My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a more market somewhere, and I promised to help you find it. Man, money starts now. Hey, I'm Kramer. Welcome to Man of Money. Welcome to Kramer. Welcome to my friends. I'm just trying to make a little bit of money here. My job is not just to entertain, but to educate and do some teaching. Call me 1-800-7-3-CBC. Tweep me @JimKramer. First, they started buying materials and farmer companies like DuPont, three of Johnson Johnson. Then they expanded their net to beat down growth software companies. Today, they cast the widest net yet, wrangling aerospace like Boeing, high quality growth details like Costco, Walmart, and even Coca-Cola and Pepsi-Comp! Who is they? And what am I talking about? I'm using traders signed to describe what big institutional buyers, the ones who move stocks with their buy in the case of today, and their patterns they are now using to rearrange their portfolios, to have more than just AI exposure. That's what's happening. So where does that money come from? Do all this new buy? Cast the wide net? Mostly from Nasdaq stocks, especially the ones connected to the one-slug, now Scorn Data Center. This seat change is wheyling the averages! So jumping, five hundred thirty-set puts, has to be gaining point to what percent? Nasdaq full and point to two percent. You can see what I'm talking about when the Dow Jones rally's fierce is. It did today, but the data center having Nasdaq actually loses almost a quarter of a point. That is a very interesting dispersal. What is this action saying? You need to know. I'm listening to it. Pretty much what we said in 2000. That's the problem. When the tech stocks cratered and the money flowed into areas where growth remained. It looks like a lot like that by going era. And we wish good ridden to that era. We don't want that. In the end, it could take everything down. I bring that out now because it will. I just need to tell you if history is going to repeat itself. Why is this great swap happening again? Who starts with tech? We see a huge part of the Nasdaq in lots of the S&B piff at hard in the last year. As the water started ramping up for the data centers, pivoted in a beautiful way. But there are many parts of the data center. The parts that most excited people were actually in the parts that were in short supply. That's right. Well, let's just say they were scarce. I'm talking about memory and storage from Cgate, Western Digital, Sandisk, and Micron. There were shortages in all of these. These companies' historic have been very boom and very bust. When it's very boom, there's big shortage. When it's very bust, there's a surf fact. When AI exploded on the scene in the data center quite far, we had the Philos data centers with servers and servers are packed with memory and storage. Those big four companies plus SK high index was outtrades here, not just in Korea. And Samsung in Korea very quickly got huge pricing power because they literally weren't enough chips to go around. And by the way, SK high index and Samsung are much better than much bigger than our companies. Not much better, but much bigger. So what's happened to these companies? They've been able to raise prices and raise prices. With abandon, and it's caused a lot of things to be a little more expensive than you and I like. That allowed, though, for some of the greatest funds I've ever seen in stocks. Listen to these. Western Digital went from $70 to $70 a year ago to $799 in June. Micron stood at $101 a year ago and then it followed to $1,255. Cgate went from $152 to $1,145. And Sanders made the biggest move of all, galloping from $42 to $2354 dollars. Those moves are incredible. I call them lifetime gains, at least if you talk to them. But every one of these stocks peaked in June. Western Digital is now falling from $799 to $463. Micron, $125 to $820. Cgate, $115 to $747. And Sanders, well, it's doubled from $2354 to $1,096. And those are colossal losses. [MUSIC] What triggered them? The answer is elusive. The prices for their wares have been come down at all. Some of them are still going up all the time. But I've been through many boom and bust cycles with these companies. And the stocks always start coming down well before the business deteriorates. You can't see what's going to happen. That's what I always say, though, you have to sell the parabolic moves more than this later. That these shortage is triggered because parabolic moves always end. The stocks just anticipate that ending. In other words, the stocks fall first. And then the numbers go down. My best guess, remember, there are two Korean companies that are the biggest memory makers. I just talked about it. But maybe the Chinese, which are struggling with memory pricing, have managed to produce more chips than we know. And some of the producers in New York and Asia, and therefore, switched to China. Two users in New York, switched to China. Maybe they're about to place fewer orders with the Koreans, busting the shortage. And that would also explain my Apple, big buyer of memory. So it's stock hit an old time high today. Not a conspiracy theory, just a conjecture. Now, we are going to get a real chance to see if these described memory stocks can reignite. Because Seagate reported a very nice up such a price. It's very evening. And it is trading higher after the close. About 50 points higher than where the trading ended at four. But here's the thing. These stocks all traded higher initially after the report are already. We need to watch Seagate like Walk to Sea tomorrow if the money can flow back to the company stock. If it can, we can be in your improved mode. If