Mad Money 08/31/26 | Audio Only

My mission is simple, to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to Mad Money. Welcome to Craig, friends. I'm just trying to make you a little extra money here. My job is to just entertain, but I'm going to do some teaching. So, call me 1800743 CBC. Tweet me at Jim Kramer. As August comes to a grinding end, it's hard to believe that the reverberations of a hedge fund implosion could color so much of the month's action. We haven't seen something like this since the downfall of long-term capital in 1998 took the market apart. Thank heavens this one situational awareness that was the name of the fund which at one time controlled $45 billion thanks to liberal use of borrow money was contained to tech. If it had been bigger the whole market might have been wrecked instead we got basically as solid where the Dow finished slightly higher despite today where the Dow dipped 347 points SP lost.33% NASDAQ declined.12%. It's kind of a nothing day and frankly what I'm willing to call nothing month. Now I don't want to say that situational awareness again that's the hedge fund has disappeared. The fund still has some assets. Still the fallout from its collapse does finally seem to be unwinding. Still when you look at the 10 best and worst performers for the month they're stark in their themes that include the unwind of the situational positions. Let's go over the winners first. First, let's start with a heavily shorted stock known as Mona. Yes, there was a huge bet being made against these guys. Skeptics believed that its technology would never produce the breakthroughs that the bulls expected and were initially promised when the company came public. But this month, that's exactly what we got. See, working with Merc, Mona's developed a vaccine for those who beaten melanoma once. Now, this this, my friends, is miraculous. So, it got a miraculous welcome. Do you know what? I think this could still have a huge potential to go higher. Second is Palanteer which rallied 51%. My take is that Palanteer should have ever been down to begin with based on the rule of 40 that we typically use to judge this kind of business. When you add up the revenue growth plus their profit margin, the sum comes to 155. I don't know how you sell something with that kind of profitable growth. situational awareness just despise enterprise software and viva systems number three up 40% is enterprise software writ large for the healthcare industry I think it's bounced back in conjunction with all the other enterprise software companies that situational awareness believed would be destroyed by AI that haven't been once that hedge fund blew up the whole group came roaring back as situation was no longer there to put pressure on them hey Salesforce had a similar rally up nearly 40% now here's one that openly took on the short sellers first with rhetoric and then with numbers which have not been hurt at all by what CEO Mark Beni off spoofed as the SAS apocalypse. His blowout quarter obliterated the shorts. I don't think they still know what hit him. Sometimes stocks go so low that even a little win can produce a percentage gain. And that's what happened with Paramount Sky Dance which is trying to buy Warner Brothers Discovery. Deal's been held up by state attorney general which uh somehow produced a nice bump for this one. I don't know maybe Wall Street thinks they're paying too much. Gold has been strong all year, which is why Numine, number six, rallied almost 35%. Now, I prefer America Eagle. I just think it's got better land, but Num's a classic gold stock, and it's viewed as a proxy for the precious metal. That's what people want. Next, oh boy, here we go. Service Now, another classic enterprise software stock that was supposed TO BE CRUSHED by AI. At least that was a situational awareness idea, but it's done more than most to integrate AI into its everyday business. And it's done successfully, which is why the stock's up 33% in August. It's another coiled spring courtesy of situational awareness. See, the stock got pushed down two quarters ago. Even as it was pretty good. The last quarter was even better. And with situational gone, the stock could roar with impunity. No one knocking it down, making it look bad when it wasn't. Now, I don't know how this super micro keeps coming back, but no matter how much heat it takes for some of its employees, helping the Chinese to get Nvidia hardware, it's still up 31% for the month of August. The market is no memory. The authorities perhaps have no teeth. We have been told endlessly that no one could benchmark anything anymore, including T tech except for anthropic and it's clawed. Now, that supposedly made a research and advisory company like Gartner obsolete. Well, the stock was right in the crosshairs of the AI displacement thesis, but apparently their business is not in the crosshairs, which is why the stock bounced 31% to finish ninth. Finally, cryptos had a big comeback this month. Of course, crypto isn't in the SP500, but Coinbase is. Coinbase was up 28%. As the bell told though, Sanders topped the stock, a memory device play with a 28.9% gain. I'm including both of them because I like the context. The losers, well, Dvita is the worst. Now this kidney dialysis company was crushed by a bad forecast. Revenue per treatment for those who need dialysis fell. Commercial mix deteriorated. Patient care costs were high. It was a parade of disappointments. So it lost 27% and had the most negative month of all S&P 500 stocks. Sometimes you see the worst action in the final days of the month like when Edison International stock collapse in the face of an intrinsic California legislature that's going to step it's going to try to step up protecting the utilities I protecting the state from wildfire liabilities by putting them on the utilities. Well, that's made the stock uninvestable. Hence why it dropped 23% today. It's down 26% for the month. 