In this article, we will look at the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market. The host of CNBC’s Mad Money said on Friday that the market may struggle to regain momentum until investors get past the upcoming SpaceX IPO, especially if a wave of additional large offerings follows.
Last night, I was confident. I spoke too soon. I thought the market was surprisingly resilient. Turns out today was the day when people started raising the money that I thought they’d have to, to participate in a bunch of upcoming mega IPOs. Given how difficult it would be to get shares in the SpaceX deal, see, I thought there might not be as much mammoth sell-off ahead. I was wrong. That drove a lot of today’s selling, by the way.
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Cramer noted that SpaceX is expected to make its debut on Friday. He said he hopes that by then, investors will have already raised all the money necessary to participate in the offering, and possibly more, which would reduce the risk of continued market-wide selling throughout the week. He added that such an outcome could help companies such as Meta, Microsoft, and Amazon pursue transactions without seeing significant pressure on either the deals themselves or share prices.
Bottom line: Let’s get this over with, so this market can resume its advance, something that’s going to be very difficult as long as we’re being flooded with new stock. Remember, higher rates, too much supply, and lousy earnings can really sap the living daylights out of a stock market. Right now, we got two out of three, and it ain’t good.
Our Methodology
For this article, we compiled a list of 27 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on June 5. We listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Jim Cramer Discussed 27 Stocks, Like Arm and Lockheed, and the Recent Market Sell-Off
27. Arm Holdings plc (NASDAQ:ARM)
Arm Holdings plc (NASDAQ:ARM) was among the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market. Cramer highlighted the stock’s rally after its position was trimmed for the Charitable Trust, as he stated:
On the other side of the equation, alright, well, let’s talk about parabolas. Now, I have been warning you endlessly to the point you’re probably sick of hearing about what happens to stocks that make parabolic moves. If it goes up practically in a straight line, then eventually, it’s going to come down in a straight line. In fact, they tend to come down a lot faster than when they went up. I know club members get confused when we trim some of the winners, but we have no choice. What goes up must come down twice as fast, if not as faster. So if you don’t take something off the table, a little schnitzel, as I call it, well, you could give the whole thing back. Now, when you’re up nine weeks straight, you start taking a lot of things for granted. Take Arm Holdings, one of our favorite stocks.
Been a huge winner for the Charitable Trust, so we sold some at $310, but then it went up to $400. We lost discipline, though, and we didn’t do any more selling. That was bad, just plain and simple. Mesmerized? Hypnotized? No, we just didn’t own enough of the Arm to start with. It would be too small to matter if we sold more, but it sure feels like it mattered today with Arm down more than 12%. I wish I had kicked it out altogether. I’ll tell you, though, the decline has been so heavy, and almost to me, artificial, people are dumping these stocks to raise money to make room for SpaceX, that it might be too late to sell some of the stocks, even if I think that selling could go on until all the hyperscalers raise the money they need. And that’s going to make for an ugly tape. We gotta get used to it.
Arm Holdings plc (NASDAQ:ARM) designs and licenses CPU architectures, system IP, and software used across automotive, computing, consumer, and IoT applications.
26. FedEx Freight Holding Company, Inc. (NYSE:FDXF)
FedEx Freight Holding Company, Inc. (NYSE:FDXF) was among the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market. Cramer believes it can become one of the “best operators in the world,” as he said:
Today’s the day when I’m proud that we held on to our FedEx Freight, the new spin-off that could go from a decent less-than-truckload play into one of the best operators in the world. And remember, we don’t care what kind of company makes the money. Doesn’t have to be a data center money maker.
FedEx Freight Holding Company, Inc. (NYSE:FDXF) provides less-than-truckload freight transportation services. Cramer mentioned the spin-off during the June 1 episode, as he commented:
Today, the long awaited break up of FedEx finally arrived as FedEx Freight, their former, less-than-truckload business, began regular way trading on the New York Stock Exchange. That’s under the ticker… FDXF. I’ve said repeatedly that I like this move for FedEx, one of the newest positions in my Charitable Trust… Now, we’ve spent years marred in a prolonged freight recession, but in recent months, the whole group’s been making a nice move higher…
We think it’s a great opportunity. We think that there’s so many ways to rationalize… We want to have some leverage to a better economy, and I think that this can, that would be the cherry on top, so to speak… We think this is a keeper for those of you who bought FedEx with us. We like it.
