Cramer’s Crazy Money 3/11 recap: Tesla, GameStop, AMC Entertainment


We live in a world where individual investors now have the power to destroy overconfident short sellers, Jim Cramer told his Mad Money viewers on Wednesday. This fact is a difficult lesson for hedge fund managers to understand, and many of them have yet to learn.

For years, short sellers crammed into Tesla (TSLA) – Get the Tesla Inc report, betting against the company on every spin. But individual investors never gave up on Tesla and propelled the company to a valuation of $ 1.2 trillion. This assessment is separate from reality and is not based on the number of cars produced by the company, but rather on its vision for the future.

Individual investors took shorts to a whole new level earlier this year with stocks like GameStop (GME) – Get the Class A report from GameStop Corp. and AMC Entertainment (AMC) – Get the Class A report from AMC Entertainment Holdings, Inc.. But those lessons seemed to fall on deaf ears this week, when hedge funds were once again taken on the wrong side of trade.

This time the company was Avis Budget Group (AUTO) – Get the Avis Budget Group, Inc., which saw its shares double in yesterday’s session. Cramer explained that for many fund managers the strategy was to go long with rival Hertz (HTZ) – Get the report from Hertz Global Holdings, Inc. and Avis runs like a hedge. They were completely unprepared for the auto shortage, which allowed Avis to explode earnings estimates.

Today the shorts lost again with Bed Bath & Beyond (BBBY) – Get the Bed Bath & Beyond Inc. report.. When the company announced new partnerships and a share buyback program, shares soared, causing shorts to leak.

Even in actions like Est̩e Lauder (EL) РGet the Class A report from Est̩e Lauder Companies Inc., individuals are winners. When the company reported yesterday, stocks fell on the open to close over 4% as individuals stepped in and never looked back.

Executive decision: NiSource

In his first segment “Executive Decision”, Cramer spoke with Joe Hamrock, President and CEO of NiSource (OR) – Get the NiSource Inc (NI) report, the utility that just released restart earnings that pushed stocks up 2.2% at the close. NiSource shares are currently returning 3.5% and are up 10% year-to-date.

NiSource is committed to reducing its carbon emissions by 90% by 2030 and Hamrock has said it is on track to meet that target. There are many different paths to achieve a renewable future, he said, and in the NiSource field, that means switching from coal to natural gas and investing in renewable natural gas from agricultural sources.

Each storage is also a key factor in any renewable energy plan, as is a highly skilled workforce to get the job done. That’s why NiSource is investing in training the workforce of tomorrow so that they have the skills they need to navigate a tight job market.

Cramer said that if you are considering buying a utility, you need to make sure it leaves coal and moves to a renewable future, just like NiSource.

Executive decision: Wingstop

For his upcoming “Executive Decision” segment, Cramer spoke with Charlie Morrison, President and CEO of Wingstop (WING) – Get the Wingstop, Inc., the restaurant chain that missed both upper and lower estimates due to rising costs. Stocks responded by falling more than 10%.

Morrison said prices at Wingstop are already starting to moderate from their pandemic highs. He said wing prices had fallen 40 cents a pound from their peaks and franchisees were paying few retention bonuses to keep their employees.

New franchise development increased 13% in the quarter, Morrison continued, and now is the perfect time to build new restaurants.

Growth is always the word for Wingstop’s international business. Morrison said Mexico is their biggest international market, but still only has 100 restaurants. Ultimately, Mexico could see up to 250 locations.

Wingstop is also working with a partner in China to enter this country. Meanwhile, here in the United States, digital orders now represent 60% of sales and delivery continues to grow.

Cramer said the worst may already be behind Wingstop, making the company a buy, not a sell.

Special Interview: Jane Goodall

In a special interview, Cramer spoke with renowned primatologist and anthropologist Jane Goodall about her latest project, Trees For Jane, which aims to help the planet through reforestation.

Goodall explained that forests and oceans are the lungs of the world. They absorb carbon dioxide, release oxygen, provide us with clean air and water, and even help make it rain. This is why it is so important to take care of the environment that has already given us so much.

Goodall added that companies are finally meeting the needs of the planet in a big way. They understand that profits alone are not enough, they must do more and give back.

Individuals can also step in to help, Goodall said. If you plant the right tree, in the right soil, at the right time of year, and take just a little time to nurture it, even a single tree can give you a lifetime of fun.

Trees give us hope, said Goodall.

The wall of shame

In his No-Huddle Offense segment, Cramer added Zillow (ZG) – Get the Class A report from Zillow Group, Inc. CEO Rich Barton at the Mad Money Wall of Shame for the three deadly sins of pride, arrogance and stupidity.

When Zillow announced in 2017 that he was embarking on the house flipping business, Cramer warned that the move would be very risky. He also said at the time that buying homes was not a business owned by a business that made all of its income from advertising. But that didn’t stop the overconfident Zillow.

Zillow felt that his experience, coupled with artificial intelligence, would allow him to spot undervalued homes that could quickly be repaired and sold for a profit. But Cramer said the company turned its investors into suckers.

In the last quarter alone, Barton told investors he was more confident than ever in the home buying business. Today, the company is taking a charge of $ 500 million and laying off a quarter of its workforce. Stocks plunged more than 25% in response.

Cramer said this type of risky behavior is unacceptable and shareholders deserve better. “Barton has to go,” he concluded.

Lightning tower

Here’s what Cramer had to say about some of the actions offered by callers during the Mad Money Lightning Round on Wednesday night:

Nano dimension (NNDM) – Get the ADR report sponsored by Nano Dimension Ltd: “I don’t like the 3D printing business. I don’t have much hope for this one.”

Xos (XOS) : “I got excited about it, but I couldn’t make money for people, so now I’m saying no. “

Sharecare SHCR: “They need a quarter rash. We have to see the quarter. “

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