Mad Money 07/28/26 | 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. Bad money starts now. Hey, I'm Kramer. Welcome to Bad Money. Welcome to Crime America. My friends, I'm just trying to make you a little bit of money here. My job is not just to entertain, but to educate, do some teaching. Call me 1 800 743 CBC. Tweet me at Jim Kramer. First they started buying materials and pharma companies like Dupont, 3M, Johnson. Then they expanded their net to beat BUY THIS BEATEN DOWN GROWTH SOFTWARE COMPANIES. Today they cast the widest net yet, wrangling aerospace like Boeing, high quality growth retailers like Costco and Walmart and even CocaCola and Pepsico. Who is they and what am I talking about? I am using trader sign to describe what big institutional buyers, the ones who move stocks where they're buying like you saw today and their patterns they are now using to rearrange their portfolios to have more than just AI exposure. That's what's happening. So where does that money come from to do all this new buying cast the wide net mostly from NASDAQ stocks especially the ones connected to the once loved now Scorn Data Center. This seat change is roing THE AVERAGES. DOWN jumping 53% BUTCH >> as it be gaining 21%. >> NASDAQ falling 22%. >> You can see what I'm talking about when when the Dow Jones rallies furiously as it did today. But the data center heavy NASDAQ actually loses almost a quarter of a point. That is a very interesting dispersal. What is this action saying? You need to know. I'm listening to it. Pretty much what we said in 2000. That's the problem. When the tech stocks cratered and the money flowed into areas where growth remained, it looks like a lot like that be bygone era and we wish good riddance of that era. We don't want that. In the end, it could take everything down. I bring that out not because it will. I just need to tell you if history is going to repeat itself. Why is this great swap happening again? Well, it all starts with tech. We've seen a huge part of the NASDAQ and lots of the S&P pivot hard in the last year as started ramping up for the data centers pivot in a beautiful way. But there are many parts of the data center. The parts that most excited people were actually the parts that were in short supply. That's right. In just well, let's just say they were scarce. And I'm talking about memory and storage from Seagate, Western Digital, SanDisk, and Micron. There were shortages in all these. These companies historically have been very boom and very bust. When it's very boom, there's big shortage. When it's very bust, there's a surfet. When AI exploded on the scene and the data center caught fire, we had to fill those data centers with servers and servers are packed with memory and storage. Those big four companies plus SKH Highix which now trades here, not just in Korea and Samsung in Korea very quickly got huge pricing power because they literally weren't enough chips to go around. And by the way, SKH Highix and Samsung are much better than much bigger than our companies. Not much better, but much bigger. Um, so what's happened to these companies? They've been able to raise prices and raise prices and raise prices with abandon and it's caused a lot of things to be a little more expensive than you and I like. That allowed though for some of the greatest runs I've ever seen in stocks. Listen to these. Western Digital went from $70 $70 a year ago to $799. In June, Micron started at $101 a year ago and then it falled to $1,255. Se went from $152 to $1,145. and Sandis made the biggest move of all, galloping from $42 to $2,354. Those moves are incredible. I call them lifetime gains, at least if you took them. But every one of these stocks peaked in June. Western Digital's now fallen from $7.99 to$463. Micron255 to820. Seagate 11145 to 747. And SanDisk, well, it's tumbled from 2,354 to $1,96. And those are colossal losses. What triggered them? And the answer is elusive. Prices for their wares haven't come down at all. Some of them are still going up all the time. But I've been through many boom and bus cycles with these companies. And the stocks always start coming down well before the business deteriorates. You can't see what's going to happen. That's But I always say though, you have to sell the parabolic moves. More on this later, that these shortages trigger because parabolic moves always end. the socks just anticipate that ending. In other words, the stocks fall first and then the numbers go down. My best guess. Remember, there are two queen companies that are the biggest memory makers. I just talked about it. But maybe the Chinese, which are struggling with memory pricing, have managed to produce more chips than we know. And some of the producers in Eur Asia can therefore switch to China. Producers in Europe switched to China. Maybe they're about to place fewer orders with the Koreans, busting the shortage. And that would also explain why Apple, big buyer of memory, saw its stock hit an all-time high today. Not a conspiracy theory, just a conjecture. Now, we are going to get a real chance to see if these disc drive memory stocks can reignite because Seagate reported a very nice upside price this very evening and it is trading higher after the close about 50 points higher than where the trading ended at four. But here's the thing. These stocks all traded higher initially after they reported already. We need to watch like hawks to see tomorrow if the money can flow back to the company's stock. If it can, we could be in a reprieve mode. If it can't, let's just say, well, they all trade together. Many of those who sold these stocks to take capital gains will keep