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Biden Portfolio: Cramer's 'Mad Money' Recap (Tuesday 10/20/20)

Some stocks that will work under a Trump administration also will work in a Biden portfolio, says Jim Cramer. He looks at which sectors and industries are poised to profit -- and which aren't.
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If you think Democratic presidential contender Joe Biden could win the election two weeks from now, there are a few stocks you should start adding to your portfolio, Jim Cramer told his Mad Money viewers Tuesday. Some of these names have been working under President Trump, Cramer noted, but some will see a big boost from Biden.

The first group Cramer highlighted were the solar stocks. Renewable energy is the future, he said, which is why investors are starting to flock to First Solar  (FSLR) - Get First Solar Inc. Report, Generac  (GNRC) - Get Generac Holdlings Inc. Report and Tesla  (TSLA) - Get Tesla Inc. Report for solar, storage and electric vehicles.

More on First Solar: 

The second group of stocks were the China stocks. Cramer said companies like 3M  (MMM) - Get 3M Company Report, Emerson  (EMR) - Get Emerson Electric Company Report and Caterpillar  (CAT) - Get Caterpillar Inc. Report will see big gains at the conclusion of our trade war with China. It will also be great news for those who do business in China. Cramer recommended stocks like Starbucks  (SBUX) - Get Starbucks Corporation Report, Nike  (NKE) - Get Nike Inc. Report and Apple  (AAPL) - Get Apple Inc. Report, as well as many of the semiconductor companies.

One group that might not be winners are the infrastructure stocks. Cramer warned that even if we see a democratic sweep and we pass an infrastructure bill, America has sadly forgotten how to build things. It might be a decade or more before that money actually gets spent. Companies like Vulcan Materials  (VMC) - Get Vulcan Materials Company (Holding Company) Report and Martin Marietta Materials  (MLM) - Get Martin Marietta Materials Inc. Report were not a part of Cramer's "Biden Basket" of stocks to buy.

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Executive Decision: Logitech

In his first "Executive Decision" segment, Cramer spoke with Bracken Darrell, CEO of Logitech International  (LOGI) - Get Logitech International S.A. Report, the computer and gaming peripherals maker that delivered earnings of $1.87 a share when analysts were only looking for 59 cents a share. Logitech shares rallied 15.7% on the news and are up over 100% for the year.

Darrell said that sales at Logitech have only gotten stronger as the pandemic continues. Logitech has a long history of making low-cost, but high quality products, he said, and they're applying that legacy to a whole new generation of innovative products.

When asked about increasing competition, Darrell welcomed the challenge. He said competition is a good thing and only makes you better. Logitech is always focused on the needs of their customers, he said, and they're ready and willing to compete with anyone.

Turning to the topic of video conferencing, Darrell noted that we are still in the early days of virtual meetings and virtual classrooms. In the beginning, people were doing whatever it took to simply get online. But now, they're getting comfortable with being on video and are outfitting their home offices for the long-term.

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Cannabis Outlook

If the Democrats sweep the election, is it time to finally buy the cannabis stocks? Not so fast, Cramer cautioned. Cannabis is not an easy place to invest.

There are only 11 states where recreational cannabis is currently legal, and 33 where it can be used for medical purposes. But at the federal level, cannabis is still illegal, Cramer noted. Would a Biden presidency change that? Cramer said he wouldn't bet on legalization, and even decriminalization would be a stretch. Making it easier for existing operators to operate, however, is likely.

Historically, betting on cannabis producers has been a losing hand. As soon as new markets open, supply increases, prices plummet and cannabis quickly becomes a commodity.

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TheStreet Recommends

Cramer said companies like Canopy Growth  (CGC) - Get Canopy Growth Corporation Report are promising because of its potential for cannabis-infused beverages. He also liked Grow Generation  (GRWG) - Get GrowGeneration Corp. Report, which sells hydroponic supplies. Lastly, he suggested Innovative Industrial Properties  (IIPR) - Get Innovative Industrial Properties Inc. Report, a REIT that specializes in medical cannabis properties and sports a 3.7% yield.

Where's the Bull?

There's always a bull market somewhere, Cramer tells viewers at the conclusion of every show. Tuesday night, he highlighted a new bull market: hygiene. After listening to the conference call at Procter & Gamble  (PG) - Get Procter & Gamble Company (The) Report and its overseas rival Reckitt Benckiser, Cramer said one thing is clear, people are obsessed with personal hygiene.

As Procter's management noted, hygiene is the foundation for a healthy lifestyle and once good habits are established, they are rarely reversed.

That's why sales are strong for Proctor's brands like Tide, Bounty, Dawn and Febreze. The same sentiments were shared by Benckiser, makers of Lysol, Vanish and AirWick, among others.

Cramer said the natural extension of the hygiene trade is to think of names like Colgate-Palmolive  (CL) - Get Colgate-Palmolive Company Report or Clorox  (CLX) - Get Clorox Company (The) Report, but the latter is a trade that's already played out. Instead, Cramer recommended L Brands  (LB) - Get L Brands, Inc. Report, purveyors of the ailing Victoria's Secret, but also Bath and Body Works, which now accounts for half of the company's revenues. Bath and Body Works makes L Brands an unlikely winner in the hygiene bull market.

No-Huddle Offense

In his "No Huddle Offense" segment, Cramer helped shine a light on the hard reality that while 17% of all white-owned businesses have shuttered due to the pandemic, that number is 41% for black-owned businesses and 32% for Latino-owned businesses. Cramer spoke with founder and CEO at FUBU and Shark Tank investor, Daymond John, to learn more about his upcoming Black Entrepreneurs Day.

John explained that many companies acknowledge that reality and wanted to do the right thing, it just took someone to get the ball rolling. John's partners in Black Entrepreneurs Day now include JPMorgan Chase  (JPM) - Get JP Morgan Chase & Co. Report, Cisco Systems  (CSCO) - Get Cisco Systems Inc. Report, PepsiCo  (PEP) - Get PepsiCo Inc. Report, UPS undefined and Robinhood.

Together, John said these partners all want to help minority businesses save their businesses and expand their businesses so they can become a lasting part of our economy and their communities.

Lightning Round

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

Livent  (LTHM) - Get Livent Corporation Report: "This is too speculative and I don't want you in it."

TG Therapeutics  (TGTX) - Get TG Therapeutics Inc. Report: "Do not sell this stock. I love what they're doing."

Velodyne Lidar VLDR: "No, no, you don't want to be in this one."

FireEye  (FEYE) - Get FireEye, Inc. Report: "I want you to buy Palo Alto Networks  (PANW) - Get Palo Alto Networks Inc. Report. That's the one you want."

Annaly Capital  (NLY) - Get Annaly Capital Management Inc Report: "No. We've been against this one. Don't get sucked in by that big dividend."

Sinclair Broadcast Group  (SBGI) - Get Sinclair Broadcast Group Inc. Report: "I've watched this one and I don't know what moves the needle for them."

Lithium Americas  (LAC) - Get Lithium Americas Corp. Report: "If you want mining, I'll send you to Barrick Gold  (GOLD) - Get Barrick Gold Corporation (BC) Report."

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