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Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 4/5/24
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Learn more at Capella.edu/accreditation. 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! I'm moving friends. I'm just trying to help you make some money. My job, not just entertainment, educate, teach. Call me 1-800-743-CMC. Tweet me at Jim Kramer. It's time to speak the truth about the Fed and its minions. Far too often people play what it's become actually an absurd parlor game of parsing every word out of every Fed official's mouth. Anytime someone mentions a ray cut, it's, oh, how many? When? Where? You've heard it endlessly. But on a good day, they'll jump 307 points as we gain 1.11 percent. Now, as that pull water 1.24 percent, I need you to understand that you don't need to take these comments so seriously. When Fed officials blather all the time, making projections, pontificating, each new speech is treated as gospel. I can't take it anymore. Most of the time, these comments are full of sound and fury, signifying nothing. They just aren't that consequential, but we sure don't treat them that way. Within the last week, I've heard that we might have two cuts, three cuts, one cut, maybe no cuts. There's no consistency from these people and no consensus. Fortunately, there's one member of the federal marketing committee who takes a common sense approach to waiting to see how things play out, before making any big decisions. And it's the guy running the show, Fed Chief J. Powell, where it hurt us to just emphasize him and stop the maybe two, maybe three, maybe three card montage riddle. Because these other officials won't keep their trap shut, we get this guessing game where everyone tries to figure out what the Fed's going to do, even though their comments really don't give us much insight at all. But here's what you need to know. Investing is not a repeat, not a game. You simply can't afford to take your cue from this nonsense. Why? First, because Powell is all that matters. But second, when it comes to stocks, as long as the rate cuts are in front of us, they can rally. Doesn't matter when, doesn't matter how many cuts. What matters is the Fed wants to be our friend. That's the takeaway. At this point, nobody knows how many rate cuts we're going to get. That's ridiculous. That includes Fed Chief J. Powell, although that doesn't seem to stop at any of these pop-offs. You need to understand that the period before the first cut is Nirvana for the stock market. This is the ideal moment where the economy is chugging along just fine. We know we're going to get some relief from the Fed eventually. But by the time they actually start cutting rates, the economy will slow down. And that's not good for your preferred. This is the sweet spot. People, somehow people seem to think that the market can't go higher without rate cuts. That is just patently false. I could as far as to say that the whole dialogue about these Fed officials is just dead raw. The part of the game of guessing when or how many is pointless. What matters is whether they even need to cut rates at all. Case in point, this morning we got a robust employment report with some fairly decent wage inflation numbers. If you heard from a Fed governor this morning, "Oh, I'm sure what they would've said." They said, they said, "Oh, maybe one cut, maybe two cut, maybe no cut." And that's all anybody would focus on. But after such an encouraging labor report, the narrative should have been something like this. "Oh, good. Good for stocks. The economy's still humming. We're going into earnings season with a strong consumer. There's no need for the Fed to do anything for the moment, but it's pretty darn good. If we weren't more focused on these positive, people could have gotten a jump on today's terrific rally." That was easy. Yes, certain people blame themselves on a Fed official who questioned the need for rate cuts, but that's not really what happened at all. If you simply looked at the timestamps of when that sell will begin, you'd see that it was totally in conjunction with the spike in oil prices. No doubt related to the latest scare in the Middle East, yet it was crude, the war premium. Not the Fed speak that was almost universally credited or blamed for the action. Full snare of alert. So going forward, I'm begging you to tune out this bladder. It's hurting our ability to make money into the market. At best, it's a distraction. At worst, it's a misdirection play, and it won't go on hearing mad money. Either way, just ignore it. Without mind, let's go over the game plan of what we've got, okay? It's specifically avoiding the seven Fed speakers, including twos, P-twice, because you know what? They'll just send you in the wrong direction. Now, on Monday, I would call it the worst possible day for the solar stocks. It's a total eclipse to the Sun. We're going to hear a lot about the drawbacks of solar power, believe it or we actually will, and you know, it only works when the Sun's out. Hey, it's only wind when it works when it's windy. Personally, though, I prefer an alternative. I prefer energy focus on wind. I'm not solar, and that gives me, brings me to GE Vernova, with it's gigantic service revenue stream based on windnills. If you want renewable energy, you got my blessing to leg into that one, just spun off this week from General Electric. Earlier this week, I told you about a group of stocks that I've ignored for years, and that is the cannabis stocks. I thought they're a waste of our time, but now at the Florida Supreme Court this week, allow cannabis on the ballot in November, it looks like we're going to take another major stake coming out for recreational weed, assuming 60% of the people vote. Yes, if you want to bet on this, I go with canopy growth, CGC. It's almost a subsidiary of Constellation Brands. I'll talk about that in a second. Many traders prefer till-rate, though. I'm going