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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 7/15/24
Building a portfolio with Fidelity Basket Profolios is kinda like making a sandwich. It's as simple as picking your stocks and ETFs, sort of like your meats and other topics, and managing it as one big, juicy investment. That's pretty good. Learn more at Fidelity.com/baskets. Investing involves risks including risk of loss, Fidelity Broker Services LLC, Member NYSC SIPC. Homes.com knows that when it comes to home shopping, it's never just about the house or condo, it's about the home. And what makes a home is more than just the house or property. It's the location and neighborhood. If you have kids, it's also schools, nearby parks and transportation options. That's why homes.com goes above and beyond to bring home shoppers the in-depth information they need to find the right home. And when I say in-depth, I am talking deep. Each listing features comprehensive information about the neighborhood complete with a video guide. They also have details about local schools with test scores, state rankings and student-to-teacher ratio. They even have an agent directory with a sales history of each agent. So when it comes to finding a home, not just a house, this is everything you need to know, all in one place. Homes.com, we've done your homework. My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a more market somewhere, and I promise to help you find it. Man money starts now. Hey, I'm Kramer. Welcome to Man Money. Welcome to Kramer America. If you want to make friends, I'm just trying to make little money. My job is not to just entertain, but to educate, to teach you, put it all in context. So call me at 1-800-743-CMC or Tweet me at Jim Kramer. Eight years ago, in a moment gripped by political fever, I put a button on my soundboard that said, "Trump stock, Trump stock." After this week's events, it looks like I have to bring it back, because the extraordinary moves we saw in so many stocks today, they were the Dow Jump 200 web points, S&P Advanced 0.28%, now as they came 0.4%. Now I'm not calling the election here, that's not my department. I'm hesitant to spell out winners and losers until we get close to the main event. But you're sticking your head in a sand if you think nothing changed after the failed assassination attempt on the now official Republican nominee for president. The events in Butler, Pennsylvania, which were truly tragic, seemed to have the world believing that those frightening moments have indeed cut in favor of a Trump win, and he was already leading in the polls. Since the Trump stocks were almost self-evident at this point, let's look at what the rally did today. Let's see if the stocks truly fit the bill. The most pronounced winners, the bank stocks, especially the big banks, JP Morgan up 2.5%, Goldman Sachs is a pretty good number today, almost 2.6%, but both just doing very well. But let's call it as we see it. Wells Fargo, handicapped by regulators from the year of out and out in alchicanery, put a sub-optimal quarter last Friday stock got hit, but today it managed to rally more than 2%. Arguably that's because CEO Charlie Sharf talked about how the economy is growing weaker, and the loan business has gotten slower. Something will make it easier for the Fed Chair Jay Powell to cut industries, which would be good news for Wells Fargo at this point in the business cycle. I think the bank stocks have had two problems with the government that could be solved by the election, Donald J. Trump to the White House. First, the Biden administration acts as if all banks are killing until proven innocent, or pretty much everything. Whereas Trump, who created an empire on borrowed money, believes that banks are just plain innocent. In particular, JP Morgan and Goldman Sachs were today, because these two, plus Bank of America, Morgan and Standard support tomorrow, are heavily delivered to both IPOs and mergers net positions. The regulators are tough on IPOs these days, so the markets had to earth the new deals. More important, these investment banks used to make a ton of money on mergers. Now we know that both the FTC and the Justice Department's anti-trust division have been extremely anti-takeover under Biden. His FTC chairs express great skepticism about how gains from most mergers don't go beyond shareholders, because this is where you come down politically. The net positions obviously bad for the stock market, especially the investment banks. But Trump measures himself by the performance of the stock market, especially the Dow Jones and Dushel Avers. President Biden told me back in the day that the stock market means very little to him. He reveled in the fact that he didn't invest and took great pride in being the poorest man in the Senate. Let's get him in position, but bad for the stock market. Now we know that few things make the market go higher than tons of M&A activity, which is why I think that Trump FTC will look the other way almost heels. Like it did last time, and the market could go higher on that disparity alone. Speaking of deals, right now the government is trying to block Kroger's acquisition of Avers and because of grocery store concentration. Even though they don't have all that much overlap once you spin off the ones that do kind of create a problem, you know what I think Trump's people would say that we need a strong Kroger to compete against Walmart and Costco, which means the deal must go through. The current administration doesn't seem to care about all about that. The government is also trying to stop tapestry from buying Capri because it consolidates the apparel and accessory space. I bet that Trump people find that laughable. Second, the oil and gas markets soared