FuelCell – Escaping the Index: Cramer’s ‘Mad Cash’ Recap (Wednesday 11/18/20)
In the present day, we noticed the facility of constructive considering, Jim Cramer instructed his Mad Cash viewers Wednesday. As stocks headed decrease, buyers welcomed the transfer, which lastly gave them likelihood to purchase.
Again within the outdated days, huge macro occasions used to matter, Cramer defined. In truth, almost half of a stock’s efficiency had nothing to do with the corporate itself, however quite from its sector and the financial system at giant. However in in the present day’s market, buyers are as soon as once more centered on particular person stocks.
Make no mistake, index funds are nonetheless very fashionable, Cramer added, however the cash is just flowing into stocks. Rates of interest stay low, giving buyers few different alternate options for long-term progress.
The actual driver for investing in particular person stocks is zero-commission buying and selling, Cramer stated. It has lastly grow to be straightforward and reasonably priced for buyers to select up their favourite stocks. And with so many stocks heading greater, it is arduous to go mistaken.
That is why the market now not strikes in lock-step to macroeconomic occasions, just like the pandemic or employment charges. So long as rates of interest stay low, stocks will proceed to be the one recreation on the town.
Cramer and the AAP crew are taking a look at all the pieces from earnings and tariffs to the Federal Reserve. Discover out what they’re telling their funding membership members and get in on the dialog with a free trial subscription to Motion Alerts Plus.
Don’t miss Cramer’s greatest, day by day, with quick, actionable methods: StreetLightning.
Govt Resolution: Teladoc
In his first “Govt Resolution” phase, Cramer welcomed again Jason Gorevic, CEO of Teladoc (TDOC) – Get Report, the telemedicine supplier that is seen its shares stall in latest weeks after the corporate introduced a merger with Livongo Well being (LVGO) – Get Report.
Gorevic stated that Teladoc has seen an unbelievable transformation this 12 months. At the start of the 12 months, they had been combating for consciousness, however because the pandemic hit, the moved by means of the acceptance section and proper into the expectation section. Sufferers who’ve tried telemedicine do not return to the ready room, he stated. Sufferers need, and anticipate, to have choices.
Gorevic added that with the acquisition of Livongo, Teladoc has a powerful breadth of companies and is really the one international healthcare supply platform. Roughly 18% of their enterprise now comes from abroad and outdoors the U.S.
Teladoc is proud to be increasing entry for psychological well being companies across the globe. Gorevic stated psychological well being is a crucial, however underutilized, a part of our healthcare system and one which lends itself to telemedicine.
Govt Resolution: Biohaven Prescription drugs
For his second “Govt Resolution” phase, Cramer additionally spoke with Vlad Coric, CEO of Biohaven Prescription drugs (BHVN) – Get Report, makers of the breakthrough migraine drug, Nurtec ODT. Shares of Biohaven have tripled since Cramer final checked in again in April.
Coric stated they’ve seen explosive progress in Nurtec since its debut, with prescriptions surging over 200,000 to this point. Sufferers are loving that Nurtec works quick and is lengthy lasting.
When requested how the drug works, Coric defined that Nurtec is a focused remedy that zeroes in on the ache receptors for migraines and stops the ache, and cascading signs, quick. He referred to as the drug “greatest is class,” and famous that it lasts for as much as two days.
Biohaven is presently awaiting FDA approval for Nurtec to additionally grow to be the primary drug permitted for the prevention of migraines as nicely. The preventative model is identical drug and the identical dose, however it is going to be permitted for each different day doses to knock out migraines earlier than they begin.
On Actual Cash, Cramer keys in on the businesses and CEOs he is aware of greatest. Get extra of his insights with a free trial subscription to Actual Cash.
Comply with the Expertise
The place the cash goes, the expertise typically follows, Cramer instructed viewers, as he modified his tune on hydrogen gas cells.
For years, hydrogen gas cells have been a sure-fire strategy to lose cash. Tesla’s (TSLA) – Get Report Elon Musk is infamous for referring to gas cells as “idiot’s cells” in addition to “totally silly.” However in the present day, Plug Energy (PLUG) – Get Report, makers of gas cell powered forklifts, raised an extra $845 million, in a deal that was cheered by Wall Street. Shares of Plug Energy are additionally up over 600% for the 12 months. Maybe, Cramer stated, gas cells aren’t a pipe dream in any case.
Plug Energy beat on earnings, has tons of massive clients like Amazon (AMZN) – Get Report and Walmart (WMT) – Get Report, and the corporate has various positives to look ahead to. First, renewable vitality will definitely be extra favored by a Biden presidency. Renewable vitality can also be getting quite a bit cheaper, which is precisely what inexperienced hydrogen must be worthwhile. That is in all probability why huge firms like Linde (LIN) – Get Report are making investments into inexperienced hydrogen. Lastly, hydrogen may be a part of the reply for our vitality storage drawback. Photo voltaic panels can energy the grid by day whereas additionally making hydrogen that may energy us at evening.
The Race to $10
Somewhat over 5 weeks in the past, Cramer wagered that within the race to $10 a share, Ford Motor (F) – Get Report would seemingly beat General Electrical (GE) – Get Report to the end line. Seems, GE pulled out a shock win.
Ford’s been on hearth these previous few weeks. The Robinhood merchants proceed to pile into the stock. And clients are loving Ford’s new lineup of automobiles, together with the all-electric Mustang and F-150 pickup truck.
So how then did GE rocket to $10 a share? In a phrase, Boeing (BA) – Get Report. With the 737Max now cleared to fly and a COVID vaccine on the way in which, General Electrical is about to surge together with the remainder of the aerospace business.
Here is what Cramer needed to say about a few of the stocks that callers provided up through the Mad Cash Lightning Spherical Wednesday night:
MGM Resorts (MGM) – Get Report: “I really feel strongly that as a result of China is coming again. We should be in Wynn Resorts (WYNN) – Get Report.”
Vroom (VRM) – Get Report: “I like Lithia Motors (LAD) – Get Report and Carvana (CVNA) – Get Report and I am sticking with these two.”
Tattooed Chef TTCF: “I like Past Meat (BYND) – Get Report and that one has been powerful. There are too many firms on this space. The straightforward cash has been made.”
Texas Devices (TXN) – Get Report: “I like Texas Devices. It has been round perpetually and it is for me.”
DraftKings (DKNG) – Get Report: “I am saying sure to DraftKings.”
Search Jim Cramer’s “Mad Cash” buying and selling suggestions utilizing our unique “Mad Cash” Stock Screener.
To look at replays of Cramer’s video segments, go to the Mad Cash web page on CNBC.
To enroll in Jim Cramer’s free Booyah! e-newsletter with all of his newest articles and movies please click on right here.
On the time of publication, Cramer’s Motion Alerts PLUS had a place in AMZN.