to go back to a well that I have not visited in years, and I'm going to list the till-rate covers. I want to hear what they have to say about this Florida vote. Wednesday here, this is the number that we're going to hear about, and it's worth listening to. It's consumer price index. This matters because of the CPI is too high. There's a possibility that long-term interest rates will go higher, which is actually important. I'll be focused extra special on rent, because we still got a massive housing shortage in this country, and that's without even factoring in the impact of immigration, legal, and illegal. We also get results from the airlines for the best set of financials, and that happens to be, at this point, Delta. I don't know if we don't count it. It's buying stocks right before the quarter, especially the airlines, but with a travel move very much alive, bolstered by this morning's rosy employment numbers. I think you actually give this one a try. Thursday, most important day when it comes to earnings for the travel trust, and that's because Constellation Brand reports. Yes, they sell, you know that this is the number one beer in the US by revenue, which is Medello. They make it, should have an excellent quarter and give us a good outlook. We know beer sales have been strong. The cash flow is bountiful, but Constellation still has to pay down more debt before shareholders can benefit much from it. You never want to be selling the stocks so close to taking a mile, though. Friday, the real earnings season does begin, and it is the parade that everybody talks about. Yeah, it's Wells Fargo, travel trust. They have JP Morgan, BlackRock, City Group, all reporting all at once. These financials are classic examples of what I'm talking about when I say it won't necessarily be good for the market when the Fed finally starts cutting rates. Why? Because you don't want an aggressive slashing of rates if you're a bank. Something like Wells Fargo, which we own for the travel trust, does well in a situation where rates stay higher for longer. The others aren't that different. Bottom line, if you only take one thing away from this screed I just gave you, it should be that you need to stop the fixating on the words of Fed officials. Stop worrying about how many rate cuts we're going to get and when or where or how. If you can't free yourself from this terrible parlor game, you're going to miss a ton of terrific investments. I'm going to start the question with Marsha and Washington Marsha. Hi, James. Good to get the talk to you today. Same Marsha, what's happening? Well, I'm a new member of the investing club and I'm looking at buying the Best Buy, but I'm wondering if I should be concerned about recent insider selling. Okay, Best Buy, first of all, thank you, remember the club. I like Best Buy because I believe we're going to see a radical refresh of PCs come this fall and well, she's going to start in July and people aren't. They're not focusing on this. They're making a big mistake. The PC refresh cycle is going to drive Best Buy higher. Meantime, you'll be protected by the yield. I am urging people to get long Best Buy. Quickly, club members know how much I like the stock. I'm trying to buy it and get bigger if it goes down. Brian and Connecticut, Brian. Hello, Jim. Thanks for taking my call and thanks for the great work you do with your charitable trust. Oh, thank you, Brian. I'm proud that I've given away more than $4 million. Thank you very much. Thanks for giving back. Hey, Jim, my question is about AT&T. I inherited some AT&T back in 2016, cost basis of Virginia shares about $43 a share. It is tight and even with the reverse more stress, the Warner Brothers, it's still bad. What do you think about the management, the company, and the stock? You know, my nat, Mary always said, if you don't have anything good to say, don't say it. So let's go to, oh, that's it for the calls. I want you to stop fixating so much of the words of Fed official people. Stop worrying about rate cuts or when or where or why. That's a terrible game and it's going to cause you to miss a lot of terrific investments. Oh, may I mind tonight? Oil spiked yesterday, causing a selloff, the likes of which we haven't seen since last year. So I'm going to review, going to my favorite guy, Rusty Brazil, to find out what the heck is going on with the price of oil. Get a sense of where the market's headed. Then we'll continue our series on successful small caps by covering the healthcare space. I'll share some names I'm watching as we put together a basket of great smaller caps. And this week was a humbling reminder to keep you in reverse by closing and help you withstand some volatility. So tonight, we're playing M, I diversified to see if your portfolios can pass the muster of Cramerica. So stay with Cramer. Don't miss a second of Mad Money. Follow @chimcramer on X. Have a question? Tweet Cramer. #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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Leveraging over 140 million qualifications and preferences every day, Indeed's matching engine is constantly learning from your preferences. Join more than three and a half million businesses worldwide that use Indeed. Listeners of this show will get a $75 sponsor job credit to get your jobs more visibility at indeed.com/madmoney. Just go to indeed.com/madmoney right now and support this show by saying you heard about Indeed on this podcast, indeed.com/madmoney. Terms and conditions apply. Need to hire? You need Indeed. Everybody's watching this for this running well up more than 20% year today. This is a major component of inflation and we all want it cheaper, especially the pub. But between OPEC and France hold the production cuts in place. Let's call it elevated tensions in the Middle East. The price of crude, it just can't seem to find a top. Plus, in a little facetious, but we've got to deal with this. We have a total solar eclipse on Monday, worst day of