Mad Money w/ Jim Cramer 9/10/26

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1:23Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC. Member NYSE SIPC. My mission is simple. To make you money. I'm here to level the playing field for all investors. There's always a boom market somewhere. And I promise to help you find it. Mad Money starts now.

1:47Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. I'll do it, friends. I'm trying to make you some money. My job is not just to entertain you, but to educate you. So call me at 1-800-743-CNBC or tweet me at Jim Cramer. Many years ago, at a meeting in the training program at Goldman Sachs, we were being quizzed about our knowledge of the markets. The instructor, Dave, tough as nails, Dave, pointed at me and said, Jim, what's the principal determinant of the price of the stock of Delta Airlines? Right. Wheelhouse. Right in my wheelhouse. Like a big fat pitch. A curve that hangs. And I can visualize the ball rising to the upper deck as I talk.

2:30Dave, I told him, Delta, which traded at$34 with a PE of seven, is hostage to the price of oil and unhinged variable costs. And PRAZM, or passenger revenue per seat mile, as well as CASM, cost per available seat mile. With Delta, well, both are above industry standards, but it's low PE, so I can see it rising over time. I smiled the whole time, rattled off all that information. I mean, who knows more than me? Oozing with youthful self-confidence. No, Dave said. It's hostage to the long bond, the 30-year treasury. Now leave this room, go outside for the rest of the meeting, might help you learn something, including some humility.

3:13So beet red face, tail between my legs, I walked out of the meeting of 24 young people, my peers, and stood around waiting in the hall for his conclusion. I never forgot the seared embarrassment. I really hated Dave for a really long time. But I learned a valuable lesson. The long bond, the 30-year Treasury, is in charge of everything. So in a day where we had more downward pressure because of interest rates, especially the long bond, you saw the damage the bond market can do. With the Dow sinking 317 points, S &P losing 0.58 % and the Nasdaq falling 0.65%, Bill Longbott responding to higher oil prices, of course.

3:51Why was Dave so sure that the Longbott controlled delta share price and not the fundamentals of the actual business? Because that's how the stock market works. Look at what happened today. The Longbott went right through 5.3 percent, relentless run, unlike any I can remember, just tracking oil all the way up. The 30-year is inexorable, and it's taking things with it like a landslide. First and most obvious are mortgage rates. Today, they breached 7 percent. Oh, man, the existing home sales were awful. Rates were kept so long in this country that, frankly, you're almost going to have to double your mortgage rate if you buy a new place.

4:23So why ever sell your old place? That's putting a lot of houses out of reach. New home buyers might not be able to afford that 7 % rate. It defeats the American dream. Housing is 10 % of the economy, but it punches well above its weight. Think about how many things go into a house. Think about the materials, the wages, the brokers, the lawyers, the plumbers, the electricians, the landscaping. Just the shooting works. And the retailers from RH to Best Buy to Home Depot and Lowe's. Stanley. Stanley Buck and Duck. Then there's the investor. Stocks are terrific. They can make you fortunate, especially younger people who can afford to take chances.

4:58But you know what beats stocks for anyone who's 50 or older? The 30-year treasury. The king, that's what. Sure, inflation could go higher and you might get squeezed, but historically it's not so bad to get a 5.3 % risk-free return. Believe me, when you get older, you can still own some Nvidia and some Apple. You might like a little Chevron or a Procter, too. But that 30-year is the ultimate sleep-at-night piece of paper. Not that I know from personal experience, but lots of people tell me it's good to sleep at night. The yield on a 30-year can destroy housing, but it's an even more powerful competitor when it comes to stocks, lower-yielding stocks in a sloppy environment like this one.

5:31Then there's the problem with too much supply. The government needs to pay for all this debt. We're lucky Uncle Sam can issue bonds to pay for it, and people still buy them because they're backed by the full faith and credit of the U.S. government. But the level of issuance is insane. You know, they're currently about$4.5 trillion in long bonds. Right now, our Treasury Secretary wants to try to keep that interest rate down to reverse all the fallout. He says he's got the inside scoop or something. He's buying them in order to push the price up and the yield down. The problem is Treasury's doing a$6 billion buyback when there are roughly$4.5 trillion, B versus T, worth of long bonds out there.