it can, let's just say, well, they all trade together. Many of those who sold these stocks to take capital gains will keep redeploying the capital away from the kind of tech that's found in the data center, though. And we sold that all day today. Now, they certainly aren't selling this a black up demand for data centers. That demands ferocious. We just found out today that met and black rock are getting together and build a $14 billion data center. Every day we get used deals like, every day I'm not kidding. This weekend, we got hundreds of billions of dollars of these deals. Exactly like them. No, they're selling because they're afraid of the whole group. They're concerned that the big buyers of this data center equipment will slow their spending or stick to their current budgets. And part because they saw how sellers swarmed out of Alphabet stock when it raised its capital budget to get even bigger in the data center. They saw the stock of Alphabet raised, they saw Alphabet raises capital budget, which was initially going to be $189 billion, up to $195 billion to $205 billion. This stock then dropped 7% on that news and lost $275 billion in market cap. Just on that news, let's see, it raised its spend by about $15 billion in the midpoint and then shed $200 billion. Now, Alphabet stocks recovered a bit since then, but the point remains, perhaps more important. Anyone who participated in Alphabet on this secondary got crushed as a stock went from $355 to $30 when the pit stop is lowest $318. And now Alphabet has negative recast flow. So the data center stocks, once so prized now seemed icy. I expected the tech buyers will try to mount a rally off the C gates good number this evening. I don't know if it's going to last. Meanwhile, I can't believe the games we saw today in Costco and Walmart, which have been such dogs, they're up 1.6 and 1.2%. Respectively, we're much higher at 1.0. So for a company like Service Down Sales Force, jump 4.8 and 4.6% respectively, the food stocks soared. Well, my God, that group is strong. Coke and Pepsi rallying, 5%, Coke on that crank quarter, and 2.2%. Drugs all went up, biotech, was screaming. Now, you can call it a broadening or you can call it a flame. Of course, we have to distinguish among the climbers. And then we start to part of a bottleneck in the data center. They're regarded as a tax. They're hurting the margins of the buyers. There are other companies like Nvidia and I believe Intel that are worth holding on to, because their gains weren't from shortages. But I recognize their stocks have been hurt. Wow, we're taking a beating in this Intel, but I'm going to buy it all the way down to the chapel trust. Why don't we even buy some of them? Because I don't think AI spending is going to collapse. Some of the builders may exercise prudence when they announced their spending plans, and that could be pressure on some of these stocks. But they'll still be okay, just not as good as they were. So much money has been made with the data center thesis, but a lot has been lost of late. If you watch stock on that Google secondary at $355 of your watch SpaceX, where out of the gate, you're in no mood to help finance a data center builder, are you? And if you're a privately held operator, your values likely come down, so assume you just can't see it. The next move might be a down fundraising round, and then perhaps they won't even have enough money to meet their commitments, causing losses all the way down the line, particularly those who extended financing, something I don't like. That's a big reason why the entire complex has been trading lower. There are plenty of other reasons why monies fled the non-tech gross stocks, and the formally hated software stocks. Orals down, rates stable, and FedBIN, you could have been 9/10 from tomorrow. Not that long ago we thought there might have been a rate hike. The earnings of the winners have been far better than expected, health care has really been trampling for no reason. But the overwhelming theme here is the concern that some big company, wary of what happened to Alphabet, says it's going to hold the line on AI spending. No more increases, the market can certainly be wrong. Maybe soon open AI comes out and says, you know what, clear line of profit building next year. Perhaps I am throttling, says time to come public, we're profitable. Then the data center story lives, and you'll wish you own some Dell or AMD or Nvidia or Intel. One month right now though, other stocks are in the sunshine, and the semi-porsche the data center's under salt. When it can flow back, especially considering how low these stocks have gotten, but it sure would help to hear some of the hyper scalers say they're making a ton of money with AI, or at least not losing it, or even a line of sight to profitability, that can say to the group. But does anyone have one? I don't know. Let's go to Robert and Europe, please Robert. I just want to let you know as I do. [BLANK_AUDIO]
