Stocks discussed on the in-depth session of Jim Cramer's Mad Money Program, Thursday, March 24.
Cramer is concerned about the Fed's rebellion. He now says that if the Fed reverses its stance set a week ago, then markets could be in trouble next week. How can the economy get stronger or businesses plan if unelected officials can upend policy set a week before. "As someone who is trying to be constructive about stocks, this mutiny is inexplicable. You simply cannot confuse people like this. It is just wrong," said Cramer.
Janet Yellen's commentary on the rate hike meant that the dollar is peaking, which could make it easy for investors to own international companies. Yellen gave insights on what the Fed is thinking at the FOMC meeting. If the Fed's mind is so fickle, no one wants to take risks. "I am not against free speech. I am simply against anarchy, and that is exactly what these recent discordant statements provoke," said Cramer.
The Fed sending mixed signals can be chaotic for the market. If more jobs are created than expected, then the dollar will roar higher and the market will give up gains. "Hence why I simply cannot be as positive after this week's Fed rebellion," he added.
With that, Cramer discussed the game plan for next week
Cramer will be watching Yahoo's (NASDAQ:YHOO) proxy battle.
3M (NYSE:MMM) will hold its analyst meeting. Cramer thinks it's worth owning the stock.
Micron Technology (NASDAQ:MU) will report on Wednesday. Cramer thinks it will report terrible numbers given how levered it is to personal computing.
Lululemon (NASDAQ:LULU) will also report. Cramer will watch closely to see the state of apparel, which is not doing well.
Nasdaq (NASDAQ:NDAQ) will hold its analyst meeting on Thursday. With no IPOs in sight, it could be bad news.
BlackBerry (NASDAQ:BBRY) reports on Friday. At some point it has to be valuable given the cash it has on the balance sheet. That point has not come yet. Non-farm payroll numbers will be out on Friday, which could create more chaos given the Fed's changing mind.
"It is tough to make money in a week where you know it can be all washed away by a couple of unelected Fed-heads disagreeing with the stated position of the board taken just a week ago," said Cramer.
KB Home (NYSE:KBH)
KB Home is a home builder mainly concentrated in Arizona, California, Colorado, Florida, the Washington, D.C. metro area, North Carolina, Nevada and Texas. Their last quarter was terrific. "So, what is worrisome here? This is only a $1.3 billion company, and it doesn't have the reach of the other major homebuilders."
The company's positive outlook on the conference call was encouraging. The company is also seeing labor constraints, rising land prices and other framing costs. "A national rate hike because of strength in California would be a mistake, but it is a mistake that several of the Fed presidents seem eager to make," said Cramer.
Cramer does not want the Fed to listen to the company's conference call or they will be hellbent on raising rates four times this year. The company is also a natural takeover target as it trades below book value. That's the reason the company has bought back 9% of its own stock.
Though KB Home is worth owning, but Fed's stance on the rate hike could be troublesome for the company.
Cramer's list of elite CEOs
Cramer continued with his list of 8 elite CEOs.
The fifth elite CEO on the list is PepsiCo's (NYSE:PEP) Indra Nooyi. She has been the CEO for 10 years during which the stock has gained 56%, outperforming the S&P500 by 6%. She has cut costs for the company and moved into healthier snacks as well. "Nooyi's tenure at the helm of this gigantic snack and beverage company has been truly extraordinary," said Cramer.
Next on the list is Starbucks (NASDAQ:SBUX) CEO Howard Schultz. He returned to the company as CEO in 2008 after stepping down in 2000. Since then, the stock has quadrupled. He has used technology to make inroads in customers' lives and to create a stronger brand. "In fact, I would go so far as to say that Starbucks is a tech company that happens to sell coffee, tea and food," said Cramer.
How can an elite CEO list exist without Facebook's (NASDAQ:FB) CEO Mark Zuckerberg. He has made the company into a $239B giant that commands pricing power for advertisements. He has been aggressive in making acquisitions of Instagram, Whatsapp and Oculus virtual reality.
Last on the list is CEO Inge Thulin of 3M (MMM). He took over as CEO in 2012 and transformed the company. He has made a complex 40 business company into a streamlined business of 26 units.
CEO interview - Amplify Snack Brands (NYSE:BETR)
Amplify Snack Brands went public in August 2015 at $18 and its stock then fell 36%. The stock has been doing better in 2016 thanks to its earnings last quarter. Cramer interviewed President and CEO Tom Ennis to find out more.
Ennis mentioned that Amplify is at the center of the two biggest food trends - snacking and eating healthy. The combination has been working well for the company and it is growing at 40%. He said that food must be simple, clean ingredients and consumers will manage their own calories.
The company started with one store and has been growing since. Retailers love Amplify snacks as they make money on them and they move quickly from the shelves.
Cramer said the company's stock is cheap.
Viewer calls taken by Cramer
AT&T (NYSE:T): Stay the course as it's a fine stock.
EMC Corp (EMC): There is no point looking for an arbitrage situation. Stay away.
Kroger (NYSE:KR): Their quarter was a little slow. It's a good stock to own.
Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.