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Selling stocks out of fear is the cardinal sin of investing, Jim Cramer told his Mad Money viewers on Tuesday. Panic isn’t a strategy, and it almost always pays to wait for cold heads to prevail. There is no questioning in investing, which is why you need to get it right the first time.
If you sold your stocks in the midst of last week’s liquidation, you’re probably kicking yourself right now. The panic of the past week was palpable, which makes this week’s rally all the more predictable.
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When Omicron surfaced right before Thanksgiving, we had almost no news to give. The new variant didn’t even have a name at the time. But investors immediately feared the worst. No one even thought about what might happen if Omicron wasn’t as bad as the Delta variant.
Then there is Apple. Last week, a “supply chain report” said the iPhone maker had cut component orders due to lower demand. Stocks instantly fell 4% on the news, despite the fact that we see these rumors every year and Apple’s suppliers never talk about their relationship with Apple. If they did, they wouldn’t be Apple’s suppliers.
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In both of these cases, the panic prevailed, but a few days later the panic turned out to be completely false. That’s why you should never act out of fear, Cramer concluded. It is far better to do nothing and wait and see if the rumors are true before making rash decisions.
Executive decision: Starbucks
In his first segment “Executive Decisionâ€, Cramer spoke with Kevin Johnson, President and CEO of Starbucks (SBUX) – Get the Starbucks Corporation report, to learn more about organizing efforts at some of its Buffalo, NY locations.
Johnson explained that Starbucks has always put people above the process and they respect the union process that is going on in Buffalo right now. He explained that workers at three sites have asked to organize. Starbucks had argued that since 45% of their employees often exchange shifts between Buffalo’s 20 sites, workers at those 20 sites should participate in the union vote. This argument was rejected, however, allowing a vote in three stores.
On Tuesday, Starbucks’ proposal to stop the union vote count scheduled for Wednesday in Buffalo was rejected by the National Labor Relations Board, allowing eligible employees in the area to vote.
Johnson told Cramer that most Starbucks employees are happy with their pay and respect the culture and heritage of the company. During the pandemic, Starbucks paid workers even though their locations were closed. The company has also made strides in pay, working conditions, continuing education, training and more, all with the goal of attracting and retaining the best people, Johnson said.
Cramer said “things have changed” here in America, but he too respects the union process. The concerns of every worker must be taken into account.
Executive decisions: Ford, Salesforce
In a two-for-one “Executive Decision†segment, Cramer spoke with Jim Farley, CEO of Ford (F) – Get the report from Ford Motor Company, and Marc Benioff, Co-CEO of Salesforce.com (CRM) – Get salesforce.com, inc. Report, to learn more about their new partnership to bring productivity software tools to small businesses. Shares of Ford and Salesforce ended the day up 3.8% and 3.1% respectively.
Farley explained that Ford’s vision is to be the no. 1 manufacturer of electrified commercial vehicles, and Tuesday’s announcement will bring a new suite of small business productivity tools directly into customers’ vehicles.
If you look inside many small business trucks and vans today, you’ll find an assortment of sticky notes, with bills hidden behind the visor. Ford hopes to change all that with new software solutions for all of its commercial vehicles.
Benioff added that having these tools will allow customers to connect with Ford in a whole new way and allow Ford to help their customers in new ways.
Farley said Ford’s new e-Transit vans and F-150 Lightning pickup trucks are starting to roll off the assembly lines and will be among the first vehicles to offer these additional services.
Executive decision: SentinelOne
For his last segment “Executive Decision”, Cramer met Tomer Weingarten, co-founder and CEO of SentinelOne (S) – Get the Class A report from SentinelOne, Inc., the cybersecurity firm whose shares rose 13.4% on Tuesday after the company released its quarterly results. Last week, however, stocks crashed along with the larger markets, prompting a wild ride.
Weingarten said SentinelOne’s growth is a testament to companies finally realizing that cybersecurity is essential to keeping them in business. Businesses simply cannot afford to be hacked, have their data stolen, or fall victim to ransomware attacks.
SentinelOne offers a full suite of security services, Weingarten explained, from classic to cloud, Internet of Things and more. They aim to secure every vector that an attacker could use to hack your business.
When asked about the competition, Weingarten said cybersecurity has always been a competitive space, but it’s also a huge market with plenty of room for all players. SentinelOne has seen its win rates remain stable thanks to its technology, which sets it apart from all others in the field.
The American labor market
In his “No Huddle Offense†segment, Cramer shared his thoughts on the state of the labor market in America. He said that for decades employers have had the upper hand over organized work, but suddenly it seems the tide has turned.
Between a tougher stance on immigration, the rise of the odd-job economy and, yes, the pandemic, there are simply fewer workers in America, giving the remaining workers more power to organize. , negotiate and demand higher wages. We’ve seen the influence of work across the country, from raising the minimum wage to Tuesday’s interview with Starbuck’s Kevin Johnsons.
Businesses will eventually stem the tide with technology. Between artificial intelligence, self-driving cars and industrial automation, there will be a time when companies can do a lot more, with a lot less. Until then, however, Cramer said we’ve long waited for workers to get more than they get from most companies.
Lightning tower
Here’s what Cramer had to say about some of the actions callers came up with during the Mad Money Lightning Round on Tuesday night:
SoFi Technologies (SOFI) – Get the report from SoFi Technologies Inc: “They do a really good job there. I think it’s basically.”
American outdoor brands (AUGUST) – Get the report from American Outdoor Brands, Inc.: “They have a lot of brands and I think that’s a good story.”
Ollie’s Bargain Outlet (OLLI) – Get the report from Ollie’s Bargain Outlet Holdings Inc: “This last quarter has been weak. It’s a tough market, so be careful.”
Illumina (ILMN) – Get the report from Illumina, Inc.: “These guys are winners and I would buy their stock.”
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