6:07Now, that's too much, and he has too little firepower. Whole thing's a little silly, isn't it? Although less silly than giving every adult$5 ,000 that Republicans can keep control of Congress after the midterms. That would be another trillion dollars. Mr. Treasury Secretary, save the powder. So knowing all of this, let's go back to Goldman and Dave from Delta. First, we know that stocks are assets like bonds. You know that a risk-free bond has a huge yield and people are more likely to choose to buy that bond over a piece of an airline company in common stock, especially when airlines are notorious for being unsafe investments, or at least fickle, you price that stock off the 30-year Treasury, and right now the Treasury wins.

6:45If rates on that loan bond are high, that's going to slow down the economy. It isn't enough that oil is so high, something the president is very worried about, or he wouldn't be offering five grand for people to party with, whatever. If the economy slows down, then people will be laid off and plans to expand will be scrapped. Right now, the thing that makes the economy hum and keeps stocks relatively in the air, despite higher oil prices, is employment, which remains pretty strong. If that were to change, then you know people won't travel as much. The airlines will cut estimates. The stocks will get hammered.

7:14That's what these stocks are anticipating beyond the incredibly high price of oil that cuts steeply into the bottom line. Airlines have to constantly borrow money to buy planes, which is a huge expense for them. We see treasuries trading at 5.3%. We must always remember that very few companies have a credit rating high enough to borrow near the same rate as the federal government. Airlines are stronger than they used to be, but they're notoriously inconsistent. and they have to pay well above that 5.3 % to borrow the money they need to buy planes. That means they can't expand for 30 years and behaving.

7:41They can't grow. And people don't like no-growth stocks, hence the seven multiple of Delta back then. Now, we know there are a lot of other factors that go into running an airline. We know some airlines are better than others. Delta's always been one of the best. But the bottom line, that's not the most important thing, according to Disco Dave, as I called him, because I once saw him buying a boombox at 47th Street Photo. I know this because I was buying a boombox, too. It was a year after my Delta fiasco, too close to the scolding. I bumped into Dave about a decade later, though, and by that point, I know what I would have done if someone had given me all the confidence, all-knowing answer about the prasm and the chasm.

8:16I would have kicked him the heck out of the meeting and told him he had to wait in the hall. So I thanked him, told him so, and I added that I would have put up a giant whiteboard in the hall and make that kid write the long bod over and over and over again until the meeting drew to its conclusion. Let's go to Elizabeth in Florida. Elizabeth. hey jim i hope you're doing well oh it was super how about you great not too bad i've got this really quick question for you sure um i saw where you liked helmet on september 2nd and with the recent sell-off on the news of companies vertically integrating turbine component casting in-house do you see future revenue displacement that justifies the repricing of helmet's moat or is the market overreacting because demand remains supply constrained?

9:05Look, I'll tell you here's the problem. And we call Hal Met how I met my mother. We joke about it, but it's a fashion company. And it frankly is, at most times, a very commodity-oriented business. And it happens to sell at 44 times earnings. And we don't want to pay that for commodities. Even though the business is strong, I think people are saying, wait a second, that's too much to pay, and I'm going to wait until it goes lower. And if you look at the chart, it does seem like it is going lower. Let's go to Mike, Mike, back in Colorado. Mike. Dr. Kramer. Giant size boo-yah from Colorado. Long-time listener.

9:38First-time caller. Love what you do. Love the way you teach us about the inner workings of the market. That's it. It's not easy. I mean, I got to make the classroom come alive every night. You know what I mean? But thank you for calling in. My wife says I need professional help, so I called you. I'm also buying the book right after this call. Let's go to work. I am a micron millionaire. I took$1.6 million at the beginning of the year in my 401k and turned it into$7.4 million, mostly from micron stock. I attribute my success to your teachings, especially buy and homework. I wrote a four-page thesis on the stock showing forward PE, forward PEG, forward PEG Y to include yield, which considers a possible dividend increase and percentage of possible$30 billion in buyback after the CHIP Act expiration December 9th.

