November 14, 2018

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Earnings may make or break how Fed approaches rate hikes

Earnings may make or break how Fed approaches rate hikes
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Cramer is tired of high-performing companies getting the runaround from investors after reporting strong earnings.

“We’ve seen so many companies report great numbers this quarter and the market has yawned or even trashed their stocks for no good reason, other than misperception,” he said.

Using Norwegian Cruise Line Holdings as an example, Cramer pointed to its healthy results, as described by the cruising giant’s CEO on “Mad Money.” But investors have all but given up on the stock, which is down over 8 percent for 2018.

“It’s being viewed as a cyclical company with a boom-and-bust stock, and everybody’s acting like we’re headed into a bust. I think that’s plain wrong,” he said, noting that all of Norwegian’s ships travel fully booked and that the company has already booked 65 percent of its rooms for 2019. “How can that be a cyclical company?”

He found that the skeptics were wrong in most of their criticisms: the cruise operator is raising prices, not keeping them flat; boosting capacity to match demand; drawing younger customers and benefiting from lower oil prices, he argued.

So, rather than labeling Norwegian a “show-me” stock, investors should wake up to the idea that the company has “shown” and its stock “should be bought,” Cramer said. “Enough already.”



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