every as they do every year that's my birthday this Thursday. >> Oh, my Robert, we're going to have to send you some cupcakes like we said Heather Gaines and dad because they were delicious. >> Jim, my favorite song is Happy Birthday to me, Happy Birthday to me. Thank God for Jim Kramer. He keeps making us money. >> You cannot, my dear Robert. >> You cannot, you will never be confused with Robert. So last year I said, I didn't quit your gig of this, this one I'm saying that Sinatra, no. >> It's not, not just on the monitor. >> All right, you're right, what do you got? >> To work. >> Okay. >> The next company is an American biotech that develops in markets, robotics designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the DA, the Vinci surgical system, Jimbo. Now I think this stock is on sale. Hospitals are easily buying the company's new Vinci 5 systems with placements jumping 18 percent in the second quarter. >> Let's stock is at a low and Jim, I cannot buy it unless I speak to you, but I think this is so much, much higher intuitive surgical. >> Okay, all right, look, I was thinking of his hand, Robert, here's a problem. They did not have a good last quarter. However I agree that it's down so much that it is looking up to me down 36 percent. I think this and a lot of the others have been thrown away, have a couple days gains, but don't forget, the quarter wasn't that good. It's not as good as you're singing. Okay, Jimmy Chille says be careful in intuitive surgical. All right, right now the data center stocks, they're a little pain today, but many other sectors are in sunshine. May I buy you tonight's space? It just looked about it since its IPO. Is it an optometrower? Now it reversed in mid-day trading. I think it will go ahead of a big lockup expiration though. And is the best opportunity in the market hidden underground? I'm thinking with the Aryan stocks for a second A. Give you my take on this incredibly good, gross stock group of rocks. And shares a new car, I'm gonna tear this, you're speaking of grossed, oh my God. The growth in steel businesses is just nothing short of amazing. And new course, the leader, stay with Kramer. Don't miss a second of Mad Money. Follow @Jim Kramer on X. Have a question, tweet Kramer. #MadMensions. Send Jim an email to
[email protected]. For give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com. Last night I got a call about SpaceX from Kevin and Kentucky. And I told him what I've been saying all along. This is a stock that requires a lot of trust. If you trust you, I must. Then it's worth owning for the long haul. But if you don't trust him, forget about it. But now that the stocks come down really 50% from its initial highs, I figured we're circling back. Look, this one could be very interesting. It's been a little more than six weeks after its IPO. SpaceX hit a new low of 107 this morning. Down almost 53% from its high. But then it had this really terrific bounce off that low and ended up the day nearly 3%. That is a very positive pattern, people. Maybe some of the big sellers are cleared out? Still, even if you like SpaceX, these probably pays to be patient because I expect to see some lower prices in the not too distant future as I will explain. After peaking 225 on its third day of trading, it was being viewed as a meme stock, a trillion-dollar meme stock. SpaceX has sunk 116 in change, packed the industry line. Why has it been such an awful trade? Look, this is a rocket play with a big satellite internet business. I love it. But also a major data center operation. Data center plays have been crushed over the past month. That said, it's not like there has been a good news here. Well, this month the quite period ended for SpaceX and most cell-side analysts initiated coverage of the stock with 28 buy ratings. Seven holds just one cell. They're extremely bullish. And if you look at most of the whole ratings, their price targets aren't quite a bit higher than where the stocks currently trading. It kind of makes it a de facto upgrade. The key here is that we now have the consensus estimates for SpaceX future numbers and those analyst projections, they look pretty darn good. The consensus estimates have SpaceX losing money this year, though they expect profitable quarter starting right now with third quarter of 2026. Then they have the company reporting a modest profit of around 70 cents per share next year. Come to 2028, Wall Street expects SpaceX to earn over $3 per share. With a stock now around $1.16, that means it's trading something like 38 times the 2028 numbers. I know that sounds crazy for some stocks, but it's not particularly expensive for an elite growth stock run by the greatest industrious of the century so far. So if you believe these numbers, this stock is definitely getting cheaper as it comes down. And I like that. The question is, should you believe the analyst estimates? When you take in these projections, the analyst expects that a lot of the heavy lifting to come from SpaceX's AI division, which includes everything from its colossus data center to its GROC AI patterns, a platform, and other AI applications like Cursor, the AI coding tool the companies acquired for $60 billion that everybody loves. They're expecting, well, all the people who write software, they're expecting solid growth from space business, genuine strength and star league. And then a revenue and a release is pushing for the AI business. Is that reasonable? Well, the spoolshowling for the AI business is based on large part on two big deals that SpaceX announced in the weeks before its IPO. And they are a really good deal. So in May 6th, they announced this massive deal with anthropic that is SpaceX renting compute at a cost of $1.25 billion per month. Then on June 5th, the company made a deal with Google, which is Google paying them $920 million per month for the same thing. Put together, we're talking an additional $26 billion in annual revenue that came out of nowhere. When you build out data centers, you can rent out your excess computing power for a big premium. And that's what you can right now. However, those two deals can be canceled by either party with 90 days notice. From my perspective, that makes this new revenue stream very tough to model because nobody's really locked in. And if you look at the bullish annual assessments