← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 7/11/25
00:44:18
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]
Jim Cramer
Which are America's top States for business. Get all the data and complete state by state analysis.
- [00:07]
CNBC Ad Voice
See how your state measures up. America's Top States for business now on topstates.cnbc.com.
- [00:39]
Jim Cramer
Hey, I'm Kramer. Welcome to Matt Money. Welcome to Craig America. I'll be my friends just trying to make you a little money. My job is not just to educate, but to entertain, to teach you. So call me at 173cnbc or tweet me. Tim Cramer. As the market gets weighed down by a flood of new tariff announcements, Dow slipping 279 points. Estimate the climbing point 3. 3%. Nasdaq dipping point to 2%. We have to remember that stocks are holding up incredibly well versus what you might have expected a few months ago. At these levels, the market remains pretty overbought. You know I don't like that. But all of the new tariff threats barely dragged us down today. What we're seeing here is resilience, something it stems from tremendous demand for stocks for individual investors, which is something we share with an assembled crowd of CNBC investing club members in our annual meeting earlier today. The individual investor basically is so far undeterred by the harsh words and the tariff noose tightening that has now become commonplace. So with that in mind, why don't we check out what's on tap for next week? Remember, we're headed right into earnings season on Monday, though we'll have to sit through those new tariffs and penalties and another half dozen sovereign states always intrigued by how few countries seem to understand that it might be actually worth it to cut a deal now versus later that we know. Look, we're going to have new tariffs to study as the White House never sleeps. And we expect to hear something draconian about Russia. Whatever draconian counts as these days, it usually affects the oil market. You know, I think oil is going lower. Tuesday it starts. And are you ready for earnings season in full swing with the financials starting things off as always. Hey, they were terrific last time around, but the economy's got a little weaker since. So we're going to have to hear if there's any pickup in loan losses or slowdown in spending. The star of the show is always JP Morgan and it's Jamie Dimon, the CEO business 2006 now. But I care tremendously actually about charitable trust holding Wells Fargo. Now that their asset cap problems are behind them, who knows how high CEO Charlie Scharf can take an unfettered Wells. One thing's for certain, it doesn't Matter what CEO Jane Fraser says at Citigroup, everyone's going to raise price targets and praise the bank anyway. Yet you know what the most exciting story might be? I think my BlackRock. Yes, the stock that caught fire recently even after many investors had lost faith in it. That never made sense to me. BlackRock's the largest asset repository in the world and as a new infrastructure component that I sure wish I could get a piece of. It's only for four. One case. I bet CEO Larry Fink will tell a very positive story more than justifying the stock's recent breakout. On Tuesday morning we get this consumer Price Index report. Now I know the President thinks it's time for the Fed to cut rates, but the Fed wants to wait to see. Look, they got to ensure that inflation won't come back. It can. This is CPI number might be flatter for the Fed to stand pat as we're only just beginning to see the impact of the tariffs. Wednesday we hear from the two big investment banks with Goldman Sachs and Morgan Stanley. I think both what terrific numbers. Even better stories now that the mergers and acquisition business has exploded in the IPO markets. Warm bordering on high. What a change from even two months ago. And these two companies are going to reap outsized benefits. You know I like them both. My travel trust owns Goldman Sachs, my alma mater from the 80s. Next we know the semiconductors have become the hottest group in the market as the torch has been passed from software to hardware. Will that extend to asml, the Dutch semiconductor capital equipment company with an effective monopoly on its stage of the supply chain. We could be in for another round of semi buying if the numbers from this one are good. Let me ask you some. Why is bank of America stock still just selling at 13 times earnings? The franchise been putting up consistently terrific earnings. Brian Moyes doing a great job. I think the stock's cheap because of the relentless selling from Berkshire Hathaway. One day Berkshire will finish selling and when that happens you'll be paying a much higher price to earnings multiple for this fine bag. My advice, don't wait for them to finish. There'll be good quarter. Johnson Johnson kicks off pharma earnings season on Wednesday and I think once again the company will not be rewarded for its consistency or its originality. And because there's still the sort of the talc lawsuits hanging over it. I don't mind JJ fighting the plantifier but it sure puts a damper on the stock. Thursday morning we find out about retail sales and I am very concerned about a Slowdown in retail. As the uncertainty of Washington seeps into Main Street, I suspect that weak numbers have already started. Then one of my absolute favorite companies, medical device maker Abbott Labs, reports. And you know I always like to tell you which companies tend to be misinterpreted in a negative way during the earnings season. Abbott's a textbook example. It bothers me, but there are always sellers who claim to be disappointed. So if you don't own any Abbott, may I suggest that you wait to see the numbers. Wait for the stocks opening, wait for the sellers to appear. Patience is a virtue with abt. If you want to know a stock that's too cheap relative to its growth rate but nobody talks about it anymore, why don't you check out the stock of PepsiCo? It trades at a stalling low 17 times earnings. I mean, what gives? Well, how about GOP Dash 1 drugs? How about RFK Jr. At Health and Human