During the October Monthly Meeting , we took questions directly from Investing Club members. Here are Jim Cramer’s and portfolio director Jeff Marks’ responses. Their answers have been edited for clarity. 1. Why do rising interest rates have such a negative effect on technology stocks? (Rod) Jim Cramer: When the Federal Reserve started raising rates, we made sure to reiterate that we prefer companies that are profitable, generate cash flow, and return cash to shareholders because these characteristics help mitigate the risk of higher funding costs associated with higher rates. Mega-cap tech names have been holding up because they earn a lot of money. As an example, during the period when rates started to soar, Nvidia (NVDA) initially got hurt but the company proved resilient as it kept getting more orders from customers. Jeff Marks: It’s frequently viewed that the present value of a company is based on the sum of future cash flows discounted back at a certain rate – the rate often used to discount back is based on Treasury yields. The higher the interest rate, the lower the present value of each cash flow and thus, a low stock price. Funding costs also matter for growth companies, which are often in tech. If rates are higher, it becomes more expensive to borrow to fund growth and expansion plans if the company doesn’t have the cash. That’s why we made the change last year and said you have to own profitable companies that generate cash flow when the Fed starts hiking rates. 2. Why haven’t the stocks of oil companies risen at the same rate as the price of oil? Is this just a lag effect or are fears about a slowdown offsetting the higher oil prices? (Todd) Jim Cramer: I believe that the rally in oil was a short squeeze that is now over. I don’t think it deserved to be in the $90’s because it didn’t have the economic growth. President Joe Biden mistakenly did not refill the strategic petroleum reserve so he was not able to offload oil. I do think Russia ordered oil and sent it to China which kept it off the market. Our own producers surprisingly did not break ranks. What has happened is the artificial nature of the short squeeze engineered by traders and whole countries came apart when we realized that there were no bids and there was not enough oil in the market. We own Coterra (CTRA), our play on natural gas, which keeps edging higher. CEO Tom Jorden was right when he said that he was putting his bet on natural gas and he’s crushing it. If you don’t own Coterra, I think you’re making a mistake. Jeff Marks: I think the market sniffed out that oil was closer to making a near-term top and that’s why the stocks weren’t being priced like oil was making a run to $100. But if the price of oil stocks remains disconnected from the price of the commodity for long, then what tends to happen is you get some M & A chatter around one of the bigger fishes looking to acquire an independent. That’s exactly what played out last week when the story about Exxon’s interest in Pioneer (PXD) was renewed. And, that deal was announced Wednesday. We plan to sell our PXD stake as soon as our trading rules allow. 3. I am concerned with Apple’s decline. Is it time to begin trimming or still “own it, don’t trade it?” (Donald) Jim Cramer: Many years ago when Apple (AAPL) traded in the $20s and $30, Shark Tank investor Daymond John came on “Mad Money” and recommended the stock, saying “stick with it, it’s a winner.” John appeared on “Mad Money” on Tuesday and said he believes the upcoming Vision Pro from Apple is going to be a winner too. There’s an opportunity for Apple to create a partnership with ESPN and pull content onto the miraculous Vision Pro mixed reality headset. Jeff Marks: Still in the “own it, don’t trade it” camp. It’s served us well for many years – through rate hiking cycles, pandemics, and trade wars – and it’s been better to hold it through all those events instead of trying to time the sell-point but also the re-entry level. Our Club analyst Zev Fima recently showed us the math behind it . 4. I’ve had Salesforce for quite a while on your recommendation and have a solid gain. But It’s fallen roughly 10% in the past month – more or less in line with the Nasdaq. Do you still think this is a long-term hold? (Peter) Jim Cramer: Marc Benioff, co-founder and CEO of Salesforce (CRM), is determined that artificial intelligence is going to produce more profits for companies which will then produce more money to hire people. The stock jumped after it announced a better-than-expected quarter . There are people who say their business is weak but this business is on fire. Jeff Marks: Yes, I do, the company has made great strides expanding margins and increasing free cash flow, while keeping its steady cadence of around 10% revenue growth despite the uncertain macro. Salesforce has gotten better at managing dilution with its buybacks. The company is still the leader in customer relationship management and its generative AI tools could add a layer of incremental growth. 