10:30My thesis says the share price can be$1 ,400 plus or minus$150 for uncertainty. My question, Professor Kramer, in the words of my cousin Vinny, does my thesis hold water? I want to thank you for everything you do. Take it away, Dr. Kramer. Call me professor? I just heard from the dean. I mean, that's a remarkable analysis. It's spot on in every single number. Every single thing you said is true, which is why my travel trust owns it and why we are buying it aggressively. And by the way, can I just say, if you listen to what Mike said, he put some money away. He was fortunate enough to have money, which I know not a breaking habit.

11:06He has money. He put it in individual stock. Now, if you put it in an index fund, he would make some money. But he got really rich. And part of my job is not just to get you rich, but hopefully get you really rich. It's not a sin. It's not a sin. I was dirt poor. Let me tell you, it's better to be rich. What can I say? It's true. Let's go to Phil in North Carolina. Phil. Jim, how are you doing today, sir? This is a good day, Phil. Yesterday was a little hard, frankly, but we won't go into it. But today's a little better. What's going on? That's good. I'm fair to middle in today myself, Jim. But anyway, I just want to start off by telling you how much I appreciate you.

11:44And you remind me so much of Peter Lynch that I just you are this generation's Peter Lynch. That's well, I patterned his two books. I went to write to his editor for my first book because I knew how great he was, how great he is. Magellan Fund made me and my father, who we became. he's a remarkable man and I greatly appreciate the analog, it means a lot to me Yeah, that was one of the first funds that I knew of that closed Absolutely, me too He was getting so much activity in there Is that right? Yeah, you got it He gave a lot to BC He's just a great man He's made a lot of people really wealthy So how can I help you?

12:28He did, and like I said you are this generation You're very calm Anyway, so I just want to let you know, okay? My granddaughter and I, her name is Antonia. We were watching your interview a while ago with the CEO of Arison Networks. Okay? Jane Sheree. She's the best. She's the best. Yes. Antonia is a young kid who just graduated college and works in Manhattan and fell in love with her portfolio. She, on account of this interview that we heard, we both bought a lot of shares of in blocks of Ariston Network. And Tony, you want to know how confident are you that Ariston Network will not follow the same path as Sienna Corporation?

13:23OK, so let let me just tell you, Arista's up a lot this year. My confidence is with Jay Shree Yolal. I think she's amazing. And I think every time the stock is dipped, if you've noticed it, since her tenure began, you have to buy it. And I'm not backing away from that. I feel the same way I do now, the way I did, oh, man, how many years ago when we first met her. She is money, and the company's fantastic. And thank you for the kind words. All right, the long bond rules everything. Remember this, you'll never be embarrassed like I was. I mean, I mean, tonight, Lululemon just reported another dismal quarter.

13:54Talk about embarrassing. So is there any hope left for this retailer? I'm going to take a closer look. And you called in and you stumped me with Seneca Foods. Now I'm back to give you my take when the stock's been powering higher. And how is sterling infrastructure holding up as the data center thesis waivers? I'm going to check them with the CEOs. So stay with Kramer. Don't miss a second of Mad Money. Follow at Jim Kramer on X. Have a question? Tweet Kramer. Hashtag Mad Mentions. Send Jim an email to madmoneyatcnbc.com. Or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.

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15:10It's as simple as picking your stocks and ETFs, sort of like your meats and other topics, and managing it as one big juicy investment. Now that's pretty good. Learn more at fidelity.com slash baskets. Investing involves risk, including risk of loss. Fidelity Brokers Services, LLC. Member NYSC SIPC. From the producers of The Traders, the circle returns with bigger twists and higher stakes. Contestants compete for popularity without ever meeting. Some are celebrities, some are regular people, and some are catfishing the competition. And now audience voting will influence the game. You decide who has what it takes to win in The Circle.

15:55Watch the Hulu original series The Circle on November 17th, streaming on Hulu and on Hulu on Disney Plus for bundle subscribers. Terms apply.