Services who despises junk food even as he seems to embrace junk science? How about the desire to stay healthy? All these have weighed on PepsiCo stock, of course. Don't forget they own Frito Lay. Maybe it's finally overdone. I don't know. It's a tough industry all of a sudden. After the close, we're treating to the most delightful conference calls. Netflix. First thing, I have a dearth of things to watch right now. It's really starting to bug me. So I'm going to be listening to the conference call in part because they talk about all the great overseas programming. I get some terrific ideas of what to watch when I get home that night. The bar is very high for Netflix, which will have to tell us how their ad tier is going, how Squid Game did and and how NFL Christmas streaming football advertising is looking. If Netflix doesn't deliver an outstanding number though, I got to tell you, there'll be an awful lot of downside. We have so many price target boosts even to today, I'd be a little nervous even as I expect a good quarter. Then on Friday, there's American Express, which is another stock that tends to sell off when it reports no matter how good the numbers are. That's why I always tell you to wait until the selling subsides. If you went in this time, so different, I don't think what the sellers. I don't know what they're thinking about. The sellers markets best. They've been wrong for 150 points. Look at that stock. Listen to the call. This company is a unique, beloved product that young people cherish. What's not to like Steve Squearey, CEO, one of the great ones. Well, he'll have a terrific call and he will. You know what he will tell us about why American Express Card has now become not a product of a different year, our parents here, but a product of everyone. Everyone wants to think it's prized. That stock's going higher now. The industrials have been on fire, the part of this broadened out bull market. And one of my absolute favorites is 3M, which is beginning to remind me the old 3M where the question was simply how big the beat will be. CEO Bill Brown is crushing it. And this one's been greeted with buying both before and after the conference call. Finally, don't say I didn't tell you so. We've been championing Charles Schwab from the days when the doubters cast dispersion on the balance sheet. That was 25 points ago. They've been silent of late, but I think the short sellers like to come out and color the opening of trading. When Schwab opens, I say be very careful before you do some buying. The bottom line, once we process the new tariffs, we've got a ton of earnings reports coming next week. So you better keep your eyes open. And don't forget that Abbott Labs, America's Best, and Charles Schwab are likely to sell off regardless, even if their quarters are spectacular, because that's just how those stocks trade. Start the question with George in California. George?
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Caller
Yeah, I. Jim, am I too late to jump in? PLTR Palantir.
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Jim Cramer
It's pounds here. When I was at 50, I said it's going to 100. When, when it got to 100, I said it's going to 200. So in that sense, the momentum is still with you and it is not too late now. Does it deserve that? These guys talk a big game. It's a Meme stock, okay? Like Robinhood, it's a meme stock. The meme stores won't let the stock come in. It's not a good reason to buy. But I'm telling you where it's going. David in New York. David.
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Caller
Hey, Jim, thanks for taking my call. Appreciate it. I was calling about.
- [08:57]
Jim Cramer
Yep.
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Caller
I was just calling about Pfizer and I've held on to it for a while, I think a few years ago or a year ago. So you may have recommended it and hasn't really gone anywhere. It's still got a really nice dividend yield, about 7%. And like, just technically it looks like it's a good spot. To buy it. But you know, it's not really going anywhere. So I'm just curious.
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Jim Cramer
What I've not been recommending my stock in the pharma. Pharma business is Lilly and the equipment is Abbott. I do think that Pfizer is an inexpensive stock. They have to have some sort of catalyst. They have to prove that they have some new cancer formulations with Cgen. If they don't, you're just going to be marking time, picking up that six and three quarters dividend. That's that is what will happen. How about we go to Carol in California? Carol.
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Caller
Booyah, Jim, booyah. So Jim, I'm calling from Los Angeles as you know and I've got a question about a stock my husband bought during the pandemic that turned out to be a big win for us.
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Jim Cramer
So yes, just fabulous. Geez, fabulous. And I want you to hold it now. I mean look, the, the temptation would be to cut some off because it giant move. If you want to trim a little, that's fine. But I think that Larry Culp is going to tell a great story. It doesn't mean it can't come down. The stock is up in a straight line up 53%. So any stop can be vulnerable. But I think it is one of the best in the book. Hey, two for I really like Boeing too. I think Boeing seems like a very solid buy right here. Listen, once we got through the latest tariff news, earnings season starts in earnest. To make sure to keep your eyes on the prize, maybe tonight Capital One discovered may and I'm running through the reasons why it's shares could be headed higher, maybe much higher in the months ahead. Then is now the time to try contour brands on for size. I'm breaking down why I think the parent company of Wrangler and Kramer family Fav Helly Hansen is a winner right here at these levels. And we held our investing club annual meeting earlier today and we had so many fantastic questions from our club members that we decided to answer some more of them tonight. You don't want to miss it so stay with Kramer.
