their mother nature cows are an environmental problem and you're addressing them yeah we're really excited about what we're calling livestock sustainability Lancho's been seven decades serving farmers all over the world it's where we started it is our history we grew this year and farm animal 4% international 4% in the US we took market share but what we're most excited inside the walls of Elanco and working with farmers is is livestock sustainability Bovier is one of these three blockbusters on a path for the first half of 2024 approval what it's gonna do is it's gonna create value just as you said Jim and we're doing it with Experior now we're gonna go into the US dairy market we're gonna allow a 30% reduction in methane and enteric methane it's gonna give farmers the ability to create carbon credits that they're gonna sell to a CPG company in dairy that what do they want they want to enhance their brand because this next generation wants more environmentally sustainable dairy products that's an inset market creating value and I say sustainability starts with profitability it starts with farmer profitability first this is gonna happen this year Jim and it's gonna open up I think the next one to two billion dollar animal health yeah no I think there's going to be a group of people who are I mean there's a big vegetarian vegan movement in the country I hope my kids are and a lot of it is a belief that we we're over cow so to speak and when they think that's really code for the cows are like natural natural gas they're just not good for the for the environment you're the first person that's seriously addressing this and I think you could change the dynamic of what people eat it's that important yeah this is personal to me to farmers all over America their innovators their environmentalists we say you know in the industry the cow can be the how and we really believe this methane is that short-lived gas carbon you're not gonna solve the problem the next decade with carbon you're gonna do it with methane farmers can do this and there's many farms that I've been on across this country and around the world that say we can be climate neutral in our lifetime and we know this next generation wants that they want to know that where their food comes from especially beef and dairy products is gonna be that and both there will be the biggest thing that's happened in the dairy industry and the beef industry and maybe two decades and it's gonna catalyze this movement well I got to say Jeff I was so glad you came on initially I was obviously worried because I said oh boy I hope that we're okay here but boy are we ever and I think that it's really this this is that well it's the third good quarter but it's the beginning of when people gonna say maybe this is the one I should be in and it's a tribute to you because you really had to work hard to make this company you'd be like what we're all hoping at the beginning and it's really there now Jeff Simmons president CEO of Alonco it's Jeff it's really good to have you on this is the right time thank you Chris thank you anybody back yet for the break coming up to the moon can lunar land you a starry return Kramer does homework next support for this program is provided by chevron demand for energy is projected to continue rising in the future to help keep up chevron is increasing their u.s. oil and gas production and they're innovating to help do it responsibly across their operations including their Gulf of Mexico facilities which are some of the world's lowest carbon intensity operations helping supply energy that's affordable reliable and ever cleaner that's energy in progress learn more at chevron.com/meetingdemand last points tonight Michael Massachusetts asked about a new space doc told him to the machines she called and I'm going to quote team effort with SpaceX and NASA and quote one that has a five-year NASA contract to put America back on the moon now sound exciting but I told Mike like I do some more homework I wasn't familiar with it I think I could take some time with the research but the very next night we learned that intuitive machines have put an unmanned cargo later on the moon and it was already transmitting data this is the first American spacecraft to get up there since 1972 and the first time any private companies pulled off a moon landing in response the stock just went nuts is charging up more than 15% the next day and and that's on top of some monster moves in the previous couple months then after the close Friday we learned that their lunar lander had tipped over and the stock plunged nearly 35% today going back down to six bucks and change see intuitive machines has always had a reject the sea volatile stock this is one of the hundreds of companies to come public via a SPAC merger in the past few years they combined with a special purpose acquisition vehicle in February of last year in these SPAC situations investors can choose to take shares in the new company or just get their ten dollar per share initial investment back and lately lots of people have gone with the ten bucks that can create a massive shortage of stock temporarily sending this share price into the stratosphere for example 200 machines went from ten dollars when it started trading through a hundred and thirty six dollars at this time last year for coming back to ten dollars let's say we're always seeing do it all time low of two dollars and it changed in the first couple days of the year in fact until a month ago it was too small to even mention on our show but while the stock was a roller coaster the underlying company was making some legitimate moves seeing two of machines is one of a few intrepid private companies that stepped up to form the backbone of America's new space program back under the Obama administration the US decided