Mad Money w/ Jim Cramer 11/14/24
43:03 Share

My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a more work in summer, and I ponder to help you find IT.

The money starts now. Hey, i'm cramer. Welcome to money. Welcome to crame amErica with my friends. I'm just trying to make you my job is not just entertained, but they're put in the perspective, things like today.

So call me one hundred seven or three cbc tweet at your cover when it's loved in this market, it's really love. But when it's hated, I mean, just that's their namee ever since the election. So when are not so hot session with the w dip two hundred seven points as to be decline point six percent? And then as I said, point six four percent.

I want to take advantage of this breather to figure out which sectors are getting too much love and which ones are getting too much hate. Yet we go in full night of the hundred. There is love and hate nuckles tatoes.

If you don't know what i'm about, please go watch your names on prop. Let's start with love this market once you can enable with those enterprise software stocks that are so expensive sales for service. Now work day data dog at last year.

Now these are all have paramos moves a double digits this month, even if that they will pull back a little bit today. If you're selling software to big business, you can do no wrong in this market. But mad speaking is a big believer in sales words.

We are our for the travel trust per hour. I think this talks been on an unsustainable tair. I think he is to breathe the darn things going from two and forty three to three hundred and thirty one and that we're more than too much.

Again, I adore salesforce. I just wish to stop with digestive gains here because the kind of straight up broadly makes me nervous. I like stair step.

Today was a good start to now service. Service now a very good company that uses artificial intelligence to help improve the enterprise. Work flow, among many other things, serves down.

now. Cells were just under seventy five times earnings. I do think IT out the travel to us bullpen today at our cc investing club monthly meeting, which you can watch them to replay if you so desire. Don't think just went to paraboloid me again.

I think get last in civil team, which makes worker collaborations or kicked off this whole move at the beginning a month when reporter fin cac, but now IT ls seventy seven times and earnings, it's given me very a goal. Now enterprise soft does tend to not have much chinese exposure, which is a positive head in the trump second term. How much is that worth? Not clear.

At the same of investing club meeting, jeff, mark and I talked about which companies could be helped or heard by truck to point out enterprise sofa IT came out unscared. I think that should put a premium enterprise sofa stocks at this point. And now is that up? I say let them come down and then you can buy.

Second group is getting maybe too much love. This marketed is not for subscription products. I like these stocks to would take a book at costco, o netlist, spotify and amazon. They all have huge recurring revenue streams and membership dues, and their stocks are huge winners. All these are benefiting from endless positive research costs.

They just appear each morning as set by magic that says the most families and anus will come out and raises Price target based on the new ad model, which is going so well, then the stock is hard and then another winners will come out the next day and raised her Price target for the same reason. It's just won't stop always on the same piece of information that is not cricket spotify and say it's about a year, but I just get sixty points that reporting a quarter actually failed that matter as spotify is a scription company and descriptions were indeed strong. So we get a jack in the bean sock like situation.

We just go up and up and all very odd. And yes, too much love dog house. But where is saying today does not gotten boost day for report in good quarter with some probable growth in streaming properties.

No wonder IT stocks stored more than six dollars or six point two percent. I can't resist positive description data of any short. They do the best. Now we've had a bone market and back for most of the year, but they really caught fire for triple the election, both.

I think this move actually justified because bank regulars won't be as tough and unforgiving as the bind bunch and will have much more, many more mergers blessed by new crop of any trees. That we heard today that the federal trade commissions preparing to launch an investigation into anthropic practice at microsoft. Are you kidding me? Ma, on term as fdc chair ended in september, show lose her job at the moment the mom of the White house plastic and one truck takes the office.

We're going to have a very different kind of ftc. I feel bad for the trees. I have to be chopped down to make those microsoft breeze.

They could have helped by global warming, which, by the way, is a much more important issue with the changing of the guard of these agencies. And among the bank is the financial is worth more on trump. They, yet even this monster room, you know what stocks still team was far got to stock.

Take that to forty eight percent pertransisset ens, to fourteen times earnings. I have just a piece stock cells for twenty three times and they're not as good as walls. Even if you think the SMP4 matic ally overvalue， which I know some of you do, wells fargo stock is to absurdly cheap.

Jp moins had a similar move that IT posts a similarly low pressure is Molly. Even though I could have explosive earnings growth next year if the regulator to ease up, resulting more ipos and more merges, I think that's going to happen by me. There are the beautiful e restaurants with regional, the national growth stories like koba and sweet en, or they can do no wrong in this environment, right behind them, a dush brows and shake shack.

