And while Powell doesn’t plan to hike rates anytime soon, fund managers have already dusted off their interest rate playbooks and started selling industrials and commodities, along with Caterpillar. (CHAT) – Get a report 3.5% and FreeportMcMoRan (FCX) – Get a report down 5.1%. Even oil reversed course, with WTI crude down 1.5%. However, there is still a lot of stocks to buy. Cramer endorsed FAANG, (its acronym for Facebook (FB) – Get a report, Amazone (AMZN) – Get a report, Apple (AAPL) – Get a report, Netflix (NFLX) – Get a report, and alphabet (GOOGL) – Get a report) with Microsoft (MSFT) – Get a report. He called Nvidia (NVDA) – Get a report, which grew by 4.7%, and Advanced Micro Devices (DMLA) – Get a report, which appreciated 5.5%, as two big stocks to hold. Outside of tech, Cramer said home builders are still going strong. And while he would avoid finance, fintech, like Square (SQ) – Get a report and PayPal (PYPL) – Get a report have become favorites. Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they’re saying to their investment club members and join the conversation with a free trial subscription to Action Alerts Plus.
Executive decision: Azek
In his first segment “Executive Decision”, Cramer spoke with Jessie Singh, President and CEO of Azek Co. (AZEK) the decking materials company with shares plunging 6.5% on Thursday as lumber prices continued to retreat.
Singh began by saying that lumber prices did not affect demand for alternatives to Azek lumber. Their top-selling prices cost four times the price of lumber, but customers buy them because they look good, require no maintenance, and offer better value in the long run.
Singh added that they are still seeing a lot of tailwinds in the market, including the continued housing boom for new construction and a strong trend towards renovations. There are over 60 million decks that have passed their useful life in America, Singh said, which makes Azek very optimistic about his future.Asked about sustainability efforts, Singh reminded viewers that Azek uses hundreds of thousands of pounds of recycled material, which makes its footprint even better than virgin wood products. He said there is still a lot of work to be done to educate consumers on the benefits of recycled patio materials. At Real money, Cramer talks about the companies and CEOs he knows best. Get more of his ideas with a free trial subscription to Real Money.
Focus sur Eastman Chemical
Following Wednesday’s interview with chemicals maker LyondellBasell (LYB) – Get a report, Cramer highlighted another chemical company that you may not have heard of, Eastman Chemical (REM) – Get a report.
Eastman has a fairly short history as an independent business, but a rich history as Eastman in EastmanKodak. The company has many diverse end markets, from agriculture and construction, to retail, transportation, and health and wellness.
While stocks have risen 62% in the past two years, Eastman has recently come under pressure with investors worried about rising interest rates and the lingering effects of winter storm Uri. But unlike many chemical makers, Eastman weathered the storm fairly well and returned to 95% capacity in less than three weeks. The company is forecasting 20-30% profit growth this year.Trading at just 13 times earnings with a 2.4% dividend yield, Cramer said he was a big fan of Eastman, especially given the company’s efforts in molecular recycling, which aims to process 500 million pounds of plastic waste each year.
Executive Decision: Clean Energy Fuels
For his second “Executive Decision” segment, Cramer also spoke with Andrew Littlefair, President and CEO of Clean Energy Fuels (CLNE) – Get a report, the natural gas supplier which saw its shares jump 19% after being featured on the WallStreetBets Reddit forum.Clean Energy Fuels is no stranger to the natural gas revolution, but Littlefair admitted that demand for natural gas as a bridging fuel did not materialize as expected. This is why the company has turned to RNG, or renewable natural gas, which is made from the methane contained in animal waste. This new focus has caught the attention of Amazon, which recently partnered with Clean Energy Fuels and has the ability to take a 20% stake in the company.
Littlefair explained that America uses 35 billion gallons of diesel fuel each year and creates five to seven billion gallons of animal waste that could be converted into natural gas. And although that may not seem like much, five to seven billion gallons translates to 20 billion gallons of diesel. This makes Clean Energy a win-win solution for removing methane gas and replacing dirty diesel with cleaner burning natural gas.
Rate hikes destroy demand
In his “No Huddle Offense” segment, Cramer reminded viewers that interest rate hikes don’t correct inflation by creating more supply, they fix things by destroying demand.For example, our country is experiencing a growing shortage of truckers. This causes inflation. Rising interest rates will only slow the economy down, putting the few truck drivers we have out of work. Why is this the right solution?
Lumber prices are still up sharply for the year, even though they have fallen 40% from their peaks. We could solve this problem by raising interest rates until no one can afford to buy it, or President Biden could simply lower tariffs on Canadian lumber so that supply and meet. to our growing demand.Raising interest rates is rarely the answer to our country’s problems, Cramer concluded, which is why those who call on the Fed to raise rates as soon as possible miss the big picture.
Here’s what Cramer had to say about some of the actions that callers offered during the Mad Money Lightning Round on Thursday night:
Senseonics (MEANING) – Get a report: “Which rivals DexCom (DXCM) – Get a report and Abbott Laboratories (ABT) – Get a report which makes it speculative. “Celsius fund (CELH) – Get a report: “I love this company. It’s sensational. “ Look up Jim Cramer’s ‘Mad Money’ trading recommendations using our “Mad Money” stock filter.
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At the time of publication, Cramer’s Action Alerts PLUS had a position in FB, AMZN, AAPL, NFLX, GOOGL, MSFT, NVDA, AMD, ABT.