the year for the solar power companies. Yes, we do want to rely on renewables, but you need reliable sources of energy and I don't know whether the solar can really deliver force. So in this equation moment for the industry, I want to check in with the smartest energy analysts in the game. Rusty Brazil, the factory second chairman of RB and energy. Rusty, great to have you back on man money. Oh, good to see you again, Jim. Okay, so Rusty, I do want to talk about the solar eclipse, which you did a great piece at RB and about it. But let's deal with the reality of what has happened here. You and I both know we have a lot of oil in the Permian. We don't necessarily have a red hot economy. We seem to have suddenly though gotten very, very tight and well. A lot of people talking about 100, a lot of people talking about 100 plus. Will you please tell me what's going on and when this can stop? Yeah, well, you know, what's going on, Jim, is we're back into a war premium again. So we've got at least a $5 war premium in the market because of what's going on in the Middle East. Then OPEC has done, you know, for them a good job in extending their cuts out, at least right now until June. And you've got the in Ukraine, you've got attacks, drone attacks from Ukraine on Russia refineries. That's tightened things up. And then here in the US, although the Permians doing okay, frankly, production has not really increased in the last six months. So you put all that together and we're right here on the verge of the summer driving season when we're going to start using a lot of gasoline prices are up to a crude oil prices in the US or up to 87 bucks. That probably went higher. But Rusty, if I were OPEC plus, I would say, listen, we got to get it back down or the US is going to start drawing all over the country. Yeah, but you know, we've got this thing called capital discipline now, Jim. And so when crude oil prices increase, it's no longer drill baby drill like it used to be. We're going to increase drilling by some, but we're also going to be basically taking the cash that we're making from the higher prices and paying it back in one way or the other to our shareholders. And that's the way it's worked for the last three years. And that's the way it's going to work this time around. Why are people mostly playing it by owning every single refiner there is? Say that one more time. They're refiners. They're the ones that are really going nuts. Why are they making so much money? Great. Yeah. Yep. Refiners are doing well. Margins are good. Margins of gasoline are better than they've been for a while. And therefore, we're going to be doing just fine in terms of marginal profitability over the next couple quarters. Well, then I see why everyone's buying the valeros and the marathons, but also the ex-stones and the chevrons. Now, on Monday, we do get a total of cups of the sudden. The reason I do want to talk about this is because there are a lot of people feel we're going to get 25% of our energy by 2030 by solar, 25% by wind. Events like Monday make me feel like that could be a pipe dream. What do you think? Well, we're going to have a lot more wind and solar than we've got right now, but the example of what's going to happen on Monday, I think, is one thing that we really have to consider in terms of how big a deal this is ultimately going to be. Because on Monday, we're going to have, it's just going to hit mostly here in Texas where I live. And the solar is probably going to get cut by 90%. But it's only about 10% of the whole total generation mix in Hurcott, the area, the operations group that handles most of Texas, and the big scheme of life, all they're going to do is just crank up gas-fired power generation in order to make up the difference. And that's the problem. Like we've always talked about before, sometimes the sun doesn't shine, sometimes the wind doesn't blow, and whenever that happens, until battery technology can take care of it and so forth, it can't, then the backup fuel is natural gas, and that is just simply going to become more and more of a problem as wind and solar become a larger percentage of the generation mix. Fair enough. Now, how about the action between the White House and the oil companies first, and that it looks like they didn't refill the SPR when they had a chance, so there's not enough oil to dump and get gasoline down. And then secondly, this decision to be able to look applause with LNG, that turned at that big implications that they seemed to realize, didn't it? Absolutely. It's such a shame, Jim, because although the pause that they kicked in, it's not going to affect what's going on in the market right now, and it's not even going to affect what's going to happen with the various terminals that have already achieved their approvals. But for any project that was currently under development, that was trying to get approvals, and trying to get folks to sign up for that capacity, that pause just through cold water on the whole thing. Put yourself in the position of a buyer of LNG. You absolutely, positively have to have certainty of supply. And now, what you just heard is that I can put out a press release, and the administration can put out a press release, and all of a sudden, I don't have that certainty of supply anymore. And that means that as a buyer, I've got to look someplace else. I can't trust the United States to be there when I need them. And that's a shame. Rusty, I here's what I don't understand. The whole world recognizes we've got to go from being all renewables to being pragmatic about energy. Pragmatic means we have to worry about energy security, but the White House clearly does not think about energy security if they're talking about a pause in 2028. That is absolutely true. And what would really be a shame, Jim, it turns out that as a lot of folks seem to be saying that this is really kind of a political bargaining chip in the first place, we've sent a really bad signal to the world. Boy, I