today on the hopes that there would be less regulation and more drilling. I wanted to screw with Wall Street here. The oil stocks did not thrive under Trump because there was too much drilling and never too much added oil supply. If you want to bet on a Trump win, I recommend buying the oil service companies only. I am partially more domestic Halliburton because this is a domestic thesis, but I don't want to own oil producers because a Republican administration means more drilling, good for how, which means lower oil prices, for all the stocks that soared today. People seem to believe that Trump would be more friendly to the health insurers than Biden. I'm not sure that's the case. What matters here is that you're going to have a couple of quarters before we vote. According to tomorrow's report from United Health Group and these stocks are insanely volatile in election years. This one's way too dicey for me. However, the market is judging about the drug stocks, very negative, very damping, is correct. Both Biden and Trump regard them as whipping boys, very hostile rhetoric toward all of big pharma and most of the boutits. There are plenty of stocks that have to, you have to avoid it or if Trump wins. Like anything related to saving environment because Trump says it doesn't need saving. Many alternative energy stocks have been red-hopped but they cooled down today as the market started baking into victory. For the investing club, we told people that you have to distinguish which stocks depend on subsidies and which don't. For instance, we defended NextTracker because they provide software that helps industrial solar perform more efficiently, not for people at home. But I got my Enphase solar edge, Sunrun and Sunover are down because if the subsidies go away, those earnings, they will take a hit. Now there's a belief that Trump will put on a 10% tariff on oil imports hard to pass back in Congress. We know Trump will do his best to curtail immigration. That combination, whoa, has proven to coalesce negatively around consolation brands, which imports medello and corona from Mexico. Tax on Mexican goods, decline and growth rate of the core customers. I think that the argument is way too simplistic. We told investing club members to buy it today and we will reiterate that stands strongly Wednesday when we have our monthly club meeting. Be sure to join and listen in as many people tell me it's the best part of being a member of the CNBC investing club. Many people believe that electric cars will be hurt by the lack of a climate control initiative under Trump. Probably true. But this group shows you the difficulty of making sector judgments based on the president. Elon Musk wholeheartedly endorsed Trump this weekend. He said good things about his pick up and Jamie Vance this afternoon. And that's one of the reasons why I think Tesla is up 2% today. It's a reminder of how fickle politics can be. Finally, we can tell from the rally in the Russell 2000, which has been ongoing now, that people believe small, medium-sized businesses will thrive under lighter regulation if we get a Trump administration. At the same time, Trump was viewed as a thorn in this side of big tech. I think the market is probably right on both counts. I removed the Trump stock button when Trump was done. But when I look back at the entire arc of the soundboard, I realize that it's hard to game out what a Trump presidency truly means for the market. He was never known for his consistency. Consider that one of the best investments that Trump has ever made was in the knockdown stock of Amazon after Trump upgraded them for allegedly scamming the US Post Office. The president was powerless to change things, and it's not clear that Amazon even took advantage of the Post Office to begin with. Instead, he simply got a gigantic buying opportunity in one of the greatest stocks of all time. Bottom line, after this weekend, it sure seems like the Trump stocks are back. Just keep in mind that plenty of companies are grading up to transcend politics, and sometimes what counts as a Trump stock can change on the dime. Let's go to Sam in Pennsylvania, Sam. Jim, how are you doing? Sam, speak to me. Hello, Jim, listen, hi. We've got a great opportunity in the market, but it only comes around once in a while. One of the great American brands out there, that's Nike, recently they had a bad quarter, but sales look good. The company is getting hurt by the market share getting being taken by on running, which is something we warned about earlier this year when I was on talking about on. But anyway, Nike at 73, is it too cheap to pass up? Should we buy it at this, what seems to be a five-year low? Look, I tell you, when I see senior growth on sale like this, it does make me think it's time to buy. I thought that way about Starbucks, which unfortunately my travel trust zones. The problem is, neither company has really owned up to what's wrong, until we get truth and reconciliation about how poorly the run, or that something's got to change, you can't buy them. They just don't make sense. Let's go to Jeff in California, please, Jeff. Hey, Jimmy Chil, I am on cloud nine and over the moon. I've been dreaming about Navidia, and dreaming about Navidia, and you told me and told everyone that you knew Navidia would do well. I'm up $138,000. Wow. Wow. I am grateful for that. I saw a lot of people call wildlife refugees this week, where he ran an auction, and I heard many things similar. I'm very proud of that call, but more importantly, I'm very thankful for the kind comments you just gave me. Jimmy Chil, I am thankful for you, Mr. Wang. I just am dreaming about this thing. I'm loving it. Anyway, Jimmy, my stock is vertive. As soon as I bought it, it fell about 400 bucks. But the good news