There is far too little accountability on Wall Street, Jim Cramer admitted to his Mad Money viewers Thursday, as he sounded issues that have made him angry in recent weeks.
First, Cramer said there is no accountability to pundits and analysts who make instant judgments on earnings reports. Concrete example, Cisco Systems (CSCO) – Get a report, which reported a solid quarter on Wednesday, only to be analyzed by finicky analysts and off-base news reports. After closing lower on Wednesday, stocks rebounded strongly on Thursday, proving that all opponents are dead wrong.
There is also no liability when it comes to cryptocurrencies, Cramer told viewers. Bitcoin was once a rare commodity, but now it competes with a host of other so-called “currencies,” some of which started out as a joke. Making money in crypto is more about luck than the product itself.
The same applies to all those young traders who bet big on GameStop. (GME) – Get a report and AMC Entertainment (AMC) – Get a report. GameStop’s business has been crumbling for years, while AMC only stayed afloat by issuing more shares after the Wall Street Bets frenzy began.
There is also no accountability for those who criticize Federal Reserve Chairman Jay Powell. Cramer said Powell should be applauded for his focus on jobs rather than largely transient inflation.
But perhaps the greatest lack of accountability goes to John Stankey and Randall Stephenson, the current and former CEOs of AT&T. (T) – Get a report. Cramer was so embarrassed by AT & T’s decision to cut its dividend as part of the Warner Media divestiture that he resurrected Mad Money’s “Wall of Shame”.
AT&T shareholders depend on this dividend for income and are some of the most loyal shareholders you will find. But after buying Time Warner for $ 85 billion, Stankey and Stephenson have no responsibility for ditching Warner for $ 43 billion just three years later.
“Thanks for nothing,” Cramer concludes.
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Executive decision: Barrick Gold
In times of rising inflation, it always pays to diversify, Cramer told viewers. And with cryptocurrencies looking more like speculative assets than physical assets, gold remains your best option. That’s why Cramer spoke with Mark Bristow, President and CEO of Barrick Gold. (GOLD) – Get a report. Barrick shares rose 5% last week alone.
Bristow said they had three things in mind when they merged with Randgold a few years ago. The first was to take stock. The second was to retain all the best people. And the third was to become focused on the return, which they have now accomplished with the addition of their dividend.
But Barrick Gold isn’t just about profit, Bristow added, they’re here for the long haul, which means operating responsibly and paying attention to environmental and social issues. Mining is an important daily activity, he said, making it the only way to go.
Barrick is also a large producer of copper, Bristow said, with about 20% of its total production. Copper continues to be in high demand for a multitude of products and demand remains strong.
Finally, when asked about the scarcity of gold, Bristow noted that only 50% of the world’s gold reserves have been replaced since the turn of the century, which is why gold remains so valuable.
Executive decision: Bank of America
For his second “Executive Decision” segment, Cramer also spoke with Brian Moynihan, Chairman and CEO of Bank of America (BAC) – Get a report, to learn more about the bank’s commitment to minority-owned businesses. Bank of America said earlier Thursday that it was increasing its $ 200 million commitment to minority investment funds to $ 350 million. So far, the bank has invested $ 250 million in 90 different funds.
Moynihan said Bank of America continues to put its money where it is and prove that you can do well and do good at the same time. They have invested in hundreds of talented people who are now investing in thousands of minority owned businesses across the country. Bank of America continues to focus on the right things while providing service to its shareholders.
Moynihan also commented on his recent decision to pay a minimum wage of $ 25 an hour by 2025. He said they remained committed to their employees and wanted people with a career mindset. when they join the company. Bank of America wants the best talent, he said, and they’re willing to pay for it.
Cramer said Moynihan proves once again that business can be the main driver of change in America.
Executive decision: Palo Alto Networks
For its latest “Executive Decision” segment, Cramer checked on Nikesh Arora, CEO of cybersecurity firm Palo Alto Networks (PANW) – Get a report.
Arora said the work from home trend is here to say and they see a big improvement in their remote security products. Customers now expect the same level of security in the office, wherever they are. He said cybersecurity talks have also gone beyond just the IT department. Discussions are now taking place in conference rooms and in the White House, as our entire country must take security seriously.
When asked about the semiconductor shortage, Arora noted that Palo Alto is moving away from hardware peripherals and towards software, which is easier to supply and maintain, and also doesn’t require chips for every customer.
At Real money, Cramer focuses on the companies and CEOs he knows best. Get more of his information with a free trial subscription to Real Money.
Regulation is not rocket science
In his No-Huddle Offense segment, Cramer told viewers that regulation isn’t rocket science, but regulators don’t realize the power of their own words. Case in point: Wednesday’s collapse in Bitcoin. Cramer said it was obvious to anyone who had been in the markets for long enough that Wednesday was a classic margin call. This is where traders using borrowed money are asked to pay or forced to liquidate their positions.
But while cryptocurrencies are not yet regulated, there are things that can be done. Cramer said all Janet Yellen needed to say was that she was uncomfortable with all the leverage she was seeing in the crypto markets. That alone will encourage institutions to stop lending money to those who cannot afford it. She could go on to say that they will look at any institution that offers excessive leverage, especially those that lend 100 to one.
That alone, Cramer said, will stop this madness in its tracks.
Here’s what Cramer had to say about some of the actions that callers offered during the Mad Money Lightning Round on Thursday night:
Hyliion HYLN: “The market just doesn’t like these companies, even if they do everything they are supposed to do.”
Paysafe (PSFE) – Get a report: “I think you can buy more.”
Shift Technologies SFT: “I really like Lithia Motors (BOY) – Get a report. They did something fantastic. This is the one to buy. “
Utz brands (UTZ) : “Utz didn’t have a good shift. You have to buy PepsiCo (DYNAMISM) – Get a report which has Frito Lay and the scale to deal with transportation costs. “
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At the time of publication, Cramer Action Alerts PLUS does not have any positions in the mentioned stocks.