for 2021, they're clearly assuming we're going to see a lot more deals like these two. That's certainly possible, although there aren't many other companies with such deep pockets. And that's what I worry about. It's really a small group of stocks of companies that can do these deals. Next Tuesday, though, we're going to get a glimpse into how the AI business is doing with SpaceX reports. Any color at all about the nature and durability of these kinds of agreements? Well, a variety of indication that similar ones are in the works, that could prop up the stock. What else will we listen to? Well, you might have heard that SpaceX had a successful test flight for its next generation to start your rocket list last Friday night. This was the 13th test flight in the first one since the IPO. That's key to the future of the space business. Finally, for the last segment, connectivity. We want to see continued progress for their star links, satellite, internet, and mobile service. I think the viewers know that I love this star link business. It has excellent subscriber growth because it offers incredible service and a surprisingly low price, especially in Europe. But expectations are high here, so SpaceX really needs to impress, especially since it's not known how clear, how good the service is in urban environments. But beyond the other words, there are two big issues with owning this stock right now that I need you to know about and think about. First, I believe it's likely that Elon Musk may only decide to have SpaceX's buy Tesla and consolidate his publicly traded companies under one roof. Tesla has been doing terribly. It's just reported a week quarter and the stock is down to nearly 40% from its highest place in December. Because SpaceX has a dual-class ownership structure, if Musk wants to use the buy Tesla law, there really isn't anybody who can stop them. Personally, I think SpaceX has a better mix of businesses than Tesla, so I don't know if I love the idea. Second issue, though, flow. Remember, very few of SpaceX's shares actually trade on the open market right now. Currently most of them are under lockup. But next Thursday, 911.5 million shares will be released from the lockup, which is more than double the stock's flow. By my mass, SpaceX will go from just 105% of the shares outstanding to almost 12%. Maybe that's why there's been such a big short activity in the company. I can't tell you exactly what that means for the stock, but generally speaking, more supply does tend to result in lower prices. Even if they reported great quarter on Tuesday, I don't know if it can withstand the lockup expiration on Thursday, unless the shorts come in and cover, and maybe that will be the trampoline that you need? I don't know. Here's the bottom line. SpaceX has been a real dog since it peaked on the third day after it became public. But I know there's a lot of interest in this one and a lot of faith in you, a lot of Musk, and I like the way the stock went out today. Hey, I don't blame anyone from leaving him. I believe in him, too. Guys got incredible on-term trucker. However, if you're really looking to buy SpaceX, you know what, maybe buy a little, but I'm really begging for the kind of weight bit if you want to go big for that first wave of lockup when the insider is selling to a spark next Thursday. He patient. So let it drag the share price lower before you pull the trigger. We have money's back after the break. Coming up, they formed the foundation of most of our world. So can aggregate stocks be the foundation of your portfolio? Cramer is digging in. Next. Yes, I pay this whole cool visit to CRH. That's the largest gigahertz producer in North America, rocks at their Mount Hope Quarry, not that far from here in Northern New Jersey. And I spoke to CEO Jim Minter. This macro rocks for infrastructure and construction, looks like gravel, has been a terrific long-term performer, up more than 80% since his switches primary listened to the New York stock exchange nearly three years ago. But the stocks down 17% year today.
>> Mostly thanks to worries about higher oil, higher interest rates. We've seen similar pullbacks in bulk materials, the other two big agonets companies, big three. That's why I think this group deserves a closer look. I'm always looking for things that are down that can go higher. I don't care that much about the things that are flying. Remember right now investors are looking for growth wherever they can find it. It's not only briefly, it's not related to data center. People in diversification are on a planet. I see an opportunity in the aggregate companies. They've been hammered by high oil prices because acquiring stone consumes a ton of diesel. They've been hammered by higher interest rates because they make new construction more expensive and finance, although as we saw from series yesterday, a lot of businesses that they have is road building and the government maintains the road. It's a good customer and oil is already plundered back to the 70s and treasury yields are coming down too, so that's not so bad. Because these companies all have major barriers to entry for the simple reason that rocks are really heavy and less expensive to transport. You need local quarries wherever you are operating and getting permits to start a new one to test take years, assume you need to get a permit. Not a lot of companies, not a lot of homeowners want quarries next to them. That gives the established producer Schmitt as price and power, which is why their stocks have been since long term winners. Sure, the agonets companies have some data center exposure. Other rock can form the foundation