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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 3/25/24
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Visit ssga.com for a perspective containing this and other information. Read it carefully before investing. Spy is subject to risks similar to those of stocks. All ETS are subject to risk, including possible loss of principal, Alps distributors, and distributor. 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 summer. And I promise to help you find it. Mad money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramer. I'll be with my friends. I'm just trying to make you a little money. My job is not just entertainment, educate. Hey, how about teaching? Call me at 1-800- 743-CMC or tweet me to Kramer. Amazon takes heat for her useful businesses. Alphabet gets blasted for taking both sides of advertising, the buyer and the seller. Apple just absolutely gets crushed because it makes such a good phone that it calls a lot of shots in the industry. Maybe more than it should. That's why the Justice Department and the Federal Trade Commission are going after these three companies. But in reality, let's face it. They're being sued because the White House thinks they're too big to power. The government's approach to antitrust has cast a poll over this market. And lastly, with the blast, give Apple by the just part, well, it's starting to take its toll. Making caps not bolster this market, down losing 162 points as it beat the climb point through 1% NASDAQ tipping point 27%. I want to go over these lawsuits. The FTC gets Amazon. The Just Department gets Google as well as Apple because they're becoming overwhelming for you, the investor, for the investor class. They lurk daily and make it difficult to invest in three of the best companies on Earth. Let's start with Amazon. The FTC claims that, and I quote, Amazon's ongoing pattern of legal conduct blocks competition, allowing it to weld monopoly power to inflate prices, degrade quality, and stifle innovation for consumers in business. First, does anyone really believe that? They're an estimated 167 million prime members in the U.S. roughly half the country. People love Amazon Prime because it cuts prices, it raises quality, and promotes innovation for consumers in the enterprise. If it didn't, it wouldn't have any members. Amazon's biggest rivals, Walmart and Target, are doing everything they can to catch up. And they will often succeed, but Amazon keeps prices low, so it's hard to beat them. But you compete, compete on price. And now the Justice Department says they're wielding monopoly power to inflate prices. What the heck are they smoking? They can't just finally get legal. It's not illegal to beat your competitors. In the end, the government doesn't like Amazon because it's a $1.9 trillion company. The FTC thinks it's too big. I wish they just admit that, though. But it's not against the law to have a high market cap, Google. The Justice Department sued Google for monopolizing digital advertising. They say, and I quote, "Through serial acquisitions and anti-competitive auction manipulation, Google subverted competition in internet advertising technologies," end quote. Look, Google does represent both sides of the trade. When it comes to placing ads in some online spaces, but so what? They are facing increased competition from TikTok, which doesn't have any to do with Google. But more important, and this is why it is so obscene and absurd. They have an existential threat right now, Google. From gender of AI, which many people think is just going to replace Google's search altogether. I know if I have a specific question now, I go to chat, GBT, or even better, I go to Claude, Claude III by Antropic, before I go to Google. This lawsuit against Google was out of date by the time it was filed because of these threats. It's kind of embarrassing, frankly. They're fighting the last war. Ouch. Besides, if you're going to place an ad online, you don't have to use Google. You can use trade desk. They do an amazing job. If you take one look at trade desk, incredible earnings growth and revenue, more and more people are just doing that. Maybe Justice should have read some research reports. Justice should cover trade desk, take it from hold to buy. Again, in actuality, Justice simply thinks Google is too powerful. So they want to make it less powerful. But competitors like TikTok and trade desk have already done that, and so is chat GBT, and of course, so is Claude III. Of course, competitors don't meet out punishment. They just hurt your earnings, which brings me to Apple in the suit Justice filed last week, which includes a total hodgepodge of allegations that lacks any rigor at all, even though it's filed by a department that historically has had a lot of rigor. It's kind of unlike them. Now, we're told that Apple suppressed super apps, that they suppressed cloud streaming, and the text from non-iPhone users are fuzzy, slow, and green, making it harder for Apple users to send videos to their mommies. I'm not kidding. A mother came up. Justice also accuses Apple of having 65% market share in American smartphones by revenue, even though it's less than 48% if you go by units, which frankly is really the only relevant metric. The summation here, quote, "Apple's broad-based exclusionary conduct makes it harder for Americans to switch smartphones, undermines innovation for apps, products, and services and imposes extraordinary costs on developers, businesses, and customers," end quote. Wow, okay, they make a great phone better than everyone else. Wow, big. Never knew that was a crime. They had 34 million registered developers working for them. Now, it's a simultaneous press group, and they have extraordinary costs. Do they have to lower their cuts so we all quit our jobs and learn to code? I mean, they impose, of course, consumers, why don't you go buy a cheap LG phone then? Did the government forget that no one really pays $1600 for an iPhone unless you're a total dope? The phone company's all subsidized or purchased. I have no idea how much I paid for my