23% today is pretty bad. It's a rival to Devita in the lame category. Now, Amazon slowed down a company called the Trade Desk, which had been such a huge digital advertising winner over the years. Fast grower, not anymore. I don't know if it can come back. I do know that it seems like the selling seems a tad overdone with the stock down almost 24%. But I can see no catalyst to return to favor. I don't see Amazon letting up on the gas pedal. In fourth place, well, here we go. PG&E, another California utility that worked so hard to get its stock up while raising money for the wildfire fund. It meant nothing, at least to the legislature. PG&E might owe even more money thanks to the new uh legislation. Honestly, I am surprised it was only down 24% this month, but this company definitely deserves better. And somehow I don't think it's done done fighting for shareholders. Honeywell Aerospace deserves to be the worst stock of the quarter. It's a brand new alpha where the CEO assured many of us that things were going well. He even told CNBC's own Phil three separate times that things were good. They were actually terrible, horrible, crushed us. And there, I'm including my travel trust. I do not recommend this company down 24% for the month. It should have been down. There is no credibility here whatsoever. Appleven is a company that develops technology to place ads. The short sellers believe that it will ultimately be replaced by AI. I don't think so. But the thesis is all that matters, which is why it dropped 21%. Six performing the S&P. Sometimes it's the outlook, stupid. That's what happened with Aptive, which fell 16% in one day after it cut guidance. This company is all things cars, technology for cars, advanced safety features, cars that are electric, and it just plain missed. That's why the stock dropped 17% in one day, down 29% for the month. Sellers saw plenty they didn't like about Tapestry. Now, I think this decline was a pure overreaction. Overreactions are common in retail, particularly last month. I think it's buy now. It's down 19% for the month of August. I well-run shop. Oh, here we go. Energy is utility, but it's not in California. It was just a pure miss. Earnings $149 versus the $169 that Wall Street expected. This market's simply not ready for utility. That is high interest expense. Seems a bit of an overreaction to me. But then again, I didn't own it. And watching it sick 15% decline on earning day. Uh 18% decline for the month says to me, stay away. Finally, in the momentum, traders, the journal reported today is fractured. And that's how Western Digital, maker of disc drives, could plummet on a fine quarter, finishing the month down 17%. You know, it didn't help that data centers became political footballs and they aren't getting any better, even as some labor unions are now trying to get utility regulators to become more positive toward them. Very strange that Sandis could make the 11 best and Western Digital, same business, the 10th worst. But Sandis has the most aggressive buyback in the entire stock market and buybacks worked this quarter and this month. Now, these all seem so obvious, right? But the comeback of the software from incredibly depressed levels was breathtaking. The California legisl legislature, forget it, they can't be game. Crypto rallies, electric cars falter, and Amazon takes its toll. Bottom line, nothing shocking here except Mona, which has done something that we've never seen before and no one said could really happen. A vaccine against cancer. If it works and there are others behind it, then the backers of Mona can truly say you ain't seen nothing yet. I want to start with Sam in Massachusetts. Sam, >> Jim, listen, I got a big position in AMD that I've been pairing back. Lisa Sue is great, but I just wonder how much further can this company go? It's approaching a trillion dollars in market cap and I know growth is supposed to be 46% next year, but should we continue to hold AMD or is it time to pair it back? >> I like that you paired it back a little. I think you let the rest run. There is nothing that Lisa Sue has done wrong here. She's done everything right and that's why it's so difficult to sell even though it's up more than 100% for the year. You've taken some off. That's all I'd like you to do. I'm gonna go to Frank in New York. Frank, >> hey Jim, thanks for taking my call. Hey, buddy. I bought this stock a couple of weeks ago. Uh, AET Alistister Networks. Boy, are you still a bull on it? I mean, cuz when this big >> Still a bull. Still a bull. Still a bull. Let's chase for you L. I'm I'm a I'm a triple bull. Triple bull. I was able to do that. Yes. I think you got to own that. Oh, here we go. Shyam in New Jersey. Shyam. >> Boo. Boo. Boo. Boo. Boo. Boo. Yeah. Jim. This is Sam from New Jersey. That's the first show ever since 2006. Jim. >> Oh my god. Everyone in my family, my my wife, my two sons, my parents, all our big fans. We cannot really thank you enough. That's a familiar event. Okay. And I love that. I really do hope they're watching me. I'm buying into this thing. Thank you. >> Yep. Thank you. So considering the contradictory signals that we are getting from the retail segment like Abberrombi and Fitch skyrocketing