And when I throw in brick and texas roadhouse, these things keep boring, even as theyve already gone from undervalue to fully that I can't recommend them here on the pullback even though i'd like them all the way right now. The drug stocks, though they are despite beyond, I believe, just drop dead despite there seems to be no place with their safe. They are hidden.

We're hearing that robbery can junior big vaccine denier will get a the secretary of health human services, which is definite bad for big promo. Maybe that's why they are going down so hard, but these dogs have already been hit. I think that the hatred is almost Priced in, except for the stocks of companies that sadly make that s Robert of Candy junior has not been a big part of the vaccines to stay at Milly mark, with a great stable catcher.

Drugs now sells reject over ten times next tuesday, ny fazer, which picked up some potentially revolutionary cancer surprise from season, is not true at nine times, three, six point five percent. You've a although IT has the vaccines business and calls vaccines and I one of the greatest public health advances of time. Still anything good, anything good there I could fly.

But these options trading like berny centers, just one the election on a platform of socialized medicine. These doctors just way too hated, but nothing is hated as much as the semi doctors, skywards migrant corvo or this RAID. Same with NXP semi.

On semi it's been granted, even A M D is has been very heavy, only intel and video still running at intel because they already come down so much invidia because there's an instance level of demand for thi and chipps. I think the hatred consumers sense of these new AI power pcs haven't taken off in the cell one business instead awake now. The group tried the bottom today about a month ago, and after that, called asml.

The semester capital quit maker told people the future of bleak and load its forecast. Know what that did that put everyone of these stocks through the big rider, drag down the whole group. But today, I imagine meeting S I was actually opted open and didn't lower forecasts.

stop. Not news to twenty points. That was the good news.

But after the bell apply materials gave us a downside forecast. Same business and it's pluming in after market trading. High hairs, here's the bottom.

We have a lot of overly love stocks in this market or right now, but many of them deserve a lot, just not at these levels. As for the group, seems to be down into a bottoms pit. Call me interested.

But all I forget a couple of days when they stop thinking, and we have more clarity from personal electric p, who is going to take many socks to the wardship. We need to see the four of the abyss, unless, of course, we're bouncing already. And for the early loved.

Don't look for trump for support. He can surprise you with with hit what concerns him. Do not get too cocky. Do not get too smug.

IT will hurt you for some it's got a Richard and come on in your Richard Richard jam, how are you? I am good. Richard, how are you .

i'm calling today? good. Thank you. I'm calling today about a game changer deal. This company just announced G E help.

This copy develops its own A I as being built into every G E new mamma machine. G E said they just reinvented the max gram machine. With this, A I sales will start this december first.

And as an investor, i'm really excited about this. Is there any try to get the co of A A net on your show? Well, first.

what i'm not excited about IT. I know red net. I understand the deal.

What i'm excited about an exacerbation is the fact that they allowed g to sell the parent sell thon stock, thirty million chairs at eighty eight, the socks now at eighty two. I don't like that, and I don't think that deal moves the needle. I am sorry.

I don't know my trust. Sorry, i'm skin. But once again I find myself behind the apple with the company that I think is my friend, but i'm not sure. Bob and fat a bot.

James, this is back from provider, a farting number of the club.

Thank you. Like an excEllent.

Meeting.

good. I'm sorry. No.

in the financial.

Help me. Thank you. Thank you.

okay. In the financial sector, my port for you has golden sex. Well, fog in black rock would IT be a good idea to add bancal center there to the list.

I have been thinking and thinking and thinking about this when you watch to show, you know i'm doing that. I think it's an excEllent, excEllent idea and I apply you thank you for listen the call. I append everything very, very much like we're i'm going when IT comes to that great spanish back, it's going to precede .

in washington preside a jam washington your .

thoughts .

on intel CoOperation. I i've been buying the stock since it's since my twenties um between intel foundry business and any potential A I play what does .

okay I felt to when the stockholders percent that I was time to stop put in the hate on an until when I felt from fifty where I told people to and I don't going to go to twenty three, I said enough is enough. I can think of a reason why I can still go up, go up from here, but i'm done. Thing is going to go down least until something that happened again.

But I don't think you will. Let's go a cow in new jersey. Cow.

my best first. Jim .

crane. What's the world record? I don't know the answer.