of a data center cap, as I saw a model of how the stuff that's really underneath the data center, it's pretty intriguing because it's not just rocks, but you need their stuff. And you know what, it can also work underneath a highway, a bridge, an LNG facility, a warehouse, a housing involvement. That's where some really specialized rocks are. It's kind of diversified exposure, enough AI infrastructure to apply upside, but enough diversification that one hyper-scale or changing its capital spending plan won't wreck the entire business. CRI should remind me of this opportunity when I visited yesterday. But it's working, you know what, I didn't really know CRI said, well, I've been much more of a fan of Volcano materials and especially Martin Marietta. So let's take him one at a time, I think it's really valuable. Volcano materials is the nation's largest producer of construction aggregates. Now this isn't the example I used in how to make money at any market to demonstrate what long term compounding from a gross stock can look. And incredibly basic business rocks. Get this. One dollar invested in Vulcan on December 21st, 1925. One dollar would have grown to 393,492 dollars by the end of 2023. So remember, sure, you give it to your kids, they had heard it maybe even goes further and listen to that kind of thing, okay? That's a big win. Now it didn't happen because someone perfectly timed every housing cycle or recession or infrastructure bill. This is a testament to the staying power and long term growth of the rock business and the earnings power of a well-run company when you hold it for decades. That's what we try to teach here on the show. Now both of the imports tomorrow before the opening, we know the company executed well in the first quarter despite the difficult environment. I'm optimistic even though this quarter may also be a tough one. And look, the stock is not cheap, especially compared to its peers. This one sells for almost 32 times this year's earnings estimate. That's like a tech stock. This is 31 times from Martin Arietta, also expensive, just 17 times for C.R.H. which is one of the reasons why I want to spend some time in. So yes, you're paying a premium for volcumatures. But companies like these rarely look statistically cheap because the market understands the quality of the reserves and pricing power. Volcan has repeatedly demonstrated over multiple decades that it can grow profitability through different environments. If rates eventually come down and housing recovers, volcan should have volume upside on top of the pricing and productivity gains it's already delivering. But tomorrow's quarter confirms that volumes, pricing and margins remain intact. I think we get a nice snapback. We saw a lot of the snapbacks in today's session. How about Martin Arietta materials? The country's second largest domestic aggregate producer. Martin Arietta, they report Thursday and its previous quarter was strong. I'll be it not perfect. These guys are going to show a lot. The big story here is their agreement to acquire the wastes. Now that was a North American company and it's the deals big. 13.5 billion in cash and stock. The award-nive came on CME seeding. My Martin Arietta is making such a large bet on a major producer of Lyme, Dolomitic Lyme, you like Dolomites and industrial minerals. The deal brings 20 queries in production facilities, 45 distribution turbos and 1.8 billion annual sales. Lyme starts with the same core acquiring skills as aggregates, but it serves a quarter collection of end markets from steel manufacturing to wafer treatment, environmental applications to infrastructure, soil stabilization and industrial production. There are no meaningful substitutes limited in poor competition, yay, and enormous barriers to building new supply. And that's why Martin Arietta is willing to pay so much for this thing. It'll make them a heck of a lot more proper, but also make them more diversified. But I can't ignore the risk here. Martin Arietta is a strong takeover record. They've done really good job. But these companies are long term roll ups. They buy assets repeatedly and sometimes they get the timing wrong. The was is a terrific business, but Martin Arietta is paying a full pressure, issuing a lot of stock and taking on some substantial debt. That's worrisome. So there's some execution risk and we also have to worry about the broader economy. That's the key difference between Martin Arietta and Volkan today. Volkan offers the cleaner, aggregate story with a focus portfolio, a strong unit of profit and a less near term risk, and almost a similar multiple. Martin Arietta potentially has more upside. But the was steel also means I think a little more risk. I kind of like the CRH is buying and making an acquisition. And you just say to yourself, are these acquisitions of bridge to far if the economy goes, well, the economy doesn't do well. Plus, both companies remain hostage to the broader economy. There's real earnings risk when construction volumes decline. Whether it's poor, public funding, weekends or energy costs spike. But their earnings power is not as boom bust as it used to be. And that is why these stocks have been able to compound for so long. So they periodically ugly construction cycles. And it's why they get such high price studies, multiples, even though they make rocks. In the end, the three big aggregate names have pulled back hard. And if yesterday's with the CRH quarry, I wanted to go over my two favorites in the group, Volkan and Martin Arietta. Because they own scarce, difficult to replace assets that society simply can't function without. Roads need to be