- [11:20]
CNBC Ad Voice
Don't miss a second of Mad Money. Follow imkramer on X. Have a question. Tweet Kramer Madmentions. Send Jim an email to madmoneynbc.com or give us a call at 1-800-743-CNBC. Missed something. Head to madmoney.cnbc.com.
- [11:42]
Jim Cramer
Which are America's top states for business. Get all the data and complete state by state analysis.
- [11:49]
CNBC Ad Voice
See how your state measures up America's top states for business now on top states.cnbc.com.
- [12:06]
Jim Cramer
Whenever the average is near their all time highs, even if today's pullback, all sorts of people come out of the woodwork to claim that great stocks have become overvalued. But sometimes these stocks have a lot more room to run. Take Capital One Financial back with a huge credit card business that we own for the Chapel's trust which you can join by you can follow along by joining the CBC investing club. Now since we first bought this one for the trust on March 6, we're already up over 28% but we're sticking with it. Why? Because I think it's got a tremendous growth store. It's not done anywhere near here. The recent run is all about Capital One's acquisition of Discover Financial and an all stock deal valued at $35.3 billion. Capital one's always been a major credit card issuer, but buying Discovery gives them one of the four major payment networks right alongside Visa, MasterCard and American Express. We all we know all those few are great stocks. What makes Discovery more unique is that like American Express, it both issues its own cards and processes payments. Visa, MasterCard don't operate that way. They simply collect little tolls for running their own payment networks and they don't take any credit risk, which is good. In simple terms, this acquisition gives Capital One ownership of the Discover global network, allowing them to scale up to become a truly global payments platform. It also helps them reduce the reliance on MasterCard, Visa because now they have a payment network of their own and can collect transaction fees directly. By the way, this is another reason why I was so hostile to the Biden administration's antitrust regulators. They reflex opposed virtually every merger. But sometimes allowing these deals creates new competition. Discover on its own could never really go toe to toe with Visa, MasterCard or American Express. But Discover combined with Capital One, that's a different story. As the storied CEO Richard Fairbank explains it, quote, we have always had a belief that the holy grail is to be able to be an issuer with one's own network so that one can deal directly with merchants and from merchants to consumers, it's all part of one comprehensive relationship. And quote, that's huge. But it's not the only reason why I love this acquisition. There's a lot more going on here. For starters, Capital One expects to realize $1.5 billion in cost synergies from this deal. In 2027 they see another 1.2 billion in network synergies partly from lowering payments to third party credit card providers. Partly from shifting Capital One debit and credit card purchase volume away from Visa MasterCard and onto the Discover network. All told, Magic believes this deal is going to boost their earnings per share by 15% once we get to 2027 and that is substantial. This is a bank, you don't get that kind of growth. The Discover deal also creates new opportunities for Capital One on the international front. This is something that several bullish analysts have pointed out. Just this past Tuesday, TD Cowan upgraded Capital One, noting quote, while Discover as a standalone company had mixed results, growing international acceptance of its network, we believe that could be different under CoF, end quote. The analyst pointed to Capital One strong track record of execution and its willingness to invest with a long term mindset, citing the company's investments and its transact transaction card franchise and multiple multi year commitment to better technology. They that's something they take they know a lot better than almost every bank. The Cowan upgrade also highlights another positive aspect of the deal Capital One may be able to afford offer more rewards for checking accounts now that they have access to unregulated debit interchange. Basically, Capital One can now earn more money each time a customer swipes their debit card because Discovery's network isn't subject to the government fee caps that apply to banks. As a result, these guys can make more money, allowing them to offer debit card rewards which could help them lure away depositors from competition because most banking competitors can't do this stuff. I know it's little, but these things add up. Most major banks eliminated debit rewards after the implementation of Dodd Frank act in 2010. That was an attempt to reign in the industry after the financial crisis. So this one gives Capital One a major advantage. And look, Capital One already, it's already got great at attracting big bigger spenders to its credit cards with an array of enticing perks. Everything cash back and exclusive ticket or reservation access to shopping discounts and of course travel benefits like TSA PreCheck credits and travel miles bonuses. There's a clear emphasis on travel perks and one of the most valuable is the airport lounge. Let's face it, nobody can afford to miss their flight. Most of us usually have a lot of time to kill at the gate before we board the plane. And with airlines now boarding what feels like 80% of the plane in Group 7, that wait can feel a lot longer. After this merger, the combined company is the largest credit card company as measured by outstanding customer balances, giving it the scale to invest more heavily in these premium perks, meaning they can run circles around the competition. Sure those airport lounges are expensive, but Capital One already runs commercials with Taylor Swift, so you know, they're not, well, afraid. Not afraid to open up their wallets. All these synergies and enhanced revenue streams could ultimately lead to additional returns of capital to shareholders as well. And an analysis done by Truist last month estimated that Capital One has 15 billion in excess capital. That's roughly 11% of the company's market cap. Well, some of that capital will be reinvested in the business. Wells Fargo published a report earlier this month predicting a $7 to $10 billion buyback announcement coming real soon. The banks are lining up in favor of this one. Keep in mind Capital One's management still plans to complete an internal review of discovery in the second half of the year, which will provide a clearer picture of its capital needs and how much you can only afford to spend on buybacks. Once that happens, though, they might decide to be a very generous buyer of their stock. The Wells Fargo note also expressed optimism that share repurchases could remain elevated given the Capital One is currently in terrific shape. Delinquencies are trending lower while the strength in net interest income continues. Both positive signs for Capital One's balance sheet and its cash flow. Plus when it comes to the impact tariffs are having on consumer spending habits, CEO Richard Fairbank noted at a recent conference call, quote, we just don't see an effect. End quote. Put it all together, it's easy to see how Capital One stock could keep being rewarded with a higher price to earnings multiple. Right now the stock sells for just 11 times that shares earnings estimates which makes it incredibly cheap versus American Express at 20 times earnings. I use Amex because it's the closest comparison now that the discovered deal is closed. Visa MasterCard have even higher multiples. So here's the bottom line on this stock that even though I know it's about nitty gritty, but it is very exciting for me. Capital One stock has already had a major run this year, but that's because the Discover acquisition is incredibly positive. So I'm, I'm betting the stock has a lot more room to run even though the stocks within splitting distance spinning distance of its all time high. Listen to me, I think it's still way too cheap here to mere 11 times next year's earnings and I think it is poised to have multiple years of outstanding growth. Mad Money is back after the break.
