Game Plan: Cramer's 'Mad Money' Recap (Friday 3/26/21)

Jim Cramer says this market is all about the 'Great Reopening' trade. He's got your game plan for next week.
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Jim Cramer was enthusiastic on his Mad Money show Friday evening. Why? The stock market finished strong and the reopening of America is alive and well as the vaccine rollout is growing.

Here's his game plan for next week:

On Monday Cramer’s looking for developments with China’s labor situation and if any more negative news comes out with companies doing business there — like Nike  (NKE) - Get Report. He’ll also be watching Amazon  (AMZN) - Get Report to see how the employee union voting goes. 

On Tuesday, we’ll get a bevy of earnings from some companies thriving under the pandemic, like McCormick  (MKC) - Get Report, Lululemon Athletica  (LULU) - Get Report and Chewy  (CHWY) - Get Report, and others that have struggled, including PVH Corp.  (PVH) - Get Report.

We’ll also get earnings from BlackBerry  (BB) - Get Report, a favorite on Reddit. 

The earnings keep on coming Wednesday with Walgreens  (WBA) - Get Report, Dave & Buster’s  (PLAY) - Get Report and Micron Technology  (MU) - Get Report all set to report. Micron’s business has been strong lately, as has the stock, Cramer added. 

Kroger Co.  (KR) - Get Report also has its analyst meeting scheduled.

On Thursday, things slow down a bit, with just CarMax  (KMX) - Get Report reporting earnings. This could be the “best quarter” of the week, he added. Used car sales are on fire due to the semiconductor shortage impacting new car sales. 

Enjoy the three-day weekend, with the stock market closed on Good Friday, ahead of Easter.

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Executive Decision: BorgWarner

On the show’s first “Executive Decision” segment, Cramer spoke with Fred Lissalde, CEO of BorgWarner  (BWA) - Get Report

The company is making a powerful transition to focus more of its business on electric vehicles. By 2025, BorgWarner expects to generate 25% of its revenue from EV and expects that figure to climb to 45% by 2030. 

The industry is getting electrified, Lissalde said, explaining that it’s happening with commercial vehicles as well as light vehicles. The bus business will be a fast adopter, too, he added. 

As for the transition to EV, Lissalde said, “It’s a natural extension of what we’ve been building over the past years.” There’s finally a tipping point in the market and a readiness among automakers and consumers for these products. 

The company plans to invest $8 billion in the effort by 2025, with $5 billion of that coming from its free cash flow. 

Cramer said he is excited by the move, adding that BorgWarner is also a natural beneficiary of the reopening economy in the short term. Its stock is cheap too, he said.

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Executive Decision: KBR

On the show’s second “Executive Decision” segment, Cramer spoke with Stuart Bradie, president and CEO of KBR Inc.  (KBR) - Get Report

The stock hit a new 52-week high on Friday, with shares being fueled higher by the company’s recent Investor Day presentation. The company has made a massive transformation from energy to more environmentally friendly solutions. 

Further, most of the company’s revenue now comes from government contracts. Bradie explained that defense work and contracting with NASA have been huge opportunities for the company. 

With the Space Force in its infancy and more companies coming to the space front, it’s going to be a very exciting arena to operate in over the long haul, he said.

KBR is also working with green ammonia solutions to help create a better renewable energy source. Being an ESG stock (environment, social and governance) is sustainable, while creating value and longevity for the future, he added. 

COVID Vaccine Update

Cramer wanted an update on the pandemic and vaccination rollout, which has obvious positive developments but also persistent problems. 

He spoke with Dr. Eric Topal, founder and director of the Scripps Translational Science Institute, who said some of those obstacles include the rising number of cases in parts of the Northeast, as well as Michigan. The other variants — such as the U.K. and New York variants — are also a problem.

However, there are very clear positives, mostly centered around the vaccine. The government continues to roll out the doses, as 3.4 million vaccines were administered on Friday, a new record. We’re vaccinating about 1% of the population a day, which is incredible, Topal pointed out. 

What do we still need to do?

Topal urged viewers to remain patient. Keep masking and keep doing the things that have been working. If we can all come together on this and all make an effort to get vaccinated, we’re so close to getting back to normal.

Impending Inflation

On the show’s No-Huddle Offense, Cramer talked about the risk of inflation. While he believes it will be temporary, it also has the potential to be “a real doozy.” 

The Federal Reserve doesn’t want to raise interest rates and Cramer doesn’t want to, either. However, now that the “great reopening is upon us” and with so much stimulus out there, he fears that the Fed may be forced to tighten.

It’s also what the bond market is suggesting. Further, demand for products like steel, lumber and semiconductors is robust. As a result, companies are raising the prices of these products, driving inflation higher. 

There are real world problems driving supply issues — like lumber tariffs with Canada, the blocked Suez Canal and the winter storm in the South — but when combined with the reopening momentum and surge in demand, it’s creating serious inflation concerns, Cramer said. 

With enough time, these things tend to work out fine. But the concern is that there isn't enough time and it forces the Fed’s hand and it raises rates. Let’s hope that doesn’t happen, Cramer said. 

Lightning Round

Here’s what Cramer had to say about some of the stocks during Friday's Mad Money Lightning Round:

3D Systems  (DDD) - Get Report: “They’re making a comeback. I want you to stick with it.”

Annaly Capital  (NLY) - Get Report: “Take a pass on this one.”

PayPal  (PYPL) - Get Report: “That stock is going out of favor right now. It can still go lower, but you have to think long term and if you do, you should own PayPal — not trade it.”

Revance Therapeutics  (RVNC) - Get Report: “Be careful with this one, I wish I liked it more.”

Renewable Energy Group  (REGI) - Get Report: “It’s a good company, I think you should pick some up down here. This stock has been filleted.”

Pershing Square Tontine PSTH: “I share your excitement.”

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