Mad Money w/ Jim Cramer 9/27/24
Digest
This episode of Mad Money with Jim Cramer delves into the positive aspects of the third quarter, highlighting the absence of a recession, Powell's successful rate cuts, the broadening of the market, and the resilience of the economy despite global challenges. Cramer also discusses the FDA approval of Bristol Myers' new schizophrenia drug, Coventry, and its potential to revolutionize treatment. He then analyzes the contrasting views of analysts on Starbucks' future under new CEO Brian Nichol, with some expecting a slower turnaround and others emphasizing the potential for operational improvements. Cramer also interviews the CEO of HB Fuller, a leading adhesive company, discussing its consistent growth, focus on sustainability, and exposure to various end markets. Finally, he compares the oil embargo of 1973 to the current geopolitical situation in the Middle East, arguing that the US's position as the world's largest oil producer and OPEC's diminished influence make a significant price spike unlikely.
Outlines
The Third Quarter: A Positive Outlook
Jim Cramer reviews the positive aspects of the third quarter, highlighting the absence of a recession, Powell's rate cuts, market broadening, and the economy's resilience despite global challenges.
Coventry: A Revolutionary Schizophrenia Drug
Jim Cramer interviews Dr. Chris Berner, CEO of Bristol Myers, about the FDA approval of Coventry, a revolutionary new schizophrenia drug. They discuss the drug's potential to revolutionize treatment, its lack of side effects, and the company's plans for future development.
Starbucks' Turnaround Under New Leadership
Jim Cramer analyzes the contrasting views of analysts on Starbucks' future under new CEO Brian Nichol. He presents the bearish case from Jeffrey's, which argues for a slower turnaround and lower earnings estimates, and the bullish case from Bernstein, which emphasizes the potential for operational improvements and long-term growth.
HB Fuller: A Consistent Grower in a Slowing Economy
Jim Cramer interviews Celeste Mastin, CEO of HB Fuller, a leading adhesive company. They discuss the company's consistent growth, its focus on sustainability, and its exposure to various end markets, including data center chip manufacturing.
The Oil Embargo of 1973 vs. Today's Market
Jim Cramer compares the oil embargo of 1973 to the current geopolitical situation in the Middle East. He argues that the current situation is vastly different, with the US as the world's largest oil producer and OPEC's influence diminished. He believes that the price of oil is unlikely to spike significantly, despite the ongoing conflict.
Keywords
Coventry
A revolutionary new schizophrenia drug developed by Bristol Myers Squibb. It represents a new class of drugs with a novel mechanism of action, offering efficacy comparable to existing therapies but without the debilitating side effects.
Brian Nichol
The new CEO of Starbucks, known for his turnaround expertise at Chipotle. He is expected to focus on operational improvements, digital ordering, and streamlining the business to drive growth and enhance brand perception.
HB Fuller
A leading global adhesive company with a long history of consistent growth. It operates in various end markets, including consumer products, construction, and data center chip manufacturing, and is focused on sustainability and innovation.
OPEC
The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that once held significant influence over global oil prices. Its power has diminished due to increased US production and Saudi Arabia's shift away from price manipulation.
Third Quarter
The third quarter of the year, which saw positive economic indicators despite global challenges.
Schizophrenia
A chronic mental disorder that affects a person's ability to think, feel, and behave clearly.
Starbucks
A global coffeehouse chain known for its coffee, tea, and other beverages, as well as its food and merchandise.
Oil Embargo
A ban on the import or export of oil, often used as a political or economic weapon.
Q&A
What are some of the positive aspects of the third quarter that Jim Cramer highlights?
Cramer highlights the absence of a recession, Powell's successful rate cuts, the broadening of the market beyond the "Magnificent Seven," and the resilience of the economy despite global challenges.
What are the key features of Bristol Myers' new schizophrenia drug, Coventry?
Coventry is a revolutionary new drug with a novel mechanism of action, offering efficacy comparable to existing therapies but without the debilitating side effects associated with traditional antipsychotics.
What are the contrasting views of analysts on Starbucks' future under new CEO Brian Nichol?
Jeffrey's analysts are bearish, expecting a slower turnaround and lower earnings estimates. Bernstein analysts are bullish, emphasizing the potential for operational improvements and long-term growth.
What are some of the key factors that make HB Fuller a consistent grower in a slowing economy?
HB Fuller's consistent growth is driven by its focus on sustainability, its exposure to various end markets with low economic sensitivity, and its successful M&A strategy.
How does Jim Cramer compare the oil embargo of 1973 to the current geopolitical situation in the Middle East?
Cramer argues that the current situation is vastly different, with the US as the world's largest oil producer and OPEC's influence diminished. He believes that the price of oil is unlikely to spike significantly, despite the ongoing conflict.
Show Notes
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.
Table of contents
United States