fervished. Bridges need to be built. Factories, power plates, LNG terms, and yes, data centers, all need foundations. We can't live without these rocks. And very few companies can do all those projects that I just mentioned. So the bottom line, when I see Volkan and Martin Arietta pulling back, it makes me want to swoop in. This is a moment where we're looking to diversify away from data centers. And I think that you could do a lot worse than the rock prices, which have surprising growth. That said, don't call them the earnings coming this week. And the background environment is still uncertainty. They're admitting tomorrow. I recommend putting both the shop list by other stocks into weakness, which you often get. These are all lasting companies with much bigger modes than you would expect for companies that in the end make stone, not the most special of commodities. Let's go to Robin and Callie, Robin. >> Hey, Jim, is Sterling infrastructure of I at this time? >> I think that I know it got hit pretty hard. I think it's a really, really good company. That particular segment did go parabolic. And when the stock goes parabolic, we're not quite sure where it's going to bottom. This one has almost taken out the beginning of its parabola. So we're close to it. But down, down you today, you got to wait a couple of days. Volkan and Martin Arietta, we're not going to marry any materials. Our rock stocks and they rock. All right, I think it's biopsy. That much remand money had, including my excuse of it still making new core. And we're seeing a major unwinding in a lot of former market authorities. So what's going on here? I'm breaking down the moves and how to handle them. And they're a parabola. And order calls rabbit fired tonight, so this is the lighting rep. So stay with Kramer. [MUSIC] >> Look at the stock of new core code. The nation's pre-eminent steel maker reported a better expected quarter last night, for already pre-announcing to the upside back in June. Not only did they deliver a top and bottom line beat, they gave very bullish guidance for the current quarter too. In response, the stock deserved a these shut up 7% day. It's now up 84% over the past 12 months, a steel maker. Some of that's because President Trump raised tariffs on steel imports to 50% last year, protecting new core and its compadre from far and dumping. Even when the war in Iran started, the stock kept marching higher. It's like nothing can derail this thing. So, can it keep running? Let's check it with Leon Toppalli and he's the chairman and CEO of new core, a great American company to find out. Mr. Toppalli, and welcome back to the main money. >> Thanks Jim, appreciate you having us. >> Okay, so Leon, let me ask you, is this the greatest demand environment you have ever seen in your career in new core? >> Yeah, it's funny, I share that exact quote today on earnings call Jim. I just crossed my 30 year mark with new core and I would tell you the demand drivers are unlike anything I've seen because their is diverse, is wide in terms of markets for military, towers and structures, data centers, energy, energy infrastructure, non-risk construction, insulated metal panels and towers, structures, all of them are at or near record backlogs. And so it is absolutely, unequivocably a demand environment like I've never seen before. >> And would there be a demand environment like this if we had the old rule?
also in tariffs where there really wasn't, you can pretty much, they look, the government looks the other way when other countries try to flood our imports. Look, you and I have talked about this for a long time. We are in a global excess over supply situation and nations around the globe are trying to find a way to dump and subsidize their fields to land on the shores of the U.S. But we've seen in the current administration and I've got to applaud President Trump, our U.S.D.R. Jameson Greer, Secretary of the Latin, they understand it. It's really to me an investment in American manufacturing and the steel industry. But to answer your, the short answer to your question is, yeah, I think we would. Well imports are at the lowest levels I've seen in my 30 year career. At the same time, the demand drivers are unlike anything I've seen. There you've got the dual effect in place today and quite frankly, new course at a position at the tip of the spear in almost every one of those instances to win. We have the capability, the volume, the clundliness, the grades, just the differentiated capability to reward our shareholders handsomely. And so I love what our stock's been doing, but quite frankly, we're just getting warmed up Jim. Not everything we've invested in is yet online and that's coming. Now the end of this year, we will start it up West Virginia, the largest investment in the history of New Corps at $4 billion invested in Mason County. When that comes online, you're going to see a through-cycle performance that New Corps has never achieved before. Now do you think that there is an inflation problem in the country? And could you try to estimate whether there's any real inflation in steel despite the tariffs? Look, I think there's some. And when it comes to overall GDP to steel demand, well, you know this is better than anyone. It is a commodity driven business. It is supply and demand. Pricing is going to be dictated simply by the consumer. Now when you pull out five or six million tons of steel out of imports that were flooding our nation, man, it creates a very, very balanced level playing field where New Corps and other steel producers can win. And again, I think we are the best positioned in our industry to take full advantage