Monday was yet another day when everything was going wrong for Wall Street, Jim Cramer admitted to his Mad Money viewers. Despite the war in Ukraine, Covid outbreaks in China, rising interest rates and sky-high oil prices, however, Cramer still found things to be optimistic about.
Make no mistake, things are bad out there. Russia’s aggressions in Ukraine are horrific. Lockdowns in China could hurt an already disrupted supply chain even more.
The Federal Reserve’s chances at taping down inflation without crushing the economy are tepid at best. And with gas prices at record levels, consumer sentiment is quickly shifting to the negative column. Why be positive then? Cramer offered three reasons.
Over on Action Alerts PLUS, portfolio managers Chris Versace and Bob Lang explain what investors need to know about commodities, Ukraine and Russia — and why they’re optimistic for Deere & Co. (DE) – Get Deere & Company Report Get in on the conversation with their trading strategies and investment ideas.
First, is time. Time is always on your side when it comes to investing. Eventually, Covid, Ukraine and supply chains will all be resolved, and that’s a good thing for stocks.
Second, is price. Stocks get cheaper as they go lower, and with many tech stocks trading like it’s armageddon, there will eventually be value to be had.
Finally, there’s sentiment. When everyone is negative and there’s no one left to sell, that’s when bottoms are formed. We’re getting closer to that bottom every day. In the meantime, investors can buy the recession and safety stocks, along with oil and energy, while they remain patient and wait for a better day.
Executive Decision: Dutch Bros.
In his “Executive Decision” segment, Cramer spoke with Joth Ricci, president and CEO of Dutch Bros (BROS) – Get Dutch Bros Inc. Class A Report, the growing coffee chain with shares up 32% over the past six months.
Dutch Bros just celebrated their 30-year anniversary, Ricci noted, and the company continues to deliver “careful” growth that maintains their unique company culture. Dutch Bros is in the people business, not the real estate business, he added, and that’s how they’ve built their business to include over 20,000 employees so far.
Ultimately, Dutch Bros has plans to expand to over 4,000 locations nationwide. Currently, the chain has just 538. Ricci said the Dutch Bros model has been successful in many locations so far and they are well able to finance their growth without the need to raise additional capital in the immediate future.
Cramer said Dutch Bros has great coffee, a good plan and has no exposure to Russia or China.
Executive Decision: Honeywell International
For his second “Executive Decision” segment, Cramer sat down with Darius Adamczyk, chairman and CEO of Honeywell International (HON) – Get Honeywell International Inc. Report, the industrial technology and manufacturing company with shares that are down 15% over the past year.
Adamczyk said it would be easy for Honeywell to dial up short-term projects by not investing in the future, but that’s not right for the company. Honeywell is investing in breakthrough initiatives, some of which deliver profits today, some of which will pay off in three or five years down the road.
One of those more immediate initiatives is quantum computing, which can help solve problems that traditional computers simply can’t. Honeywell has merged hardware and software to create a leading quantum platform that will generate millions in profits this year and even more in the future, he said.
Honeywell is a compelling investment, Adamczyk added. It has a great balance sheet, a cheap stock, a $4 billion buyback, and accelerating growth and profits. Honeywell is a lot more than just an aerospace and industrial controls company.
Executive Decision: Marvell Technologies
For his final “Executive Decision” segment, Cramer checked in Matt Murphy, CEO of Marvell Technologies (MRVL) – Get Marvell Technology, Inc. Report, the chipmaker with shares that trade for just 20 times earnings.
Murphy said Marvell is doing “extremely well,” and this quarter was yet another “beat and raise” event for the company. All of Marvell’s end markets are up, especially the data center, where companies continue to rapidly digitize and move to the cloud.
5G wireless is another hot spot for Marvell, with growth up 30% sequentially for this quarter alone.
When asked about disruptions in China as Covid surges yet again, Murphy said the semiconductor industry has been dealing with disruptions for the better part of two years and still is growing. Demand is outstripping demand, he said, but every quarter they aim to produce more chips than they did last quarter.
Shares of Marvell are up 27% over the past year.
In the Lightning Round, Cramer was bullish on Twitter (TWTR) – Get Twitter, Inc. Report, Scotts Miracle-Gro (SMG) – Get Scotts Miracle-Gro Company Class A Report and Enterprise Products Partners (EPD) – Get Enterprise Products Partners L.P. Report.
They Can’t Be Trusted
In his “No Huddle Offense” segment, Cramer warned that the game has changed, and it’s time investors stop trusting their money to dictators.
China can no longer be trusted as a stock market steward, Cramer proclaimed, almost a year after his initial warnings about investing in China. For nearly 40 years, China embraced free markets as part of their growth strategy, but things have changed. Now, China is embracing their communist roots and more than happy to wreck any stock they deem is making too much money.
Then there’s Russia, a country which is run by, Cramer said, a psychopath and his cronies. Cramer said Russia also cannot be trusted with your money. People make money in these countries only because their dictators allow it. Don’t get caught in the hype, he said.
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