that if your years of rising costs the mission results from NASA we are going to start outsourcing the most famous winner here is Elon Musk's SpaceX but it's not the only winner intuitive machines once a piece of the pi-2 they're focused primarily on NASA's Artemis program which is all about exploring the moon in order to figure out how to spend people to Mars that's a long-term project and your term intuitive machines is going after what we call the commercial lunar payload services initiative which is exactly it sounds like these guys already had some NASA business when they came public via SPAC in fact they even had a positive gross margins at the time and were projecting positive free cash flow by next year but until it is big break came last spring when their joint venture with KBR won a five-year NASA contract worth as much as $719 million as part of that commercial lunar payload services program this is the deal Michael in Massachusetts was asking about and that's what they've been working on for the most of the past year and last week intuitive machines put the lander on the moon even if we later found out that it didn't quite stick the landing this was actually the second mission in the program the first one came from another private company last month that didn't even get close to the moon but that was technical difficulties now even if we hadn't been paying attention some other investors had noticed where it was going at that time by the time Michael Matthews is calling us about intuitive machines last Wednesday stock was already up 265 percent year date up nearly 350 percent for January 4th all time low of just over two bucks and after the news last Thursday evening of the successful moon launch the stock had jumped from even more 8 to 9 but like I mentioned before on Friday night we learned that while their lander reached the right spot on the moon it tipped on its side during the final landing process it really was kind of like this which ended up limiting its ability to transmit data if this new development the stock got obliterated six and change now despite the stocks being pulled back NASA mostly seems to get into this mission a success I watch the video they're really like kind of thrilled the bulk of the research payloads that intuitive lander was carrying are still functional its solar panels are keeping everything charged and while such has been engaged perfectly it can still transmit but man intuitive machines so it's not more than quite a quintuple in a matter of weeks ahead of the launch there's at least by 43% last Friday on the news before we give you up most of those gains then plummeting almost 35% today if we found out that the landing wasn't perfect well I like the story here you're signing up for what I would regardless one of the most volatile stocks the entire market sure I get the financials and tell you that into his revenues should grow by over 300% this year or they expect to lose money for the foreseeable future I can tell you that four bold analysts from small firms cover the stock and all of them have buy or equivalent ratings on it by my at the end of the day though this level of volatility and uncertainty makes it hard for me to recommend intuitive machines the other fact that the stock trades on the successes and setbacks of space travel which we all know is pretty tricky right we also don't know where these guys will get their financing if I running intuitive I would use this mostly successful mission as an opportunity to sell some stock and raise money with these hard-to-back deals there always seems to be additional shares coming out of nowhere which makes them so hard to value just in the past couple weeks a intuitive share count increased meaningfully when some warrants were exercised doesn't help by the way that the COO and CFO one person with two jobs left at the end of last year although that didn't seem to stop them from landing on the moon in short there's a lot of going on here making this an extremely high-risk proposition people but even if I can't go so far as to recommend intuitive machines I'll certainly be rooting for them it's exciting to have the US back on the moon this time via the power of private enterprise we actually got a new space race going on here Japan made its first moon morning last month China has this next lunar landing mission spilling for the spring so I'm glad that our outsourced space program is showing sides of life and you know what if you really want to participate in this story by picking up some shares of intuitive machines which will cost you about the same amount of say three mega millions or powerball tickets the analogy is not lost on you I hope well you know what I'm not gonna stop you but the bottom line if you want to buy something like intuitive machines keep in mind that you're engaged in what I call pure rank speculation so don't use any money you can afford a looters well it's too risky for me right now you know what I'm gonna keep it on my radar screen kind of cool stock it's got a fill in New York Phil hey Jim listen it's a pleasure to hear from you Jim I gotta tell you thank you so much for everything that you feel I got my 14 year old daughter that's watching your show and I can feel it she's ready eager so Jim I want to ask your question about you PS what are your thoughts on that is gonna buy okay UPS I I am a favor I happened to favor is FedEx and even that's not doing that well UPS has got a 4.4% yield and that is not a reason to own the stock although people keep saying it is I need to see some meaningful earnings momentum and I haven't seen it and that is disconcerting right look you want to take a stab at a name like intuitive machines just know that you're engaging in rank speculation please don't use any money that you could afford to lose but