← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 11/24/25
00:44:23
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]
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Jim Cramer
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cramerica. Other people want to make friends. I'm just trying to make a little bit of money. My job is not just to entertain, but explain things. So call me at 1-800-743- CNBC or tweet me. Jim Cramer Sometimes out of nowhere you just get hit by a tech lightning bolt. That's how I felt about ChatGPT a little more than three years ago. What was this amazing creature? How did it write a haiku about a friend? How did it allow me to do a Mad Money style interview with Gandhi? We found out quickly that this was this invention was the brainstorm of a company called OpenAI, launched on November 30, 2022. Five days later, five days it had 1 million users ever since. Those propelled the averages higher without ever coming public. Quitting today with Dow gained 203 points as we climbed 1.5%. The NASDAQ polled a gigantic 2.69%. Last week we had another moment, this time from Google, which unleashed A new version of its own Gemini generative AI platform. A third version. And it was immediately hailed by many, quoting a perfect declaration from Marc Benioff, the CEO of Salesforce, who went on X, formerly Twitter, and posted this. Holy ass. I've used chatbots every day for three years, he tweeted. Just went on, just spent two hours on Gemini 3. I'm not going back. He then went on to say the leap is insane. Reasoning, speed, images, video, everything is sharper and faster. It feels like the world just changed again. Now chat CBT has 800 million users. Some would say it's the fastest growing business in history. So the idea that could be dethroned so quickly is inconceivable. If you ask even Gemini, it would agree. Although I should point out that this chat bot is self effaced, not boastful. It's also drier than cheap GPT and not all that friendly. But as a regular and at times heavy user of Chat cbt, I too suddenly find myself migrating to Gemini. Normally this kind of release doesn't mean all that much, but the stakes in this business are gigantic. Alphabet, the parent of Gemini, has seen its stock rallying furiously. A real rocket ship is up 68% so far this year, much of that coming in the last few weeks as more and more people realize was undervalued versus the other six, the Magnificent Seven. And then it went nuts into overdrive as people started hearing about Gemini 3. And then they saw it. Wow. Alphabet already had a big leg up on other challengers to open AI. That's because they figured out how to link Google, the search company, to Gemini, the AI company, in a seamless way itself. Remarkable feat. Many people thought there'd be a ton of cannibalization, but they just combined them onto the same page. The geniuses behind Alphabet, and I mean Jesus, managed to figure out how to take advantage of Google to build Gemini. So it was never hard to find. But it's only with this Gemini 3 that there's a real breakout in the stock. You have to understand the implications here, both positive, negative. First the positive. Google built Gemini on the backbone, not of Nvidia, but on a proprietary chip designed with Broadcom and unhurled. A trillion dollar stock defaulted 38 points today, one worth 11%. It was an even bigger deal for Broadcom than was for Alphabet, which rallied 6%. But the negatives were huge. To open air is not publicly traded. However, you can only imagine what would have happened to its stock if it were public. OPE is spending Hundreds of billions of dollars to be number one. And its huge user base makes it the largest regardless of Gemini's prowess. But if OpenAI's user growth board is slow even a tiny bit because of Gemini, well, that could be a big problem for both Open Air and more important, its business partners. Remember, this company is something like $1.4 trillion worth of spending commitments. In order to raise that money though, it needs to keep growing like crazy. And it has been growing like crazy. Now. Maybe Open Air is a revolutionary version of its own product in the works. I for one would never write them off, nor would I say that this news is definitely bad for Oracle, their biggest business partner. I think Oracle, which builds data centers better than anyone can, can get lots of takers for its product. It doesn't just live or die depending on opening up, but it is taking on a lot of debt. So if your business is hanging on chat cbt, it just became more precarious. How about that? Which brings me to the most controversial alleged loser. And that's in video. This chip company reported a blowout last quarter and its stock flew up in the morning, only to reverse and ultimately get hammered in the afternoon, finishing well. If it's high, the market needs its biggest stock to do well. That nasty reversal and Its decline from 212 to 1A2 and change has been a nightmare. The numbers seemed to end when we heard that the president once again thinking about letting Nvidia sell chips to China. Right now the company is not including any numbers from China in its projections. So anything that allows the company to sell in China would be huge. And that I think is why the stock went from 176 at its lows today, 282 and change close up $3.67. Now every member of the Magnificent Seven did rally. Amazon moved up 2.5%. That was a report from JP Morgan that did it. That report said that its retail business never been stronger. You know, it's been a while since Amazon was valued for its retail business. For years now it seems like the Wall street only cares about the Amazon web services, which is very important and I believe is doing quite well. Although I keep hearing that isn't growing fast enough. I think the dollars are wrong. It's going just fine. Tesla stock should have been down. If you view this company, period as a car business, we hear some very damning numbers from China that would indicate Tesla's being priced out of the vehicle market over there. But Tesla is now about Elon Musk's vision of self driving cars and robots, which is why it just keeps Growing up 7%. Nearly 7% today. I mean this thing's incredible. Microsoft is quite muted. You just don't hear much about it right now. Even as this business seems to be humming along. Probably because it's connected. Yes, to