16:09Last week, we went to shed another shockingly bad quarter from Lululemon Athletica. In less than three years, Lulu's gone from one of the greatest growth stories ever told to a thoroughly broken stock. And maybe, maybe, just maybe, a broken company. It's now down over 53 % year-to-date and now more than 80 % from its peak in late 2023. Some of this compression is because of the whole athleisure category. It seems to have gone out of style in the post-pandemic world. Millennials used to love this stuff. But their Gen Z successors, they like their clothes bagging. Like that barrel pants thing that my wife keeps telling me about.

16:52It's not just demand. The athleisure category has become viciously competitive. Ten years ago, there was Lululemon and not much else. Now, I think they're up against Aloe, Yoga, and Viore, and High End, Athleta, and many other brands like Fabletics coming from them and from the low end. It's very hard to sell apparel. Don't forget Costco, by the way. Very hard to sell apparel at a premium price when demand is waning and your competitors are out for blood and there's excess inventory flying all over the place. But this is a when it rains in poor situation. Three months ago, Lululemon reported it's simply an awful quarter.

17:27Stock got crushed. I told you to stay the heck away because when apparel stocks go out of style, the losses can be endless. And this one's really falling apart. At the end of last year, Lululemon announced that its CEO would be stepping down on January 31st. Keep that date in mind, January 31st. They named two interim co-CEOs to replace him. Then in April, we learned that they were bringing in a longtime Nike executive, Heidi O 'Neill, to run the company. But O 'Neill only started to work two days ago. That's right, two days ago. I mean, what the heck is that about? Basically, for the last eight months, Lulu's had no permanent leadership.

18:04And that's caused them to make a series of unforced urges. In April, for instance, the state of Texas announced an investigation into the company for using forever chemicals. Remember those? I mean, Lulu denies it, but they haven't handled the story all that well. There was also an ugly proxy fight from founder Chip Wilson, who remains the largest shareholder. He went to war with the company very publicly and managed to snag two board seats, causing a huge mess in doing so. Really, though, this team is dropping the ball left and right. Earlier this summer, Lulu organized a yoga festival on the Great Wall of China.

18:32But it turned into a just ridiculous fiasco because they held a performance that used a Japanese drum instead of a Chinese drum. Now, it may not sound like a big deal to you, but see, the Chinese still hold a pretty big grudge over Japan's occupation during World War II. This little yoga festival set off a firestorm on social media, which was real unfortunate because China had been one of the few bright spots for Lulu. The Chinese business put up 20 percent same-sure sales growth for the three months ending in April. But put it all together, and it was no surprise that Lulu disappointed again when it reported last week.

19:05Let's start with the results, which were technically mixed, but actually quite disappointing. First, the revenue growth has totally disappeared. Lululemon's same-store sales were down 9%, which is nearly twice as bad as the expected 4.55 % decline. America's comps down 12%, basically in line with expectations. But the real surprise came from their international business, down 3 % year-over-year. Because China, China mainlanded same-store sales declined 2 % when the analysts had actually been looking for a 14.5 % increase. That's the price of using a Japanese drum at a yoga festival on the Great Wall of China.

19:41In terms of net revenues, Lulu's total company sales declined 4 % or 5 % in constant currency. The Americas region actually surprised the upside, even as net revenues declined 8%. But China mainland sales missed expectations badly. And the rest of the world region missed, too. On the profit lines, Lulu did much better than expected, including a monster$1.12 earnings beat off the$1.79 basis. However, the company didn't get much credit for it because 86 cents of that came from the tariff refunds. It's not phony, but it is funny income. Worse, Lululemon offered putrid guidance for the current quarter.

20:15Their sales outlook complies a double-digit decline year-over-year, and they're talking about 93 to 98 cents of earnings per share. Analysts were looking for$2.40. On top of that, Lulu slashed its four-year forecast across the board, taking their sales and earnings guidance down to levels well below the street's expectations. Let's call it distinctly suboptimal guidance. That's the main reason Lululemon's stock plunged more than 17 % on Friday. This day had been hanging in there pretty nicely after its post-quarter sell-off in June, but then it got obliterated again, just obliteration after obliteration.