phone, because it was so heavily subsidized. And then when I was finished with it, I got a huge amount of money back and about two-thirds of what I paid, because the dealer sends the phone to a bunch of other countries. It's all good. I buy a new phone, again, from one of these phone companies. In fact, it's so good that it's one of the few real bargains left in life, especially when you remember that the iPhone is a product many of us can't live without. In other words, we love our Apple. We, as the highest satisfaction of any company on Earth, highest. And that makes them dominant. What are they supposed to do to make a worse phone so the less dominant? I think so. But let's have no doubt about it. Like Amazon, like Google, the government's going after Apple because they think it's too big and too powerful. Just own it, government. You know what this lawsuit's about? Pretty simple. It's about getting Apple. It's kind of like when Attorney General Robert Kennedy put together a Get Hoffa Squad with 20 prosecutors in 1961. Jimmy Hoffa ran the Teamsters. Bobby Kennedy hated Hoffa. Now, there's one minor difference between Hoffa and the Teamsters and Tim Cook at Apple. Hoffa was guilty. Cook and Apple are innocent. That doesn't seem to matter, though. Nor does it matter that everybody who has an iPhone loves it. How can you say Apple is her creators of products? Given that it's almost impossible for a company to get noticed with its own website. So you fight to get into the App Store. If you're trying to sell something, you can either sell 100% of nothing or 70% of something after Apple takes its cut. And it doesn't, well, it doesn't always take that much, frankly. I was one of those product people. I started the street.com, but we could never get enough subscribers if we just used our website. So we went on to the App Store and we crushed it. 100% of nothing is not as good as 70% of something. It's a bargain not with the devil, but with an angel. Then again, maybe the words in the Get Apple Squad have never started a business. Look, we have to level with each other about this administration. Justice and the FTC simply seem to have it in for the megacaps. Even as Amazon, Google, and Apple are among the most respected companies on Earth. Before these companies came along, America was king of carbonated soda, maybe movies. That's what we exported. That's what we made. Then the megacap companies came along with Microsoft, which justice, by the way, nailed in 2000 and Facebook, which has been hacked or forever. And Netflix was, I guess, gets away with it. No getting Netflix squad there. Maybe because they're basically part of the old economy, just a big film and TV producer. Honestly, I wish the White House would just admit the truth. They want to make the biggest businesses less powerful. And then, let's just try to pass a wall though, rather than trying to get the megacaps under existing laws that they really haven't broken. Bottom line, let's think about what happens if the FTC and justice get their way. If they crush Amazon, do we have to go back to the store and at least pay a little bit more for Prime? If they annihilate Google, I guess we'll just take our queries to the Quad 3. Probably do it anyway. And if they get Tim Cook, maybe for the first time, someone will want a Nokia smartphone. Now, wouldn't that be great for Finland? Kyle in Ohio, Kyle, please. Oh, yeah, Jim. Very excited to see Sake Juan in an Eagles uniform. I am, too. It's going to be incredible. And how he rose mint is a genius. How can I help? I love it. Hey, Tesla seems to be slipping behind the mag 7. Do you think he wants to caught up with memes and maybe like the Kramer coin to successfully run the business? Or do you think he can get things turned around? He no like me. I think he can turn it around. I mean, I think the stock's been holding in here in the 170 180 area. They got a new iteration coming. I think that's going to help us not give up on Tesla down here. Let's go to Tony in Florida, Tony. Hey, Jim, I want to give you and Lisa a big boo-yah. I was with you when he came down here and I brought a bottle of your first dollar. Oh, thank you. The first four of Lisa be so happy that you called in. Thank you. Well, that's the way I like to do it. It's better to be nice and to be mean. What can I say? How can I help? How can I help? Well, I live in Florida and this stock is my electric company and it's next to energy and has a 3% dividend. I like it. It's a growth utility. I like Semper and I like next year. You've got a good one. And thank you for the kind comments. I'll go for Lisa. She will absolutely love that. She's working so hard with that in that scale. Anyway, look, at this point, I wish the White House would just admit that they want to make the biggest businesses less powerful, break them up, punish them. I don't care. But if they do get their way, we have to think about what that means for the health the consumer going forward and for the stock market, of course. We may have money tonight. Ekra, I'm pouring out West. I've been thinking about which companies are poised to benefit from the relationship with the king of artificial intelligence and video. I'll reveal the names in which ones I have on my island. Then Esther Labs went public last week and seen stocks soar 100% since it's listing. So is this a viable AI name or just fluffed in the buzzy space? I'm sharing where I come down. And you most likely have their products in your home, but should you have it in your portfolio? I'm sitting down with Kevin Macavitt, maker, master brand, who learn a little more about the story and hear about his first full year as a standalone public company. So stay with Kramer. 