redeploying the capital away from the kind of tech that's f found in the data center, though, and we saw that all day today. Now, they certainly aren't selling because of a lack of demand for data centers. That demand's ferocious. We just found out today that Met and Black Rockck are getting together to build a 14 billion data center. Every day we get huge deals like every day. I'm not kidding. This weekend we got we had hundreds of billions of dollars of these of these deals. Exactly like them. No, they're selling because they're afraid of the whole group. They're concerned that the big buyers of this data center equipment will slow their spending or stick to their current budgets in part because they saw how sellers swarmed out of Alphabet stock when it raised its capital budget to get even bigger in the data center. They saw the stock of Alphabet raise. They saw they saw Alphabet raise its capex budget which was initially going to be 180 190 billion up to 195 billion to 205 billion. This the stock then dropped 7% on that news and lost $275 billion in market cap just on that news. Let's see it raised its spend by about 15 billion in the midpoint and then shed $200 billion. Now, Alphabet stocks recovered a bit since then, but the point remains, perhaps more important, anyone who participated in Alphabet on the secondary got crushed as the stock went from $355 to $330 with a pit stop as low as $318. And now, Alphabet has negative free cash flow. So, the data center stocks once so prized now seem dicey. I expect that the tech buyers will try to mount a rally off of Seagate's good number this evening. I don't know if it's going to last. Meanwhile, I can't believe the gains we saw today in Costco and Walmart, which have been such dogs. They're up 1.6 and 1.2% respectively, but were much higher at one point. The software companies like Service Now and Salesforce jumped 4.8 and 4.6% respectively. The food stock soared. Oh my god, that group of strong. Coke and Pepsi rallying 5%. Coke in that great quarter and 2.2%. Drugs all went up. Biotech was screaming. Now, you can call it a broadening or you can call it a fleeing. Of course, we have to distinguish among the decliners. Memory stocks are part of a bottleneck in the data center. They're regarded as a tax. They're hurting the margins of the buyers. There are other companies like Nvidia and I believe Intel that are worth holding on to because their gains weren't from shortages. But I recognize their stocks have been hurt. Wow, we're taking a beating in this Intel, but I'm going to buy it all the way down for the Chapel Trust. Why don't even buy some of them? Because I don't think AI spending is going to collapse. Some of the builders may exercise prudence when they announce their spending plans, and that could put pressure on some of these stocks, but they'll still be okay, just not as good as they were. So much money has been made with the data center thesis, but a lot has been lost of late. If you bought stock on that Google secondary at $355, if you bought SpaceX right out of the gate, you're in no mood to help finance the data center build, are you? And if you're a privately held operator, your values likely come down since June. We just can't see it. The next move might be a down fundraising round and then perhaps they won't even have enough money to meet their commitments causing losses all the way down the line particularly to those who extended financing. Something I don't like. That's a big reason why the entire complex has been trading lower. There are plenty of other reasons why money's fled to non- tech growth stocks and the formerly hated software stocks. Oil's down, rates stable, Fed B could have a benign outcome tomorrow. Not that long ago, we thought there might have be a rate hike. The earnings of the winners have been far better than expected. Healthcare's really been trampled for no reason. But the overwhelming theme here is the concern that some big company wary of what happened to Alphabet says it's going to hold the line on AI spending. No more increases. The market can certainly be wrong. Maybe soon OpenAI comes out and says, you know what, clear line of profitability next year. Perhaps anthropic says time to time to come public. We're profitable. Then the data center story lives and you'll wish you own some Dell or AMD or Nvidia or Intel. The bottom line right now though other stocks are in the sunshine and the semi portion of the data center is under assault. Money can flow back especially considering how low these stocks have gotten. But it sure would help to hear some of the hyperscalers say they're making a ton of money with AI or at least not losing it or even a line of sight to profitability that could save the group. But does anyone have one? I don't know. Let's go to Robert New York, please. Robert >> Ben, thanks for having me on the show. I just want to let you know as I do every as they do every year that it's my birthday this Thursday. >> Oh my Robert, we're going to have to send you some cupcakes like we send Heather Gains and that because they were delicious. >> Jim, my favorite song is Happy Birthday to Me. Happy birthday to me. Thank God for Jim Kramer. He keeps making us money. >> Sinatra Sinatra will never be confused with Robert. So last year I said commit don't quit your change. This this one I'm saying that Sinatra No, >> he's not not the All right. All right. Yeah, you're right. What What do you got? >> Get to work. >> Okay, >> let's get to work. Okay. This next company is an American biotech that develops and markets robotic products designed to improve clinical outcomes of patients through minimally invasive