don't understand this. All right, so let's go over. We look like the oil could easily go over a hundred. We don't necessarily have that sure that we might have thought for LNG, even though we got a ton of it. And in the meantime, we have parts of the country where LNG, you can't give it away. Yeah, but Jim, when the hundred bucks, it's not going to be there for long. You know, we've been for the last three, basically three years, we've been in a $70 to $90 trading range. And I think we're going to stay there. So we may bump up to a hundred bucks for a while, but it's not going to stay there very, very long. The supply-demand equation is going to pull those prices right back down in the same range that we've been for three years. So therefore, the inflation that people are worried about from it is maybe that's an overblown concern. I think it, well, you know, $90 is higher than $70, so it's non-trivial. But in terms of going to a hundred bucks and staying there for three years again, that's not going to happen. All right, well, look, you leave us with some hope, but obviously we're concerned about many of the other things, because it doesn't seem like everybody's rowing together in this country about this. Rusty Brazil, you remain the founder and executive chair of RBN and our leading authority, and Trusser on "Mad Money." Rusty, it's so great to be here on this show. Thank you so much. All right, thank you, General. Talk to you soon. Everybody's back here for the break. Coming up, no small stakes in health care. So which small cap stocks in this cohort past the physical? Find out next. Fact, running a business is not getting easier on your wallet. With higher expenses on materials, employees, distribution, and borrowing, everything costs more. Also, a fact, smart businesses are reducing costs and headaches by graduating to NetSuite by Oracle. NetSuite is the number one cloud financial system, bringing accounting, financial management inventory, HR, into one platform, and one source of truth. With NetSuite, you reduce IT costs, because NetSuite lives in the cloud with no hardware required, accessed from anywhere. You cut the cost of maintaining multiple systems because you've got one unified business management suite. You improve efficiency by bringing all your major business processes into one platform, slashing manual tasks, and errors. Over 37,000 companies have already made the move. See how you'll profit with NetSuite, and then you can think of all the ways you could be spending the money you save. Company retreated malibu, anyone? Now through April 15th, NetSuite is offering a one-of-a-kind flexible financing program. Head to NetSuite.com to start saving. [Music] Like I've been saying all week, I think 2024 could only be the year that small cap stocks get their mojo back. This equipped the one out of style and interest rates soared, and they'll work a lot better as rates come down. Oh by the way, as has been typical, they drastically underperform the S&P again in today's rally. That's why I'm going sector by sector to identify my favorite small cap names from when they're ready to move. Last day, it was the industrials. Today, I want to focus on healthcare. That's the second largest group in the rest of 2000. There are 408 healthcare stocks in this, most of which are biotech names and most of those are bad. When you drill that into the ones in our target market cap range with positive areas and reasonable valuations, too, it leaves us with only 48 stocks. Let me give you my top five of the 48. First up is integer holdings, which is one that I haven't talked about at all before. Integers are major outsource manufactured medical devices when avid labs, that's a travel trust name or Boston scientific or metronic designs. They go to these guys to actually produce this stuff. I think this company benefits from high healthcare utilization rates, as you could take years from people to get all the non-urgent procedures they postpone during the pandemic. Energy makes regular tuck-in acquisitions to keep its technology portfolio fresh. You might think there's nothing special about an outsource manufacturer, but I beg to disagree. When you're producing, say, a pacemaker, that requires real expertise, not just anyone who can get these things rolling off the assembly line. Second small cap healthcare name I like, how about progeny? This is a unique story that I've been loosely following since the company came public nearly five years ago. Had them on the show roughly a year and a half ago. Prodigy is a fertility benefits management company. Businesses sign up with them to offer fertility and family building benefits to their employees. Prodigy acts as a consultant of sorts for all of its clients and employees. Also, they help them pay for expensive fertility treatments. This company's been a truly rapid grower, but the stock doesn't reflect any of that growth. After being run from the teens in early 2020 to the high sixties in late 2021, Prodigy pulled back hard in 2022, and the stock's been stuck mostly in the thirties ever since then. Sideways. Sideways, by the way, is a direction. Of course, some of these, that's because Prodigy reported its most recent quarter of late February. They delivered what I call a set of mixed numbers, and that was mostly because of some timing issues and mixed shifts. On top of that, the guidance was downright confusing, and that's why the stock sunk 15% in a single day. But I think the business remains good. They're talking about 18 to 21% revenue growth. I like that. That's this year. 10 to 14% earnings growth. That should get them a high multiple. As I see it, the stock's enticing. At the end of the day, we still have a labor shortage in this country, which means employers are willing to bend over backwards to recruit workers, and that means offering people various benefits, and that includes Prodigy for our third small cap healthcare fave. Oh, and old favorite of ours, Owens and Miner, which