This pandemic has clashed with things in ways we could never have imagined, Jim Cramer told his viewers of Mad Money on Thursday. Some of those collisions are good, while others are not, Cramer said. Therefore, he continued to recommend a barbell portfolio that includes both COVID-19 winners and recovery actions.
One of those unexpected collisions happens in the business space, where millions of workers have moved to work from home. Therefore, Cramer spoke for his first Segment Executive segment with Enrique Lores, President and CEO of HP Inc. (HPQ) – Get Report, the PC and printer maker that just posted a profit of six cents per share.
Lores said that PCs are essential tools for our new home economy, and HP sees a transition from one PC per home to one PC per person for many families. That was how HP was able to generate 9% revenue in the fourth quarter.
Lores added that today’s HP laptops not only are lighter and have better performance, they are made with more durable materials and packaged with the environment in mind.
HP continues to commit to giving back money to its shareholders, Lores added, so the company expanded its share repurchase program during the quarter, benefiting from its lower share price. They also continue to be committed to stimulating diversity within HP. Lores said that diversity is what the whole company cares about and their results benefit from one of the most diverse technology companies.
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Executive decision: working day
For his second segment “Executive Decision”, Cramer also spoke with Aneel Bhusri, co-founder and again co-CEO of Workday (WDAY) – Get Report.
Bhusri said that even in the pandemic companies find that payroll, HR and planning software are mission-critical applications. That’s how Workday can still provide leadership over their business, while many others are apparently in the dark.
Bhusri also commented on his new role as co-CEO. He said after leading the company alone for the past 10 years, he is happy to have his partner and co-founder Chano Fernandez back on his side. He said Fernandez lives the values of the company and has risen to become a true war leader for the company in these challenging times.
Asked how Workday could win so many new businesses in the midst of a pandemic, Bhusri explained that Workday has many happy customers who provide strong references for new customers. He said the move to the cloud continues and even challenging industries are seeing the benefits and cost savings of modern cloud applications.
Executive decision: Splunk
For its latest “Executive Decision” segment, Cramer controlled Doug Merritt, President and CEO of Splunk (SPLK) – Get Report, the provider of cloud analytics with shares up 130% from their lowest March.
Merritt said these are turbulent times and change is not a natural behavior for most of us. But with change comes opportunities to re-imagine how business and education are done. Remote work, distance learning and telemedicine are not new concepts, he said, but they are being reinvented with new cloud technologies.
Asked about education, Merritt said it was almost unimaginable how schools were forced to move millions of students almost overnight to distance education. That’s why Splunk is helping with new 360-degree views of online learning that benefit both students and teachers and both succeed.
One of Splunk’s big wins has recently been Yale University. Merritt said Yale was initially interested in its working products remotely, but when they became customers, they also quickly added cybersecurity services.
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Executive Decision: Williams-Sonoma
In his next interview, Cramer spoke with Laura Alber, president and CEO of Williams-Sonoma (WSM) – Get Report, the home furniture retailer that saw its shares up 7.9% today, after what Cramer called the best retail quarter he saw.
Alber said her team has shown incredible dexterity in the face of the pandemic. While they always knew that e-commerce would be their strength, they had no idea that the transition would come so soon. Online sales grew during the quarter by 46% and now account for 76% of total sales.
That is not to say that physical stores are not important. Alber said their stores are experimental: They provide omni-channel services and also act as mini-distribution centers supporting their digital-first priorities. Williams-Sonoma will eventually have fewer but better stores, Alber added, and they have a lot of leverage with their lease negotiations.
Finally, Alber noted that in addition to working from home, people also study at home. Williams-Sonoma will expand its range of items to help students make this transition even easier.
Advances in testing
In his No-Huddle Offense segment, Cramer pointed to today’s news from Abbott Labs (ABT) – Get Report that it has received FDA approval for its rapid COVID-19 test and the simultaneous announcement that our government is purchasing 150 million units.
Cramer said so far, the only strategy of our country to combat COVID was to wait for a fax. But now we can soon have Abbott’s rapid test that can deliver a result in just 15 minutes without the need to send a sample to a lab. Abbott’s test even comes with its own app for your phone, called Navica, which lets you share your results.
It will take a while for these tests to be easily available, but Cramer said they, if they are, can give travel and leisure a much-needed boost and give us all some rest.
Lightning Round
Here’s what Jim Cramer had to say about some of the stocks that callers offered during the Mad Money Lightning Round Thursday night:
Generac Holdings (GNRC) – Get Report: “The stock is up enormously, but it’s not too late. Our electricity grid is failing and Generac is the answer.”
Energy transport (ET) – Get Report: “No, no, that balance is terrible. Let’s skip that.”
Switch (SWCH) – Get Report: “It’s good. It’s a good firm. I like it.”
Centene (CNC) – Get Report: “This is a political year, so this has cooled down. I do not want you to leave this.”
Cisco systems (CSCO) – Get Report: “This is not their moment, but they have a great return, so I think you are good.”
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At the time of publication, Cramer’s Action Alerts PLUS held a position in ABT.
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