surgery, most notably with the DA Da Vinci surgical system. Jimbo, now I think this stock is on sale. Hospitals are eagerly buying the company's new Da Vinci 5 systems with placements jumping 18% in the second quarter. This stock is at a low and Jim I cannot buy it unless I speak to you but I think this IS GOING MUCH MUCH HIGHER. Intuitive surgical. >> Okay. All right. Look, I I was fig Robert. Here's the problem. They did not have a good last quarter. However, I agree that it's down so much that it is looking up to me down 36%. I think this and a lot of the others have been thrown away. Have a couple days gains, but don't forget the quarter wasn't that good. It's not as good as you're singing. Okay. Jimmy Chill says be careful in tuitive surgical. All right. Right now, the data center stocks, they're in, you know, a little pain today, but many other sectors are in sunshine. May money tonight. SpaceX has slowed dramatic since his IPO. Is there an opportunity here? Now it reversed in midday trading. I'm taking a look ahead of big lockup expiration though that is the best opportunity in the market hidden underground. I'm taking a look at the aggregate stocks for a second day. Give you my take on this incredibly good growth stock group of rocks and shares of new car on tear this year. Speaking of growth, oh my god, the growth in the steel business is just nothing short of amazing. And new course is the leader. Stay 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. Last night I got a call about SpaceX from Kevin in Kentucky and I told him what I've been saying all along. This is a stock that requires a lot of trust. If you trust Elon Musk, then it's worth owning for the long haul. But if you don't trust him, forget about it. But now that the stock's come down nearly 50% from its initial highs, I figure it's worth circling back. You know, look, it's this one could be very interesting. It's been a little more than 6 weeks after its IPO. SpaceX hit a new low of 107 this morning, down almost 53% from its high, but then it had this really terrific bounce off that low and ended up the day nearly 3%. That is a very positive pattern, people. Maybe some of the big sellers are cleared out. Still, even if you like SpaceX, I think it's probably pays to be patient because I expect to see some lower prices in the not too distant future, as I will explain. After peaking at 225 on its third day of trading, it's being viewed as a meme stock, a trillion dollar meme stock, SpaceX has sunk to 116 in change, practically in a straight line. Why has it been such an awful trader? Look, this is a rocket play with a big satellite internet business that I love. It's also a major data center operation and data center plays have been crushed over the past month. That said, it's not like there hasn't been any good news here. Early this month, the quiet with quiet period ended for SpaceX and most sellside analysts initiated coverage of the stock with 28 buy ratings. Seven holds just one sell. They're extremely bullish. And if you look at most of the whole ratings, their price targets are quite a bit higher than where the stock's currently trading. Kind of makes it a de facto upgrade. The key here is that we now have the consensus estimates for SpaceX future numbers. And those analyst projections, they look pretty darn good. The consensus estimates have SpaceX losing money this year, though they expect profitable quarters starting right now, the third quarter of 2026. Then they have the company reporting a modest profit of around.7 cents per share next year. Come 2028, Wall Street expects SpaceX to earn over $3 per share. With the stock now at around $116, that means it's trading something like 38 times the 2028 numbers. Now, look, I know that sounds uh crazy for some stocks, but you it's not particularly expensive for an elite growth stock run by the greatest investors of the century. so far. So if you believe these numbers, this stock's definitely getting cheaper as it comes down. And I like that. The question is, should you believe the analyst estimates? When you think of these projections, the analysts expect that a lot of the heavy lifting to come from SpaceX's AI division, which includes everything from its Colossus data center to its Grock AI patterns uh a platform a and other AI applications like Cursor, the AI coding tool the company's acquiring for $60 billion that everybody loves. They're expecting well all the people who write software. They're expecting solid growth from space business, genuine strength from Starlink, and then a revenue and earnings portion from the AI business. Is that reasonable? Well, this bullish outlook for the AI business is based on large part on two big deals that SpaceX announced in the weeks before its IPO. And they are really good deals. On May six, they announced this massive deal with Anthropic that has SpaceX renting compute at a cost of $1.25 billion per month. Then on June 5th, the company made a deal with Google, which has Google paying them $920 million per month for the same thing. put together, we're talking an additional $26 billion in annual revenue that came out of nowhere. When you build out data centers, you can rent out your excess computing power for a big premium. At least you can right now. However, those two deals can be cancelled by either party with 90 days notice. From my perspective, that makes this new revenue stream very tough to model because nobody's really locked in. And if you look at the bullish analyst estimates for 2028, they're clearly assuming we're going to see a lot more deals like these two. That's certainly possible, although there aren't many