open AI. Matt has been quiet, but it took off today up 3% on the back of a Wall street report suggesting declines overdone. I agree that. But the biggest winner after Google may be Apple. Remember that Google pays Apple more than $20 billion to be embedded as the default search option your iPhone. We keep hearing that Apple has stumbled. Let me ask you, has Apple stumbled in search? I think a $20 billion check to out Google access your user base, pretty good deal. How about another $20 billion for Gemini for open for a I. Right. In other words, we give the artificial intelligence from Gemini to Apple. Right. And you pay Apple another 20 billion. You could argue that Google won't pay it, but I think many others would love to cut that deal if they don't. Here's the bottom line. We have to recognize that Gemini is the biggest threat to chat cbt we've seen so far. There's simply no two ways about it. Gemini's existential for open air. The company, the emperor better have something better, something to strike back because otherwise the narrative will be that OpenAI has no close. Let's go to Bob in New York. Bob. Hey Jim, thank you for all you do in helping a small investor. Sure, Bob, thank you. Appreciate it. Thank you. My question to you is tractor supply buy, sell or hold? Well, I talked about tractor supply this morning on squawking the street and I felt that I had a pretty good chance to be able to make a comeback here. I know it's down a lot. I'm going to say you want to buy that one, right? Look, we have to recognize that Gemini is the biggest threat to chat GPT that we've seen so far. And ChatGPT better have something up its sleeve to counter otherwise this problem becomes really existential. Oh my. Tonight, due to the government shutdown, there's been a dearth of economic data and with the release of new numbers coming tomorrow. Tomorrow, I'm setting you up for what you could expect then Travis Kelce and Janet Partners are pushing for change at Six Flags. I'm sharing if I think it can be the catalyst that the stock needs because it's been a loser and close viewers know we love the off price retailers. But what about the reit that houses them. I'm checking in with Kymco to get a better read on the situation, so stay with Brainberg Foreign.
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Kimco Realty CEO Connor Flynn
Don't miss a second of Mad Money. Follow Imkramer on X. Have a question? Tweet Kramer hashtag madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com Fox News is now streaming live on Fox One. The voices you trust, the stories you won't find anywhere else.
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Jim Cramer
This is the story breaking right now.
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Kimco Realty CEO Connor Flynn
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Fidelity Representative
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Jim Cramer
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Jim Cramer
Learn more@comcastcorporation.com sports. Tomorrow morning we're going to get a ton of data from the government, but thanks to the shutdown, it's been a long time since we've seen many of these reports. That's why I want to prepare you for what's coming so that you know how to interpret all this new information. First, at 8:30am Tomorrow we get the latest readings from the PPI, the producer price Index, one of the key measures of inflation that's watched by the Fed. When we got the September Consumer Price Index exactly a month ago, the market rallied nicely in response because inflation came in a little lower than expected, even if it was still pretty high at 3%. The PPI report little different. It measures the average change in prices that domestic producers receive for their goods. That makes it more of a leading indicator than the cpi. Typically, we'll get the PIE reading for a given month immediately before the CPI reading, but so far we only had the September CPI reading. It's also confusing for the Producer Price Index, the last report was from August. Like the cpi, the PIE has generally been trending higher since the spring, although it's been more choppy in August, it came in at a very cool 2.6% what Wall street was looking for 3.3%. This time Wall Street's looking for 2.6% producer price inflation. If we get a number or something smaller like that, I think it'll be a huge win for the stock market because lower inflation gives the Federal Reserve more leeway to cut interest rates. But if the pie comes in higher than 2.6, that's the bogey. It will be a negative. Remember though, this is September's data, so it's already very much in the rearview mirror, but it can't be ignored. Also at 8:30am Tomorrow we get the latest month over month retail sales growth reading. Also for September. Retail sales have been all over the map this year. For September, Wall Street's expecting.4% growth. Anything in that neighborhood should be considered a win. Similarly, at 10am tomorrow we get the Consumer Confidence Index reading from the Conference Board, finding another small window into how consumers are feeling. That's something very different from what consumers are doing. This time though, I'm taking more seriously because this is one of the most current readings we're going to get as the Conference Board's a private organization so it didn't stop collecting data during the shutdown. This is all from data collected earlier this month. Might be a good read now. The Consumer Confidence Index has been trending lower since July, flowing from just under 99 to 94.6 in October. This time Wall street is expecting just 93.4. Anything better than that is a positive surprise. Anything worse than that indicates the consumer might be feeling more of a pinch than we thought. The last important group of metrics that we'll get tomorrow are all housing related. At 9am we get a few different releases related to home prices. First, the September reading for the FHFA House Price Index which measures changes in single family home values across the country. Second, we get to September reading for the S and P totality case Shiller 20 city composite home Price Index. That's Caseloader Index for sure, which measures the same thing just for a select group of 20 large metro areas. Lately the housing market's been in bad shape thanks to persistently high interest rates. And