Jim Cramer, the renowned CNBC personality, recently offered his insights on several key stocks during his “Mad Money Lightning Round.” His pronouncements sent ripples through the market, impacting the trading of BHP Group, Diamondback Energy, AMC Entertainment, and Copart. Let’s delve into the specifics of his recommendations and the recent performance of these companies.
BHP Group (BHP): A Buy Recommendation
Cramer lauded BHP Group, a global mining giant, as a “very well-run” company, giving it a strong buy rating. This positive assessment comes on the heels of BHP’s announcement of a significant investment plan. On November 20th, the company unveiled plans to invest up to $14 billion in enhancing its copper production capabilities in Chile. This substantial capital expenditure, revealed during a three-day site tour showcasing the company’s Chilean operations, aims to secure the long-term future of its assets and capitalize on the booming global demand for copper. This strategic move underscores BHP’s confidence in the future and its commitment to maintaining its position as a leader in the copper market. The stock price reflected this positive sentiment, gaining 0.7% on Friday, closing at $52.36.
Diamondback Energy (FANG): Another Buy Signal
Diamondback Energy, an independent oil and gas company, also received a buy recommendation from Cramer. While the company’s recent quarterly earnings of $3.38 per share slightly missed analyst expectations of $3.99, its quarterly sales of $2.65 billion exceeded the projected $2.44 billion. This suggests a strong performance despite some headwinds. The stock responded positively to Cramer’s recommendation, closing at $185.29, representing a 1.4% increase. The disparity between earnings and sales figures warrants further scrutiny but doesn’t seem to have significantly deterred Cramer’s bullish outlook.
AMC Entertainment (AMC): Sell at $6
In stark contrast to the previous two stocks, Cramer issued a clear sell recommendation for AMC Entertainment. His advice was concise: “If it gets to six, I want you to sell it. Period. End of story.” This firm stance follows AMC’s recent disclosure of a debt retirement move in an SEC filing on November 12th. The company retired $24.22 million in unsecured debt through 5.75% subordinated notes due 2025. While this debt reduction is a positive step, Cramer seems unconvinced about the long-term prospects of the company, prompting his sell recommendation at the $6 mark. AMC closed at $4.55, a 1.3% increase on the day.
Copart (CPRT): A Remarkable Company, but…
Cramer described Copart, a vehicle auction company, as “remarkable.” However, his recommendation wasn’t a straightforward buy signal. He expressed a desire to see a pullback in Copart’s stock price before recommending a purchase. This cautious approach follows the company’s better-than-expected first-quarter sales results reported on November 21st. Despite Cramer’s conditional recommendation, the stock jumped 10.2%, closing at $62.70, suggesting strong market confidence in the company’s performance.
In conclusion, Cramer’s “Mad Money Lightning Round” provided valuable insights into the current market sentiment surrounding these four companies. While his recommendations are not financial advice, they reflect an experienced investor’s assessment of the short- and long-term prospects of these publicly traded entities. Investors should conduct thorough due diligence before making any investment decisions.