20:45Now, like I said before, this was Lululemon's last quarter before the new CEO started this Tuesday. Given that setup, maybe you have to consider the idea that what we saw was a so-called kitchen sink quarter, as in throw everything but the kitchen sink at investors, get all the bad news out of the way, so that the new leadership team led by Heidi O 'Neill can start to build back with the benefit of expectations that are low enough to beat? Look, I think that's a real possibility. And it doesn't hurt that Lou is now selling for just over 10 times the midpoint of this year's earnings forecast. I'm laughing because it used to be 30-40.

21:15But buying a Lululemon because it's cheap has been a sucker's game all the way down because they keep cutting numbers. Still, if these guys can put up any kind of positive surprise, the stock would be able to rally aggressively. In other words, I think it's too risky to short this one, But I still can't be a buyer either. I haven't been able to. I haven't seen anything to make me want to feel better about the company's competitive environment in any of the markets, including U.S. The athleisure category remains in the doghouse and the competition is as crowded as ever, slashing price, cutting margins.

21:48Now we have reputational issues from forever chemicals, accusations and no momentum at all overseas with no real clarity as to what could get the brand back on track internationally and mainly in China or anywhere else. Listen, I have no ill will towards Lululemon, which I still remember is one of the great growth stocks of the previous year. I hope that new CEO Heidi O 'Neill can turn things around. And if she'd like, she's welcome on Mad Money anytime to explain her strategy to get this once loved brand, including from the show, back on track. But it's my job to look out for you, the viewers.

22:20And the bottom line, for the time being, I can't give you a good reason to buy Lululemon, even after these stunning declines. other than the kitchen thing's thesis. And the fact that the stock now appears to have a low price journey is multiple. See, that's not good enough, though. So for now, let's just say this stock is bleeding out in no man's land. Don't try to be a hero and buy it. Just try to rubberneck and then move on. Bad Money is back after the break. Coming up, Kramer's dug into the stock of Seneca Foods. Now he's ready to deliver his review. Next.

22:55We're an agent supposed to take things off your plate. Building another to handle the others is a bit much. Don't make more work out of work. Gemini is the one agent that knows all parts of your business and actually gets stuff done. You give it a project, close your laptop, and when you come back, the job's finished. No matter your industry or role, your agent has the skills to help every team stay in their flow. Seriously, make work less work with Gemini on Google Cloud. Check response, subscription required.

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24:50letter ticker S-E-N-E-A. This is one of North America's largest processors of packaged fruits and vegetables. I told him flat out I don't know Seneca Foods, but I really should follow more food companies as they are accessible to people, so I promised to do the homework, and here we are. Look at the chart you'd think this was an AI data center company. The stock's up 256 % over the past three years and nearly 70 % year to date. But Seneca Foods doesn't deal in semiconductors. They deal in canned corn, green beans and fresh and frozen vegetables, not fresh, frozen. Now, the stocks pulled back about 11 percent from its highs last week.

25:25So I want to figure out if it's maybe worth buying the pullback. Well, a lot of stocks are pulling back, right? It's a very simple company. They buy vegetables and some fruit in the United States, turn them into canned or packaged goods, then sell them to customers in the United States. I mean, this is not Nvidia. This is San Diego. Now, you may not recognize the corporate theme, but I bet you recognize some of these age old brands. Green Giant, Libby's, Aunt Nelly's. However, about half of Seneca's customer mixes private label, meaning it makes products that retailers sell under their house brand names.

25:54It's really good business. They don't care whether you're buying the premiums, nationally branded stuff, or the cheap private label knockoffs because they package everything. Now, back on March 2nd, Seneca bought Green Giant's U.S. Frozen business from B &G Foods for$61.5 million. That comes not long after they bought Green Giant's American canned foods business in 2023. B &G has not been a well-run company, to say the least. It's been a real donor here for Seneca. And these guys clearly know what they're doing because the first full quarter since that acquisition showed the impact. A little over a month ago, Seneca reported a terrific set of numbers.

