Economy’s a Leaky Ship: Cramer's 'Mad Money' Recap (Monday 4/1/20)

Investors can’t fight this kind of selling, but they shouldn’t give up. Jim Cramer’s got a case for sitting tight. It will end.
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Eventually, this pandemic will end, Jim Cramer reminded his Mad Money viewers Wednesday. And when it does you won't be able to buy stocks at these discounted prices; the market will rocket higher.

Cramer said he doesn't fault anyone who needs their money from selling, but for the rest of us, let's not forget that there will be $2 trillion in economic stimulus coming soon to help float this leaky ship. Hopefully, in a few weeks, America will begin to return to normal. This time is not like 2008, Cramer added. This time the government is working for us instead of against us and corporations are stepping up to help as well.

Cramer spoke with Chuck Robbins, chairman and CEO of Cisco Systems  (CSCO) - Get Report, which just pledged $225 million to help combat COVID-19. Robbins said that everyone in Silicon Valley is stepping up and the business community at large is rallying around helping their communities in any way they can.

Cisco has seen a huge surge in the usage of its WebEx video conferencing platform, Robbins said, and in Europe, usage is up over 400%. WebEx believes that your data is yours, he said, and that's why they take data encryption seriously and are helping countless companies deal with their new remote workforce.

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Executive Decision: ResMed

In an "Executive Decision" segment, Cramer spoke with Mick Farrell, CEO of ResMed  (RMD) - Get Report makers of ventilators and CPAP equipment. 

Farrell said ResMed has been following the coronavirus pandemic from the beginning in China, then through Singapore and Asia and now into Europe and the U.S. All of their factories around the world are working around the clock, and their goal is to ship two to three times the number of ventilators they did last year -- and 10 times the number of masks. 

Farrell explained that ResMed makes a full spectrum of ventilators, including critical-care invasive units and non-invasive units. He said the bottleneck is not in manufacturing these units, but in procuring the 500 parts needed to build them. They're looking to work with anyone who can help solve the parts problem, he said. 

Farrell gave kudos to Tesla  (TSLA) - Get Report and other companies who have offered to help with logistics and getting this vital equipment into the hands of hospitals around the globe that need them most.

Executive Decision: Nestle

For his next interview, Cramer checked in with the world's largest food maker, Nestle, by speaking with Mark Schneider, the company's CEO. 

Schneider said the world is restocking their pantries and Nestle's sole focus at the moment is keeping store shelves stocked with the essential products the world needs. He said they are scrambling to meet demand but are making progress every day.

It's not just people, Schneider noted, pet food was already Nestle's best performing category, with sales up 7% for the year. Pets need to be fed too, he said, and people are stocking up.

Schneider said Nestle's employees are also top of mind. He said all company executives regularly spend time in their plants and distribution centers, talking with front-line workers to make are they have everything they need to be happy and healthy on the job.

Outside of the coronavirus, Schneider said Nestle continues to focus on sustainable packaging. The are making progress towards their 2025 goals and improvements like paper straws replacing plastic ones will happen later this year. 

Executive Decision: PVH

Manny Chirico, chairman and CEO of apparel maker PVH  (PVH) - Get Report, also appeared on the show to discuss his company's business. PVH previously announced that it is suspending its quarterly and annual guidance, as well as its dividend and stock buy-back program, amid the retail shutdown in many of its key markets.

Chirico said that while PVH is not highly leveraged and will see additional liquidity from the sale of its Speedo brand, no apparel maker is built to be shuttered. He said governments around the globe have made the right call to close retail locations, but retailers and apparel makers must now adapt to unprecedented conditions.

Doctors and nurses are the real heroes of this crisis, Chirico noted, which is why PVH helped to source 1.5 million surgical masks from their Asian supply chain and donate them to New York area hospitals. He said there are another five million masks in the pipeline to aid in the ongoing efforts to combat COVID-19.

Chirico also shared that he and his wife have tested positive for the coronavirus. So far, Chirico has been feeling well and is largely asymptomatic, while his wife is seeing mild symptoms. He said they have been very blessed and are expected to make full recoveries. 

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Winners and Losers

In his "No-Huddle Offense" segment, Cramer said he expects the winners to keep on winning and the losers to keep on losing in this market. When you look at the best and worst performers from last quarter, you'll soon see why. 

The top five best performers in the S&P 500 last quarter were Regeneron  (REGN) - Get Report, Citrix  (CTXS) - Get Report, Netflix  (NFLX) - Get Report, Digital Realty Trust  (DLR) - Get Report and Gilead Sciences  (GILD) - Get Report. Cramer said Regeneron and Gilead are hard at work trying to fight the coronavirus, while Netflix, Citrix and Digital Realty are benefiting from our new stay-at-home economy. 

Among the worst performers were Apache  (APA) - Get Report, down 84%, Norwegian Cruise Line Holdings  (NCLH) - Get Report, Royal Caribbean Cruises  (RCL) - Get Report, Marathon Oil  (MRO) - Get Report and Noble Energy  (NBL) - Get Report. Cramer said energy continues to get crushed and he expects many more bankruptcies. As for the cruise lines, it's pretty clear the people are not going anywhere near cruise ships for quite some 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 Wednesday evening: 

Dunkin Brands  (DNKN) - Get Report: "I think it's OK to sell this one. I would take a pass on this one."

Virgin Galactic SPCE: "This stock had an incredible run. It's a decent speculative stock, but I'd rather be in Tesla  (TSLA) - Get Report." 

Marathon Oil  (MRO) - Get Report: "I do not encourage owning oil. I'd only recommend Chevron  (CVX) - Get Report." 

Idexx Laboratories  (IDXX) - Get Report: "I like Chewy  (CHWY) - Get Report and Nestle. There are a lot of great pet stocks out there." 

Procter & Gamble  (PG) - Get Report: "They've had some unbelievable numbers. That's a buy with a 2.7% yield."

First Horizon National  (FHN) - Get Report: "It yields 8% and they're terrific. Enough with the selling." 

Apache  (APA) - Get Report: "That's the worst stock in the S&P 500. It's just not a good situation."

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At the time of publication, Cramer's Action Alerts PLUS had a position in CSCO.