after the earnings while Nike still struggling. Uh what are your thoughts on the TJX companies especially considering the fact that it has lost more than 70% of it? I am a gas. As I told Jeff, I have not seen this stock ever have this kind of move. 170 down 133. We bought some last week. I think the next move is 130. But I've never seen anything like it. I have to tell you, it did miss the quarter and Ross did make the quarter, but the company just seems like a pitiful, HELPLESS GIANT. THEY got to step up to the plate and start doing some buying of that stock and getting better merchandise in the TJ Maxx division. All right. I honestly I'm I I can't believe this and we made such great money in this stock over the years. The winners and losers for August and they seem so obvious, but when you look at the context, the comeback in software was actually phenomenal on man money tonight. Cruise company Viking holdings has seen a big pullback lately. It's like the TGX of the of the cruise lines. So, could it be time to take a position? I'm taking a closer look. And as as goes the metals, so goes the economy, maybe. I know. I'm going to go off the charts to examine this latest move in copper and see what it's telling us. It's pretty stark. And safety science stock UL Solutions got crushed after earnings. But could that be a buying opportunity when we sit down with the CEO to learn more about what's ahead? It just might be. So stick with Kramer. >> Don't miss a second of mad money. Follow Jim Kramer on X. Have a question? Tweet Kramer #madmentions. Send Jim an email to madmoney@cnbc.com or give us a call at 1800743 CNNBC. Miss something, head to madmoney.cnbc.com. You know me, I'm always on the hunt for bargains. And right now, I think you're getting a Costco level deal on Viking Holdings. It's one of my favorite cruise lines. Specializes in river cruises for older, wealthier travelers. Their tagline is no kids and no casinos, which is a great pitch for certain kind of customer, right? In less than a month, Vikings pulled back from $110 to 86 bucks and change. Even though Portstone quarter a couple weeks ago, Grady, I think, may be a phenomenal buying opportunity. Maybe the first we've seen since then came public. Keep in mind, Vikings arguably be the best company in the industry. Unlike the other cruise lines, it didn't have to borrow insane amounts of money to survive the pandemic. Ever since it came public a little over two years ago, the stock's been steadily chugging higher. I've really 200% since the IPO. It's great management too. Yet, in the last few weeks, the stock has just been eviscerated. What the heck is going on here? Right. Some of this is industrywide. Vikings down 22% since August 5th when it saw it was at its all-time high. Meanwhile, Royal Caribbean, Carnival, Norwegian Cruise Lines, they're all come down about 18 to 20% over the same period. The price of oil is up 10 bucks over this period because the war with Iran keeps flaring up. That's something important that this company has zero control over as you know. At the same time though, there are also some Viking specific issues like worries about low water levels in some major European rivers that must be taken into account. See, after a hot summer, the Danube and the Ryan are both at surprisingly low levels, which is something which is disrupting some of Vikings cruisers. Occasionally, passengers have to load up on buses to get past shallow parts of the river. Then they swap to a different boat. Now, that is a distinctly suboptimal experience. There are concerns about this drought that could start to hurt Vikings numbers, resulting in major cancellations. But then Viking reported on August 19th, and even though the results were excellent, the stock still got crushed down nearly 8% a single session. This is Viking. Why? Let me break it down for you. First, the actual quarterly results were strong across the board. Revenue grew 16.5% year-over-year to 2.19 billion, beating expectations. Vikings earnings for interest taxes depreciation amortization grew 18.2%, also coming in well above expectations. In the end, they posted a 5-cent earnings beat off a dollar26 basis. 32.3% growth year-over-year. I don't know. Vikings net yield, which is key metric for the cruise lines, similar to revenue per available room for hotels, came in at $645. That's up 6.2% year-over-year. solidly better than the 638 number that Wall Street was looking for. So, let's set the stock into a tail spin then. Okay. Viking doesn't give any explicit forward guidance. They just offer color on their booked position and pricing going forward. And that commentary looked pretty good to me. As of August 9th for uh Vikings core products, it had sold 96% of its capacity for 2026. Meaning meanwhile, look, they're effectively sold out. Okay. Advanced bookings per passenger days for uh cruise for the 22 22 I'm sorry 2026 season stood at $833. Now that is 6% higher than last year's season at this point. Perhaps more impressively for the 2027 season future bookings. Viking already sold 53% of its capacity. It has 4.71 billion of advanced bookings for the 2027 session season. Hey, come on. That's 21% higher than what it had for the 2026 season at this time last year. They can't be all that worried about it then. Advanced bookings per passenger cruise days for 2027 stand at $958. That's up 10% year-over-year. These people are all tremendous numbers and everyone knew about the weather. But then CEO Leah Tactac mentioned those lower European river levels in the conference call. She started by noting that this