Investing Club: What Cramer is watching Thursday — Looking for an entry point in this energy stock

Published Thu, Jan 20 20229:12 AM EST

What I am looking at, January 20, 2022: The 'N' in 'FANG' reports today... Netflix (NFLX) ... so does club name Union Pacific (UNP) before the bell... full analysis to come...and be sure to watch the Morning Meeting with Jeff Marks and I at 10:20 a.m. Huge downgrade of the semis by Piper Sandler...PC-related Advanced Micro Devices (AMD) and auto-related NXP Semiconductors (NXPI) both downgraded to hold this is a recognition that the good times are over for the autos, something I do not agree with as supply is still way too tight and demand very strong... these are NOT homes... I know not to fight a tightening cycle, but AMD is secular in nature—data center... Parade of downgrades and price target cuts... this time Microsoft (MSFT) … Citi lowers pt to $376 from $407... crucial the price target cut centers on a potential slowing in Azure... If that's the case then AMD downgrade as well as Nvidia (NVDA) pullback are justified... I think they have started to breakdown well before this so you are looking for an entry point not an exit... Citi bizarre price target cut for Boeing (BA) $240 to $238 and says all the good news about China, recertification is priced in... I believe that to say the re-opening and all orders ahead are in the stock seems fanciful... we own it for the trust... Devon (DVN) ... Citi raises pt to $57 from $39... I like this call as Devon has a monster dividend and $30 breakeven... we have been looking for an entry point and hoping for one IF oil would just drop for a couple of days...I know Rick Muncrief, the CEO, for a decade...He's a winner... Citi following Goldman Sachs (GS) down with a $480 to $455 pt cut based on expenses... But this is not JPMorgan as they have expense structure under control and oddly Citi believes the stock is posed for UPWARD revisions... it is only about $50 from book which is CASH... Bank of America downgrading the papers... International Paper (IP) ... which is right at this point in the cycle...they have historically gone down now... My Pop repped IP and this is when he would tell me the price lift cycle was over... Loop starts Affirm (AFRM) with a neutral... remember that not profitable companies that don't make anything go down here although this one has been clubbed well ahead of time... Barclays likes Kinder Morgan (KMI) $18 to $19—KMI has oil and pipes. I think this is a good call. The pipeline companies suddenly have scarcity value after tremendous overbuilding. Good yielding group for wealthy individuals... Tenet (THC) buy to strong buy at Ray Jay...typical call for this point in the cycle... I prefer UnitedHealth (UNH) ... KeyBanc downgrades Walmart (WMT) buy to hold on inflationary pressures ... we have been worried about this one and have already trimmed... KeyBanc likes Etsy (ETSY) and upgrades—secular trends.... $200 pt... again, Key really in on cycle calls... builders downgrade yesterday was quite powerful... Jefferies downgrades Ford (F) buy to hold, says too soon to re-rate legacy car makers ... victory lap kind of call... can it send it below twenties?.. club stock with parabolic move... Broadcom (AVGO) ... pt raised to $750 from $680 at Piper... we own this one and tempted to boot it into this gratuitous price target increase... Carvana (CVNA) ...buy to hold at KeyBanc...making cycle call against used cars, too Multiple price target boosts on Procter & Gamble (PG) because of elasticity... Truist, Dbank, RBC... Morgan Stanley analyst Huberty once again saying upside to Apple (AAPL) Dec EPS, but inline guide for March—priced in? Comprehensive JPMorgan note on semis... they like the cloud datacenters... accelerate in 2022 so they like AVGO, MRVL , NVDA (as well as MU ) –secular growth—look out on RF (QRVO, SWKS) KLAC and LRCX will be better. Burlington (BURL) ... Loop cutting numbers to below consensus... sees macro headwinds, missing brands... tough year for high multiple stocks... shortages in coats...sell rating Signet (SIG) — same store sales 22% for Q4... had been looking for 6% to 9%... star of the show?... CEO Gina Drosos is a superstar... $388m in Q4 operating income, thought to be $280m-$317m... (Jim Cramer's Charitable Trust is long UNP, AMD, MSFT, BA,WMT, F, AVGO, MRVL, AAPL, NVDA. See here for 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. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

A pump jack operates at a well site leased by Devon Energy Production Co. near Guthrie, Oklahoma.

Nick Oxford | Reuters

What I am looking at, January 20, 2022: