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Holiday Gift List: Cramer's 'Mad Money' Recap (Friday 12/20/19)

Jim Cramer has a list of 12 presents he'd love to see investors get this holiday season, from a prosperous stock market to a true resolution of the trade wars in the coming year.
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Just in time for the holidays, Jim Cramer gave his Mad Money viewers his "12 Days of Cramer" wish list for 2020, including all of the presents he hopes to receive in the new year. More than anything, Cramer said, he wishes for the markets to head higher in 2020. Investing is the best tool for wealth creation in our country's history and everyone deserves to prosper.

Cramer said he also wishes for more of what we saw in 2019, including economic growth with mild inflation, steady interest rates at the direction of a data-dependent Federal Reserve, and for good companies to be rewarded with higher stock prices.

He also hopes investors would just own Apple  (AAPL) - Get Apple Inc. Report and stop fretting, and trading, on every little bit of news about the company.

Cramer wished for more millennial investors to get interested in the markets through services like Robinhood, and an end to all the bears and their constant negativity.

Also making Cramer's list was more mergers. There are too many oil companies, too many retailers, too many semiconductor and cybersecurity companies out there, he said, and mergers are desperately needed. Along those lines, we need tech companies to do a better job explaining what they do so investors can know what they own.

Having fewer IPOs in 2020 was also on Cramer's list, as 2019's record levels sucked the air out of the rally. He also wanted to see the comeback of Boeing  (BA) - Get The Boeing Company Report, saying this great American manufacturer needs to "get it done" and get the 737Max back in the air.

Finally, Cramer said, he hopes to see the Chinese actually participate in the trade talks. Enough games, enough stalling, enough backpedaling. The Chinese need to start taking some steps to level the playing field.

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.

Don't Get Greedy

When speculative stocks make big moves to the upside, the prudent thing to do is take some profits, Cramer reminded viewers. A win is only a win when you sell, so take profits when you have them. 

Case in point: Arrowhead Pharmaceuticals  (ARWR) - Get Arrowhead Pharmaceuticals Inc. Report, which is up 411% in 2019 and 133% in just the past six months. Cramer said he's still a big fan of Arrowhead and its RNA interference technology that silences the genes that cause disease. But while the stock has more room to run, investors with huge gains must take some of their gains off the table. 

Likewise with another high flier this year, InMode  (INMD) - Get InMode Ltd. Report, which has soared 213% this year. Cramer said he still loves this company's medical aesthetics technology that doesn't require invasive surgery. He still loves that the company is profitable with accelerating revenue growth. But you can't be greedy, and should lock in some of your gains before the end of the year.

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.

A Tesla Phenomenon

Where have all the sellers of Tesla  (TSLA) - Get Tesla Inc. Report gone? Cramer said that since October, the sellers have all but disappeared in Tesla, allowing the stock to climb above $400 a share. Here's what is driving the stock. 

First, Tesla now has real growth with real, achievable earnings projections. That makes it a far better alternative than owning Ford  (F) - Get Ford Motor Company Report or General Motors  (GM) - Get General Motors Company Report. Second, there was supposed to be electrified competition by now, but it simply hasn't materialized. 

Then there's CEO Elon Musk himself, who is no longer a self-destructive liability. Cramer said Musk is now "boring" -- which is exactly what we want from a chief executive. 

The case for Tesla continues with strong demand for all of its vehicles, including the ones coming soon, and the company's Gigafactory in China, which was completed in an astounding 10 months. Cramer was also bullish on Tesla's solar business, which is finally beginning to ramp up installations. Add to all of this the fact that charging stations are now more accessible, and it's easy to see why the shorts have all but disappeared.

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Executive Decision: Paychex

For his "Executive Decision" segment, Cramer spoke with Marty Mucci, president and CEO of payroll processor and human resource service provider Paychex  (PAYX) - Get Paychex Inc. Report

Mucci said Paychex is growing thanks to technology and innovation, making the company less economically sensitive than it has been in years past. Paychex is working hard to change that perception with investors and business owners alike with new products like Pay OnDemand, which allows employees to get paid as they earn and have those earnings deposited to different places, such as with PayPal  (PYPL) - Get PayPal Holdings Inc. Report

Paychex is about a lot more than payroll processing, Mucci explained. Many companies need help managing employee benefits as well and Paychex makes it easy to set up programs like 401K plans with just a few clicks. 

When asked about the health of the economy, Mucci said they just reported wage growth up 3.1%, which is the highest level they've seen since 2011. Additionally, the number of hours worked is also rising, putting more money in people's pockets.

Cramer Does His Homework

In his "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said that Allakos  (ALLK) - Get Allakos Inc. Report is a promising biotech, but the company only has one drug under development, making it risky. While the stock has doubled on excellent Phase II data and orphan drug status, a recent report raised some concerns about results. 

Cramer was more bullish on another biotech, however -- Global Blood Therapeutics  (GBT) - Get Global Blood Therapeutics Inc. Report, which just received FDA approval for its treatment for sickle cell disease. This is an underserved market, he said, and the data here are very promising.

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: 

Enterprise Products Partners  (EPD) - Get Enterprise Products Partners L.P. Report: "This is the only one of the pipelines I'm recommending." 

Jack Henry & Associates  (JKHY) - Get Jack Henry & Associates Inc. Report: "I like fintech, but Mastercard  (MA) - Get Mastercard Incorporated Report is my favorite." 

Discovery  (DISCA) - Get Warner Bros Discovery Inc Com Ser A Report: "They made a good case on their call, I like it." 

Dropbox  (DBX) - Get Dropbox Inc Report: "Dropbox and Box  (BOX) - Get Box Inc. Class A Report are both facing competition from Microsoft  (MSFT) - Get Microsoft Corporation Report 

American International Group  (AIG) - Get American International Group Inc. Report: "AIG is a winner." 

Alteryx  (AYX) - Get Alteryx Inc. Class A Report: "I like it and I'd buy more." 

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