is, year to date, it's up 83.66%. Bam. And in one year, Jimmy, it's up 234.76%, which is incredible. According to Zack's, year over year, cash flow. Look at this. Cash flow is at about 88.4%. Okay. I have to tell you, I think that vertive is very good, but it's resting. And when a stock is resting, we're not going to poke the bear. Let it just stay there a little bit, and then we can buy some more. But I do think it can go down a few, just because it's been up so much. It's been such a remarkable stock, and thank you again for those gracious comments. In this election season, you have to keep in mind that plenty of companies are great enough to transcend politics. And sometimes what counts as a Trump stock, it can change what it's on. They have money tonight. There's a bull and bear debate happening in the analyst community when it comes to music streamers spotify. So which take is music to my ears? I'm letting you know. Then you called in and you stuck me on our door metal packaging. I'm turning in my homework on this low dollar stock, and see if I think that the 11% dividend could actually be a red flag. And later, I'm talking exclusively to the hottest stock in the SP500. We're going to the CEO of Super Micro. Fresh off the news, the company's addition to the NASDAQ 100. So stay with Kramer. [MUSIC] Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Kramer. #MadMensions. Send Jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. Miss something, head to madmoney.cnbc.com. 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Terms and conditions apply. Need to hire? You need Indeed. Support for this program is provided by Chevron. Demand for energy is projected to continue rising in the future. To help keep up, Chevron is increasing their U.S. oil and gas production, and they're innovating to help do it responsibly across their operations, including their Gulf of Mexico facilities, which are some of the world's lowest carbon intensity operations, helping supply energy that's affordable, reliable, and ever cleaner. That's Energy in Progress. Learn more at chevron.com/meetingdemand. Breaking news. The Peanut Butter Group and Chocolatey Corp have merged to create PBC Inc. And the byproduct of the merger is the new delicious Jiff Peanut Butter and Chocolate flavored spread. I got the press release and get this. Critics tried to say it creates a monopoly on cravability. But obviously, it's not illegal to be irresistible. Calling it now, this will revolutionize the snack industry and the contents of my pantry. Visit pbcincorporated.com to try the flavor merger of the century, Jiff, PB&C. Early seasons officially underway, but things don't start getting real busy until next week and the week after. Right now, you can argue maybe we're in preview season where Wall Street analysts spend their time publishing notes about what they expect from virtually every coming down the sun. And sometimes those analysts have very different views on the same stock. Tech Spotify, the company behind the world's most popular audio streaming service, which reports next week. Now we've got a pretty bearish call on this one last Wednesday, followed by two bullish ones on Thursday. Oh, I love it when these contrasting analysts' reports come out because that can help us distill the best of the bold and bear cases. It makes it easier for you to come to your own conclusion. First, let me give you some context here. After peaking in February of 2021, Spotify spent the bulk of the next two years getting just clobbered before bottoming in November of 2022 at $69. Since then, the stock has been moving steadily higher, climbing all the way to $302 today. Well, it's not quite back to its early 2021 highs, but you got to admit that's an incredible performance. Okay, now get this. Even as it's flattened out in the last few months, we have to figure out which is the right way to go. I am inclined, I'll tell you ahead of time to like it, but I found some pretty interesting logic here. Let's go to our analysts' gunfights starting on the bear case. This is an analyst at Redburn Atlantic, a boutique research firm. It's downgraded the stock. This is what really got me. Not from buy to hold, but from hold to sell. Even as they raised a price target suddenly from $210 to $230, which is still more than $70 below where they currently traded. Now, I was shocked. This is one of the most loved stocks in the whole world. Now, the negativity from Redburn Atlantic was actually part of a broader bearish call in the music streaming industry. I get that. They also downgraded Warner Music Group, and Reiter is celebrating one universal music group. Those two I totally agree with. As the Redburn Atlantic note says, matter of factly, let it at the beginning, quote, "Music streaming is facing competitive and structural challenges that we argue will prevent broad-based price increases from becoming a new norm," end quote. That would be bad. Then the analysts go on to argue, quote, "Rapid adoption of music streaming services in developed markets has helped propel the major commercial music players to loft the multi-bolts," end quote. That means they're too expensive. But as these markets reach saturation, the industry will need to rely on higher prices in order to keep generating growth. Redburn Atlantic argues that it's been insanely hard for anyone in the music industry to raise prices for decades now, and you know that. Just too many ways to get it from free. Long story short, these analysts believe that Spotify will find it harder and harder to generate subscriber growth and won't be able to push through much in the way of price increases. Kind of a judgment call. While Redburn Atlantic concedes that Spotify is an impressive operator, with a very successful audiobook bundle