Mad Money w/ Jim Cramer – Episode Summary (June 11, 2025)
Host: Jim Cramer
Guest: Jason Holler, CEO of Cardinal Health (at [29:14])
Market Overview
Jim Cramer opens the episode with a critical analysis of the current stock market landscape, labeling it as a “year of magical thinking.” He emphasizes the prevalence of speculative investments, particularly in sectors where companies exhibit minimal revenues but have skyrocketing stock prices due to hype and investor optimism.
“[02:05] Jim Cramer: This is the year of magical thinking. And boy, is that year ever paying off.”
Focus on Speculative Sectors: Quantum, Space, and Nuclear
Cramer highlights three main sectors driving this speculative frenzy:
- Quantum Computing
- Space Technology
- Nuclear Power
He notes that these sectors are attracting significant investor interest despite many companies lacking substantial earnings or revenue streams.
“[04:20] Jim Cramer: Today, the real action is in the stocks of companies that make no money whatsoever.”
Quantum Computing Stocks
Cramer delves into the quantum computing boom, triggered by Nvidia CEO Jensen Huang's optimistic statements about the imminent applicability of quantum computing.
“[05:15] Jim Cramer: When Jensen Huang said quantum computing is reaching an inflection point, it sent shockwaves through the market.”
He observes a shift where investors are moving funds from established tech giants like Nvidia to speculative quantum computing stocks, driven by the potential for future breakthroughs.
“[06:30] Jim Cramer: People are selling in Nvidia and buying quantum stocks. It’s a clear sign of the speculative bubble.”
Nuclear Power Focus
Turning to nuclear energy, Cramer discusses the resurgence of interest in nuclear power as a clean energy source. He spotlights Oklahoma-based company OKLO, which is making significant strides despite financial losses.
“[08:10] Jim Cramer: OKLO is toiling for 12 years to get its form of nuclear power endorsed by the government. No earnings? No problem.”
Cramer praises their strategic stock offerings to raise capital, enabling them to continue operations and pursue government contracts.
“[09:00] Jim Cramer: Their $4 million stock offering is smart – it keeps the ball rolling.”
IPO Boom Predictions
Cramer predicts an imminent IPO boom reminiscent of 2021, fueled by companies in the space and defense sectors with innovative ideas, despite lacking immediate profitability.
“[11:00] Jim Cramer: We're about to have an IPO boom that rivals 2021, driven by real ideas in space and defense.”
He underscores the market’s appetite for speculative investments, which divert funds from more traditional and profitable companies like Nvidia.
Caller Interactions
Gary from Alabama
Gary expresses heartfelt gratitude to Cramer for his guidance, citing how Cramer's advice helped him pay off his house.
“[08:50] Gary: Jim and Jensen helped me pay off my house. You've changed my life.”
Cramer responds warmly, emphasizing his commitment to helping listeners make money.
“[09:01] Jim Cramer: I just want you to make money.”
Tyrone from Virginia
Tyrone seeks Cramer's opinion on Coca-Cola Consolidated (ticker: COKE) following a reverse stock split.
“[10:20] Tyrone: What’s your opinion on Coca-Cola Consolidated?”
Cramer advises caution, highlighting the company's strong distribution business but noting it lacks the yield investors may seek.
“[10:38] Jim Cramer: It’s a good company. Hold on for the long term.”
Craig from Missouri
Craig inquires about Kroger stock, mentioning his intention to invest. Cramer advises a methodical approach, suggesting buying in increments rather than all at once due to the stock’s current decline.
“[11:00] Craig: I’m entering a position at Kroger stock. Your thoughts?”
“[11:29] Jim Cramer: Kroger is rolling over at 13 times earnings. Buy a little, wait for it to come down further.”
US Manufacturing and Automation
Cramer shifts focus to the administration’s push to bring manufacturing back to the United States, emphasizing the necessity of automation to counter higher domestic wages.
“[15:15] Jim Cramer: If you want to manufacture in America, you’ve got to embrace automation.”
He examines Rockwell Automation, detailing its recent stock performance and strategic moves to lower costs and improve earnings despite past supply chain issues.
“[17:25] Jim Cramer: Rockwell Automation’s stock is up 51% from its April lows. They’re lowering their cost base for stronger earnings growth.”
Cramer notes positive analyst upgrades, highlighting improved earnings forecasts and strategic benefits from tariff regimes.
In-depth Interview: Jason Holler, CEO of Cardinal Health
Cramer conducts an insightful interview with Jason Holler, CEO of Cardinal Health (CAG), discussing the company's impressive stock performance and strategic initiatives.
Key Discussion Points:
-
Resilience in Pharmaceutical Distribution
- Hale the consistent and predictable demand in the pharmaceutical sector.
- Investment in core distribution services to enhance customer experience.
-
Growth Through Mergers and Acquisitions
- Aggressive investments in M&A, particularly in the fast-growing specialty segment.