of that. Yeah, it's funny. You got to go back to Hamilton. You really do. I mean, Hamilton said if you do the tariffs, what will happen is our country will thrive and will build plants. Now that, how many people have you put to work since we decided to take this industry seriously and not have it destroyed by imports? You know, in the last seven years, Jim, we've created about 9,000 direct New Corps jobs and about 30,000 indirect jobs through contractors and on campus facility partners. So we continue to reward the communities where we live and work. We're so excited about the investments we made in Lexington, North Carolina. Again, Mason County, West Virginia, Kingman, Arizona, the New Galvelines at Berkeley and Crawfordville, what we're doing in CSI, the investments in Galatin and almost every division that continues to be reinvested in our three towers and structures facilities, two of which are running now. The third that will start up early in 2027 are all going to create again, the highest lift New Corps ever seen. Now, what do you want to be done with USMCA? I know the Trump administration is opted not to renew it. I thought I was doing okay for you. I mean, is there something that could be better? Look, I think there's a few things you can tweak, right? Could we take rules of origin and content for automotive up a little bit? Yeah, I think we can do that. But 232, I agree with you, was a good vehicle. Except when you see violations of 3, 4,000 percent of products coming across from Canada into the country or from Mexico into the United States. USMCA wasn't the problem when we had people that were violating it and not creating outcomes that were going to create a more level playing field as a problem. So I think today you're going to see a year to year review that actually will tighten those things up. Again, I think we have a USTR and James Ingrier that understands this very well. And I think you're going to see that the country will win as a benefit to that annual review process. Now, Leon, the last thing I want to ask is I deal with a lot of these so-called hyperscalers. And they go into a town, they say they're going to create all these jobs and don't worry about a thing. It's really going to make your neighbor better. I always ask them, do you ever think about what New Quarters, when they go in ahead of time and make sure that it's the right place for the people and that you're the right guys for the people? No one's, has anyone ever contacted you of all the companies I've said they should talk you should talk to Leon, he knows how to do it. Have any of the guys called you? Every one of them I've mentioned it to. You know, we have, we have a great relationship with many of the hyperscalers in the very biggest ones. So the, I guess, Jim, for me, the most gratifying part of that is when I get to go to those plants, when I get to go up and I just was up at our plan in West Virginia to see the lives that are being impacted, to see the community's change where we can come in literally at the grand opening, right, a million dollar check to the school system, supply the food banks and food pantries, reinvest in that community, and then hire locally, right? Jobs that were paying $130 to $150,000 a year annually. We take great care, not just of our team, but the communities that we live in and that is going to continue a long time in our future and how we operate and the things that we do and that we value. Well, I know a lot of them watch. I hope they listen because there's a good way to do it and not so good way to do it. And I know you have always done it right. You and your predecessors have always done it right because that is the New Corps way. That's Leon Topali and he's the CEO of New Corps. We, Leon, it's always great to see you on the show. Thank you. Back at you Jim. Yeah, money back at the front. Coming up, you've got questions, climbers got the answers. Get charged up for a fast fire lightning round. Next. [MUSIC] [INAUDIBLE] [MUSIC] [INAUDIBLE] [MUSIC] [INAUDIBLE] [MUSIC] Well, I know controversial stuff. I really prefer just own willy. Let's go for the goal. Own willy. Let's go ahead and fill in real on. Jim, how are you doing today? I am doing well. How are you, Phil? Jim, I'm doing, I normally tell you I'm doing fair to Midland, but I'm doing better than that today. I'm doing better than that. And I just want to give a quick shout out. I have a grand tour that goes to college up in the app state there in Boone, North Carolina. And she has her friends listening to you every day almost at six o'clock. That's what I'm looking for. Younger people would hurt. We know that from the wedding. I was at this weekend. Let's go to work. Yes. Her name is willy. And she says that they rather listen to you more than listen to that tip top thing. But any there go. There you go. I like having, so we both have separate accounts that I manage for her. And this stock is going to report August 4th. Now we thought it's important to know that I've taken out our course of basis. I can't let both accounts. Can't let us. She's lily is 20. Should I let her it's and this is it's going to report like I said, August 4th. Should I let her have to just keep her shares and maybe take some of mine out. We're doing very well with it. What stock is that? Okay. The stock is Alistair networks. I really like her. And risk is not that dependent entirely on the data centers. Got a lot of things going for it. I think a risk is terrific. I wish you come back. Jason will come back one because he's just crushing it right here. Let's go to Betsy and California Betsy. Hey, Jimmy, one time fan and the one of the most