Raphael Stevens

Monday – Friday, 6:00 – 7:00 PM ET

It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

Boxed: “We are being very harsh on companies that came public via SPAC, even ones we like, so I’m just going to have to say I’m withholding.”
Graphic Packaging: “I happen to like the packaging business. It’s where I’m from, and they make noncyclical packaging, which is really pretty good.”

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Monday – Friday, 6:00 – 7:00 PM ET

CNBC’s Jim Cramer said Wednesday he sees promise in Coterra Energy, a natural gas-focused firm formerly called Cabot Oil & Gas Corporation.
“When you’re picking among oil and gas exploration and production companies, I think this Coterra Energy absolutely now belongs on the menu,” Cramer said.
However, the “Mad Money” host noted he prefers Devon Energy and Pioneer Natural Resources at the moment.

CNBC’s Jim Cramer said Wednesday he sees promise in Coterra Energy, a natural gas-focused firm formerly called Cabot Oil & Gas Corporation.
“When you’re picking among oil and gas exploration and production companies, I think this Coterra Energy absolutely now belongs on the menu,” said the “Mad Money” host, whose favorite E&P firms at the moment are Devon Energy and Pioneer Natural Resources.

“I prefer oil to natural gas, so I’d still prefer Pioneer or Devon,” Cramer said. However, he added, “if you like natural gas more or something changes that hurts oil more than gas and you think this problem with Germany is intractable and Europe needs our natural gas, Coterra is the one you need to buy.”
Coterra, in its current form, officially came together Oct. 1 through an all-stock merger involving Cabot and Cimarex Energy. About 75% of its revenue comes from natural gas operations, Cramer noted.
“Coterra’s only run from $14 and change at its August lows to just under $23 today. That’s a roughly 60% gain, but for reference, Devon has more than doubled over the same period,” said Cramer, whose charitable trust has a position in Devon.

In this photo illustration, a Coterra Energy Inc. logo is seen on a smartphone screen.
Pavlo Gonchar | SOPA Images | LightRocket | Getty Images

“I think Coterra has some room to play catch-up here, as the stock’s still up only a few bucks from where it was trading when the big merger was announced last spring,” Cramer said, despite the fact oil and gas prices have surged since then.
Coterra also is committed to returning capital to shareholders, adding to its investment potential, Cramer said. He estimated its dividend yield could be around 7%, given free cash flow estimates and projected payout ratios. That would fall between Devon’s 6.3% yield and Pioneer’s 7.75% yield.

However, Cramer said Coterra does have a lower enterprise multiple compared with Devon and Pioneer. “It doesn’t hurt that they’ve got the best balance sheet of the three,” he said. “This one is so good.”
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Monday – Friday, 6:00 – 7:00 PM ET

Alphabet shares may get more attractive to retail investors because of the company’s planned 20-for-1 stock split, CNBC’s Jim Cramer said Wednesday.
The “Mad Money” host stressed that stock splits are purely cosmetic and do not impact a company’s underlying business.
Smaller investors, in particular, may welcome seeing a lower price per share in real U.S. dollar terms, Cramer said.

CNBC’s Jim Cramer said Wednesday he expects retail investors will flock to shares of Alphabet in greater numbers after the Google parent completes its planned 20-for-1 stock split.
“If the geniuses at this company who know us better than we know ourselves say split, then I think we’ll end up welcoming a whole new cohort of investors to the market, one that’s been missing out for years: people with enough disposable cash to buy 10 shares of a $150 stock, but not enough money to buy one share of a $2,900 stock,” the “Mad Money” host said.

Alphabet announced the stock split on Tuesday at the same time it reported better-than-expected earnings and revenue for its fourth quarter. The plan, which requires shareholder approval, would go into effect in July. Alphabet shares jumped 7.5% in Wednesday’s session.
Stock splits are purely cosmetic and do not change a company’s underlying fundamentals, Cramer stressed. However, the former hedge fund manager said that does not mean they’re meaningless.
“Every study I’ve ever seen tells me that when stocks split, they go up big on the announcement and then stay up. I know that makes no sense mathematically … but the stock market runs on emotion, not on math,” he said.
Smaller investors, in particular, may welcome seeing a lower price per share in real U.S. dollar terms, Cramer said. While brokerage apps have introduced innovations that let clients buy fractional shares, Cramer said he believes some retail investors want to own entire shares. For those who do, Alphabet’s closing price of $2,960 on Wednesday may be out of reach, he contended.
“Individuals who don’t want the clumsiness of fractional shares … will eagerly start buying when they finally get a chance to pick up 10 shares of a juggernaut stock like Google,” Cramer predicted.

Cramer also said he thinks Alphabet management announced the stock split after careful consideration of its potential impact.
“Given what this company’s brainiacs know about … consumer preferences, this is a decision that will have very wide implications. Alphabet knows you better than you know yourself — they have your search history,” Cramer said. “So if they think a 20-for-1 stock split is a good idea, they’re going to be right.”
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It was the second time in a week that travelers were hit with mass cancellations due to winter weather.
Close to 3,000 flights were canceled for Thursday alone.
The two major airports serving Dallas and Fort Worth were among the most affected.

