Game Plan: Cramer's 'Mad Money' Recap (Friday 09/25/20) - TheStreet

Game Plan: Cramer's 'Mad Money' Recap

Jim Cramer has your game plan for next week's earnings and economic reports.
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We're finally ready to kiss September goodbye, and it couldn't come soon enough, Jim Cramer told his Mad Money viewers Friday. After an awful month for stocks, Cramer said "good riddance" to September and used his Game Plan segment to focus on the future and what should be better times ahead.

On Monday, Cramer said he'll be listening to Thor Industries  (THO) - Get Report, the RV maker that is seeing strong sales since the pandemic began. He said the trend will likely be with us for a long time.

Next, on Tuesday, we'll get earnings from spice-maker McCormick  (MKC) - Get Report and chip-maker Micron Technologies  (MU) - Get Report. Cramer said cooking at home is here to stay, but Micron remains a controversial stock. Tuesday evening is the first presidential debate and Cramer said he wants to hear more from former Vice President Joe Biden on his plans for capital gains taxes.

Wednesday is all about housing, with the latest pending home sales and mortgage application data. Cramer expects the news to continue to be strong.

Earnings continue on Thursday with Pepsico  (PEP) - Get Report and Constellation Brands  (STZ) - Get Report, and also ConAgra Foods  (CAG) - Get Report, a stock he was less excited about. Bed Bath and Beyond  (BBBY) - Get Report will report earnings as well on Thursday, but Cramer said this turnaround story has yet to gain any real momentum and is heavily shorted.

Finally, on Friday, we'll get the latest non-farm payroll numbers, where we will likely see another mixed bag of results. 

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.

Executive Decision

In his first "Executive Decision" segment, Cramer spoke with David Foulkes, CEO of boat maker Brunswick  (BC) - Get Report, a surprising winner in the COVID-19 era.

Foulkes said that sales at Brunswick are still up significantly over last year, as more consumers discover boating as the perfect socially distant activity. He said as they exit the selling season in the northern markets, dealers are still experiencing short supplies and Brunswick has hired over 1,000 new employees this year to help meet the growing demand.

When asked about the change demographics of boating, Foulkes explained that 40% of the boats they've sold this year have been to those new to boating. The trend is shifting more towards women, minorities and younger boaters, he said, with the average age of their customer falling from the mid-50s into the high-40s. New customers are entering their line at multiple price points and existing customers are trading up.

Brunswick was so confident in their business, they initiated a $100 million stock repurchase program to take advantage of their share weakness. 

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Palantir IPO

As the IPO market takes a short rest, there will be one hot, new offering next week, Cramer told viewers, and that's the direct listing of Palantir PLTR.

Palantir is a bit of a mystery, Cramer explained. The company got its start making software for the defense and intelligence industries, but later expanded into commercial applications. Palantir boasts 125 customers in 150 countries around the world. It is willing a lot of new business, sporting 49% revenue growth this year.

On the downside, however, Palantir has a corporate structure that gives its three founders control of the company no matter what. Palantir is also burning a lot of cash as it grows and has a ton of stock-based compensation as well.

If shares price as expected, they will trade at 20 times sales. Cramer noted that as a direct listing, Palantir shares will also have a shorter lockup period, where insiders aren't allowed to sell, as compared to a traditional IPO.

Cramer said he's hesitant to recommend Palantir given how much of the company remains a mystery and given the greediness of the company's founders. He said under $10 a share, the stock would be attractive given its growth, but he wouldn't pay more. 

Homework

In his "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said that communications software provider 8x8  (EGHT) - Get Report, has been on a wild ride this year. While rivals like RingCentral  (RNG) - Get Report are up big since the pandemic started, shares of 8x8 are down 16% for the year. The problem, Cramer said, is that 8x8 doesn't pass the "Rule of 40" test, which says a software provider must have either fast growth or high margins, and preferably both. Cramer said Ring Central is the better company.

Next, Cramer commented on Spartan Energy Acquisition  (SPAQ) - Get Report, the SPAC that will soon be merging with Fisker to bring the aspiring electric vehicle maker to the public markets. Cramer said Fisker raises many of the same red flags as Nikola  (NKLA) - Get Report, as the company doesn't have any earnings and doesn't expect having a product to sell until 2022. Given its checkered past and continuing controversy, Cramer said he'd avoid this stock. 

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said the analysts are continually underestimating the staying power of this pandemic and the staying power of our changing behavior. Nowhere is that more evident than with Costco  (COST) - Get Report.

Costco was among the first retailers to get ahead of COVID-19 and has been putting up great earnings as a result. But the analysts continue to fret over the company's COVID-related spending and the staying power of their flood of new members.

But Cramer said he's not worried about Costco losing members because the company is masterful at giving customers exactly what they need, from requiring masks to wide aisles and deep discounts on the items they need most. Even Amazon  (AMZN) - Get Reportcan't compete in some areas, Cramer said, so why would member go anywhere else?

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.

Lightning Round

In the Lightning Round, Cramer was bullish on Boeing  (BA) - Get Report, Royalty Pharma RPRX, Thermo Fisher Scientific  (TMO) - Get Report, Danaher  (DHR) - Get Reportand Ping Identity  (PING) - Get Report.

Cramer was bearish on General Electric  (GE) - Get Report, Rocket Companies  (RKT) - Get Report, RedHill Biopharma  (RDHL) - Get Report, Walgreens Boots Alliance  (WBA) - Get Report and Illumina  (ILMN) - Get Report.

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