← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 11/22/24
00:42:48
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
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- [00:00]
American Express Representative
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Jim Cramer
Everyone has one and everyone deserves a.
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American Express Representative
Way to get there. That's why Estateg offers a wide variety.
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Jim Cramer
Of ETFs to give all investors access.
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American Express Representative
To the market and the chance to reach their goals.
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Jim Cramer
Like with DIA, where you get 30 US blue chip stocks in a single.
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American Express Representative
Trade wherever you're heading. Getting there starts here with State Street.
- [00:49]
Jim Cramer
Before investing, consider the fund's investment objectives, risks, charges and expenses. Visit ssga.com for prospectus containing this and other information. Read it carefully. DIA Subject to risks similar to those of stocks all ATs are subject to risk, including possible loss of principal. Alternative Alps Distributors Inc. Distributor My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cray Market. I've been with my friends. I'm just trying to make you a little money. My job is not just to entertain, but to explain and teach. So call me at 1-800-743- CNBC or tweet me. Kramer. We have stocks that are possibly headed the moon, or maybe they're headed to the sun. That's what's become of this market. We have speculation all over the place, more than I have seen in ages. And I can't figure out whether it's the success of Bitcoin, the joy of hunting for the next Nvidia when the wise but believe rightly wrongly that Trump's second term means happy days are here again for all sorts of stocks, even the most risky and some would say flimsy of enterprises. I do know this. It's been a wild couple of weeks where a lot of stocks have soared with no reckoning whatsoever. Including today with a Dow gained 4 and 26 points to all time high S&P 5.35% in the Nasdaq, which is lagging advanced.16%. Can it continue? Well, isn't that the. Look at how things are? Well, why don't we do this? Let's go to the game plan. We'll do a little pondering. Okay. Now next week is historically just one hell of a week. Remember when you were like in high school and the elementary school, whatever it was, and you would do this? Well, this ball doesn't allow you to do it. That's what you learned. Okay? Thanksgiving tends to unleash the animal spirits of the market in a very positive way. I'm no killjoy. I won't tell you to not buy Buzz or to designate someone in your family as the sober buyer. But there's getting to be a little too much speculation for me. And if we don't deal with it, if I don't talk about it, it's gonna become a problem. I got to get ahead of that in mind. What's happening on Monday? First, let's hope this bitcoin hits takes out 100,000 already so we can stop talking about it. Long live bitcoin. But this one's on the president elect and the idea of a strategic bitcoin reserve. And all the people justify buy it up here because they didn't own it any other way below here. As long as it's legal, I'm all in. But understand I have nothing to offer on bitcoin's hundred thousand dollar price ignore. Does anybody else by the way, except to say this, this is what happens when there are more buyers than sellers. How about stocks? All right, there's a heck of a lot going on. Retail earnings season continues on Monday with Bath and Body Works. These guys hold, they held E Commerce competitors much longer. They had them at bay much longer than other male mall based retailers. But the stock's been out of favor for a couple of years now. Believe it or not, the company's last two quarters have been okay. But both times Bath and Body Works gave discouraging forward outlooks that crushed the stock. It's fall from the low 50s at the end of May to around $30 now. Have expectations finally come down enough if they can give us some positive commentary on the holidays that it would go a long way in this market after the close here from Zoom Video. And this is one of those companies where the people who are shorting the stock are panicking right now and the buyers smell blood in the water. Zoom's got a lot of irons in the fire, but it doesn't always seem like has a lot of irons in the fire. This time though, in this highly speculative market, it might finally matter if they beat by two or three pennies. Tuesday is a huge day for retail. In the morning alone, we've got Best Buy, Abercrombie Fitch, Kohl's, Macy's, Burlington stores and Dick's Sporting Goods. Now we've seen a bunch of retailers report not so at numbers yet. In many cases their stocks still roared. Meanwhile, others like Target get club like baby seals. It's treacherous to start buying these now because many of these stocks have run mightily in the last few days. Take that, Dick's Sporting Goods. Now this one jumped eight points just today. Is that good because a sign that numbers will be great, or is it bad because it's borrowed upside? I'm betting it's actually the former because six is a category killer and there aren't that many of these left. Williams Sonoma comes to mind. I think Dix can pull it off. But is Best Buy still a category killer? We trim some of our position for the Chapel Trust this week after a big gain because we listened to the home repaired tales of woe that we got from Home Depot and Lowe's. This one is what I call too fraught. Then again, the shorts are on the right and no one really expects much from Best Buy. So if it gives us anything good at all, then it's to the moon. Corey. That's Corey Barry, the CEO of Best Buy. Man, how how old do you have to be to get that Honeymooners reference? The hills are now younger than I am. Abercrombie bomb last quarter after listening to the success that is Gap last night, I don't think AF gets it wrong twice. They're too good for that. Kohl's let's just say guilty until proven innocent. Let's hear what they have to say about Sephora, which I think is the main reason to go to the store now that Kohl's cash seems to have lost its allure like Confederate dollars. Next up, Tony Spring, the CEO of Macy's knows that his chain makes an incredible amount of money in the next 30 days this quarter. Simply a prelude to Macy's season. If he can tell a good story about the Bloomingdalezation of the chain, that's Bloomingdale's Asian, I guess really that his stock will build on today's lead. I mentioned that because Tony is from Bloomingdale's and he did such a great job there and I am pulling for this