Lightning Round: Recursion Pharmaceuticals and NuScale Power

Key Concepts

• Recursion Pharmaceuticals (RXRX): A biotechnology company focused on drug discovery and development.
• Genentech: A biotechnology company, a subsidiary of Roche.
• Nuclear Sector: The industry related to nuclear energy production.
• NuScale Power (SMR): A company specializing in small modular nuclear reactors.
• Five Below: A discount retail chain.
• Lightning Round: A segment of the show where callers ask rapid-fire stock questions.

Recursion Pharmaceuticals (RXRX) - Caller Ron from California

Main Topic: Caller Ron's concerns and optimism regarding Recursion Pharmaceuticals (RXRX) stock.

Key Points:

• Ron has held the stock for 1.5 years and is increasingly upset by its consistent decline.
• He believes the stock will turn around due to several factors:
  • A $30 million deal in October from Roche Genentech.
  • $785 million in cash reserves.
  • A major drug trial announcement scheduled for December 8th, which Ron anticipates will be favorable.
  • The appointment of Nejat Khan as CEO of Recursion Pharmaceuticals on January 1st, citing her "genius" and expertise.
• Ron predicts 2026 will be a "banner year" for Recursion.

Jim Cramer's Perspective:

• Cramer acknowledges the stock's "horrendous" performance, stating it falls into the "speculative" category.
• He expresses a "bad taste in my mouth" regarding the stock, despite acknowledging the company has significant cash.
• Cramer is hesitant to recommend "horrendous stocks" but notes Ron's willingness to "take the pain."

Technical Terms:

• Drug Trials: Clinical studies conducted to evaluate the safety and efficacy of new drugs.
• Speculative: Investments that carry a high risk of loss but also a high potential for gain.

Nuclear Sector and NuScale Power (SMR) - Caller Mark in New Jersey

Main Topic: Caller Mark's inquiry about the nuclear sector and specific advice on NuScale Power (SMR).

Key Points:

• Mark asks for Jim Cramer's opinion on the nuclear sector and whether he should buy more, hold, or sell NuScale Power (SMR).

Jim Cramer's Perspective:

• Cramer's only positive mention in the nuclear sector is for "Tobias GE," implying a preference for companies with proven execution capabilities in building nuclear facilities.
• He advises Mark to "scale out on the way up" for NuScale Power.
• Specific Selling Strategy:
  • Sell some at $23.
  • Sell some at $25.
  • Sell some at $27.
  • Sell some at $30.
  • "Get rid of all of it" eventually.

Technical Terms:

• Small Modular Reactors (SMRs): Advanced nuclear reactors that are smaller than conventional reactors and can be manufactured in a factory and transported to a site.

Conclusion of the Lightning Round

Main Topic: The conclusion of the rapid-fire stock segment.

Key Points:

• The Lightning Round is sponsored by Charles Schwab.
• The next segment will feature Cramer discussing the turnaround at discount retailer Five Below.

Synthesis/Conclusion

The YouTube transcript features a "Lightning Round" segment where Jim Cramer addresses caller stock inquiries. The first caller, Ron, expresses frustration with Recursion Pharmaceuticals (RXRX) due to its stock performance but remains optimistic about its future prospects, citing upcoming drug trial announcements, significant cash reserves, and a new CEO. Cramer acknowledges the stock's poor performance and speculative nature, expressing personal reservations. The second caller, Mark, inquires about the nuclear sector and NuScale Power (SMR). Cramer offers a cautious approach to NuScale Power, advising a phased selling strategy on the way up, and expresses a preference for companies with proven execution in the nuclear sector. The segment concludes with an announcement of an upcoming discussion on Five Below.