other companies with such deep pockets, and that's what I worry about. It's really a small group of stocks of companies that can do these deals. Next Tuesday though, we're going to get a glimpse into how the AI business is doing when SpaceX reports any color at all about the nature and durability of these kinds of agreements. Well, any indication that similar ones are in the works that could prop up the stock. What else we'll be listening to? Well, you might have heard that SpaceX had a successful test flight for its next generation Starship rocket la last Friday night. This was the 13th test flight and the first one since the IPO. That's key to the future of the space business. Finally, for the last segment, connectivity. We want to see continued progress for their Starlink satellite internet and mobile service. Regular viewers know that I love this Starlink business. It has excellent subscriber growth because it offers incredible service at a surprisingly low price, especially in Europe. But expectations are high here. So SpaceX really needs to impress especially since it's not known how clear how good the service is in urban environments. But beyond the earnings report, there are two big issues with owning this stock right now that I need you to know about and think about. First, I believe it's likely that Elon Musk may already decide to have SpaceX just buy Tesla and consolidate his publicly traded companies under one roof. Tesla's been doing terribly. It's just reported a weak quarter and the stock's down nearly 40% from its highs last December. Because SpaceX has a dual class ownership structure. If Musk wants to use it to buy Tesla, well, there really isn't anybody can stop them. Personally, I think SpaceX has a better mix of businesses than Tesla. So, I don't know if I love the idea. Second issue, the float. Remember, very few of SpaceX's shares actually trade on the open market right now. Currently, most of them are under lockup, but next Thursday 911.5 million shares will be released from the lockup, which will more than double the stock's float. By my math, SpaceX float will go from just under 5% of the shares outstanding to almost 12%. Maybe that's why there's been such a big short activity in the company. I can't tell you exactly what that means for the stock, but generally speaking, more supply does tend to result in lower prices. Even if they report a great court on Tuesday, I don't know if it can withstand the lockup expiration on Thursday. Unless the shorts come in and cover and maybe that will be the trampoline that you need. I don't know. Here's the bottom line. SpaceX has been a real dog since it peaked the third day after it became public. But I know there's a lot of interest in this one and a lot of faith in Elon Musk. And I like the way the stock went out today. Hey, I don't blame anyone for believing in him. I believe in him, too. Guy's got an incredible long-term track record. However, if you're really looking to buy SpaceX, you know what? Maybe buy a little, but I'm really begging you for the to kind of wait big if you want to go big for that first wave of lock up when insider selling to expire next Thursday. Be patient. Let it drag the share price lower before you pull the trigger. Boney's back after the break. Coming up, they form the foundation of most of our world. So, can aggregate stocks be the foundation of your portfolio? Kramer is digging in next. Yesterday I paid this real cool visit to CR. That's the largest aggress producer in North America. Rocks at their Mount Hope Quarry, not that far from here in northern New Jersey. And I spoke to CEO Jim Mter. This maker of rocks for infrastructure and construction, largely like gravel, has been a terrific long-term performer, up more than 80% since it switches primary listing to the New York Stock Exchange nearly 3 years ago. But the stock's down 17% year to date, mostly thanks to worries about higher oil, higher interest rates. We've seen similar pullbacks in Vulcan Materials, Martin Materials, the other two big aggregates companies. It's the big three. And that's why I think this group deserves a closer look. I'm always looking for things that are down that can go higher. You know, I don't care that much about the things that are flying. Remember, right now investors are looking for growth wherever they can find this as long as it's not only perfectly safe related to data center. People want diversification. I don't blame them. And I see an opportunity in the aggregates companies. They've been hammered by high oil prices because quiring stone consumes a ton of diesel. They've been hammered by higher interest rates because they make new construction more expensive to finance. Although, as we saw from CR yesterday, a lot of business that they have is road building and the government maintains the roads. Good customer. And oil's already plummeted back to the 70s and treasury yields are coming down too. So, that's not so bad. Plus, these companies all have major barriers to entry for the simple reason that rocks are really heavy and thus expensive to transport. You need local quaries wherever you are operating and getting permits to start a new one can test take years assuming you can even get a permit. Not a lot of company not a lot of homeowners want quaries next to them. That gives the established producers tremendous pricing power which is why their stocks have been such long-term winners. Sure the aggregates companies have some data center exposure. The rock can form the foundation of a data center campus. I saw a model of of how the the stuff that's really underneath a data center. It's pretty pretty intriguing