- [19:02]
CNBC Ad Voice
Coming up, can investors wrangle a profit out of Contour Brands. Kramer's digging into the apparel company and giving you his take.
- [19:11]
Jim Cramer
Next, which are America's Top States for Business? Get all the data and complete state by state analysis.
- [19:20]
CNBC Ad Voice
See how your state measures up America's Top States for business now on topstates.cnbc.com.
- [19:37]
Jim Cramer
It'S time to buy Contour Brands, best known as the parent company of Wrangler and Lee Jeans, but recently acquired Helly Hansen, a terrific outdoor apparel brand known as Helly R on the severed floor of the Kramer household. I've been mulling on this one for a while, but after that last great quarter from Levi's last night, remember we had Michelle Goss on the show. I'm ready to pull the trigger now. Contour Brands isn't exactly a new idea. This company was spun out of VF Corp. In 2019 largely because VF Corp. Wanted to get rid of its slow growing denim brands to focus on vans and North Face. But since then, VF Corp's business has fallen off a cliff and Contour Brands has caught fire, climbing from around $13 at the COVID lows all the way to 67 change today. And it was in the mid-90s earlier this year. How did Contra pull this off? A lot of it's because there's a big comeback in the denim space over the past few years. Some of it's because of cost cuts and a moldy or self help initiative and so it simply comes down to terrific execution. But after that great multi year rally, Contour had a major pullback earlier this year as we started learning about President Trump's tariffs. All the power stocks sold off on that does not got a little pop in late February when they announced the $900 million Helly Hansen acquisition and that was a steal. Over the week, Contour reported an OK quarter with a cautious full year forecast and the stock fell 20% over the next two days. It kept falling as the market sold off in March and once the Liberation Day tires came out, it got hit even harder because you better believe these jeans are made in America. The stock probably bottomed around $50, down 48% from its all time high set just two months prior. Hey, since then, Contours worked its way back to the mid-60s on a series of positive developments and I think it is time to jump on the bandwagon. First, given that the real breakdown for the stock started with the disappointing quarter guidance in February, it was encouraging when Contra reported a healthy quarter early May, a tiny revenue miss paired with solid earnings being More important, management raised their full year forecast pretty significant. Of course, the business didn't turn on a dime. They raised their forecast because of that brilliant Helly Hansen acquisition. Contour said specifically that Helly Hansen storied Norwegian rugged outdoor brand will contribute 16% of growth and 20 cents of adjusted earnings, which is exactly amount that they raised the guidance. They also didn't include the impact of the tariffs, which could represent a $50 million hit. But look when reported in February and the stock melted down. Wall street was expecting them to earn $5.37 per share for the full year. And they disappointed by guiding for $5.20 to $5.30. By the time the company reported again in early May, the full year forecasts had come down to $4.88 per share. So the new raise forecast of $5.00 to $0.40 to $5.50 per share was a major upside surprise. The next sign that we got was about a month ago in early June, when analysts at Goldman Sachs reinstated coverage of Contour with a buy rating and an $85 price target. The Goldman else were excited like me about that Helly Hansen acquisition. They also cited healthy underlying trends in the base business. A significant growth optionality as Contour integrates the Helly Hansen brand. And Contour's relatively attractive positioning as a result of current tariff policy was a very bullish piece. A couple weeks later, I went on vacation with my kids to to British Columbia. And despite it being the middle of summer, it can really get cold there. Holy cow. Especially when you're hiking in the mountains like we like to do, or you're doing some, some. You're doing some fly fishing. So what do we do? Well, we got some heli r outerwear, as we call it, and I gotta tell you, it was really great. Especially those raincoats. No wonder they say it's trusted by skiers, sailors, hikers and professionals with outdoor jobs. Hh, as it is known, is stylishly indestructible. Okay, anecdotal, sure. But the experience jogged my