don't forget what we need lack of turnover. We need turnover to make this business, the home business do better. Tomorrow I'll be watching to see if the housing market's gotten so weak that we're starting to see more relief on prices. Now that be a Huge win in the fight against inflation. Now the FH fhf, a house price index reading has shown something interesting recently. From April to July we saw four consecutive months with a month over month change was negative. Then we got a surprise positive result for August with a point four percent increase. Remember, that's not what we want to see. The Fed needs lower housing prices, so I'm hoping the September house price index likely come in softer than 0.1% increase that wall Street's expecting. As for this case Shiller index we've seen, this is what's good news. A steady decline in home price growth since early last year. Crucially, year over year home price growth has remained positive. But it's it rose at a 1.6% year over year clip in August. That's down from 7% at its highs last year. Walter is looking for a 1.4% increase again. I got to see something lower. We get one more big housing number tomorrow. It's the October pending home sales reading from the national association of Realtors. Comes out at around 10am this one is pretty straightforward and it's more current than most of the data we're going to get tomorrow. Pending home sales have been erratic this year, but September they were flat month over month. For the October reading that we're going to get tomorrow, Wall Street's expecting a month over month increase of 0.4% in pending home sales. If there's a pickup in pending home sales, that means the housing market's coming back to life, which actually makes it harder for the Fed to cut rates. And what housing needs more than anything are rate cuts. So I'm hoping for a bad number. Now all that said, there are some limitations to the data releases that we're getting tomorrow. Crucially, many of the most important data points will be a bit stale because they're actually September readings that we're just getting now thanks to the government shutdown. So I don't know, I can't be too excited about these numbers. For that reason though, you have to view the older data points though through the lens of what we've seen most recently. While the September retail sales report is useful, you should combine whatever you get from that report were what we heard from Hundred x about a week and a half ago. They said middle income consumers have started lowering their spending intent in recent months alongside lower income consumers who are already showing signs of strain earlier this year. At the same time, we're now getting earnings from the nation's top retailers. We heard from several last week and tomorrow morning alone we get Abercrombie pitch at Best Buy bro Stores, Dick's Sporting Goods and Kohl's. I think anything they say will be much more important than September retail sales numbers. But I may be alone that because the Fed doesn't look look at these companies the way they should. However, the flood of economic data that we'll get tomorrow still matters for one very simple reason. The Fed holds its next Open Market committee meeting on December 9th and 10th, and we don't know what they're looking and thinking about in terms of rate cuts, although Wall Street's gotten a lot more optimistic about a December rate cut in the past week. But at this point, the decision looks like it's still a pretty close call. There are 12 voting members and according to some analysts, we might be looking at a 66 tie. That means almost anything could tip the balance, which is why we are paying such close attention to these figures. If we get more encouraging economic data over the next couple of weeks, we can easily see the odds of a December cut come down just as quickly as they went up. And they went up like a flash. Let me give you the bottom line here. The upcoming Fed decision is why tomorrow's economic data dump is so important even when a lot of these numbers are stale. Now at least you know what you're dealing with and how complicated the Fed is decision is going to be to reach get money's back after the break.
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Kimco Realty CEO Connor Flynn
Coming up, this stock's been riding the downhill of a roller coaster for years. But could it get a boost from new management? Kramer's looking at Six Flags next.
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- [19:41]
Jim Cramer
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- [19:46]
Kimco Realty CEO Connor Flynn
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- [19:48]
Jim Cramer
Off a lifetime wheel alignment when you buy two or more eligible tires. Visit Firestone Collection complete autocare.com for details and more deals. Can Travis Kelce, the three time super bowl champion tight end for the Kansas City Chiefs and the fiancee of the world's biggest pop star, Taylor Swift, turn around Six Flags Entertainment, North America's largest regional amusement park operator? Now if you asked me that question a little over a month ago, I would have said, what are you smoking here? But because you got to believe it or not, this is now a real question investors are grappling with. See, Six Flags as we know it today was created last year by merger of equals between the old Six Flags and Cedar Fair, which was another heavy hitter in the amusement park space. Like a lot of people, I thought the deal was going to be terrific. That turned out to be a spectacularly bad call. Ever since Six Flags and Cedar Fair combined last July, the stock's down a stunning 73%. God, that's awful. What went wrong? In a word, I really Six Flags has been hit with macroeconomic headwinds and some very company specific problems getting a perfect storm of poor attendance. Back in August, the Wall Street Journal ran what I can only call a very depressing profile of the company's cascading series of problems, which resulted in no good, very bad, terrible quarter this past summer. Now, some of it's beyond the company's control. Earlier this year, Six Flags was hit with real bad weather with severe thunderstorms and I've got to tell you, some really brutal heat waves hurting attendance. Some of the locations even had to shut down for multiple days at a time. This happened early in the season, which is