Jun 11, 2026 · 46 min
Honeywell bets on automation as markets brace for SpaceX liquidity test
Mad Money w/ Jim Cramer 6/11/26
The episode connects a long-term industrial growth story with near-term questions about speculation, liquidity, rates, and geopolitical risk.
- 1Honeywell frames automation, industrial AI, and energy infrastructure as long-cycle growth opportunities despite Middle East risks.
- 2Cramer revisits TheStreet.com’s IPO to warn how enthusiastic market orders can turn speculation into unsustainable pricing.
- 3Tax payments, Treasury settlements, reserves, and rates could determine whether markets absorb a potential SpaceX IPO smoothly.
Don't miss
The episode links a potential SpaceX IPO to tax payments, Treasury settlements, and bank reserves, reframing the debut as a market-liquidity test.
The brief
Jim Cramer opens with a warning from TheStreet.com’s IPO: enthusiastic market orders can push a popular stock far beyond sustainable value.
Honeywell CEO Vimal Kapur presents automation as a system that senses, controls, and optimizes complex operations, from buildings and LNG facilities to data centers.
The investment case rests on long-cycle demand for industrial automation and AI, even as higher energy prices and Middle East conflict complicate new projects.
The episode’s sharpest market question is whether tax payments, Treasury settlements, and bank reserves could create a liquidity squeeze around a potential SpaceX IPO.
Cramer closes by weighing uncertain Iran-related escalation and viewer questions on Fluence Energy and Microchip Technology against the danger of trading on speculation.
What was said on this episode
34 statements · 21 positive · 9 negative · 2 mixed · 2 neutral
SpaceX could become the world's largest publicly traded company.
“we may have a new champion, a new largest stock in the world, and its name is SpaceX”
Listen at 0:35
SpaceX could reach a $4.9 trillion valuation.
“It would be a $4.9 trillion valuation.”
Listen at 2:33
SpaceX stock will enter major indexes, including the Nasdaq 100.
“Just a few days later, the stock gets admitted to a bunch of indices, including the Nasdaq 100.”
Listen at 4:21
Index inclusion could push SpaceX shares higher.
“potentially sending SpaceX still higher”
Listen at 4:28
SpaceX could become the largest stock despite being unprofitable.
“an unprofitable company could end up being the biggest stock on Earth”
Listen at 5:05
Poorly controlled IPOs can produce disastrous outcomes.
“We want the deals to be under control because otherwise they can be disastrous like those two I just mentioned.”
Listen at 5:27
Market-order buying drove TheStreet.com shares to unsustainable levels.
“there were so many fans of TheStreet.com that they used market orders to buy hundreds of thousands of shares, moving the stock up to unsustainable levels”
Listen at 5:54
SpaceX could open at a valuation $4–5 trillion too high.
“It's four to five trillion dollar valuation too high”
Listen at 6:41
Krispy Kreme appears undervalued amid insider buying.
“There is insider buying. The company does seem to be worth more than it's selling for.”
Listen at 8:21
Investors should not rely on Berkshire Hathaway takeover speculation.
“we're not going to speculate on who's going to buy what on this show”
Listen at 8:30
SpaceX may rise sharply above its IPO opening price.
“there's a real risk that SpaceX blows past its opening price tomorrow”
Listen at 8:38
Honeywell's restructuring will create a pure-play automation company.
“what it creates is pure play automation”
Listen at 10:45
Honeywell's automation offerings are mission-critical.
“Everything we do is mission critical.”
Listen at 10:58
Honeywell applies the same core automation principles across sectors.
“The principles don't really change of automation, whether it is building automation, process automation, or industrial automation.”
Listen at 11:47
Honeywell technology supports two-thirds of global LNG production.
“Two-thirds of the LNG in the world, two-thirds of it, is produced with our technology.”
Listen at 15:17
Demand for Honeywell's LNG technology remains strong.
“Demand remains very strong.”
Listen at 15:30
Higher energy prices are increasing Honeywell customers' cash available for spending.
“the diesel price is up globally 200 percent. Jet fuel prices are up similar range. Our customers are making more money.”
Listen at 16:11
Middle East developments are net positive for Honeywell.
“it's net positive”
Listen at 17:14
Honeywell's process business will grow high single digits in the second half.
“we expect that our process business in second half of this year. is going to grow a high single digit”
Listen at 17:35
AI will redefine industrial automation.
“the power of AI is going to redefine automation”
Listen at 18:33
The net workforce will decline over time because of demographic trends.
“net workforce is not going to be getting increasing. It's going to get decreasing over a period of time.”
Listen at 19:13
Honeywell's physical AI offering is based on proprietary domain knowledge and data.
“physical AI for us is built on our domain knowledge. It's built upon the data which we possess in our system.”
Listen at 19:37
Honeywell is inexpensive and has strong growth prospects.
“this is the kind of company that is not expensive, that has a great growth path”
Listen at 19:50
SpaceX settlement and tax payments could trigger a liquidity crunch.
“We could be looking at a liquidity crunch right before the next Fed meeting”
Listen at 31:35
Upward-sloping S&P 500 moving averages indicate a bullish trading cycle.
“As long as they're sloping upwards and acting as means of support, that means we are in a bullish trading cycle”
Listen at 32:20
The S&P 500 remains in a bullish trading cycle.
“Still trading in a bullish trading cycle.”
Listen at 33:05
The reserve-balance and repo-rate spread needs to remain tight for liquidity.
“this needs to be really tight”
Listen at 37:18
A spike in the liquidity spread is concerning but not necessarily severe.
“it doesn't necessarily mean that it's that bad. It just means it's concerning.”
Listen at 39:14
Cramer is concerned that market liquidity is running low.
“I am very concerned that we are running out of money, so to speak.”
Listen at 39:59
Fluence Energy's lack of profitability is limiting its stock upside.
“It's got to make money, and that's why it is not going higher.”
Listen at 41:57
Investors should complete their Microchip Technology positions.
“I think you should buy the other half, frankly. I think it's a good one.”
Listen at 42:36
Investors should not base decisions on presidential war statements.
“we don't make investing decisions based on what the president says about the war”
Listen at 43:59
Chevron should be bought when Trump says Iran talks are going well.
“Go buy Chevron, because that probably means the talks are going to go wrong.”
Listen at 44:08
Avoiding gasoline lines would leave markets relatively safe from oil disruption.
“As long as the gas lines don't come back, I think we're probably home free.”
Listen at 44:50
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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