Cramer’s Crazy Money Recap: Advanced Micro Devices, Nvidia, Thor
From profits to developments in China and the latest COVID news, Jim Cramer outlined his game plan for next week on Friday’s Mad Money show.
On Monday, Cramer said he would seek the latest updates on China’s Evergrande group, as well as who might be China’s next “enemy”. The country is rampant and this complicates the task of investors and businesses.
Tuesday we will have Micron gains (UM) – Get the report from Micron Technology, Inc. (MU). Let’s wait and see how the company does, Cramer suggested, while saying he would buy dips in Advanced Micro Devices. (AMD) – Get the Advanced Micro Devices, Inc. and Nvidia (NVDA) – Get the NVIDIA Corporation report if they are hit in the Micron neighborhood. Thor Industries (THO) – Get the report from Thor Industries, Inc. will also report the winnings.
On Real Money, Jim Cramer writes that if analysts had more real-life experience, they could help people make a lot more money. Instead, they just focus on the bad things. Read more of what he says on earnings, analysts and their reactions to Nike, Costco and Salesforce.
Investors should have a good overview of the situation for small and medium-sized businesses when Cintas (CTAS) – Get the report from Cintas Corporation and Herman Miller (MLHR) – Get the Herman Miller, Inc. publish their quarterly results on Wednesday.
Thursday will be busy, with Bed Bath & Beyond (BBBY) – Get the Bed Bath & Beyond Inc. report. reports, with CarMax (KMX) – Get the report from CarMax, Inc.. Paychex (PAYX) – Get the Paychex, Inc. will also post profit and Cramer likes to buy the drop under that name. McCormick (MKC) – Get the McCormick & Company, Incorporated (MKC) report will report as well, and while it’s a great company, Cramer suggested avoiding that name for now.
Cramer will want to take a look at the latest COVID-19 data on Friday, to see which way the number of cases is moving.
Here’s the gist: Prepare yourself, Cramer said, because after next week we’ll have the monthly jobs report and the earnings season will start in effect. Next week is like the “calm before the storm,” he added.
Executive decision: Bon Rx
In the “Executive Decision” segment of the show, Cramer spoke with Doug Hirsch, Co-Founder and Co-CEO of GoodRx Holdings (GDRX) – Get the GoodRx Holdings Inc..
In our complicated world of healthcare, GoodRx is simply trying to help Americans make sense of all the information out there, Hirsch said.
The average consumer takes several weeks to get in with the doctor, while GoodRx can provide them with simple answers and videos to help alleviate some of that stress.
The company is also a partner of all major US pharmacies, as well as retailers like Walmart. (WMT) – Get the report from Walmart Inc., to help generate value for consumers.
The action has been on the rise since GoodRx was last featured on Monday Money in July (up around 14% in the past three months). Cramer said he continues to love her and doesn’t worry about potential competition.
Am I Diverse?
In the “Am I Diversified” segment of the show, Cramer helped investors with their portfolios.
The first viewer’s portfolio consisted of Verizon (VZ) – Get the report from Verizon Communications Inc., Procter & Gamble (PG) – Get the Procter & Gamble Company Report, Johnson & Johnson (JNJ) – Get the Johnson & Johnson report (JNJ), Bristol-Myers Squibb (BMJ) – Get the Bristol-Myers Squibb Company Report and MetLife (MEET) – Get the MetLife, Inc. (MET) report.
It’s not as diverse as it could be, Cramer said. Bristol-Myers and J&J clash too much, and Cramer prefers the latter. Instead of Bristol-Myers, he would like an auto stock.
The next caller’s wallet included Amazon (AMZN) – Get the Amazon.com, Inc. report, Nvidia, PayPal (PYPL) – Get the PayPal Holdings Inc report, Goldman Sachs (SG) – Get the report from Goldman Sachs Group, Inc. (GS) and DraftKings DKNG.
They are amazing companies, Cramer said, endorsing the portfolio.
