The market is so dominated by technology that it cannot see the forest through industries. If the discussion isn’t about the cloud slowdown, it’s about who pulls out of the now-private Twitter or the disappointing departure of co-CEO Bret Taylor from Salesforce (CRM). how. Meta Platforms’ (META) Mark Zuckerberg can sneeze and Amazon (AMZN) CEO Andy Jassy coughs and it’s a bigger deal than United Airlines’ (UAL) order of 100 Dreamliners from Boeing (BA) ). We don’t pay much attention to industries anymore. There are not many of them. We are used to them being held hostage by so many negative forces that they are not worth our attention. Wrong. The Dow Jones Industrial Average has performed so much better than the average semiconductor company, or even the enterprise software company above average, that we even focus on a few. company later. 600 companies founded in the last two years have rented too much of your brain space even at a glance. Advertising, which turned out to be the Achilles heel of the internet and the media, seems to have disappeared. It’s not enough to feed all the players and no one seems to be able to reach 18-24 year olds with anything they put in. So they are spending a fraction of what they used to spend. It sucks when we cheer when a semiconductor company like Marvell Technology (MRVL) drops in price and that only drives the stock down slightly. That gives the market hope that some inventory for chips is running low. In the meantime, unannounced industries will arbitrage on any S&P 500 bull run, where there never seems to be enough inventory before where you find a seller. I’m going to dive into the hot stuff – but first, let me say that the biggest problem with a lot of these technologies is that there’s just too much supply at every level. Someone is always a seller. Always have goods up a penny. And it is quite big. The commands, if you can hear them, will be something like, “sell 50,000 shares every 5 cents for the next dollar and then I’ll reload when I get my report if there’s enough time left. time at the end of the day. I don’t. I don’t want to hurt the stock too much because I have so much behind it.” There are countless sales of anything cloud related and not just from a target price drop. It is from insiders that they feel that the times are over and all are in competition with each other, even Amazon, Alphabet (GOOGL) and Meta understand that. When the biggest problem with Meta is how much time Zuckerberg actually spends working on his supposedly super-reverse dreams, instead of the highly profitable but slow-growing Instagram, then you know you’re in too deep. in the weeds. Now I want you to buy shares of Caterpillar (CAT). When you’re in the throes of Federal Reserve rate tightening, I’d often say that this is possibly the best short position in the book. Shorting a stock means betting that it will fall in price. But not now. There is no way CAT can fulfill its orders. Every industry needs more than they make, whether it’s coal because Europe has shut down too many nuclear and natural gas plants that have overpriced, or the necessary excavators. for all the roads that are going to be built in this country because of the Democrats’ infrastructure bill, in favor of the domestic product. Meanwhile, its raw cost will be LOWER. Caterpillar does not emphasize China and emphasizes oil and gas. While public companies have cut their drilling rates, private equity firms are drilling like crazy to offset cash flow. Let’s see how CAT works on bullish days. Not available for sale. Not available. It’s a beautiful day and it looks like Caterpillar stock is always up three points. Why not; there are 527 million shares outstanding, down 20 million shares. Which enterprise software company can say the same? No stock base compensation problem. Stocks are precious. CAT sells for 17 times REAL income, not FAKE or CREATE income. That’s what we really should call the non-GAAP adjusted earnings-per-share nonsense we’re getting from these roller coasters in the West, which sounds a lot like the What General Electric (GE) did before the collapse. I bet the order to buy 100,000 shares of Caterpillar will move 2 points. In a year when the S&P 500 fell 14%, CAT is up 14% year-to-date. Not to mention it has a 2% annual dividend yield. Last week, I met Lal Karsanbhai, CEO of Emerson Electric (EMR). He’s turning this old-fashioned but brilliant manufacturer of valves and appliances into a company that digitizes your hardware, automating your factories while cutting waste. In less than two years, Karsanbhai was selling slow-growing parts, buying faster-growing businesses, and joint ventures with others in ways arrogant software types could only dream of doing. Like Caterpillar stock, EMR is up straight: 4% higher year-to-date. But over the past three months, the stock has gained 18.5%. I think the idea of bringing Emerson in to innovate, automate and become cleaner – it also has a big business in improving the environment – was one of the first calls I would make if I run an industrial enterprise. That’s an 18x earnings stock. Whatever happens to Boeing, I’m always bittersweet. We sold some high, we sold some low, but most importantly we just got annoyed by its constant errors. However, we wanted to get into the aerospace sector with too much travel, so we did it with Honeywell (HON). Here is another story that never ceases to amaze. Another reconfigured company with refinery cleaning chemicals, factory automation machinery, climate control and some of the most important parts of an aircraft including the cockpit, not only for Boeing but also for Airbus. Honeywell’s stock sells for 25 times earnings, but its growth is accelerating and it has cash and balance sheets ready to go for whatever it takes. HON is another stock that is up 5% year-to-date and over 17% in the past three months. We know that we have gone through an arsenal of low-tech military equipment as well as NATO. But this massive allocation increase last week will provide Raytheon Technologies (RTX) with bulk orders for 2023. The anti-missile products that Raytheon specializes in are what I think are heading right now. to NATO members to do what they want with them, which means sending them to Ukraine to defend against the nine-month invasion of Russia. Meanwhile, Raytheon’s aerospace business, both military and commercial, has too many orders to process. After several reconfigurations as part of the merger between United Technologies and Raytheon, the acquisition was made. The only thing holding this company back is the lack of engineers. Can Westerners learn military technology? They better learn how to do so. RTX is up 17% year-to-date. I could include a lot of companies like this, Eaton Corporation (ETN) on pumps, valves and what you need to charge electric vehicles; Illinois Tool Works (ITW) for equipment such as welding, automotive growth parts, polymers and all kinds of high-demand products; or Agilent Technologies (A), a testing and measuring company for all kinds of industries that require precision and precise determination. You can’t just own these. You won’t know when they stop going straight up. And you can’t just buy them. Jeff Marks, portfolio manager at Investment Club, and I talked about it last week when I said we had to get Emerson as quickly as possible. But one look at the stock tells us that it has gone too far and too quickly. The problem is, they all have. I said let’s put aside the software companies that are supposed to have breakfasted everything else and start discussing the real winners since the November pivot – instead, those supposed to fall has reinvented itself and is part of a new industrial economy that has been automated and digitized and doesn’t need customer relationship management because it has so many customers. (Jim Cramer’s charitable trusts are long-term CRM, META, AMZN, GOOGL, and HON. See here for a full list of stocks.) As a CNBC Investment Club subscriber with Jim Cramer, you will get a trade alert before Jim makes a decision. purchase. Jim waits 45 minutes after sending the trading notice before buying or selling shares in his charity’s portfolio. If Jim had talked about a stock on CNBC, he would have waited 72 hours after issuing a trading warning before taking a trade. INFORMATION ABOUT THE ABOVE INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, PLUS OUR DISCLAIMER. 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Jim Cramer at the NYSE, June 30, 2022.
Virginia Sherwood | CNBC
The market is so dominated by technology that it cannot see the forest through industries. If the discussion isn’t about the cloud slowdown, it’s about who’s pulling out of the now-private Twitter or how disappointing the departure of co-CEO Bret Taylor is. Sales force (CRM). Meta . Platform‘ (META) Mark Zuckerberg can sneeze and Amazon (AMZN) CEO) Andy Jassy coughs and it’s a bigger problem unified airline‘ (UAL) order 100 Dreamliners from Boeing airplanes (FATHER).