because it's not just rocks, but you need their stuff. And you know what? Uh it can also work underneath a highway, a bridge, an LG facility, a warehouse, a housing development. That's where some really specialized rocks are. It's kind of diversified exposure. Enough AI infrastructure to provide upside, but enough diversification that one hyperscaler changing its capital spending plan won't wreck the entire business. CR reminded me of this opportunity when I visited yesterday, but historically, you know what? I didn't really know CR that well and I've been much more of a fan of Vulcan materials and especially Martin Marietta. So let's take them one at a time. I think is really valuable. Vulcan materials is the nation's largest producer of construction aggregates. Now this is the example I used in how to make money in any market to demonstrate what long-term compounding from a growth stock can look in an incredibly basic business rocks. Get this $1 invested in Vulcan on December 21st, 1925.$1 $1 would have grown to $393,492 by the end of 2023. So remember, it's yours. You give it to your kids, they inh heard it, maybe even goes further. And listen to that kind of thing. Okay, that's a big win. Now, it didn't happen because someone perfectly timed every housing cycle or recession or infrastructure bill. This is a testament to the staying power and long-term growth of the rock business and the earnings power of a well-run company when you hold it for decades. That's what we try to teach here on the show. Now, Vulcan reports tomorrow before the opening. We know the company executed well in the first quarter despite difficult environment. I'm optimistic even though this quarter may also be a tough one. And look, the stock is not cheap, especially compared to its peers. This one sells for almost 32 times this year's earnings estimate. That's like a tech stock. Uh versus 31 times for Martin Marietta, also expensive, just 17 times for CR, which is one of the reasons why I wanted to spend some time with them. So yes, you're paying a premium for Vulcan materials, but companies like these rarely look statistically cheap because the market understands the quality of the reserves and pricing power. Vulcan has repeatedly demonstrated over multiple decades that it can grow profitability through different environments. If rates eventually come down and housing recovers, Vulcan should have volume upside on top of the pricing and productivity gains it's already delivering. If tomorrow's quarter con confirms that volumes, pricing, and margins remain intact, I think we're going to get a nice snapback like we saw a lot of the snapbacks in today's session. How about Martin Marietta of materials, the country's second largest domestic area producer Martin? Now, they report Thursday and its previous quarter was strong, albeit not perfect. These guys been on the show a lot. The big story here is their agreement to acquire LUAST and now that is a North American uh company and it's the deal's big 13.5 billion in cash and stock. CO W came on CNBC to explain why Martin Mayor is making such a large bet on a major producer of lime dolomidic lime you like the dolommites and industrial minerals. The deal brings 20 quaries and production facilities, 45 distribution terminals and 1.8 billion annual sales. Lime starts with the same core acquiring skills as aggregates, but it serves a broader collection of end markets from steel manufacturing to wafer treatment, environmental applications, infrastructure, soil stabilization, and industrial production. There are no meaningful substitutes, limited import competition, yay, and enormous barriers to building new supply. And that's why Martin is willing to pay so much for this thing. It'll make them a heck of a lot more profitable, but also make them more diversified. But I I I I can't ignore the the risk here. Mart has a strong takeover record. They've done really good job. But these companies are long-term rollups. They buy assets repeatedly and sometimes they get the timing wrong. The was a terrific business, but Martin Marriott is paying a full price issuing a lot of stock and taking on substantial debt. That's worrisome. So, there's some execution risk and we also have to worry about the broader economy. That's the key difference between Martin Merida and Vulcan today. Vulcan offers the cleaner aggregate story with a focused portfolio, strong unit profitability, and less near-term risk at almost a similar multiple. Martin Mayor potentially has more upside, but the WA steel also means I think a little more risk maybe like kind of like the CR come uh that is buying, you make an acquisition and you just, you know, you say to yourself, are are these acquisitions a bridge too far if the economy goes well, if the economy doesn't do well? Plus, both companies remain hostage to the broader economy. There's real earnings risk when construction volumes decline. Whether it's poor public funding weekends or energy costs spike, but their earnings power is not as boom bust as it used to be. And that is why these stocks have been able to compound for so long despite periodically ugly construction cycles. And it's why they get such high price journeys, multiples, even though they make rocks. In the end, the three big aggregates names have pulled back hard. And after yesterday's visit at CR Quarry, I wanted to go over my two favorites in the group, Vulcan and Martin Marietta. Uh because they own scarce, difficult to replace assets that society simply can't function without. Roads need to be refurbished, bridges need to be built, factories, power plants, LG terminals, and yes, data centers all need