important lessons I learned for you is not only follows the stock and follow the money. Follow the CTO. Yes. And Jim, you know, when I when Jim Conroy was at Booth Barn, they were flourishing. Okay. Booth Barn is in the toilet. Okay. Booth Barn near today is negative 9.77%. Disappointing. Disappointing. Right. Exactly. But what stores, which is my phase in this space because of. I totally agree. Rolls-Gorls. And he has done a great job. And it was good to begin with, but now it is just terrific. I like raw stores. And that lead job is the inclusion of the Lightning round. The Lightning round is sponsored by Charles Schwab. At the beginning of the show, I talked about how some stocks really can get hard hit. We've had some true destruction here. Not just in the district memory stocks, but also in stocks like Corning, interesting software guides or until last week, after good guidance. We keep buying in top of the challenge, trust, but it's traded 142 at the end.
the June analysis 86. At that much good quarter in solid forecast, I thought the stock would handle the onslaught well. I was clearly too sad. I still think it tells a terrific turnaround story. Unfortunately, this market does seem to care all about my view on that one. What's going on here? We're dealing with something that I have chronicle multiple times, the undoing of a power-bolic move. This market seen the most power-bolic moves I can ever recall. That's where you have a stock that's made around a curve and then goes almost straight up. Vertical, relentless, delicious. Just see when it's created a mobile day or even weeks of breathtaking. They happen so rarely that we've had dozens in the last year, all thanks to the advent of the data center. I always advocate taking something off the table when a stock goes power-bolic and power-bolic and power-bolic, cut, cut, cut. That's what my child will trust did with both arm, holdings and corning, although we did leave some corning on just because I felt like we were planning to have some money. There's a problem with these moves. Most good stocks go over time like this. Stair-step fashion. That's what I like. If there's a setback, it's likely that the stock goes down to the previous stair, maybe below that a little bit. Kind of like a mini game of chews and ladders. It might be in a penalty box for a bit, but if any good, it can begin to rally on some good news, maybe lower oil prices, lower rates, and the war, I don't know, a bit of extrusion, it can make a comeback. But a setback by the power-bolic move, well, these are disasters and they lead to panic confusion. Take Sand Disc, which is probably the most undervalued at one point. Here's this stock that's fallen from $2,354 to $1,096. That is a beat down that is worthy of clumber-wagging to Rocky Thruir. Even if that decline, though, Sand Disc is up to 361% year to date. Now, you can't really call up a bargain. A stock is up that much. And the numbers haven't even been cut yet. They're still hoping that a lot of these buyers still think that the numbers are going to be made. Charis would tell you that the stock of Sand Disc is more dangerous here than it was when it was higher. Because the stock that goes down after a parabola has been busted rarely stops for the parabola again. And that's just happened right now. There's so many broken parabolas that people are just fleeing because they can't figure out what anything's worth. Plus, the latest quarter of their report from all of these stocks were blowouts. And honestly, God, shock him more. Yet they're still in doubt. So even if another one of these companies reports a terrific order, can it really turn things around? Look, we saw C-gay report a fantastic quarter that's very evening after it fell hard since the last one. So then we got to ask, can the quarter resuscitate the stock? I don't know. I think it's going to be difficult. As some owners might just want to get into another kind of stock knowing that what you almost never see a second parabola after the first one's demolished. I can't think of one. That's why I try not to recommend Parabolic Stocks. I always say you should trim them on the way out, perhaps stopping when you're playing with ounces money. Like we did with Corning. And they always do get wiped out in the end. Like it did with Corning. My advice, don't be tempted by these declines. A post-parabolic stock may look cheap to you, but the shareholders are all trying to figure it out. They're trying to figure out how to get out alive. They'll sell on any uptick, somewhat using borrow money, and one stop away from the poor house. Instead, I say, go for the stair step stocks. They won't seem to make you as much money as fast as a stock running a parabolic move. But notice. Notice the word scene. Remember, you don't make money until you sell. And the vast majority of people who are in a parabola never let go. They can't part with rockets even after the rockets are spent. Those people are now weak shareholders. It's not the companies themselves. It's the shareholders that you should be worried about. I say you stay away from them. I like to say this always one market summer. I promise I'll find just for your hearing money. I'm Duke Kramer, see you tomorrow. [MUSIC PLAYING] All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet, or another medium. You should not treat any opinion expressed by Kramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable. But neither CNBC nor its affiliates and our subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full mad money disclaimer, please visit CNBC.com/madmoneydisclaimer.
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