Jim Cramer in his monthly call with the Action Alerts PLUS club members said that amid the coronavirus pandemic we find two sets of investors: those expecting the economy to expand and those expecting it to contract, "especially if we don't get a deal from Washington. ...”
AAP strives to “make consistent money without taking on a lot of risk” and find “stocks that can thrive in expansion and not get hurt badly in a contraction,” Jim says.
Why don’t we start … with the ones you can buy now if you share our bullishness on the possibility of expansion? … Let's talk DuPont. (DD) - Get Report Here's a company that's levered to housing, which we know is on fire; to nutrition, which we know they're selling, and plastics for devices like 5G phones – boy, is that hot – and, more important, autos. Now it's the latter that has us saying, believe it or not, it is now time to get bigger. …
Why? Because PPG, (PPG) - Get Report which makes paints for high-end cars, earlier this week preannounced a better-than-expected quarter. If you look at the fundamentals of PPG, you will find it's very similar to DuPont except the expectations are even lower for DuPont than PPG. And we have Ed Breen who's now running it. … He has lots of optionality when they offload the nutrition bio division to IFF -- gets a lot of cash in. I had [Action Alerts PLUS Senior Analyst] Jeff Marks with a fantastic note earlier this week about what can happen with DuPont. I suggest you buy it now.
Honeywell (HON) - Get Report is back and I am really glad that it is. Suffice to say we love it. And again, we're going to go to Jeff Marks on Honeywell and why it was put back in the portfolio. But not yet. Remember, these are the ones that I think you can buy now. And I know that a lot of you say, what can I buy right now with this recommended list.
How about Starbucks? (SBUX) - Get Report Starbucks is reinventing itself. You can't tell. It's done very quietly. It’s opening a lot of drive-through stores. It doesn't have that many yet. … And the brand new stores and retail spaces that are going begging right now [are] getting great rents, by the way. These stores will largely be for pickup because that's the best kind of business during a pandemic. China's still coming back -- more upside there. …
Think about this: Where could this go if Moderna, (MRNA) - Get Report J&J, (JNJ) - Get Report AstraZeneca (AZN) - Get Report announced, “It works”? I think it would not be at 79. I think it would be at 99. In a heartbeat. Can you wait? Can you wait until it's all clear? Absolutely not. You have to buy it ahead.