when these companies usually sell as lucrative seasonal passes. At the same time, Six Flags has definitely been hurt by the declining health of the consumer, especially the lower income consumer. These regional theme parks are seen as more cost conscious vacation options than say, going to Disney World, which is far, far more expensive. But because Six Flags is more levered to lower income consumers, they feel more painful. The house of when things get tougher so attendance is going to get hit no matter. This would be a bad environment for Six Flags no matter what, but it's not like they've been handling a situation that well. The Journal profile in August mentioned a new ride called Sirens Curse, the Cedar Point amusement park on the shores of east shores of Lake Erie, just west of Cleveland. Forming the crown jewel of Cedar Fair's portfolio, the erotically named Sirens Curse was supposed to be an important new draw, but it ended up breaking down several times throughout the summer. One incident July, left riders stranded over 100ft in the air. No one was hurt, but the story went viral. Not exactly good. Advertisement and another example, it's a bit closer home. Six Flags announced last November that it would tear down a few different rides at Six Flags Great Adventure in New Jersey and replace them with new ones that were to be open in 2026. But this July, the company announced that the replacement rides in the New Jersey park won't open until 2027. We've seen similar delays at Six Flags parks in Massachusetts. Operational issues. On top of that, management hasn't quite delivered on some big promises they made at the time of the merger. While Six Flags has pushed through some layoffs and cost cuts, there was supposed to be this revenue boost from selling season passes for the combined Six Flags Cedar Fair almost a year and a half into the merger and we've we're not seeing any meaningful benefit to the company's attendance or overall business. Whether you want to attribute it to the broader economy or a company specific execution issues, tenants at the parks has just been awful. And August Six Flags reported that attendance for the company, the combined company was down 9% year over year during the second quarter. When attendance is down, fewer people pay up for the fast passes that let them cut line. Just not worth it if the lines are particularly long. At the same time fewer people means weaker food and beverage sales. Put it all together translates to a big earnings and these things are really levered to what happens if you get a lot of people and they're not getting them in. What makes this so much worse? Six Flags has a terrible balance sheet. That's why the stocks really obliterated. Both Six Flags and Cedar Fair went into a merger process with a fair amount of debt and the current Six Flags now has a sky high leverage ratio of 6.3. Anything above 3 considered high any but force very high and anything above that as well. Let's just say precarious now. In August, after Six Flags reported a putrid second quarter, we learned that CEO Richard Zimmerman will be stepping down at the end of the year. He did a good job at Cedar Fair before the merger, but at this point, investors are glad to see him go. Since then, they've been looking for successor. And this is where the Travis Kelsey connection comes in. On October 21, Jana Partners, which is a big activist investor firm, announced it partnered with Kelsey and a couple of other individuals taking 9% stake in six Flags. Now, is Kelsey really that involved in this whole deal? I have no idea. But with The Chiefs at 6 and 5, currently on the playoff bubble and a big wedding to plan with Taylor Swift, I doubt he's got too much time for Six Flags. But it's still a fun story. And for what it's worth, that Janet Partners announcement got plenty of attention. Perhaps because Kelsey's name was included, the Stock popped nearly 18% on the day that the news broke. Unfortunately, those gains were short lived in large part because a couple of weeks later, Six Flags reported a dismal third quarter. The good news? Tennis was up in the third quarter, albeit only about 1%. The bad news was everything else. First. Six Flags said that after strong performance in July and August, attendance trends moderated in September. And for the five week period ended November 2nd, attendance was down 11% year over year. That's heinous sales and earnings before interest, taxes, depreciation, amortization, both missed expectations. And for the second quarter in a row, Six Flags slashed its full year EBITDA forecast. That is brutal. Now this morning we got some interesting news though. Six Flags is bringing in John Riley from Palace Entertainment US as the next CEO, effective December 8th. Before that, he worked at SeaWorld. He's got some terrific turnaround experience in the theme park business. Janet Partners put out a statement in support of the hire. So back to the original question. Can Travis Kelsey save Six Flags? Obviously, it's a little tongue in cheek. The real question is whether Janet Partners, in combination with Kelsey, can help save Six Flags. And the answer? Only if the company lets him. Chad has got a great track record. Maybe Kelsey can rope in Taylor Swift's legion of fans on top of Chiefs fans. Given that they're like that, they like the new CEO, I'm feeling a little more optimistic about Six Flags, especially with gasoline prices coming down hard. That said, it certainly won't be easy because right now this company is a disaster. Before they can turn anything around, they desperately need to clean up the balance sheet and maybe close some more underperforming parks. Here's the bottom line. While Six Flags new management should be able to turn things around with some help from Jan and Partners and Travis Kelsey, I wouldn't stick your neck out in this one unless you're willing to be incredibly patient because it's going to take a while and there's always a chance that the company itself can't make it if the weather's bad or the parks keep having operations operational issues. Let's take some calls. Let's go to Michael in West Virginia. Michael. Oh yeah, Jim, Mad Mountain Money Mike here. How are you tonight? I am doing well, Mad Mountain. How can I help you? Well, I've been reading this wonderful book how to make money in Any Market Using it in this tricky market. Back in July