was an industrywide issue and explaining that FI is much better able to navigate these challenges than its peers because its fleet was built to handle low water levels. However, she acknowledged that this year the historically low water levels have made it impossible to avoid the problem entirely, the bus ride thing. Then came the next line, which is what torpedoed the stock. Are you ready? Tact said that in some cases, Viking also issued vouchers. Yes, they're issuing vouchers to certain affected guests. Here's how she put it. quote, "While we believe this is the right approach from both a guest satisfaction loyalty perspective, these vouchers will have a financial impact extending beyond 2026 and into 2027 and 2028 as they are redeemed end quote." She described the move as quote an investment end quote that will build trust and support long-term loyalty to Viking. Wow. Okay, I think she's right. This is a great way to entice customers long term. What sets Viking apart is the fact that this company understands it upscale clientele and does everything it can to give them a perfect experience. This is a luxury cruise brand and its clients want luxury treatment. So if low water levels mess up your cruise, the company will compensate you. If Viking thinks this is the best way to retain customer loyalty, I believe them. But Wall Street mostly cares about the numbers and these vouchers will cause a hit to earnings in 2027 2028. Hence the meltdown in the stock. And also I think there's a sense wow I mean vouchers on Viking. No look I think it's crazy that people have been selling this thing response to one especially hot summer in Europe. Viking put up excellent results. Bookings for the rest of the year in 2027 incredibly strong to me and that's much more important than the cost of the vouchers they're giving out people to for people who want like you know who got disrupted on the river cruise. I don't know. I'm betting the rest of the market will come around to my position here. I like what the analyst at Stifel had to say about Vik and quote six months from now don't blame us when you did when you didn't buy this correction end quote I could not agree more to what Stifel says which is why I'm telling you to buy the stock into its recent weakness hey by the way after this pullback Viking now sells for just 26.5 times this year's earnings estimates I know that some of you may think that's expensive compared to the rest of the industry but like I said before Viking's best of breed and the stocks always commanded a premium valuation plus the company's growing earnings at a 25% % clip this year, paying 26.5 uh times earnings for the stock. It's on the low end of what Wall Street's willing to fork over for growth. Here's the bottom line of what is essentially a confusing story. Viking Holdings, like the rest of the cruise lines, has sold off hard this month, down more than 20% from its all-time high in August 5th. But when you dig into the quarter, dig the details, I think they're fantastic. And yes, there were vouchers, but the stock is absolutely worth owning here. What can I say? How about the dip? We have money's back after the break. >> Coming up, Kramer's going off the charts to find out whether Dr. Copper can still diagnose the strength of the economy. Next, on Friday's Jackson Hole speech, new Fed Chief Kevin Worsh said the Fed might not be done fighting inflation, meaning we could be very well looking at a rate hike in the not too distant future. Now, I've been hoping that wouldn't be necessary. You know, the whole big chunks of this economy that could really use a boost from rate cuts. And there I'm thinking housing. But even though inflation's been cooling, it's still much higher than we want it to be. It's hard to solve as long as we're fighting with Iran, that is which pops with the price of oil, as we saw all day today. Plus, from some angles, the economy is pretty strong. Sure, we had a 1.5% GDP growth in second quarter that's 86% of the stocks the SP 500 reported better than expected earnings for the second quarter. This is something you can really see when you look at the metals. That's the fastest way to judge the real strength of the economy. That's why tonight we're going off the charts with the help of Bob Lang. He's the founder of explosive options.net. He's also the author of Know Your Options in order to get a better read on the metals. I want to start with copper, or as it's known commonly on Wall Street, Dr. copper, because it's the only metal with a so-called PhD in economics. The price of copper is just that good at predicting the trajectory of the global economy. Lang points out that when you look at the price of copper this year, you could easily conclude that the economy is on fire. Copper prices are up more than 18% year to date and 48% over the past 12 months. That's really strong. Keep in mind, copper's used everywhere from construction to manufacturing technology. A lot of this comes from the great data center buildout because those warehouses are full of servers need all sorts of wiring unless they're using fiber, which is increasingly a factor. Since late 2023, Lang notes that copper's made an incredible run. Look at this. Okay. Uh from about 355 all the way to 668, which is an all-time high. It's the best three-year run in nearly two decades. We know demand for copper's off the charts, so there could be more upside. How do you play it? All right. The biggest and best of the copper miners here in the United States is Freeport MC Grand, which gives you exposure to copper, gold, and even some