Cramer's Morning Take: Starbucks, P&G 12/5/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

At P-Gym, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialized across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with P-Gym, a leading global asset manager.

Jim Cramer (0:28)

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

Jeff Marks (0:39)

And then you have Starbucks down 12 straight days, dating back to November 17th.

I looked back, the Wall Street Journal published on the 19th. That was when they said luck and coffee has overtook Starbucks as the largest coffee retailer in China.

Jim Cramer (0:56)

That's when it happened.

Jeff Marks (0:57)

But it's just been straight down after, what was a terrific quarter, margin expansions?

Jim Cramer (1:01)

I know, Luxman R. Simmons told me that you cannot compare luck into Starbucks. Starbucks is premium there, and luck is below Duncan. And I think that this is an opportunity.

I know that we've seen periodically stocks have great quarters and then come back down. This is highly unusual, and I think it's a good opportunity to buy.

Jeff Marks (1:20)

Yeah, I did see yesterday JP Morgan, they lowered their comp outlook for the US to four from six, calling it a less successful Christmas holiday promotion. I'm not sure about that, but they're still talking about really visible margin expansion opportunities, both in the store and outside the store. That was one of the key things that Luxman, CEO, emphasized at the last quarter.

Jim Cramer (1:44)

Well, it would surprise me if things have gotten bad there, and that would be contrary to what I had three weeks ago. And I don't think things change that much.

Jeff Marks (1:53)

That drastically in a couple weeks' span?

Jim Cramer (1:55)

Another one has changed.

Jeff Marks (1:57)

Yeah, but under 100, pretty good opportunity there.

Jim Cramer (1:58)

Oh, I just think it's been very good. We have a lot of it. Would be a buyer if I didn't. We didn't have a lot. And I'll tell you one that I wish we had bought, but I talked about it.

I am appalled that Procter & Gamble stayed out as much as it is. This is a charge, this non-cash.

When you take a look back at 2015 when they exited Venezuela, you had the exact same thing. You had this, people just said, it was like, wow. I mean, if we had it till 20, you would see that the market just went down like this. Now, what I'm trying to do is say, don't sell it. You wanna buy it. I don't think this is because Nigeria.

Jeff Marks (2:30)

Yeah, they're restructuring a couple markets, including Argentina and Nigeria, not big growth markets.

Jim Cramer (2:35)

They were losing billions. They actually lost three billion in Venezuela that year. So they decided to bite the bullet. People took it wrong.

You don't, on a bite the bullet, you buy. This is a buy right here, okay?

Jeff Marks (2:48)

And a 1.3 billion impairment on assets acquired from the Gillette deal, but we're talking about in total-

Jim Cramer (2:52)

20 EPS 2005 deal.

Jeff Marks (2:54)

A non-cash charge of two to two and a half billion. This is a $350 billion market cap. So we're talking less than 1% of the total company, yet the stock down 2.5%, not sure if this punishment fits the crime.

Jim Cramer (3:08)

No.

Start your day with my outlook on the market. Every morning, visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_4 (3:24)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal, or their parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com forward slash investing club disclaimer.

SPEAKER_5 (4:06)

With Sotik-2 for moderate to severe plaque psoriasis, you could show off your skin again. And you know what that means.

As a Tic-2 inhibitor, Sotik-2 is the only once daily pill of its kind for adults with moderate to severe plaque psoriasis. Ask your dermatologist about Sotik-2 today and learn more at soclearlyyou.com. That's soclearlyyou.com.