In the last episode of Mad Money, Jim Cramer said before you join the trading revolution, put down the slingshot and pick up the annual report. Here are his 7 tenets of smart trading.
TheStreet's Katherine Ross and Cramer are talking about the earnings of Chipotle and AbbVie as well as gaps that need to be addressed in GameStop's strategy.
Chipotle: Buy Or Sell?
Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report said Tuesday that digital sales rose 177% in the fourth quarter to account for 49% of all revenue in the period, even as earnings per share missed analyst estimates.
Cramer said investors would benefit if they buy the stock now as it's going to be a major reopening play. "They are having 11% comparable sales numbers on top of a remarkable quarter last year. The margins are going to explode here once they are able to open up stores."
AbbVie: Buy Or Sell?
Cramer said Abbvie is a buy because they have two drugs that are selling incredibly well -- Skyrizi and Rinvoq. "They will be able to dodge the biggest patent cliff in history. Humira is going to end up doing $240 billion, that's the largest drug ever. It's got 5% yield and sells eight times earnings."
GameStop: Buy Or Sell?
Cramer said he was hoping that GameStop would layout a turnaround plan as opposed to controlling the narrative with news they'd like to share which, he added, was suboptimal.