Travelers wait at the check-in counters of Southwest Airlines at Dallas Love Field Airport in Dallas, Texas, the United States, Dec. 17, 2021.
Guangming Li | Xinhua News Agency | Getty Images

Airlines canceled thousands of flights for the second time in a week ahead of a massive winter storm that’s forecast to impact areas from Texas to New England.
More than 2,200 U.S. flights were canceled on Wednesday and nearly 3,000 scheduled for Thursday, according to flight-tracking site FlightAware.

The National Weather Service said heavy freezing rain is expected to accumulate from Texas through the Ohio River Valley as well as heavy snow through the Upper Midwest.
Southwest Airlines canceled more than 470 Wednesday flights, or 14% of its schedule, and 805 flights, or 23%, scheduled for Thursday, according to FlightAware. It suspended flights at its home hub of Dallas Love Field on Thursday. American Airlines canceled more than 537 mainline flights scheduled for Wednesday and Thursday. More than a third of the departures scheduled for Thursday from Dallas/Fort Worth International Airport, American’s biggest hub, were canceled.
Airlines including Southwest, American, Delta and United said they would waive fare differences for travelers who plan to rebook flights in the coming days because of the storm.
Last week, airlines scrubbed more than 4,000 U.S. flights due to another storm that hit the Northeast. Carriers generally cancel flights ahead of large weather systems to avoid passengers and crews getting stranded at airports, making it easier to reset the operation the following day.

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Like most ultra-luxury carmakers, Ferrari had a strong fourth quarter and 2021, boosted by the massive wealth creation during the pandemic.
The Italian company delivered a record 11,155 cars last year, up 22% from 2020, and said its order book is “the strongest ever,” stretching into 2023.
Revenue increased 10% in the quarter to 1.172 billion euros ($1.32 billion) and Ebitda grew 7% to 398 million euros ($450 million).

Ferrari logo
Dean Mouhtaropoulos

Ferrari has a lot riding on its much-anticipated and hotly debated SUV, called the Purosangue, to be unveiled later this year.
Ferrari CEO Benedetto Vigna, who has been test-driving the top secret new car, said the Purosangue is “astonishing.”

“I’ve driven it several times in the hills of Maranello,” Vigna told analysts and reporters on an earnings call Wednesday. “And I can testify that the driving experience is really astonishing.”
The famed Italian carmaker has been late to the high-performance SUV market, following Porsche’s 2002 launch of the Cayenne and Lamborghini’s successful launch of the Urus in 2017. Aston Martin launched the DBX SUV in 2020 and this week unveiled the DBX707, a 697-horsepower SUV developed on Formula One tracks.
Only a few spy photos of disguised Purosangues have emerged online and the details of the powertrain, price and performance remain a mystery.
Ferrari purists oppose any effort to put the “prancing horse” logo on an SUV or crossover, saying it will dilute the brand and the company’s racing tradition. To expand its market and please its current sports car base, industry watchers say the company will have to launch an SUV that looks and feels like a Ferrari but have the added weight, features and size of a family touring car.
“The Purosangue will exceed our customer expectations,” Vigna said on the call.

Like most ultra-luxury carmakers, Ferrari had a strong fourth quarter and 2021, boosted by the massive wealth creation during the pandemic and soaring values of stocks, crypto and other assets. Ferrari delivered a record 11,155 cars last year, up 22% from 2020, and said its order book is “the strongest ever,” stretching into 2023. Revenue increased 10% in the quarter to 1.172 billion euros ($1.32 billion) and Ebitda rose 7% to 398 million euros ($450 million).
Despite higher costs for aluminum and other materials, the company’s higher prices and more expensive models helped boost Ferrari’s profit margins for 2021 to 35.9%, which is more akin to luxury-brand margins than carmakers’ results.
All parts of the world saw double-digit sales growth, with shipments to the Americas region up 22% and shipments to China, Hong Kong and Taiwan nearly doubling.
Along with the SUV, Ferrari is also gearing up for the shift to electric vehicles. The automaker said it aims to be carbon neutral by 2030 and is developing a range of hybrid and electric models. Its first fully electric vehicle is due for release in 2025.
Ferrari launched the V-8 hybrid SF90 Stradale, which sells for $520,000, in 2019, and recently unveiled the 296 GTB with a plug-in V-6 powertrain. Meanwhile, the company touts its new V-12 supercar, the $2.25 million Daytona SP3, for its more traditional clients.
Vigna, who joined the automaker last year from STMicroelectronics, was also asked during the call about Ferrari’s plans for the metaverse and non-fungible tokens, which are viewed as branding opportunities for luxury companies. He said it “deserves our attention,” but didn’t offer any specific details.
“It’s important that we look and see how new technologies can help our brand,” he said. “For sure, the digital technologies, Web 3.0 and using the blockchain and NFTs is an area that can be interesting for us.”

