Jim Cramer - Mad Money

It IPO'd today, with shares soaring 82% above its initial price. They are in space defence technology, a hot sector. It is losing gobs of money, but you can argue they are raising a lot of money now that they've gone public.

Is surprised this doing poorly, -11.83% in the last 6 months. It yields 5% and trades at 10x PE, which he thinks that go to 12x. Hold or even add shares.

Distribution is a very good business and the company is intriguing, but it doesn't pay a dividend. Long term, this has performed. 

The stock is rolling over. You can buy a little now and wait till $60. It's having a hard time now.

Is +23% in the last 3 months. Last year was rough with -20% earnings, but last February they reported in-line sales and a big earnings beat. Last May, they reported another revenue beat and earnings beat. Also, they maintained their full-year sales outlook and raised their FY earnings forecast. Tariffs are not all good for ROK; some customers in cars are delaying plans (makes sense), and ROK must pay tariffs on cell phones and components. But if we see a huge wave of re-shoring to the US, ROK will be a winner.

China: The US needs their rare earths for smartphones, semis, EVs, lasers, fighter jets, tablets and other devices. What were we thinking when we slapped tariffs on China before settling the rare earths issue?? Brazil: Need an immediate deal with them, because they have one-fifth of the world's rare earths.  Vietnam: Also we need to strike a quick deal with them for their rare earths. Australia: same.

The PE is too high.

The orphan drug model no longer works.

All enterprise software names are too expensive.

He likes their model, and there is no demand for their products.

Shares are really high, but he would consider it if they did a public offering.

47% of their business is defence, 17% civilian, 15% energy/environment, 11% intelligence and 10% space. Clients include NASA, Air Force and federal agencies, so they depend on government contracts. Defence is a solid business, unless Washington reduces this spend. Last earnings were good: beating revenues and earnings and reiterated full-year guidance. However, the growth rate disappointed the street and DOGE threatens to kill some of their government contracts, though he thinks that's overblown. ACM has longstanding relationships with government agencies and they have a huge order backlog. He wants to see their big shareholders reduce their stakes before jumping in, but this is worth watching.

Was downgraded last Friday and today over fears they won't meet expectations this quarter, including disappointment over MCD's new chicken strips dish, that it won't turn things around. Rather, customer prefer heavily breaded chicken and the find these strips ugly. However, history says it has never paid to downgrade MCD. It's the king, offering good value and is highly well-run. The CEO will figure it out.

This has been downgraded, including two today, but he doesn't think Musk is done--he has another act coming, namely the robo-taxis. Don't bet against Musk.