Cramer's Morning Take: TJX & Disney 8/22/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. We discussed that TJX fired a hold call from Citi.

And I said, well, that's just a, you gotta be really careful with it when you make a valuation call. That said, I mean, up 28% for a company that is pretty good. I, you know, we have a big position, you may have to take some more.

Jeff Marks (0:25)

Yeah, I mean, look, this Citi, it was up 6% yesterday, TJX, all-time high. They say the story is good as ever, it continued, beats and raises, as they take share from department stores, Macy's, JCPenney, Kohl's. But this is interesting, they point out that its market cap is similar to Nike, 60% higher than Target, and a higher multiple than Walmart. So that kind of, that skews their risk for reward. But I think the company is just doing so well.

Jim Cramer (0:54)

Well, look, I think this is their time because there is a lot of inventory around. There are 150 Macy's that have to close. Where is that stuff going to go? It's not going to go to Olly's.

Jeff Marks (1:04)

Yeah, I mean, so we trimmed some last at 115 Could we trim some at 120?

Jim Cramer (1:08)

Sure.

Jeff Marks (1:09)

I think that's what we do, right? We take a little bit off that stocks rally.

Jim Cramer (1:13)

Because if it goes back to 110, I want to buy it. And we don't have flexibility. It's just trading around. It's not fleeing the position. Just doing a little portfolio management or what some would regard as a parabolic move.

Jeff Marks (1:28)

Yeah, the catalyst.

Jim Cramer (1:29)

We don't like parabolic moves.

Jeff Marks (1:31)

A catalyst, that being earnings. Let's talk about Disney next. So, some news after the bell yesterday. Morgan Stanley, the former Morgan Stanley CEO, James Gorman, is going to head their succession planning committee. Mary Barr, Calvin McDonald's, is CEO of GM. And Lulu also are on that committee. Iger not stepping down until the end of 2026 There's still a lot of time here. I would have thought this was more in motion.

Jim Cramer (1:57)

I think that it's imperative that they get a good CEO. They get them now. Good, tough, younger CEO that knows how to deal with labor, but also how to deal with crowds, knows how to deal with all the different leagues. And it's just time for Bob to step aside.

You've got a high-powered committee trying to find a CEO, but no CEO is going to say, listen, I'm not going to take that job till 2026 There is a CEO of any caliber who will wait a year and a half. So it's important that I get to step down.

Jeff Marks (2:31)

Yeah, in the meantime, it does seem like the Hugh Johnson, the CFO has got the financials on track, right? We did have streaming profitability last quarter. Obviously, some flagging, some weakness in the theme parks. A lot of that may just be consumer related, you know, economy related. But call me a buyer.

Jim Cramer (2:51)

Call me a buyer here.

Jeff Marks (2:52)

Yeah, I know we've been discussing it. We bought, we sold a lot, obviously, into the proxy battle. Bought some at $100, bought a little at $90.

Jim Cramer (3:02)

All back, we've not bought all back.

Jeff Marks (3:03)

No, and I don't think we need to do the whole slot, but. Well, maybe some, yeah.

Jim Cramer (3:07)

I think we need to buy a little.

Jeff Marks (3:08)

The quarter was good.

Jim Cramer (3:08)

I would, no, of course, we're frozen.

I think it's the right level. I think that Gorman's a heavyweight. I don't think Gorman's gonna be able to find any great CEO who doesn't start till 2026 Who is that? Someone in business school, for heaven's sake? Who does that kind of thing? They have to make the change, they have to make it now. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive morning minis every day at 1020 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (3:42)

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