Lightning Round: Opendoor is high, but the company makes no money, says Jim Cramer

Key Concepts

• CNBC Investing Club: A special offering for viewers to access Cramer's top takeaways and charitable trust moves.
• Lightning Round: A segment where Jim Cramer answers viewer stock questions rapidly.
• Mettler-Toledo International (MTD): A company discussed as a "very good company" but "very poorly covered" and not promotional.
• Open Door Technologies (OPEN): A company whose stock is considered high despite the company making no money, leading to Cramer's skepticism.
• Poet Technologies (POET): A speculative stock that is losing too much money, making it unrecommendable in the current "era of magical investing."
• Biohaven Pharmaceutical Holding Company Ltd. (BHVN): A stock down 75% year-to-date, with insiders investing $33 million. Cramer has a personal deal with the company for a drug he co-invented, leading to a disclosure of potential bias.
• Era of Magical Investing: A term implying that the period of investing without regard for profitability is over.

Mettler-Toledo International (MTD)

• Main Topic: A viewer's inquiry about whether Mettler-Toledo International is a buy, following a price target increase by Stifel.
• Key Points: Jim Cramer describes Mettler-Toledo International as a "very good company" that is "very poorly covered" and "very not promotional." He expresses a long-held belief that people should focus on this company.
• Argument/Perspective: Cramer views MTD as a fundamentally sound company that is overlooked by the market due to its lack of promotional activity.

Open Door Technologies (OPEN)

• Main Topic: A viewer's enthusiastic recommendation for Open Door Technologies, citing rate cuts, a housing affordability crisis, and a shortage of homes.
• Key Points: Cramer's primary concern is that the stock is "high given the fact that the company makes no money." He states, "I'm not a believer until it makes money."
• Argument/Perspective: Cramer prioritizes profitability in his investment decisions. Despite the positive market conditions and enthusiasm for OPEN, he cannot recommend it because it is not generating profits.

Poet Technologies (POET)

• Main Topic: A viewer's question about Poet Technologies as a speculative stock.
• Key Points: Cramer's response is direct: "It's losing too much money. It's losing too much money." He explicitly states, "The era of magical investing is over, so I can't recommend the stock."
• Argument/Perspective: This reinforces Cramer's stance against investing in companies that are not profitable, especially in the current market environment which he characterizes as no longer supporting "magical investing."

Biohaven Pharmaceutical Holding Company Ltd. (BHVN)

• Main Topic: A viewer asks if it's time to buy Biohaven stock, which has fallen 75% year-to-date, given that insiders have invested $33 million in the past week.
• Key Points:
  • The stock is down 75% year-to-date.
  • Insiders (CEO and others) invested $33 million in the last week.
  • Cramer discloses a personal deal with Biohaven for a drug he co-invented with a doctor.
  • Despite his personal involvement, he states, "the stock seems very low to me."
  • He acknowledges that his personal deal might lead viewers to question his objectivity.
• Argument/Perspective: Cramer presents a complex situation where insider buying suggests potential undervaluation. However, his personal financial interest in the company necessitates a disclosure, highlighting the potential for bias. He still believes the stock is "very low."

Conclusion

The Lightning Round segment of the broadcast focused on rapid-fire stock recommendations and analysis from Jim Cramer. Key themes included the importance of company profitability, the current market environment's shift away from speculative "magical investing," and the challenges of providing objective advice when personal financial interests are involved. Cramer reiterated his preference for companies that demonstrate financial viability, even if they are not heavily promoted. The segment concluded with a disclosure of Cramer's personal involvement in Biohaven, underscoring the need for transparency in investment advice.