The stock market is not a proxy for our economy, it is a proxy for big business, Jim Cramer told his Mad Money viewers on Thursday, and in a world where small businesses are being phased out by COVID-19 restrictions. , big companies are roaring. Cramer said the current strong non-farm payroll numbers had something for everyone, and his game plan for next week does, too.
The week will start on Monday with markets digesting the latest COVID-19 numbers, but Wall Street won’t mind as investors alternate at will between stay-at-home stocks and recovery stocks.
On Tuesday we will make a profit from Paychex small business payroll processor (PAYX) – Get report And Cramer said the company may be doing better than expected as the economy recovers. We’ll also hear from another Cramer favorite, Levi’s (LEVI) – Get report, which is moving strongly towards direct consumer sales.
Next on Wednesday we will hear from Bed Bath & Beyond. (BBBY) – Get report, a non-essential retailer that needs a response plan as it struggles for survival.
Thursday will see Walgreens Boots Alliance earnings (AMB) – Get report, the pharmacy chain that continues to fight Amazon (AMZN) – Get report. Finally, on Friday, we will have another reading on the economy with the latest producer price index, which could also show a stronger recovery than expected.
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Executive decision: Apeel Sciences
In his first “Executive Decision” segment, Cramer welcomed James Rogers, founder and CEO of Apeel Sciences, the California-based company that uses food to preserve food, helping our nation’s food supply be cooler and more durable.
Rogers explained that food waste is an invisible tax on our food system, costing the US more than $ 2.6 trillion annually. Apeel technology uses food waste to create food coatings for products like lemons, limes, oranges, apples, and avocados that help these products last longer on store shelves. The company has offices around the world that support food providers and has partnered with grocery stores like Kroger. (KR) – Get report.
Rogers noted that COVID-19 has revealed the fragility of our food supply. He said it doesn’t take much, just a few changing habits or labor shortages, to interrupt him. That is why technologies like Apeel are crucial to support people and our planet.
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When to count your blessings and sell
Don’t turn big profits into big losses, Cramer told viewers. When you make big profits on a speculative stock, count your blessings and sell. Cramer said it’s time to rattle the record on two early-stage biotechnologies, Novovax (NVAX) – Get report and Inovio Pharmaceuticals (INO) – Get report, two companies working on a COVID-19 vaccine.
The problem with vaccines is that they don’t make a lot of money, Cramer reminded viewers, and with almost all of the pharmaceutical companies working on COVID-19, there are likely to be big losers in this race for a cure. Novovax shares rose 1.951% during the year, with Inovio up 550% so far in 2020. Cramer said those gains are worth it.
Novovax is not a young company and has not had a successful new vaccine in years. Inovio is working on many different vaccines, but has been plagued with setbacks and delays. Cramer said that while he liked both companies at the lower levels, the boom-bust vaccine cycles will soon end and he won’t want to have a momentum stock when he loses his momentum.
Accelerating digital transformation
Shares of the cloud, technology and cybersecurity continue to rise and this week we found out why, Cramer told viewers, because Accenture (ACN) – Get report He gave us an update on exactly what is happening in the world of business technology.
When Accenture reported its earnings, they confirmed everything we had already suspected, that the pandemic has forced companies to accelerate their digital transformation plans and migrate to the cloud even faster than before. Cramer said we could see changes from three to five years in just a few months.
Accenture saw the force across the board, including travel, retail, energy, aerospace, and industry, all of which are adjusting to our new home economy. The company called the past few months the biggest change in human behavior they’ve ever seen, forever changing the way companies relate to their customers and employees.
Invest in the long term
In his “No-Huddle Offense” segment, Cramer pleaded with viewers to take advantage of the gains they have made on speculative penny stocks and to start investing really long-term. Speculative stocks don’t go up forever, he said, and now is the time to sell.
What should investors do with their earnings? Cramer suggested that the first $ 10,000 be put into a low-cost S&P 500 index fund that will serve as the core of his new portfolio. After that, he advises investing in high-quality companies like Amazon, Tesla (TSLA) – Get report and Shopify (STORE) – Get report using the fractional shares that are now offered in many online brokers. Fractional stocks allow you to invest any amount you can and you can do it regularly, even every week, to maximize your profits.
Investing in large stocks may not be as exciting as penny stocks, Cramer concluded, but in the long run, it will be much more profitable.
Ray round
Here is what Jim Cramer said about some of the actions offered by callers during the “Crazy Money Ray Round” on Thursday night:
Vroom (VRM) – Get report: “Used cars are on fire and this is a good company. This is a good one.”
Archer-Daniels-Midland (ADM) – Get report: “This action has done nothing. Buy AGCO (AGCO) – Get report, this not.”
Green Point (GDOT) – Get report: “If it’s a digital bank, it’s going up. I still prefer PayPal (PYPL) – Get report and square (SQ) – Get report“
WPX Energy (WPX) – Get report: “I do not recommend any oil reserves. None.”
ANGI Homeservices (ANGI) – Get report: “People are beginning to understand this situation. I want you to stay a long time.”
American tower (AMT) – Get report: “I would change American Tower and go with Crown Castle (CCI) – Get report“
Starwood Property Trust (STWD) – Get report: “This is a suboptimal situation.”
Starbucks SBUX: “Everyone hates Starbucks, but the drive-thrus is good.”
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At the time of publication, Cramer’s Action Alerts PLUS had a position at AMZN, SBUX.
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