- CNBC’s Jim Cramer spoke Wednesday about several companies whose stock prices have fallen recently and explained whether he thinks they can turn things around.
- Cramer mentioned Starbucks, Walgreens and Boeing, among others.
CNBC’s Jim Cramer spoke Wednesday about several companies whose stock prices have fallen recently and explained whether he thinks they can turn things around.
“We can complain about companies that are not being honest. Or we can look at what Larry Culp did when he came into office and saved GE from collapse. We can see how much the market immediately trusted that Brian Niccol would get Starbucks back on track,” he said. “It can be done – but companies need to stop fighting it.”
Cramer first looked at Starbucks. He said that companies that want to improve need a big change at the top and that the coffee retailer will become “the model” for such success. He pointed to how the company’s shares soared on Tuesday after management announced that Brian Niccol, the CEO of Chipotle, would take the helm. It had become clear to Cramer that Starbucks was a “great company with loyal customers and not so great management.”
For Cramer, Disney is also “salvageable” because the company has many valuable franchises and can succeed with the right management. But as for former Dow stock Walgreens, he said the company may be too damaged to turn around. Despite his confidence in CEO Tim Wentworth, Cramer said the executive may have been tasked with the impossible.
Because Boeing has so little competition, Cramer said the plane maker can afford “endless mistakes.” He said the company can succeed, it just needs solid management. Boeing’s new CEO, aviation veteran Robert “Kelly” Ortberg, officially took the reins last week. Wall Street has been skeptical of Boeing after a door stop missing key screws flew out of a new 737 in mid-flight earlier this year. The company had spent years trying to convince investors its planes were safe to fly after two fatal crashes in 2018.
“It’s going to take a lot of time to get Boeing back on track. I think it’s probably too early to buy the stock given how abysmal the balance sheet is, but Ortberg has some common sense,” Cramer said. “Given that it’s a duopoly where America is reliant on Boeing, I’m betting he can do it.”
Walgreens declined to comment. Disney, Starbucks and Boeing did not immediately respond to requests for comment.
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