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. One in eight. That's how many people have worked better McDonald's, who served millions the best Big Mac and best birthday party they've ever had. We haven't just seen kids graduate from a Happy Meal, but have gotten help graduating themselves because they know the skills learned here. The amineedos, welcome to English Under the Arches, can help you grow from here, or keep growing here. One in eight, start at McDonald's. And where you start, stays with you. Resourceful small business owners know how to get value from the purchases they already make for their businesses each month. The Enhanced American Express Business Gold Card is designed to take your business further. It's packed with benefits and features, like four times membership rewards points that automatically adapt to your top two eligible spending categories every month, on up to $150,000 in purchases per year. So you earn more where your business spends the most. Plus up to $395 in annual statement credits on eligible business purchases at select shipping, food delivery, and retail subscription merchants. And with flexible spending capacity that adapts to your business, and access to 24/7 support from a business card specialist, you can continue to run your business with confidence. The AMX Business Gold Card, now smarter and more flexible. That's the powerful backing of American Express. Enrollment required, terms apply. Learn more at americanexpress.com/businessgoldcard. After coming back from the video's big conference this week, I can tell you that if you're in Silicon Valley, if you're anywhere in tech, anywhere in cybersecurity, in med tech, in finance, in retail, in oil, in workflow, you have to get right with Jensen. It's just the fact of life. I repeat, you have to get right with Jensen Wong. He's the co-founder and CEO of NVIDIA. He's changing the world. And if you don't change with him, well, you're gonna be left behind. Right now NVIDIA has had not one, but two different breakthroughs, accelerated computing at a speed that's ridiculously fast and generative artificial intelligence. Those are two different concepts. If you've watched our CNBC leader special about Jensen, then you don't need to know any more about its life. I left nothing in the locker room. But I want to talk about who's getting it right with Jensen, because those are the businesses that will be successful, and the stocks you went on. So who's gotten right with Jensen? Let me even be one's first among equals is Amazon. Here's the company that totally gets Jensen. They have a great relationship with the video using their high-powered chips to drive down prices for web services, while increasing the speed and accuracy of inference. Inference is what drives product recommendation on the retail side. You buy some socks and send you some shoes. On the AI side, Amazon owns a big stake and anthropic, the gender of AI startup. If you compare their Cloud 3 platform to chat GPT, you can see where all that extra computing power goes, as it produces conversational, smart pros, answers to every query. Chat GPT, on the other hand, sounds like a robot, while Google's Gemini reads like a PowerPoint presentation. As for the core retail business, much of Amazon's success comes down to their ability to make almost perfect predictions about what you might want to buy. We are all creatures of habit. The machines have learned our habits, especially Amazon's. If I could only recommend one stock as an Nvidia pin action play, it's Amazon. They're getting right with Jensen more than anyone in the world. The second is Dell. I think Jensen regards Dell as a crucial partner when it comes to installing Nvidia systems everywhere. You don't call Jensen or his team if you want to install the new Black Well system and all its accoutrements. They're not in that business. It's actually called Dell. And Dell sends in a team that works with Nvidia's team to put it in. Michael Dell, unique among all executives, got a shout out during Jensen's fabled keynote. And he was in the front row to receive it. Talk about getting it right. I didn't know they were so close until Dell's most recent complete and you blow out corner. I think his socks got more room to run. After those two, there might be a pretty big drop off in terms of who's getting right with Jensen's. We know he truly values this relationship with Zeman's, the great term in industrial. He calls manufacturing the final frontier, the true industrial revolution that comes from his technology, something way beyond AI models that can talk to you. The construction of factories is a gigantic business and Zeman's works with Nvidia to create what's known as digital twins, like a computer based prototype beforehand in order to cut down and waste the speed up construction time. Now, Zeman's only trades here can be a Ricky Dink ADR, so I'm not going to recommend it. But it seems to be the industrial that best shares Nvidia's vision, although Jensen also did mention rock ball automation somewhat offhand. You might have wondered why I spent so much time with Medtronic, the medical device company. That's because they've chosen to partner with Nvidia very aggressively. I talked to you about Medtronic's colonoscopy machine that's powered by Nvidia's super computer. Much better at catching pops than the traditional colonoscopy. What else? J and J come up many times with the operating room in the future, but if you buy that one, you're playing litigation with Let thanks to the asbestos lawsuits. Yes, GE Healthcare uses AI and Nvidia's a partner, but they're not a huge partner. Two of this Jensen partners with everyone. Your task is to figure out which partnerships are more equal than others. Does the fact that CrowdStrike announced a cybersecurity partnership with Nvidia mean that Palo Alto Networks doesn't do business with Nvidia? Absolutely not. But Breggmer just do matter and CrowdStrike seems more right with Jensen than Palo Alto. That said, Palo Alto is being called in for some very big deals right now in the wake of the United Health hack, which was much worse than the people realized that I feel much better about this charitable trust name than I did before going out to Silicon Valley. And on Wednesday, I'm going to tell people at our meeting, at our club meeting, that you should be buying Palo Alto. ServiceNow gets kudos for working with Nvidia on workflow. They're the go-to partner for all sorts of office productivity tools and methods. Again, if you want to see what Nvidia