oil. Now, the best position name globally is Southern Copper. That's the biggest minor in Peru. Lang also likes Hud Bay Minerals. That's a major Canadian miner I don't follow. All three of these stocks have pulled back recently, but Lang thinks they're poised for a big run into the end of the year. Let's take a look. I want to start with the daily chart of Freeport McMaran, which had a monster run earlier this month before cooling off a bit last week as Lang sees it. This is an outstanding chart. And if you want to look at the chart, you just look, this is the real chart, okay? And look at this. It's got a series of higher highs and higher lows, a steer that we like so much. While Freeport broke out earlier this month, cruising past its June highs, it did so on strong volume. And here's the volume right here. And that's what he's talking about. Uh volume is like a polygraph. When you're looking at the charts, strong volume means the stock's telling the truth. That means this rally is the real deal. When you look at the moving average convergence divergence or the MAC D line here, we're looking at this. Okay. Uh it flashed a buy signal earlier this month where the black line goes above the red and you can see that right there. Okay. I know it's a little faint, but that's it. This is one of the most reliably bullish patterns out there. Then there's a new one for me. The TTM squeeze down at the absolute bottom. This is an indicator created by a fellow named John Carter of simpler trading. Help spot low volatility periods of consolidation in order to help traders predict big moves. It's basically an amalgam of other technical indicators. Long story short, red dots on the zero line means that we're in a period of consolidation. Okay? And uh green dots means that we're looking at a period of expanded volatility. Now, uh that that could lead to explosive moves. Right now, the TTM squeeze says the Freeport's in explosive volatility mode. Wow. Okay, I'll take that. Uh when you look at the RSI, which is up at top, the relative strength index, it's come down a bit from overbought levels. You see it's just kind of come down a little bit there. Uh from L's perspective, he sees this recent pullback from the highs as a nice buying opportunity. Pull the trigger right here, says Bob Lang. Now, over the past couple weeks, Freeport's made what's known as a bullish flag pattern. Okay? Uh that's basically where you get a big basically a vertical move higher followed by sideways period of consolidation. Usually when you get to the end of the flag, which is pretty close to where we are, you get another move higher for Lang. This is uh if 75 and change can break out, it goes to $80. That would be terrific. 80 odd. Um, it's smooth sailing then to $100. From my experience, it's usually how things work. He's also spotted strong call option buying in the October 90s and 95s. Stocks already up 49% for the year. But if Lang's right about the chart, then Freeport may not be done and you're going to see $100 to the stock. All right, next up, check out a very powerful company. It's the daily chart of Southern Copper. That's the biggest copper miner. It's in Mexico and Peru. Largest reserves in the world. This one's been a consistent mover, steadily making a series of higher highs and higher lows. The MACD flashed a buy signal earlier this month. Couple buy signals here. Back in July, Southern Copper tested its 200 day moving average and a floor of support and then ripped higher. Okay. Uh and you can see when you look at the 200 day, that's this line and this that's the test. Okay. And then it ripped higher. Uh it's now got this bullish trading channel. Lang also points out that the TTM squeeze indicator is is is extremely bullish. Silent copper is already up 50% for the year, but Langley has got more room to run. In fact, this is his favorite of the copper stocks. While the option volume isn't as heavy in this one, there's been healthy interest in the October calls at 210 and 220 as well as the January 220s. Right now, Southern Copper is a $28 stock. If it can break out above 220, Len thinks it's going to $250, which would really be fantastic. Finally, how about this Hud Bay Minerals? This is a Canadian mining firm with projects in Arizona, Peru, and In Nevada. This chart shows a modest uptrend of higher lows. In July, HUD Bay bounced off its 200 day moving average. Red. Okay, look at that. Just bounced right off it. Woo. Uh then it blew through its 50-day moving average and just kept running. Now the stock's trading sideways just under its June highs. Once that level gets taken out, call it 44 and change. Lies straight shot to 50. I like that one. Meanwhile, the MACD is on a buy signal. The relative strength index that's up here, uh, is pulling back after getting close to overbought. So, that's pulling back right there. So, he likes that. And the TTM squeeze indicator is very positive. Put it all together and there's a lot to like in this chart of a stock that I don't know at all, frankly. Here's the bottom line. Say what you will about the global economy. The charts in the compromise interpreted by Bob Lang say we're in very good shape. Even if it might not feel that way to the consumer. And that's why I likes Freeport Mcgrand, Southern Copper, and my new favorite, Hud Bay Minerals. Let's take some calls. Let's go to Frank in Texas. Frank, >> well, hi Jim. It's good to speak with you again. Uh, >> thank you for calling. >> Yeah, this time, USA Rare Earth is my question. It had a hit a high back in May. Now, it seems like it's struggling. Shouldn't it be