strategy, they simply think that this stocks just too darn expensive, even the likely slowdown in growth. As they see it, the company should put up 18% revenue growth this year. That's terrific. But they think it will decelerate to 6% by 2028. The analysts can say this is as Spotify growing at 11% in 2028. So these guys are much more negative on the company's long-term prospects. Basically, they're arguing that the estimates are too high and the stocks too priced. Now you know if they report something that is below what people are looking for, the stock will be crushed. So what about the more positive pieces on Spotify? Now both these came last Thursday. It's a three-way analyst shut, shut, shut, show down. First last Thursday morning in New Weirdos, over Jeffries took over coverage of the same three music stocks that Redburn Atlantic had downgraded the day before. But Jeffries now is a buy rating for all three. At the last week's upgraded Spotify from holding the buy. They also raised the price target from 242 to 385. Now that is an incredibly bullish bullish bull. As bullish as Redburn Atlantic is bearish. The funny thing is Jeffries made basically the exact opposite argument, the opposite one from Redburn Atlantic. First they say quote, "we are increasingly confident in the spot stability." That's the symbol. The responsibility to comfortably deliver sustainable 15% plus revenue growth over the next three years, end quote. That's the antithesis of Redburn Atlantic's projections. Even more strictly, the Jeffries analyst goes on to say quote, "Underscoring our confidence in 15% plus sustainable revenue growth is our view that music is about to undergo a moldy year reprising. At just $12 a month for Spotify subscription versus $6 to $1 a month spent. In aggregate on video streaming, we believe there is room for price increases at least every other year end quote. And a Spotify can put through a couple of price increases. They believe the company could trip what's operating income over the next three years. What makes Jeffries so confident in Spotify's pricing power? Simple. Spotify really hasn't had many price increases to date. In fact, note that the company had zero price increases for its main U.S. monthly subscription offering until last year when they hiked the price from $9.99 per month to $10.99 per month. By contrast, Netflix has raised prices by 41% since 2018 as have other popular subscription services like the dating app Tinder, just kind of a compare. Even if the bears at Redburn Atlantic are right that there's a ceiling for how high these music streaming services can raise their prices. Even if it doesn't come close to what people will pay for video streaming. I think Jeffries is right that Spotify still got a long way to go before they get close to that ceiling. Now in the last piece of the puzzle came last Thursday evening when Anal said another boutique firm this time Wolf Research initiated coverage of Spotify with a buy at outperform rating $3.99 price target. The Wolf analyst points out that Spotify dominates this industry one-third of the music streaming market more than double the size of its closest rivals. Compared to the music labels, they argue that the company quote provides pure play exposure to evergreen music streaming without hit driven variability, artist negotiation risk, and both minimal capital investment intensity and quote. In other words, it's not comparable to record labels at all, which was a big part of the bear thesis from Redburn Atlantic. Boy, I really agree with that. Furthermore, the Wolf analyst stressed that Spotify is not just about music. They also have high growth initiatives and podcasts. I know a lot of people listen to that audio books, which we listen to. And a lot of events, all of which have access to the company's huge building network of 615 million monthly active users were what? That's an incredible number. Hey, by the way, only about a third of those have subscriptions. Over time, Wolf Research believes Spotify can layer on additional services with small incremental price increases for those who want them very compelling argument. At the end of the day, boy, I got to tell you, I am inclined to sigh with the bulls on this one. Let's give the bearish, Redburn analyst some credit for highlighting risk to the music industry as a whole. But I think they feel to appreciate that Spotify is the key cog at the center of the industry right now. The bear has seemed too afraid of the competitive threats from Apple, Amazon, and YouTube. Hey, they're legitimate competitors that have never less lag far behind the big dog for many years now. Given Spotify's colossal scale of music streaming, this is the last player in the industry you should be worried about. They have more pricing power than any of the rivals. Plus, as the bulls at Jeffers noted, the fact that Spotify hadn't raised prices at all through their first 15 years means they now have a lot of room to play catch up. So the bottom line here in this analyst shootout... As I see it, Spotify's not hostage to the broader music streaming industry. They've built an unestable leadership position over the past decade and a half, which gives them more pricing power than anyone else in the group, even as they've largely chosen not to use it. But if they need to, they can. Which is why I think the stock remains a buy. I really like it. They have money stacked in the industry. Coming up, don't kick the can. Do your homework today. Kramer tests his metal with a can-do attitude. Next. At EverNorth Health Services, we believe costs shouldn't get in the way of life-changing care. And we're doing everything in our power to make it possible. Behavioral health solutions that also keep your projections at their best. It's possible. Pharmacy