I'm looking somebody to be IT. I want you to beat. I think that be fanta.

But is my girlfriend and my my future mother law on their way up to the eagle game right now?

I wish I had some sort of engagement. I wish I could be there because i've got my box in its empty. Go ahead.

But I might have to have them scale their tickets because Cliff and Cliff beat my teeth. And today, so what do you think of my 0K.

I think you can hold, have understand that the Price of steel continues to go down. We spoke to the the pink, to the sea of C, S. X.

It's still weak. And so therefore numbers may not be able to go up in. That is gone.

They won't turn till the numbers go hired, right? Look, the overly love stocks are just you you got him a breeze to have about that. And they are already hated stocks.

I think they may be too love, I say temporary or emotions don't get too cocky when IT comes to predicting anything right now, though, when IT comes to the present elect trump, all my money I shares us. So fire on the right again. Can the climb continue in this rate environment?

I've got the C. E. O to talk about earnings and a new partnership that insurance can be union sort to a new old time holiday.

I'm looking closer with driving this growth, that company stop press. And as I just mentioned, is rail stocks csx on the right track for the long term? I think it's very interesting. So let's check in with the CEO pressure office invest to stay with cream.

Cnbc has quick and easy to understand business news updates at the open midday and close every weekday markets, money and more from wall street to main street. I'm cnbc Jessica, adding a follow and listen to see abc business news updates wherever you get your podcasts.

A few months so far, technologies es has finally gotten and it's grew back in the seas. technologies. This digital bank was one of the hot stocks to around through the pandemic.

Then when the fed started tiding two, which shares were blitzed. Fact I was I was still trading and been single digits August. I'd defended all the way down because of my faith in the CEO and his business model.

And wait, my fellow sofa beevers have been rewarded as the stocks climbed from six box in early August. The thirteen dollars in change today, its highest level since early twenty twenty two. Now some of the things of the raus, which should help stimulate the a business, somebody comes down to early.

So I reported clean, beat, raise water laotse. So it's because they've made some major partnerships like a two billion argue with forces. You know, I love those guys to expand the lending platform.

Our up a black ck in other place. I love to create a robot visor platform. And after all this way, so can this thing keep rn english? The thing he is the CEO of sofia, my friend, show to find out about jim.

thank you for having. Thank you for all your support.

What's go over that? The reason I support you some of that is because I, knowing you're forever, always think that you're of the best i've ever met, but also because you had a and the vision was to become more of a service company, but that you were never doubt even that people said listening to loans must be bad, as you don't want to sell on all that nonsense.

Well, jm r goals to set out to help people achieve financial dependence. In order do that, we have to be a one stop shop for other financial services needs. And IT takes a while free to one of those businesses to grow or not a lender anymore.

In the most recent quarter, we reported forty nine percent of our revenue came from man lending. We go revenue overall thirty percent year year. And I was driven by financial services products and our technology platform, not lending, which was up over sixty percent year year.

Okay, so let's go over a lending. There were people who came in said, you know, gym, this could all be bad, and that's why he won't tell you. Stop and go going to do.

We have the question. We can do what we want. Who was write the bears of the balls?

Ultimately, we've delivered results seventeen consecutive quarters of record seventy quarter, seven of nine, nine quarters, a record revenue. We've had nine, nine quarters more than twenty percent year year growth. And we have continue to diversify the business at the the year, we felt we could actually grow the other businesses, not take on much risk and show that the loans could perform that they ve perform barely well. In fact, credit improved throughout the year.

Well, I think it's important point out that in the last few quarters, things you're just getting Better and Better. Lonely will see ninety day point five seven, seven point six four, a charge of point three point five two, down from three point eight four. These are major when IT comes to a delta of percentage.

Absolutely, those curves are not easy to bend. But we did IT through disciplined credit underwriting standards. We tighten the standards as rights went higher. We increased walk on the coupon ines and make sure we had the right risky ward on our loans. And that's why i've had such strong performance .

to talk to you about the portrait. I think they're very exacting. They don't get involved most. They think they look get the money back. They are a probably the rudest, I think, of the big private equity companies.

This concept of a long platform business where we get paid fees for original loans for other people that want to buy those loans. IT really started as an idea back in two thousand and nineteen at first when we declined to lan an applicant, we would send them to another partner that would underwrite that loan and we could paid a fee. We evolved that over time. Or now when someone applies that so far, we can either approve alone on behalf of somebody else using their credit model, or we could approve the loan and get paid a fee for that loan. Third party IT allows us to monetize things we wouldn't otherwise monos.

