Cramer's Morning Take: Coterra Energy 6/10/24

Jim Cramer (0:02)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

Jeff Marks (0:08)

I had a really big week here in June in terms of events. There's a few big ones today with Apple, WWDC, but you also have CPI Wednesday, a Fed meeting Wednesday as well.

Jim Cramer (0:18)

These are all events that are very worrisome to a lot of people. And yet, I'm saying stay the course.

Jeff Marks (0:24)

Yeah, absolutely. I mean, look, the economy, strong jobs number Friday, but maybe you've seen a little bit of a slowdown on the manufacturing and industrial side. So we'll see. There's a lot of different inputs.

Why not just wait to what the Fed has to say?

Jim Cramer (0:40)

Yeah, and I think the one thing that we have to be mindful of, nat gas, people look at oil. Oil's not been that good. But nat gas is on fire. Now, that does matter, because Coterra is the one that we selected because it can balance ship between nat gas and oil. Now, I know that's a low, you know, this is a micro situation at the top, and we usually talk macro about it. This can go much higher.

Jeff Marks (1:05)

Yeah, I mean, look, nat gas above 3 This is the highest level nat gas has been since January.

Jim Cramer (1:11)

Right, this reflects $2.

Jeff Marks (1:13)

Yeah, so it's interesting because at the beginning of the year, they shifted away some of their investment from nat gas to oil. Market is more well.

Jim Cramer (1:21)

But less optionality.

Jeff Marks (1:22)

For sure, they could always switch back.

We'll see. That's something to note in the conference calls ahead from Coterra. But it's our one oil position we have been buying into on some weakness.

Jim Cramer (1:33)

Right, I do like the oils. I was hoping they would come in and kind of equal with the fact that the oil prices come down.

We have to address the Nvidia split because we have a lot of Nvidia. And I would tell you that people have to understand that there's usually profits taken. I think a lot of people are probably confused. But day one is people who got stock and say, wow, I can't believe I have so much stock in Nvidia. Let me take three off.

Jeff Marks (1:58)

Right, especially after a year-to-date run of 140 percent. And if we were to zoom out even further, an even bigger run, and especially if you go back to when you name your dog Nvidia.

Jim Cramer (2:09)

2017

Jeff Marks (2:10)

Yeah, so I guess that's the psychology around splits, right? They rally ahead of it. And then maybe you see some one-day weakness on the day after.

Jim Cramer (2:19)

But I would point out that while there are not that many 10-for-1 splits, it's a clearing event. You get these people who sell, and then the buyers overwhelm the sellers. But not day one.

Day one is just joy and victory.

Jeff Marks (2:32)

Yeah.

Jim Cramer (2:35)

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