5. In light of the government’s anti-trust challenge, is Amazon “dead” money? (John) Jim Cramer: FTC chair Lina Khan does not have a strong antitrust case against Amazon (AMZN) – her arguments don’t make sense. Khan has had it out for Amazon since she was in law school and the case is garbage and it will be thrown out rather quickly. Jeff Marks: I don’t think so because I don’t think anything is going to come of it. And if anything, we’re in the camp that a breakup of Amazon into different parts could unlock value for shareholders. And by the way, I know Amazon recently has made great strides on the cost side and improving profitability, but if Amazon’s different businesses – the AWS cloud unit and retail – were independent, there would be increased scrutiny on each to expand margins and grow profits. 6. Over/Under in the next 12 months that Costco distributes a special cash dividend. (David) Jim Cramer: I spoke with Costco CFO Rich Galanti and he said it’s only a matter of “when, not if” the company distributes a special dividend. We love Costco (COST) because, unlike its retail peers, it doesn’t have theft problems. Costco is one of my absolute favorites in the portfolio. Costco is crushing it. Jeff Marks: I’m going to take “the over” on the special cash dividend because I think Costco likes collecting the 5% interest on its cash. But I’m going to “take the under” on a membership fee hike. 7. Can you review the concept of trading around a core position and give an example of how and when to do so? (Peter) Jeff Marks: What we did with Eli Lilly (LLY) recently is a great example. It’s been a core name since we bought it because we’ve been believers that Lilly had the best growth profile of any large-cap pharma name due to the value of its pipeline. But periodically, when everyone gets bulled up around one idea, the stock becomes a “crowded trade” and gets extended in the short term, which is why we recently trimmed some a few dollars below $600. Sure enough, the stock pulled back to the low $500s over the next few weeks. We didn’t pull the trigger and repurchase what we sold higher at those lower levels, but that cash became of good use when the whole market was getting clobbered last month. And, now with all the positive attention GLP-1s — those diabetes/weight loss drugs like Mounjaro — have gotten recently, the stock looks ready to break above that $600 price. Diabetes drug Mounjaro is expected to get approval to treat obesity soon. Jim Cramer: When you have a core position in a company where you have a long-term thesis, when the stock makes a huge move, you take a little bit of and redeploy it somewhere else in the portfolio. We did this in Humana (HUM) when we sold some HUM shares to secure a 12% gain. With the extra cash on hand, we felt that we had the case to buy, and traded around Procter & Gamble (PG). 8. Why do you like Stanley Black & Decker when you currently state invest in stocks that are making money and not losing money? (Norman) Jim Cramer: We like to have something related to the housing cycle that could make money. The decline in the stock is kind of ridiculous because this is the premier tool company in the world valued at $12 billion, has a strong 4% annual dividend yield, a management team that’s focused, and has gotten its costs down. Jeff Marks: Yes, Stanley Black & Decker (SWK) has had a few unprofitable quarters this year, but this is a special situation. Over the past year, the company was plagued by too much inventory, a bad cost structure, and a complex supply chain. But, the company is in the process of fixing all three. After losing money for three straight quarters, the company is expected to return to profitability in the upcoming reported quarter and the earnings recovery is expected to pick up into 2024 with expectations that it earns more that year than it did in 2022. 