Cramer's Morning Take: DuPont 11/5/24

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. Well, happy election day.

The machine initially didn't work. I stayed until it was done, because it's an honor to vote in this great country, even as I was petrified that I was going to miss the opening. Now, today, we have a good rally going. Why do we have a good rally going? I actually think this is a relief rally in anticipation of the relief of being done in the election, because everyone is tired of it and beleaguered, and people feel that if we just got it over with, things will get better.

Jeff Marks (0:37)

Yeah, I'm sure many are looking forward to that. Still perhaps a toss up on who might win and how the market will react, but we're staying the course. No real changes in either direction.

Jim Cramer (0:48)

But it's interesting what happens if you stay the course. You get a DuPont and a DuPont. Look, we battled DuPont. It was in the 60s, okay?

Jeff Marks (0:58)

Yes, I do remember. A horrible pre-announcement.

Jim Cramer (1:02)

And we bought it. Now, I bought it because Ed Breen, who runs the company I've known for 30 years. Ed Breen basically said, look, line in the sand, Jim, we're going to make this back. We're going to do it. And when you have someone who's got that level of conviction, it really helps.

Jeff Marks (1:20)

Yeah, no, they're delivering on everything they said. It was a return to organic sales growth up 3%, operating EBITDA beat a big earnings number, $1.18 versus $1.3 expected, good free cash flow. This is really important. They moved up the breakup timeline originally when they announced it in May. Remember, they're splitting it to three companies. They said it was going to take 18 to 24 months. Well, now they're saying 12 to 18 And why that matters, I think, you know, why the stock hasn't really gone higher or closer to perhaps what we'd argue that some of the parts is it's stuck in a spin purgatory right now. But if they can get this, if they can execute quicker on that timeline now, tracking towards December 2025, that should bring more people back into the stocks, into the stock electronics and industrials better than expected, up 10 percent. Volume growth, semi-sales, That's in India, Taiwan, semi-sales. Yes, semi-sales up 20 percent. They are crediting a lot of that to AI demand, the semi-recovery, interconnect solutions, that's consumer electronics, upload double digits. Just a lot of strength across the board, water improving, medical packaging. That has been weak, but nice sequential growth there.

Jim Cramer (2:27)

How about water improvement in China?

Jeff Marks (2:29)

Yeah, it was a good quarter from China, actually, across the board. That was their strongest region, was Asia Pacific.

Jim Cramer (2:34)

Well, I just want to say to you, Jim, I feel there's a division buried in this company that would make a Pentair happy or a Xylem happy.

Jeff Marks (2:43)

Yeah, water.

Jim Cramer (2:43)

It's the water division. I don't think that they are wedded to any strategy other than enhancement for shareholders. So if one of those two or both of those two has got involved with, they're not going to say, whoa, not until we split up. I think they'll do it. Now, David did point out the tax basis, got to worry about that. But I think the company is inclined to be able to take the money and run water.

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SPEAKER_3 (3:21)

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