Skip to main content

Cramer's Mad Money Recap 12/1: Disney, PayPal, Citigroup

Jim Cramer says there are stock bargains hiding in plain sight. Don't miss this buying opportunity.
  • Author:
  • Updated:
    Original:

Is the stock market too expensive? Jim Cramer told his Mad Money viewers Wednesday that if they only look at the averages, they'll probably think so. But there are a lot of bargains out there, hiding in plain sight, and if you wait too long, you'll regret missing this incredible opportunity.

There's a big difference between a broken company and a broken stock, Cramer reminded viewers. Many stocks are down, but they shouldn't be counted out.

Walt Disney Co.  (DIS) - Get Walt Disney Company Report is one company that fits the bill. Shares of Disney have plunged $60 from their highs, but this stock won't be this low forever. Now is the perfect time to start a position.

On Action Alerts PLUS, Bob Lang and Chris Versace are talking about the Federal Reserve, inflation and interest-rate hikes; plus, they boosted their price target for Apple  (AAPL) - Get Apple Inc. Report. Find out why and get in on the conversation with Action Alerts PLUS.

Next is PayPal  (PYPL) - Get PayPal Holdings, Inc. Report, the payments processor that's down 23% year-to-date, despite business remaining strong. The same can be said for Mastercard  (MA) - Get Mastercard Incorporated Class A Report, which just boosted its dividend by 11%, but no one seemed to care.

Finally, there's Wynn Resorts  (WYNN) - Get Wynn Resorts, Limited Report, which dipped another 6.1% Wednesday. Wynn has a valuation of just $8.8 billion, despite the fact it would cost $13 billion to rebuild all of its properties from scratch.

Still looking for more investment ideas? Cramer was also bullish on Williams-Sonoma  (WSM) - Get Williams-Sonoma, Inc. Report, which has fallen $36 from its highs and is now one of the cheapest retailers out there. He also recommended American Express  (AXP) - Get American Express Company Report and Citigroup  (C) - Get Citigroup Inc. Report.

You just need to have a little patience when buying these stocks. We don't know where the bottom will be, so buy some shares now and buy more if Omicron causes the market to fall more. Just don't wait too long, or you might regret it.

Executive Decision: Unity Software

In his first "Executive Decision" segment, Cramer spoke with John Riccitiello, CEO of Unity Software  (U) - Get Unity Software, Inc. Report, the gaming software engine that just completed its acquisition of special effects maker Weta Digital. Shares of Unity plunged 12% Wednesday along with the broader markets.

Riccitiello explained that Weta Digital is best known for its special effects work in the "Lord of the Rings" trilogy, but the company has an expansive set of digital tools that can be used in everything from films to gaming. Their toolkit includes everything from world building to lighting to texturing of complex objects like hair and fur.

Riccitiello added that as the computer becomes the primary tool used in film- and game-making, tools like those offered by Weta allow developers and artists to create things they never thought possible.

Off the Charts

There are no sure things on Wall Street, but when it comes to the calendar, there are some seasonal patterns that come awfully close. That's why Cramer checked in with colleague Larry Williams in his "Off The Charts" segment to see if the so-called Santa Claus Rally is for real.

According to Williams, the notion of a year-end rally often holds up. In the depths of the financial crisis in 2008, stocks managed to rally in December. The same was true in 2007 and in 2009. Often these rallies begin in the middle of the month, as it did in 2015, and they end the year strong, as we saw in 2019.

Williams noted that even in 1987, just weeks after the market crash, December was a bright spot for investors.

Based on Williams analysis, the best time to buy stocks is the fourth-to-last trading day of the year. That pattern has held up 22 of the past 23 years, which is as close to a sure thing on Wall Street as you're likely to get.

TheStreet Recommends

Executive Decision: Karuna Therapeutics

In his second "Executive Decision" segment, Cramer spoke with Dr. Steve Paul, chairman, president and CEO of Karuna Therapeutics  (KRTX) - Get Karuna Therapeutics, Inc. Report, the clinical-stage biotech working to develop best-in-class treatments for patients suffering from schizophrenia and other psychotic disorders.

Paul explained that many of the treatments used to treat schizophrenia and Alzheimer's disease today are similar to ones developed 70 years ago. That's why Karuna is so excited about their therapies, which have shown promising results without the significant side effects of those older therapies.

Karuna currently has four Phase III trials underway and expects the first results to begin coming in by mid-2022.

Paul noted that Karuna's drugs do not aim to slow the progression or reverse schizophrenia, but rather to treat the debilitating symptoms of hallucinations, delusions and agitation. These are what cause the majority of hospitalizations and often suicide in patients.

What if Things Get Better?

In his No-Huddle Offense segment, Cramer said while the market feels like it's on the cusp of a total meltdown, it's prudent to also consider what happens if things go right.

What happens if Omicron is containable, or if it's no worse than the other variants? What if our current vaccines work just fine on Omicron? And what would the world look like if Omicron is actually a blessing in disguise?

Based on what we know, Omicron may be more transmissible than the Delta variant, but it also may have milder symptoms. If these trends continue to be true, it's completely possible that Omicron will replace the more lethal Delta variant, as it already has in South Africa.

What would stocks look like if this were true? It would look a lot different than where stocks are trading today.

Lightning Round

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

Carnival Corp.  (CCL) - Get Carnival Corporation Report: "The best one is Norwegian Cruise Line  (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report. We can revisit Carnival later."

Fulgent Genetics  (FLGT) - Get Fulgent Genetics, Inc. Report: "This company is doing quite well. I think it's worth owning."

Canadian Pacific Railway  (CP) - Get Canadian Pacific Railway Limited Report: "This one has come down so far you need to buy it."

Insmed  (INSM) - Get Insmed Incorporated Report: "This is purely speculative. They're losing money. "

Decarbonization Plus Acquisition II  (DCRC) : "This is another SPAC that isn't working right now."

To sign up for TheStreet's free Daily Booyah! newsletter with all of the latest articles and videos please click here.