We recently published a list of Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. Since Torm PLC (NASDAQ:TRMD) ranks 9th on the list, it deserves a deeper look.
Jim Cramer in his latest program talked about how the China factor is affecting US stocks. He said that companies that have exposure to China are getting hammered and he does not see that changing “anytime soon.”
Cramer said that currently there are many “pernicious forces working against the bulls.” The CNBC host said many growth stocks are declining right when interest rates are around the corner. He said that companies that don’t benefit from rate cuts are going down. Cramer also mentioned weak earnings reports which show companies having challenged client bases. Cramer mentioned a consumer products company that was recently hammered because of weakness in China.
Cramer thinks the problem in China is twofold: there’s a government that does not like America or American businesses while the population is “cash-strapped” even if they “like our country.”
Cramer said “China is so darn complicated.” He said at one point the Chinese government was “so business friendly” that Western companies thought it’s “insane” not to go there. But since the Trump administration, the country has been engaged in trade wars with the US.
Cramer said the Chinese government “took advantage of us on trade.”
For this article we watched several latest programs of Jim Cramer and picked 10 important stocks he’s talking about. With each stock we have mentioned its hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Torm PLC (NASDAQ:TRMD)
Number of Hedge Fund Investors: 16
Jim Cramer was recently asked about Torm plc during a program on CNBC. Here is what he said:
“It has a remarkably high dividend yield. And as long as it has that dividend yield, the stock’s going to stay up. But, when things start going bad, and they always do in this business, that yield’s going to start going down…Be aware, right now, still going up. But these things are slopes, and they just get crushed when that dividend goes down, yield will go down with it.”
Torm PLC (NASDAQ:TRMD) is a shipping company that operates tankers for oil products such as gasoline, jet fuel, naphtha and diesel oil. Torm PLC (NASDAQ:TRMD) is set to benefit in the short term amid a rise in refinery capacity in the Middle East and Africa. Middle East refinery production is estimated to rise 10-15% from the end of 2023, adding over 1 million barrels per day as newly completed refineries ramp up. Torm PLC (NASDAQ:TRMD) is also implementing its strategy of vessel upgrades and expansion. It bought eight medium-range tankers, aged 9-10 years, for $238 million in cash and 2.65 million in company stock. The company also divested an 18-year-old MR tanker for $23.3 million, increasing its fleet to 96 vessels. Torm PLC (NASDAQ:TRMD) bulls believe the company’s 15% dividend yield is safe for the next two years at least amid rising refinery volumes in the Middle East and Africa.
Overall, Torm PLC (NASDAQ:TRMD) ranks 9th on Insider Monkey’s list titled Jim Cramer Latest Portfolio: 10 Stocks to Buy and Sell. While we acknowledge the potential of Torm PLC (NASDAQ:TRMD) our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TRMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.