26:3036 % revenue growth and earnings coming in at$2.85 per share. That's up from$2.14 the year before. Management attributed the sales growth to that frozen acquisition. Steady private label growth, too. and the timing of contract packaging sales. Seneca also said the expensive inventory left over from the poor 2024 harvest was finally behind them, helping the existing operations become more profitable. Food may sound dependable, but this is actually a business that comes with some real risk. Seneca processes much of its crop during a concentrated harvest season and sells the inventory over time. A poor harvest leaves fewer cases to absorb factory costs, which can hurt profit really well beyond the growing season.

27:11In the 2026 fiscal year, Seneca's 10 largest customers represented 56 percent of annual sales, up from 53 percent in 2025. That concentration does give the customer a lot of bargaining power. At the same time, you've got to worry about the cost of the cans, including tariffs. Management warned that higher tin plate steel costs are pressuring the business and making imported can products more competitive. A lot of that comes down to President Trump's steel tariffs, which have been great for the steel makers, not so great for their customers. Seneca works on efficiency and says its reduced steel use in certain cans can ends by 10 percent.

27:47A lighter can may not excite Wall Street, but those savings do add up. Put it all together, though. The quarter was very good and sent the stock soaring. Now, after this enormous move, what are we paying for Seneca Foods? Well, let's see. $186. Seneca trades at just over 13 times this year's expected earnings and less than 13 times next year's numbers. I explain all that in this. If you don't understand the price earnings multiple, you have to get this book, OK, which you can get if you join a club. How does that compare with other companies in the industry? John B. Sanfilippo and Sons, the Nut and Snacks processor trading under JBSS, useful compare, trades at 12 times this year's earnings estimates, 13 times next year's numbers.

28:26Pretty much in line with Seneca, except JBSS has much slower growth. Dole's another peer, but it's global fresh produce business has different economics. Fresh fruit and vegetables aren't quite the same as preserved food, but still it trades in the same ballpark selling for 10 times this year's earnings estimates. So where do I come down on Seneca Foods? What I like about this business is that they don't need the consumer to feel wealthy in order to thrive. Families may postpone a big purchase or cut back on restaurant meals, but they still need to eat. Seneca's mix of branded products and private label gives it more than one way to serve the demand.

29:00I'm sorry. Hey, it happens. You've probably never seen it happen to anybody else on TV, but it happens to me. Anyway, I'm going to sneeze, too. A shopper switching labels does not necessarily mean Seneca loses the sale, but they're often doing the canning for both. There's also a practical route to better earnings here without spectacular sales growth. Seneca can process its crops more efficiently, earn better returns from the frozen business, and keep reducing its debt. Told you. Small improvements matter when they're applied across a large production base. I'd rather see management make these improvements than buying something unrelated to keep up growth.

29:39For me, Seneca is an established operator getting more out of assets and customer relations than it already stands. Paying down debt also reduces interest costs and leaves more flexibility for the next crop cycle or a sensible acquisition down the road. The loan multiple gives that argument some weight. Sure, Seneca has had a huge run, but it's still pretty darn cheap because the earnings have been growing, too. That said, I wouldn't assume Seneca deserves a dramatically higher multiple just because the last few quarters have been strong. You don't buy a canned vegetable company for blowout numbers.

30:10You buy it for steady earnings growth. At the same time, this remains a business tied to farming. Better execution can improve results, but it can't guarantee good harvest, can it? Part of Seneca's recent improvement is the recovery from bad harvest. And eventually the comparisons become tougher again. After such a substantial rally, I want to leave room for an ordinary quarter or a difficult growing season. A low multiple won't be much comfort if the earnings take a hit. In the end, you know what? This is a compelling business where the stock has had a huge run. The valuation is reasonable enough that I'd be comfortable putting on a small position in Seneca Foods.

30:45Then you wait for an additional pullback. Look, we have a lousy market. You could get that, right? And then buy more on weakness. Bottom line, Jeff found an interesting way to diversify away from the data center. I like the Seneca Foods. It's pretty important to our attention, but I may be like it a little bit lower for that reason. Not because I'm betting against Jeff. I'm just hoping its recent pullback continues. Let's take some calls. I promise not to sneeze or cough or hack away. Well, I'll break that promise in a nanosecond. John, Illinois, John. Hey, Jim, I'd like to know your opinion on Walmart.

