There are two stocks in our portfolio that are in rough shape. But Jim Cramer said during the club’s December “monthly meeting” on Thursday that he had hope for both. Disney (DIS), Jim said, might just be his favorite stock for 2023. But let’s connect the dots on how he got there. He said he’s tried to work with recently ousted CEO Bob Chapek and even tried to understand his vision for the company. But ultimately, Jim came to a brutal conclusion: Chapek didn’t have one, and he had to go. Bob Iger is back as Disney CEO. But Iger destroyed the company’s balance sheet with its 2019 acquisition of 21st Century Fox. The good news, as Jim puts it, is that Iger knows how to handle talent, while talent thought Chapek was a buffoon. Talent counts in the entertainment industry. Iger is quietly competitive — and if he doesn’t take this stock to at least $125 a share, where it was at Disney+’s launch, “I’d be shocked,” Jim said. The club views the stock as a Buy at current levels, as reflected in our 1 rating. Now for Salesforce (CRM), which Jim believes has bottomed out, citing a combination of good orders, a weaker US dollar, massive cost cutting and the spur from Starboard – an activist hedge fund. Jim said when he spoke to co-CEO Marc Benioff last week, the Salesforce co-founder was still a little heartbroken by co-CEO Bret Taylor’s sudden decision to leave the enterprise software company next month. Benioff remains sole CEO. Regarding other recent departures, as described by Jim, Benioff said something quite compelling and newsworthy: They weren’t all voluntary. Benioff hated it according to Jim. He wants to lead one of the biggest, best and most profitable software companies in the world. Taylor’s exit was a blow to Salesforce, Jim said, but added if you want to lament Benioff’s loss of a second co-CEO, go ahead. “I like the solo they have now,” he added. Our 2 rating on Salesforce shows we’re waiting for the stock to fall further before buying. (Jim Cramer’s Charitable Trust is long DIS and CRM. A full list of stocks can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling any stock in his charitable foundation’s portfolio. When Jim spoke about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION SHALL BE OR CREATED BY YOUR RECEIVING OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
Robert Iger, Chairman and CEO of The Walt Disney Company, speaks in Laguna Beach, California on October 22, 2019.
Mike Blake | Reuters
There are two stocks in our portfolio that are in rough shape. But Jim Cramer said during the club’s December “monthly meeting” on Thursday that he had hope for both.