CELG, REGN, DPZ: Jim Cramer's Views

Cramer shares his views on why something could be up in biotech, restaurants and retail. Celgene, Regeneron and Domino's are among the stocks discussed.
By Jim Cramer ,

Jim Cramer shares his views every day on RealMoney.Click here for a real-time look at his insights and musings.

Cramer: Might Something Be Brewing in 3 Downtrodden Sectors?

Posted at 3:17 p.m. EDT on Wednesday, July 6, 2016

Either this is the countertrend rally of rare expectations or something is actually brewing in biotech, restaurants and retail.

Here are three segments that have been left for dead. We know biotechs have been hideous, a combination of political woes, a lack of takeovers and new drug approvals and a sense of political doom with either candidate. Nothing has let up on any front there, so that rally just seems like an oversold one.

The weakness in the restaurants is a function of minimum wages and a belief that the consumer's ardor with going out has cooled. I agree with the former -- it has gotten too expensive to staff -- but I also think the latter is untrue.

Retail? I have very mixed emotions, but every dog has its day.

Right now it is too early to tell if there is a turn, but you know when you see Celgene (CELG) - Get Report and Regeneron (REGN) - Get Report going up, Domino's (DPZ) - Get Report continuing to fly higher and Home Depot (HD) - Get Report up a couple that it can't be dismissed as a one-off move.

Action Alerts PLUS, which Jim Cramer co-manages as a chartiable trust, has no positions in the stocks mentioned.

Cramer: At a Certain Point, Enough Will Be Enough on Brexit

Posted at 8:39 a.m. EDT on Wednesday, July 6, 2016

At a certain point, enough is enough. At a certain point, everyone survives Brexit and the pound stabilizes and the outsized moves calm down.

At a certain point, I could argue that Britain transcends the EU and starts doing better, because it is not pulled down by German anti-growth policies. I say that because the GDP of Britain's been growing pretty darned well -- much better than that of the eurozone -- for the last 16 years and maybe, after it gets settled, it can return to that pace. I write that as someone who thought that Brexit -- and not a less contentious shift -- might have been the way to go, if there was a way to go.

I never blame anyone for voting for self-determination, but I do blame the Leave camp, as I have several times here, for not having the vision to spell out what has befallen this country and the continent since the vote.

Most important, at a certain point, someone here will stand up and say that we are the lucky beneficiaries of their issues, because of the flood of new capital here. Of course, we aren't set up like that. Lower rates and lower oil mean lower stock prices, and Brexit stands for both.

Plus, it is impossible for gold to go up and have the majority of stocks go higher, because that's never occurred. So the capital allocators would be scared out of their wits to go and buy, say, Honeywell (HON) - Get Report , when oil is down, gold is up, the dollar is up, and interest rates are lower, as if somehow they are very much tied together.

Anyway, we are letting Europe dictate our prices. We know that has been the case multiple times since 2010. We know that ultimately it's been wrong.

But we are still not close enough to "ultimate" for that bit of rationality to sink in. So prices go lower until they do!

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Cramer: Why It's Better to Have No Institutional Memory Whatsoever

Posted at 3:50 p.m. EDT on Tuesday, July 5, 2016

We are conditioned to be fearful of a 10-year bond yield this low. We are way beyond thinking, "This could be good for our country," or "This could spur more housing," or "This could allow more refinancing where it is possible."

At least today we recognized the value of the bond-equivalent stocks, which usually happens in one of these interest-rate plummets.

And, oh lord, wouldn't it be fabulous if the federal government woke up and sold $500 billion in bonds at these prices to alleviate the shortage and make it so the deficit would be less onerous. But that would be too clever to expect from anyone in government. It seems as if they all have some sort of aversion to ever being clever or frugal when it comes to debt, hence all of the short-term issuance, which is so stupid as to be breathtaking.

What we think about now is that something must be dreadfully wrong, and that there is going to be the Lehman moment I mentioned earlier. We never think about how only a brain-dead rich person or institution would invest in any large country's 10-year over in Europe. You know they do have money there. And they have money in the Middle East. Some even have to sell when a country is downgraded, as the U.K. was.

Nope, like with oil, when rates go down and oil goes down, it's considered bad; and when oil goes up and rates go up, it is considered good. In this environment it's better to have no institutional memory whatsoever lest you lose a huge amount of money remembering what used to be good and is now bad.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Action Alerts PLUS

, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

Loading ...