guy. TJX and Ross stores both reported good numbers and I doubt that Burlington stores will be any different. Well, that makes for a terrific trade. We have a food stock reporting to JM Smoker. We talk about this. The market doesn't seem to like the food stocks anymore, does it? But maybe they're at this point overly hated. Wall street doesn't like that Smucker seemingly paid too much for Hostess brands when IT shut out 5.6 billion for the property that's known as the king of junk food. But in this market, if you can simply deliver in line numbers, the stock could soar because of all those Twinkie bashers who would be caught leaning the wrong way. In other words, shorting the stock when they shouldn't be at the close. We have some big tech names reporting, including some of the own for Travel Trust, Crowdstrike, Dell Technologies Workday. I think we might see these go 3, 4, 3. CrowdStrike's been on a charm offensive. That said George Kurtz, ever since that summer glitch heard around the world, I believe that CEO Kurtz has a free pass to say how the company's doing. So it might be a real good time to buy it ahead of the quarter, maybe pick some up this day. I Palo Alto, by the way, it also did well yesterday. People didn't get it. The quarter was two days ago. The quarter was actually very good. Okay. My Chapel Trust owns both and it's worth going over our investing bold on the quarter that is Palo Alto. So you actually know what happens versus what the stock is saying because the stock is wrong. Dell is the best partner of Nvidia when it comes to implementation of Blackwell, which is the new generation of AI chips. I buy some now and then I buy some after it pulls back. And hey, if the stock doesn't come in after it, well, then you still got a good position on I am a huge believer in Michael Dell and I think we're lucky to be able to invest alongside him. Workday Easy. It's enterprise software. And suddenly the world loves enterprise software as much as they hate enterprise software. In the year Workday was there early, it's a winner in the human resources and financial spaces within the enterprise. Now here's a really important one after close HP reports and I want to know the truth here. If the PC is really doing as well as expected, then I don't think it is. And I think it might not be. And we need to know why. Here's a question. Is Microsoft's co pilot a useless appendage like Clippy? You know that Mark Benioff thinks so he's been talking about it for ages on Twitter. You ought to check it out. I say truth is wanted here. I wish there was more to say. Stocks have historically been a done deal after Tuesday but we do have a key Fed number, the personal consumption expenditure PC. Now we know the economy run hotter than the Fed would like. There's talk that we have no need for December rate cut. It's a very tough call especially because long term rates including mortgage rates have been climbing since the Fed started cutting. You know it's supposed to go the other way. So a core PC number could cause still one more eruption higher. A hot one though. We might see a rollback in some of the most speculative stocks. That's what I'm concerned about going into the week. And bottom line, if you have huge profits in the month of November, could you do me a favor? I would show a little thanks next week and take something off the table in your most risky positions. You and I will certainly feel better about it later on. How about we go to Susie in California. Susie, Susie here.
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Caller
I know you said my name. Hey, I love watching this show and all the fun you seem to have punching those buttons and talking stocks generations through a variety of segments. Retail, Texas east west and Asset closure. It's had a great run since August 2023 from 28 to 162. In fact when it's first heard you talk about the stock in September it was 112 but I didn't buy it as I knew nothing about the sector. What do you like about Distra and good investment.
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Jim Cramer
Okay so let's say you listen to it. Thank you for that. Susie. If you're looking at if you went over in videos call yesterday there's a part where Jensen says listen the CEO we just don't have enough power in this country to handle all these chips. And people say okay well who does? And the one that always comes to mind is Vista. So every time somebody says something good there are buyers who come in and buy Vista. At this point Susie, I'm going to say heresy. I'm going to say enough, let's let this one come in or more importantly let it go up now without me. I don't want to continue to support something that is up this much because I have to worry about what happens now when it goes down. I need to speak to Randall in North Carolina.
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Caller
Randall, Booyah. Jim. I have two items here. First I would like to thank you for bringing my attention to Nvidia a while back. It's Been very positive. And in honor of that, I want to name my next dog Kramer.
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Jim Cramer
Second, Holy cow. I mean, I would love that. But remember, it's not the Kramer from Seinfeld. It's the actual Kramer. Okay, go ahead. Got it.
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Caller
Second, how do you see the possible turnaround of Boeing stock? BA I've got some statistics here. You know it's supposed to be profitable in 2025, right? Orders are coming. They lost 6 billion in the third quarter, the 737 Max.
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Jim Cramer
I'm pulling for Kelly Ortberg. I'm pulling for Kelly. I think that they can get. I mean, he gave a pretty encouraging talk, I felt this week, but it was also very sober. But you know what I have to say? I say, why do we need to worry about the entry point in Boeing when we can just stay with Nvidia? And I want to thank. I talked to another Nvidia millionaire yesterday, someone who watched the show and just became a millionaire. From Nvidia, it's Jensen that's doing it. We just talked about the news. The market's been a great run here and if you have some big profits, you know what, for this month, I'm actually now begging. I would get on my hands and knees, but I'm really tired. Take something off the table, please. All mad money tonight. Could the natural gas industry be a Trump trade? Trump trade to watch. I'm telling you where I stand. Give you some stocks to keep your radar, that is earning. Season winds down. I'm recapping the latest retail port, sharing my takeaways about the state of the consumer. And later, I'm taking cramerican call as we play MI Diversified. So make sure your portfolio is positioned even in a market where it just seems like nothing ever goes down. So stay with Kramer.
