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Cramer's Mad Money Recap 10/11: Plug Power, Kraft Heinz, Emerson

Jim Cramer says investors need to give the economy more time. He's not worried about a stagnant economy; he thinks capitalism is the cure.
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Most money managers think all is lost when it comes to our economy, but Jim Cramer told his Mad Money viewers not to panic and give our economy more time. The results, he said, could surprise you.

If you listen to the pundits and the bears for more than two minutes, you're likely to hear the word stagflation, that horrible combination of rising inflation and a stagnant economy. The last time we saw stagflation was in the 1970s, Cramer explained, but today is nothing like the 1970s. Why? Because today, we have COVID.

Yes, it's true that prices are rising, and as Kraft Heinz  (KHC) - Get Kraft Heinz Company (KHC) Report showed us today, consumers might've to get used to higher prices for some things.

Over on Action Alerts PLUS, Bob Lang and Chris Versace say this week is all about earnings: 'We expect to hear quite a bit about the negative impact of supply chains and rising input cost, as well as transportation costs on margins from the likes of Fastenal  (FAST) - Get Fastenal Company Report, Alcoa  (AA) - Get Alcoa Corp. Report, and JB Hunt Transport Services  (JBHT) - Get J.B. Hunt Transport Services, Inc. (JBHT) Report.' Read more of what they have to say about autos, semiconductors and banks with a free trial to Action Alerts PLUS.

But Cramer noted that what our economy really needs is time. We need more time to beat COVID, more time for workers to go back to work, more time to get our chemical plants back online and more time to work out the mess at our ports. COVID has disrupted just about everything, Cramer said, and once the Delta variant subsides, many of our problems will too.

As for things like our ongoing semiconductor shortage, capitalism will be the solution. Once prices rise enough for the chips that aren't being made, it'll make economic sense to open new foundries to meet demand.

We don't really have a stagnant economy, Cramer concluded. What we have is an economy that's desperate to get back to normal. We just need to be patient.

Executive Decision: Emerson Electric

In his first "Executive Decision" segment, Cramer spoke with Lal Karsanbhai, president and CEO of Emerson Electric  (EMR) - Get Emerson Electric Co. Report, which today announced an $11 billion merger with Aspen Technology  (AZPN) - Get Aspen Technology, Inc. Report. Shares of Emerson closed down 2.5%.

Karsanbhai said he's very excited about the merger with Aspen. He said Emerson is contributing $6 billion for a 55% stake in the combined company, which will give them great exposure to the high-growth industrial software space. They will be optimized for the future, he said, with great opportunities for organic growth and additional mergers and acquisitions.

The name of the game for Emerson is value creation over time, Karsanbhai explained, and Emerson is now positioned to deliver value in many new industries.

One of those opportunities is hydrogen fuels. Karsanbhai said the technology to make green hydrogen is ready and Emerson is ready to follow the investment dollars to make it a reality.

Finally, when asked about labor prices and shortages, Karsanbhai admitted that labor remains a challenge. He said "people are tired" after dealing with the pandemic and that makes maintaining staff levels difficult.

The Frogs and the Dogs

When the stock market turns against tech, investors need to be very selective about where they choose to put their money. That's why Cramer circled back to two former tech favorites, JFrog  (FROG) - Get JFrog Ltd. Report and DataDog  (DDOG) - Get Datadog Inc Class A Report.

When JFrog came public last year, Cramer told viewers to steer clear given its sky-high valuation of 40 times sales. But since then, shares have fallen 55%, making it worth a second look.

But Cramer said while JFrog is a good software company, it's not great, with earnings that have been progressively less impressive. Investors were not impressed with JFrog's Vdoo acquisition in June for $300 million and shares have dipped 30% since that announcement. Cramer said investors should find something better.

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Something that qualifies as better is DataDog, which came public two years ago and has seen its shares soar almost 300%. Unlike JFrog, DataDog is seeing its growth hold firm. DataDog is 100% in the cloud, unlike JFrog, which still has some legacy desktop software.

DataDog's valuation is also high, but Cramer said investors can afford to be patient and wait for the share price to dip before starting a position.

Executive Decision: Plug Power

For his second "Executive Decision" segment, Cramer also spoke with Andy Marsh, president and CEO of Plug Power  (PLUG) - Get Plug Power Inc. Report, ahead of the company's "Plug Symposium" event scheduled for Thursday.

Marsh said the symposium will include talks from 23 industry leaders all working toward making green hydrogen a reliable, accessible power source for the world. Green hydrogen will be a part of the infrastructure package currently making the rounds through Washington, March said.

Plug Power has partnered with Renault in Europe and will be announcing the Renault Master Van at the symposium. And while many green hydrogen activities are taking place in Europe, Marsh noted that America can still be a leader in the green hydrogen revolution. Plug Power's latest facility in New York will be state of the art, he said. The facility will be powered by solar energy and is able to generate 30 tons of hydrogen a day.

When the Chips Are Down

Is there a way to profit from the semiconductor shortage? Cramer told viewers in his "No Huddle Offense" segment that he thinks there is.

Many investors still remember the old semiconductor industry, the one with boom and bust cycles that lost everyone money. But today's semiconductor industry is different, he said, and this shortage is a long-term opportunity.

That means the semiconductor equipment makers are the place to be. There are only four of them, ASML Holdings  (ASML) - Get ASML Holding NV ADR Report, KLA Corp.  (KLAC) - Get KLA Corporation (KLAC) Report, Applied Materials  (AMAT) - Get Applied Materials, Inc. Report and Lam Research  (LRCX) - Get Lam Research Corporation (LRCX) Report. Of the four, Cramer said Lam Research is best-of-breed, and if Taiwan Semiconductor  (TSM) - Get Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR Report tells us things are strong when they report later this week, then that's the stock investors should be buying for the long term.

Lightning Round

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

Decarbonization Plus Acquisition II DCRC: "I'm not going to hurt anybody by recommending these. SPACs are hurting people."

Macy's  (M) - Get Macy's Inc Report: "I like Macy's very much. They're doing a good job. This stock is going to $30."

Noodles & Company  (NDLS) - Get Noodles & Co. Class A Report: "No. This has been one step forward, two steps back. I'm not going there."

Chewy  (CHWY) - Get Chewy, Inc. Class A Report: "I think it's a good stock. I'm going backing away from it."

Chargepoint  (CHPT) - Get CHARGEPOINT HOLDINGS, INC. Report: "We have to be careful with SPACs and EV plays. You can own this one for speculation, nothing else."

Caterpillar  (CAT) - Get Caterpillar Inc. Report: "I'm not interested in Caterpillar. I'm buying Nucor  (NUE) - Get Nucor Corporation Report. That's the one you want to be in."

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