benefits that benefit your bottom line. It's possible. It's a complex specialty care that cares about your ROI. It's possible. Because we're already doing it. All while saving businesses billions. That's wonder made possible. Learn more at EverNorth.com/wonder. Support for this program is provided by Chevron. Demand for energy is projected to continue rising in the future. To help keep up, Chevron is increasing their U.S. oil and gas production. And they're innovating to help do it responsibly across their operations, including their Gulf of Mexico facilities, which are some of the world's lowest carbon intensity operations. Helping supply energy that's affordable, reliable, and ever cleaner. That's energy in progress. Learn more at chevron.com/meetingdemand. Every night we take calls from our brilliant audience. And when I'm stumped with a stock I don't know about, I always promise to do some homework and then I circle back later. Which brings me to our door metal packaging. Which Perry, a veteran from Louisiana, asked about over a month ago. Not only did I not recognize this one, but Perry asked a very specific question. If you're giving us perhaps the most hilarious buoyant in many a year. First of all, I want to tell you thank you for everything that you've done for me as a retired soldier. And I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. - Holy cow! - I want to give you one big New Orleans oodat. Especially with the stock that supports the potentially dangerous 10.8% you. Not to mention a $3 in change share price. C'mon, stocks are well-priced. Well-run companies always never visit the single digit area. Everything down there is either a mess or something very speculative meeting inherently high risk. At its core, ardom metal packaging is actually a simple business. They make cans from beverages, beer cans, soda cans, whatever. Simple enough, but here's where it gets complicated. This particular can-making business was established in 2016, when a larger European packaging company, Ardol Group SA, acquired the Can Business that was spun off by Bull Corporation and Rexanne in order to get approval for the merchant. Then Ardol Group came public in 2017 with the ticker A or D, and for what it's worth, this was not a particularly great stock for the first, for the four years that it traded on its own. Get this, the story changed in February 2021, when Ardol Group decided to spin off its metal packaging division and merge it with a special purpose acquisition corp or a SPAC called Gores Holding Five. The old ardol group pertained an 80% ownership stake in the new Ardol metal packaging, so they still essentially own the business. They also got one $3 billion in cash for the transaction. There's a lot more complications in the SPAC deal, but long story short, the old ardol delisted in September 2021, right after Ardol metal packaging started trading on its own. Goodbye ARD, hello AMBP. Think about the time here. The SPAC deal was announced in February 2021, almost exactly the height of the SPAC mania, and by the time the deal closed that August SPACs were already well out of favor. After the deal closed, Ardol metal packaging saw a brief pop reaching a high of $12 in change. Hey, but after that, the stock started sliding lower. And it didn't stop going lower until last October, when the shares finally bottomed at $2 in change in October 2023. That's down almost 80% from their peak, since then this thing's been raised bound between $3 and $4 for the bulk of the past nine months. So that's the complicated corporate history of Ardol metal packaging. But now let's talk about the fundamentals. This is a leading supplier of what's known as infinitely recyclable metal beverage cans, and they work with tons of major players in the industry, with 42% of the business coming from Europe and 58% coming from the Americas. Given the stock's abysmal performance over the past few years, you won't be surprised to hear that the numbers have been deteriorating. The business had a nice 18% revenue growth in 2021. That was the year that the SPAC merger took place, in large part due to COVID-era supply shortages. But in 2022, while sales grew a solid 16%, the earnings for interest, taxes, depreciation, and memorization fell by 6%. Last year, sales grew only 3%, and EBITDA fell another 4%. Now, when you look at the less forgiving gap earnings, as to the traditional way you measure things, Ardol metal packaging lost money in 2021 and 2023. Now, if you look at the 2024 consent assessments, they're a bit better than they've been. They're also looking for 3.6% revenue growth, 9% EBITDA growth, and that's where their own guidance calls for mid-single-digit percent shipping growth. When they reported in April, the results were technically mixed, where Ardol reiterated its full-year forecast and issued better than expected EBITDA guidance for the second quarter, which briefly allowed the stock to rally. Hey, by the way, the company reports again next Thursday, and you know what? I've absolutely no idea how the quarter will be. So in terms of the fundamentals, I could make an argument for Ardol metal packaging. Sure, the business hasn't been great in recent years, but it finally seems to be stabilizing, if not improving this year. Plus, the Can industry is basically an alangapoli, which makes it easier for the few existing players to hold on, even in tough times. That I wish it was? This one seems fine. The company has an enterprise multiple that's basically in line with crown holdings, that's a rival, and a few turns lower than ball-corp the other major player. But remember, I had a specific assignment from Perry in Louisiana. He wanted to know if Ardol metal packaging's dividend is safe, and this is where I start to get a little