Hold Onto Your Gains: Cramer's 'Mad Money' Recap (Wednesday 2/19/20)

Jim Cramer's all for speculation, but on days like this -- when high-flyers are out of sight -- he recommends investors sell some shares and not be greedy.
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If you own one of the hot, speculative stocks that shot through the roof Wednesday, Jim Cramer has some advice: Take some profits. Cramer told his Mad Money viewers Wednesday that speculation is something he always encourages investors to do with their discretionary portfolios. But, he said, when you have big advances you must sell at least some shares to lock in your gains. 

Cramer's no stranger to speculation. He took a lot of heat a few months ago when he announced his change of heart regarding Tesla  (TSLA) - Get Report. But now, 600 points later, the stock has reached his price target and he advised selling half to lock in gains. 

Space tourism may indeed become a real industry one day, Cramer admitted, but shares of Virgin Galactic  (SPCE)  don't deserve to be up 61% in just a week, especially since the company isn't expecting any earnings until 2030. 

Investors have also been speculating on solar energy, sending shares of Enphase Energy  (ENPH) - Get Report up 42% after a blowout quarter, and shares of Plug Power up 17%. But Cramer said only Solar Edge SEDG is worth speculating on, and he's take profits on the rest.

Your gains aren't real until you sell, Cramer concluded. Only then do you really have something to show for your efforts.

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Executive Decision: Wingstop

For his "Executive Decision" segment, Cramer spoke with Charlie Morrison, chairman, president and CEO of Wingstop  (WING) - Get Report, the restaurant chain with shares the fell 2.8% Wednesday on what investors perceived as a confusing quarter. 

Morrison said that Wingstop is in a category of their own, which is why they just completed their 16th year of positive same-store sales growth and have industry-leading gross margins. Digital ordering now accounts for 39% of all sales, he said, with some locations seeing up to 60% digital orders thanks to their strong partnership with Door Dash for delivery.

When asked about growth, Morrison was bullish on Wingstop's outlook. He said the concept is very portable and has performed well in every market they've tried. The company sees the possibility of up to 6,000 locations, including in Europe and elsewhere.

Franchisees have to earn a Wingstop location, Morrison added, and they love that their locations are simple to operate and provide consistent results. Wingstop doesn't need grade-A real estate, Morrison said even B- and C-level properties can be A+ locations for their chain. 

Cramer said Wingstop is a long-term winner and when it's down is the time to buy.

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.

Off the Charts: Payment Processors

In his "Off The Charts" segment, Cramer checked in with colleague Bob Lang over the charts of the payment processors, all of which have seen strong rallies lately.  

Lang noted a bullish flag pattern in the daily chart of Visa  (V) - Get Report and also called attention to the stock's bullish MACD momentum indicator and Chaikin money flow. He saw the same strength in the daily chart of rival Mastercard  (MA) - Get Report, and said he felt American Express  (AXP) - Get Report was also remarkably strong, gaining ground on strong volume. 

Lang then turned to smaller processors like PayPal Holdings  (PYPL) - Get Report, a stock which bottomed in October and hasn't looked back since. He also liked the action in the weekly chart of Square  (SQ) - Get Report, which broke through a key ceiling of resistance and is now headed to $100 a share.

Executive Decision: Everbridge

For his "Executive Decision" segment, Cramer sat down with David Meredith, CEO of Everbridge  (EVBG) - Get Report the critical event management company that saw its shares surge 13.4% on strong earnings. 

Meredith said that Everbridge's mission is to keep people safe and get businesses open faster when critical events happen. He said that, unfortunately, in recent years man-made crises are happening 30 times more often than their historic averages, and natural disasters are now happening twice as often. Companies need a network that's always on and ready to respond. 

Meredith explained that there are many things that are important to a company, including their employees, customers, assets, offices and supply chain. Every day, there are negative events occurring, including weather, natural disasters, man-made events and illness outbreaks. Where those things overlap is a critical event. 

Everbridge's network has been busy in recent weeks with the coronavirus outbreak, Meredith said, and they've delivered over 6 million communications around the globe regarding the crisis.

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: 

Lam Research  (LRCX) - Get Report: "This stock is a buy on a pullback." 

Brown & Brown  (BRO) - Get Report: "That's a great business to be in right now." 

Freshpet  (FRPT) - Get Report: "This stock is doing well, and it's not done." 

Arista Networks  (ANET) - Get Report: "I can make a case for it, but there are better stocks out there." 

SmileDirectClub  (SDC) - Get Report: "This stock is a battleground and I'm not getting caught in the crossfire." 

Is it too Late?

In his "No Huddle Offense" segment, Cramer asked, is it too late to sell and get back in later? Investors already seem to be discounting the coronavirus, he said, and they're trading like the outbreak has already run its course. 

Investors are recalling -- or realizing -- that China is a communist regime. The country has taken the extraordinary measures of quarantining 15 million people, and while that's horrible for the people that live there, it seems to be stemming the spread of Covid-19. Investors are also realizing that China will prop up its economy by any means necessary, which will help to speed up the recovery process. That's why it may indeed be too late to sell, as you won't be able to get back in later.

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