It might finally be time to do some buying, Jim Cramer told his Mad Money viewers Thursday, after another dramatic turnaround on Wall Street that saw stocks open lower only to rally by the close.
Why the optimism? Cramer said it's because for some stocks, in some situations, investors are finally willing to overlook bad news and see weakness as opportunities. Call it the power of the asterisk in the press release.
Case in point: Thursday Microsoft (MSFT) revised estimates lower. That's certainly bad news. But the asterisk was that the revision wasn't due to weakness in Microsoft's business, but rather currency pressures. Once that fact propagated, the stock rebounded and closed higher as investors took a chance on the software giant.
Microsoft follows in the footsteps of Salesforce.com (CRM), which also cited currency pressures when it cut forecasts. Investors responded in kind and the stock has never looked back. The same was true for semiconductor maker Nvidia (NVDA), which also lowered guidance. The asterisk? It was due to Chinese lockdowns, lockdowns that are now ending.
Wall Street appears to accept these explanations given how cheap these stocks have become. Cramer posited that if Cisco Systems (CSCO) or Best Buy (BBY) reported this week, as opposed to earlier, their shortfalls might have seen gains, rather than sharp declines.
Does this mean every stock is a buy? Of course not. But these trends prove that the bottom might soon be at hand.
Executive Decision: Dow
In his first "Executive Decision" segment, Cramer sat down with Jim Fitterling, chairman and CEO of Dow (DOW), the chemical maker with a 4.1% yield.
Fitterling assured investors that Dow is ready for rising inflation. The company has reduced and refinances its debt and remains committed to their $3 billion share buyback. That's why Dow shares are up 20% for the year.
When asked about input costs, Fitterling explained that 80% of Dow's inputs are natural gas, which is not running wild as oil is. Given that Dow operates in the U.S., Canada and the Middle East, they have distinct advantages over European competitors.
Dow has also committed themselves to helping the environment, unveiling a new ESG strategy that aims to put the company at net zero carbon emissions by 2050.
Digging into Deere
What the heck is happening to the stock of Deere & Co. (DE)? Shares of Deere had been grinding higher, but when the company reported earnings two weeks ago, shares collapsed, down 14% in a single session. But then last week, Deere saw a powerful rally that erased almost all of those earlier losses.
Cramer explained that when Deere reported, investors took issue with the results, worrying that earnings were influenced by the company's sizable stock buyback and not by growth. Investors also fretted over the 25% of Deere's business that stems from construction and would be hit by a recession.
But then a week ago, Deere held an analyst day and cleared the air. The company explained its earlier forecast cuts and proved that its business is doing just fine. And that's how rallies like last week happen.
Executive Decision: Excelerate Energy
For his second "Executive Decision" segment, Cramer also sat down with Steven Kobos, president and CEO of Excelerate Energy (EE), the liquified natural gas company that's home to 20% of the world's floating LNG import terminals. Shares of Excelerate have risen 20% for the year.
Kobos explained that LNG is super chilled to make it a liquid that can be transported, but when it arrives at its destination, it needs to be reheated and turned back into a high-pressure gas. That's what Excelerate's terminals do, and they do it for far less than building a ground-based terminal from scratch.
Given the world's renewed focus on energy security and need for natural gas, Excelerate's terminals are in greater demand. The company is opening markets around the world. Bangladesh is just one example, and Excelerate is now supplying 25% of the country's natural gas needs with two terminals.
Lightning Round
In the Lightning Round, Cramer was bullish on Raytheon Technologies (RTX), Airbnb (ABNB), Expedia (EXPE), Upstart (UPST), and Hertz Global Holdings (HTZ).
Cramer was bearish on Rocket Lab USA (RKLB), Joby Aviation (JOBY), Allegiant Travel (ALGT), Trade Desk (TTD), Kosmos Energy (KOS), and indie Semiconductor (INDI) .
Reconsider Homebuilders
In his "No Huddle Offense" segment, Cramer played devil's advocate, suggesting investors consider buying a homebuilder, despite every Wall Street playbook saying the contrary at this point in the economic cycle.
"What is really different this time?," Cramer asked. The work from home trend is for real and home builders simply can't keep up. New homes, unlike autos, appreciate when you buy them, adding to their appeal. With so many homes still receiving multiple bidders, it could be years before supply catches up.
As for home building stocks, they're getting cheaper every day.
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