Lightning Round: You want to pull the trigger on Costco, not Sprouts, says Jim Cramer

This segment features a "lightning round" where callers pose questions about various stocks. The host addresses inquiries on Arista Networks, noting its strong performance. Ply Digital Corporation is discussed, with a point made about its losses compared to profitable competitors like Nvidia. The use of margin in investing is strongly discouraged, with the speaker likening it to a detrimental game. Residuo Technologies is considered, but deemed "played out." A caller asks about Ramico Resources, a coal and rare earth elements company, whose recent performance and government policy influences are being investigated. Finally, Sprouts Farmer's Market is brought up, with the host expressing confusion over its declining stock despite healthy eating trends, contrasting it with a recent purchase of Costco at a significantly lower price.

Arista Networks [00:25]

• A caller asks about Arista Networks (ANET).
• The stock is described as "unbelievable" and doing "so well."

The stock of Arista Networks is highlighted as performing exceptionally well.

J Shri Yal is unbelievable. I was talking to her neighbor today. Literally came to my book signing and we were both marveling. I got to get her back on the show. That company is doing so well. Great call.

Ply Digital Corporation [00:47]

• A caller inquires about Ply Digital Corporation (APLD).
• The stock is noted as "intriguing" but "loses a lot of money."
• A comparison is made to Nvidia, which operates in the same business but is highly profitable.

Ply Digital Corporation is seen as an interesting company, but its financial losses are a significant concern, especially when contrasted with profitable industry peers.

Look, it's intriguing, but it loses a lot of money. I mean, you want a company that's in the same business, it's it's Nvidia, and they make a lot of money.

Margin and Residuo Technologies [01:08]

• The use of margin in stock investing is strongly advised against.
• Margin is described as something not even to be used in Monopoly, and one "cannot live in a stock if they take it away."
• Residuo Technologies is mentioned as an "interesting idea" and a "spin-off of Honey Well."
• However, it is considered to have "kind of played out" after a significant move.

Using margin for stock investments is a dangerous practice and should be avoided entirely. Residuo Technologies, while an interesting concept, has already seen its major upward movement.

Margin, it it's not even bother. I mean, margin, I wouldn't even use it in the in the game of Monopoly. You do not want to use margin in stocks. You might as well. You can't live in a stock if they take it away. I mean, no. Margin is no.

Now Rosidia. Interesting idea. Interesting spin-off of Honey Well, but it's kind of played out.

Ramico Resources [01:35]

• A caller purchased stock at $22 in mid-July, and it is now at $33, representing a 50% increase.
• The company develops coal mines and is branching into rare earth elements and key minerals.
• The company's performance is believed to benefit from "Trump era tariffs," an "onshoring trend," and presidential support for coal production.
• The need to compete with China on rare earth elements is also seen as a positive factor.
• The company recently had a dividend increase.
• The stock name is Ramico Resources.
• The speaker expresses the need to "do some work" on this stock because directly recommending coal can be risky.

Ramico Resources is a company involved in coal and rare earth elements, showing strong recent performance fueled by geopolitical and domestic policy trends. However, further investigation is needed before a definitive recommendation.

They benefit I believe they benefit from Trump Trump era tariffs and the onuring trend as well as the president's preference for increased coal production and the need to compete with China on rare earth elements.

I don't know. Ramico Resources. We have to do some work on that one because it's dangerous for me to just say, "Hey, Cole's good." Because sometimes it isn't.

Sprouts Farmer Market and Costco [02:54]

• A caller asks about a grocery stock, Sprouts Farmer Market, which is headquarters in Phoenix, Arizona.
• The stock has a price-to-earnings ratio of 22 and is down 40% from its high.
• The caller notes the rise of organic and healthy eating trends.
• The speaker finds something "wrong" with Sprouts as the stock keeps going down and expresses confusion.
• For the Chapel Trust, Costco was purchased after waiting for a significant price drop from $178 to $900.
• The speaker emphasizes buying when the stock price is low.

Sprouts Farmer Market's declining stock performance is puzzling given market trends, while Costco was successfully acquired for the Chapel Trust at a significantly discounted price, highlighting the strategy of buying low.

Something's wrong with Sprouts. Stock keeps going down. I don't get it. I'll tell you what we bought today for the Chapel Trust. We bought Costco. We waited and waited waited. 178 goes down to 900. That's the one you want to pull the trigger on.

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