doing better given that it produces so much of what we need? Uh the answer is absolutely. I think you're dead right. Uh uh but it does have uh remember this market is not favoring companies that are losing a lot of money and that company is losing a lot of money. But I liked your idea and I think as a spec it works very well. Let's go to Leslie in California. Leslie >> Jim, glad you can see better with your new glasses. >> I'm down about >> Oh, I'm sorry. >> I'm down about 13% on FedEx freight. um FedEx freight since you recommended it. Buy, sell, or hold? >> No, you want to buy some. We we I Jeff and I talk about this constantly. We think that the spin-off it's finally getting it's shaking off all the stock that people didn't want when they if they own FedEx already. We started a little early. We thought that it was going to we thought it was going to bottom earlier and it hasn't. But I really really like the stock and I think it's just kind of consolidating before it has its big move. Okay. The copper charts as interpreted by Bob Lang say we're in a good spot. He likes the copper stocks here. You know what? So do I. And a lot of it is because I think the charts are pretty compelling. Much more manudd wraps up his last day as CEO. I'm taking a look back at the 15-year legacy at the helm of this company and giving you my biggest takeaways from his tenure. And all your calls rapid fire tonight, the lightning round. So stay with Kramer. We have a real conundrum on our hands here with UL Solutions. That's a safety science company handles all sorts of product testing. Earlier this month, the company reported a seemingly strong quarter, yet the stock fell 14% in a single session, and it it's kept getting hit since then. Although the headline numbers were all solidly better than expected, there were some real issues when you check under the surface. manager only reaffirmed their organic revenue growth forecast rather than raising it. Their free cash flow came in light and UL solutions raised its capital spending outlook from 7 to 8% of revenue up to 8 and a.5% of revenue. Perhaps incentive compensation putting real pressure on margins. These are all hard for me to figure. That's why the stock did get clobbered even though the core testing business which was what I was looking at was very strong especially for hardware related to the data center. So could this be a buying opportunity? Let's take a closer look with Jennifer Scan. is the president CEO of UL Solutions to find out more. Miss Scandlin, welcome back to Mad Money. >> Hi Jim. It is always great to see you and to be on the show. >> Oh, thank you Jennifer. I'm glad you are on the show. We want to try to figure out what's going on here. I mean, organic health uh growth was pretty good. I know that free cash flow may not have been up to stuff for some. Industrial margins were kind of good, but people didn't like these. Can you tell um let's say put to rest some of the concerns so we can talk about what UL solutions really does? Absolutely. Because it was an outstanding quarter and as you said, we had record revenue. Our organic revenue growth was 6.6%. We continued our margin expansion and the free cash flow was up 20% for the last 12 months. So, I think there's some things that I'd like investors to focus on. And the first one is that free cash flow. We It is a hallmark of our business. Jim, we've talked about 43% of our revenue is recurring and that cash flow 20% over the last 12 months were up. Industrial you mentioned, we continue to see strength there. We were up 7.7% in the first half of the year growth rate and that margin continues to expand yearon year and we'll talk about the mega trends, things like AI data centers and the new energy landscape. It's all propelling the future of our industrial business. So, >> and then we are good stewards of our capital. So, we've got an inorganic announcement, our Euroins acquisition as well as capex. So, lots of great stuff to talk about in our future. >> So, I mean the analysts were talking about margin pressure. Those margin pressures uh would you regard them as temporary? >> I don't see any margin pressure. We affirmed our guidance at 27%. That's up 25.9 from 2025. We continue to see margin expansion in every business. Um, so we feel really good about this strong operating climate that we're in. >> Okay. Well, let's talk about the data center now that we've kind of cleared up. And some people, some analysts might regard what you said as being a little too positive, but I think what you said is pretty much what I saw. How about that? So, why don't you tell us about the data center opportunity because it's probably the biggest I've ever seen for you. >> The data center opportunity is incredible. And there's different audiences in this. You know, we're playing in both the hyperscaler space and the colo space. And in both of those ecosystems, there's just a tremendous amount of energy that needs to come in, different components that are using that energy differently, different voltages, and then different ways in which those chips and that energy is being packed into these tiny racks. And I call them tiny racks. It's a refrigerator sized, but it's a lot of power and a lot of heat in a small space. All opportunities for us to have safety and certification in helping those customers. All >> right. So, tell me, you certify the devices uh the the device itself or do you cert certify each device? >> We certify each device. So when you think about it again a data center is comprised you've got the cables coming in you've got the cooling