I needed some caffeine. I bought an OK cup kdp. Jim, am I in good shape there? Yeah, I think you are. They're cleaning the thing. Oh, by the way, thank you for those nice comments about how to make money in market. They're doing some good things. The stock is down huge yields 3.3%. I think that's a safe field. I would actually join you in that. We did a piece saying that maybe this is finally the bottom and I think it very much is. And thank you for the kind comments. Right. I'm still optimistic Six Flags can turn things around, but they need to lean into the support from G Jana Partners and from Travis Kelce in order to make things happen. Now much more made money at it. Last week we covered some dividend stocks that were worth watching in a volatile tape. And with an over 5% yield, does Kimco fit the bill for your portfolio? I'm checking in with the CEO. Then you can't forget what really slays bull markets. I'll reveal what it is and why I worry we might be getting near there. And of course oil quals rapid fire in tonight's edition of the Lightning Round. So stay with Creamer. Last week I spotlighted a tree of high quality companies with dividend yields north of 5% because look, it's a tricky environment. You could do a lot worse than owning stocks to consistently generate that kind of income. Even though the market roared today, I still like the idea of dividend protection here. It's not always going to be as great. This today. Which brings me to Kimco Realty, this shopping center real estate investment Trust with a 5.1% yield. Late last month Kimco reported a nicely better than expected quarter raised its full year funds from Operations forecast. That's the REIT equivalent of earnings. However, the stock's been drifting lower ever since to the point where it's now down nearly 13% for the year. Could this be a buying opportunity? Let's check in with Connor Flynn. He's the CEO of Kymco Realty Corporation. Right out. Welcome back to.
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Kimco Realty CEO Connor Flynn
Great to see you. Thanks for having me.
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Jim Cramer
All right, so people have to understand, I do get to speak to the guest, period ahead of time. Connor, you know, I think that you're absurdly priced. And the reason I say that is because I'm looking at the fundamentals. I'm looking at what you're doing with your own stock. I'm looking at who your tenants are. So to me, what's wrong is the stock price.
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Kimco Realty CEO Connor Flynn
Well, I appreciate that. I mean, at Kimco, we're very focused on what we can control. And if you think about beating and raising three times this year, buying back stock, raising the dividend, you know, the inflection point in Q3 is interesting actually, because that's when occupancy ticked up, not just for Kymco, but the whole sector. And you're seeing that supply and demand set up where it really benefits high quality retail owners. And Kimco is well positioned for that change. Where you're going to see, I think, fund flow shift at some point. And we're primed for growth. You know, we're built for cycles, but we're primed for growth.
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Jim Cramer
Well, let's go over first. You know, I agree with that, but I want to dig deeper, go over first. The way things have traded in REITs in that once they catch fire, they move almost like tech stocks.
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Kimco Realty CEO Connor Flynn
Yeah, it's like tides. Right. The fund flows have so much impact. Right. And so when you've got 80% of fund flow dictating share price, when you know, 90% of all rates are trading out of favor and like below book value, you focus on what you can control. You've got. We got an A minus balance sheet, which we've got. We were one of only two shopping center REITs to do 5% earnings growth last year. We're on the way to do 6% this year. So when the fund flows change, there's going to be interest in resilient cash flow and where the consumer is focused on spending money. And I think that's where Kymco is perfectly positioned. What's working today is value proposition convenience. And that's where Kymco is at the Intersect.
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Jim Cramer
I like that you rebut the Things that are considered be negative. For instance, the idea that E Commerce is going to destroy you.
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Kimco Realty CEO Connor Flynn
That was the first hurdle we had to clear. I think about a decade ago, you saw Wal Mart finally announcing that they've made E Commerce profitable, which is Wal Mart. You know, obviously taking a lot of time and effort and money to make that profitable. And why is it profitable for them? They're delivering from their store base. They're using their physical tools to go and deliver what the consumer wants and they're reinvesting in the store base. And that's what most of our retailers are doing today. If you look at the top 10 e commerce retailers, they're all Kymco tenants in our shopping centers.
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Jim Cramer
Absolutely.
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Kimco Realty CEO Connor Flynn
It's. It's clearly the vision of the future is utilizing your store base to deliver what the consumer wants and needs at their option.
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Jim Cramer
All right, so then the next one. Well, because I'm going right down. Because that's what you do when you try to figure out why it shouldn't be a spot. Well, hold it. Party City. Joanne. Big lots, Rite Aid. Wow. Danger, danger.
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Kimco Realty CEO Connor Flynn
That was the overhang at the beginning of the year. Right. That's where, oh, the retail apocalypse is coming. You know, all these bankruptcies, these were what we call chapter 22. They've filed bankruptcy before, they're filed bankruptcy again. And literally all of those hit in Q1. And we're doing 6% earnings growth this year and the backfills of those spaces. And that's the supply and demand dynamic that I'm talking about. You know, on average for 40% higher end on the backfill tenants. And it's a better credit tenant. It's TJ Max, it's Ross, it's Burlington.