- [12:05]
EY Parthenon Representative
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Jim Cramer
When.
- [13:07]
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- [14:16]
Jim Cramer
In the two and a half weeks since the election, all sorts of Trump trades have caught fire. Everything. Cryptos up huge, Bitcoin's up 43%, Coinbase up 57%, private prison stocks are soaring 69% and of course Elon Musk Tesla is up 40% and hey, maybe they keep running. But honestly, many of these knee jerk reactions seem pretty extreme to me. So tonight I want to give you what I think is a more sustainable Trump trade. I'm betting the whole natural gas ecosystem will thrive with the Republican trifecta in Washington. Our country is blessed with abundant quantities of natural gas which can be produced on the cheap. Some people think we're the lowest in the world, but thanks to the Biden administration's antagonistic attitude toward fossil fuels, along with the weaker global economy, the NAT gas complex has underperformed for most of the year. I think that's about to change. See what we've got tremendous amounts of natural gas. We don't have the infrastructure to get it where it needs to go, in part because the Biden White House laws blocking new pipelines and even declared a pause in liquefied natural gas export authorizations. That was a stunning comeuppance, by the way, to one of our strongest industries that employs thousands of people in high paying jobs. The betting is that Trump's going to undo that on day one, giving new life to all these LNG projects that really have been stuck in limbo, a lot of them canceled. By the way, we already know that Trump has appointed an oil exec as energy secretary, Liberty Energy's Chris Wright and this guy makes Exxon or Chevrolet look like green peace. He's going to give the industry everything at once and then some. I think he drilled in a schoolyard when they are playing dodgeball now. Since the election, natural gas itself has spiked more than 70%, although much of that's thanks to a recent cold snap. After a warm fall and a generally late start to winter seasonally, this is a good time for the commodity. But I also think that there's some optimism about the future of the industry driving this move. So if Trump's going to give the natural gas industry whatever it needs, what's the best way to play this? First, you could own some producers now. I happen to like company called Equity, which is exclusively focused on natural gas operations in the Appalachian Basin, across Pennsylvania, West Virginia, Ohio. After spending a couple of years trading sideways, equities caught fire since the election, climbing 22% to its highest level since late 2022. Even before the election the stock was getting buzz. Bank of America reinstituted coverage with a buying in late October. Then the next day Equity reported terrific beat and raised quarter which did shock me. Earlier this year Equity made a pipeline acquisition buying Equitrans all stock deal valued the company combined company more than $35 billion that closed in July. In the latest conference call, Equity CEO Toby Rice, a real smart fellow on our network a lot was a buoyant about the merger saying the quote transform Equity into America's only large scale vertically integrated natural gas business, end quote. Untrue for noting that the integration is well underway and saying that all sorts of efficiencies are being unlocked along the way. If the natural gas rally truly is legs then I got to tell you by the way, I still very much like Kotara Energy, currently the only energy holding in my charitable trust. Which of course course you can follow by joining the CBC investing club. This is another exploration of production play, although it's more balanced between oil and gas. In fact, after pair of acquisitions announced earlier this month, Qatar's revenue mix will tip a bit more in favor of oil next year. We like to say it's more oily, less gassy. It does happen to have the lowest cost natural gas of any company in our country and that's because of the legacy of the old Cabot Oil and Gas which created Qatar when it merged with Simrex and rebranded the combined company I like Kotara Energy because it's one of the shrewdest operators in the industry. I trust them to handle whatever environment we already have, making it a great long term holding. When reported late last month, Qatar announced that they'd signed three new liquefied natural gas supply agreements to sell a total of 2 million cubic feet per day indexed to international price points. Now that is huge because international price points are much, much higher than domestic ones. The actual sales won't take place until 2027, 2028. That was a bummer to me. But it's the nice look. They're going to unlock a lot of demand and I think it's going to. It gives it a great, great glide path for the next couple of years. When we spoke to Guitar CEO Tom Jordan a couple of weeks ago, he told us that there's quote a much, there's more that of that to do and you know what that meant. That meant be patient. He's going to do some more deals but no deals that aren't accretive other than the producers. What works? If you're betting on a natural gas renaissance under Trump, I do that as an, as a, a pan to Will Frost. How about a pure play on pipelines? Much easier to build these under a Republican administration. There are plenty of good options here. I've been consistently bullish on energy transfer and Kinder Morgan. They yield 6.8% and 4.0% respectively. But rather than those two, I actually want to pound the table and one that I think is getting a little support. But it's not like it's called Enbridge. We've had them. One air. The Canadian company transports nearly 20%, 20% of the natural gas consumed in the US and also operates North America's largest natural gas utility, up by volume at least, serving customers in Ontario, Northeast Ohio, Utah and North Carolina. For the pipeline business, the company is very strategically located. Assets connecting to the Gulf of Gulf coast, to the eastern Midwest, meaning the Appalachian Basin. They actually are in the Gulf King. Okay. They also go across the Northeast. They can get natural gas where it needs to