came on our radar screen during the pandemic because they're a major domestic producer of personal protective equipment. Remember PPE? At the time, this happens at five bucks a change. The company had a market cap of less than 350 million. By the mid-2021 period, Owens and Miner had climbed as high as $49, but once the pandemic tailwind faded away, the stock pulled back and pulled back hard. It's now come back to the mid-20s, although that's about, that's after steadily rebounding over the past six months. I like many other COVID plays. Owens and Miner put his pandemic ear profits to work by making a pair of acquisitions in the home healthcare space. Thanks to those deals coming out is what's called a patient direct segment, which has become a big growth driver. Sales up 24% last year. I like that. We model corporate some protective equipment in business actually declined by 1.5%. I don't like that. Now, Owens and Miner had an investor date event in December, where they rely on some very bullish long-term targets. For example, they're talking about earnings per share growing at a 20% compound annual rate film last year through 2028. Doesn't hurt that last quarter was strong with a solid outlook. I see Owens and Miner is another winner in the world of higher healthcare utilization, this big theme of ours. Now, while the rest is 2000 includes hundreds of biotechs, I'm not eager to recommend them because the individual biotechs are incredibly hit or miss. In the drug space I prefer the larger one, but sure form of suitable companies, or at least later stage biotechs that are close to bringing an actual drug to market. While I believe biotech as a group can thrive through the end of the year, speculating on individual small-cap biotech needs requires a ton of research. If you just want to bet on the group, go buy the field bets like I shares biotech ETF or IBB or the S&P biotech ETF, the XPI. Those will do it for you. That said, there's one I do like, that's called catalyst pharmaceuticals, a biotech firm with three treatments for rare diseases on the market. This company is more of an investor than an inventor. I do prefer the inventors, but listen to this, it buys up promising early-stage drugs that brings them to market rather than developing them from scratch. It's taken me a while to come around on catalyst. I talked about it in January and didn't love it, but the company just successfully launched its third drug last month, which matters because the previous two drugs go off patent and not do this in the future. And the best part, catalyst stock has done nothing since I told you we ignored it a few months ago. So you haven't missed anything. Finally, I've got one more small-cap healthcare play, and this is another new one. It's called Addis, A-D-D-U-S home care. One of the most vegetable themes in the industry is moving away from providing care in hospitals and towards other lower-cost settings, like outpatient treatment centers or even patients' homes. Addis home care offers a range of services, including in-home medical care and in-home assistance with day-to-day activities for people who need help. And less upbeat in-home hospice care, because nobody wants to spend their final moments in a hospital. Right now, Addis gets most of its revenue from Illinois, New Mexico, and New York, but they love to expand into new areas by making acquisitions like a $100 million deal to enter Tennessee last year. When Addis reported in late February, they delivered a strong top and bottom line beat, while the company doesn't give formal guidance, management sounded in an optimistic tone for 2024. The analysts have been falling in love with this one, and I think it's the sweet spot trend-wise. Bottom line, those are my five favorite ideas from the small-cap healthcare space with a nice mix of sub-sectors, don't you? They get some promising narratives. Now, you've got some new undervalued small-cap ideas for both the industrials and the healthcare sectors. Hey, listen, we're not done with this. Two back and next week as I come through a few more sectors, starting with the financials. There's a ton of them in there on Monday, because if this turns out to be the year of small-cap stocks, well, we need to identify the potential windfalls. That was easy. How's the pleasure? Rambo in California. Rambo. Booyah, Jim. This is Rambo in San Jose. Jim, it was so great to meet you at NVIDIA's VTC events a couple weeks ago. I like Santa Rosa, man. I toast you if we were there right now. Jim, I'm going to have to send a bottle of fuss forward to Hector for thanking him for setting up that introduction. Will you be the man in Hector? How much do we miss Hector? How great? It is fellow worshiped NVIDIA, who's just the best there is. How can I help you, buddy? Jim, I'm starting to invest in pharmaceuticals, and there is one company in particular that I'm looking at. This pharmaceutical is trading at a little PE of 13 because of loss of exclusivity on a couple of key drugs that they've got coming up. But the street just is not giving them any credit for some major acquisitions that they're making that are potentially going to help make up for that shortfall. The company has a dividend of almost 5%, but they've committed to on your show. And most important, they partner closely with NVIDIA for using gender to AI to advance drug discovery. Jim, should I double down on Bristol Myers, BMO? Okay, here's a problem for some Myers. When you listen to them, they're very objective. Hey, listen, it's not going to come together in 2030. They do say the dividend will be fine, but by 2030, you see that. And my problem with that is most people are going to be impatient. They will not wait that long. If you can wait that long and take that yield in the interim, I agree with you about the whole thing, but there's no patience on Wall Street for that one, even as you and I think there should be. Now, this turns out to mean the year of small cap stocks. Well, we've got to