squeamish. The double digit yield was already a red flag. And when you start to look closely at the company's balance sheet, well, you will not like what you see. The company had just under $4 billion in total debt at the end of the first quarter, and with the market cap of just over $2 billion currently, that means its debt to equity ratio is close to two. Now, ball-corp is a debt to equity ratio of 0.3. It's always only at 0.8. Now, to put things more simply, Ardol metal packaging has roughly 598 million shares outstanding. So the company's $0.10 per share quarterly dividend costs them just under $240 million per year. The problem is, the company only on track to generate $117 million in free cash flow this year, according to the fact said. Next year, that's expected to grow, but only $185 million still not nearly enough to cover the payout of what they pay in the dividend. If that happens, the company has to borrow money to cover the gap, worsening the already suboptimal balance sheet situation, or they have to do the easy thing and they have to cut the dividend. Now, to be clear, I'm not necessarily predicting this company will cut the dividend anytime soon, especially because they just reach a deal for a new credit facility with a poll, the private equity giant in April, in order to pay off big loan that's coming due next year. But, man, oh boy, man, my rule of thumb on dividend safety is simple. If your free cash flow can't cover the payout twice over, you don't have a truly safe dividend. Artil can't even cover it once over. In the end, this company has a long-term balance sheet problem that needs to be sorted out. Bottom line, I was intrigued by this new can maker option because I love investing in industries that effectively are monopolies, but the earnest trajectory over the past few years is not inspiring. And while that nearly 11% dividend you'll sure seems tempting, I don't feel comfortable enough for the balance sheet or the cash flow to call it safe, which is what Perry specifically asked about. So that's why I can't bless our dog stock as a good pick for investor looking for you, like Perry from Louisiana. Let's go to Steve in Nevada, Steve. Hey, Jim, thanks for taking my call. I had a question for you about my 3M stock. I purchased on the dip about three, four months ago and has now become 3M's solventum, as you know. Right. And I bought it mainly for the dividend, and the solventum keeps going down, and they just slashed the dividend on the 3M. What do we expect from this new CEO? Is he going to? I think he's doing what's necessary. I know Bill Brown from his previous employee, L3 Harris, he was fantastic. I think Mike Roman did a great job cleaning up the real issues that were impacting 3M. I think 3M is a buy. Let's go to Cindy in New York, please. Cindy? Hi, Mr. Kramer. It's so nice speaking to you. I'd like to know your opinion about stock. I mean, it was doing very well now, but it's really going really down south. Yeah, it has been. So, shall I buy? Well, I get a very big piece of... I understood. I did a very big piece this weekend, which talked about Chinese stocks, companies that have a lot of business in China, and what a disaster they are. And we should start forcing management to recognize that it's no longer great to be in China. This stock is down 24% in your day. I'm not happy with it. I earn it for the child of trust. I wish I did not. I was saying that there's going to be a level where all the bad news is in, but it has to come with some recognition that China is no place to invest. There's certainly going to expand there. Even though I like the company story, I don't feel comfortable enough with our lost balance sheet to call it safe. I say kick the can a little further down the road on this one. There are better places to put your money right now, much more mad money ahead, including my Susan with Super Microcomputer. Could it's additional to now step 100 to be a needle mover for the already red hot stock? I'm getting the latest from the CEO. Ben, I think we are in need of some optimism here and there and everywhere. So, I'm taking into the Black Rock CEO Larry Fink's comments when he told me this morning that asked me feeling a little more sanguine about the state of capitalism in our country. And of course, all your calls wrap and fire tonight's edition of the lightning round. So, stay with Kramer. After the close last Friday, we got the great news that Super Microcomputer, the maker of advanced server storage solutions and tech components, many of which power artificial intelligence, will be joining the NASDAQ 100 next week, replacing the more abundant Walgreens. Now, this stock has had an incredible run, rallying nearly 250% last year, and tripling again this year best performing the sb500 so far. Let's been trading sideways for months now, after pulling back from its March highs. So, could this thing be rested and ready for its next move? Let's check in with Charles Leanne. He's the founder, chairman, CEO of Super Microcomputer to get a better readless situation. Mr. Leanne, welcome back to Man Money. Congratulations. Thank you, Jim. Nice to meet you. Now, what do you think this inclusion to the NASDAQ 100 means for your company after joining with the s&p500 earlier this year? And what does it say about the accomplishments that you've had? Oh, it's a great owner. You know, we are really excited to be a one-year NASDAQ top one-ente company. It's also showed a recognition from the industry about our liquid cooling, our green computing, our face AI platform to service the world. And we are continuing improving our product, and hopefully this year we can move DLRC liquid to 15 to even 25% of global new data center deployment for AI. Now, I think it's important for people to