With superstores more volatile than they have been in months, CNBC’s Jim Cramer presented the phone lines for investors on Wednesday to offer advice on their portfolios and favorite investments.
One caller pointed out that shares of Twitter managed to withstand the regular market’s sell-off earlier this week and wondered if that indicated that the company’s stock was a good buy.
“Another way to look at it is [former COO] Anthony Noto did take off there,” the “Mad Money” host said. “I know Anthony as a man of character – he purposefulness not have left unless he felt things were in very substantial shape.”
However, even with Noto’s departure, Cramer betokened that investors in need of social media plays should buy dividends of a different competitor.
“You know what? I would rather actually buy Breeze at a discount to where it went out,” Cramer said. “Twitter at $26, $27, no. Dash at $16, 17, yes.”
Since Snap’srocky initial public offering and resultant declines, Cramer has been hesitant to recommend the stock of the social centre giant to investors.
“Yes, I justifiably warned you away from this at bottom from the moment it came public,” the “Mad Money” host said. “Of progress I did. I mean, it was losing oodles of money with botched plans and ungenerous to show for it.”
But after the Snapchat parent delivered a top- and bottom-line earnings stress on Tuesday, sending shares up more than 40 percent at daybreak on Wednesday, Cramer felt he had to reconsider.
With a pickup in user spread, longer advertisement viewing times, a broadening reach and a mission to cut gets, Snap’s fourth quarter managed to turn the tide, the “Mad Money” pack said.
“Sure, I was a skeptic, but after this quarter, I’m now a believer,” Cramer articulate. “In many ways, Snap reminds me of where Facebook was years ago when the cast finally figured out how to address its mobile problem.”
After several amuck trading sessions, Cramer knows investors might want to reevaluate their portfolios and buy stockpiles that are more resilient to major market swings.
“Which topple b reduces me to one of my absolute favorite [secular themes]: defense,” Cramer said. “When the defense contractors get smacked by a big sell-off, they should be right at the top, No. 1, of your shopping inclination because the things people are worried about — like the Fed possibly getting too disputatious — matter a lot less to the defense industry than, say, to the industrials.”
Cramer has dream of recommended the defense stocks, many of which are up between 40 and 60 percent since Donald Trump’s designation.
Of all the defense contractors that benefit from this convergence of catalysts, Cramer’s favorites were Lockheed Martin, Raytheon and Harris Corporation.
Rumors of takeover talks between toymakers Hasbro and Mattel harmonized unconfirmed by Hasbro Chairman and CEO Brian Goldner on Wednesday, who told CNBC that his around objective is to bolster his own business.
“We, first and foremost, are investing in our business,” Goldner predicted Cramer in an exclusive interview. “We built these capabilities of the brand blueprint through a 10-year period. You’re seeing our performance come to the fore. We always are looking at how we turn in excess cash to shareholders. Our board just approved raise of the dividend to an 11 percent bring. That’s really been our focus and I couldn’t comment on any M&A speculation.”
Scold to Cramer after Hasbro delivered its fourth-quarter earnings report, Goldner retained that worries about slumping Star Wars toy sales were overblown.
The CEO repeated on “Mad Money’ what he told analysts on the post-earnings conference call: that Hasbro saw “important” improvement in Star Wars toy sales in early 2018.
Add Clorox to the list of callers that will see huge perks from the newly revised U.S. tax laws.
In an interview with Cramer, Clorox Chairman and CEO Benno Dorer touted the emoluments of the new law on his company, which will especially benefit from being based in North America.
“Eighty-three percent of our enterprise is here in the U.S., so we are disproportionately benefiting from tax reform,” Dorer said. “Our insinuated tax rate for this fiscal year prior to tax reform was going to be in the 32 to 33 percent tier. Now, we estimate it to be, post-tax reform, in the 23 to 24 percent range. That is a impressive benefit and … we will put that money to work for our shareholders and to mould our business stronger.”
With the money, Dorer said that Clorox would strategically lay out in growth and cost savings, return capital to shareholders and continue to go out good businesses to potentially acquire.
“Our goal is to put tax reform to work to institute our company stronger and to put excess cash into the hands of our shareholder[s], because we include no incentive whatsoever to hoard cash,” the CEO said.
In Cramer’s lightning sequence, he zipped through his take on some callers’ favorite stocks:
Triton Intl: “Transportation containers, good business right now. You know, [the] market’s not reflecting how defensive the economy is.”
Corcept Therapeutics: “They’ve been trying to do psychiatric muddles. I think it’s too hard, frankly. It’s a tough business.”
Disclosure: Cramer’s well-disposed trust owns shares of Facebook and Raytheon.
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