get a list of potential windfalls, right? Hopefully this one will beat your users. Now, we have so much man money, it's just outrageous. So I'll put some investors on alert to make sure you have a portfolio that they handle whenever the market throws it. So we now play our favorite, the game I know you love. We plan my diversified to see if your holders are defensive up, maybe they need to make some changes. Then one of the top semiconductor analysts on the street came out with a scathing note on Intel today, and this story has been a problematic one for me. So what I'm going to do is I'm going to share what I make of the chip maker with you. An oiler calls rapid fire in a special March Metas edition of the lightning round. So stay with The markets have been seesawing this entire week, haven't they? Dows down a percent one day, it's up to the next, it's like the old days. Let us the worst start though of any month from Dow. Get this 13 years. And times like these, a lot of investors can panic and end up making changes to the portfolio. They regret later, especially if there's some fed pop off who says there's no cuts. I always say no one ever made a dime panicking. You make money by doing your homework and sticking with the good ones. And that's why we're playing an I diversified. It's where you call me, you tell me your top five holders to tell you if you're a professor, maybe I'm going to mix it up a little. Let's play. Let's go to Chris. Oh, in Kansas. Chris, you're at first call. What do you got? Jim, thank you and your staff for having me on. I appreciate all the hard work y'all guys do. Thank you. Staff. Oh, thank you for being a member of the club. We had a lot of club members last night with my wife at my first four event. Does Kamino's, how can I help you? That's right. Thank you. I would like your opinion on my portfolio if able to come back like the Chiefs or fall apart like the Cowboys. Anything I could appreciate going to this market. My top five stocks are Pfizer, Ford, Disney, Sombre J, and Wells Fargo. Jim, and my diversified. All right. Let me go to work. Now, first of all, I am up. There's, for a moment there, I was just going to bless it anyway without looking at it because of what you said about the Cowboys. But you know what, I still have to drill down. I can't be that glib. Maybe one day when I'm for NBC sports. Okay. So Ford is going to have a major earnings breakout. Why? Because of the hybrids they have. And I've got one of them says my door. Okay. So Pfizer, we got a farm, a company, not good earnings, but that's all right. Well, as reports next Friday, the Disney company, well, we just saw what happened. We're going to stick with it as you remember the club. And SLB, they stop calling us slumbers. They don't ask me why. I always like slumbers, David. Now it's SLB. So we got oil. We got oil. We got drug. We got back and we got entertainment. And I'd say that how to the Chiefs is what I say, how to the Chiefs. You know what we're going to do? We're going to go to my home state now. Let's go to Debbie in Pennsylvania. Debbie. Hi, Jim. My husband and I have enjoyed watching you for years from our small towns just outside of Hershey, PA. Oh, my, I love it. Hey, you know, my wife is on the board of Bucknell. Not that far from you. What's going on? Yeah. Yeah. That is pretty cool. Time now. All right, let's go. So I own Apple, Amgen, Disney, PNC, and of course, Hershey. I diversified. You like it locally, right? I like that. I like people who support local, local, local. Okay. So we got a nice chocolate company. I think Coco Price is about to come down. That's going to really, we had that off the charts this week. That's going to cause a margins to soar. Apple, we own it. We don't train it. PNC is going to have a very good quarter. Less quarter. Wasn't a good stock balance right back immediately. Disney, we covered that. Yes. That's the one that Peltz lost. And yes, Bob Iger won. But I think everybody could win because the stock's up to the most of any downstock so far. And then Amgen, a little let down on some of the drugs. But you know what? We think Brad Boyce do it a good job. So we have a drug company. We got to entertain. We got a food company. We got a tech. We have a bank and we have entertainment. That was totally diversified. I mean, like completely and utterly like Max Max diversified. All right. Let's go to Zachary in New York. Please Zachary. Hey, Jim. Thanks for having me on. How are you? Actually, I'm doing okay Zach. How about you? I suffered through an earthquake today and I came out the other side. Me too. Yeah, I'm great. I'm ready for some college basketball. Well, that's what you're shaking to. Okay. Let's go to work. Yep. So my top holdings mostly due to their strong performance over the past couple of years are Nvidia, Microsoft, Apple, Uber and Pepsi. Am I diversified? Oh, let me go to work on that. Okay. Now, first of all, you need to know, yesterday at this mascot thing I did for my wife, I had my Nvidia hat on, and she said, take that hat off. Well, that stock does is go down. So this is the kind of the world we're in. We had this. I'm not kidding. Seven, take that out of your loser stock because it went down for like 10 days. Nvidia, the finest tech company of the year, Microsoft wishes I could say that. Apple used to be able to say that. Pepsi goes obviously beverage, but also free to lace. Don't forget that. And Uber. Well, what do we know? I was in an Uber last night. It was just okay. So we've got transportation. We've got beverage. Oh my, we've got three of the same. I have to do some work. Okay. So what we're going to do is we're going to get rid of Microsoft's really great. I have to admit, and we own it for the club. And we're going to sub out with Lily. Why? Because even though Lily's moved dramatically in the GOP desk once, they have not spoken for yet nearly enough. And then I don't know. Look, I'm going to violate all my rules because I have the two stocks that