Skip to main content

Accentuate the Positive: Cramer's 'Mad Money' Recap (Monday 1/11/21)

Jim Cramer says this market simply refuses to wallow in things that are going wrong and instead is focused on what is going right or, even better, what could go right.
  • Author:
  • Publish date:

This stock market chooses to accentuate the positives and ignore the negatives, Jim Cramer told his Mad Money viewers Monday. And in that kind of market, Cramer said, stocks can head higher even when it appears they should be heading lower.

The news cycle was full of negatives before the market opened Monday morning, yet despite social media stocks coming under fire and bitcoin plunging 25%, the buyers still stepped in. 

Cramer recalled trying to shop at a Best Buy  (BBY) - Get Best Buy Co. Inc. Report store this weekend, only to find long lines outside the building as the company limited the number of shoppers in their stores. Normally, a retailer actively discouraging shoppers from shopping would be a reason to sell. But in this market, shares ended the day higher.

Shares of Twitter  (TWTR) - Get Twitter Inc. Report ended down only slightly, Cramer noted, despite the company banning one of its biggest accounts, President Donald Trump. Then there's Ford Motor Co.  (F) - Get Ford Motor Company Report, the automaker that announced a $4.1 billion charge to end manufacturing in Brazil. That stock didn't skip a beat, shares of Ford were up a quick 3%.

How long will this euphoria last? Cramer said asking that question will only keep you out of the market and away from these incredible gains.

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.

Executive Decision: Medtronic

In his first "Executive Decision" segment, Cramer spoke with Geoff Martha, chairman and CEO of medical device maker Medtronic  (MDT) - Get Medtronic plc. Report, which has seen its shares under pressure during the pandemic, despite a pent-up demand for elective procedures.

Martha explained that Medtronic has moved beyond simple devices and is now implanting real computers inside of patients. These tiny computers assist with things like pacing their heart or talking to their brains to mitigate the symptoms of Parkinson's disease.

Up until now, Medtronic hasn't been doing much with the data collected from their sensors and devices. But that is about to change, Martha said. Now they aren't just talking to a patient's brain, they can listen to it as well and in the hopes of eventually being able to personalize the conversation.

These advanced therapies require a lot of work and capital, which is why Medtronic has increased their research and development and shifted resources to speed up their therapies. They've also levered the company's balance sheet, making seven recent acquisitions to further bolster their efforts.

All the while, Martha said Medtronic remains committed to their dividend and rewarding their shareholders.

Executive Decision: Bristol-Myers Squibb

For his second "Executive Decision" segment, Cramer spoke with Giovanni Caforio, CEO of Bristol-Myers Squibb  (BMY) - Get Bristol-Myers Squibb Company Report, the drugmaker that saw its shares up 4% Monday after presenting at the annual JP Morgan Healthcare Conference.

Caforio said Bristol-Myers Squibb is one of the leading companies in the world in cardiovascular, with the leading anti-coagulent drug, Eliquis. 

The company expanded its leadership position in cardiovascular with the acquisition of MyoKardia, which extends Bristol-Myers Squibb's cardiovascular franchise beyond Eliquis with the promising drug Mavacamten.

Caforio noted that Bristol-Myers Squibb has strong free cash flows, which allow them to fuel acquisitions as well as develop transformational medicines that other companies simply cannot.

Scroll to Continue

TheStreet Recommends

Caforio was also bullish on Bristol's oncology efforts. He said Opdivo, the company's treatment for lung cancer, is among the leading treatments in the space and they have many more exciting things to come.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Executive Decision: Emergent BioSolutions

For his final "Executive Decision" segment, Cramer checked in Robert Kramer, President and CEO of Emergent BioSolutions  (EBS) - Get Emergent Biosolutions Inc. Report, the contract manufacturer that's seen its shares plunge $40 from their August highs. Shares rose 1.7% Monday, however, after the company also presented at the JP Morgan Healthcare Conference.

Kramer explained that Emergent provides several different services, from devices to therapeutics to contract development to packaging for companies big and small. The company operates nine manufacturing facilities and has been contributing to Operation Warp Speed to help with COVID vaccine production and distribution.

When asked about Warp Speed, Kramer was positive on the public-private partnership program. He said it combined both science and manufacturing expertise and allowed millions of doses to be produced "at risk" before final approvals were granted. Once the vaccines received approval, they were immediately made available.

The Power of EVs

In his "No Huddle Offense" segment, Cramer said investors in Tesla  (TSLA) - Get Tesla Inc. Report, the stock, often forget about Tesla the company. For years, Tesla's supremacy in electric vehicles was unchallenged. But now, Nio  (NIO) - Get NIO Inc. American depositary shares each representing one Class A 蔚来汽车 Report in China, could be giving the company a run for its money. That news sent shares of Tesla plunging 8%.

But with electric vehicles accounting for just 3% of the auto market, Cramer said it's not a zero-sum game. Tesla still can't make enough cars to meet demand, and shareholders are often making a statement with ownership. They want to hasten the death of the auto industry.

The shift to electric vehicles is among the greatest investment waves in our lifetime, Cramer said, and investors would be remiss to not be part of it.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:

Bluebird Bio  (BLUE) - Get bluebird bio Inc. Report: "If you're willing to take the risk of a speculative stock, I'll bless it."

General Electric  (GE) - Get General Electric Company Report: "I think the business is really turning around. They are actually starting to do well."

Starbucks  (SBUX) - Get Starbucks Corporation Report: "I think Starbucks is great. Let's wait for it to pull back a bit. I like the stock very much."

Uber Technologies  (UBER) - Get Uber Technologies Inc. Report: "This is moving on UberEats. I think you're in great shape."

SunPower  (SPWR) - Get SunPower Corporation Report: "It's had a big run but do not sell it. It will do well in the future. "

BioCryst Pharmaceuticals  (BCRX) - Get BioCryst Pharmaceuticals Inc. Report: "They made a lot of promises that didn't come true. Let's talk to them before we decide."

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.