On CNBC’s “Mad Money Lightning Round,” investment guru and TV personality Jim Cramer had some bold statements about several key stocks. Wolfspeed, Inc. reported second-quarter losses of 55 cents per share, beating the analyst consensus estimate of losses of 66 cents but marking a significant decrease over losses of 11 cents per share from the previous year indicating troubling dilution. While their $208.4 million revenue surpassed analyst expectations of $206.36 million, it experienced a 3.56% decrease over last year’s sales. Cramer believes that Wolfspeed, Inc. is “losing too much money” and referred to the semiconductor manufacturer as a “second-rate player,” an indictment sure to jolt company leadership. He also blamed PureCycle Technologies, Inc. for not making money, highlighting the imperative of profitability in a competitive market landscape, thus potentially roiling investor sentiment.
PureCycle, on the other hand, claimed an impressive 183,000 pounds of pellets from its Ironton production facility within the last two weeks, reflecting bullish prospects. Cramer, always the astute market observer, recommended buying AvalonBay Communities, Inc., confidently proclaiming “I think AvalonBay right here is done going down, that’s a gutsy call by me,” potentially rousing investor confidence in the residential property REIT. AvalonBay Communities posted in-line earnings for its fourth quarter, suggesting stability in an otherwise vulnerable sector. Addressing Herbalife Ltd., Cramer sternly vetoed the stock, insisting “No, no. We got to step up our game,” a resolute call that could startle current shareholders even as Herbalife Ltd. recently appointed a new President, seeking to fortify a battered brand.
With regards to other investment opportunities, Cramer recommended buying Otter Tail Corporation after it raised its quarterly common stock dividend from 43.75 cents to 46.75 cents per share, signaling confidence in the company’s financial strength. He also viewed Liberty Energy Inc. favorably, terming it a “very inexpensive stock,” perhaps enhancing the allure of a value play despite the company’s weakened fourth-quarter results. Palantir Technologies Inc., a darling among retail investors, also secured Cramer’s vote of confidence after reporting better-than-expected fourth-quarter results that ignited a 30.8% rally in its shares, potentially capturing renewed investor enthusiasm.
Price Action:
- Palantir shares surged by 30.8%, closing at $21.87 on Tuesday, casting a glaring spotlight on the stock’s remarkable performance and underscoring its appeal as a market darling.
- Liberty Energy shares ascended by 1.1% to $19.31, evoking modest optimism and warranting cautious vigilance over the company’s recovery prospects.
- Otter Tail shares augmented by 2.1%, settling at $94.14 during Tuesday’s session, a win for the company and potentially alluring for institutional investors.
- Herbalife shares experienced a 2.2% surge, closing at $11.54, signaling a contrarian bullish move by investors despite Cramer’s stern warning against the stock, perhaps reflecting a firm defense from loyal shareholders.
- AvalonBay Communities shares rose by 1.6% to settle at $172.75, potentially marking a pivotal turnaround in sentiment for the residential property REIT.
- PureCycle Technologies shares gained 3.9% to close at $4.78, potentially eliciting optimism and interest in the company’s prospects for long-term recovery.
- Wolfspeed shares surged by 5.6%, settling at $26.70, reflecting an intriguing speculative play and signaling potential support from bullish investors even amidst the stern critique from Cramer.
