It's a new world on Wall Street, a world where investing in the obvious is worth big bucks, Jim Cramer told his Mad Money viewers Monday.
In the old days, the professional investors were in charge, Cramer explained. That meant getting ahead of the trade by buying the rumor and selling the news. But in today's world, individual investors are in control, which means when you see good news, you buy good news.
Today, we saw a lot of good-news buying.
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Case in point: Nucor (NUE) - Get Nucor Corporation Report, the steel maker Cramer had been recommending ahead of an auto recovery. Monday, Nucor shot up 3.6%, not because of autos, but because of infrastructure spending. This trade would have been too obvious for professional money managers, but it made a lot of money for retail investors.
Other infrastructure stocks on the move today included Vulcan Materials (VMC) - Get Vulcan Materials Company Report and Martin Marietta Materials (MLM) - Get Martin Marietta Materials, Inc. (MLM) Report, which rose 4.9% and 3.0% respectively. There were also big gains in obvious names like Caterpillar (CAT) - Get Caterpillar Inc. Report, up 4%, and Deere and Co. (DE) - Get Deere & Company Report, up 1.5%.
The "obvious" trade extended beyond just infrastructure. Chipmakers Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report both rallied on product announcements, while American Express (AXP) - Get American Express Company Report rose on the lifting of international travel restrictions.
So the next time you hear good news and think you're too late, think again. You might be just in time to make some big gains.
Executive Decision: The Container Store
In his first "Executive Decision" segment, Cramer spoke with Satish Malhotra, president and CEO of The Container Store (TCS) - Get The Container Store Group, Inc. Report, the housewares retailer that just posted strong earnings that included 11% same-store sales growth.
Malhotra explained that he joined The Container Store because of the culture, values and the passion that emanates from its stores. It is the only retailer that dedicates over 10,000 SKUs to home organization and storage, and it has a terrific custom closet business as well.
The Container Store is about a lot more than just products, Malhotra added. The company offers plenty of services as well, including installation and in-home organizers. Many people just don't know how to organize their lives, Malhotra said, which is why he sees the addressable market as bigger than $20 billion.
When asked about supply chain issues, Malhotra said The Container Store isn't immune to rising materials costs, transportation and labor shortages, but it has a great team that's been able to mitigate these pressures thus far.
Keep an Eye on the IPOs
There have been a record-setting 400 IPOs this year, including 15 last week and another 11 scheduled for this week. With all of those newly-minted companies, everyone is guilty until proven innocent. Even highly anticipated IPOs like electric vehicle maker Rivian, which is set to debut on Wednesday under the ticker RIVN.
With backers including Amazon (AMZN) - Get Amazon.com, Inc. Report and Ford (F) - Get Ford Motor Company Report, Rivian has attracted a lot of attention. The stock's expected range has already increased from between $57 to $62 to a new range between $72 and $74 a share. That values the company at $63 billion.
Given that IPOs typically rise on their first day of trading, Cramer said it's likely Rivian could see $90 a share, which would value it the same as Ford. At $100 a share, it would be valued the same as General Motors (GM) - Get General Motors Company (GM) Report.
Is Rivian worth a valuation of seven to eight times sales? Cramer said the company only has 55,000 pre-orders for its consumer pickup truck, and 100,000 orders from Amazon for its upcoming commercial van. With increased competition coming from Ford and others, Cramer had a hard time justifying Rivian's projected valuation. He endorsed owning it only for speculation.
Executive Decision: Goodyear
For his second "Executive Decision" segment, Cramer also spoke with Rich Kramer, chairman, president and CEO of Goodyear Tire and Rubber (GT) - Get Goodyear Tire & Rubber Company Report, which has seen its stock soar 23% over the past month.
Kramer said things are looking up at Goodyear, with sales up 42% over a year ago with the company's gross margins expanding. They even raised their targets for cost synergies with the Cooper Tire acquisition.
Goodyear is also innovating with intelligence tires. Kramer said their new tire sensors can monitor pressure, temperature, wear and load to accurately predict performance characteristics.
As for the company's challenges, Kramer explained that the so-called Great Resignation is for real, with the company seeing higher than expected retirements and increased absenteeism that has led to a shortage of qualified workers.
When asked about the auto shortage, Kramer felt the crisis was a blessing in disguise. He said they've been able to meet demand and rebuild inventories to ensure that when auto manufacturing resumes, they'll be ready for the new mobility economy.
The Folks Nextdoor
In his "No Huddle Offense" segment, Cramer opined on today's debut of Nextdoor Holdings (KIND) - Get Nextdoor Inc. Report, the neighborhood-based social network that serves 280,000 neighborhoods across the nation.
Cramer said in a world where the media focuses on sensationalism and social media targets anger because it attracts more eyeballs, the kinder, gentler message of Nextdoor should be applauded.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:
MGM Resorts (MGM) - Get MGM Resorts International (MGM) Report: "I like MGM. I think they're doing the right thing. Wynn Resorts (WYNN) - Get Wynn Resorts, Limited (WYNN) Report reports Tuesday and that's going to drive the market."
Biohaven Pharmaceuticals (BHVN) - Get Biohaven Pharmaceutical Holding Company Ltd. Report: "They report tomorrow and I like the company very much."
British American Tobacco (BTI) - Get British American Tobacco PLC Sponsored ADR Report: "I'm not going to recommend a tobacco stock. "
Alibaba (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report: "I'm not going there. There are easier stocks to invest in."
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