Okay to talk to me. People say, waited. What's going on? Student ones? What does IT the test? Student loans.

Maybe the night. I always say people, it's not like that. That's the old days and it's a piece of the puzzle, but it's not the puzzle. Is that a correct view?

IT is correct. The student loan refinancing business really got hurt during the pandemic when the student loan moratorium hit and then rates rose over time. That business is a small piece businesses actually doing quite well.

As special as rates come down, people will be able to refinance their federal student loans with a lower costs loans. They also could refinance their own personal student loans at a lower Price, just like they with their mortgage. So it's a compliment to the business. It's a very small piece.

okay. So let's talk about the black rock deal. We know that robot is no longer more on. Robot is real and can be in many times superior. I don't mean to denigrate the human race, but we know there's a lot of stuff that just repetitive. Well, this what will this platform mean for you with background?

This is an an important component or overall mission. We want to help people get their money right, and we want to be a one stop shop to do that within invest. We also want to be a one stop shop, but we want to give our members, our investors, access to asset classes.

They would not otherwise Normally get asset classes like ipos or alternative of investments that are typically reserved for high nett wealth individual. We're given the main street investor access ipos to alternative assets, which we launch the beginning the year. And this week, we launched robots with alternative assets. We reason had three robot accounts that really primarily invested in equities fixed in com and money market funds. And now we've introduced robo accounts with those assets plus upturn of assets with our partners and blackrock.

Now people must like these because looking at a new member editions page of seven and eighty six thousand and q 3 alone， bringing the total to nine point four million members plus thirty five percent year, where you getting all these people yet weird.

absolutely. Capturing market chair from the broader universe of checking the same accounts from other broker accounts are also enabling people to investor for the first time. So beginning investors and other investors, one of the reasons we launched fractional shirts would allowed someone to buy something they like like tesla or apple or NVIDIA for one dollar at a time instead of one shared at a time, which is typically for those companies, one hundred to two or three dollars per share.

What we had a today on our investment club, which you know about, and that was, why should I buy a blackrock two thousand dollars? This is the other way to buy a black rock.

You you could get access to a black rocks funds. You could also get access to black rock stock through fractional shares or these are etf or robo count.

Now we also to talk about, you had the issue some stock, but IT wasn't delude. People thought was deluded. There are animals who got IT wrong.

There are animals we're betting against you. The stock got hit. IT was part of a convert whereas that and you have to do any more of that kind of issues.

No, we're rena really good shape. We were able to capture some opportunity refinance at a point in time where the IT was attractive to investors attracted us. But we're well capitalize now and are three year plan that we laid out at the band of the year.

We're well on track to achieve that. And last quarter results was further evidence that will deliver on two thousand and twenty five and two thousand and twenty six. Boring any unforeseen circumstances.

But I can't leave how you leave without I ask you. I hate that it's veteran step. okay? My dad always said, why wasn't fish from Jerry sacrist love is a sorry that I always think of you in the army gratulations. So far for army, what are you doing for veterans? Because, you know, veterans in the issues more than yet.

we we are very focused on helping people from a mental standpoint. And mental health, an important cause that we have focused on that obviously pertains to veterans as well. We also employ veterans, and we have a inside.

So far, we have a group, which we call stripes as affinity group for veterans, obviously very near dear to my heart having served. But I think all those that are out there putting their lives in the line for democracy and were in a very uncertain time today. And three different fronts, we could face very chAllenging time. So our our message goes out to them. Thank you for your service and a defending our country.

Well, thank you so much for coming here and saying those things, say you even being, of course, of manager, where which I I of course never as you know, but there were planned people said, well, I don't know, jim, I do know. And what have we saw today and what we listen to you and what deals with with back with black rock and fortress, two of the best, all deserving for you. Thank you .

for sticking .

with jim. Thank you. Are just getting started for back. Get to the break. C.

N, B, C, has quick and easy to understand business news updates at the open midday and close every weekday. Markets, money and more from wall street to main street ICBC Jessica, follow and listen to see nbc business news updates wherever you get your podcasts.

When the pets start cutting short term interest rates in september, bon traders really took the other side of the trade long way sort member. The bomb markets is what sets longer terminate. That's quite a tRicky situation for many industries, but is fantastic for the insurance space.