9. When you speak of buying on the way down and waiting for the next level, how do you determine what the next level down is? (James) Jim Cramer: This is more of an art, not a science. I learned a strategy from Michael Steinhardt, who is an unbelievable hedge fund manager, called a pyramid style of buying. It’s where you start small and build up, but only if it means it lowers your cost basis. Jeff Marks: You can do this a few ways. Sometimes we use a percentage basis – so on every 3% to 5% pullback. You could also use dividend yields – so if you bought a stock at a 3.75% yield, the next level could be at 4%. But conviction levels matter and what’s happening in the market is important as well. 10. I had a sizeable position in Honeywell for years and the stock is well off its 2021 highs. Should I continue to hold it? (Rhonda) Jim Cramer: We were expecting business changes at Honeywell (HON) and management followed through Tuesday when it announced a reorganization of the company. CEO Vimal Kapur, who replaced Darius Adamczyk earlier this year is reorganizing the business into different divisions starting in the first fiscal quarter next year. We want to see what he does with these changes but need to give the new leader some time to show us how he can bring out value for shareholders. Jeff Marks: I know CEO Vimal Kapur is early in his tenure, but I think the clock is ticking on Honeywell to bring out value and that’s worth owning it for. Yesterday (Tuesday) he announced the strategic reorganization of the company – that’s a positive first step. Next, I’d like to see acquisitions that accelerate growth and dispositions of non-core assets. Otherwise, I wouldn’t be surprised to see chatter around an activist wanting to break the company up, based on the success of the General Electric (GE) and Raytheon Technologies splits. (Jim Cramer’s Charitable Trust is long NVDA, CTRA, AAPL, CRM, AMZN, COST, LLY, HUM, PG, SWK, HON. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. 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During the October Monthly Meeting, we took questions directly from Investing Club members. Here are Jim Cramer’s and portfolio director Jeff Marks’ responses. Their answers have been edited for clarity.
BYD claims its sleek new Denza Z9 GT became the “fastest new energy luxury car” to reach 10,000 deliveries. The luxury model sold for about $52,000 on average and is headed to Europe next to challenge Porsche and BMW.
BYD Denza Z9 GT sets luxury NEV record for deliveries
After it went on sale on September 20, 2024, the new luxury GT is already off to a hot start. BYD’s premium Denza brand hit a milestone, delivering its 10,000th Z9 GT model on Sunday.
BYD claims the Denza Z9 broke an industry record by “becoming the fastest new energy luxury car to deliver more than 10,000 units.” The new model sold for an average of 380,000 yuan, or around $52,000. It’s available with fully electric (EV) and plug-in hybrid (PHEV) powertrain options.
The EV model is available in Pro or Max trims, with prices starting at 354,800 yuan ($48,500) and 384,800 yuan ($52,600).
With a tri-motor setup, the all-electric Denza Z9 GT packs nearly 1,000 hp combined. BYD’s e3 platform provides a 308 hp (230 kW) front and dual rear electric motors with 644 hp (480 kW).
Powered by a 100 kWh BYD battery back, the luxury EV has a CLTC range of over 391 miles (630 km). The PHEV variant gets up to 683 miles (1,100 km) range.
The Denza Z9 GT is 5,180 mm long, 1,990 mm wide, and 1,500 mm tall, or about the size of the Porsche Taycan Turbo GT (4,968 mm long, 1,998 mm wide, 1,378 mm tall) or Panamera GTS (5,053 mm long, 1,937 mm wide, 1,417 mm tall).
The luxury GT is the first to feature BYD’s 9000 smart cockpit chip, developed in-house with TSMC, and can support up to 11 connected screens.
The interior includes a 13.2″ driver display, 17.3″ infotainment, and 13.2″ passenger display screens. It also has a 50″ augmented reality head-up display (HUD).
BYD has already confirmed the Denza Z9 GT will launch in Europe at a lower price than its luxury rivals. It will also launch a sedan variant, shown last year.
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Our Green Deals coverage this week kicks off with a short-term sale through Friday from Jackery which is seeing its Explorer 2000 v2 Portable Power Station drop to its $999 low, among other savings. Velotric has provided a second chance to hop aboard its well-rounded Go 1 Utility e-bike for a $999 low, with some notable discounts/bundle offers on other popular models. We also spotted a discount for today only on Anker’s SOLIX F3800 Portable Power Station that is taking costs to $2,449 alongside its expansion battery also seeing a one-day-only fall to $1,799. Lastly, Goal Zero’s Alta 50 Portable Fridge/Freezer is down at $550, with its larger counterpart sitting at its second-lowest rate. Plus, all the other hangover Green Deals are in the links at the bottom of the page, collected together in our Electrified Weekly roundup – and don’t miss out on the Lectric and Rad Power flash sales that are ending tonight!