for my money I include my sister honey to Baxter's not rank speculation that shows a tough one for the regional banks of 2024 be a bit rose here for the court and including one that I think is the best I'm getting a sense of where we stand with the company CEO then I'm sick of the negativity people I'm revealing a few early morning stories I was watching paid a positive picture on what's going on the tape not the futures but the tape and of course all your calls mapping find tonight's system the lightning routes to stay with Kramer with 2023 in the rear view mirror I thought this would be good year for the regional bags then long-term interest rates started rising rather than many winners we got a few select winners and that's why the SME regional bank ETF is actually down nearly 10% this year those concerns haven't seen to face the Columbus Ohio based Huntington Bank shares parent of Huntington Bank which you know is one of my favorite regionals five weeks ago Huntington reported a solid court with healthy loan and deposit growth while management gave you a real robust four-year forecast stock jumped almost 4% response it's actually been flat since then because of worries that the Fed well who knows what they're gonna do lower lot lower soon when I think this remains one of the best operators in the group but don't take it from me let's take it with Steve Steiner he's the chairman presidency of Huntington Bank shares to learn more Mr Steiner welcome back to man money great to be with you Jim thank you okay so Stephen the absolute darkest moment last year when things look like the regionals were gonna roll over play dead who knew you came on you said look there's really not all regions are created equally some of them have really strong franchises and great balance sheets you know I don't think and usually people believed you they obviously believe it now is it the culture what made it so that you were not concerned about alfos because you actually had inflows during this period we did we do deposits every quarter Jim we have a fundamental belief in in having deep customer relationships and managing so that we were building those relationships with you the long term so as the Fed was pumping money in with quantitative easing we move that off balance sheet year for years and years so we didn't have the massive outflow we had the highest level of insured deposits the total deposits many bank 50 billion or larger so we were very confident of our outcomes and now you've got good loan growth good deposit growth this seems to be your time dude perhaps grow better than any other regional well we think so and we're poised to do that we made some investments last year we put three new specialty businesses in place and we also significantly expanded in the Carolinas both North and South Carolina so the core has performed well as we saw in those numbers last year and now we have an additional tailwind from these three new businesses plus a great group of new colleagues in the Carolinas which are very attractive markets so tell me how that works I mean the Carolinas obviously already have banks how are you able to take share coming in from from another state well we've been there for over a decade and we've been staffing up along the way building the business and we saw a moment in time where the from the dislocation of Silicon Valley that bankers were interested in moving forward investing growing the business we did not shrink our balance sheet we grew it as you pointed out we grew the loan portfolio we took care of our customers and we looked to continue to grow particularly as we moved into 24 and that's a very different posture than a number of banks in the industry when I read through all of your reports I found that very one thing I felt gratifying everyone tells me I should be petrified about commercial real estate you've described commercial real estate is not all one bucket and then even the bucket everyone's supposed to hate you think that actually can't sink any well certainly won't hurt Huntington back well for us it's 10% of our total loan portfolio we've got a a great reserve up a loan lost reserve against it one of the peer leading reserves and we've been very disciplined with an aggregate moderate to low risk appetite for 15 years within that commercial real estate portfolio it's very relationship oriented coming back to the nature of our business and so we're highly confident we will work with our customers we'll help them get through whatever the challenges they have if they have any and many won't have have particular challenges all right so Steve everyone keeps telling me that this is the time for banks to adopt AI now I totally understand AI from a regulatory point of view it's great to have your loan officers to be able to comply with the law very easy to AI or have sales people be able to speak and know that they're that what they're saying is it is the right thing to say but AI can't replace relationships that's right that's right now we've been using AI for seven or eight years selectively in different applications generative AI is changing that but fundamentally we're a people business and it's about people trust relationships and that's been the secret to our success that's far well now let let's talk about the new verticals that you mentioned now one of them one current health care services but Native American financial services now this is not necessarily something you're gonna make a lot of money and is this something you feel just important to do as an American well we we have just in the state of Michigan a half dozen tribes that we have we do some business with but we didn't feel we had the expertise in Colorado there's another set of tribes so we're we're already embracing Native American businesses but it's selective it's one off