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Game Plan: Cramer's 'Mad Money' Recap (Friday 9/11/20)

Jim Cramer looks ahead to next week's key earnings reports and the hope for stimulus action out of Washington, D.C.
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The market's next moves hinge on whether Congress can pass another stimulus bill, Jim Cramer told his Mad Money viewers Friday. That mean's next week's game plan will hinge on earnings, while we wait for news out of Washington, D.C.

Cramer's game plan begins on Monday with earnings from homebuilder Lennar  (LEN)  and an investor day from Pfizer  (PFE) . Housing has been on fire and Cramer said he liked Pfizer's pipeline of potential blockbuster drugs.

Next, on Tuesday we'll hear from two Cramer favs, FedEx  (FDX)  and Adobe Systems  (ADBE) . Camping World  (CWH)  will also hold an investor day and Cramer was bullish on all three. He was skeptical about Kraft Heinz  (KHC) , however, as the food maker could be running out of steam.

Wednesday the market will digest comments from Federal Reserve Chair Jay Powell, comments which Cramer said aren't likely to rock the market. We'll also receive earnings from office furniture maker Herman Miller  (MLHR) , which Cramer speculated will be "unlikely to disappoint."

Thursday brings an R&D update from Moderna  (MRNA) , which is working on more than just a COVID-19 vaccine.

Finally on Friday, seed maker Mosaic  (MOS)  will brief analysts, but Cramer said any good news from Mosaic will be good news for John Deere & Co.  (DE) .

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Know Your IPO

In his "Know Your IPO" segment, Cramer there's a wave of new offerings headed our way, and nothing kills a bull market faster than a big wave of IPOs. That's because money managers can't own everything, so they typically sell what they have to make room for the latest "big thing."

Next week the market will digest eight new IPOs, with many more in the pipeline to follow. So far this year, we've already seen 111 IPOs, a new record.

As with all IPOs, the devil is in the details and it's the offering price that will matter most. There will be a lot of interest in next week's Snowflake deal, and Cramer said he's inclined to be a fan. Snowflake will be followed by a bunch of other cloud offerings like Unity Software and jFrog, which could put pressure on all of the cloud stocks.

Healthcare will be in the IPO mix as well, with Amwell and GoodRx coming soon. Cramer liked GoodRx, depending on the offering price.

We'll also see two direct listings, Palantir and Asana, the latter of which has an 82% growth rate but has always been a money loser.

Finally, there are some big deals in the pipeline, namely Airbnb, DoorDash and Instacart. Like Snowflake, these deals will generate a lot of buzz and suck a lot of momentum out of the rest of the market.

Popping the Fed Bubble Talk

Is the stock market caught in a bubble created by the Fed? Cramer attempted to dispel this recurring hypothesis once and for all. He said that with the exception of the cloud stocks, the market is most certainly not in a bubble.

There are 500 stocks in the S&P 500, Cramer reminded viewers, yet most people don't understand what most of them do. The banks have been struggling for years, he said, with shares of Citigroup  (C)  up just 39% since 2012 compared the S&P up 131% over the same period.

Healthcare is also in the doldrums, Cramer said, with great companies like Gilead Sciences  (GILD)  flat for the year.

Banking and healthcare make up a big portion of our economy, and that's not to mention those industries directly affected by the pandemic, such as the airlines, travel, leisure, oil and gas, and retail.

So the next time you look at the market's hottest names and declare a bubble, look at the other 95% of stocks in the S&P 500.

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Fact and Fiction

When you buy shares in a company that has no products, it's hard to tell fact from fiction, Cramer told viewers, as he took a well-earned "I told you so" regarding Nikola Motors  (NKLA) .

Shortly before the company's reverse merger with a special purpose acquisition company, or SPAC, which allowed it to come public, Cramer cautioned that Nikola is less of a business and more like a business plan. He speculated that shares would surge on the hype and then plummet. After coming public at $30 a share and initially surging to $94, shares have taken a round-trip to $32 Friday.

The controversy in Nikola continues. After the company announced on Tuesday a partnership with General Motors  (GM) , short-seller Hindenburg Research issued a scathing report on Thursday claiming, among other things, that the company's truck doesn't actually work.

Cramer said many of the allegations levied by Hindenburg should be easy to disprove, but thus far, the company has issued only a one-page rebuttal.

Cramer Does His Homework

In his "Homework" segment, Cramer followed up on a few stocks that had stumped him during earlier shows. He said that Osmotica Pharmaceuticals  (OSMT)  is too small and too speculative for him to recommend, especially after the company's recent five million share secondary offering.

Cramer was also bearish on Alliance Data Systems undefined, a company that's been on a long downhill slide over the past five years, one that's included three CEOs in just the past 14 months. He recommended Visa  (V) , PayPal  (PYPL)  or Square  (SQ)  as a replacement.

Cramer ended on a high note however, saying that Moog  (MOG.A) , the defense contractor and industrial company, is a solid innovator that should be considered after the volatility of September passes.

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 Friday evening:

Applied Materials  (AMAT) : "This is a really great company. I like Lam Research  (LRCX)  even more."

OptimizeRx  (OPRX) : "I like GoodRx, which is coming public soon."

The Blackstone Group  (BX) : "This one has come down a bit. I'm game."

Horizon Pharmaceuticals  (HZNP) : "I'm going to have to say no at these levels."

Purple Innovation  (PRPL) : "I've never made any money in the mattress and bedding business."

Walt Disney Co.  (DIS) : "I'm sick of listening to the downers. They're winners, not losers."

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