foundations. We can't live without these rocks, and very few companies can do all those projects that I just mentioned. So the bottom line when I see Vulcan and Martin Marriott pulling back it makes me want to swoop in. This is a moment where we're looking to diversify away from data centers and I think that you could do a lot worse than the rock process process which have surprising growth. That said, don't go all in with the earnings coming this week and the macro environment is still uncertain. We got a Fed meeting tomorrow. I recommend putting both in the shopping list buying their stocks into weakness which you often get. These are all lasting companies with much bigger moes than you would expect for companies that in the end make stone. Not the most special of commodities. Let's go to Robin and Cali. Robin, >> hey Jim, is Sterling Infrastructure by at this time? >> Um, I I think that I know it got hit pretty hard. Um, I think it's a really really good company that that particular segment did go parabolic and when a stock goes parabolic, we're not quite sure where it's going to bottom. This one has almost taken out the uh beginning of its parabola. So, we're close to it, but down huge today. You got to wait a couple more days. Fulcan and Martin Maretta materials are rocks and they rock. All right. I think it's a buying opportunity that much more man money including my exclusive with steelmaker new core. Then we're seeing a major unwinding in a lot of former market darings. So what's going on here? I'm breaking down the moves and how to handle them and they're parabolic and oily calls rapid fire tonight's edition of the lighting round. So stay with Kramer. Look at the stock of New Coro. The nation's preeeminent steelmaker reported a better thanex expected quarter last night after already pre-announcing to the upside back in June. Not only did they deliver a top and bottom line beat, they gave very bullish guidance for the current quarter, too. In response, the stock deservedly shot up 7% today. It's now up 84% over the past 12 months. A steel maker. Some of that's uh because President Trump raised tariffs on steel and aluminum imports to 50% last year protecting Newport and its compadres from foreign dumping. Even when the war in Iran started, the stock kept marching higher. It's like nothing can derail this thing. So, can it keep running? Let's check in with Leon Talian. He's the chairman and CEO of Newor, a great American company to find out. Mr. Talian, welcome back to Bad Money. >> Thanks, Jim. Appreciate you having us. Okay. So, Liam, let me ask you, is this the greatest demand environment you have ever seen in your career at Newor? >> Yeah, it's funny. I shared that exact quote today on our earnings call, Jim. You know, I just crossed my 30-year mark with New Core, and I would tell you the demand drivers are unlike anything I've seen because they are as diverse, is wide, um, in terms of markets from military towers and structures, data centers um energy energy infrastructure, non-res construction, um, insulated metal panels and and towers, structures, all of them are at or near record backlogs. And so it is absolutely unequivocably a demand environment like I've never seen before. >> And would there be a demand environment like this if we had the old uh rules on tariffs where there really wasn't you could pretty much uh they looked the government looked the other way when uh other countries tried to flood our imports. >> Look, you and I have talked about this for a long time. We are in a global excess over supply situation and nations around the globe are trying to find a way to dump and subsidize their steels to land on the shores of the US. What we've seen in the current administration and I got to applaud applaud uh President Trump or USR Jameson Greer um you know Secretary Glutnick they understand and it's really to me an investment in American manufacturing and the steel industry. But to answer your the the short answer to your question is yeah, I think we would. Look, imports are at the lowest levels I've seen in my 30-year career. At the same time, the demand drivers are unlike anything I've seen. So, you've got, you know, the the dual factor in place today. And quite frankly, New Cor's at a position at the tip of the spear in almost every one of those instances to win. We have the capability, the volume, the cleanliness, the grades, the um just the differentiated capability to reward our shareholders handsomely. And so I love what our stock's been doing, but quite frankly, we're just getting warmed up. Jim, not everything we've invested in is yet online. And that's coming by the end of this year. We will start it up. West Virginia, the largest investment in the history of Newor at $4 billion invested in Mason County. uh when that comes online, you're going to see a through cycle performance that Newor has never achieved before. >> Now, do you think um that there is a inflation problem in the country? And could you try to estimate whether there's any real inflation in steel despite the tariffs? >> Look, I yeah, I think there's some. And you know when it comes to overall GDP to steel demand, well you know this is better than anyone. It is a commoditydriven business. It is supply and demand. Pricing is going to be dictated simply by the consumer. Now when you pull out five or six million tons of steel out of imports that were flooding our nation, man, it creates a very very balanced level playing field where New Core and other steel producers can win. And again, I think we are the best position in our industry to take full advantage of that. >> You know, it's funny. You got to go