Forget the "red hot" stocks like GameStop (GME) - Get Report, and stick with the long-term themes that are working, Jim Cramer told his Mad Money viewers Monday, as he outlined the many ways individual investors can still make money in the stock market without buying into the Reddit frenzy.
Cramer said that in volatile markets, it always pays to circle back to the fundamentals. This week, for example, we learned that there's a big shortage of semiconductors. That's great news for stocks like Lam Research (LRCX) - Get Report, Applied Materials (AMAT) - Get Report and Taiwan Semiconductor (TSMC) . The semiconductor bull market joins the bull market in e-commerce, which is a lot bigger than just our stay-at-home economy. That's why Cramer continued to recommend Amazon (AMZN) - Get Report, Target (TGT) - Get Report and Shopify (SHOP) - Get Report, among others.
There are plenty of long-term themes in technology, from digitization, to cybersecurity, to 5G wireless, electric vehicles, clean energy and remote work. There are clear winners in each of these categories, from Skyworks Solutions (SWKS) - Get Report and Tesla (TSLA) - Get Report to Zoom Video (ZM) - Get Report.
Outside of tech there are even more opportunities. Cramer said when the economy reopens, he likes Walt Disney Co. (DIS) - Get Report and Boeing (BA) - Get Report. He was also bullish on housing with stocks like Lennar (LEN) - Get Report and Home Depot (HD) - Get Report. China continues to be strong, and Cramer would play that theme with Apple (AAPL) - Get Report and Starbucks (SBUX) - Get Report.
So forget about the red-hot Reddit stocks. They don't pose any systemic risk to the markets, Cramer concluded, only to the traders buying in at these sky-high valuations.
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Executive Decision: Thermo Fisher Scientific
In his first "Executive Decision" segment, Cramer spoke with Marc Casper, chairman, president and CEO of Thermo Fisher Scientific (TMO) - Get Report, the life sciences company helping drugmakers and testing companies fight COVID-19. Thermo Fisher reported 51% organic growth this quarter, news that sent shares up 1.1% by the close.
Casper explained that Thermo Fisher is a world leader in life sciences equipment and supplies. The company was ready to help the world meet the COVID challenge. Thermo Fisher helped develop COVID testing and now support hundreds of millions of COVID tests around the globe. Casper said the need for diagnostics surrounding COVID will be with us for years to come as doctors will need new tests to evaluate patients.
When asked about the role science will play in the future, Casper said there's no doubt that science is critical, whether it's for life sciences, climate change, or other important issues, he expects science funding and discovery to only increase as we meet our new challenges.
Executive Decision: Dick's Sporting Goods
For his second "Executive Decision" segment, Cramer also spoke with Lauren Hobart, the new president and CEO of Dick's Sporting Goods (DKS) - Get Report, along with Ed Stack, the former CEO who is now stepping into the role of executive chairman. Shares of Dick's are up 22% over the past month as the sporting goods retailer continues to thrive during the pandemic.
Stack said he plans on continuing his work with the company, noting that he loves the products they sell and everything they do.
When asked about their success during the pandemic, Hobart noted that Dick's had brought their e-commerce operations in-house prior to the pandemic, which allowed them to spin up curbside pickup at all of their locations in just 48 hours when the pandemic began. She said customers love their omni-channel strategy.
That doesn't mean Dick's is giving up on their 732 physical locations, however. Hobart said they plan new experiences within their stores and will continue to leverage them.
Stack said that Dick's has always believed in innovation. They aren't afraid to experiment, he said, even if they fail sometimes.
Finally, Cramer noted the company's female-focused initiatives. Hobart explained that the Dick's Foundation helps one million kids play sports and they are especially focused on helping girls succeed. They are working closely with vendors to get girls equipment and apparel that suits their needs.
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Executive Decision: Otis Worldwide
For his final "Executive Decision" segment, Cramer checked in Judy Marks, president and CEO of Otis Worldwide OTIS, the elevator maker that just posted a seven-cents-a-share earnings beat, despite the pandemic.
Marks explained that Otis had a phenomenal quarter and a phenomenal first year as an independent company. The company's 69,000 employees around the world provided essential services that led to 1.3% organic growth and an 8% increase in gross profits, she said. Otis did everything they said they were going to do and they're getting ready for share buybacks.
Marks added that growth in China remains strong and China now accounts for 50% of the global market for elevators and services. Otis' services are growing 8% in China.
Finally, Marks calmed safety concerns regarding riding in an elevator in a COVID world. She said elevators are not closed boxes, they've been designed with ventilation for years. A recent elevator safety study concluded that a short trip in an elevator is just as safe as outdoor dining when wearing a mask, social distancing and following other guidelines.
The GameStop Play
In his No-Huddle Offense segment, Cramer said it's time to talk about GameStop, which plunged $100., or 30%, Monday.
Cramer said it's time to take "yes" for an answer and laugh your way all the way to the bank. He said the WallStreetBets subreddit idea was simple: Hedge funds had sold short more shares than even existed. So, if enough people bought the stock, it could trigger a massive short squeeze and prices would soar. And they did.
But now that the Reddit crowd was proven right, it's time to take profits and move on, Cramer said. There are no more gains to be had and those profits you have on paper aren't real until you sell. Point made, battle won, enjoy your victory lap.
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:
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At the time of publication, Cramer's Action Alerts PLUS had a position in DIS, AMZN, AAPL, SBUX.