go. Their system is just incredible. After spending a long time, I mean like a super long time in the dog house. Enbridge has taken off in the back half of the year, rallying 22% since the end of June. Even after that move though, the stock sports a bountiful 6.1% yield. It's one of the safest dividends around, totally covered by the cash flow. We've been with it the whole way for years now and have been able to get that juicy yield while waiting for some loss. What some thought was Godot but it turned out to be Trump that was up there. Finally with the new more fossil fuel fuel friendly administration coming in, I think it's time to start thinking about the direct liquefied natural gas export place again. We've liked them for a long time. Probably we were the first to like them in the whole country and the best play is the one we first recommended which is near energy. They were first mover and have a nice lead when it comes to NAT gas exports actually happening right now. The stock trades sideways from the mid-2022 until the middle of this year but it's gained a mirror a more or mere 15%. Anyway you want to look at it since the election reached new all time highs. I also like Sempra which is a more diversified power company but has plenty of NAT gas exposure to regulated gas utilities in California, big NAT gas pipeline network that helps bring gas to Mexico that they need our natural gas after being so big in it, but they haven't done any of the infrastructure. It's also got a growing portfolio of LNG export facilities in both the U.S. and Mexico. This is another name that's broken out since the election. Straight up actually also 15% now I would be a little more cautious, buy some and then wait for it to come down. But here's the bottom line. We're hearing about all sorts of Trump trades right now and many of these things have made insane moves in less than three weeks to the point where actually they're feeling a little precarious. To me, if you want a sustainable Trump trade, I say better than the natural gas ecosystem. This is an industry that already had a lot going for it. It just needed some cooperation for the federal government which is about to get and that's why I can get buying producers like Equity and Kotara, pipeline plays like Enbridge, liquefied natural gas export stock like Chenier Energy and Sempra. I bet they keep running for the next couple of years, not months. They have all moved but they are nowhere versus where they could go now that the Biden's anti fuel anti fossil fuel team has been broomed for one that is totally supportive of this industry Bad. Bonnie's back after the break.
- [21:28]
Caller
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- [21:31]
Jim Cramer
Your business is power.
- [21:32]
Caller
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Jim Cramer
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Caller
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Jim Cramer
They'Re all connected so you're always in the driver's seat.
- [21:48]
Caller
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- [21:54]
EY Parthenon Representative
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- [22:34]
Jim Cramer
After Nvidia reported on Wednesday night, it felt like we finished that 26 mile of the earnings Bear Thunder. It started all the way back 10-11-11 when the Chiefs are still undefeated and we didn't even know the next president would be that earnings season is about more than the magnificent seven and a marathon is not over 26 miles got 26.2 miles long. That's why tonight I want to walk you through the last fifth of a mile, recapping some of the big retailers that reported this week. After all, as much as I love video and you know I do, demand for AI chips doesn't tell you much about the state of the consumer. First up, Target, which reported a quarter that reminded me of those videos of deep fried turkey fires we always get this time of year. Honestly, I mean, that comparison does a disservice to backyard grease fires. Target missed the mark on basically every important line item there, 0.3%. Same store sales growth came in well below the 1.5% that the analysts expected, and it showed decelerating traffic from the previous quarter. Overall sales came in light too, and Target had their worst profit miss in two years. With the exception of Beauty, which is handled by the way about by Ulta, Discretionary spending exhibited softer sales trends compared to the previous quarter. As a result, management was forced to lower their full year earnings per share forecast by 75 cents at the midpoint. While management noted that port strikes drove some additional cost the quarter, that was enough to prevent the stock from tumbling nearly 22% the next day. It's not the numbers alone that cost the decline. What really worries people is that Target might be losing market share to the competition because some of its competitors offer much better bargains. Competitors like Wal Mart, which reported a stellar quarter just one day before Target, and what a difference one day makes. Wal Mart absolutely crushed the estimates with a 5.5% same store sales growth rate of 3.9% consensus including some very impressive numbers from Sam's Club. In complete contrast to Target, Wal Mart gave you a terrific top and bottom line beat, then raise their full year forecast. Walmart's management pulled out several different areas where they keep gaining market share. No wonder everybody sold Target when it missed the next day. Just imagine 75% of these share gains came from households earning at least six figures. Nobody ever got hurt by having customers who too rich. And this wealthier core, by the way, is relatively new to the Bentonville Colossus. General Merchandise also posted the first year over year growth in seven quarters and that's despite prices coming down over 4%. Turns out that when you give people great deals, you can make it up in volume. Management expects these market share gains will continue in the fourth quarter, which is why I think the stock kept climbing all week. And it's not hard to understand why people are flocking to Wal Mart. 6,000 price rollbacks 6,000 across all categories Last quarter doesn't matter if your