back to Hamilton. You really do. I mean, Hamilton said, "If you do the tariffs, what'll happen is our country will thrive and we'll build plants." Now, that how many people have you put to work since we decided to take this industry seriously and not have it destroyed by by imports. You know, in the last seven years, Jim, we've created about 9,000 direct new core jobs and about 30,000 indirect jobs through contractors and onampus facility partners. So, we continue to to reward the communities where we live and work. We're so excited about the investments we made in Lexington, North Carolina. again, Mason County, West Virginia, Kingman, Arizona, the new Galve lines at Berkeley and Crawford'sville, what we're doing in CSI, the investments in Gallatin, and almost every division that continues to be reinvested in our three towers and structures facilities, two of which are running now, the third that'll start up early in 2027, are all going to create again the highest lift Newor has ever seen. >> Now, what do you want to be done uh with USMCA? I know the Trump administration has opted not to renew it. I thought it was doing okay for you. I mean, is there something that could be better? >> Look, I think there's a few things you can tweak, right? Could we take rules of origin and content for automotive up a little bit? Yeah, I think we can do that. But 232, I agree with you, was a good vehicle. um except when you see violations of 3 4,000% of um um you know products coming across from Canada into the country or from Mexico into the United States. Uh USMCA wasn't the problem when we had people that were violating it and not um creating outcomes that were going to create a more level playing field as a problem. So I think today you're going to see a year-to-year review that actually will tighten those things up. Again, I think we have a USR and Jameson Greer that understands this very well. And I think you're going to see um that the the country will win as a benefit uh to that annual review process. >> Now, Leon, the last thing I want to ask is I deal with a lot of these uh so-called hyperscalers. And they go into a town and they say they're going to create all these jobs and don't worry about a thing. It's really going to make your neighbor better. I always ask him, do you ever think about like what Newor does when they go in ahead of time and make sure that it's the right place for the people and that you're the right guys for the people? No one's Has anyone ever contacted you? Of all the companies I've said they should talk, you should talk to Leon. He knows how to do it. Have any of the guys called you? Every one of them I've mentioned it to. you know, we have we have a great relationship with uh many of the hyperscalers and in the very biggest ones. You know, the the I guess Jim, for me, the most gratifying part of that is when I get to go to those plants, when I get to go up and I just was up at our plan West Virginia to see the lives that are being impacted, to see the communities change where we can come in literally at the grand opening, write a million-dollar check to the school system, supply the food banks and food pantries, reinvest in that community, and then hire locally, right? jobs that we're paying $130 to $150,000 a year annually. We take great care not just of our team but the communities that we live in and that is going to continue a long time in our future and how uh how we we operate and the things that we do and that we value. >> Well, I hope I know a lot a lot of them watch. I hope they listen because you there's one there's a good way to do it and a not so good way to do it. And I know you have always done it right. You and your predecessors have always done it right because that is the new core way. That's Leon Talion. He's the CEO of Newore NUE. Leon, it's always great to see you on the show. Thank you. >> Thank you, Jim. >> May be back. >> Coming up, you've got questions, Kramer's got the answers. Get charged up for a fast fire lightning round next. It is time by just play the sound and then the lightning round is over. Are you ready? Let's start with Mike and Michigan. Mike >> Booya Jimbo. >> Booyah. >> Big time. Long time. >> I'm all over him. H I Ms. My >> Well, I know controversial stock. I really prefer I just own Willie. Let's just go for Let's go for the gold. Own Willie. Uh let's go to Phil in North Carolina. Phil, >> hey Jim, how are you doing today? >> I am doing well. How about you, Phil? >> Jim, I'm doing I normally tell you I'm doing fair to Midland, but I'm doing better than that today. I'm doing better than that. And I just want to give a quick shout out. I have a granddaughter that goes to college up in App State there in Boone, North Carolina. And she has her friends listening to you every day almost at 6:00. >> That's what we're looking for. Younger people will inherit. We know that from the wedding I was at this weekend. Let's go to work. >> Yes. Her name is Lily. And she says that they rather listen to you more than listen to that Tik Tok thing. But anyway, >> Well, there you go. There you go. So we are we both have separate accounts that I manage for her and this doc is going to report August 4th. Now we both it's important to know that I've taken out our cost basis uh >> on both accounts. >> Can't lose. >> She's Lily is 20. Should I let her and this is it's going to report like I said August 4th. Should I let her have the just keep her shares and maybe take some of mine out? We're doing very well with it. >> What stock is that? >> Okay. The stock is Arista Networks. >> Oh, I really like Arista. And Rrista's not that dependent entirely on the data