Jackery sale drops new Explorer 2000 v2 LiFePO4 power station to $999 low
Jackery is running a four-day sale through January 24 that is offering up to 47% off on some of the brand’s best power stations for home backup needs, DIY work, and outdoor enjoyment. One of the latest releases, Jackery’s Explorer 2000 v2 Portable Power Station, is dropping down to $999 shipped. Today’s deal is following Black Friday trends with a 33% markdown off its usual $1,499 full price, with $1,099 being the more average discounted rate we’ve seen. With today’s deal, you’ll be getting the maximum savings we’ve seen at $500 off, which returns costs to the all-time lowest price we have tracked. You’ll also find this model matches the price from Amazon.
Looking for a compact power station that can not only cover devices you’ll take along on trips, but also appliances in times of both leisure and emergency? Jackery’s Explorer 2000 v2 stuffs it all into one convenient and affordable unit, with a 2,042Wh LiFePO4 capacity, seven port options, and a 2,200W power output that surges up to 4,400W. It’s been designed with exclusive CBT tech and a honeycomb build for a smaller and lighter size, while the ChargeShield 2.0 tech provides 62 forms of protection while it is charging and its silent charging mode keeps the noise under 30dB for when you’re trying to relax or sleep.
There are four ways to recharge Jackery’s Explorer 2000 v2, with an 80% battery achieved via a wall outlet in around 66+ minutes – and it also boasts a supercharge feature for last-minute needs that will refill the entire battery in 102+ minutes. Your car’s auxiliary port is also an option taking about 24 hours, or you can invest in some of the solar panels to take advantage of its solar charging capabilities (discounted bundles available from Amazon)
Explorer 5000 Plus (5,040Wh) with two 500W panels and smart transfer switch: $4,999 (Reg. $5,999)
You’ll also find some select discounts by way of Jackery’s official Amazon storefront, with this flagship Explorer 3000 Pro solar generator bundle that comes with a transfer switch for your breakers down at its second-lowest price.
Second chance at $700 savings on Velotric’s Go 1 Utility e-bike with Apple Find My at $999 low
Velotric has ongoing New Year savings happening across its e-bike lineup, with the brand’s Go 1 Utility e-bike even seeing a drop to $999 shipped. More recently fetching $1,699 in full after falling from its original $1,799 MSRP earlier in 2024, this model has been regularly dropping to $1,299 during sales, with things only hitting $999 once last month for a three-day flash sale. It’s coming back again here with $700 struck from its going rate for a second chance at the lowest price we have tracked.
Velotric’s Go 1 e-bike is a model built for versatility, bringing far more to your table than a standard commuter, especially at its lowest price. The 692Wh battery delivers 55 miles of pedal-assisted support (five levels) on a single charge, with a throttle for pure electric action at the cost of higher mileage. The 500W hub motor (peaking at 900W) will have you moving at 20 MPH speeds, with its maximum 25 MPH speed unlockable through the companion app.
Speaking of the smart controls, one notable feature is the Apple Find My inclusion, providing you with some added peace of mind should it be misplaced or stolen. There’s also the hydraulic suspension (with lock-out), hydraulic disc brakes, puncture-resistant tires, a 7-speed Shimano derailleur, the integrated LED headlight, a rear rack with an integrated taillight that delivers brake lighting, and a 3.5-inch LCD display that sports a USB port to charge your devices on the go.
Save $1,050 on Anker’s SOLIX F3800 3,840Wh LiFePO4 power station at $2,449 (Today only)
By way of its Deals of the Day, Best Buy is offering the Anker SOLIX F3800 Portable Power Station for $2,449 shipped until midnight tonight (January 20). Today’s deal is benefitting from a 30% markdown off its $3,499 rate here (with a higher $3,999 rate direct from Anker). We’ve seen it go lower twice before with Cyber Monday seeing it $50 lower while an exclusive Black Friday deal at Wellbots saw it fall to the $2,099 low. You’ll be saving $1,050 today ($1,550 when considering its direct rate), giving you the means to power anything at the third-lowest price we have tracked. It’s even beating out Anker’s own site right now that has it discounted to $2,699.