household's making hundreds of thousands of dollars a year. Value is value. And besides, according to the Bureau of Labor Statistics, 100 grand today is equal to about 80 grand the year before the pandemic. Easy come, easy go. Like I keep saying, Americans are just sick and tired of high prices. The few retailers and restaurants that are willing to offer great values are making fortunes here. The ones that keep the prices high are being eaten alive. How about the rest of retail? Williams Sonoma, another company that delivered a surprisingly great quarter thanks in part to their value proposition. Now we had President CEO Laura Albert on the show earlier this week. She was fantastic. She explained how the price to value balance has brought customers in while allowing the company to reduce the promotional activity helping them deliver these blowout numbers. Boy, she really railed against people who do a lot of promotions. That's not her game. Hey, speaking of Apple tjx, the parent company TJ Max Marshall's Home Goods which we own for the Travel Trust. This is an off price play. They buy excess inventory from normal retailers for chump change then mark it up. Remember, these are retailers that got to get rid of the stuff because they got the new stuff coming in and they give it to you at a great price. So I wasn't surprised. TX Report a comfortable top and bottom line beat healthy same store sales growth in all key operating segments driven by hard transactions. Now the conference call is even more encouraging. Although flat, it was encouraging. CEO Ernie Herman non promotional to say the least said quote we continue to see outstanding availability of goods across a wide range of brands which gives us great confidence in flowing, fresh, exciting assortments to our stores and online this holiday season and beyond. End quote. Despite the impressive results for the quarter and encouraging commentary, the stock barely budged at one point was down a couple of smackers, partly because the guidance looked a little light. But as someone who has followed this stock for ages and knows it well from our Child Trust, I can tell you they are serial performers of you part. They under promise and over deliver. And the boy, do they ever over deliver the next quarter. Now next. Just like Wal Mart and Target had wildly different results in basically the same space. How about Lowe's and Home Depot? They went in totally different directions. Last week the desk bot reported top and bottom line beat strong same store sales growth. So people expected good things from Lowe's before it reported on Tuesday morning. While Lowe's did beat the estimates for both sales and earnings, the stock had already rallied to the point where there just wasn't enough. Unfortunately because Lowe's has higher mix of do it yourself customers compared to Home Depot's more professional customer base. Lowe's has been hit by the continued pressure on discretionary spending in general and the home improvement industry in particular. Renovation. Okay, this gap would have been even more pronounced if it wasn't for the sales benefit they saw from the hurricanes. Still low sense of benefit when the home improvement cycle starts or turns when the Fed keeps cutting rates. Hopefully they got an analyst. You remember that analysts meeting come up December 11th. I think Lowe's is going to tell a very powerful story if management can make a compelling case, and I think they can, for why the business might improve towards the beginning of next year. We own Home Depot. For the Child Trust it was just better. But they really are the professional place to do home to do home renovation and construction to close out this week of retail last night. Oh, what a joyous call we heard from Gap, which also owns Old Navy and Banana Republic. I've been a big fan of what CEO Richard Dixon has done to turn things around here with his focus on reinvigorating the brand. And last night's results show that he's pulling it off. Despite posting slightly softer than expected same store sales, the Gap managed to deliver a modest revenue beat with much better than expected margins, leading to an impressive 14 cent earnings beat off a 58 cent basis. Wow. As a result, management was able to raise their full year forecast. Most promising of all gaps brands gained market share in the quarter. That's huge. Each one did. It was great in the conference you got to go listen to it. Plus it's. It's Athleisure nameplate Athletic. It inflected much earlier than I thought it could. Athletic. Imagine these guys. Athleta. They have done the athletics probably missed the quarter for. I think that's all they do is miss the quarter. It's a wonder that the stock rallied 12%. By the way. The commentary from Richard was really, really strong about each division. Here's the bottom line. Now that we've worked through retail week, it's safe to say that the earnings season marathon has come to an end. Except for a few stragglers that I mentioned the beginning of the show. And we can spend the next week gobbling on turkey and some sides instead of quarterly reports. I'm going to have to go to athletic and get some clothes that will fit me by the end of next week because I haven't eaten in days. True. Trey in Texas. Trey.
- [29:38]
Caller
Jim, my wife's been telling me she's tired of me prioritizing watching Mad Money over our marriage as she sees it.
- [29:44]
Jim Cramer
Why? Trey, you and I both know we talk to each other more than I talk to my wife. I gotta tell you, my wife is jealous of Trey. She is. She said, why do you keep talking to Trey? What is that special relationship? I said, it's okay. It's okay. He's in Texas. All right.
- [29:57]
Caller
Mine is too. In fact, earlier this week she went as far as to tell me if I ever call into the show again, she'll leave me anyways. Lululemon.
- [30:05]
Jim Cramer
My wife saying the same thing if I take your call.
- [30:08]
Caller
Absolutely.
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Jim Cramer
I'm sorry. Yeah, I was just.
- [30:10]
Caller
Lululemon. Now I bought this back in January, so naturally it's down about 40% year to date due to rising comps, falling margins. My safe holding on here or should we separate?
