Believe it or not, prudence is still a virtue, Jim Cramer told his Mad Money viewers. He reminded them that while bulls make money and bears make money, hogs always get slaughtered, wrote TheStreet's Scott Rutt.
In his 40 years on Wall Street, Cramer said he's learned a few key lessons. The first is that no one ever got hurt taking a profit. You can bet with stocks. You can bet against stocks. But when you make some money, take some to the bank.
This is a hard lesson for the meme stock traders, who believe that selling is a sin and anyone who cashes in is the enemy. But contrary to their beliefs, it's not a sin to take profits in GameStop (GME) - Get Report, AMC Entertainment (AMC) - Get Report or even Wendy's (WEN) - Get Report after Tuesday's big gains.
"I'd take the terrific, dominant e-retailer with a crushed stock that's run by a current Chewy (CHWY) - Get Report guy any day of the week," Cramer wrote in his Real Money column Friday on the topic of GameStop Chewy.
"The memesters are, as we know, possessed with GameStop because they were able to smash the short-selling hedge funds, bring them to their knees, by taking the stock up quickly via a blitz of call and common stock buying. It worked and lots of the Bettors made a lot of money... but what I resent is the insistence by these same winners that the reason why they have won is that they are backing an insurgent, Ryan Cohen, now chairman, who was a co-founder of Chewy, the fabulously successful pet food company e-company," Cramer also wrote.
Cramer feels that if investors idolize Ryan Cohen, they should buy Chewy stock, which had a very good quarter.
Here are the top 10 videos this past week:
Cramer: Boeing Order Reports Reflect a Return of Travel
"My thought is that maybe people are thinking they can get a good deal on Boeing right now or they might not get a good deal in a few months, or that China is about to certify Boeing, but I think what really matters is that this is travel coming back," Cramer said.
"If Boeing can execute better, the stock could go to $400. And one of the things that Boeing did was make its planes far more energy-efficient betting that prices of jet fuel would go up, so there are a lot of secular and cyclical tailwinds that are making it so that Boeing is a good stock," he added.
Cramer: RH Is Not a Furniture Store, It's an Experience
Restoration Hardware (RH) - Get Report reported earnings. It was up upwards of 6% after the high-end furniture retailer topped analysts' estimates for first-quarter earnings and boosted its forecast for the year, benefitting from the strong housing market. The company also raised its revenue growth guidance for fiscal 2021 to a range of 25% to 30% versus prior estimates of 15% to 20%.
"The un-masking of the general public could lead to a Roaring Twenties type of consumer exuberance," CEO and chairman Gary Friedman wrote in a letter to shareholders.
"Gary Friedman talks a lot in that conference call, and his excellent shareholder letter too, about how it's not a store -- it's galleries, a museum, architecture, restaurants, yachts, homes, mansions, and far more than a furniture store. It's an experiential club... they're just so exciting...Gary is a genius," said Cramer. "We just bought a house with crypto and basically outfitted the whole thing with RH," he added.
Why Cramer ‘Genuinely’ Believes GameStop Stock Can Move Higher
GameStop (GME) - Get Report stock fell Thursday after the company reported a narrower than expected first-quarter loss and added two former Amazon executives to the C-Suite. The company also announced plans to sell another 5 million shares and disclosed a request from the Securities and Exchange Commission on May 26 for a "voluntary production of documents."
However, Cramer took to Twitter to tell his followers that GameStop isn't an earnings story. As he has been for months, Cramer is still focused on seeing a full turnaround plan for the video game retailer.
Despite his frustration with a lack of details, Cramer told Action Alerts PLUS senior analyst Jeff Marks that he “genuinely” thinks there’s a path for GameStop to move higher.
Cramer: Ford Is a Buy on CPI Data
Joining Cramer during Thursday’s episode of TheStreet Live, Action Alerts PLUS senior analyst Jeff Marks told Cramer he was surprised by the increase in the price of used cars reported in Thursday’s CPI data.
Cramer thinks investors have more than one reason to buy Ford (F) - Get Report. "Ford Motor is a huge beneficiary of used cars. One of the reasons why Ford's bottom line will be so good is because they dramatically benefit from the increase in used trucks because there are not enough trucks. It's a fantastic situation for Ford. It's one of our large positions... if you want to try to play what's going on, play Ford," said Cramer.
Curious about what else Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer's exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.
Cramer on Wendy's: Where Gambling Ends, Education Begins
While Cramer believes the rally will be short-lived, he likes the name and says it reflects a new frontier for the r/wallstreetbets cohort.
"They cut their teeth with GameStop and AMC, two heavily shorted stocks, but now they are spreading their wings with these new stocks, especially an institutional favorite, Wendy's, with a very low short position," Cramer wrote in a Real Money column Tuesday.
Clover Health: Cramer Explains Short Position, Reddit's Reaction
Jim Cramer explains why the Reddit surge in Clover Health is working and why the stock was shorted in the first place.
"Nathan Weiss at Hindenberg did a really awesome analysis that explained the problems... but a lot of people got short because it was an intelligent short, and they're getting destroyed by people who don't give a damn about the short story. Nathan is an excellent analysis but anyone who listened to him just got overrun by people who said 'let's get the shorts.' And it's working," Cramer said.
WWDC Takeaways: Cramer Says Apple Is Widening Its Lead
While Apple's (AAPL) - Get Report yearly WWDC event left some on Wall Street wanting more, a slew of changes are on the way to your operating systems, and yes, if nothing else, Apple let you know that privacy is key.
Jim Cramer breaks down why he’s still excited about Apple. "When you see this product being incrementally made better, it does make it so their lead widens and it makes it so that the customer satisfaction is greater. That's what Tim Cook is about," Cramer said. "You can call it incremental, but I call it: game, set, match."
Biogen: Buy, Sell or Hold?
Jim Cramer told Action Alerts PLUS senior analyst Jeff Marks that it’s the moment to take profit in Biogen (BIIB) - Get Report after the stock rallied over 38% after FDA approval of its Alzheimer’s drug.
The company ticked higher on Friday as Wall Street analysts upgraded the drugmaker amid the controversy surrounding the Food and Drug Administration's clearance of its Alzheimer's treatment, aducanumab.
At Bernstein, analyst Ronny Gal lifted his rating on the Cambridge, Mass., company to outperform from market perform. He set his price target at $500. Gal called Aduhelm a product with a sales potential of more than $10 billion product in 2023.
Cramer Explains Business as a Force of Social Change
Cramer said businesses should also be forces for social change following news of Mastercard’s assistance to vaccine distribution in Africa and an interview discussing the Call of Duty Endowment with Activision Blizzard (ATVI) - Get Report CEO Bobby Kotick.
“My hope is that others will see this and say they want in, they want to lead, because institutions these days, traditional stalwarts, are often in disarray. But business has rarely been stronger and it is time to pony up like Mastercard, because the job of a company is not just to sell widgets, but to help make the world a cleaner, healthier, better place,” Cramer wrote on Real Money.
"The way to have longer-term wealth is to not give back a profit," Cramer said.
Cramer: Rate Environment Is Reason to be Pro-FAANG
Cramer told Action Alerts PLUS senior analyst Jeff Marks that he can’t blame investors for being weary amid waning and waxing inflation fears.
“I don’t blame anyone for being confused. Rates should be going higher,” Cramer said. “It’s very hard to figure out what to do.”