Cramer’s Mad Money 6/2 Recap: Microsoft, Salesforce, Nvidia

It may finally be time to buy, Jim Cramer told his Mad Money viewers on Thursday, after another dramatic turnaround on Wall Street saw stocks open lower to rally at the close.

Why this optimism? Cramer said that’s because for some stocks, in some situations, investors are ultimately willing to ignore bad news and view weakness as opportunity. Call it the power of the asterisk in the press release.

Example: Microsoft Thursday (MSFT) – Get the Microsoft Corporation report downwardly revised estimates. This is definitely bad news. But the asterisk was that the revision was not due to Microsoft’s weak business, but rather to currency pressures. Once that word spread, the stock rebounded and closed higher as investors took a chance on the software giant.

Microsoft follows in the footsteps of (RCMP) – Get the report from Salesforce, Inc., which also cited currency pressures when it cut its forecast. Investors responded in kind and the stock never looked back. So did semiconductor maker Nvidia. (NVDA) – Get the NVIDIA Corporation report, which also lowered the orientation. The asterisk? It was due to the Chinese blockages, blockages that are ending now.

Wall Street seems to accept these explanations given how cheap these stocks have become. Cramer postulated that if Cisco Systems (CSCO) – Get the report from Cisco Systems, Inc. or best buy (BBY) – Get the report from Best Buy Co., Inc. reported this week, as opposed to earlier, their deficits may have seen gains, rather than steep declines.

Does this mean that every action is a buy? Of course not. But these trends prove that bottom may soon be at hand.

Executive Decision: Dow

In his first “Executive Decision” segment, Cramer sat down with Jim Fitterling, president and CEO of Dow (DOW) – Get the report from Dow, Inc.the chemical manufacturer with a yield of 4.1%.

Fitterling assured investors that Dow was ready for higher inflation. The company has reduced and refinanced its debt and remains committed to its $3 billion share buyback. That’s why Dow shares are up 20% for the year.

Asked about input costs, Fitterling explained that 80% of Dow’s inputs are natural gas, which doesn’t flare up like oil. Since Dow operates in the United States, Canada and the Middle East, they have distinct advantages over European competitors.

Dow has also pledged to help the environment, unveiling a new ESG strategy that aims to bring the company to net zero carbon emissions by 2050.

Digging in Deere

What the hell is happening to Deere & Co. (OF) – Get the Deere & Company report? Shares of Deere had soared, but when the company reported earnings two weeks ago, shares crashed, down 14% in a single session. But last week, Deere saw a powerful rally that erased nearly all of those earlier losses.

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Cramer explained that when Deere reported, investors disputed the results, fearing earnings were driven by the company’s large stock buyback, not growth. Investors also worried that 25% of Deere’s business stems from construction and would be hit by a recession.

But a week ago, Deere hosted an analyst day and cleared the air. The company explained its earlier reduction forecasts and proved that its business is doing very well. And that’s how rallies like last week are going.

Executive Decision: Excelerate Energy

For his second “Executive Decision” segment, Cramer also spoke with Steven Kobos, President and CEO of Excelerate Energy (EE) – Get the Excelerate Energy, Inc. Class A report., the liquefied natural gas company that houses 20% of the world’s floating LNG import terminals. Shares of Excelerate were up 20% for the year.

Kobos explained that LNG is supercooled to make it a liquid that can be transported, but when it arrives at its destination, it needs to be reheated and turned back into gas at high pressure. That’s what Excelerate’s terminals do, and they do it for a lot less than building a ground terminal from scratch.

With the world’s renewed focus on energy security and natural gas needs, Excelerate’s terminals are increasingly in demand. The company opens markets all over the world. Bangladesh is just one example, and Excelerate now supplies 25% of the country’s natural gas needs with two terminals.

lightning tower

In the Lightning Round, Cramer was bullish on Raytheon Technologies (RTX) – Get Raytheon Technologies Corporation reportAirbnb (ABNB) – Get the Class A report from Airbnb, Inc.Expedia (EXPE) – Get the report from Expedia Group, Inc.Reached (UPST) – Get the Upstart Holdings, Inc. report.and Hertz Global Holdings (HTZ) – Get the Hertz Global Holdings Inc report.

Cramer was bearish on Rocket Lab USA (RKLB) – Get the report from Rocket Lab USA, Inc.Joby Aviation (JOBY) – Get the report from Joby Aviation, Inc.Alleviating Travel (ALGT) – Get Allegiant Travel Company ReportCommercial counter (TTD) – Get the Class A report from Trade Desk, Inc.Cosmos Energy (KOS) – Get the report from Kosmos Energy Ltd.and indie Semiconductor (INDI) .

Reconsider home builders

In his “No Huddle Offense” segment, Cramer played devil’s advocate, suggesting investors consider buying a homebuilder, despite all the Wall Street textbooks saying otherwise at this point in the business cycle.

“What’s really different this time?” Cramer asked. The work from home trend is for real and home builders just can’t keep up. New homes, unlike automobiles, appreciate when you buy them, which adds to their appeal. With so many homes still receiving multiple bidders, it could be years before the bid catches up.

As for home building stocks, they are getting cheaper every day.

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