- [30:21]
Jim Cramer
I want you to buy Gap. This athletic division was up 5%. It's rather extraordinary. I think they're going to start taking share from Lulu and I'm very worried that Lou became so China centric. And you know what I think about China daisies. Now that we're nearing the end of retail earnings, we're seeing some clear winners like Walmart, William Snow Merchant packet and don't forget on the Depot because they offer real value to the customers and there's so much more mid money including am I diversified then with stocks like Rocket Lab. Ben Stoto favored by. He's our chief engineer also research record surging higher. Should you be confident in or cautious of the long term outlook And I am joking. I'm laying out my keys. That a bit about that. He loves the stock. I'm laying out the types of moves that you can expect in oil calls rapid fire. Tonight's just a lighting round, so stay with Kramer. We love the major average as they all finish the week higher. Dow closing at a record high. Can you believe it? But, you know, we're also seeing some sector rotation happening under the surface. It's pretty vicious. So I got to make sure your portfolio is positioned to take advantage of it, not just be beaten by it. And that's why tonight we're playing M. I diversify. This is where you call me, you tell me your top five holders tell you maybe you got to shake it up a little or maybe you can keep it the same. Let's start with Brian in sweet home Alabama. Brian.
- [31:40]
Caller
Hi, Jim. How are you?
- [31:41]
Jim Cramer
I'm doing real well, Brian, because it's Friday. How you doing?
- [31:44]
Caller
I'm good. Hey, Jim, I wanted to thank you. First of all, I wanted to thank you for all that you do and to say I've benefited greatly from your advice, teachings and investment disciplines and the wealth of information that is available online to members of the CMB investment club.
- [32:00]
Jim Cramer
Oh, man, you're terrific, Brian. Thank you. You are terrific for saying that.
- [32:04]
Caller
Thank you, Jim. You are the Pied Piper of Wall street, bringing common sen. Investing advice to the masses. And thank you, my friend.
- [32:13]
Jim Cramer
Well, we're all part of the masses. Maybe that's what it takes to be. To recognize you and I are in the same boat. And it's not leaky, it's strong. Let's go to work.
- [32:21]
Caller
Let's go to work. So, Jim, as an engineer, I'm a big believer in the technology sector. So if you would please evaluate the diversification of my five stocks from that. Basically, what I've done is I've created my own technology spider and since 2016, it's up 360%. And I do understand the risk of concentrating in a sector, so I want you to know that I have not put all of my eggs in that basket a significant amount. But I think with today's market and with the. With AI and so forth and technology, I think it's. I think. I think it's well worth the risk.
- [33:01]
Jim Cramer
Okay, I see what you're talking about. I'm going to evaluate it with that in mind. I'm not going to just say, hey, it's all tech. Forget about it. I understand exactly where you're going. Give me the names.
- [33:09]
Caller
Okay. My Five stocks are in video. Amazon, Broadcom, Palato Network, and Microsoft. Thank you, my friend.
- [33:18]
Jim Cramer
No problem. There they are. Okay. Isn't that amazing? There they are. Okay, so let's think this through, because what Brian is basically saying is look within the confines of 27% of the S and P, it is technology. There are enough rivulets within technology that we should be able to explore each tributary. So let's do that. Palo Alto Networks is club name that is one of the finest cybersecurity companies. It was a good quarter, but there are knuckleheads who think it wasn't. They'll be left behind. I don't mind. See you later. Don't. The door hits on the way out. Broadcom is very good plumbing on the inside of cell phone, inside of data center, inside of the server. It's pretty much everywhere. It's ubiquitous. So we understand that Amazon is primarily now a web service company that also has a retailer connected to it and also has an advertising business. Nvidia, we now have to be able to say, is the backbone of the whole darn world, because industrial revolution that's occurring. And Microsoft, we're going to say, is enterprise software and gaming. So we have enterprise software. We have a web service company. These both have web services, but they also have ancillary companies. Why don't we do this? We won't consider that. We won't consider this web. We won't consider the cloud business per se. We will consider only their ansler other business, not ancillary. So this is. This is going to be software. This is going to be retail. This is plumbing, this is cyber, and this is Internet of everything I know else to put it. And in that sense, Brian's got himself a terrific portfolio. What would I have done differently? Broadcom is not. Not the semiconductor company I would have used. I would have used amd, and he knows that. But AMD doesn't act well right now. But I think this is. This is going to do just fine. We're going to stay in Alabama, frankly, because it happens to be one of my favorite states. Let's go to Jimmy in Alabama. Jimmy.
- [35:04]
Caller
Hey, Jimmy. This is Jimmy. Thank you for your time. I became an investment club member just a few months ago. One of the first things I learned from you was don't invest more than 5% in any one individual stock. Well, I first started buying stock, individual stocks in 2015. One of the first I bought was Nvidia. I've since sold my initial stake in it. But now of my 20 stocks that I own 60% of the total composition is really Nvidia. So what do I do? I have five stocks to talk to you about.
- [35:35]
Jim Cramer
Okay, well first I'm going to say that's one of the highest quality problems. But because you took your, if you've taken your cost basis out. All in my book, in all my books, I say once you're taking the cost bases out, you let it run. I don't care that it's that big of position. You've Nvidia, but I don't know the other stocks. Let's see where the other stocks you have.