we think as we continue to grow and expand throughout the country that there's an opportunity here building off the base we have to do things better and become a better partner in that it just can't be a cash society that would be terrible let me ask you one last thing when we spoke last I was very excited about Intel and what they were doing with chips now the Intel subsequently delayed I does that delay the whole project or is so much going on that is that it's okay that until delays a little bit well there the most recent delay announced six weeks or so ago was in part tied to funding just not having come through it's back to the original schedule they had accelerated off the original so we feel very good about it we've got a team from central Ohio in Korea and Japan this week lining up suppliers who are going to come into to greater Columbus and so this is fabulous the construction the cranes the cement the rest the steel going up it's all there yeah we got to get there you know we're going to now the last thing I need to know is that you guys had the most thorough analysis of what happens under every scenario with the Fed but what I wasn't sure of is that it seemed to me that you might make the most money if the Fed just stands pat we do like that scenario and and that will that will work to our advantage but we've been in this point of view that the market was was was way off with six to seven cuts we were thinking two to three and so we positioned our derivative portfolio and our risk management overall for that sort of environment I think that's more likely than not if they don't change rates that's great for us as well well that's exactly what I want my bank to be doing well congratulations I love it when someone comes on and says something that is so not conventional wisdom and it goes his way because he's got relationships and because you know your darn bank and that's what people need to do that Steve that's Steve Steiner is chairman president CEO of Honeycomb Bankers Steve every time you come on I recognize that not all banks are created equal how about that I love that statement and we're with your advice Jim we're on the right track I know you are that's terrific man but he's back after the break thanks you coming up Kramer takes your calls and the sky is the limit it's a fast fire lightning round next it is time to come to the light round come back I'm going to say I'm going to play the moon minus up and then the lightning round is over are you ready Steve daddy down to the light round cameras welcome to start with how about Joe and Indiana Joe hi mr. Kramer first I'd like to thank you for all the help you've given me over the years I'd never be able to repay you sorry sir thank you I think the stock is down on an opportunity I pay a lot of people are saying the same thing as always there are too many of these places give me a break these guys are very smart operators I want you buy the stock now we're going to go to crag in Pennsylvania crag hey what's going on doing well it's not breaking out there I was talking about a stock I've found last year it's been up like 39% the past three months it's over a hundred and fifteen percent on a year and I wonder if I should pick up some more before they hurt before earnings on Wednesday it's the VFT Vista that is a parabolic booster I have got to study at the flag it ever recommended I have actually that is this for that is some move I got to do more work with that I've not seen anything like that in a long time let's go to at at canola and Maryland after all I'm here June thank you for picking my call today I've been here before you before you for over a decade and I am a dead kid I call member absolutely thank you for thank you for making us not to depend on day to day job you are a leader thank you so much thank you so much my question is about a soft way and I just there is company called on spot everybody loves this they call it the junior sales force okay to me I think Salesforce is the Salesforce and you don't need HubSpot now Salesforce reports this week I am not saying buy it ahead of the quarter I am saying that we have owners for a very long time for my travel trust but I don't need to go down the list the HubSpot when I got C R M let's go to Sam and Massachusetts Sam Jim Kramer I've learned a lot from you through the years thank you member through the years and one of the things I've learned when it takes the battle of stock and grind away and you're amazing your conviction level I love it and I've always inspired that about you and thank you particularly the stock and having a turnaround it's so so awesome and what I'm wondering is am I in the beginning stages of a long drawn-off battle with AMN healthcare yes you are you are I read some research this morning it just seems like it's just going to it is going to be real battle and there's so many non-battle stocks right now you not need to do a battle and I'm in some of the battle stocks and don't feel good so let's stay away and meet in Massachusetts to me hi Jeff it's been like a long time because I wanted to talk to you I am currently my chooses but I have been listening to you since I was a kid in the Himalayas so thank you for all of your advice I want to talk to you about like a stock which in the cyberspace do you think cloud flare is an AI play it's a high player Matthew Prince one of my absolute favorite stocks is just such a big narrative there you must hold on to cloud flare and if it gets hit you buy more I want to go to Matthew in Virginia Matthew I'm Mr. Kramer how are you I am good Matthew how you doing doing well just try to get some cool work done okay I had a question about Parvana Carvana has had a very very big move now I think Ernie Garcia is doing a terrific job but you got to wait for pullback a lot of it is short