I believe used to be owned and not traded. I can't go against it. It's trumping my diversification. It's the only two stocks that trump my diversification. There's nothing I can do. Oh, do we have another contestant? Sure enough. Wouldn't you know? We have Betsy from California, Betsy. Hey, Jim, my four stocks are Ford, General Electric, Metta, Toll, and Valero. Am I diversified, Jim? Oh, Valero. Okay. This is like one unbelievable portfolio. I mean, Betsy comes to play. This is a better portfolio than anyone who was maybe best of your. Listen to me. Hear me out. Okay. For what we know, this is earnings break out coming because of the hybrids. Metta, I mean, this stock was like like up $730 today. I mean, the thing is crazy. GE, I've been actually looking at all the GE together. And it's now back almost to where it was before it had its apocalypse. Good job there by Larry Cole. Valero is the best performing refiner and the refiners are the best performers in this market. And then Toll Brothers is the best performing home builder, even though rates are up home builder, refiner, aerospace, Zuckerberg, and auto. Wow. Unbelievable. These were all really great. I think I'm going to go this weekend and look at the club holdings from away, ask Betsy what to do, and maybe I'm going to be back here for the break. Coming up, hit us with your best shot and electrified fast fire lightning round is next. It is time for Special March Business. This is the light around going to be taking calls from students from the schools in the final four rapid fire. You know, people love to show you today. I've been stuck with it by myself. So I started out by a step, but you played itself. And then the lightning round is over. Are you ready, ski, dang, I'm going to start with Dadoosh from the University of Connecticut, Dadoosh. Hey, Jim, thanks for having me on and go Husky. Go. I thought I was uber recently partnered with Waymo. He's autonomous vehicles for food delivery. What are your thoughts on this initiative and Uber's outlook over the next five years? Oh, I like Uber regards to Waymo. It doesn't introduce me. I think it's really well run. And I think this stock is a bye bye bye. Let's go to Will from NC State. Will. What's going on, Timothy? I don't know. We'll get ready for the big games. I hope you are too. Yes, sir. Yes, sir. Hey, I got a question about city group. Oh, actually, I feel better about city. I have it a long time, but that doesn't mean I'm not in favor of Wells Fargo. That's right. I think Charlie Sharp has. I think this could take out its old high from 2018. Let's go to Brooke from the University of Alabama, Brooke. Hi, Jim. How are you doing? I'm good, Brooke. How are you about you checking in? What's happening in Alabama? I remember them in the 20 to 24. That's a new thing for me, Bama. What's going on? Oh, just great. Love it. Love to see it. Would love to get your socks on ResMed. We have the old ResMed. I think the stock's been knocked down because of the GOP dash one. So they got a very good management. I'm okay with the stock. I'm right with ResMed. Let's go to Jacob. Oh, from the University of Connecticut. Jacob. Hey, Jim, it's Tesla undervalued, and should I buy it with this volatility? Which one did that be? Tesla? Tesla? No, Tesla's got some sort of like a grip of... Oh, here's the this one. It's got to change that address. Let's go to Sawyer, Jacob. Jacob, the University of Connecticut. Jacob, we thought we had jambies. We thought we had jambies in the world. Jacob! Jacob getting the paint. Come on. Let's go. They're traveling on the coach. I'm a big fan of the show. I've got two things for you. First off, let's go Huskies this weekend. We've got a big weekend ahead of us and Huskies. Second thing is, I'd love to hear your thoughts on SMCI's performance over the past couple of months. SMCI's complicated because you know I am an NVIDIA guy. Hold it, don't trade it. I am not going to go with the SMCI because that's not as good NVIDIA. I like the NVIDIA. Although, it was difficult to tell that my wife told me to take the hat off because all that stock does is go down and it's painful comments. I need to go to Ian L from the Crimson Tide, Ian University, Alabama, Ian. Hey, Jim, how are you doing? I'm good, Ian. What's happening? Oh, I'm with the dream. I've got a question for your fourth there. He's like there's a course there. Yeah, of course, this is why you're a first-timer and did a final four because you come to the course there. I thought you would give me like, I mean, like the end of it was, "Bam, a football, you would have come to me with the NVIDIA." I have to say, "X-Nay" on that one day. Let's go to Owen and see state, Owen. Hey, Jim, how are you? I'm good, Owen. How about you? Great. Thank you, taking the call. I had a question in the day about Blackberry. There's been those. They have a new leadership coming in, some cyber security technology that people like. You think it's a good growth pick? No. No, not at all. I was thinking, I happened to have a Blackberry for lunch and that didn't taste that good either. Well, I need to go to Grant University, Alabama, Grant. Hey, Jim. Hey, first off, Roll Tide. Second off, I'm with you on that. Apparently, I'll put in an asset manager's lately and we really like books, so curious to hear your thoughts up a stop. Brook, Brook. Brookfield? Hey, good. Well, we got one. I got, you know, sweet home Alabama. I'm with you on that one. The stocks moved up a little bit, but I'm okay with that. I'm getting right with you on that. I'm going to Aria in University Connecticut. Aria. Hey, Jim. I appreciate you having me on this show and we don't have to speak. I've talked to the about academy sports and outdoors. We can hear an outlook on the giving that the company is earning the weekly league, but overall has strong growth potential as a third-fashioned strategy to make the best. It's cheap. I don't know. I mean, it's just not compelling to me. I mean, boy, I want something