- [35:54]
Caller
Okay, the other four stocks that I have are Corterra, Energy, Intuitive, Surgical, JP Morgan Chase and CrowdStrike.
- [36:06]
Jim Cramer
All right, this is good. All right. JP Morgan Chase, world's largest bank. I like them but you know, I like Wells Fargo more and more parts of that. Kotara is oil and gas now. More oil and gas. Hence you see that stock just explore exploding higher Intuitive is one of the best medical device companies. I wish we owned it for the child trust. I missed it focused too much on Abbott, but Abbott's working. Nvidia we know is Internet of everything and semi of everything. I don't know, what do we call it? What you call it Renaissance. It's the Renaissance, okay, Where you know, the world kind of changed in the renaissance. And then CrowdStrike, cybersecurity company. That happens report next week. So we have cybersecurity, we have Renaissance, we've got bank, we've got oil and gas and we have medical device that is just absolutely perfect. And once again, if you've taken your cost basis out of an even a speculative stock or any stock, I'm going to let you let it run, okay? Because you're never going to lose money. And the biggest sin in our business is to turn a gain into a loss. Now we're going to go another one of my favorite states. We're going to William in Kentucky. William, that's where Secretariat, Spurs.
- [37:08]
Caller
That's right. Hey Jim, Will from the horse capital of the world, Lexington, Kentucky.
- [37:13]
Jim Cramer
Yes.
- [37:14]
Caller
I think you're going to probably give me a hard time because I've got five names that are some way related to the air revolution. But let's go to work. So I've got five stocks. Adobe, Palantir, ge, br, Nova. So five and Reddit. Thanks.
- [37:34]
Jim Cramer
Is he diversified? Okay. G for Nova. This stock is so hot. I can't believe. You know, one point we thought it wasn't even going to be able to spin out because it had, it had such a bad balance sheet. Now it's got a good balance sheet but it's got the most momentum of any major cap stock in the market. We have Adobe, a software company, we've got Reddit. That's online publication. How about that? We got so far that's Anthony's brainchild. Not really, but he did come in and save it. And then Palantir, which is. Well, Palantir is a sacrilegious call to anything other than the greatest company in the world because that's what I heard the CEO tell me. But this is, it's not really cybersecurity. It's more of a military web company with the consumer product tail. But we're going to call it cybersecurity. We're going to have publication, we're going to bank, we're going to have software and we're going to have let's say alternative energy. I don't want to call it, no, I don't want to call it all non fossil because it's actually a really big natural gas company. I mean natural gas turbine company. So I'm going to say it's diversified again. This, this, this, this all have a tech component but 27% of the S and P, he's got tech. I can't help it. Let's leave it at that. Matt mice back after the break. It is time. It's talk about white round commercial by the three. Take your calls. Rapid fire save the stock. I sell you to buy. Buy, buy sells. Will sell or disquiet another quarter Stock questions at a time. My staff prepares the graph for selling fire replaying the sound and then the lightning round is over. Are you ready, Skip? Hello there Jim.
- [39:11]
Caller
How are you this evening?
- [39:12]
Jim Cramer
I am doing well, Jane. How are you?
- [39:15]
Caller
I'm doing really good.
- [39:17]
Jim Cramer
All right.
- [39:17]
Caller
I was wondering about the company dht.
- [39:22]
Jim Cramer
Well, you know what that would be what I regard as being a hedge to the craziness that we're seeing right now. It's not like bitcoin which was a hedge but now it's just Pure speculation. Yields 5.6%. It is a very well run company. I am blessing it with a buy. Let's go to John in Virginia. John.
- [39:39]
Caller
Hey Jim, thanks for taking my call. I'm a huge fan of yours. Watch your show every night.
- [39:43]
Jim Cramer
Oh, thank you buddy.
- [39:45]
Caller
You're welcome. My question is should I hold or sell?
- [39:49]
Jim Cramer
Fang diamond by Fang Fangs. Fang is actually very, very good. And if you like the oils, it's a little more Aggressive than the one we own for the truck which is Kotera. I think it's well, well, well, well. Run Travis Dice. Good man. Let's go to Zach in Florida. Zach.
- [40:04]
Caller
Hey Jim, how you doing?
- [40:06]
Jim Cramer
I'm doing well, how about you?
- [40:07]
Caller
Doing great, sir. This stock about to ask you about is near all time lows. It has a few new revenue streams and has financed their debt to below what is what it was in 2019 with with Hollywood bombs dropping in the foreseeable future. What do you think about the largest theater company in the world? AMC theaters.
- [40:26]
Jim Cramer
If it gets a six, I want you to sell it. Period. End of story. Dhiraj in Pennsylvania. Dhiraj.
- [40:32]
Caller
Hi, Jim Kramer. I'm a big fan. I'm a transplant physician watching your show 15 years and consider you like a guru.
- [40:40]
Jim Cramer
You are like a blessing to all of us. I must thank you.
- [40:46]
Caller
My son just turned one year so I wanted to buy a stock for him. I thought of a futuristic technology evolved Joby. I wanted to pick your brain on Joby.