center. It's got a lot of things going for it. I think Arisa is terrific. I wish she'd come back. Jree would come back on because I think she's just crushing it right here. Let's go to Betsy in California. Betsy. >> Hey, Jimmy. Long time and the one of the most important lessons I learned from you is not only follow the stocks and follow the money, follow the CEOs. And Jim, you know, when I when Jim Conroy was at Booth Barn, they were flourishing. Okay. Boot Barn is in the toilet. Okay. Booth year to date is negative 927%. >> Disappointing, right? Exactly. But Ross Stores, which is my fave in this space because of >> I totally agree. Ross Stores and he has done a great job and it was good to begin with, but now it is just terrific. I like Ross doors. And that, ladies and gentlemen, is conclusion of the NIGHT ROUND. >> The lightning round is sponsored by Charles Schwab. At the beginning of the show, I talked about how some stocks really can get hard hit. We've had some true destruction here and not just in the disc drive memory stocks, but also in stocks like Corning after some softer guidance or Intel last week after good guidance. We keep buying Intel for the child trust, but it's traded 142 at the end of June and now it's at 86 after that monster good quarter and solid forecast. I thought the stock would handle the onslaught well. I was clearly too saggling. I still think Intel's a terrific turnaround story. Unfortunately, this market does seem to care all about my view on that one. What's going on here? We're dealing with what something that I have chronicled multiple times, the undoing of a parabolic move. This market's seen the most parabolic moves I can ever recall. That's where you have a stock that's made a rounded curve and then goes almost straight up, vertical, relentless, delicious. Just see one as it's created over multiple days or even weeks is breathtaking. They happen so rarely that yet we we've had dozens in the last year all thanks to the advent of the data center. I always advocate take something off the table when a stock goes parabolic and parabolic and parabolic cut cut. That's what my travel trust did with both arm holdings and corning. Although we did lease some corning on just because I felt like we were playing with house and money. There's a problem with these moves though. Most good stocks go over time like this stairst step fashion. That's what I like. If there's a setback, it's likely that stock goes down to the previous stair, maybe below that a little bit. Kind of like a mini game of shoots ladders. It might be in the penalty box for a bit, but if it any good, it can begin to rally on some good news, maybe lower oil prices, lower rates, and the war, I don't know, better execution. It can make a comeback. But a setback with a parabolic move, well, these are disasters and they lead to panicked confusion. Take Sandis, which is probably the most undervalued at one point. Here's a stock that's fallen from $2,354 to $1,96. That is a beatdown that is worthy of cover lag in Rocky 3. Even after that decline, though, Sandis is up 361% year to date. Now, you can't really call up a bargain a stock that's up that much and the numbers haven't even been cut yet. They're still hoping that a lot of these buyers still think the numbers are going to be made. Charters would tell you that the stock of Sanders is more dangerous here than it was when it was higher because a stock that goes down after a parabola has been busted rarely stops where the parabola began. And that's what's happening right now. There are so many broken parabas that people are just fleeing because they can't figure out what anything's worth. Plus, the latest quarterly reports from all these stocks were blowouts. And honest to God, shocking blowout, yet they still went down. So, even if another one of these companies reports a terrific quarter, can it really turn things around? Look, we saw Seagate report a fantastic quarter this very evening after it fell hard since the last one. So then we got to ask, can the quarter resuscitate the stock? I don't know. I think it's going to be difficult as some owners might just want to get into another kind of stock knowing that you almost never see a second parabola after the first one's demolished. I can't think of one. That's why I try not to recommend parabolic stocks. I always say you should trim them on the way up. perhaps stopping when you're playing with Al's money like we did with Corning and they but they always do get wiped out in the end like it did with Corning. My advice, don't be tempted by these declines. A post parabolic stock may look cheap to you, but the shareholders are all trying to figure it out. They're trying to figure out how to get out alive. They'll sell on any uptick. Some bought using borrowed money and are one stop away from the poor house. Instead, I say go for the stairstep stocks. They won't seem to make you as much money as fa as fast as a stock running a parabol par a parabolic move. But notice notice the word seen. Remember, you don't make money until you sell. And the vast majority of people who are in a parabola never let go. They can't part with rockets even after the rockets are spent. Those people are now weak shareholders. It's not the companies themselves. It's the shareholders that you should be worried about. I say you stay away from them. I like to say there's always more bull market summary at Psych just for you right here. Man money. I'm Drew Kramer. See you tomorrow. All opinions expressed by Jim Kramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet, or another medium. 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