Another appellant’s portfolio included Walt Disney Co. (SAY) – Get the Walt Disney Company report, Apple (AAPL) – Get the Apple Inc. (AAPL) report, You’re here (TSLA) – Get the Tesla Inc report, Citigroup (VS) – Get the report from Citigroup Inc. and Amazon.
“I love this wallet. I love it, ”Cramer said. “This is the wallet I’m looking for.
Then this appellant’s portfolio included applied materials (AMAT) – Get the Applied Materials, Inc., ArcBest (ARCB) – Obtain the ArcBest Corporation report, BootGrange (BOOT) – Get the Boot Barn Holdings, Inc., RH Inc. (HR) – Obtain the HR report (equipment restoration) and Silicon Valley Bank Group (SIVB) – Obtain the SVB financial group report.
“I like this one too!” Cramer said, praising most of the companies in this portfolio. ArcBest is not his first choice, but it will work, he added.
The end caller’s portfolio included Apple (AAPL) – Get the Apple Inc. (AAPL) report, Microsoft MSFT, Abbott Labs (ABT) – Get the Abbott Laboratories report, Lowe’s (MEUGLER) – Get the Lowe’s Companies, Inc. (LOW) report and NextEra Energy (BORN) – Get NextEra Energy, Inc..
Cramer also praised this portfolio, calling it “amazing.” Even though he wasn’t NextEra’s biggest fan, the portfolio is diverse.
Out of band
In the “Off the Tape” segment of the show, Cramer spoke with Ivy Zelman, CEO of Zelman and Associates. Zelman not only called the top of the housing market in 2005, but also the bottom in 2012.
In her new book, Gimme Shelter, she says that instead of being akin to gambling in a casino, the stock market is a vehicle for building wealth – something that really resonated with Cramer.
She tries to eliminate some of the fear many consumers have about the stock market and help bridge the inequality gap.
As for the housing market, she thinks it’s still too early to call a peak, but says she fears it may be too hot right now. Home builders seem to be building too many single and multi-family homes.
Eventually there will be a correction, she added.
The business is more than a spreadsheet
On the No-Huddle Offense show, Cramer said that not everything in business can fit in a spreadsheet. He took a look at three big U.S. companies all of which got big news on Thursday.
Nike (NKE) – Get the NIKE, Inc. (NKE) report shares fell 6% on Friday after disappointing earnings. This activity is about sales and gross margins spread across different geographies, Cramer said, explaining that the figures from China were disappointing.
Cramer asked, can we really believe that this was just supply chain issues and not a bigger issue with China as a whole?
Wholesale Costco (COST) – Get the report from Costco Wholesale Corporation had the opposite experience. Shares rose 3.3% on Friday on better-than-expected results. It’s time for investors to see this as a revenue and subscription-based business, not a traditional retailer. The company now has over 111 million members, he added.
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Finally, take a look at Salesforce (CRM) – Get salesforce.com, inc. Report. All the critics seemed to point out that Salesforce needed to acquire businesses in order to grow. Now reaching all-time highs after his analyst day, it’s clear that’s not the case.
The company’s rising gross margins show that its acquisitions have been beneficial to the company and its bottom line. Investors could have known this by simply tracking free cash flow – or by following what CEO Marc Benioff has been saying for years.
Here’s what Jim Cramer had to say about some actions during the Mad Money Lightning Round:
Carnival Corp. (CCL) – Get the report from Carnival Corporation: “. (NCLH) – Get the report from Norwegian Cruise Line Holdings Ltd. is a better business.
Duolingo (DUOL) – Get the DUOLINGO, INC. Report.: “It’s such a brilliant company.”
Helbiz (HLBZ) – Get the report from HELBIZ, INC.: “We will stay away. This is a bad deal.
Blade Air Mobility BLDE: “I believe in this company. I want you to hang on to that bad boy.
Proximity (DOCS) – Get the report from DOXIMITY, INC.: “He’s a winner and it’s the future.”
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At the time of publication, Action Alerts PLUS had a position in AMD, AMZN, AAPL, DIS, MSFT, ABT.