Anker’s SOLIX F3800 power station boasts a larger (and expandable) capacity with far more versatility, coming in with a 3,840Wh LiFePO4 battery that can be bumped up to 26.9kWh with added expansion batteries (see the deal below). With a 6,000W power output that surges to 9,000W, its 15+ port options allow it to power virtually anything – with hook-ups for your RV and electric car too. It can even cover your home’s circuit breaker with either a Home Backup Kit for sectional support or the Home Power Panel for whole-home coverage on top of connection capabilities with your roof panels (check out direct Anker deals for those here).
For the rest of the day, Best Buy is also offering the expansion battery for the above power station at its second-lowest price of $1,799 shipped. By adding this add-on battery to your F3800 setup, you’ll gain an additional 3,840Wh worth of capacity – bumping things to 7,680Wh+ and allowing for longer periods of backup power, especially in emergencies.
Goal Zero’s portable fridge/freezer down at lowest price starting from $550 (Save $250+)
Goal Zero’s official Amazon storefront is offering its Alta 50 Portable Fridge/Freezer at $549.95 shipped, after clipping the on-page $250 off coupon. Coming down from its full $800 price, today’s deal is saving you a sizeable 31% off its going rate. You’ll save $250 here at the second-lowest price we have tracked, which comes in just six pennies higher than its all-time lowest rate, beating out plenty of same-sized competitors that tend to keep near $750 and up.
Goal Zero’s Alta 50 (and its larger Alta 80 counterpart) makes a great portable refrigeration/freezing option for job sites, camping trips, or even at-home use in garages, sheds, and more. Able to hold as low a temperature as -4 degrees, it switches between refrigeration or freezing capabilities with a 53L capacity that can hold up to 75 twelve-ounce cans at once. Keep in mind though, this model doesn’t have its own battery and needs either an outlet or one of the brand’s power stations to keep it running.
Right now, you might also want to consider the larger and more dual-purposed Alta 80 model which is down at $699.89 from its usual $1,000 rate. You won’t have to choose which function to go with here, as its larger 78L capacity is split between dual zones for simultaneous refrigeration and freezing. It holds an impressive 130 twelve-ounce cans, with runtimes of up to 12+ days depending on which of the brand’s power stations are running it.
Heybike Mars 2.0 Folding Fat-Tire e-bike with free gear: $999 (Reg. $1,499)
Best new Green Deals landing this week
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.
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The Tauranga, New Zealand-based electric motorcycle maker UBCO has entered receivership, marking dim prospects for the mobility company that had only recently announced a major partnership with Australia Post.
The receivership is being handled by professional services company Grant Thornton, who is reported to have announced the termination of all employee contracts and the suspension of future operations.
Unlike traditional bankruptcy, a receivership occurs when a third-party receiver is appointed to take control of a company’s assets and operations in an effort to recover debts. While bankruptcy often signals the end of a company’s independent operations, receivership may still leave room for recovery or a sale to a new owner.
UBCO is well known for its 2X2 all-wheel-drive electric motorbikes, which are popular among riders who cover both off-road terrain and on-road commuter style riding.
The company has expanded with several different models, but has remained focus on such dual-purpose motorbikes, especially for use in areas with varied terrain.
That was a key piece of the Australia Post deal, with the postal service down under recently receiving 175 new UBCO DUTY electric motorbikes for mail delivery, both in rural and urban areas. The rugged electric two-wheelers now in use by Australia Post were praised for excelling at traversing a variety of terrain, helping the postal service make deliveries in areas that traditional mail vans either can’t reach or are too large to make sense.
UBCO will reportedly still provide necessary parts through its parent company, with service of the vehicles already being handled by an outside company.