memory on why I like the story so much in the first place. When I spoke to CEO Scott Baxter back in February, he explained the rationale for the deal, saying the Contour was adding Helly Hansen to kickstart a new growth year after spending the last couple of years on the, you know, really cutting costs, improving efficiency. The company wanted to expand into outerwear or workwear, and this deal gave them both. It also boosts their exposure to Europe and Asia. More importantly, Contour believes that is the infrastructure in place to grow this new business significantly from its current level. I believe that Kepler here in the United States, which represents less than a quarter of Helly Hansen's current sales, as Baxter put it, it's a $650 million business, and there's no reason it can't be $1 billion business in our portfolio. And I believe him. Finally, on last night's show, we heard two things that are very positive for Contour. First, Levi Strauss, not the big denim play, reported a blowout quarter that sent its stock up over 11% today, despite a fairly ugly tag. That gives me the confidence in the whole category of denim, including Contour. Second, we heard from this alpha called 100x, an alternative data firm that collects information on what consumers actually plan on buying. In last night's chat with Hundred X CEO Rob Pace, he mentioned a group that they dubbed the mvp, which stands for more value for the price. And that group includes Contour, especially the Wrangler brand. And giving consumers real value is how you win in this, in this environment. Hey, by the way, go check the the Wrangler stuff on Amazon tonight. You won't believe it. When I hit it up, I couldn't believe, wow, they've got some incredible values and terrific outerwear. I am not a paid spokesperson for Contour, but while I bought a ton of stuff that all had Wrangler on it and look, when you consider fundamentals, well, there's really a lot to like here. Even after the stocks recovered a bit from its April lows, it's still only back to the high 60s today, down 30% from its early 2025 highs and essentially back at the same level where it was trading a year ago. Contour stock remains very cheap. It's just trading at just over 12 times the midpoint of the new earnings forecast. Also sports a generous 3% percent plus dividend yield. Even if you're worried about the tariffs and want to give that earnings forecast a bit of a haircut, say a 15% haircut, then the stocks would still be trading at less than 15 times this year's earnings estimates. Much, much cheaper than the average name in the S&P 500. Here's the bottom line. I have been feeling better and better about Contour brands for a while now. And after last night's deluge of good news and the acquisition of Helly, I say we should stop thinking about it and just buy the darn stock. Already go to steam in Kansas. Steve. Yeah.
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Caller
Hey, Jim, thanks so much for taking my call. I'm Really a big fan.
- [26:23]
Jim Cramer
All right, let's go to work. What do you got?
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Caller
Well, I became familiar with Dutch Brothers a few years ago and I think they're a fantastic company. I bought the stock on the dip last April and that stock of course has been dropping a little bit for the past few weeks, but I'm still in good shape. I know that they source their beans from Brazil and other South American countries. So with the current tariff issues going on, I'd like to know your take on this situation. Should I buy more since it's down or should I take some money off the table or just hold.
- [26:59]
Jim Cramer
Let's do this. Let's hold. It's a very small part of whatever cost they have. Dutch Bros. Is in major expansion mode. You know, I think it's strivec. I've had Christine Barone on the show many, many times. Know the brand from when my daughter lived in Oregon and I feel like the stock at 63 not necessarily a great level. I would wait till comes down a little. Perhaps when it reports there might be some sellers they don't put till August. Don't be in a hurry. You have a nice gain. No need to add more stock right here. Let's go to Naseem in Florida.
- [27:28]
Caller
Nassim Ajim. Booyah. Huge. Love your show.
- [27:34]
Jim Cramer
Thank you, buddy. What's up?
- [27:36]
Caller
This stock I'm calling about got to 150 at its peak and suddenly went down to 80s and 90s this year. I want to know why the stock is falling so hard and what you think in the short and long term the stock is kava.