squeeze let's wait for to pull back on them again by and that legend conclusion of the lightning round the lightning round is sponsored by Charles Schwab coming up can pizza tell the secrets of this market Kramer takes the dough seriously but not just from Domino's when we return we don't give this market enough do every day when the futures look down at four and five in the morning something happens that's positive which then propels the average is higher once the session begins this morning for example we got a strong quarter from Domino's very good same source sales and a much better long-term growth forecast than anyone expected on top that to give you 25% dividend boost and an additional billion dollar buyback authorization which is pretty substantial for a sixteen billion dollar company now I'm not saying every company will deliver exceptional numbers and I'm not saying we'll get one of these positives that bales us out every single day I am saying that Domino's pizza is a household name one that's held the line against inflation with a bunch of irons of the fire and maybe we shouldn't be so surprised that they could give us such encouraging numbers stock jumps nearly six percent today because people didn't see it coming they were too negative if you gave Domino's Russell Wiener the benefit of the doubt well then guess what you'd have a nice win the Palo Alto network bouncing back one and seven percent today from my amount of losing over after the quarter at the annual investing club meeting this weekend which I had so much fun at we told people to buy the weakness in Palo Alto because at this point in quarter nothing to do with demand if anything there was too much of it the real problem came down to a necessary change the business model that will eventually make the company even richer than it was sure enough now Palo Alto's up big from its post quarter lows why well one reason might be because United health care is optimum business got hacked I bet they could use Palo Alto's full security speed which is what Nikesh were the CEOs offering I think would be wise to use just one vendor to it would end the so-called client fatigue that Nikesh spoke about on our show you could say this monster standard breach came out of no or I say these things happen pretty much well almost every day which is why a big reason you can't just write off Palo Alto networks down a hundred points in a day or how could we ignore the nearly four percent run in my crown which is stock that had been recently left for dead is not a great companion played in video it is my car hasn't had it still and who does maybe tomorrow zoom video right maybe they put a smile on our faces with its quarter tonight these moves are all signs that are emblematic not of a bubble but of companies doing much better than expect stocks are going up on rational experience they're not going up on your rational and they're not going up on the dreaded multiple expansion where people keep paying more for the same earnings remember everybody loves to point to invidious the best evidence of bubble but their numbers have grown to the point where the stock now sells for less than 27 times earnings next year's earnings I should say and that's only four turns higher than proctoring gamble 23 times earnings I mean come on it's a steal right is four times a little better I mean proctor versus invidia and I love proctor chocolate so I don't do it why does this keep happening because great companies can reinvent themselves on the fly I know that makes me sound like a true leader I don't care I'm never gonna stop pointing out to you because it happens constantly and no one else seems to want to talk about it because it's too polyannish Walmart reinvents itself with tremendous sales thanks to its nation advertising business and its rollback strategy Ralph Lauren tapestry show you their apparel can make money gap stores come on up with that one so it's one of the greatest turn routes in history we got to take over a bit from this for discover financial from better capital one a lack of housing helps give toll brothers an opening to sell one million dollar homes with ease not to mention great gross markets and the refiners how about them they keep adding to the earnings because of the decline in oil prices their main input costs these are all meaningful stories people and they all resonate it's not then you shouldn't be focused on the market so the next time you start to feel excessively negative about stocks remember every day there are companies doing great things out there for you you just need to know where to look for them I like says always more like a summer I promise everybody just for you right here man money I'm you hammer see you tomorrow last call starts now all opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC NBC Universal or their parent company or affiliates and may have been previously disseminated by Kramer on television radio internet or another medium you should not treat any opinion expressed by Jim Kramer as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his opinion Kramer's opinions are based upon information he considers reliable but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such to view the full mad money disclaimer please visit CNBC dot com forward slash mad money disclaimer what if millions of black Americans had been compensated for slavery join me tremendously as I explore the untold story of one of the only black Americans whoever was I talk to his descendants and discuss how reparations forever changed their family's trajectory and imagine a reality where reparations are paid to the rest of black America into America presents uncounted millions the power of reparations a black history month series new episodes drop Thursdays listen now wherever you get your podcasts