The hatred for this market knows no bounds, Jim Cramer told his Mad Money viewers Wednesday. That hatred is certainly justified, given how many stocks have taken huge losses over the past few months. But that doesn't mean that investors aren't also to blame for the carnage in their portfolios.
Many investors follow the strategy of buying what they know. They like a company, so they buy shares in that company. But Cramer noted that liking a company is only a starting point. Investors must also look at fundamentals. Are they making money? Do they have enough money to weather rising interest rates and a possible recession? Do they have too much competition that will make a recession unbearable?
Great companies don't always make great investments. That's why stocks like AMC Entertainment (AMC) have fallen from $62 last fall to just $12 a share Wednesday. It's why GoodRx (GDRX) plunged from $47 to $7 and Teladoc Health (TDOC) is down from $154 to just $32.
Stocks like Carvana (CVNA) made sense at $370 last August when the auto market was red hot, but with rates rising and sales cooling, today's $26 share price is a lot more realistic.
Now is not the time to give up on stocks as an asset class, however. Cramer said investors just need to educate themselves better on what happens to companies at this point in the economic cycle. EVgo (EVGO) and Roblox (RBLX) were great last year, but that doesn't mean they'll be great again this year.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said that Atlantica Sustainable Infrastructure (AY), is an interesting energy company that focuses on renewables. The company is a dividend play that's currently yielding 5.5%. With shares down $10 from their highs, he blessed the stock, along with more well known names like American Electric Power (AEP) and Dominion Energy (D).
Cramer was less bullish on DigitalBridge (DBRG) , a REIT that had been focused on hotels and retail, but has recently diversified into digital properties like data centers and cell towers. While the move to digital has given the company a new lease on life, Cramer said its complicated corporate structure is making pure plays like American Tower (AMT) and Digital Realty Trust (DLR) better investments.
Gas Price Dilemma
Would you rather have a cleaner environment or lower gas prices? You can't have both, Cramer told viewers, and that's the struggle President Joe Biden is facing.
A few years ago, Cramer proclaimed that oil was "un-investable" as environmental activists seemed to have the upper hand on curbing big oil's long term outlook. But then the oil companies did the unthinkable, they embraced a carbon-neutral future and have been investing heavily into renewable energy.
Those investments don't appear to be enough for Biden however, as his administration has been all but hostile towards oil and natural gas, speaking only of clean energy. This hostile stance has caused more recent pleas to lower gas prices to fall on deaf ears.
Oil companies simply aren't going to trust an administration that wants to destroy them. If the president were to embrace natural gas as a bridge fuel, for example, the industry would respond. If red tape for pipelines and LNG export terminals would be cut, the industry would respond. But so far, none of that has happened, which leaves the world without the energy it needs to get to our carbon-free future.
Executive Decision: SentinelOne
In his "Executive Decision" segment, Cramer spoke with Tomer Weingarten, co-founder and CEO of SentinelOne (S), the cybersecurity company with shares down 70% from their highs, despite reporting strong earnings.
Weingarten explained that SentinelOne continues to take market share from incumbent players with antiquated technology that can't keep pace with today's cloud-enabled world. Companies are demanding operational security in the cloud, he said, and they need vendors that can deliver.
When asked about Russia's hacking efforts since the war in Ukraine began, Weingarten said they've seen less activity than expected thus far. Putin appears to be focused on the war on the ground and controlling information within Russia.
Turning back to business, Weingarten added that SentinelOne has ample cash on their balance sheet to keep taking market share, and thanks to their improving gross margins, their growth can continue.
Lightning Round
In the Lightning Round, Cramer was bullish on Danaher (DHR), Boise Cascade (BCC), Marten Transport (MRTN), Doximity (DOCS), AT&T (T), Procter & Gamble (PG) and Zoetis (ZTS).
Cramer was bearish on InMode (INMD), Olaplex Holdings (OLPX) , Idexx Laboratories (IDXX), Veru (VERU) and Boeing (BA).
Buy What Insiders Are Buying?
In his "No Huddle Offense" segment, Cramer reminded viewers that insiders sell stock for many different reasons, but they only buy shares of their own companies for one reason, they think it's going higher.
That's what makes insider buying at companies like Intel (INTC), Centene (CNC), CSX (CSX), Home Depot (HD) and Starbucks (SBUX) so intriguing. The executives at these companies are all signaling that there's a lot more to like at their companies than meets the eye.
Cramer said he remains a fan of Intel, which now supports a 3.3% dividend yield. He was also bullish on the return of Howard Schultz as interim CEO at Starbucks. Schultz made a $15 million purchase of Starbucks shares, a clear signal that despite union efforts and lockdowns in China, the future still remains bright for Starbucks.
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