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Dallas
Tuesday, December 6, 2022
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Be ready to ‘pounce’ when the market is oversold

CNBC’s Jim Cramer on Friday warned investors not to let their guard down when it comes to their portfolios and be ready to take advantage of good deals.

“Ultimately, you’re just going to feel sorry if you don’t buy anything on the big sell-offs. When the market finally gets oversold enough, though, that’s when you need to pounce,” Cramer said.

Stocks gained on Friday but finished a volatile week lower, with losses spurred by hotter-than-expected economic data, the Federal Reserve’s 75 basis point rate hike and its hawkish rhetoric on inflation.

“We’re in a wildly emotional moment that has a lot to do with how individual companies are faring and a lot to do with what Wall Street expects of them. The bottom line? Until these expectations are wrenched lower, you shouldn’t feel safe in anything,” he said.

Cramer said that he’s watching for the consumer price index release next week, along with slated speeches from Cleveland Fed President Loretta Mester that could further shake the market.

He also previewed next week’s schedule of earnings. All earnings and revenue estimates are courtesy of FactSet.

Monday: BioNTech, Take-Two Interactive

BioNTech

  • Q3 2022 earnings release at 5 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $3.34
  • Projected revenue: $2.02 billion

Investors bullish on BioNTech should cross their fingers that the company reports that China ordered “over a billion” Covid-19 vaccines, he said.

Take-Two Interactive

  • Q2 2023 earnings at 4:05 p.m. ET; conference call at 4:30 p.m. ET
  • Projected EPS: $1.37
  • Projected revenue: $1.55 billion

Cramer said that it’s an injustice that the company is known as a pandemic play.

Tuesday: GlobalFoundries, Disney, AMC Entertainment

GlobalFoundries

  • Q3 2022 earnings release before the bell; conference call at 8:30 a.m. ET
  • Projected EPS: 62 cents
  • Projected revenue: $2.05 billion

He said he’s interested in knowing if the chip shortage will get better before the economy takes a turn for the worse.

Disney

  • Q4 2022 earnings release at 4:05 p.m. ET; conference call at 4:30 p.m. ET
  • Projected EPS: 55 cents
  • Projected revenue: $21.28 billion

The Charitable Trust is ready to buy more shares of Disney if it comes down enough, Cramer said.

AMC Entertainment

  • Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected loss: 22 cents per share
  • Projected revenue: $961 million

He said that while AMC could turn a profit in its latest quarter, he wouldn’t bet on it.

Wednesday: Wynn Resorts

  • Q3 2022 earnings release at 4 p.m. ET; conference call at 4:30 p.m. ET
  • Projected loss: $1.14 per share
  • Projected revenue: $871 million

Cramer said that his Charitable Trust is sticking with the stock.

Thursday: Compass, Matterport, Toast

Compass

  • Q3 2022 earnings release after the bell; conference call at 5 p.m. ET
  • Projected loss: 29 cents per share
  • Projected revenue: $1.45 billion

Matterport

  • Q3 2022 earnings release after the close; conference call at 4:30 p.m. ET
  • Projected loss: 13 cents per share
  • Projected revenue: $36 million

“The era of excess allowed everyone and anything to come public, so they did,” Cramer said of Compass and Matterport.

Toast

  • Q3 2022 earnings release at 4:05 p.m. ET; conference call at 5 p.m. ET
  • Projected loss: 8 cents per share
  • Projected revenue: $720 million

Toast has a good product, but a good product does not necessarily make for a good stock, Cramer said.

Disclaimer: Cramer’s Charitable Trust owns shares of Disney and Wynn Resorts.

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