Tech can do for your company's workflow, you're called ServiceNow, not Nvidia. I'm a big believer in CEO Bill McDermott. Who is next? You don't hear much about it, but Tesla's a real devotee of Nvidia. Although Elon Musk wants to build his own supercomputer, he's on Nvidia's system now. I know Musk would prefer to build everything AI-related by himself, but it's more efficient to buy directly from Nvidia because Nvidia is so far ahead. Musk has admitted it himself. He gave a quote to Jensen. "For orders away from Tesla, Jensen's excited about his relationship with ANSIS, a terrific outfit outside of Pittsburgh that reminds me of a lot of Autodesk." ANSIS is being acquired by its longtime software and design partner, Synopsys. When that deal closes next year, I think it's become the one to watch. Cadence Design Systems got multiple callouts as a partner for using Nvidia to help their clients and farm in biotech. Like Synopsys, Cadence has a long and multifaceted relationship with Nvidia. Both stocks have been unbelievable performers. When it comes to the giant hyperscalers, like before mentioned Amazon, Nvidia is Switzerland. They're neutral. You saw prominent quotes from Sundar Pinchai, CEO of Alphabet, Satya, and Adele, CEO of Microsoft. I'm not tech savvy enough to differentiate which one's better for the whole Nvidia suite. Let's just say that both fabulous partners. Oracle makes a strong statement for getting right with Jensen. Oracle is trying to build as many data centers with the latest and greatest from the videos they can. Same goes for meta platforms. I was hoping I could point to a robotics company that's worth buying, but I think they don't take blackboarders' shipping volume for which the major progress from the robot front. They're not ready yet. It'll happen though. Last week, I sidled up to the bar of a robot and he made me one of three drinks, but it was a bit of a parlor trip because there was a human there trying to help them. Definitely not there yet. Finally, there's a used partnership, well, let's say potential partnership that I've mentioned before. I think Apple's Vision Pro is the perfect vehicle for delivering Nvidia's super computing power. The Vision Pro is treated as a consumer product, but with Nvidia's Omniverse, I think there are a ton of great enterprise applications, the business, the business, that darn thing practically sold me a car. But I have no idea if Apple wants to go down that path, and even if they did, they play everything close to the vest. I think you need to consider the possibility though, because the upside potential would be so huge. Bottom line, before you buy anything in these industries, first ask yourself, have they gotten right with Jensen? Not everyone who embraces their tech will be a winner, but I think the ones who don't jump on the Nvidia train will most likely turn out to be boosters. They have money back after the break. Coming up, it's a new kid on the block. 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You've probably heard about the Reddit IPO, which instantly soared from $34 to 50 when it debuted last at the highs last Thursday. And then it took down to 30% today. It's closing each $60. Now, I'm not as interested in this one, given that Reddit said 19-year-old company is both unprofitable and cash flow negative, but it has had a monster run. Caching. Caching. But last week, another IPO was kind of intriguing. I'm talking about a steer of labs, which makes connectivity hardware for data centers exactly what you need for the fastest cloud setup or better yet, AI. And thanks to the AI connection, this one came in hot. As star labs placed its IPO at $36 per share, way above the initial proposed range. Now, the stock opened at $52 and changed last Wednesday. If you got into this deal, you instantly made a 46% gain. It didn't stop there. The stock's getting ground every day, climbing another $15 to $85 today. That's a 21% move for heaven's sake. The stock's now more than doubled. A 136% from its IPO price. But the old days. This kind of rallies for a very long time. But I do hate to see it, because it tells me that the stock's probably already overheated. We don't want an IPO market that's too hot, because that means there's too much speculation. Speculation proceeds a real big downturn every single time. My story short, it starts clearly positioning itself as a new way to play the AI theme. They even name drop the Nvidia in their perspectives, though it's unclear what their exact relationship is. As star labs says that it's one of the hardware companies that's going to benefit as we rebuild data centers all across the world for the more advanced computing needs to be in the AR era. That's true. To be fair, they're probably right. But even if you take a star's claims and face value, I still take issue with evaluation. Because this thing is polluted right out of the gate, it's going too high. When you think the open of the financials, it's hard to justify paying up too much for this one. The best thing I can say about a star's number is that they've got good sales growth. I'm 45% last year. But man, when you look at that rough share count, this is down by it as a $13 billion company. That's well over 100 times last year's sales. By comparison, Nvidia sells for 39 times last year's sales, and it had 126% revenue growth. So if anything, it should be more expensive, plus Nvidia is mentally profitable, not a star. But you can't value a star labs on earnings per share, because it doesn't have any. They're sure they had a net loss of $26.3 million. When you strip out all the stock based compensation expenses, that loss does shrink to $15.6 million. It's still not great. Milastar's burning cash, negative cash, a negative operating cash for the last year. They've burned through $12.7 million during that period. Don't get excited about that. Now, let's not have to say there's nothing to like here. While a star had 45% revenue growth in 2023, those numbers got much better than the cadence toward the end of the year. 60% revenue growth in the third quarter, followed by 148% revenue growth in the