Skip to main content

Cue the Buying: Cramer's 'Mad Money' Recap (Monday 9/21/20)

Jim Cramer says it seems we're in disarray -- and we are. But investors need to keep a sharp eye out for a rebound on the horizon.
  • Author:
  • Publish date:

If you have cash on the sidelines, now's the time to do some buying, Jim Cramer told his Mad Money viewers Monday. That's because the selloff didn't begin today, Cramer said. It's been happening for weeks.

Investors may still be digesting worries and things that have put the market into disarray, but most of those worries aren't new. And with many stocks now well off their highs, the time to start buying is now. 

Cramer listed a number of reasons why investors are selling. Many have lost hope for additional government stimulus, which means many small businesses likely won't survive our social distancing requirements required until a vaccine is available. Travel and leisure is on the ropes as well, and we still have a lot of unpaid rents that must be reconciled.

Then there's uncertainty about our government, including a contentious election, a Supreme Court nomination and President Donald Trump's obsession with TikTok.

Speculative stocks like Nikola Corp.  (NKLA) - Get Free Report are also weighing on investors' minds, as are corruption scandals at foreign banks that are weighing on our own.

Despite all of these worries, Cramer told viewers that he thinks we're nearing the bottom. He reminded viewers that stocks get cheaper as they go lower and selloffs like today are the sign of a healthy market.

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.

Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.

Executive Decision: Ely Lilly

In his first "Executive Decision" segment of the week, Cramer spoke with David Ricks, chairman and CEO of Ely Lilly  (LLY) - Get Free Report, the drugmaker whose shares fell 1.9% Monday, along with the broader markets, despite posting positive clinical trial data on the company's breast cancer therapy.

Ricks explained that their treatment, when added to the current standard of care, has shown to reduce the rate of breast cancer recurrence by 25%. He called the data "great news" for patients and their families, and called it the first significant advancement in almost 20 years.

Oncology continues to be a focus for Lilly, Ricks said, which is why they recently added Loxo Oncology to their portfolio for $8 billion.

Ricks also commented on their recent work creating neutralizing antibodies to treat COVID-19 patients. He said in just six months' time, they've gone from nothing to clinical trial data showing they can reduce hospitalization rates by as much as 72%. He said they continue to test their antibodies at hard-hit nursing homes and have partnered with Amgen  (AMGN) - Get Free Report to help with manufacturing.

Executive Decision: Coca-Cola

For his second "Executive Decision" segment, Cramer spoke with James Quincey, chairman and CEO of Coca-Cola  (KO) - Get Free Report, the beverage giant working hard to adapt to a new COVID-19 world.

Quincey said consumer tastes were changing even before COVID-19 struck, but now people are looking for new things and are blurring the lines among beverage categories. Drinks like hard seltzers have grown over 200% in the U.S. over the past year, and Coca-Cola will be joining the trend with spiked Topo-Chico, a popular sparkling mineral water, in the near future.

Coca-Cola is also working hard to support their bottlers, retailers and restaurants, all of whom have been affected by the pandemic. Quincey said Coke is upgrading their platform and evolving into a digital organization, which allows them to be faster, more agile and support all of their partners better. He said they are listening to customers and there will be innovations and announcements in the near future.

Executive Decision: Albertsons

For his final "Executive Decision" segment, Cramer checked in Vivek Sankaran, president and CEO of grocery store chain Albertsons  (ACI) - Get Free Report, which saw its shares rise 4.5% today on increased COVID-19 fears. Shares of Albertsons trade for just six times earnings.

Sankaran said Albertsons sits on a strong foundation, but it still has potential for growth. The company has tremendous brands that customers have grown up with and love. That's how it's able to add new shoppers every week and get existing shoppers to buy even more.

Albertson's is also investing in technology. Sankaran said that technology enables productivity and as the company integrates to common systems, it can use data for increased productivity. He said productivity in buying, personalized pricing, and increased promotions are all possible.

Sankaran was also bullish on Albertsons' private label products. He said the store brands are the No. 1 items in dozens categories across the stores.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Back to Soup and Streaming

In his No-Huddle Offense segment, Cramer told viewers as the weather is getting colder and COVID-19 cases in the U.K. and Spain are climbing, it looks like we're right back where we started, with investors buying up the COVID stocks.

Cramer said it's once again safe to buy packaged foods makers like Campbell Soup  (CPB) - Get Free Report, as well as anything to do with e-commerce, like Shopify  (SHOP) - Get Free Report and Square  (SQ) - Get Free Report. Real estate remains hot, and that's good news for DocuSign  (DOCU) - Get Free Report. And of course, if we're back at home, we'll need more Peloton  (PTON) - Get Free Report and lots and lots of Netflix  (NFLX) - Get Free Report.

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:

Diamond Peak Holding  (DPHC) - Get Free Report: "Take some profits and let the rest run."

Marcus  (MCS) - Get Free Report: "I'm not a fan of Marcus."

The GEO Group  (GEO) - Get Free Report: "I've not been a fan of this group for 15 years."

Ciena  (CIEN) - Get Free Report: "That was a terrible quarter. Be careful with Ciena."

Smith & Wesson Brands SWBI: "This is a tough one to own but demand is strong."

Republic Services  (RSG) - Get Free Report: "That is a very good company. I think you have a winner."

Caesars Entertainment  (CZR) - Get Free Report: "I think it's time to ring the register."

Coty  (COTY) - Get Free Report: "That's another one that's not a good company. "

Arrowhead Pharmaceuticals  (ARWR) - Get Free Report: "I don't understand why this stock is doing so poorly."

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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