These companies take your problems that investment and say, for fixed income asses like treasures. So higher bone yields mean they get a Better return, ensure that would ve got a real boost. Special election bond traders are betting that will see a lot of more government borrowing once trump cutt taxes.

So can insurance keep running? Consider the case of union group, which is a major provider. Workplace benefits take disability, life accident, critical illness, dental and vision insures they such have called sixty percent year day without head that can coming, this is the end of september could have more upside, let's think there with replicate is the president and see you more on your meeting here. You welcome to make money.

Thanks, James, to be in.

I'm so here. This has been uniform, one of the hot stocks around. And yet, if you look at IT, it's still incredibly cheap versus both the banks and the S.

N. P. Five hundred. Can you tell us the story of union, why IT is so inexpensive and why that's undeserving?

Let me talk a little bit about the company and what we do. And so you mention the products were in, but most importantly, where there to protect people, time of need. We're in the workplace.

And so we actually have the scale across across the country, forty five million customers, one hundred and seventy five thousand employers that we're taking care of. So the underpinnings of the company are really good. You talked about the dynamics when we bring those premiums from, which we're actually growing over time, investing them in.

paying them back and benefits you don't want to use for five commercial buildings.

No, we actually have, I would consider a pretty viole portfolio corporate credit, what we're invested in for the most part. And so when you think about that, we're in the business of making sure that we're gna be there to make those benefit payments coming off the premiums. So we don't want to invest in anything that's too esterton ic.

now I think the one thing that helped you back on a long time ago, I met with the managment, and my late father had this long term care, and he had paid very little for next. You know, he was having that someone live in across the fortune. He was always grateful that he took IT, but that was a bad policy. The right you used to have some exposure that but you pretty much ring thanks that I can keep your stock down anymore. I think that's right.

James. So these are policies that were written back in the nineties, early two thousands. And so over time, we worked through that. We stopped writing individual contracts in two thousand and nine, did not any more groups after two thousand and eleven. And so we've been able to work through that business. And last, you're importantly, we put a lot of capital behind IT to say we're not going to put more capital behind this business because we think there's an ample amount there today. So that is a reality and is a bit different.

IT was a back ten years ago. My if you have a inf, maybe be A A some private equity alias. You know what this thing is? I want to take this risk if theyve ready. Pretty much articulated IT, which should be fantastic for you.

Ah so actually a year ago, there was a transaction to space. We didn't do IT, but actually another party did IT, which saw those dynamics that you're talking about and something that we would like to do because relative to the rest of our business, we take care of people during their working lifetime. Long term care is a very different situation, so it's not strategic. We'd like to transfer that somebody else.

What do you think is the reason for this talks to have such a big rally after a president like trump on the election?

Well, I think when you look at us and what we're trying to do is, is that overall benefits are really important to our individuals. And we think about his financial security. So the people during at the workplace, the financial security they have, and that's something that's got a bipartisan appeal to IT.

So in terms of the increases we we've had today, I think there's a lot of dynamics about growth that we have. What we do is certainly very important. And then you also talked about the dynamic of a little bit higher interest rates as well. So all those come together and and I think we've seen some .

benefit from that. Do you have any exposure to to lawers suing?

We don't actually the door. We actually know certainly our policies, people will actually look at them, but we feel very good about the quality. We you know our businesses, about our purposes, about taking care people time.

We want to make sure. So we work very hard to get people back to work. Last year, three hundred thousand people, we were able to help get back to work. And so quality is really important.

Now when you say help to get back to work, you that meant that you tied them over. How do we put that what is .

yeah so for long term disability, importantly, when somebody becomes disabled, if you think about the top two because of that, I would be muscular, a number two cancer. When somebody has that event, they actually they're not thinking about going out on a disability clam. I think, how do I get back to work? How do I get back to my lifestyle? What we want to do is play a role and help them do that. And our benefit councillors are extremely good at giving somebody a plan to get back toward good for the employee, good for the employer and ultimately good for our society.

One question, one of your a principle, competence and spends a fortune. We see their ads. They have a in a that everyone knows like a dog, so to speak. And you quietly do your job. Why do you not want to have a name on a stadium or or have a camping?

We our b and I think you think about our business to it's important to us that a human resource director that the one is making a decision or a CFO knows, you know and they certainly do. And we're concerned to be the best in the business, and we want to keep that reputation. So it's important to us. We just have a brand that they know and they know they're going to take care .

of their employees. And I know nobody ever doubt that that you want the best business, and I had that long term care, but no one double that. What you do, you do incredibly well.