fourth quarter. The quarter quarter trends were extremely choppy, but clearly things are moving in a stronger direction. You have to applaud that. If a star can keep putting up fabulous sales growth, their numbers will. Their margins are going to keep heading in the right direction. In fact, when you look at the non-GAT numbers, their operating income turned positive in the third quarter. While their net income turned positive in the fourth quarter, keep that up and the company will be profitable this year. Interestingly, just this morning, we saw the first sell-side analyst initiate coverage on our Stuart Labs. I was told by the name of Gus Richard at Northland Capital Markets. Now, he can cover the stock during the quiet period, because his firm had nothing to do with the IPO. And you know what? He is bullish as all getting. He started his share with an $85 price target in outperform rating, which is why the stock jumped more than 21% today, closing in exactly $85. His reasoning. He says, "Is there a superior connectivity solutions that are ideal for AI infrastructure?" He's predicting 133% revenue growth this year, expecting the company will earn 55 cents per share. Still, when you get to the texture of the non-evaluation, you can see that this analyst is twisting himself into a pretzel to come up with a price target that's above where the stock is currently trading, at least before today. Forget this year's earnings or next year's or even the year after that. Northland Capital points to his share's earnings power in 2028. They believe the company can earn $6.80 per share, five calendar years down the road. And sure, if they really hit the numbers, it's not a stretch, it's justified the stock being an $85. But man, it's already trading 85 and 2028 is a long way, don't you think? Even the analyst throws in a caveat that, and I quote, selecting a price target is more an arc than a science end quote, which I read is kind of a sign of embarrassment. Of course, if you value a star like an Nvidia or an AMD on next year's numbers, then this would be a $32 stock. My view, I think it's insane to rely on projections for 2028 earnings. That's just way too far out. If we accept that a star has the best connectivity technology, we don't know how protected they are from competition. Who knows if somebody else will come up with something better a year or two down the road? In the end, you need to make some incredibly aggressive assumptions to justify a star's valuation here, even with the ease why the heck would you buy an $85 stock with a $85 price target? That's no website. Looking at what people are paying for a star, all I can say is, well, it happens to be cheaper like Nvidia, which is trading in 32 times next year's earnings estimates, even though it's the hottest stock on the planet. And Nvidia always turns out to be cheaper than it looks as they beat the earnings estimates a huge over time. When you consider what a star labs actually does, offering chips and software from connectivity solutions, which can be customized for a customer-specific needs, they include it. The best comparison is Broadcom travel trust name that I will walk you through at Wednesday's Club meeting at noon. This one's had a great lineup, 112% over the past 12 months, but it still sells for just 23 times next year's earnings estimate and an even patient with modest dividend. Bottom line, well, a star labs has a good story and it is good. I think it'd be worth owning at some price. I think it's way too expensive at this price. Why pick through the nose for a star, where you can own Broadcom? Something very similar for much, much cheaper. In the end, I don't want you paying up for these smaller AI plays when the most direct beneficiaries are far less expensive. We're going to fill in California, fill. Hey, Jim, let's be with you. What's up? I've had about 20 years of listening to your show. A lot of good stuff coming out of that. Thank you. The stock I'm interested in is Oracle. It was about mid-100, the end of 23. Now it's jumped up to about 130. I wonder if Larry's brought in AI into the situation. The Oracle quarter was very good and I always mention you got to mention the bam with the good. I did not do well at Oracle for the club. I gave up too soon. It's had a really nice move. I think he can go higher. Let's go to Georgia and Maryland, Georgia. Jim, MongoDB. I bought it at 455. Do I hold it, sell it? Yeah, this one has really confounded people. It's confounded people because the growth did slow. I think we have to get, you know, what can I say? I can't tell you to sell it here. It's just down so much from its high, but that was not the quarter I was looking for. I got to be honest, just wasn't. Let's go to Tommy in my home state of New Jersey. Tommy. Hi, Jim, this Tommy. I've been looking at Salesforce and I want to see. Does it have to still have room to run? I think Salesforce is good. Okay, so Salesforce is a stock where when they put the quarter, which will be at the end of May, I think it's going to be good. I think the stock can trade higher because it's not as expensive as some others in its cohort, but paying $306 with the dollar break. Let's wait till it comes to animal. I do have a nice position in the travel trust. Let me advise further, when we convene our Wednesday club meeting at noon. All right, I think the stock of a stir alive says a good story, but it's just way too expensive. It's current price. That's okay. Why pay up when you can get a proven name like Brocon for a lot cheaper. Hey, much more made of money yet. I'm getting a handle on cabinet supplier, Masterbrand. See whether this newly standalone company has a place in your home and your portfolio. Then today, we saw a two bottle names following a Disney move hire. So could these moves be sustained? I'm giving my title the latest out of the season. You don't want to miss it. You know, of course, all your false rabbit farts tonight. This is the lighting mouse. So stay with Kramer. Later this month, we spoke with fortune brands, which is doing very well right now, thanks to the housing shortage. But a little over a