This is the week we find out if the real world is impacting the world of stocks, Jim Cramer told his Mad Money viewers on Monday. Today, we saw only a small preview, Cramer said, but if the downtrend continues, things could get ugly.
Rubber will find its way tomorrow when we make a profit from three banks, JP Morgan Chase (JPM) – Get reportWells Fargo (WFC) – Get report and Citigroup (C) – Get report. Both JPMorgan and Wells Fargo could have bad loans, with Wells Fargo being especially vulnerable. Citigroup has already suspended its buyback, eliminating one of the main reasons for owning the stock.
We will also hear from Delta Air Lines (DAL) – Get report, but Cramer suggested owning American Airlines (AAL) – Get report instead.
On Wednesday, we will hear from another financier, Goldman Sachs (GS) – Get report, an Action Alerts PLUS holding company and a company that Cramer said has the firepower to resist the effects of the pandemic. He was also optimistic at UnitedHealth Group (UNH) – Get report, the health plan provider who has benefited from the delayed medical procedures.
Thursday brings profits from Bank of America (BAC) – Get report and Morgan Stanley (em) – Get report and Cramer was optimistic on both names. He was also bullish on four other earnings reporting, namely Johnson & Johnson (JNJ) – Get report, Taiwan Semiconductor (TSM) – Get report, Dominos Pizza (DPZ) – Get report and Netflix (NFLX) – Get report.
Finally, on Friday, Cramer said he was concerned about earnings at BlackRock. (BLK) – Get reportbut would be a buyer for First Horizon National (FHN) – Get report, which is out of 46% for the year and now yields north of 6%.
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Crown Castle International
What should investors do with their shares of the cell tower operator, Crown Castle? (CCI) – Get reportNow that activist investors Elliott Management have taken a $ 1 billion stake in the company and are demanding change? Cramer chimed in with her opinion.
Crown Castle’s management recently appeared on Mad Money and told a great story. The company is one of the largest cell tower owners in the country and has also been investing heavily in fiber and small cell locations to support the upcoming 5G transition. It is with the latter that Elliott has struggled.
Crown Castle has invested $ 16 billion in its fiber business, money Elliott said would have been better spent investing in faster-growing cell towers. Cramer said he cannot argue that the money would have generated better returns by investing in towers, but added that Crown Castle now has a huge advantage over its rivals when it comes to small cell locations. He said the company must do a better job explaining its strategy and must come to a compromise with Elliott.
As for the shareholders, they benefit in any way, Cramer concluded. He said Elliott has an excellent record, as does the management of Crown Castle.
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What is new in the masks?
In the fight against COVID-19, one thing is clear, masks are one of our most effective weapons. That is why Cramer met with Mark Benioff, President and CEO of Salesforce.com. (CRM) – Get report, Peter Diamandis, founder of XPRIZE, and Darius Adamczyk, President and CEO of Honeywell (HON) – Get report, to discuss a new contest to develop the next generation of face masks, which everyone will want to wear.
Benioff noted that if everyone in the US wore a mask for just three weeks with 100% compliance, COVID-19 could be removed from our country. But people have a lot of trouble with our current masks, calling them hot, uncomfortable, and hard to wear.
That’s why Diamandis said XPRIZE has created a contest to encourage young people to submit their mask designs that are functional and culturally cool to wear. Everything is crazy until it becomes a breakthrough, he said.
Adamczyk added that the N95 masks Honeywell makes are the most effective in stopping the spread of COVID-19 but, he admitted, they are not overly comfortable and certainly not stylish. That’s why he joined the contest to put into production the next generation of masks that everyone will want to wear.
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At the time of publication, Cramer’s Action Alerts PLUS had a position in JPM, GS, JNJ.
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