Too Soon to Tell: Cramer's 'Mad Money' Recap (Friday 12/13/19)

Jim Cramer's keeping a close eye on this Phase One trade deal with China and how it could affect earnings and the economy. Here's your game plan for next week.
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Now that we know more about the first phase of the trade agreement with China, we can go back to focusing on earnings, Jim Cramer told his Mad Money viewers Friday. Fortunately, his game plan for next week's trading is full of them.

Monday starts off the week without any quarterly reports, but Cramer said he'll instead be focusing on the details of the trade talks. He said Phase One seems to focus on agriculture, as the Chinese are desperate to stop food inflation due to a shortage of pork. But the Chinese have a long history of not living up to their promises, Cramer noted, which could become problematic later on.

On Tuesday, Cramer will be watching the earnings of FedEx  (FDX) - Get Report and Cintas  (CTAS) - Get Report. He said FedEx is still in a tough situation given its Chinese exposure, but Cintas will likely be terrific. 

Wednesday brings earnings from Paychex  (PAYX) - Get Report, Herman Miller  (MLHR) - Get Report and Micron Technologies,  (MU) - Get Report. Cramer was bullish on all three. General Mills  (GIS) - Get Report also reports, but Cramer preferred PepsiCo  (PEP) - Get Report.

Then on Thursday, we hear from ConAgra Brands  (CAG) - Get Report, Darden Restaurants  (DRI) - Get Report and Nike  (NKE) - Get Report. ConAgra has been volatile but tempting, Cramer said, while he remains bullish on Darden, a value stock, and on Nike.

Friday finishes off the week with Carmax  (KMX) - Get Report and Winnebago  (WGO) - Get Report, and with strong employment, Cramer felt both companies have room to run.

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.

Executive Decision: Anaplan

For his "Executive Decision" segment, Cramer spoke with Frank Calderoni, chairman and CEO of Anaplan  (PLAN) - Get Report, the cloud planning software provider with shares up over 90% for the year. 

Calderoni said Anaplan has seen four quarters as a public company and has delivered consistent growth through all of them. He said the digitization trend is accelerating throughout the world. Companies need help planning and making better decisions and that's what Anaplan provides. 

For consumer packaged goods companies and retailers, Amazon  (AMZN) - Get Report has set a very high bar, Calderoni said, and whether you're making cosmetics or beverages, everyone needs to streamline their operations to compete online.  

Cramer encouraged viewers to listen to Anaplan's conference call to learn more. 

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Costco Delivers

Why have all of the bearish predictions about tariffs and the trade war been so wrong? Cramer said investors can look at Costco  (COST) - Get Report for the answers. 

According to the bears, tariffs were supposed to decimate the margins of retailers like Costco and cost the American consumer thousands of dollars a year. But Costco is not only a superior operator, it has the scale and the business model to mitigate the effects of tariffs so far. If an item gets too expensive, they pressure suppliers to lower the cost. If pressures become too great, they source the item elsewhere, or replace it with a different item altogether. 

But even if Costco wasn't able to mitigate the price increases, the American consumer is flush with cash and hasn't had a problem paying a little extra for certain items. 

Costco is so good at what it does, the company has even been successful inside China. While most U.S.-based stores support 60,000 to 70,000 members, Costco's new Shanghai store already has 200,000 members. 

Costco is just one example of why tariffs haven't been the burden many have feared, Cramer concluded, and they're just one of many examples. 

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Executive Decision: Centene

In his second "Executive Decision" segment, Cramer sat down with Michael Neidorff, chairman and CEO of Centene  (CNC) - Get Report, the health plan provider that saw its shares slide 1.3% Friday on what was largely perceived as disappointing guidance.  

Neidorff explained the change in their guidance stemmed from North Carolina postponing one of their deadlines, which delayed $500 million in revenue for Centene. He said the situation was beyond their control, but doesn't affect any of their underlying businesses. 

Centene now provides health coverage for one out of every 15 Americans, but is still largely unknown on a national level. Neidorff said they will do more marketing to change that, but he assured Cramer that the communities they serve know them very well. 

When asked about antitrust concerns, Neidorff said that antitrust doesn't work the same with health marketplaces, as the states set the rates, the coverage standards and the number of players they want to allow. If a company gets too big, the states can simply add additional players. 

Shares of Centene are up 102% over the past three years.

Executive Decision: Biohaven Pharmaceuticals

For his final "Executive Decision" segment, Cramer sat down with Dr. Vlad Coric, CEO of Biohaven Pharmaceuticals  (BHVN) - Get Report, the biotech working on treatments for Alzheimer's and migraines. Shares of Biohaven are up 8% over the past month on positive news from its Phase Two Alzheimer's drug trial. 

Coric said we need to do better when it comes to treating Alzheimer's. That's why they're so encourages with their Phase Two results for those with mild to moderate symptoms of the disease. He said their treatment, Troriluzole, is proving effective at normalizing neurotransmitter levels in those patients. 

Migraines are another area of focus at Biohaven, and Coric said here too, better treatments are needed. Nearly 30 million patients suffer from migraines and most are not satisfied with their treatments. So far in their testing, Biohaven's treatments have provided fast relief that lasts for several days at a time. 

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" Friday evening: 

Berkshire Hathaway  (BRK.B) - Get Report: "This stock is breaking out and I should be pushing it more." 

Gannett  (GCI) - Get Report: "No, this is newspapers. Sorry." 

Textron  (TXT) - Get Report: "This has been a serial disappointer. I'd rather you be in United Technologies  or Honeywell  (HON) - Get Report." 

Ventas  (VTR) - Get Report: "They had a big shortfall and lowered their guidance. They're in the penalty box. " 

Duke Energy  (DUK) - Get Report: "They have a 4.2% yield. They're still OK."

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