Cramer’s Morning Take: Emmerson Electric 12/4/23

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Jim Cramer (0:33)

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

Let's talk about Estee Lauder as an example. Now when you see Estee Lauder going up like this, your first think is, hey, maybe they're talking to Bernard Arnault, maybe there's a deal with L'Oreal. Or maybe it's this low-quality move that Footlocker's having.

Jeff Marks (0:54)

Yeah, Footlocker doesn't jump double-digit percents off of...

It's the same type of theme we're coming around. So it's nice to see because those have obviously been the stocks that you've been hurt by this year. So it's nice to see them starting to come back to life.

Jim Cramer (1:10)

But this speaks to about something we have to teach for a second.

We have some stocks that we're not crazy about, but we didn't want to just blow them out because we're not crazy. We wanted to wait till there's a better time. Now, this is something we did with Emmerson, okay? I was very upset that Emmerson bought National Instruments. It's just doing okay. I want that cash for something that's better. So we... Now, look, should we... No, we got a little sum there. But what bothers me is I can't be two-faced. I can't... Which, by the way, is one of the few things that's selling well for us to...

I can't be two-faced to you.

I know that the Emerson deal was bad. So then Emerson goes all the way up, we sell some. It comes down. Look, do I have stocks that I'd rather own than Emerson? Yes.

Jeff Marks (1:59)

Yeah, and that's what we're kind of planning out here. So because we're so overballed, looking for something to sell. Sold the Emerson.

When it came down after the quarter, didn't like it, said our plan was to sell into strength, but the stock was too cheap to sell down here. It's rallied seven bucks and cents, so we're selling it. And we'll use that cash to buy Eaton, which has much better growth prospects.

Jim Cramer (2:20)

Well, okay, that's where I was getting to. This money is our Eaton money.

Jeff Marks (2:23)

Yeah.

Jim Cramer (2:25)

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