Cramer's Morning Take: Stanley Black & Decker 10/29/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

Jeff Marks (0:10)

You had Larry Fink, CEO of BlackRock. He was saying at a panel this morning in Saudi Arabia, he thinks there'll be at least 25 basis points cuts before the end of the year. But just due to this greater embedded inflation in the world, interest rates may not go as low as what people are forecasting, which certainly makes a lot of those stocks that need lower rates struggle, especially because there's a lag effect too, right, between when the Fed cuts and when you actually see the benefit. But why don't we talk about, Stanley, organic revenue down...

Jim Cramer (0:41)

Well, I was very disappointed. I was very disappointed in the market's reaction to it, because what the market is saying is, Jim, you are too bullish. You get your stock up here, you don't take anything along with this. This is conviction.

Conviction can never be substituted in a treacherous market for discipline because now we're in an indefensible position. We can't buy it here because it's not down enough from where we sold some stock, which was 95 So now we're in limbo, and in limbo is not a position of strength, it's a position of weakness.

Jeff Marks (1:10)

So you wouldn't buy it down 11.5? You can't.

Jim Cramer (1:12)

It's too close.

Jeff Marks (1:14)

Okay.

Jim Cramer (1:14)

But we can't. We're frozen. Would I buy some that we sold back at 95? That's a puric victory, maybe because it yields 3.5 and therefore it's a competitive situation. Should it be down this much? That's a stupid question, Jim. That's the kind of question you asked in 1979, your mother. The fact is it's down, and it's down because people are not going to forgive a company that doesn't make the revenues. DR Horton's a very good company, and it's down huge because they didn't make the revenues. So what we have to do is decide, okay, is this going to be Danahurb, which has declined pretty much endlessly? Is it going to be Honeywell, which has declined pretty much endlessly? Is it going to be Constellation Brands, which has declined pretty much endlessly? And therefore, what you have to do is say, when will it stop declining? And the stocks tell you when they're stuck. This will stop declining when it bounces. Now, I would say it shouldn't be down this much, but the fact is, it did not do the numbers and it did not execute correctly.

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SPEAKER_3 (2:39)

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