- [40:55]
Jim Cramer
And obviously let me tell you, I actually am going to bless this. Let me tell you why, because you he's one and you got all the years ahead of you. If you would tell me within the next five years how Joby is going to do, I am going to be very uncertain. I think if it contains continue to finance itself then it will be able to make it out of here because it does make sense adjusting sort of way. So I'm going to bust it but only for like a 20 to 30 year trade. Let's go to Jim in New York. Jim, Good evening Jim.
- [41:22]
Caller
Thank you for taking my call. First time caller.
- [41:25]
Jim Cramer
I'd like to get your outlook on.
- [41:27]
Caller
A company that I don't think some of your viewing audience has ever heard of. But it's been a good long term play. I've had it for over 14 years, made over 2000%. The 20 year return is over almost 4000% and it split seven times since 99 and it closed up today at over 10%. I'm talking about Copart.
- [41:50]
Jim Cramer
Copart I first recommended in 2000, in the year 2000 when I was@the street.com it is a remarkable company because it drives vehicle supplies and it is just unbelievable because they sell salvage vehicles and that is what is needed Now I will tell you this because it just had a parabolic move from 50 to 62. I can't recommend it. I feel terrible with that, but I can't. I need to see a pullback in Copart and That, ladies and gentlemen, is the conclusion of the Lightning Round. How much do I wish that every stock would turn out to be Nvidia, one of the biggest winners of all time. Wouldn't it be fabulous if so many of the money losing companies I get asked about all the time could become the next Nvidia? I would love to rave about these names. I just wish I could. It's not going to happen. So I went Nvidia. And as they say in law school, the rise of Nvidia is sui generis. So where does that leave the others? The companies you want to know about and think could make you fortunes? Are they all just lottery tickets that I refuse to bless on the show? And why am I thinking about this at all? Rocket Lab. That's why I thought through the introduction of the lightning round, 180mph. Crucial though, and buried within that prologue are the words quote, I do not know the stocks ahead of time. End quote. That's right. I really don't. But I do study thousands of stocks and one of them is Rocket Lab. I studied because you so many people just keep asking me about it. I know it's losing money and that is a negative. I also know that anything space is incredibly exciting right now. When you have two of the world's richest people, Jeff Bezos, Neil and Must duking out to create the best rockets. You don't want to sneer at a money loser that happens to launch spaceships, provide launch services and manufacture satellite parts. Because you're buying the picks and shovels of the space revolution. The company's creating its own rockets to it successfully launch a reusable rocket. So where are the flies in the ointment? Why don't you say this could be the next space X or blue origin? Price. That's why. Price. You see Rocket labs up nearly 321% for the year. It's not like it's an undiscovered gem. It's a highly discovered, maybe overexposed even company. You can't just bless a stock with a chart that actually looks like a rocket ship taking off. Unless you can somehow, somehow justify its valuation. Even if it's got a great business model and amazing prospects of the prices. Too high. I have to say, forget about it. And by the way, rockets can explode. Even the best of them. Now I know that can be a bitter pill to swallow. I can hear some of you saying, hey, he bought in video for his trust when it wasn't anything like the current Nvidia. And it grew into $3.5 trillion stock. Did it really matter if you first bought Nvidia $20 or $30? I know hindsight's 20 20, but you know what? It does matter. See, even if Rocket Lab turns out to be incredibly successful, will you still be in it when it reaches those levels? Think of it like this. You know, I like so far 15, it's been a real winner since $5. But has it been a real winner since 2021 when it traded at $25? I don't think so. How about if you bought it in the 20s when the Nasdaq was peaking November 20, 21 and one year later was at 5? Nobody sticks with that kind of loser. You don't get to the promised land. And that's what I fear. I want Rocket Lab to be as successful as this version of SOFI is now, but I cannot endorse a straight up stock that could potentially go right back down. So excuse me for saying I'm not comfortable with a certain stock that you might like, because I think the price is wrong. A stock that's going literally straight up is just as much a candidate to be the last so far, the one that went from 25 to 5, as it to be the next so far, the one 5. 15. Price does matter, people. You matter. I don't want you to get hurt. Which is why even if I love a company, I might not love the stock after a parabolic move. It might be better to take a breather, sell some, even ring the register on a piece of it. So if it does come back to earth, even for a short stint, you'll some dry powder. You can buy some back. That way you can avoid turning the entire gain into a loss, which is a sin that I cannot countless as long as I run Mad Money. I like to say there's always a bull market somewhere and I'm palms try to find just for you right here on Mad Money. I'm Jim Cramer and I'll see you Monday.
- [46:14]
American Express Representative
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal 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 Cramer 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.com mad money disclaimer first.
- [46:53]
Jim Cramer
And foremost, the thing that powers your business is power.
- [46:57]
Caller
And when it comes to power, Ford Pro has options.
- [47:01]
Jim Cramer
Now, scratch that, we've got every option.
- [47:04]
Caller
Diesel, gas, hybrid, and all electric. Plus they're all connected, so you're always.
- [47:12]
Jim Cramer
In the driver's seat.
- [47:13]
Caller
The power is yours. Visit FordPro.com today to learn more.