Cramer’s Crazy Money 5/9 Recap: Nvidia, Rivian, GoodRx


When all else fails, well, that’s about the bottom, Jim Cramer told his Mad Money viewers after another dismal Monday on Wall Street. It was the day we saw the last beloved sector of the market – oil and gas – start to sell off. With nothing left to sell, the bottom can’t be far away.

It’s hard to recommend stocks when everything is down. Even stock like Nvidia (NVDA) – Get the NVIDIA Corporation report, which now trades at just 30x earnings, is cheap compared to its peers. But with its peers also selling, even that great valuation is in question.

There are still a number of different groups that sell stocks. The first group is looking for income, taking refuge in security and the 3.3% yield of the 3-year Treasury note. These investors are not likely to return.

The second group of sellers are fund managers and hedge funds who are forced to sell in order to meet margin requirements. A similar group of fund managers are forced to sell just to stay alive. With stocks like GoodRX (GDRX) – Get the Class A report from GoodRx Holdings, Inc. plunging 33% and Rivian (SHORE) – Get the Class A report from Rivian Automotive, Inc. 20% drop, there are few places left to hide.

The fourth group of sellers are the individuals who bought shares of memes and other speculative things, like crypto, and have now been totally blown out of the water.

But all those sales will end up being a blessing, Cramer concluded. Eventually the sale will end and those of us who survived will live to play another day.

Executive Decision: American Electric Power

In his first “Executive Decision” segment, Cramer spoke with Nick Akins, Chairman, President and CEO of American Electric Power (AEP) – Get the report from American Electric Power Company, Inc.the Ohio-based utility whose shares rose 12% for the year on the back of a 3.1% dividend yield.

Akins said America continues its transition to a clean energy economy, and AEP’s wind projects alone have already saved their ratepayers $3 billion. In total, AEP plans to have 16 gigawatts of renewable capacity online by 2030.

Russia’s invasion of Ukraine shocked the global energy market, Akins added, and demonstrated the importance of a balanced energy portfolio. Countries like Germany, which now depend almost entirely on Russian natural gas, are paying the price for not investing in other options. The world must respond to this crisis, he said.

Asked about the U.S. economy, Akins remained optimistic, saying he saw strength in manufacturing as well as data centers and with special projects like semiconductor manufacturing, which is seeing a resurgence in states. like Ohio.

Executive Decision: Papa John’s

For his second “Executive Decision” segment, Cramer also spoke with Rob Lynch, President and CEO of Papa John’s (PZZA) – Get the report from Papa John’s International, Inc.the pizza giant that faces tough comparisons to last year at the height of the pandemic.

Lynch said Papa John’s had 10 straight quarters of outperformance and was pleased with their quarterly results. He said that although food prices continue to rise, they have been able to offset these increases through productivity and efficiency.

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Staffing is also starting to improve as people slowly return to the workforce.

In China, Lynch said, Papa John’s currently has 250 locations, with many areas still underdeveloped.

Papa John’s continues to gain market share through food innovations, Lynch added. New items, like their Pepperoni Stuffed Crusts, are proving to be a big hit with customers.

Executive Decision: XPO Logistics

For his final “Executive Decision” segment, Cramer checked on Brad Jacobs, President and CEO of XPO Logistics (XPO) – Get the report from XPO Logistics, Inc., which splits and splits in half to release value. XPO shares trade at just nine times earnings and fell another 5.1% on Monday.

Jacobs said XPO had another strong quarter, with its highest revenue and earnings per share on record, but investors are still struggling to give stocks the credit they deserve. By splitting in two, he said, there will be two single-purpose companies that should be much easier for Wall Street to value and appreciate.

“Our shares won’t be trading for long at nine times earnings,” Jacobs assured shareholders.

Asked about the ongoing supply chain disruptions, Jacobs explained that the labor shortage was starting to improve and goods were starting to flow again. However, with China in lockdown and Russia disrupting Europe, it may take some time for some products, like food and semiconductors, to grow.

lightning tower

In the Lightning Round, Cramer was bullish on Excelerate Energy EE and Equitrans Midstream (TEN) – Get the report from Equitrans Midstream Corp..

Cramer was bearish on Ligand Pharmaceuticals (LGND) – Get the report from Ligand Pharmaceuticals IncorporatedGolar LNG (LNG) – Get the report from Golar LNG LimitedSantander Bank (SAN) – Obtain the Banco Santander SA reportNew York Community Bancorp (NYCB) – Get the report from New York Community Bancorp, Inc. and silicon movement (SIMO) – Get the report from Silicon Motion Technology Corp..

Stop blaming the Fed

In his “No Huddle Offense” segment, Cramer said it was time to stop blaming the Federal Reserve for acting too late on inflation.

The Fed couldn’t have seen the Omicron wave coming, or the lockdowns in China or the Russian invasion of Ukraine. Without the stimulus provided by the Fed, our economy would almost certainly have slipped into recession.

But that doesn’t mean the Fed can’t do more now, when our economy is strong enough to handle rising interest rates. In Cramer’s view, Fed Chairman Jay Powell’s statement that a 75 basis point hike was not being considered was a mistake. It would be better to raise rates by 1% and get it all over with, he said, than to drag it out for the next few months.

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