understand the growth you have is so great that you sometimes have to outstrip necessarily your profits in order to keep growing, something that I totally support because most companies don't have growth like you. What does it mean to you as a CEO to manage cash at a time when you have super hyper growth? Oh, it's a great experience, you know. Liquid cooling, green computing. They have customer-safe energy costs. Reduce carbon footprint at the same time because that's power required to power our data center. That's why it's also enabled customer to build their data center, go for online much earlier, much quicker. Then, otherwise, if they go for traditional AI cooling solution. Now, I want people to save money. Go ahead, I'm sorry, sir. Save money, reduce carbon footprint and enable their data center online quicker. Then, otherwise, go for traditional AI cooling. Of course. Now, I want people to understand the difference between your method of cooling, and I think the best way is to talk about how many trees you have saved because of your cooling. You know, from our calculation, detailed calculation, if global data center go to a liquid cooling, green computing solution, together, we can easily preserve 20 billion trees for our planet. Save money, grow tree, preserve tree for our planet and enable data center time to market. So, it's a greater owner and really exciting experience here. So, 8 billion trees save 30 fossil fuel power plant reduction, so important at a time of global warming. Yes, I mean, it's a major advantage. Since 20 years ago, when we started cooling computing, indeed, we did not believe the impact will be so big. My ear after ear accumulated, the technology, the better technology. Now, this is a contribution we can have at our industry. Now, Charles, what does that orientation have you stand with Jensen Wong at NVIDIA, given what a huge environmentalist he is, and trying to keep the heat down at his data centers? He's a greater leader. You know, when I talk to him, did he appreciate his talent? He is one of the engineers. So, it's a very good experience to work with him. And he always brings a challenge to customer partners like us, but it's a greater challenge. We eat together through our good seeing for our industry and for our planet. So, have been a very exciting, happy experience. All right, so, Charles, I was with a former partner of Goldman Sachs this weekend, and he said, we're going back and forth. And he said, you know, Jim, this AI spend can't continue at this pace. And I said, yes, it could actually accelerate from this level. Where do you see artificial intelligence spending in the next three to five years? Oh, I push on an APD. This AI revolution can be bigger, even in the interior revolution. Because all the people like the convenience, the smart tool, the fancy feature, the AI over to our people. So, I believe it will continue to improve. And the good thing is, we're in video technology, and with our energy saving solution, we can have customer increase, not much power, continue to oval, much more powerful AI solution to the world. Now, in order to meet the expansion issues, should you be raising capital, maybe another convertible bond? Would you think about doing another equity offering to be sure your balance sheet stays strong? You know, that's two years we have been growing a lot. A more than double, less year, for example. And we believe we will continue to grow at a very fast pace. So, I believe we may need some more capital to support our quicker growth. The good thing is, the more system we provide to our world, ship to customer, the more money we save for customer. And the greener, the data center, we have the industry. So, I push on a very exciting and oil continuum to speed up our progress to help the industry. All right, well, we call that the virtuous circle. Super micro has it. And I just am so thrilled that you came on Mad Money. Charles Lanning is the founder, chairman, president, CEO of Super Micro computer, the number one stock in the S&P 500. Thank you, Charles. Good to see you. Thank you, team. Absolutely. Mad money's back after the break. Coming up, pop open those umbrellas and tee up your toughest questions. Kramer takes on all comers in the lightning round. Next. It is time to start with the lightning round. First of all, you say the name of the stock. I tell you to go in your cold, shock correctly. And then the lightning round is over. Are you ready, ski? Down to the lightning round. First of all, it's filled with a lot of filler. Tim, first thing's first. How are you doing today? Excellent day. Thank you. How about you? I'll go see you downstairs. Down south here. Fair in the middle. Fair in the middle, Jim. Fair in the middle. All right. Yeah, that's the thing they say down here in itself. I got you. Okay. So, to this stock, I also, quickly, I also about three months. Okay. I'm about 80 points on it. All right? Now, it's a very small part of my portfolio. And I want to do against what you've reached. And that's the bones. Make money. That thing. I want to keep all 70 years that I have. Okay. Okay. That's what I think about this stock. What stock is it? Oh, I didn't tell you. Oh, I'm sorry. Hang there. Oh, we're at the network. You know what? Go for it. Jay Shree, you allow us an amazing business person. And I think it's a fantastic stock. I'm not going to get in the way of you making a lot of money. And that is more than a fair to middle stock. That's a great one. Barry in Florida. Barry. Hey, Jim. Barry down here in Miami. Who we are. First time. Hey, good to have you on the show. Long time. All right. Great to have you. What's happening? Jim, here's what I got. Another Barry. Much smarter than me. Seriously. It's just a start with property. I love that guy. End