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Jim Cramer
It's funny, it's like all the value.
- [31:59]
Kimco Realty CEO Connor Flynn
It'S like where everybody's shopping.
- [32:02]
Jim Cramer
What I was going to say was perhaps because I am doing straw men here, perhaps it's a concentration of stores that I wouldn't like and I don't like their stocks. Right.
- [32:12]
Kimco Realty CEO Connor Flynn
I know.
- [32:12]
Jim Cramer
It's. Except for it's every stock that I like. I mean, it really is. But TJX is one of the largest stocks in my Travel Trust and Ross, Burlington, Whole Foods, of course, Amazon. So it's obviously not that. Then people say, well, wait a second, you happen to have some real estate that's actually apartments now that must be hurting that.
- [32:33]
Kimco Realty CEO Connor Flynn
I mean, the nice part about our business is we have all this embedded value that we're unlocking. So parking lots for us, we think of as like future upside. And that's where we're entitling the right to build apartments. And so down by where you're from in Suburban Square in Ardmore, Pennsylvania. Oh, I know we're going to deliver that next year and it's going to be an absolute amazing project where again retail is the amenity base because that's the shopping center and it enhances the apartments because think about an apartment building, what do they try and do on the ground floor? Maybe they're able to offer grocery, maybe they're able to offer a coffee shop, maybe a fitness user. We have typically on average all of those and 100 other tenants and shopping center.
- [33:10]
Jim Cramer
So then perhaps people might say, and this is the last of the straw men, there's overbuilding in the strip mall business.
- [33:17]
Kimco Realty CEO Connor Flynn
So 13 years of no new supply point, 3% of existing stock under construction. There's more office being built than retail today.
- [33:25]
Jim Cramer
That's incredible. And I know that there's always these, look, where is a ready care clinic going to go, right? I mean what happens when all the drugstores that are closed. Closed are, are retenanted? Then there's nothing left.
- [33:39]
Kimco Realty CEO Connor Flynn
So that's what we see actually is the resiliency of the economy today. Like traffic is up year to date. You see small business formation up. That's all those small businesses that are filling in in between the grocery store and the off price player like TJ Maxx or Marshalls. And you're seeing urgent care, pediatric urgent care, dentists, doctors, you name it. And it's all about convenience. And most people live near where the shopping center of Kimco's ownership is and that's where it's convenient to shop.
- [34:06]
Jim Cramer
Now you are a great operator. So I will ask this question. You would know, unless you were a great operator. What's the feeling for the consumer? What's the feeling for the Christmas home?
- [34:14]
Kimco Realty CEO Connor Flynn
So most of them are focused on value, right? Making their dollar go further. And there has been a lot of like in terms of impact of inflation on the lower stem of graphic tranche. And so what we're trying to focus on is offering the consumer value and they come to a Kymco shopping center. And that's where you're seeing that dynamic.
- [34:30]
Jim Cramer
Regardless of the holidays.
- [34:31]
Kimco Realty CEO Connor Flynn
Exactly. So like it's essential goods and services, right? That's what Kymco delivers. So maybe you're buying your turkey for Thanksgiving at a Whole Foods or a Trader Joe's or Sprouts, you name it. All of the grocery anchors that we have. But then you're also probably going to shop at TJ Maxx for maybe some Christmas gifts that are, that are offered on value. And that's the beauty of our shopping centers. You can do the essentials plus plus and I think that's where we're well positioned.
- [34:55]
Jim Cramer
The one last confusion that I have is, is that I've seen the, the REITs do badly when rates go higher, but that's not happening.
- [35:03]
Kimco Realty CEO Connor Flynn
Yeah, it's one of those, it's the long end of the curve.
- [35:06]
Jim Cramer
Right.
- [35:06]
Kimco Realty CEO Connor Flynn
That most people like, you know, their, their bonds are priced off of. So you're going to probably start to see maybe some shifts in interest rates maybe if the Fed chair in time changes and they take a different tact.
- [35:16]
Jim Cramer
Right. That could be a catch reasons like people are buying gold and selling these because people feel that there's going to get very easy because of President Trump. I would come back and say in the ultimate group defense is every time it's been there, it's been a huge bump.
- [35:31]
Kimco Realty CEO Connor Flynn
I mean there's not many sectors out there with virtually no new supply pricing, power, earnings growth. And the one disconnect is your cost of equity. And so when that comes back, all of a sudden you should have external growth layered on top of all the this organic growth. Because we've got in our sign but not open pipeline $71 million of NOI, which is close to 5% of our NOI sitting, waiting rent commencement, meaning like it's not flowing yet. So that's visible earnings growth in the future. That's literally just sitting there about to come online in 26 and beyond. So we feel pretty good about our setup that hey, focus on what we can't control. Execute like crazy and the tides will change. And Kim, go back in favor.
- [36:08]
Jim Cramer
I think everyone, especially people who are in their, you know, 56,070 should be thinking about a 5% yield to replace a high flyer. So I want to thank you for coming on explaining everything really well. That's Connor Flynn, CEO of Kimco Realty. Kim, what can I say? I'm a huge believer. It's right now. Money's back here.