year ago, they spun off their cabinet business as Masterbrand. So how's that going? This is the largest manufacturer of residential cabinets in North America. You might know them as mantra, diamond, omega, a lot of other brands too. If you're big on remodeling last month, they reported a better than expected quarter with a strong full year forecast. And this stock gave you a nearly 97% return in 2023. It's now 25% year to date already. So can you keep running? Let's check in with Dave Banyard. He is the president and CEO of Masterbrand. You better meet on the situation. Mr. Banyard, welcome to May of Monday. Thanks, Jim. Great to be here. Right. First, this is your first time and you have a true experience. You're going to give you a floor to tell people why they should be buying the stock of Masterbrand. Well, Jim, like you said, we're the largest in North America. But the reason that we're great is we cover the entire market. Our channel coverage, we have every channel that you can have in this market. Plus, we have the full product breadth. So you can buy everything from a very basic cabinet all the way up to a fully customized kitchen from us. And we do that with a great operational footprint and a great business system that drives our business. Now, I want to talk about that because one of the things that's amazing is you, your free cash flow has almost doubled even as your revenues have gone down. Explain to people how it is possible to make so much money in a declining revenue environment. Well, it really starts with the strategy that we've built. And there's three big pillars to our strategy. Align to grow, lead through lean and tech enabled. And they do work together. Align to grow is about getting everybody in the company, the organization, as well as our teams aligned around what the customer needs. So you're delivering what they want. Okay. And then lead through lean is all about doing that in the most efficient possible way. I know you're familiar with lean manufacturing. We love lean manufacturing. I learned how to do that at Dannerher. And I brought it over here. And we've transformed this company in a way that we do things as efficiently as we can. And we empower our team to be able to do that. Okay. It's very funny because when we went over, we said, Oh my God, it's Danner business systems. He's doing Danner, which we think is, by the way, we have a big position down here for my child trust, because Danner business systems is about doing a thing. Well, go ahead, describe because it's a remarkable way of doing business. It's not like anybody else. And it's actually hard to do. I mean, the tools are all available to anybody on the internet. But really what it is, Jim, is it's the best associate engagement tool out there. Because you're empowering people to fix the work that they're doing. I'm not doing this. It's my team that's doing this. It's everybody on the plant floor. When they see something wrong, they have the tools to fix it. And it's a really fun place to work when you do that. Now, you've got to be on the workout for acquisitions because you want to be in every nook and cranny. You can dominate this category. Well, we were built by acquisition over the last, you know, 20, 25 years. We've done that. Last year, we really focused on using our cash to pay down debt. Obviously, when we spent, we had to pay a dividend to fortune. It was around $900 million. And the fourth quarter was hurt by that interest charge. Well, that's part of it. I mean, we didn't have debt before we spent. So you had to factor that in. But, you know, we set our goal last year to really pay down debt and get ourselves into what we feel is a comfortable leverage ratio. Now that we're there, and we spent a lot of time last year building this, we think we have a good acquisition pipeline. And there's opportunities out there. We'll use our cash for that if the opportunity arises. Yeah. But there's still plenty of cabinet companies out there that we think are perhaps worth owning. Okay. So I, as a potential shareholder, want to know what is the dealer channel? What is the retailer's home center? There we go. Home Depot. Right. And what is the builder channel? And where would I find the different brands? Yeah. So you really spray the market into two big pieces. One is new construction. The other's repair and remodel. New construction, we go direct to the large builders, companies that I know you know well, and are pulty. And then to some of them, we service through distributors. So, and the weird part about cabinets is builders expect us to install the cabinets. So we do that in some cases when we're going to direct to a builder. In other cases, in other regions where we don't feel we have the efficiencies, we partner with the distributor, typically smaller privately held companies that help us do that with the large builders. Okay. So that's one portion of the market. Okay. So let's say I want to be in the custom premium, a star market ultra craft omega. Do as rates come down, would I expect more people to gravitate toward that end? I think it all depends on, first of all, the house that you own. I mean, you don't really want to make your house more expensive than it should be. So there's a variety of different brands. Why would I like that? I think that there's a, you know, there's an element of, you know, making your house look appropriate for the size that it is, the configuration that it is, and so forth. And the more custom you get is really designed for probably larger homes, homes that have a lot of different spaces that are harder to work with and yet to customize. You can get into a beautiful kitchen in the aristocrat brand as an example without doing any customization. And so if you have a very standard sized home, that's the better way to go. It's a more economical way for you to go. Is it a, is it a, you have a lot of technology and the technology is also enabled you to make a lot more money per, I don't say per cabinet, correct? Technology for us is different than what you heard from Nick at Fortune Brands in that they're they're developing digital products. For