of stock. With the headwinds in the commercial real estate, especially the office market. Can he hold that almost 10% dividend? Well, I think he can. But here's my problem with the stock. He has scared me out of recommending a stock. He came on. He said there'll be a bank that might fail every single week. And then I said, I can't recommend his stock. So, I mean, he has to be a little bit more upbeat for me to think that his stock is worth buying. He talked me out of his own darn stock. Let's go to Mike and Michigan. Mike. Mike and Mike, Jim. How are you? Excellent. How are you doing well? How about you? I am living the drain, man. Excellent. Hey, I need your help on a value thought that I bought earlier this year, believing it would benefit from infrastructure investment and autonomous agriculture. Unfortunately, the gears company sales dropped 15% last order and it's working off excess inventory. John Deere is trading near a historical level from a P.U. multiple standpoint. Should I continue to run with it here? I don't want you to sell it down here, but I have to tell you, we have struggled with trying to figure out the upside. Ben Stone and I spent a research director spending a huge amount of time wanting to just feel like, you know what? It's very tough to justify loading the stock. Let's go to Bill in New York, Bill. Good evening, Mr. Kramer. Thank you for taking my calls. Of course. My question is regarding Neo. I have a pretty large state and I'm in it a little under the high. I'm wondering if I should cut my losses on this stock or hold. Neo is one of those stocks where if you sell it right here, some clown will come out and be real positive about it. There'll be some planarary nonsense. It'll go to six and you'll hate me. So let's just wait until all that stuff happens and then you can sell it. And that, ladies and gentlemen's conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, Kramer changes the tone with a little help from an old friend. Next. If you're at all like me, you have an incredible need for some optimism right now. It's not just the political violence this past weekend. It makes things feel dark. It makes things feel grim. This whole election year has been a mess. Some of you seems very much in sync with the tone of the country. But today I heard a different tone. A tone that made me feel that the end of the world is not on the table. And it comes from someone who'd know, someone whom I have tremendous respect for. Not just as the chairman and CEO of BlackRock, the world's largest investment manager, but as the guy who may have the greatest knowledge base of anyone on Wall Street. And that's Larry Fink. Listen to what he had to say today about our markets. We have the most dynamic, capitalistic system in the world. We have great company. We have great ingenuity, great technology. Let it unbound, let it go. Great, great jobs, great opportunities. And we'll have a rising equity market that will really fuel this opportunity. What a breath of fresh air. Thanks an optimist. He recognizes that we must encourage growth, because without growth, our government will be overwhelmed by its deaths. Business needs to be more unfettered, less regulated in order to generate that growth. When you look at the trillions of dollars in debt, he says, "We cannot tax our way out of this burden." The deficit is a huge lurking problem. But we can grow our way out of it. Maybe with companies using the wonders of AI and targeting the data and making themselves more productive. Larry came to squawk on the street on a very good day, because at this moment of intense political division, we need a neutral calm voice who can explain how capitalism is a force for good, a force for wealth generation, not just for the rich, but for everybody as long as they invest. He believes in something that's an incredibly short supply. He believes in hope. Listen to what he said about Saturday's events. What happened this weekend is a tragedy. It is a statement of America today, though. We need to create hope. All of us have a responsibility, a very political candidate, every leader, every pastor, minister, rabbi. We all have a responsibility of bringing our community together to bring hope. And that's what we are here for, to bring hope. As tough as it might be, I think you can't invest successfully without a certain level of hope. If you don't have some hope, then you'll be shaken out of potentially great investments by passing fears. As someone who runs a portfolio connected to a chapel trust, I'd like for you to own some individual stocks, and that's the craft we teach in the investing club. But I don't care what you invested, as long as you invest. Larry said today that he now favors investing in Bitcoin, perhaps as a way to hedge against deficit. I get that too. No matter what happened this weekend, no matter what happens in November, you must have some faith in capitalism to help grow your wealth. That's why I salute BlackRock and I salute Larry Fink for thinking bigger than just the quarter. He's thinking about giving you some excellent options to try to help you make a lot of money, but if you don't have hope, if you don't believe at least a little bit, then it just won't matter. I'd like to say there's always more market somewhere. I promise you I'll try to find it just for you right here on Mad Money. I'm Jim Kramer, see you tomorrow, last call starts now! All opinions expressed by Jim Kramer 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 Kramer 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. Want a website with unmatched power speed and control? Try Bluehost Cloud, the new web hosting plan from Bluehost, built for WordPress creators by WordPress experts. 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