Jim Cramer told viewers on Tuesday's episode of Mad Money that the market needed to broaden its leadership if the rally was to continue. Well, the bull gods were listening, he said, because today the market did just that -- with 10 of out 11 sectors on the march higher.
Cramer said he was glad to see JPMorgan Chase (JPM - Get Report) 2% higher, helping to lift the financials, while an upgrade at Cigna (CI - Get Report) and a monster buyback from Unitedhealth Group (UNH - Get Report) moved the healthcare cohort. We also saw strength in the industrials, with Boeing (BA - Get Report) , Caterpillar (CAT - Get Report) and 3M (MMM - Get Report) all in the black.
Other strength came from Five Below (FIVE - Get Report) in retail and Broadcom (AVGO - Get Report) in the semiconductor group. Add them all up and it's a very encouraging sign for tomorrow's session, Cramer concluded.
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Executive Decision: Qualcomm
For his "Executive Decision" segment, Cramer sat down with Steve Mollenkopf, CEO of of semiconductor maker Qualcomm (QCOM - Get Report) , a company that's been in the news a lot lately, as it battles disputes over intellectual property and trade.
Mollenkopf said he's still very optimistic about the outlook at Qualcomm. Every morning, people wake up and want the technology that Qualcomm makes, he said, and that's a great position to be in.
When asked about the company's stalled deal to purchase NXP Semiconductors (NXPI - Get Report) , Mollenkopf said they're still ready to do the deal and hope the trade issues with China can be solved soon.
Turning to the company's ongoing operations, Mollenkopf said that Qualcomm continues to invest in technologies that disrupt, things like 3G and 4G wireless and the upcoming transition to 5G wireless. Few companies have the scale to seize these opportunities, he said, and Qualcomm is poised to reap the rewards.
Sometimes, you need to look at your winners and determine if you're being too greedy, Cramer told viewers. Back in March of 2017, Cramer got behind the IPO of winter apparel maker Canada Goose (GOOS - Get Report) and since that call, shares are up 176%.
Cramer said he's still a big fan of the company and its products, but after Canada Goose reported strong earnings earlier this year, shares sold off nearly 20%, an indication that investors had gotten a little too excited about the company's outlook. More recently, the company reiterated its plans to expand in China and the stock again took off like a rocket. But Cramer noted that these plans were already known, making him question who's bidding up the shares. "I don't think people are thinking this though," he added.
Even if Canada Goose was the perfect stock, it now trades at 66 times next year's earnings and 53 times expected 2020 earnings. That makes the stock vulnerable, Cramer said, especially given the company has filed a shelf registration for a potential secondary offering of shares.
Cramer told viewers if they own Canada Goose, he'd take some profits, especially since summer is not the season for stylish winter apparel.
Executive Decision: Camping World
In his second "Executive Decision" segment, Cramer sat down with "Shark Tank" star, Marcus Lemonis, who is also the CEO of Camping World (CWH - Get Report) , a provider of RVs and camping supplies. Shares of Camping World have been cut in half, down 53% in 2018.
Lemonis admitted to making what he deemed the "rookie mistake" of failing to communicate to the market about what his company's strategy is and how they're positioned to dominate the industry. There's been lots of speculation, for example, about the company's acquisition of Gander Mountain, he said, but that deal was made simply to obtain a footprint in several key states they wanted to be in.
Lemonis, who owns 35 million shares of Camping World, recently sold 130,000 shares at higher prices. He has since bought back those shares as a sign that he doesn't agree with the stock's current valuation.
Lemonis also addressed the delay in filing a recent 10K with the SEC, saying that they have changed auditors to resolve the issue.
When asked about their business, Lemonis said there's a misconception that RVs are only for older people, but he said with the advent of smaller RVs and travel trailers, camping is becoming accessible to younger people and anyone who drives a sedan with a tow hitch.
In his "No-Huddle Offense" segment, Cramer reminded viewers that just because millennials like it, it doesn't mean you should buy it.
Cramer said he was struck this quarter by just how many CEOs mentioned the younger millennial demographic as a reason to own their stock. From cruises to camping to timeshares and organic foods, the millennials seem to be everywhere. But while having younger customers is "nice," Cramer say it doesn't mean that other business headwinds can't derail your plans.
Just today we heard of concerns that rising fuel prices and a glut of new ships may dampen cruise line earnings. Shares of RV Maker Thor Industries (THO - Get Report) fell 7.1% after it reported weaker sales and rising costs. Will timeshares be next with rising interest rates? It's certainly a possibility, Cramer concluded, and one that even the millennials won't be able to fix.
Over on Real Money, Cramer says millennials may like glamping and cruising, but that doesn't mean it's going to help. Get more of his insights with a free trial subscription to Real Money.
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