us, technology is information. And how do we make information flow more seamlessly across the company and to our customers and to our consumers? So we were built through acquisition, a lot of disparate systems. Our data is in a lot of locked places hard to get. We have all that information. We haven't used it effectively over the years. And that's what we're really working on with our, with our tech enabled initiative. And it helps us go faster on a lot of the initiatives that we're working on. Okay. So let's say I believe that over the course of the next 18 months, we're going to start getting some rate cuts. It seems from everything I've read that you definitely expect business to get better as it's something that you're levered to. Well, the new construction market has been doing great despite the rates, because the builders are helping by incentivizing buyers with that. But in the repair and remodel market, I think the key thing with rates there is stability. And you've seen that over the last six to eight months, rates have held. And now people start thinking, well, I know rates are coming down in the future. They're more confident in being able to borrow that money. You know, when you see rates going up in the future or you see a lot of volatility, it's harder for the consumer to get their arms around borrowing money. Well, I think people are getting a gem. And I've always felt that because I've known this company for a very long time. This is terrific story. Thank you for coming on. That's Dave Banyars, the president's CEO of Master Brand. No, you haven't missed it. I know you think you may have because it's up a lot. But if rates come down, well, you just hurt. It could be terrific for the week to be modeling business. Man, money's back to the break. Coming up, Kramer takes your calls and the sky's the limit. It's a fast fire lightning round. Next. It is time for the light round, because that's what we're about. Cool. So, I'm going to start talking about myself a little bit. So, there are calls that I'm going to step into it. You play this out. And then the lightning round is over. Are you ready? He's dead out of the light round round. I'm going to start with Roy and California Roy. Hi, Jim. I appreciate your program and what you do. And thank you. I have a question about energy transfer partners. I like it. I think it's a very good company. Now, here's the only problem is it has run. But the whole group is indeed moving and it only yields 8%. Let's go. I mean, it just still got some yield to it. Let's go to Steve in New York, Steve. Hey, Jim, thanks for taking my call. I got a question regarding this AI is taking such a nice run. I took some profit off the table and looked at the first supply a little bit. I'm looking at the financial sector, especially private equity company called KKR. Oh, they're very good at what they do. I've known it for 40 years. They're just really good stocks. I had a big run now. And so it's Blackstone, but they're very good. And that's, I think they can make more money than they have. Victor in New Jersey, Victor. Hey, pull ya, Jim. How are you? I am good, Victor. How you doing? I'm doing fine. Thank you. Hey, Jim, I'd like to show and also love your interviews with Jason Wong last week. That's welcome. Thank you. Thank you. That was fun with Tenson. That was really great. Thank you. Great. Yeah, my question is back to Dickinson, the single BDA. But the stock has been getting crushed. It's really inexpensive now. I think it's a buy. You know, we had Tom Pono and I think he told a pretty good story, but nobody likes it. It's been flat. Now for months, I think it's some time to buy the stock. Let's go to Jeff and Massachusetts, Jeff. Hi, Jim. How are you? I'm going from Boston to the home of the next NBA World Champion Boston Celtics. Oh, you know the kid, or are you paying them that? I thought there was like a series that, well, go ahead, go ahead, what's up? Well, anyway, I just had to say that. I'm sorry. IOT, Simsura. Oh my god. This is the hottest stock and it's going to make money too. And it's really good. And I do agree. They do, you know, this is a dev op shop. Okay. When you can develop a platform that develops hardware software platforms. I mean, it's a hardware software platform. People love these kinds of stocks. They can't live without them. Let's go to Alessandro in New York, Alessandro. Hey, Mr. Kramer. Good afternoon. Thank you for taking my calls. Of course. Thank you. Thank you. A long time listener. Thank you very much for many of your recommendations. Oh, thank you. Without position or in tech. I was a little bit heavy. I brought some profit home. And I wanted to do some rotation. So I'm looking at a Rio Tinto. Oh, I think it's a great company to buy here. A mineral company. I think it's a terrific idea. I was looking at it myself as something to buy after Southern Copper's moved up so much. That's a really good idea. It's going to Andrew in New Jersey, Andrew. Hey, how you doing, Jim? I'm doing good. How about you? I'm going to do it myself. Thanks for asking. I wanted to refer to a reference you made with the AI race. You compared it to refrigerators and how we should be looking for a portal called Coca-Cola within the AI race. And so I was wondering if coherent corporation at a P.A. stock ticker, COHR. A lot of lasers, a lot of optics, a lot of good stuff going to make money this year. I think you're right. I would buy some here and then wait for it to come down. Let's go to Mark in Minnesota Mark. Jim, it's great to talk to you, man. Oh, thank you. Same, glad you're on the phone. What's going on? Yeah, you and Josh did early on that one and on doggies from the main society. All right. So I get a question about New Fortress Energy and F.E. But you know, this is West East. We have to have West back on. You know, the government decided they would have to put on pause any 2028 LNG with what just a dumb dumb idea. And that may have put New Fortress in a different light. I think this company is a buy. And I think West seems just absolutely terrific at what he does. I like that stock here. Let's go to