31:18You think I should keep it? John, I got to tell you, this one is a short and long term. OK, short term, I think I know what Walmart's doing. I think that they're letting their customers have a big break. They're not passing along all these costs. That is going to earn them tremendous love when things get better. So my situation is to say this. Walmart trades at 36 times earnings. It deserves to trade lower just because of what's happening to the company now and higher what's happening to the company when this inflation bout ends. So you buy some at 106, 105, and then buy some at 95. And yes, it could trade to 95.

31:58It does not have yield support. This is not like Target, which had that yield support. Target's doing better than Walmart right now. It is. OK. Let's go to Elizabeth in California. Elizabeth. Hi, Jim. Elizabeth, how are you? I'm very well. Thank you. I have a question about SoFi. I've had this talk for almost one year now. and it hasn't changed much. What is your advice on this stock? Well, you know, it's a financial attack. It's a bank. But let's put it this way. It's doing as well as it can, but it has a very high price to earnings multiple versus the others in its cohort. So it's going to mark time until the earnings continue to go up.

32:45I do like the company. I like the management. I wouldn't mind you owning it for the long term. and thank you for your call. I like Seneca Foods, even more so right now since it's not a data center story at all. I just think maybe you can get a pullback here because it is canned foods investment. Now, much more mad money, including, oh my, exclusive, a sterling infrastructure. Then I got a bit heated about one particular stock in today's investing club. I kind of feel bad about it. I'm still a little steamed. I think my frustration is justified. I'll explain. And then all your calls, of course, rapid fire in tonight's edition of The Lightning Round.

33:18So stay with Kramer.

33:27It is time! It's time for the Lightroom, clear to that. We're going to start with Kathy in California. Kathy! Hi, Jim. This is Kathy from California. How are you? I am good, Kathy. How are you doing? Fine. I'm a club member, fifth-time caller. We own a large position in Procter & Gamble for many years. Okay, so it's a tough one. I'm sorry, I didn't mean to talk about it, but it's a tough stock. It's a tough stock because they don't have the growth that I want. They do have the 3 % yield, but that's not enough. So I'm going to say, you know, we sold it for the club. Don't look back. Let's go to JJ in New York.

34:12JJ. Professor Kramer, booyah. Booyah. Thank you for all that you do. Thank you, buddy. Thank you. That's nice. Thank you. I have a question on Kyler Pharmaceuticals, symbol K-L-R-A. Your thoughts? Buy, sell, own. Okay, actually, you know this, but here's the problem. Let's say I say buy it. It's just the most speculative stock on earth. Let's say I don't say buy it, and they do have finally a hit. I have seen, I'm not going to mention an individual stock. I have seen one-hit wonders that will take a stock up quadruple. So I'm going to tell you, it's your spec. Don't pick another spec, but it's your spec.

34:49And I'm going to bless that. Let's go to Tristan. Oh, where's he sold? Tristan in New Brasca. Tristan. Hey, Jim. How are you doing? I'm doing well. How about you? Good. I wanted to ask about the stock Tractor Supply. I noticed it's running around its 52-week level and was curious if he thought it was a buy or an avoid. Thanks. You know, I feel awful about saying this, but Tractor Supply has no mojo. And it's not a technical term. I'm just saying that the stock just can't seem to lift. It's a good company, but in an industry where you've got to have something right now, more than just a good company, and it doesn't have that right now.

35:25It just doesn't. Let's go to Nick in Connecticut. Nick. Jim, how are you? I'm good, Nick. How about you? Good, thank you. Under the heading of we don't care where a stock has been, but where it's going in the future, I'd like to get your thoughts about TPL, Texas Pacific land. Going higher. It's in the right industry, and it's a very inexpensive stock. We profiled it. Ben Stotto introduced it to me. It's a fantastic stock. Let's go to JP in Florida, please. JP. Hi. Booyah, Jim. This is JP from Florida. I love listening to you and David in the morning. Oh, thank you. I have a wonderful, mad morning show watching with my daughter for years.