- [27:49]
Jim Cramer
Okay. It mystifies me that the stock's been down so much because you know, I think it's terrific. I would say just so you know that I feel very good at this thing down at 90. But what the the problem is this. It sells. It's got 150 moldable and people just say, you know what, I don't care how great they are. I'm not paying for that. I say just hold it and if it breaks down, buy some more because I think this brand is going to be in for the long term. I like it. And all I can tell you is it is kind of stunning that it fell from 172 all the way down here. The Contour brand story has been intriguing for a long time and with the positive signs we've seen in the past few months, I think you step in right now and buy the stock. Stock at these levels, not much more man money. And we took some Amazing questions from investing club members at our annual meeting earlier today and tonight we want to make sure we got to any that we may have missed and I know we did, so everyone can get an inside look at what we do for the investing club. Then I'll reveal one name I'm having some sellers remorse about. Yeah, I'm kicking myself and why I think now could be the right time to get back into the stock. It might help you try to figure out when if you sell something you should get backed in. And of course, all your calls wrap up fire in tonight's edition of the lightning round. So stay with Kramer. Earlier today we held our CNBC Investing Club annual meeting. Jeff Marks and I got together to walk club members through our decision making process in person for the portfolio. We discussed our current holdings and then we took some questions from our club members. And this afternoon the entire investing club team got to ring the closing bell right here at the New York Stock Exchange, which never fails to take my breath away no matter how many times in years I come here. My favorite part of the meetings is always taking your questions. And since we never have time to take them all, we're going to give you an inside look at what happens in these meetings while also hopefully doling out some much needed market advice. So let's start with William in California who asks. Hi Jim and Jeff. I'm a founding member. Thank you and very much appreciate your mentorship. Being a construction guy, my question is when a trading, when trading around a core position Amazon. I sold 50% for a profit but it never got to my cost basis. I believe we'll continue up after the pullback. Can I add over my cost basis? All right. Now typically I don't advise that. The reason I don't is I don't want to be in a situation where it's just animal spirits enthusiasm, making you want to buy something. I like to have a catalyst. I don't like to just wake up one day and say, you know what, it's time to buy more Amazon. Because I think it's going up. If you have a reason, if you think you want to be in ahead of something, if you think that there's something has changed that makes it so you got to have more Amazon, you have my blessing. But if you're just waking up and saying darn it all, I wish I hadn't sold Amazon, let me get some back. That is a problem. And it's a problem that I actually am good in dressing tonight's show because I've Got a stock that's like that. If I think it's going higher, I buy it. Next up, a question. If I have callous. Next up, a question from Scott who asks. I'm a club member but miss getting into the energy infrastructure play. Can I take positions on Eaton or GE Vernova at the current level? So we advise that GE Vernova is the one that's going to have the longer Runway. But because it's such a Wild Trader to 52, we got everybody. Because it's such a wild trader, we advise that you don't buy all at once. So let's say you want to buy 10 shares because it is $600 stock but by 10 shares just by. Just buy 2 or 3. And remember the commit. There's no commit, so it doesn't matter. In the old days you speak big commission if you tried to do that. But I do want you in it. I would use. With a stock like that, I would probably use 25 point increment incrementals. So I do 25 by two and then wait 25 and two, then wait 25, then two way 25 and then we take a look at it again and see. But it might be my last 25 get a decent average yet it's very hard to trade these stocks that are so big. I always try to get management stuff to do a split. I know it doesn't create any value, but it certainly makes it a little less intimidating to do that kind of buying. Next up, Janet in Florida Ask. I'm curious to know what you think Robinhood will do in the long run. I have a big position. I'm holding on to it. I want you to take out your cost basis has had a major move. Robinhood has become what I call a meme stock. It means that it's just done. It's just trading off of enthusiasm. Right now when I see trading off enthusiasm. What's the matter with that? Well, enthusiasm can cool. I like trading off of fundamentals. Now Robinhood is doing well, but they have really, let's say, become very big cheerleaders for themselves. Nothing a matter of that. But don't get caught up in the hype. Take your cost basis out and then we can deal with, let's say a letting it run situation. But not until then. Now let's go to Neil in Washington who asked. Jim, I have several stocks where I was able to sell half and recover my cost basis. Do you recommend further trimming as shares dramatically climb or simply let them ride? Okay, this is the Nvidia show issue. And the answer is let it ride. Because you can never lose money. And that's what I call plan. With the house. You must take it, take that cost basis out and then you can just let it run. And who knows how rich you're going to get? Isn't it terrific? And you'll never lose. Next up, William in New Jersey. Yes. What is your current evaluation of Chipotle? It's been flattered down for a long period of time. Do you think that it's worth waiting for earnings later this month to sell? Okay. Why? To sell is good, CEO. I think that a lot of people feel right now that the price that, that it's gotten, the meals are too expensive. I think that's nonsense. What's really happened here is they did this 50 for one split and there's just stocks sloshing around everywhere. It just hasn't been able to put together two good quarters. When it does that, I think you can break out again. But it's not. We don't own it. When, when it comes to restaurants, I like, you know, I like Texas Roadhouse. Why? Because it's a regional national story. I prefer that to the stock of Chipotle. Now let's go to Christopher in Georgia who asks. Hey, Jim and team, I got a dilemma in this market. I've got 10 individual stocks. They are all positive for me. Should I violate my cost basis to add to one of my 10 stocks or should I find the 11 stock? Thank you all for all the interesting and fun content. All right, once again, I come back to this notion catalyst. And, and do you like it? In other words, of those 10 stocks, which one has something that's about to change that might make it so that you can justify coming in and buying more? Because there's going to be a step function. For instance, we have Capital One. Capital One is a good stock. But once that merger style came together with Discover, well, that's a catalyst. And the stock went down. And that was just. Even though it's above the basis just got to go by. You need to look not at the basis. You can even white out the basis if it helps you to get outside yourself. But you have to think, is there a catalyst? And why buy now? Maybe the market's really oversold and you're looking to add something. You don't just add an 11th because, because of the rule about not filing your basis. I want you, I don't want you to be a mutual fund. You get to become a mutual fund. When you start getting more positions. So let's just be wary that we don't want to have too many positions and we do want to be bigger in the stocks we really like. Next, we have a question from Rich in Texas who asked booyage. With all the uncertainty around tariffs, is it safe to start a long term position in price Prologis first or should we wait for a significant pullback? The CEO of Just being changed. I love Mugadine. He's terrific. I am not as keen on the warehouse market right now. I think that there's. I think you have too much space in it and I don't think they need that. They're going to put up as many as before. But. But if I got a price break, if I got it down to here, I would take action. But right now I'm not. I've got other stocks I like more. I don't feel that I need to take a position. Prologis great company. I just don't feel I need that position now. Thank you for all your questions and thank you to all our club members. Mad money is back after the break.