- [36:30]
Kimco Realty CEO Connor Flynn
Coming up, Cramer takes your calls and the sky's the limit. It's a fast fire lightning round.
- [36:37]
Jim Cramer
Next. Will be get your calls. Guess what? Christmas came early. There's a special offering happening right now to join the CNBC investing club. You get my top takeaways and every travel trust move of course before I make it scan the QR code or go to cnbc.com/kramer Club. And now it is time. It's time for the light round. Kids. Best friend in the stock set of buy my buys the cold time. My Stafford is going to play this out and then the lightning round is over. Are you ready, Ski Dad? Time for the light round. Cameras. Let's go to Kim in New York. Kim. Hi, Jim. I'm so excited to speak to you. I'm a new club member and I'm loving it. I bought this aerospace stock in 2014.
- [37:28]
Fidelity Representative
For $31 a share and today it's $200.
- [37:32]
Jim Cramer
But revenue is up 14% year over year. So should I sell or hold the company is how net Aerospace. Okay. I want you to hold Helmet. I think it's probably the best performer in the industry. It's going up even as its major. It's really. Its major customers are not doing that well. Imagine what happens when the customers start doing well. I say hold on to Helmet. Let's go to Leslie in California. Leslie. Jim, I have a subscription to the Journal of Portfolio Management, so I'm a real academic guru. But making money in any market is better than that subscription. You're very kind. Technology group. Okay. Marvell is a winner when we talk about this non Nvidia who makes chips for themselves kind of thing.
- [38:19]
Fidelity Representative
Thing.
- [38:19]
Jim Cramer
And Marvell is a very good stock. There's a lot of takeover fluff in it. I want to wait for that fluff to be taken out of it. I'm not going to recommend the stock up $6. Let's go to Jack in California. Jack. Hey, thanks for all the good advice on Apple. You've made us all a lot of money. I appreciate it. You're very kind. Thank you. The stock I have is a wild stock. Over the last two years, gone from 40 to 170, back to 90 when the short sellers got after it. Back to 180. Everybody loves it on Wall Street. I can't understand why it's not higher. They just finished a big deal with Apollo. Ft. I like it too. It's Aviation. But remember, Aviation is not doing as well as the companies in travel. And that's what's hurting ft. I want you to hold on to it, though. Let's go to J and Architecture or Jay. Booyah, Kramer. Booyah. Hey, Jim. I have this stock that's been on my watch list for quite a while now. I missed the most recent parabolic swing. The company has triple digit revenue growth quarter after quarter. They have robust margins. My stock is Astera Labs. You know, look, it sells at 82 times earnings. I mean there's just, it's the, it's the most highly valued stock in the entire stock market. I cannot get behind at these prices, even though I think it's a very, very good company. Let's go to Sam in Illinois. Sam. Hi Jim. Thank you for taking my call. My stock tonight is Jacobs Solutions. Okay. Let me just say right now, Jacob Solutions, I think was incorrectly, incorrectly valued last week when an analyst came out and said that they did not do the number and did not do the forecast. That was not true. Bobata did the number and he gave a good forecast. And that's why I think the Goldman Sachs recommended today. I can't speak highly enough about both Jacobs and the price that it's at. I would buy this thing at 132. Let's go to Mark in Arizona. Mark. Jim, warm holiday booyahs from the desert. Thank you. You too. Thank you for that. What's going on, Jim? There's been a landslide at Iron Mountain and I'm getting crushed. What am I going to do from here? Yeah, and people are really trying to rethink that. Stocks being rethinked on the fly and in a very negative way. I think it's got a 4% yield now. That'll probably hold, but if it rallies at all, I do want you to sell it. I just don't see the upside. Let's go to Anthony in Florida. Anthony. Booyah. Jim. Oh yeah, Anthony, what's up? I have ticker symbol RK LB. I've been a bio since $6. I know in your book that you wrote how to make money in any market. You talk about speculation, but doing it wisely.
- [41:15]
Kimco Realty CEO Connor Flynn
I believe this company has a lot of potential.