Pete and Delaware. Pete. Hey, Jim. How are you? Thanks so much. I'm good. How about you? Great. Thank you so much. Hey, I want to get your opinion about, I think it's sort of a niche company representing the or largest economy in the world. California Resources Corp, C-R-C. Yeah, I've remembered that was spun off. Okay. So they're doing a lot of, they're doing a lot of decommorization. People regarding is that I would rather be in constellation energy. If I'm going to be in that, let's just go right to the source. Let's go to constellation. How about Jerry and Nebraska, Jerry? Hey, Jim. Thanks for taking my call. Hey, I read, I read soon that pure storage is providing customers with a nice framework to manage high performance data and computer requirements. And you're right. And you're right. And they're making money. And again, this is another stock that has run so much. I have to say, I have to buy you to buy some and then wait for a pullback. It's just run so much. Many of these lightning round stocks have run so much that I'm a little gun shy. That's why I say buy some in case it keeps going up. But don't buy all so you have some cash left. Let's go to Sharon and Minnesota Sharon. Hi, Jim. I'm a member. And I bought my first one third of the elf. And the problem, I guess it's a good problem. It's already doubled. I know. Elf is amazing. Tearing and then is doing a great job. He's doing much better than the stocks that I like in this segment. I would hold on to that. Don't buy more and don't sell. And that laying job version of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up, when has changed at the top, a good thing. Boeing and the Mouse House taught the street a lesson today. Kramer breaks it all down. Next. Change at the top can be good. A fight at the board level can be good too. Those are the easy takeaways from high level turbulence at Boeing and Disney. Today, both of these stocks rallied while management made dispute will cause these moves. I think the story's pretty straightforward. Boeing's produced from 179 to 191 over the past week. As being included, the current management had to exit it was ever going to put its manufacturing rig for the problems behind it. CEO Dave Calhoun would have to go. The chairman of the board would have to go. The head of commercial aviation would have to go. It didn't matter who the chairman of the board really was. There had to be a better person given everything that's going wrong here. It didn't matter who was building the planes that had about the operations had to go. Boeing had to appease the customers who were real angry because they spent billions on these planes only to be greeted with endless headlines about how they're constantly falling apart. They obviously had to appease the regulators too. And now that these people are stepping down, everybody's appeased. You see, that's how it works in corporate America. The institution needs to be preserved, not the people. So Larry Calhoun, the chairman of the board, had to be exchanged for Steve Malkoff. Even his calendar was the former CEO of Continental Airlines and Malkoff, formerly ran Qualcomm, which is nothing whatsoever to do with aircraft. Stan Dio had a commercial aircraft. We had to leave Pronto, but you should need a full guy. And to be fair, this division's a mess. Now, Stephanie Pope, Boeing's chief operating officer, takes over. Internal, not great, but let's see what happens. Calhoun gets to stay until the end of the year because there needs to be a process. But he's going as soon as the new CEO gets picked, no matter when. Then all the heat dies down, the regulators will move on, assuming Boeing can figure out how to safely build planes again. That's not an issue for the future. Oh, kind of yes, it is. I don't know. It's hard to tell what's going to happen. Without change, the heat would never go away, though. The FAA would always find against them, and the angry customers would stop being customers. How about this? This stock has been a horror show for ages, and the board hadn't really been doing its job until Nelson Peltz. Yes, the big-name activist investor decided to launch a proxy fight. Something that was sense of urgency and planned to take out costs. Now, the stocks fly almost a straight line from 88 to 119 since Peltz got involved. Amazing how much better the board can do when someone concentrates its mind and helps their feet to the fire. The changes are good. Disney's costs were too high. Company was initially going to take out $5.5 billion in costs down at $7.5 billion, a lot of costs. The board didn't seem to have a lot of heat on themselves to find a new CEO, or they wouldn't have invited the old CEO back. The board's job is to have a succession plan. If they want to beat Peltz, they need to cut costs and come up with a solid succession plan for Bob Iyer. They did the first. I figured it'll do the second because they hate the notion that Nelson Peltz is joining the board. Anyone but Peltz? That's why the stocks go in higher. Disney's board, especially its CEO, is desperate to stop it. That means doing things that they wouldn't otherwise do, including some things that are really good for shareholders. If not for Peltz's involvement, I think this dog was stopping right back to the 80s. Now, notice I'm not talking about anything involving the building and planes or the making of TV shows or movies or running theme parks. I'm talking process. If you own the stock, be grateful. The process is working and these institutions are being preserved. Like I said, it's always a more market summer and I'm pumped out to find it just for you right here at Mid 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. The spirit of performance defines Acura and now it's electric, introducing the all-electric ZVX, Acura's most powerful SUV yet. While what powers their cars may change, the energy that makes Acura never will. Crafted using the same formula that brought them electrified supercars and multiple MSA championships, the ZVX has tracked tested performance that packs an energy all its own. 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