I can really just say is great, great, great, and bye-bye, but that's not one of them. I'm sorry. Let's go to Wesley at NC State University. Wesley. Hey, how are you doing? I'm doing good. How are you? I'm pretty good. All right, that's good. I'm okay. How about you? Doing pretty good. All right. This is my question. What are your thoughts on the stock ALB? How are you doing? That's what I have to say about that one. Isn't great? Tough, good tough critics today, huh? The tourney. The tourney. Yeah, we got to get another tourney. Maybe we got like five more tourneys. Let's go to Yvonne from Browns in the tourney now. Okay. Yvonne from Brown University. What is this? What is this? Like the squash tourney? No. Okay. I really enjoy watching your show and I'm also a stock member. I was wondering what your thoughts were on Amazon and the announcement of eliminating their checkout list shopping technology. I like Amazon and I like Brown. I wish my daughter liked it more when she was up there. She did this. She did the thumbs down. Hey, by the way, I turned down Stanford or went back up school. Take that out, Wes. All right, let's continue this farce. Let's go to Trevor University. Hi, Jim. I just wanted to ask with the adventure of grail. What do you think about aluminum? No, no, it's no good. You wouldn't did her. Same business, better company. Actually, this was the best slightly round of the long time. I want to thank all the students participating, except for the ones that had those really bad stocks. And that, ladies and gentlemen, you're pushing up a lightning round. The lightning round is sponsored by Charles Schwab. Coming up, Lost and Foundry, Kramer explains why Intel is on the outside looking in. Next. It's not often that an analyst will simply eviscerate a CEO. Just take them apart. Usually when they want to criticize management, they put it diplomatic. And for the same reason the support supporters will hold off on track to your coach. They don't want to lose access to the locker room. But this morning, Stacy was asking, he's the top semiconductor analyst at Bursky Research published a scathing indictment of Intel's Pack Delsinger and the stock of the story chip company. The takeaway? Quote, "No real reason to be here until 2030," end quote. Those are his words, not mine. It's been tough for me to watch Intel steady decline. When I broke into this business, they were developing very exciting chips that became the backbone of the PC. We all know they had some real firepower at the top back then, Robert Noyes, Gordon Moore of Moore's law fame. And the toughest CEO I ever met, Andy Grove, who wrote my favorite business book of all time. Only the paranoid survived. They, in some sense, been CEO Craig Barrett, understood that Intel would crush everyone and own the market for microprocessors. The only other company that survived this competitor was AMD, but it wasn't much of a rivalry. We used to joke that Intel had to keep AMD alive, because otherwise they can't hit with an antitrust investigation for monopolistic practices. What people didn't know is that the old Intel had a secret weapon in his name was Jerry Parker. It was Parker's job to build semiconductor foundries at good prices and high yields. Parker, who worked in Intel from 1969 until his retirement in 2001, was like a machine. Each plan Intel put up was just like all the others, so engineers wouldn't really know what to do at any given plan because they were all familiar with it. The plants came in one budget and at one time technological marvels all. But then a series of Intel executives came and went. By the time they were done, Intel was the shadow of his former self, one that had outsourced a lot of his actual manufacturing to Taiwan, SEVY. Now our country, through the good work of Commerce Secretary Gina Ramondo, is trying to reassert itself as a major player in semiconductor production in part because we've got to diversify away from Taiwan fully because it would be so easy for the Chinese government to cut that supply chain off. Intel's playing a key role in this process. That's terrific, but it's not clear to me that Intel is going to do it all that well. In fact, this week Intel spelled out its foundry business will be a big money loser for years to come. I was surprised to see that statement about the difficulties of semiconductor manufacturing. Why? Because Pat Gelsky, the CEO, made a very promotional Pearson network two weeks ago, about a giant Arizona fab and Intel was building. Then on Wednesday, he reveals that the vision he was promoting had racked up operating losses of nearly $7 billion in 2023. Now, along comes Stacey Raskin at Bernstein, and he decides to tell her like it is. First, he says the goalposts keep moving. Intel's key rosy margin goals were booted from 2026 to 2030, hence the title of the piece, Intel CU in 2030. Then he lowers the boom on the Gauss school era with this incredible zinger. I'm going to quote this whole thing. Why do they do this to themselves? He goes on. Intel's story over the last several years has been one of dashed expectations from outlandishly bullish targets to keep product delays, to rampant channel stuffing leading to eventual abject collapse. Holy cow, that's an incredible kidney. Raskin somewhat physicians says that it took 10 years to get Intel into its current base position. So how could it take any less time to fix it? I've been very critical of it until during this period, and that's why I've endlessly told you to buy Nvidia or AMD instead. But judging by the founder fiasco apparently I've been a relative sweetheart versus this truth teller. Thank you Stacey Raskin. At least investors now know why they've lost so much money in Intel. During what I can only describe is a very peculiar era. Like I said, there's always more. I can tell I'm trying to find just for you right here, man. Money, I'm Jim Kramer. See you Monday, last call starts now. 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