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More than half of the world’s ocean surface has surpassed historic extreme heat thresholds on a consistent basis since 2014, according to a new study by the Monterey Bay Aquarium.
The heat extremes, driven by climate change, put critical marine ecosystems like coral reefs, seagrass meadows and kelp forests at risk of collapse.
“These dramatic changes we’ve recorded in the ocean are yet another piece of evidence that should be a wake-up call to act on climate change,” said Kyle Van Houtan, leader of the research team.

A diver checks the coral reefs of the Society Islands in French Polynesia. on May 9, 2019 in Moorea, French Polynesia.
Alexis Rosenfeld | Getty Images

More than half of the world’s ocean surface has surpassed historic extreme heat thresholds on a consistent basis since 2014, according to a new study by the Monterey Bay Aquarium and published in the journal PLOS Climate.
The heat extremes, driven by climate change, put critical marine ecosystems like coral reefs, seagrass meadows and kelp forests at risk of collapse and threaten their ability to provide for local human communities, the researchers found.

“These dramatic changes we’ve recorded in the ocean are yet another piece of evidence that should be a wake-up call to act on climate change,” said Kyle Van Houtan, leader of the research team during his tenure as chief scientist for the aquarium. “We are experiencing it now, and it is speeding up.”
Researchers conducted the study by mapping 150 years of sea surface temperatures to find a fixed historical benchmark for marine heat extremes. They then analyzed how much and how often the ocean surpassed that heat benchmark.
Researchers discovered that more than half of the ocean saw heat extremes in 2014. The extreme heat trend continued over the next several years and reached 57% of the ocean in 2019, the last year measured in the study. By comparison, only 2% of the ocean surface saw such extreme temperatures at the end of the 19th century.

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“Today, the majority of the ocean’s surface has warmed to temperatures that only a century ago occurred as rare, once-in-50-year extreme warming events,” Van Houtan said.
This “new normal” of extreme heat across the majority of the ocean’s surface highlights the urgent need for humans to dramatically curb greenhouse gas emissions from fossil fuel production, the main driver of climate change, researchers warned.

Scientists have warned the world has already warmed about 1.1 degrees Celsius above preindustrial levels and is on track to see global temperatures rise 2.4 degrees Celsius by the end of the century.
Global ocean temperatures have warmed every year since 1970, and marine ‘heatwaves’ have doubled in frequency and have become longer and more intense, according to a 2019 special report by the Intergovernmental Panel on Climate Change.
Rapid ocean warming, which has prompted a drop in fish populations across the world, threatens coastal communities, fishing economies and those in polar and high mountains regions.
“Altering ecosystem structure and function threatens their capacity to provide life-sustaining services to human communities like supporting healthy and sustainable fisheries, buffering low-lying coastal regions from extreme weather events and serving as a carbon sink to store the excess carbon put in the atmosphere from human-generated greenhouse emissions,” Van Houtan said.

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Shares of Electric Last Mile Solutions plummeted by more than 50% on Wednesday the EV start-ups chairman and CEO resigned.
ELMS CEO James Taylor and Chair Jason Luo stepped down following an internal probe into share purchases made by the co-founders.
The controversy and executive shakeup for ELMS is the latest for EV start-ups that went public though SPAC deals.

The ELMS Urban Delivery, anticipated to launch later this year, is expected to be the first Class 1 commercial electric vehicle available in the U.S. market and will be produced at the Company’s facility in Mishawaka, Indiana.
Electric Last Mile Solutions

Shares of Electric Last Mile Solutions plummeted Wednesday by more than 50% after the EV start-up’s chairman and CEO both unexpectedly resigned.
The company late-Tuesday said ELMS CEO James Taylor and Chairman Jason Luo resigned from their positions, effective immediately, after an internal probe of share purchases made by the co-founders before it went public through a special purpose acquisition company in June.

The controversy is the latest for EV start-ups that went public though SPAC deals. Other problems have led to similar executive outings as well as investigations by the Department of Justice and Securities and Exchange Commission.

Shares of ELMS were down by as much 53% during intraday trading Wednesday before closing at $2.71 a share, down by 51.5%.
ELMS said an internal investigation by a special committee of the board found that shortly before the company announced an agreement to go public in December 2020, some executives, including Taylor and Luo, purchased equity at substantial discounts to market value without obtaining an independent valuation.
The stock was downgraded by several equity analysts Wednesday including Cowen’s Jeffrey Osborne and D.A. Davidson & Co.’s Michael Shlisky. Both cited the loss of experienced executives rather than any internal problem with the company for the downgrades.
ELMS declined to comment more about the investigation outside of its press release and a public filing to the SEC.

Taylor and Luo will maintain consulting roles with ELMs, according to the release.
Board member Shauna McIntyre, a former chief of staff at Google’s consumer electronics division, was named interim CEO. Brian Krzanich, former CEO of automotive retail software provider CDK Global, was named chairperson.
– CNBC’s Michael Bloom contributed to this report.

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