- Expansion into niche markets like nuclear at-home solutions and optifreight.
-
Winning Major Accounts
- Securing partnerships with discerning clients like Publix through exceptional customer service.
- Growth driven by new business accounts contributing significantly to revenue.
-
Specialty Distribution Profitability
- Explaining the 90/10 rule: 90% of volume from generics but only 10% of costs.
- Achieving economies of scale that support higher margins despite low per-unit prices.
-
Impact of Healthcare Policies
- Active engagement in policy discussions to safeguard their essential role in the healthcare supply chain.
- Confidence in maintaining margins despite potential regulatory changes.
“[29:27] Jason Holler: Our core distribution is strong, and investing in specialty has driven our growth.”
“[34:22] Jim Cramer: Jason, you are health care's most trusted partner. Congratulations.”
Lightning Round Highlights
In the fast-paced Lightning Round, Cramer provides brief insights on various stocks based on callers' questions.
-
Brad from Connecticut on Biomarin: Cramer expresses skepticism about the orphan drug model's sustainability.
“[35:56] Brad: What’s your take on Biomarin?”
“[35:58] Jim Cramer: I'm getting tired of the orphan drug model. It’s not working.”
-
Brian from Pennsylvania on Arlo Technologies (ARLO): Cramer admits unfamiliarity but commits to reviewing the stock.
“[36:15] Brian: Thoughts on Arlo Technologies?”
“[36:34] Jim Cramer: I need to give that a solid look. You stumped me.”
-
Jonathan from Pennsylvania on Union Pacific (UNP): Cramer recommends it as a strong buy, citing its lagging performance and potential.
“[37:15] Jonathan: Impact on Union Pacific?”
“[37:19] Jim Cramer: I think it’s good for them. Union Pacific is a buy.”
-
Jaden from Washington on GitLab (GTL): Cramer expresses disappointment, preferring established enterprise software like Oracle.
“[38:05] Jaden: Thoughts on GitLab?”
“[38:24] Jim Cramer: I was prepared for your disappointment. I don’t want enterprise software right now.”
-
David from Georgia on Ars Pharmaceuticals (AR): Cramer supports their innovative epinephrine nasal spray.
“[38:36] David: Thoughts on Ars Pharmaceuticals?”
“[39:08] Jim Cramer: I like their model. Great flyer. Someone needs that technology.”
-
Cedric from Illinois on NewScale: Cramer advises caution, suggesting waiting for better entry points.
“[39:30] Cedric: What’s your take on NewScale?”
“[39:49] Jim Cramer: It’s really high. Wait for the offering after what happened with OKLO.”
Momentum Holdings Analysis
Cramer provides a comprehensive analysis of Momentum Holdings, a defense contractor recently merged with Jacob Solutions.
Key Insights:
-
Business Structure and Operations
- Two main divisions: Global Engineering Solutions (60%) and Digital Solutions (40%).
- Focused on defense, intelligence, and space sectors with substantial government contracts.
-
Financial Performance
- Recent quarter showed modest revenue and earnings growth, leading to a stock drop despite positive results.
- Strong backlog of $45 billion in contracts positions the company for future growth.
-
Market Position and Growth Prospects
- Deep roots in federal contracting with stable relationships and high barriers to entry for competitors.
- Plans for 4-6% compound annual revenue growth from 2028, supported by new contracts and geopolitical tensions.
-
Valuation and Risks
- Priced attractively at less than 10.5 times earnings estimates.
- Concerns about private equity overhang, as over 35% is still owned by private investors, potentially leading to share unloads.
“[40:29] Jim Cramer: Momentum sells for less than 10.5 times this year's earnings estimates. It’s a compelling valuation.”
“[47:50] Jim Cramer: Momentum is worth keeping on your radar. It’s been forgotten, but they deserve attention.”
Closing Remarks
Cramer wraps up the episode by reiterating the potential of the speculative sectors under discussion and encourages listeners to remain vigilant and strategic in their investments.
“[40:29] Jim Cramer: Momentum is definitely worth keeping on your radar. It’s kind of been forgotten. No one's focused on it. They should.”
Notable Quotes
- Jim Cramer: “I just want you to make money.” ([09:00])
- Gary from Alabama: “You and Jensen have changed my life, literally.” ([09:23])
- Jason Holler: “We are health care's most trusted partner.” ([29:16])
- Jim Cramer: “Rockwell Automation is a winner from tariffs that forced companies to move their manufacturing back to United States.” ([19:35])
Conclusion
This episode of "Mad Money w/ Jim Cramer" offers a deep dive into the speculative segments of the stock market, underscored by strategic analyses of companies like Rockwell Automation, Cardinal Health, and Momentum Holdings. Cramer's blend of market insights, coupled with interactive discussions with callers, provides listeners with a comprehensive understanding of current investment opportunities and risks.
Disclaimer: The content above is a summary based on the provided transcript and is intended for informational purposes only. It does not constitute financial advice.