Cramer’s Crazy Money 10/6 recap: Dow, General Motors

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Why did stocks open sharply lower Wednesday morning? Jim Cramer told his Mad Money viewers that he was struggling to find a reason for the weakness. Yes, there have been negative headlines in Europe and Asia, but nothing new that would have a real impact on American businesses. In fact, most of the biggest problems in the market are man-made, Cramer said, and they’re the easiest to fix.

If we had the political will, for example, we could resolve the looming debt ceiling deadlock with the stroke of a pen. Lowering oil prices is as easy as opening up strategic reserves.

How far will industrialists go? On Action Alerts PLUS, Bob Lang and Chris Versace say the Dow Industrials chart shows we’re at an interesting point, the bulls and bears are fighting turf war. Get the best of their investing ideas and more trading strategies at TheStreet’s AAP Investment Club.

None of these things affect Dow Chemical’s revenue. (DOW) – Get the report from Dow, Inc. or General Motors (DG) – Get the report from General Motors Company (GM), two large companies that have given investors a positive outlook for the future. Cramer said it was ridiculous that GM was trading for just nine times earnings, and that Dow shares should also be significantly higher. These two companies are committed to their shareholders and have acquired a religion when it comes to the environment.

That’s why, after weeks of carnage in the market, where every rally turned into a trap, Cramer said it was time to start having some conviction on lower openings like Wednesday’s. If your investing theses are still intact, it might be time to start buying when the market hits the road soon.

Executive decision: Marvell Technology

In his first segment “Executive Decision”, Cramer spoke with Matt Murphy, President and CEO of Marvell Technology (MRVL) – Get the report from Marvell Technology Group Ltd., the semiconductor company that just completed its annual investor day. Marvell shares closed up 7.34% Wednesday at $ 63.75 and are up 34% year-to-date.

Murphy said Marvell is completing its five-year investment plan and is now in the exciting position of being a leader in high-performance, automated, 5G wireless computing. The cloud is in the midst of a long-term, secular growth trend, he added, and Marvell is in the “sweet spot” of cloud-optimized silicon that will help drive that growth for years to come.

Asked about the auto industry and the many chip shortages there, Murphy explained that Marvell is building the next generation of chips for automobiles, the ones that will provide networking, storage and computing for automobiles with even more capabilities than we see today. Marvell had no business in the automotive business just a few years ago, but now has $ 100 million in revenue from that industry.

Executive Decision: Constellation Brands

For his second “Executive Decision” segment, Cramer also spoke with Bill Newlands, President, President and CEO of Constellation Brands (STZ) – Get the Class A report from Constellation Brands, Inc., the beer, wine and spirits company which just raised its forecast despite headwinds this quarter. Constellation shares are currently trading at 18 times earnings.

Newlands said that despite rising raw material prices and a one-time load on their hard seltzer business, Constellation was still able to increase its forecast thanks to the growth profile of all of its brands. For example, the beer market remains stable in the United States, but Constellation continues to gain market share and saw 8% growth in the quarter.

Asked about the disappointment with Seltzer, Newlands explained that everyone seemed to overestimate the growth of this trendy new category. Seltzer has appeared to hit a wall for the past eight weeks resulting in the depreciation. Seltzer will be a significant part of Constellation’s portfolio, he said, but at a lower growth rate going forward.

Newlands also commented on Constellation’s share repurchase program. He said that despite the headwinds, the company remains committed to returning $ 5 billion to its shareholders and has already about 60% completed its efforts.

Executive decision: Levi Strauss

For his latest segment “Executive Decision”, Cramer checked out Chip Bergh, President and CEO of Levi Strauss (LEVI) – Get the Class A report from Levi Strauss & Co., the clothing and denim maker which just posted strong results, including earnings of 11 cents per share.

Bergh said he was very pleased with this past quarter, noting that Levi’s is benefiting from both a denim replacement cycle and internal changes that are pushing the company into higher-end markets that increase gross margins. , of which 57.5% this quarter.

When asked about the supply chain, Bergh explained that Levi’s is fortunate to have a diverse supply chain that is not beholden to any country. He said the products can usually be made in multiple countries if needed, giving the company flexibility. Moreover, considering its scale, it can lock cotton products at favorable prices.

Bergh was also optimistic about next-generation outlets, which continue to expand across the country. He said these smaller footprint stores are more upscale and have products customized for the local market. New generation pitches are proving to be very profitable.

Cramer said he’s always on the lookout for big brands who know how to execute and Levi’s is at the top of his list.

What could be going well for Nucor

In his No-Huddle Offense segment, Cramer spoke out on steelmaker Nucor (Naked) – Get the report from Nucor Corporation, saying he personally takes the downgrade of Goldman Sachs on Wednesday.

According to the Goldman analyst, the good news is already embedded in the stock price. But Cramer noted that stocks are already down 20% from their August highs, which has “stifled” all the good news.

There are still a lot of things that could be going well for Nucor. The company’s steel is still in high demand for automobiles and pipelines and that doesn’t even count the possibility of Washington’s infrastructure spending. Nucor also repurchases shares and returns capital to shareholders, which makes Nucor the best in show business.

Cramer said regular investors are nimble enough to follow Goldman’s recommendation and sell now and come back at lower prices. He said it made no sense to sell now, down 20%, and risk missing out on any upside potential.

Lightning tower

Here’s what Jim Cramer had to say about some of the actions offered by callers during the Mad Money Lightning Round on Wednesday night:

DraftKings (DKNG) – Get the Draftkings, Inc. (DKNG) report: “I think it’s managed well and has an incredible market share. I’m a buyer.”

REE Automotive (REE) : “I love Tesla (TSLA) – Get the Tesla Inc report and Ford Motor (F) – Get the Ford Motor Company report. Let’s get into those. “

JFrog (FROG) – Get the report from JFrog Ltd.: “I am surprised that this stock is falling so much. “

B&G Foods (BGS) – Get the report from B&G Foods, Inc.: “I wish I liked this one more, but I like Campbell’s soup (CPB) – Get the Campbell Soup Company report more than B&G at the moment. “

Skyworks Solutions (SWKS) – Get the report from Skyworks Solutions, Inc.: “Skyworks is a fantastic buy. They’ve come to the right place.”

Apellis Pharmaceuticals (APLS) – Get the report from Apellis Pharmaceuticals, Inc.: “Why not just buy Regeneron Pharmaceuticals (RAIN) – Get the report from Regeneron Pharmaceuticals, Inc.. They have the best franchise ever. “

Keysight Technologies (KEYS) – Get the Keysight Technologies Inc (KEYS) report: “Their last quarter was great. It pisses me off to see this stock so low.”

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