Never forget that the stock market has a very short memory, Jim Cramer cautioned his Mad Money viewers Friday. Just because the markets staged a strong rally Friday, rest assured that next week's sessions will depend on a totally different new cycles.
Next, on Tuesday, we hear from UnitedHealth Group (UNH) and Johnson & Johnson (JNJ) . Cramer said investors have given up on health insurers and J&J needs to put its baby powder-talc issues behind them. Cramer was bullish on IBM (IBM) , CSX (CSX) and United Airlines (UAL) , as well as Netflix (NFLX) , all of which also report.
Wednesday brings more earnings, this time from PepsiCo (PEP) and Morgan Stanley (MS) , two Cramer favorites, along with the fabulous Abbott Labs (ABT) and ASML (ASML) . Cramer said he'd buy the first three, but preferred Lam Research (LRCX) over ASML.
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Executive Decision: Bristol-Myers Squibb
Caforio said the today's shareholder vote brings the two companies one step closer to a deal. He remained confident that the deal will be closed in the third quarter of this year.
Caforio continued by explaining that the real value behind the combined company are its pipelines, which will deliver six new drugs in the first two years. Three of those have already be filed with the FDA, he noted, which is great news for both patients and shareholders. The combine company, he said, will provide sustainable growth for the long term.
When asked about the financial side of the deal, Caforio said Bristol will still maintain a lot of financial flexibility with strong cash flows to pay down debt quickly, starting from day one.
Cramer remained a believer in the Bristol-Myers story, saying the time to buy the stock is not when it's rallying, but when shares go on sale like they are right now.
Cramer and the AAP team are focusing on earnings this week. 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.
Pinning Down Pinterest
There's another big IPO coming next week, and Cramer's took a look at whether Pinterest will become another Lyft (LYFT) or if it will make shareholders a lot of money.
Cramer said that Pinterest is a neat concept and is a great platform for advertisers. This visual discovery search engine is almost profitable and grew its user base 22% last year. The company has accelerating revenue growth, expanding gross margins and is seeing strong growth as it expands overseas.
But as with all IPOs, Cramer said the decision whether to buy Pinterest comes down to valuation. At the expected price of $17 a share, Pinterest would be valued at a discount to Snap (SNAP) , but at a slight premium to Twitter (TWTR) . Additionally, at $17 a share, the deal would be priced less than the company's latest round of funding, giving shares a solid foundation on which to build.
Cramer said this price seems like the perfect balance for Pinterest, and those who can get in on the IPO itself should most certainly do so. He advised against buying shares in the aftermarket, however, as things could get dicey as they did for Lyft just a few short weeks ago.
Off the Tape: The Retail Sector
In his "Off The Tape" segment, Cramer sat down with Matt Boss, Managing Director of Dept. Stores and Softlines at JPMorgan Chase and the organizer of this week's JPMorgan retail conference.
Boss said there's a lot to like in the retail sector right now. He said many retailers are seeing tough comparisons from 2018, which included tax reform tailwinds, but after a slow start to the year due to weather, the consumer has returned. Boss added that this year's conference saw a lot of confidence in the consumer and the big themes included value, convenience and innovation.
Among the standouts for Boss were discounters like Five Below (FIVE) , Dollar General (DG) , Ollie's Bargain Outlet (OLLI) and Burlington Stores (BURL) , all long-time Cramer favorites as well. When it comes to growth, Boss said Lululemon Athletica (LULU) continues to deliver, while the leader in the innovation camp is Nike (NKE) .
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Worried You Missed the Move?
Cramer said he remains a big fan of Disney, but wouldn't chase it at these levels. Instead we suggested buying Viacom (VIA.B) or CBS (CBS) , or perhaps Apple (AAPL) or Netflix (NFLX) , both of which traded lower today.
As for JPMorgan, Cramer said this remains the best bank to own as shares are inexpensive. Finally, Cramer said it's too late to buy Anadarko, but there are certainly other oil producers that could be takeover targets.
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At the time of publication, Cramer's Action Alerts PLUS had a position in C, GS, JPM, UNH, JNJ, ABT, LRCX, HON, DHR, FIVE, KSS, DIS, AAPL.