There’s always a bull market somewhere, Jim Cramer reminded his Mad Money viewers Monday. It’s not always obvious, Cramer added, sometimes you have to dig for it. Even on a day like Monday, when news of a new COVID strain in the U.K. sent the market into maximum panic, there were still some great opportunities created.
No one ever made a dime panicking. When uncertainty roils the markets, Cramer told viewers to stay disciplined and look for positive stock-specific news that can shield them from declines.
Shares of Nike (NKE) – Get Report rose 3.2% Monday after the company’s strong earnings, for example. Then there was the surprise news that the banks will be allowed to resume their stock buybacks, news that rallied shares of JPMorgan Chase (JPM) – Get Report, Morgan Stanley (MS) – Get Report and Citigroup (C) – Get Report.
Next, Cramer found strength in stocks that benefit from the much-needed stimulus deal. After the first stimulus, Dollar General (DG) – Get Report, Lowes (LOW) – Get Report and Home Depot (HD) – Get Report all rallied. They’re likely to rally again.
Cramer was also bullish on Microsoft (MSFT) – Get Report, after the company received a positive report card from an analyst. Investors can also look towards the obvious stay-at-home stocks as COVID worsens. He recommended Airbnb (ABNB) – Get Report and Snowflake (SNOW) – Get Report, along with Roku (ROKU) – Get Report, DocuSign (DOCU) – Get Report and Peloton (PTON) – Get Report.
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Off the Tape: Robinhood
In his “Off The Tape” segment, Cramer spoke with Vlad Tenev, co-founder and CEO of the privately-held online trading platform Robinhood, which has gained a lot of notoriety — and criticism — in 2020.
Tenev said Robinhood was designed to make investing more accessible for all investors. The platform serves many types of investors, from novice to seasoned veterans. They are continually innovating with new products like the Robinhood Recap, which provides customers with timely information and insights about themselves and their investments.
While Robinhood is a self-directed investment platform, Tenev said they focus extensively on education. The company’s educational articles have been read 3.2 million times, he said.
When asked about their recent settlement with regulators, Tenev noted that the suit mainly dealt with past practices at the company which have since been rectified. He said they never aim to steer investors into products that are not suitable for them.
Executive Decision: Thor Industries
In his first “Executive Decision” segment, Cramer spoke with Bob Martin, president and CEO of RV maker Thor Industries (THO) – Get Report, which today announced the acquisition of Tiffin Motorhomes for $300 million.
Martin said Thor has always been opportunistic when it comes to acquisitions and Tiffin was one of those opportunities. He said not only does the company have a great brand and products, it also gives Thor access to new labor markets to help it ramp up to meet growing demand for RVs.
When asked about the type of buyer for Tiffin products, Martin explained that the company makes an entire line of RVs that can sleep from two to eight people depending on the model.
Martin added that they remain in a secular growth trend, one that has only been accelerated by the pandemic. He said suppliers have been struggling all year to keep up with demand, but as they entered the slower fall selling season, they are beginning to catch up. Thor expects by spring time they will be ready for the 2021 summer season which continues to look strong with new customers both young and old.
Executive Decision: AGCO
For his second “Executive Decision” segment, Cramer also spoke with Martin Richenhagen, the outgoing chairman, president and CEO of agriculture equipment maker AGCO (AGCO) – Get Report. Shares of AGCO are up 440% during Richenhagen’s tenure since 2004.
Richenhagen credited AGCO’s success with having the right products, the right innovations and the right culture. He said his company’s products, which include tractors, combines, sprayers and more, are loved by their customers. Furthermore, AGCO’s products have a lower total cost of ownership over the long run, after you factor in fuel and maintenance costs.
Richenhagen also said AGCO has been modernizing its policies for its board of directors and executive compensation, making the company “rock solid” for the next chairman and CEO.
When asked about how the company has dealt with COVID, Richenhagen said they’ve managed the pandemic fairly well thus far. AGCO has seen some disruption in their manufacturing, but were able to increase capacity at other factories using multiple shifts that kept workers adequately separated.
Finally, when asked about the incoming Biden administration, Richenhagen said what companies are looking for most is predictability. Once they know Biden’s plans for agriculture, they will adapt accordingly.
Give Stocks a Chance
In his No-Huddle Offense segment, Cramer said when people start receiving their $600 stimulus checks, especially younger people, they should give stock picking a chance. The stock market saw a big surge after the last stimulus, and while he discourages day trading and options trading for new investors, there’s nothing wrong with picking some of your favorite stocks to get a jump on your retirement.
But Cramer said the $600 checks aren’t the most important part of the stimulus package. The expanded unemployment insurance is a much bigger deal, he said, as is the return of the Payroll Protection Program, the money for vaccine distribution, the ban on evictions and the assistance for restaurants. All of these combined, he said, are a boon for the American people, the economy and yes, for the stock market.
Here’s what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:
Chimera Investment (CIM) – Get Report: “This is not a stock I’ve been recommending. That big yield isn’t protecting you.”
ZScaler (ZS) – Get Report: “I like that stock very much.”
ON Semiconductor (ON) – Get Report: “That’s a good company. I think you’re in good hands. “
Co-Diagnostics (CODX) – Get Report: “I always default to Thermo Fisher Scientific (TMO) – Get Report. I really love what they’re doing.”
United States Steel (X) – Get Report: “You want to own Nucor (NUE) – Get Report for the yield and the balance sheet. That’s a great company.”
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At the time of publication, Cramer’s Action Alerts PLUS had a position in NKE, JPM, MSFT.