systems that could be running through the racks could be running next to the chips could be on the roofs cooling the you know entire air cooled it's moving to liquid cooled and then you look at the way that those chips are stacked as well as just the thermal dynamics and the power coming in and the big shift here and they're in early stages the big shift is to this 800 volt volt direct current architecture, they're going to keep going up from there. So, you've got to be really careful about any type of overheating, any type of potential arc flash, any type of of ways in which both the installers and the the operators of data centers are affected by potential um any glitches in the energy or the thermal dynamics. Now, are are you someone who could say, "Look, I think that you're doing air cool. Perhaps you should do water cooled. I think you'd be less susceptible to fire." >> No, we cannot advise on design. There is a really hard red line. Um, we have to remain independent as third parties. What we can do is help write the standards for if you're doing liquid cooled, here's the way to ensure that that is safe in that environment. And then we test to those standards, >> right? that makes much more sense the way to do it. Now, uh you have a a a a pretty much of a great opportunity in Japan. Now, I think some people might say, "Well, wait a second. This Japanese capex was too big there." But if Japan is big and autos are big, I want you to be big. >> Exactly. And that's why we were so excited to open the new lab in Toyota City, Japan in the second quarter. And that lab is focused on largecale EMC wireless testing specifically for the auto industry and Japan is such an innovative auto market. >> Now what about this uh stockbased compensation? Is it really that I mean I can't imagine that you have that much that anyone should really be complaining. Uh you guys have run a pretty tight ship. >> Yeah. In fact, we have a payfor-performance culture and we are so pleased that we have performed so well again record revenue organic revenue growth of 6.6%. So we had some catchup in there but really this is good news for investors that we run a uh you know variable set of costs around performance and outstanding results. Well, I know. I mean, when I saw the chart, I said, "Wait a second." I mean, this is a great opportunity for people given the fact that how stable things are for you. And then I said, "Well, look, we got to clear up these things. I mean, maybe it's tariffs. Tariffs and macro uncertainty. Either one of those play some role." >> Absolutely not. We are so resilient. We've been resilient through tariffs every step of the way. We're not a manufacturer. We're not volume based. And as manufacturers move their supply chains around the world, we're there to help retest. If they change out components or raw materials and they need new certifications, we're there for them. And the same thing um across the board with all of the macroeconomic factors. We are resilient. >> Well, I I've got to tell you, sometimes you see a chart and you say, "Wait a second, opportunity." And then when I hear you say it, I can't think that any of the objections that you directly confronted make any sense in terms of trying to keep someone from buying the stock. So I want to thank you. >> I got to tell you, Jim, I'm bullish. >> Well, it sounds like you're probably I I don't blame you. How about that? That's Jennifer Scalin, president CEO of UL Solutions, who answered every single question that any of the analyst said, and I thought she answered very positively. Thank you, Jennifer, for coming on the show. >> Thanks, Jim. That money's back after the break. >> Coming up, you've got questions. Kramer's got the answers. Get charged up for a fast fire lightning round next. It is time. on my st and then the lightning round is over. Are you ready? Ski D. Let's go with Dave in Illinois. Dave, Dr. Kramer and former Boston Wher owner with Grady White Envy. Those tarpons sure put up a good fight now, don't they? >> Man, they're monsters, Dave. Oh, boy. They're prehistoric. I brought them in. Took me 90 minutes, but I brought them in. What? What's your stop? Where was that? In Trinidad. >> Right off the Trinidad, but actually five miles up to Venezuela. It closed. >> Jim, this 57 billion dollar company predominantly serves the semiconductor testing space, offering equipment and services for testing chips. I'd like for us to revisit last. >> Dave, I think you're right. I think Pterodine is right here. It's kind of cooled off. It's got a great business, unassalable business, kind of not a monopoly, but close to it. I agree with you. Uh, Aba Paul, North Carolina Paul. >> Booyah. Jim, love your show. Wash you since Thanks, Jim. Watch me since Cuddlo and Kramer and I've bought all your books and read them all. >> Been a while. >> Learned a lot from them. >> And hey, I really love how to make money in any market. >> Thanks a lot. I've been trying to teach. It's about teaching. >> Hey, I've learned a lot. You've made me a successful stock picker. >> Yes. But this company uh has had some negative articles in the last few weeks and I know it's a club name and I'm a little worried because there may be a strike in October. Do I continue to add to my position in Boeing or do I pause? >> Okay, Boeing is just I mean look, it's a snake bit stock. I admit that. I went to Jeff Marx today and I said maybe we should buy some more Boeing and he just said, "Oh man, come on." And I have to admit that when oil goes up, Boeing goes down. I say we have to be on the sidelines until it breaks 