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Cramer's Mad Money Recap: Nucor, Linde, Ventas

Jim Cramer cautions against giving in to emotions or laziness. Discipline and homework are critical to a successful investing strategy.
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Deciding when to sell a stock is just as important as deciding when to buy it, Jim Cramer told his Mad Money viewers Monday. Don't let your emotions drive those decisions and don't fall victim to "lazy thinking."

Cramer diagnosed the market with a serious case of lazy thinking, or the inability to see when your negativity is blinding you to a good story.

Cramer explained how he recently purchased shares of steelmaker Nucor  (NUE)  for his charitable trust, Action Alerts PLUS, a few weeks ago on the hopes of a quick infrastructure bill. As the bill was delayed in Congress, shares tumbled, and when they eventually recovered, Cramer said he was quick to sell and pretend his initial exuberance never happened.

But that was lazy thinking, he said, as Nucor was still a great company, steel prices are up and the infrastructure bill is now even closer to being passed. Shares of Nucor were up another 3.3% Monday.

Over on Real Money, Cramer writes: "It's my job to try to teach you what are the best ways to make a lot of money without a lot of risk and often that means liking an idea more than just for a trade. Get more investing strategies from Cramer and the other money pros on Real Money.

There are plenty of cases of lazy thinking out there, Cramer continued. Many people still just assume the Federal Reserve will be forced to raise interest rates despite high unemployment. That's lazy thinking.

Others saw the weakness in stocks like the Air Products  (APD)  and assumed that weakness must apply to the entire sector, despite stocks like Linde  (LIN)  being far better companies. That's lazy thinking. And still others simply listen to money managers on TV, taking their opinions as gospel without doing their own homework. That's also lazy.

It's important to not fall victim to emotions or laziness, Cramer reminded viewers. Discipline and homework should always be a part of your investing strategy.

Get more trading strategies and investing insights from the contributors on Real Money.

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Infrastructure, Energy and Hydrogen

Now that the infrastructure bill looks likely to pass into law, Cramer checked in with energy analyst Rusty Braziel, founder and executive chairman at RBN Energy, to see what the bill could mean for clean hydrogen and the energy sector overall.

"This time, it looks real," Braziel began, noting that in order for the U.S. to meet its climate obligations, we need to have hydrogen fuels in our energy portfolio. Hydrogen is not just one fuel, however, it's actually three different fuels, he continued.

First is green hydrogen, which is made from air, water and renewable energy. There is also gray hydrogen, which is a byproduct of making natural gas. Gray hydrogen emits carbon as it's produced, which makes it dirty, but the hydrogen itself burns clean, making it better than coal, oil and natural gas. However, if you capture the carbon produced during manufacturing, then you have blue hydrogen, which sits in between gray and green on the scale of environmental friendliness.

What do all of these colors mean for you and me? Braziel said gray and blue is already being produced, but for green hydrogen to become mainstream for industries like long-haul trucking, then it needs the provisions and incentives that are in the infrastructure bill being debated in Congress right now.

It will take time for green hydrogen to finally come into fruition, Braziel concluded, but companies like Plug Power  (PLUG)  have already proven it can be done, we just need the incentives to finally get it down after decades of false-starts and promises. 

Executive Decision: Stitch Fix

In his first "Executive Decision" segment, Cramer spoke with Elizabeth Spaulding, CEO of Stitch Fix  (SFIX) , the online shopping service with shares down 24% for the year as online retailers have fallen out of style on Wall Street.

Spaulding said the mission at Stitch Fix hasn't changed and the company continues to transform the face of fashion retailing, replacing endless searching with data science and human stylists. She noted that online sales for fashion were 25% pre-pandemic and they're now 40% post-pandemic, as more and more consumers discover the benefits of using services like Stitch Fix.

Imagine a service where everything you see has been chosen just for you and, more importantly, is guaranteed to be your size. That's what Stitch Fix offers, she said.

Spaulding added that by using the data from their platform, Stitch Fix is able to see changes coming and shift their products to meet demand. During the pandemic, they saw the rise of work-from-home and athleisure, for example, and now they see the trends including a 300% uptick in vacation wear and a strong back-to-school season, she said.

Using their data, Stitch Fix is able to source and style faster than any other service.

Executive Decision: Ventas

For his second "Executive Decision" segment, Cramer also spoke with Debra Cafaro, chairman and CEO of Ventas  (VTR) , the medical REIT with shares up 17% for the year as senior housing makes a comeback post-pandemic.

Cafaro said that Ventas is benefitting from both internal growth and consolidation in their industry. Being an industry leader, Ventas was able to acquire New Senior  (SNR) , a deal which is expected to close before year end.

When asked about the senior living market, Cafaro noted that after getting hit hard at the beginning of the pandemic, now that vaccines are available, senior facilities have become among the safest places to be. All of Ventas' residents and staff are fully vaccinated, Cafaro said, which has led to five consecutive months of occupancy growth.

Cafaro was also bullish on their outpatient facilities. As the pandemic began and patients fled hospitals, outpatient facilities and offices were in demand. Now senior living is adding to that growth, making for a strong portfolio at Ventas.

This Bull Doesn't Get Any Respect

In his "No Huddle Offense" segment, Cramer told viewers that this bull market never gets the credit it deserves. So instead of obsessing over what could go wrong, he chose to list all of the things that could go right.

First, there are continuously strong earnings, despite rising prices and supply chain disruptions. Second, the Fed has to keep interest rates low thanks to rising COVID cases and persistent unemployment. Third, Cramer said there is still a lot of money on the sidelines that needs to be invested and lots of money that private equity needs to put to work soon.

Other things that could go right? Your stock could become a meme and get taken to new heights overnight. You never know where the memesters will strike next. Finally, Cramer said the stimulus from Washington and bearish hedge funds are helping to keep stock prices high.

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" Monday evening:

Lyft  (LYFT) : "I think Lyft had a better quarter than Uber  (UBER)  but this is a speculative segment."

Golden Nugget Online Gaming  (GNOG) : "I would ring the register. You had a very big day today."

Global Payments  (GPN) : "I think this is a good level to buy. These are very smart guys. I would pick some up."

Stem  (STEM) : "Buy, buy, buy. The infrastructure bill is terrific for these guys."

Mettler-Toledo International  (MTD) : "They make great instruments. The stock is always expensive because they're that good."

Teradyne  (TER) : "I think you should be in Agilent Technologies  (A) , which is the better place to be."

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