Jim Cramer - Mad Money

There are many knuckleheads who expect the U.S. Fed's Jay Powell to give a massive all-clear buy signal to the stock market. Gimme a break. That won't happen until inflation stops for six months--and we are far from that happening. No, the Fed hasn't beaten inflation yet. Mortgage rates are still high, the housing supply and labour market are still tight. Inflation stands at 4%. Pundits like hedge fund managers are out of touch with everyday (rising) prices that impact typical working people. Powell will raise rates until those prices come down, even if there are lots of layoffs (though prefers not to). He's doing this because hot inflation is more painful than layoffs.

Rising interest rates have hurt the housing sector. This includes TREX. He's long liked this company for its fine products. It's had a great year until early August. Since that peak, it's fallen over 15%. They had a great investors day a week ago and forecast a superb second half of 2023. When the Fed stops hiking interest rates, TREX will spike.

They just finished a $3.25 billion share buyback and will start a $2 billion one. They've retired 7.6% of their shares so far this year. All told they will reduce shares by 13.5%, the 3rd-biggest buyback on the S&P 500. If you feel interest rates will continue to rise, Dupont is too risk; Dupont has some cyclicality because it's exposed to autos. Overall, he likes Dupont.

They suppled boring data to the boring insurance industry, but he likes boring. They've bought back 7.3% of its shares this year. Also, its lifetime chart is sharply higher. They sold their non-core business (selling data to energy companies) to become a pure data insurance company. Good. That sale paid for the buyback. They report lots of capital to shareholders.

The former Priceline (and currently owns several online travel companies) is noted for its share buybacks (buying 8% of shares this year). Shares are up 52% this year.

Are buying back 8.5% of its shares this year, but also investing in their business for the long term. This shows confidence.  Also, he likes their new rewards program which operates across several of its businesses. Also, its trades at under 9x 2024's PE, half that of competitor Booking Holdings.

Is up 4% this month. To be disciplined, he took some money off the table.

Peaked in May and fell back to a degree until it reported last month when it reported better than expected same-store sales and overall higher sales (not due to higher prices, but more customers). They raised their full-year forecast. Still off its May highs, pick up some shares now.

A fine infrastructure play. Buy some at $53, and more at $49

Pays a good dividend, is held by institutions, great earnings and has global exposure.

Hit a 52-week high today. Pays a 7% yield and has a super pipeline.

They overexpanded and carry a heavy balance sheet.

They delivered a blowout quarter.

It can't afford to pay expensive labour if it wants to pivot to EVS and compete with Tesla. Unfair but that's the reality. Ford can either outsource or give in and lose some factories.

Their Kirkland brand is cheaper and better than premium brands. Astonishing. This saves Club Members money. The brand gives a leg up vs. other retail competitors in a tough retail landscape.