That's rc kickin. I present you a union group. U N M O K, fifty two week. Guys, let IT come in a little. You want to, but this is a very inexpensive stop me back to.

Right, the election in the rail and stock sd, although though there seems pulled back from their highs, thanks to some hot inflation numbers. Remember, the rails are text book circles in the big winner from the fed cuts rates. But if inflation reaches back, traders are bebe at the rate cuts.

I say tuna over. Think that nonsense right now. The fit is your friend and that's what matters. Everything else is just details. Take sea sex, the big east coast road that rolled out very bullish ed long term financial targets, said vester day last week. If they can get those numbers, this stock so much hard, what gives the company that cover? And we thought that johnes, the president CEO of cx.

look back to my money. thanks.

You put out some really bullish very, when I found a big stretch calls, what they should cover you going to get him.

you know, several points. One in social development that coming back to the united states in our network, especially in southeast amid west, we said we can gain one to two points of revenue just from industry development, five hundred projects on our network right now.

And then addition in the intermodal PPT unity, once truck rates come back a little bit, maybe detailed Prices come back over time, we think there's four to five million opportunities on their model. And then the investment we're making in our network, what we can do in places like balmore and that replaces. So we're really excited about the ability and and rates come down helps housing, autos, steal things that we move .

during the presentation, which was really failed, said everybody speaks at the top and I loved that you did talk about first industry went away. I mean, you really were very vocal about how it's just disappeared, but now it's coming back with a different kind of leadership and is still good for you.

IT is know when you think about over the course of decades, we removing manufacturing away from united states. Now we're bringing IT back. Maybe we will have more conversation about that even the next four years, but if it's in the united states, will move IT, especially with a manufacturing production.

You know, we've grown the last two years in merchandise volume. We had industrial productions been negative in united states for two years. So even though this economy has grown, industrial hasn't. So if we see that come back even more bullish far a business.

Look, if you take president like trump at his word, then the'd be more reassuring. And that every time a company has to react with terrace maybe as to build here, there's a good chance because you're never worked so fast.

IT may hit you. Try five hundred projects on our network as we speak right now, number thousand sites in our inventory's possibilities when people want to build big projects in the us, where do they go most time? Southeast or even to over the middle st. Or texas. But we're the dominant player in the southeast.

really helps us. Now, I can assume the open the stock, that's what I do. But I look at in north, southern, slow, expensive, me, you empiric expensive. You will have dramatically outperform your peers. And two thousand sixteen and twenty twenty three, i'll let you have before to tell me how you did that.

Well, I think we first fall, we rationalize the network and really cut cost to be confident I ent network. Then we took our Operating model and we started turning IT around and saying, you know what how do we leverage the strong Operating model to serve our customers Better? Were the only class one reward last two years grown merchandise volume.

That's because of our service levels that are people doing that. And we said, you know, let's change the culture that let's stop fighting for two hundred years with our employees. Let's bring them as part of the equation, help them become Better serving customers, help us grow the business.

That's a lesson that I wish others would not ignore, so to speak. You have good labor relations and you think they are important to the success of your enterprise. Why do you see IT that way in? So many of people want to fight .

the last for you at the most basic part, or a service business. The best service businesses have their employees. They're engaged and one, provide that service.

They're motivated. There are part of the organization. Let's start there where service business are employees, move the goods that we get paid for, you know.

And then how do we engage with them to help us provide Better service? Customer people don't come in at a restaurant or a railroad. And so I want to sort people poorly today, make them part of that solution. We serve customers Better. People will come back to rail that we have all kinds of advantages.

I wasn't really a topic of your day, but I think people want to know casual people, not the angles. How do you solve that boy or tragedy? How are you? I want to make IT so that everyone told me you be off line for months. That wasn't the case at all. First.

I got to a lot of credit to the army core of engineers. Everyone involved involved more. When the Frances skype brik y bridge came down, they got to work quickly in a two bunch of less to clear that port for us.

We went within two days, we set up in another model service with our employees from new york, new jersey to bolt more to get them containers back and forth. Within two days, we had people were willing to transfer to help make that happen if we need more employees away from bolt more in other places, again, tested to the culture, the people being part of the solution. If you ask them, engage with them.

they'll help you make that happen. You go. That's a nice lesson to learn.