- [35:29]
CNBC Ad Voice
Coming up, Kramer takes your calls. And the sky's the limit. It's a fast fire lightning round next.
- [35:46]
Jim Cramer
It is time. It's time for the lightning round of steppers. And then the lightning round is over. Are you ready, Skinny dad from the lightning round Cruiser? Let's start with Tom in Florida. Tom.
- [36:01]
Caller
Hey, Jim, thanks for taking my call.
- [36:04]
Jim Cramer
You're on the show. Tom, I'm a great.
- [36:06]
Caller
Can you hear me?
- [36:08]
Jim Cramer
You betcha. Yeah.
- [36:09]
Caller
I'm a great believer.
- [36:10]
Jim Cramer
I'm a great believer in your idea.
- [36:11]
Caller
That it's an ideas driven market here more than ever. And the idea is that I like. One of the ideas I like is defense industry stocks. But a lot of them had a big run up lately with the big beautiful bill and so on and the spending of the European military defense spending. But the one I'm looking at, I said I don't want to buy the IP etf Huntington Angles and Streets.
- [36:31]
Jim Cramer
I've liked it since it was spun off by Linton. I think it's terrific. It's the absolute best plan for us to be able to build our ships. And we need a better navy. I think it's a buy. Let's go to Tim in California. Tim. Booyah. Jim.
- [36:44]
Caller
Happy, buddy.
- [36:46]
Jim Cramer
Same to you, partner. What's up? Hey, I'm super excited about a stock.
- [36:53]
Caller
And I'd like to hear what your thoughts are on Rocket Lab.
- [36:58]
Jim Cramer
Oh man. This is one of the hottest stocks in the universe. This is one of the stocks where I remember I changed my mind, said, look, if there could be an article that moves a stock up 10%, 15%, I'm going to recommend it. This Rocket Lab has been right now for the last 10 points. It's going to continue to be right. What can I say? I say let's go to Alex in New Jersey. Alex. Hey, Jim.
- [37:18]
Caller
Happy Friday.
- [37:20]
Jim Cramer
Same right back at you. What's up? My name is Alex. I'm calling in from Princeton. My dad and I watch your show all the time. We love it. Tell him I said hi.
- [37:30]
Caller
I will.
- [37:30]
Jim Cramer
Listen, the stock I'm calling in about is tssi.
- [37:33]
Caller
They've had.
- [37:34]
Jim Cramer
That's a pretender. That's a pretender. We want to be in Cornweave. If we're going to go there, we don't buy number two, we buy number one. Let's go to Joe in part of. Joe, Jim.
- [37:44]
Caller
Joe, I need your guidance on a.
- [37:46]
Jim Cramer
Stock Club stock favors and one.
- [37:49]
Caller
I hold a position in Eli Lilly.
- [37:52]
Jim Cramer
All right, listen to me. This one is one that everyone's going to give up on them one day. It's going to be up 300. I'm not kidding. That's what happens with these stocks. They have, you know, this stock went from 200 to 600, that went to 900, then came back to 700, then went up to 800. This thing is just a coiled spring when we get the new numbers. But don't be too excited. There are many big studies coming down the pike. A hypertension study going to be remarkable. There's going to be heart failure and there's going to be Alzheimer's study. How can you leave this one right here? I see plenty of people lose it. Losing it and they shouldn't. Let's go to Brandon in Texas. Brandon.
- [38:27]
Caller
Booyah.
- [38:28]
Jim Cramer
JC look at CAG. Very tough, very tough situation. Con Agra's got 7% inflation. They got problem. Tin cans. They can't. It's killing them. In terms of roll cost, the margins aren't that good. Good. The brands aren't enabling them to be able to take any up any price. I have to tell you, the one thing that was important was it on the comps goal. They did say that they think they have no problem paying the dividend. A company that has to answer about whether it has a problem paying the dividend or not is a company that I say, don't buy. Don't buy. Let's go to Bob in Arizona. Bob.
- [39:02]
Caller
Hello, Mr. Kramer. Longtime fan, first time caller. I'm curious on NPI.
