When there’s no place to hide and all stocks go down at once, it has nothing to do with the companies themselves, Jim Cramer told his Mad Money viewers on Monday. All investors care about is inflation, Cramer continued, but if you wait until inflation is broken, it will be too late to buy.
Today gave investors a chance to buy stocks of major US companies at incredible prices. American Express shares (AXP) – Get the American Express company report were shot down today, despite the company smashing estimates and telling a great reopening story. Coca-Cola Stock (KO) – Get the Coca-Cola Company Report also beat profits, but ended the day down 1.8%.
Visa (V) – Get the Class A report from Visa Inc. achieved impressive results, but investors were unwilling to reward those results. Johnson & Johnson (JNJ) – Get the Johnson & Johnson report rose from $177 per share to $186, but quickly fell back to $177.
Investors simply pay less for everything, including Goldman Sachs (GS) – Get the report from Goldman Sachs Group, Inc., which now trades for just eight times earnings, down from nine times earnings. Investors don’t care that Nike (NKE) – Get the Class B report from NIKE, Inc. or UnitedHealth Group (A H) – Get the UnitedHealth Group Incorporated report had remarkable neighborhoods.
But while the pain for these big American companies isn’t over, investors can’t wait forever to buy, Cramer concluded. Once inflation is finally broken, there will be no time to buy. Now is the time to start thinking about buying.
Executive Decision: AeroVironment
In his first “Executive Decision” segment, Cramer spoke with Wahid Nawabi, Chairman, President and CEO of AeroVironment (AVAV) – Get the report from AeroVironment, Inc.the manufacturer of industrial and military drones which plays an important role in the conflict in Ukraine.
Nawabi said AeroVironment has the capacity to produce thousands of its Switchblade drones to help Ukraine, but is limited by parts and semiconductor shortages. The drones are approved for export to many allies, including Ukraine.
Asked how drones work, Nawabi said there was simply nothing like it on the battlefield and their effectiveness was unparalleled. Drones can be flown by a single pilot and are capable of taking out a range of targets, including tanks.
AeroVironment shares are up 38% year-to-date.
Executive Decision II: Best Buy
For his second “Executive Decision” segment, Cramer also spoke with Corie Barry, CEO of Best Buy (BBY) – Get the report from Best Buy Co., Inc.to discuss the company’s play cycle and community initiatives.
Barry said that while some investors are worried about the “gaming cycle,” the gaming market has grown far beyond consoles. Between esports and social gaming, the gaming market no longer depends on console sales cycles like it used to.
Barry also said Best Buy is no stranger to giving back to the communities they serve. The company now operates 46 teen tachometer centers, which help students learn about technology they wouldn’t otherwise be exposed to. Whether it’s photography, graphic design, video production or coding, Best Buy’s programs, which partner with nonprofits, take students from classrooms to certifications to technology careers.
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Best Buy has also been active in responsible technology recycling, having handled more than two billion pounds of electronic materials. Best Buy will even come to your home to pick up unwanted electronics and make sure they’re refurbished or recycled responsibly.
Executive Decision III Five9
For his final “Executive Decision” segment, Cramer checked Rowan Trollope, CEO of Five9 (IVNF) – Get the report from Five9, Inc.the virtual assistant company whose shares rose 9.4% over the past week after reporting strong earnings.
Trollope said Five9’s business is still the same and his company continues to “kick ass”, replacing outdated phone tree systems with modern virtual assistants powered by artificial intelligence.
Five9 helps customers stay focused on their customer experience, driving automation and efficiency that gets customers what they need in the shortest possible time. Trollope said customers no longer want to pick up the phone and wait on hold, they want to interact with businesses online and via text, which Five9 can provide.
Five9 has partnered with big players like Microsoft MSFT and Google GOOGL to make sure their systems are the best in the world.
In the Lightning Round, Cramer was bullish on SoFi Technologies (SOFI) – Get the report from SoFi Technologies IncNXP Semiconductors (NXPI) – Get the report from NXP Semiconductors NVON Semiconductor (ON) – Get the ON Semiconductor Corporation reportEdwards Life Sciences (EO) – Get the Edwards Lifesciences Corporation report and Magna International (MGA) – Get the report from Magna International Inc..
No caucus infraction
In his “No Huddle Offense” segment, Cramer offered a different take on those who think inflation is now rampant and will be with us forever. “Don’t discount the ingenuity of the Federal Reserve,” Cramer said, especially at a time when inflation may have already peaked.
In industry after industry, he argued, we are already seeing signs that inflation is peaking. Just look at Nucor (NUDE) – Get the Nucor Corporation report steel, Alcoa (YY) – Get the Alcoa Corporation report for aluminum and Weyerhaeuser (Wyoming) – Get the Weyerhaeuser Company Report for wood. All show signs that we may have already seen the summit. Then there’s Freeport McMoRan (FCX) – Get the report from Freeport-McMoRan, Inc., the copper miner experiencing a slowdown in China. Even in trucking, FedEx (FDX) – Get the FedEx Corporation report and inverter (UPS) – Get the Class B report from United Parcel Service, Inc. plan to lay off drivers, which will contribute to the shortage of truckers elsewhere and reduce wage pressures.
Finally, there are used cars, where Carvana (CVNA) – Get the Class A report from Carvana Co. and Carmax (KMX) – Get the report from CarMax, Inc. show signs that used car prices may have finally peaked.
IF these early signs are true, that leaves only oil, natural gas and housing as inflationary, and housing is already starting to slow as interest rates on mortgages and house prices rise every of them.
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