I hope everybody hears that. Now, what if china, a trade drop swap? That doesn't mean trade drop. You're an east coast provider. Would there be more from from from european and mobile happen geographic? What do you think in about could happen for off ten point actually.

as long as is coming to the us, we're going to move IT somewhere if IT comes to the western importance. And that needs to go to the east because, two, the population are in our network, right? It'll come across and we'll get in chicago or meters or somewhere, and we will move IT over the comes to the east coast.

Actually a lot of time to get truck from the poor to a big city right here. So actually depend, but if it's made in america, we'll move IT on rail. So actually it's bullet for us to bring more stuff here. And if things if terrorists changed the trade portfolio, as long as the economies grow and will be a part of IT.

okay. Now we went over in a model that's doing great minerals and coal, still very big for you. And I don't look I understand calls got its cons in the region process because the that may not, but IT calls, still all you ve gotten called down, it's only going to impact you really probably just working in your .

favorite you know we think the next three years, coal vimes pretty flat, right? But that's a growth in export domestic utility down. That's good for our business because we we get more revenue from an export coal.

But my logical, coal, that is a bullsh market. Everyone we talk to india, eastern europe, a lot of the growth for cover, concrete production, steel production, whatever. So we think he's gonna a market for coal for quite some time. It's our second largest customer segment as I A model chemicals and then call is going to be around for a while.

But I am worried about meals. The Price of battles have come down. We're doing to work. After you suggested to me that perhaps I should be thinking about steel, I am actually kind of flat guests and how steel kind really that crush possible.

It's a it's our biggest city down this year. And you know some of that auto auto production, isn't that up as much as we expected? So that's part of IT and power is just the pricing. And know I talked to a lot of the steel CEO, they say it's special and the pricing down, but we needed IT to come back. But hopefully, if was our building more in america.

we can get more. And I think that with interest stand.

that will come back. I've been looking all the steel, both very Price sensitive and also IT is very sensitive. If if how thing in order can come up, see.

will come up with.

and how wog how they do y've been doing. Willy, well, the good movest harvest.

you move, you follow this up, you that right, we have to do all that know.

The fun thing about being the railroad is you touch all sectors of the economy and get to see IT, what's up, what's down, what's move, what's not.

I think IT pretty fun in the lost one. That is very, very biggest chemicals. Now I know that you guys Carry a lot of chemicals that are things that I don't want initially want to the track. How much is safety and campus?

How much matter? IT matters a lot. Ninety percent number of ninety eight percent of has met related chemical accidents happen in trucking, not in rail rails.

The safest way to move has as materials by far, and we move a lot of but it's our biggest customer segment. We're proud of the way we do IT. IT is important for safety, proud the industry y's performance there. We can always get Better, but it's a big customer of IT and growing this year. important?

That's true. It's absolutely growing this year. There are so many campus es that we we have the feed stock. This is cheapest, the world. So we should be taking adventure of the that that is john rich is the present CEO of csx. I can show you charts, which makes no sense to me, the charts of how well they're doing in business and how low the stocks is, which makes no sense. And you should listen to what you sense my money is back out to the break.

this. question. We play on, and then the lighting round is over. Are you ready again that the light N A drome inf a robe.

pig jam? Thank you. Taking my call.

of course.

my, thank you. You, my lovely White people, and I watch every show.

Thank you. Very good. Thank you.

So my wonderful grants and sixteen years old group single is also an avid investor.

We love that. We love that.

We all think that altria is undervalue. Altria is under value.

But I can't recommend IT because i'm not gonna commend tobaco stocks. I have a long history of night recommending them, because I just don't think I should recommend something that is so bad for you. Let's go to ten .

and I T jim, human southeast style. I want to thank you for staying on the air. I know you could do other things with your life.

I are very kind. And yes, don't tell my wife. So how can I help?

Back when super micro was a whole lot higher and accounting problems became apparent, you reminded us of a little sticky note, computers. That said, accounting problems means sell. Is that still the case? Now that is absolutely.

sir IT is still the case. I don't know how they can find an order. I don't know how they going to be able to fight the delisting a ny regularity equal until cleared up. And these guys have not cleared up anything. Let's got a way in a miss woman.

I dream. Thank you for taking my call.

of course. Thank you.

I'm calling about bowling with a massive pipeline as the only U. S. Commercial plane manufacturer and with the second recent secondary offering Price at one forty three. Do you think this is a good entry point to start a position?

