Cramer's Mad Money Recap 3/29: Adobe, Yeti, FedEx, Disney

At the peak of the doom and gloom is when you need to be thinking about what could go right, Jim Cramer told his Mad Money viewers Tuesday. In this market, that time was just over a week ago, when the bears assumed everything was going to go wrong.

The bears got a lot of things wrong in the haste to send stocks lower. First, they assumed Russia’s war machine was a lot stronger than it actually is. That incorrect assumption was coupled with equally incorrect assumption that Ukraine’s people, and its government, would head for the hills at the first sign of trouble. Neither of these things proved to be true.

The bears also got the Federal Reserve incorrect, predicting that the only way to slow inflation was to wreck our economy.

Lastly, some of the bears turned to technical analysis, latching onto the dreaded “death cross” as a sign that recession was all but certain. But, as Cramer noted, the so-called death cross only resulted in a recession six of the past 12 times it appeared. Those bears should have instead used chartist Larry Williams’ indicators, which have predicted bull moves like the one we’re experiencing now, 21 of the past 21 times it has appeared.

That’s why when good companies get slammed on earnings, as Adobe Systems (ADBE) – Get Adobe Inc. Report did last week, it pays to be a bull. Shares of Adobe are now above where they traded before reporting, making the post-earnings dip a huge buying opportunity.

Executive Decision: FedEx

It’s the end of an era, as the legendary FedEx (FDX) – Get FedEx Corporation Report founder, Fred Smith, announced that he’s stepping down as the company’s CEO. In his first “Executive Decision” segment, Cramer spoke with Smith about his career and many successes at FedEx.

Smith said he never could have foreseen the success at FedEx. While his research decades ago clearly showed a demand for overnight delivery, building a network is hard. He said FedEx had enormous upfront expenses that needed to happen before they could even ship their first package. Years later, FedEx’s biggest challenge was transitioning from business-to-business shipments to the e-commerce world of business-to-consumer.

When asked about what he was most proud of, Smith said it’s the opportunities they were able to give to hundreds of thousands of workers around the globe. Creating millionaires is great, he said, but helping the working class is the most meaningful.

As for what’s next for FedEx, Smith explained that there are no plans to replace hard-working FedEx drivers with autonomous vehicles anytime soon, but they are looking into autonomous trucks to help with long-haul highway routes.

Finally, when asked about the state of global trade, Smith said that the U.S. must maintain a working relationship with China and work together to solve our imbalances.

Cramer called Smith simply “an icon.”

Get Your Yeti Ready

When the market finally finds its footing, investors need to stick with real companies that have real earnings, stocks like Yeti Holdings (YETI) – Get YETI Holdings, Inc. Report, the outdoor cooler and drinkware maker.

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Shares of Yeti have nearly been cut in half since their November highs, but the Texas-based company hasn’t missed a single quarter of earnings since its 2018 public debut. Yeti not only has a great brand, it also has a great direct-to-consumer business that boosts margins to offset rising costs.

Speaking of costs, Yeti is indeed suffering from cost inflation, but with shares trading for just 21 times earnings, down from their historical 31 times earnings, Cramer said investors can pick up Yeti for a steal, especially since the stock is seasonally hot as we head into warmer weather.

Executive Decision: McCormick

For his second “Executive Decision” segment, Cramer also welcomed back Lawrence Kurzius, chairman and CEO at spice maker McCormick (MKC) – Get McCormick & Company, Incorporated Report, just ahead of the company’s annual investor day.

Kurzius said the demand for flavor remains strong, and as the price of dining out continues to soar, consumers are once again opting to cook at home, which involves lots of spices and sauces from McCormick.

McCormick isn’t sitting still, Kurzius added, his company is keeping up with new home cooking technology like air fryers and Instant Pots and developing all new blends for these devices so you’ll get great results every time.

When asked about cost inflation, Kurzius admitted that he doesn’t see an end to transportation costs anytime soon. Transportation remains one of three vital components for McCormick, which also includes raw materials and packaging. All three are on the rise.

Lightning Round

In the Lightning Round, Cramer was bullish on FMC Corp (FMC) – Get FMC Corporation Report and SIGA Technologies (SIGA) – Get SIGA Technologies Inc Report.

Cramer was bearish on Rocket Companies (RKT) – Get Rocket Companies Inc Class A Report and Village Farms (VFF) – Get Village Farms International, Inc. Report.

Disney: Focus on Individual Investors

In his “No Huddle Offense” segment, Cramer said executives at Walt Disney (DIS) – Get Walt Disney Company Report should consider taking a page from CEO Adam Aron’s playbook at AMC Entertainment (AMC) – Get AMC Entertainment Holdings, Inc. Class A Report. Aron’s moves to keep individual investors happy might not make sense to industry analysts, but it’s been a big win for the company.

Source: https://www.thestreet.com/jim-cramer/cramers-mad-money-recap-march-29-2022?puc=yahoo&cm_ven=YAHOO&yptr=yahoo