Home Stock Markets Cramer’s Mad Money Recap 3/17: Marvell, Williams-Sonoma, Honeywell

Cramer’s Mad Money Recap 3/17: Marvell, Williams-Sonoma, Honeywell

by WOOWinvest
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Cramer's Mad Money Recap 3/17: Marvell, Williams-Sonoma, Honeywell



Don’t take everything you hear as gospel, Jim Cramer warned his Mad Money viewers on Thursday. Everyone on Wall Street has a theory about why things happened, but few really know what they’re talking about, Cramer said.

Just a week ago, oil prices surged to record highs and pundits said the sky was falling. But in reality, the surge in crude prices is caused by simple market mechanisms, and it only takes oil producers a moment to respond.

We also recently heard that the rally in semiconductors is over. But the CEO of Marvell Technologies (MRVL) – Get Marvell Technology, Inc. Report We were told earlier this week that this is not the case.

Whether it’s Williams-Sonoma (WSM) – Get Williams-Sonoma, Inc. Report or Signet Jewelers (SIG) – Get Signet Jewelers Limited Report Close the store, or Honeywell (HON) – Get the Honeywell International Inc Report Falling because of weak aerospace, what you hear isn’t always based on facts. Both Williams-Sonoma and Signet have closed stores because most of their demand has moved online, where they make more money. As for Honeywell, they are no longer just about aerospace. The company has many other hot end markets.

Many of these pessimistic theories are propagated by short sellers who go short on stocks and then spread their theories to as many people as possible, creating panic that leads to the decline they had hoped for.

Does this mean we should all invest in index funds? of course not. Investing in individual companies that make real things and have real returns is still the best way to make money, Cramer said.

So next time you hear a theory, keep in mind that it’s just a theory and may be far from the truth.

Administrative Decision: Signet Jewelers

In his first “Executive Decisions” segment, Cramer spoke with Gina Drosos, CEO of Signet Jewelers, which just released strong quarterly results and strong guidance. Shares of Signet have risen 40% in the past year.

Drosos said Signet’s revenue grew 50 percent last year, giving them the financial capacity to invest in the business, grow the jewelry category and attract new clients into the space. Signet now has many competitive advantages, including its digital capabilities combined with data and analytics.

Signet also took advantage of this year’s weddings to hit an all-time high, as everyone who postponed their wedding during the pandemic got ready to share their special day with family and friends. The United States is expected to hold 2.5 million weddings this year, compared with the usual 2.1 million.

Other highlights for Signet include the company’s digital strategy, which involves 60% of customer interactions online, and their expanded service plan to help customers take care of their jewelry purchases.

Find profitable companies

For the foreseeable future, the name of the game is to invest in profitable companies that produce real products and return those profits to shareholders. That’s why Cramer offers his favorite stocks with not only profitable dividends, but a history of raising those dividends.

The bad news is that the average dividend yield on the S&P 500 is the lowest it’s been in years. But the good news is that 24% of dividend-paying companies raised their dividends, and those yields are even more attractive as stock prices fall sharply.

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Energy First, Devon Energy (DVN) – Get the Devon Energy ReportPioneer Natural Resources (PXD) – Get the Pioneer Natural Resources Inc report and Coterra Energy (CTRA) – Get Coterra Energy Inc. Report All are on the list for their variable dividend strategies.

In the retail group, Cramer recommends Tractor Supply (TSCO) – Get Tractor Supply Company reportBest Buy (BBY) – Get Best Buy Co., Inc. Report and dollar generals (DG) – Get Dollar General Corporation Reportwhich just posted online earnings, but offered investors a 31% dividend boost and share buybacks.

Next, Cramer suggested NXP Semiconductors (NXPI) – Get NXP Semiconductors NV Reportwhich just increased its dividend by 50%, while ProLogis (PLD) – Get Prologis, Inc. Reportsthe yield is 2%.

In the end, Cramer recommended Wells Fargo (WFC) – Access to Wells Fargo and Company Reports in banking. All of these companies deserve a place in your portfolio.

Executive Decision: Williams-Sonoma

For his final “Executive Decisions” segment, Cramer also spoke with Laura Alber, president and CEO of furniture designer and retailer Williams-Sonoma, which just reported earnings of 60 cents a share and gave the rest Partly made a bullish forecast for 2022. Shares rose 5.4% on Thursday, but still traded below 11 times earnings.

Alber said Williams-Sonona didn’t get enough credit for its B2B business, which is growing rapidly in an $80 billion market. Investors also don’t appreciate their many competitive advantages, including their design capabilities, supply chain performance and their digital platforms.

When asked about the store closures, Arber explained that locations such as their store in Beverly Hills are outdated. Now, it has been replaced by a lifestyle center, showcasing the company in a whole new way. Williams-Sonoma prioritizes family, which is the most important thing to their clients, she said.

Lightning Wheel

Cramer bullish on Alphabet in flash round (GOOGL) – Get Alphabet Inc. Class A ReportRalph Lauren (RL) – Get Ralph Lauren Corporation Class A ReportNorwegian Cruise Line (NCLH) – Get Norwegian Cruise Line Holdings Ltd reportWestern Union (WU) – Get The Western Union Company Report and ventas (VTR) – Get Ventas, Inc. Reports.

Cramer is bearish on Canada Goose (GOOS) – Get Canada Goose Holdings, Inc. ReportSturmrug (RGR) – Get Sturm, Ruger & Company, Inc. Reportcarnival (CCL) – Get Carnival Corporation ReportRoblox (RBLX) – Get Roblox Corp. Class A Report and Omega Healthcare (OHI) – Get Omega Healthcare Investors, Inc. Report.

Can’t communicate?

In his “No Huddle Offence” section, Cramer called for an end to the pandemic’s tradition of Federal Reserve Chairman Jay Powell accepting a barrage of questions from uninformed reporters.

Transparency is good, Cramer declared, but transparency that only confuses us is not. That’s why we need to end this senseless “journalist pinata” game.

Instead, Cramer suggested the Fed act like a company and report to the public quarterly rather than every six weeks. Then, instead of answering the same questions over and over, reporters should send questions ahead of time so that the Fed can only answer questions that fit the narrative they need to convey. That way, everyone wins with a message that lets everyone know what’s coming next.

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