This thing broke down so badly. There are only two of this cup is going to lose money for a long time. I prefer not to be in the stock that is going to lose a lot of money for long time. Let's go to gym, taxi, gym.

Hi jim. You're take an beckton dickinson, B. D. X.

This stock has broken down severely. And I don't want to be too involved where IT is in in the help chain because if a probable that canada junior is going to be the head of H H. S, that is going to hurt a lot of vaccines. IT could hear a lot of their business. Let's go to eric .

and taxes eri jam, by your first. And I listen to you on the way to socket and jim every day, and she's going to give you the name of aspect with her biotech. We want to get your opinion on.

I .

don't .

have I T Y A I D Y A O K. I idea, bio senses. Now I have to tell you your daughter's good horse sense if you likes to speculate.

But they have a lot of face one stuff. And face one is made early, too early for me to Better. Let's go to gerry in idaho. gerry?

Hello, jim. Thank you for taking my call. I have a large position in x gena.

In the last two months. It's fAllen like a rock. Yeah, it's disturbing to me.

You know, we had the CEO on and I thought the stories really good and I was about to add into the open but hold for my travel trust, which we talked about today at our travel clock meeting. I have to tell you, I have been to grim by how that stock is acting. I just don't know what is wrong. Um I know that they had some failures, but my god is a single lower and that let you the conclusion of the like them around.

Nobody believes me about europe. I, T is is just have me crazy, or at least more crazy. usual.

Last, I asked to thought not CEO of cisco mass card, two massive companies, how europe's doing? The answer from both. Very strong.

Yeah, of course. Cisco CEO, chuck, Robin, europe's finally turned. So those countries are trying to develop their own new technological inflections.

There's been to pick up in spending prety much across the board is so strong that even to tell communications copies which have really been in the dog house are finally spending. It's been ages could seen that kind of activity. Europe just seem very strong transaction level in many parts of the italy.

Not a place for cell beyond what people i've been fixed in the turning europe of content of seven hundred and fifty million people, by the way, that seemed to be left behind by wall street, almost becoming a non energy of many investors of eyes. I first heard about the term from animal, the incredible chairman of one of the largest action, you rope, I go in there. You know, that was mention possible by you.

Were all the show. Now see routines already seeing strength all around. The southern of europe, the same countries that were collapsed in more than a decade ago, are doing great.

great. Spain used to call the intial pigs. They backup. Now the leaders picks are flying. Then we had the european inflection, amazon, these guys spent ages losing money in europe, only to finally make a billion hours over there in the demonstration court, twenty dollars out of these gonna.

P, I think gams on stock has been in part because I would believe that europe can make them a heck of a lot more money than a billion dollars in profit. Apple also picked up an extra billion box and profit from europe's less quarter, something no one was so common. tani.

Burberry, crushed by china, is offering a possibility, tell com a good things to say. Even here, the will semi capital quipsome comme A S L, from the stood by its reduce forecast for month ago when the betting line was that they had the stock sort. Yet no one is paying attention, because wall three came up on europe ages ago.

Of course, the reasons obvious, germany now here is a country that snaps the auto industry order, is simply aren't selling ma vox wides closing three plants. The first time that i've had to do that there seven year history, workers will see their wages cut by ten percent, i'm much sure, of books, wagons, five billion or plus commitment in the american riviere, is going down on that backroom far. But the real cop's china, which isn't by nearly as much as he used to from germany, because their own order finally caught up to the west.

And because in doing that, well, it's not just volks wind, the german order makers haven't hit this heart since the second world war. Bmw sought sales to china point by thirty two percent and three quarter that caused early to shrink by sixty one percent, but said his bends experience, the thirteen percent decline in chinese sales cut their profit and half. These are big numbers people, and they seem to resonate much more loudly at anything positive we ve heard from the manufacturer.

And the rest of you're especially of the former pigs. But maybe, just maybe people start thinking about a turn in the entire content of president elect trump really does have a way to end in russia's invasion of uksa in time you have to believe your rope. See the biggest in decades.

I know that one day we look back and think we were too paralysed by caf talk. German was, and the history of lethodyne member, the old days when europe was a growth market. I just wonder how many times I have to ask, use, how's europe doing? Owned to get a surprise? Green.

This is, how do you know? I like says always more market somewhere. Proms, i'd find, just meet money you call all opinions expressed .

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