36:07Aw, thank you, man. And don't look for Ondas Holding, O-N-D-S. This is a meme stock. You'll see a trade underneath all morning, Ondas, Ondas, because it's got, it's like wireless and autonomous. It's got all that stuff. And I'll tell you what I think of it. It's okay. It's a meme stock. I mean, it's okay. It's not great, not bad. I wish I could be more, less wishy-washy, but that's all it really is. And that, ladies and gentlemen, is the conclusion of the Lightning Round. The Lightning Round is sponsored by Charles Schwab. Coming up, worried about where the market's headed? Fear not. Kramer's coming back with more guidance next.

37:01We had our CMBC Investing Club meeting today. You can join and listen to the one-hour program. I bet you'll love it. Anyone who's ever bought a stock should watch. You'll learn plenty. Hey, I'll throw in the book. Anyway, I spend a lot of my time talking about my mistakes on these calls. You don't learn all that much from your wins, do you? And maybe the market had a huge boobah carrying along your stock. Maybe you got lucky. Can't game that. Learning to control mistakes, though, is the key to successful investing, which brings me back to that meeting. I tend to be pretty volatile at the meetings, maybe a little more visceral than anyone expects.

37:30Hey, I'm an acquired taste. I review each of the charitable trust positions on the call. This time it was pretty clinical. Until I got to TJX, the off-price retailer. Canterly, I lost it on TJX. I've owned the stock for the trust for as long as I can remember, and I've never felt so worried about this franchise. They have a bunch of divisions, but the biggest one, MarMax, consisting of TJ Maxx and Marshalls, really blew it. Management told us that they'd figure out what had gone wrong, and they've already fixed it. But because of competitive reasons or whatever, they wouldn't tell us what went wrong, and they wouldn't tell us how they fixed it.

38:01I found that infuriating. Now, during the meeting, my mind is going like 180 miles an hour, and it's just rolling and drumming and drumming. All I could think about, though, and almost burn it out, was that last scene in the movie Chinatown when private investigator Jake Dittis, played by Jack Nicholson, gets told, forget it, Jake, it's Chinatown. I came close to saying, forget it, Jim, it's retail. Sometimes retail is seductive. I love my local TJ Maxx, and I think that HomeGoods is a fun place to shop. The company's almost always about the best in the industry, crushing Burlington and Ross stores.

38:29But this time, shockingly, Ross Stores' upside surprise, it crushed TJX much better than expected. Sometimes it seems so easy, like when you go to Costco and you see those lines and you take it in the treasure hunt. Then you realize that the stock trades are much too high priced to reach multiple versus, I don't know, lately it's just good, not fabulous, same-store sales. That's how I feel. And sometimes it's just impossible, like Lululemon, which we talked about. Or like Dick's Sporting Goods, which swallowed the whale with that was Foot Locker. Or like Walmart, which seems to have eaten a lot of that gross margin that would have normally gone to the shareholder because it senses that this is the right time to take market share.

39:02I agree with that. So why bother sticking your neck out for something in this group? Simple. Because some of the greatest stories of all time have come from retail. Costco's been an incredible long-term performer. Walmart's been terrific. And TGX, it's been a wonder. One of the best stocks ever. Could they really suddenly have lost it? Did they go all Lulu? I don't think so. What happens, though, is you have to be conscious that TJX is right now being buffeted by its group, which is trading down because of the decline in discretionary income from the tax that is higher gasoline. We can't tell how much of its underperformance comes from that alone, or maybe the mistakes that management made and says they've corrected.

39:36In other words, these retail stocks are very hard to own, even as they seem so easy to grasp. I didn't get mad about any industrials today. I didn't lose it on the data centers. It was just TJX, which has a terrific store one block north of me, and it seems like it's as crowded as ever. Just one giant cash machine. How do you screw that up? But then again, it's retail. Too compelling to forget, yet capable of creating a level of pain that's not easily forgotten. I like to say there's always a bull market somewhere. I promise you I'll find it just for you right here on Made Money. I'm Jim Cramer.

40:04I'll see you tomorrow. All opinions expressed by Jim Cramer on this podcast are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer 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 or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such.

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