200, which it might because it is so despised. And if there it doesn't, it will take into account even a strike. Let's go to Joel in Ohio. Joel, >> hi Jim. Appreciate the call. I may interested in Applied Aerospace, A Ax. They're losing money, but Morgan Stanley has them at $24 today. They hit a new low about 1320 or something. >> I think the problem you did, you did key on it. It's losing money. And right now when I recommend a losing money, I am a loser on the show and I don't want to be a loser. Let's go to Bill in Texas. Bill. >> Booyah. Jim. >> Booyah. >> Proud club proud club member and longtime student here. >> Thank you. Thank you. >> Wanted to get your thoughts on a stock that's had a nice upward move. U would now be a good time to take a position in in energy transfer. Um, I think at 6% it still makes sense. Although boy, I would like to buy some and then wait for a little bit of downturn which never seems to come. And that, ladies and gentlemen, conclusion of the lightning round. The lightning round is sponsored by Charles Schwab. Coming up on Tim Cook's final day as Apple's CEO, Kramer is saluting a man who, despite his greatness, may still be underrated. Next, today marks the final day for Tim Cook as CEO of Apple, a powerhouse he built into a titan with the stock rallying more than 2200% under his leadership. Now that is some incredible performance. So much of the discourse about Tim wrestled in the legacy of Steve Jobs whose unfortunate passing came at such a young age, 56 in October of 2011. We all wonder what else Jobs might have invented if he'd survived. The wrap on Tim Cook is that well he kept the trains running on time, didn't he? By being smart about creating an unassalable supply chain. Of course, that sounds like fame praise to me when you judge it alongside the legacy of Steve Jobs. But as someone who covered Tim for his entire tenure as CEO, I can tell you the man doesn't get the credit he deserves. When Tim took over, for instance, Google's Android operating system and more than 40% of the US market versus under 30% for Apple. When Tim retired, the iPhone had 55 to 60% market share, leaving Android in the dust. Sure, he didn't invent the iPhone, but after getting pushed back by new competitors, he led Apple to dominate the industry. This was a great run powered by the fact that the iPhone is the product of the best technology, the best design, and the best security. I always chuckle when I see someone using another kind of phone. I mean, what are these people thinking? When I talk with Tim on earnings day, he always reminds me of his market share and all the countries where Apple dominates. The numbers are truly insane, which belies the importance of making the trains run on time. And it's not just with the iPhone. It was under Tim's leadership that Apple's service revenue stream grew from $9 billion in annual sales, kind of an asterisk, to more than a hundred billion dollars. The Service Stream is now 28% of the total business. I'm not even talking about the wearables. Wall Street never gave Apple enough credit for the Service Stream, which is one reason why Tim has been able to consistently buy back a lot of stock at great prices. Since Cook took took over in 2011, he shrunk Apple's share count by more than 40%. Now, I keep hearing that Tim Cook hasn't mastered the art of AI, but honestly, outside of Nvidia, I don't think anyone's done a great job with this one. The hyperscalers have wrecked their balance sheets to build these data centers. They're the ones to worry about, not Apple with a pristine balance sheet that's the envy of the industry, maybe any industry. The irony of the criticism is that Apple has a tie with Google's Gemini that comes as an extension to Google Search. And Google Search pays Apple more than $20 billion a year to be the default option on the iPhone. Now, we don't know exactly what Apple pays for Gemini, but it certainly doesn't offset how much Alphabet pays Apple to give users Google search. Tim has been adamant that he wants his legacy to be about health. He's worked tirelessly to make the Apple Watch a lifesaver many times over. He's eliminated substantial risk to life and limb and heart. This company was never going to cure cancer or end heart disease, but actions will happen and Tim's done more than any government to minimize the fallout and get people to focus on their own health before anything bad occurs. It's a beautiful coded to his career. On a personal note, although you could say this whole homaly is nothing but that, I've seen this man in action many, many times. He's warm and kind and treats people with dignity wherever he goes, regardless of their station in life. He never carries himself as a master of the universe. I I don't know if he would even know how to act that way. He's an American who developed the number one consumer product in the world. He might be the number one business person of our Europe. But most important, he's gracious and kind. Two qualities you almost never see in business and rarely ever seen in life. He's nice. Tim, you will be missed even when you're sticking around as executive chairperson. You made the world better. What an honor that you let me in your world. But if you're an Apple user and you send him a picture that about how you look or tell him stories about how his wa your watch saved your life, well, he let you in, too. I like to say there's always a more market summary. I promise I'd find it just for you right here on Money. I'm Jim Kramer. I'll see you tomorrow. 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