- [41:18]
Jim Cramer
But. Okay, look, I have to tell you, I think this stock is very, you know, as these stocks go. I'm not going to call it inexpensive. This is spec. But as specs go, I like it at these prices. How about that? I think that's a fair way to put it. Let's go to John in Virginia. John? Jim, I'm asking about one of the leading companies in the nation's capital. Who's Alan Hamilton, who's Alan Hamlin? Got hurt very badly by Doge. Now Doge has since moved on, so to speak, and I think all the way down here it sells at an incredibly low multiple. I'm going to take the other side of the sellers and recommend the stock. Let's go to Nathan in Texas. Nathan, Jim, how are you, buddy? I am good. How about you, Nathan? I'm great. I'm great. It's good to talk to you. IMCR, ImmunoCare. Yeah. You know what? I'm going to have to. I got to look at. I have to look at what the heck going on there because that just had one of the biggest moves. We're going to wait on that. Let's do some work on that. Let's go to David in California. David. Hey, booyah. Kramer from south end of the Golden State. Love you, man. All right. Good to have you on the show. Thank you. Neptune Insurance Holdings. You know, the only insurance company I recommend is Chubb. I am intrigued by this lemonade. I read another good report about it today. I do think that it's become the way for younger people to trade the whole complex of insurance. And it's up another 5 today on a very positive recommendation. It's probably not done. Let's go to Kirk in Texas. Kirk. Hey, Tim. Kirk. Hey, Kirk. What's up? Oh, so I was watching the market just rip higher today and I noticed that Spotify was down by 2%. That made no sense to me. I looked at Spotify too. I don't understand why it's not coming back. It's a great subscription business and I think you ought to buy the stock. And that, ladies and gentlemen, conclusion of the Lightning round.
- [43:18]
Kimco Realty CEO Connor Flynn
The Lightning round is sponsored by Charles Schwab. Coming up, there's one big factor that could put this bull market in jeopardy, and it's as simple as supply and demand. Kramer's explaining next.
- [43:38]
Jim Cramer
Boo yah for the emperor of Kramerica, honorable James J. Kramer. You got me jumping around my office right now. Thank you so much for all you do for us. I enjoy your show and I find it very entertaining and informative. I watched your first ever episode of Mad money back in 2005, and I've been watching every single episode ever since.
- [43:57]
Kimco Realty CEO Connor Flynn
Don't miss Mad Money every night at 6pm Eastern. Plus, join the CNBC investing club and stick with Kramer around the clock.
- [44:14]
Jim Cramer
Never forget what really slays bull markets. Supply. Once we have more supply than we can handle, we're headed straight to the slaughterhouse. And. And I worry that with lots of insider selling in a slew of IPOs, we could be getting there. The biggest source of supply is underwritings. According to data from Renaissance Capital, the IPO research firm, we've had 194 IPOs this year, up almost 50% from the same date last year. These new deals amount to total proceeds of $36 billion, which is already up from the $29 billion total from all of last year. Not monumental. And much more than $142 billion worth of IPOs we had in 2021. A bear market has many fathers, but I tell you that the oversupply in 2021 contributed vitally to the bear market in 2022. Still, these new deals are worth watching because many of the biggest IPOs took place earlier in the year, which means insiders can now sell their stock. And again, that's a huge hidden source of new supply. That supply was locked up when the companies came public. The quality of some of this year's largest deals is certainly questionable, at least as judged by the market. The largest deal, a $1.75 billion offering from Venture Global liquefied natural gas infrastructure play in January, has been very disappointing. The company raised 1.75 billion. At $25 per share, it's now just over 7. That's disastrous. Corey raised 1.5 billion in four $40 per share. With the stock down 73 and change, you can still call that a win, although this thing's way down from 187 at its peak over the summer. Figma, the enterprise software company, raised 1.4 billion. At 33, it's now at just over 35. This one got up to nearly 143 at one point on its second day of trading. For losing most of its value, the definition of a round trip, SailPoint raised 1.38 billion. This is a cybersecurity identity stock that came public at 23, and it's now down to $18. Rounding out the top five, Circle Internet Group raised 1.2 billion. At 31, and it's at 72. The biggest winner in the group. Circle is a digital asset story, and if companies ever choose to do business using crypto as an actual currency, could be an even bigger winner. But even this one is way down from its highs. Overall, the IPO Class of 2025 is a decidedly mixed bag. How about the insider selly? Well, we just learned that Dylan Field, the CEO of Figma, sold $113 million shares. A bunch of Circle insiders sold stock, but not huge amounts. A host of executives sold stock for SailPoint, including CEO Mark McClain, who unloaded $10.5 million worth of shares. Michael Entrader, the CEO of Core Weave, has sold about $84 million worth of stock since its lockup expired, which is admittedly a very small part of his holdings. Though. Why are these insider sales so important? Important because we're always looking for signs that we might be on course for a dot com style scenario where insiders were dumping stock furiously because they knew that their stocks were ridiculously overvalued and they would never make the rosy projections. They knew the Internet was not turning out to be as bountiful as they hoped. We have nothing like that now, although we still have too many deals for my taste. Let's leave it like this. You get too many deals, you get too much real turmoil. We don't have that yet, but stay vigilant while we're getting too much new supply and it makes me nervous. It's still a long way from what we saw during the 2021 or the dot com collapse. I like to say there's always bull market somewhere and I promise you I'd find it just for you right here on Mad Money. I'm Jim Cramer. See you tomorrow.
- [47:48]
Fidelity Representative
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of cnbc, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kremer'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 madmoneydisclaimer it's time to.
- [48:28]
Jim Cramer
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Kimco Realty CEO Connor Flynn
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Jim Cramer
Off a lifetime wheel alignment when you buy two or more eligible tires. Visit firestonecompleteautocare.com for details and more deals.