- [39:08]
Jim Cramer
Oh, my God. So you know we got a Texas, we got a Texas Instruments upgrade earlier today. We got an Analog Devices upgrade earlier this week. NXPI is the last of the Internet of Things semiconductor company with a lot of auto and auto looks good to me. I think you buy NXPI on Monday morning. I do not kid you. Monday morning we take a shot at that one. Let's go to Scott in Florida. Scott.
- [39:33]
Caller
Hey, Jim, club member here. Love your show and analysis.
- [39:36]
Jim Cramer
I wish you were with us today. All right.
- [39:40]
Caller
I, I, I'm into power solutions. Psis.
- [39:44]
Jim Cramer
Then you're a winner. What can I say? That is an amazing stock. It's not even that expensive. Look, I was so busy with Caterpillar, I didn't get to the Power Solutions. You're right. Keep on it. Terrific work. Good homework, obvious club member. Thank you very much. And that, ladies and gentlemen, is the conclusion of the Lightning Round.
- [40:03]
CNBC Ad Voice
The Lightning Round is sponsored by Charles Schwab. Coming up, when is it time to get back into a stock after selling? Kramer's giving you his thought process behind his sale of Alphabet for the charitable trust Next.
- [40:21]
Jim Cramer
Boya. Jim, I love you, man.
- [40:23]
Caller
I've been watching from day one.
- [40:25]
Jim Cramer
Thank you for all the wonderful advice that you provide us.
- [40:27]
Caller
I'm learning so much watching your show, watch your program every day. I love it.
- [40:31]
Jim Cramer
Always wanted to say booyah on your show. Thank you for being the greatest in the world.
- [40:35]
Caller
We consider you the money market maker and we thank you for all you do.
- [40:40]
Jim Cramer
I love your show. Longtime fans of your show and we think it's the most entertaining program on tv. What do you do when you sold a stock that in retrospect you think you should have held on to? That's one of the things I've been beating myself up around in front of club members who came in today. I'm remonstrating about the charitable trust sale of Alphabet. A long standing position and a very big win that we sold. Why'd I sell it? Well, first I can tell you that my idea for selling it was a, was a bad one. I made a mistake, one that could have been made by anybody. It set it on a big win by the Justice Department against out that where a federal judge deemed the company a monopolist. Why was that a mistake? Who wants to own a company that's been deemed a monopolist? Well, because the legal remedy for a company that's a monopolist is simple. The court will most likely break up the business if it gets its way. But if you believe that Alpha's parts are worth more than the whole, that's not a problem. You'll get Google Search, the Android operating system used by 3.5 billion people. YouTube, the most watched streaming platform in the world. Gemini, that's its new AI system. And Waymo, its self driving car business that I like very much now this year I had some sellers remorse because the stock went straight up without me as others weren't as chagrined as I was about the monopolist charge. Maybe they figured out some of the parts story fast and decided was worthwhile in excess of the company's then market capitalization. Just under 2 trillion. About a month later though, the stock got clocked when Apple's Eddie Q. Testify in one of the myriad suits brought by the government said that in April Google searches conducted by Apple Safari fell. For the first time in 20 years. Google does about $200 billion in search. If it's slowing, there's no way that Gemini can make it up. Vindication, right? No. The stock got D for a couple of days, then it came right back up and exceeded where it was. That bugged me for certain. I take this stuff so personally. Then last night we had Rob Pace on the show. Rob is the founder and CEO of an Alpha called Hundred X which collects feedback on thousands of brands directly from customers. Talked about them when it came to Contour. I find there, I find their information really, it's invaluable. Rob had just gotten some interesting data about Waymo. A large number of surveyors said that they felt safe about driving in a Waymo almost as much as they do it in a typical Uber or Lyft shift. In some categories like cleanliness and vehicle quality, Waymo already passed those competitors. More important, Rob told us that the future usage figures are up huge from last year, meaning that people are increasing planning to use Waymo. It's had a very big move in people's minds. All right, so let's see. Right now Tesla's value added about $1 trillion. I think that roughly half of that might be because people are betting on their self driving technology. Waymo is well ahead of Tesla right now in terms of regulatory approval. So who knows what Alphabet might be worth if the government moves to break up the company. Plus if we discover that Google can regain its status as an important place to look things up, then that to trillion market cap it could be way too small. In other words, it's time to get back in Alphabet. But where when I went want to get back into a stock that I've already sold. I don't try to out think it. I don't want to look at where I bought it before for I don't want to be a prisoner of where I sold it. But I also just don't want to go in there and just buy because I said, oh darn, I got to get in this one. We're now nowhere near the time where the court order breakup might occur. Nevertheless, what matters isn't that I sold Alphabet. What matters is where I think it is going. And ultimately the answer is, I like to say, as always, the bull market Summer. I promise I find just for you right here. Mad Money. I'm Jim Grammer. See you Monday.
- [44:25]
D
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 madmoneydisclaimer which are America's.
- [45:06]
Jim Cramer
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