Next Week's Game Plan: Cramer's 'Mad Money' Recap (Friday 12/11/20)

Stimulus negotiations and vaccine moves likely to dominate next week's market action.
Author:
Publish date:

While the major averages made today's trading look rather benign, Jim Cramer told his Mad Money viewers Friday that under the covers, it was a tumultuous session with wild cross-currents. Speculation was the theme of Cramer's game plan for next week's action, but only if you do it wisely.

Beginning on Monday, the markets will be reacting to any news of an economic stimulus package as well as the expected emergency approval of Pfizer's (PFE) - Get Report and BioNTech's  (BNTX) - Get Report COVID vaccine. Both of these event will be in control of the stock market. Abbvie  (ABBV) - Get Report will be holding an analyst meeting on Monday, which made Cramer bullish on the stock for the short-term.

Next, on Tuesday we will hear from animal health laggard Elanco  (ELAN) - Get Report, a stock which Cramer said is a buy after Chewy  (CHWY) - Get Report rallied 9% to new all-time highs today.

Wednesday will see earnings from home-builder Lennar  (LEN) - Get Report and furniture-maker Herman Miller  (MLHR) - Get Report. Cramer said he's bullish on housing, but with Federal Reserve chair Jay Powell speaking about the economy later in the day, things could get dicey. Herman Miller shares have run into earnings, making them risky as well.

Thursday brings a glut of earnings from companies like Accenture  (ACN) - Get Report, General Mills  (GIS) - Get Report, Rite Aid  (RAD) - Get Report, FedEx  (FDX) - Get Report and electronic manufacturer Jabil  (JBL) - Get Report. However, all eyes will be on the FDA panel reviewing the Moderna  (MRNA) - Get Report vaccine. Cramer said Accenture and General Mills remain strong and Jabil will pop off of strong sales of Apple's  (AAPL) - Get Report iPhone.

Rounding out the week will be Darden Restaurants  (DRI) - Get Report on Friday, along with Nike  (NKE) - Get Report. Cramer said while Darden will likely disappoint this quarter, its outlook for the future is strong. He said Nike will be the best news of the week. 

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 miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.

Executive Decision: Trulieve

In his first "Executive Decision" segment, Cramer spoke with Kim Rivers, chairman and CEO of Trulieve  (TCNNF) - Get Report,  the medical cannabis provider with 73 stores in Florida, California, Connecticut and Pennsylvania.

Rivers said that it's always a celebration when Trulieve opens a new store and they're profitable right from the beginning. The company last reported 19% same-store sales growth and now has 52% marketshare in Florida.

Rivers added that cannabis continues to be on a strong growth trajectory. There were cannabis initiatives on the ballot in five states this election cycle and every one of them passed, she noted.

While Trulieve continually invests their profits back into their business, it's not all smooth sailing. Until cannabis is fully legalized, the company must endure a 50% tax rate and it does not have access to business loans and other financial services. 

A Remodeling Play

Investors looking to play the boom in home building and remodeling should look at stock of Azek Company  (AZEK) , Cramer told viewers. He said this composite deck maker has been overlooked by Wall Street and shares are poised to rally.

There's a lot to like at Azek, Cramer said. The company is in a growing market, taking market share, improving its gross margins and has a COVID tailwind and homeowners across the country consider the outdoor deck as one of the safest place for small gatherings.

When compared to traditional wood deck materials, there's simply no comparison. Composites last longer, have lower maintenance and look great. That's why Azek saw sales surge 22% in its last quarter and is adding additional capacity for the 2021 season.

Azek came public as a private equity backed IPO, which meant it was saddled with more than its fair share of debt. But Cramer said the company has been aggressively cleaning up its balance sheet and could be debt-free in as little as a year.

Composite decking also has a sustainability angle, Cramer noted, as the company recycles 400 million pounds of scrap plastic from landfills for use in its decking products. 

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.

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

Executive Decision II: Inseego

For his second "Executive Decision" segment, Cramer also spoke with Dan Mondoor, chairman and CEO of Inseego  (INSG) - Get Report, makers of mobile hotspots for remote working. Shares of Inseego are up 87% for the year, including 12.2% Friday after the company announced a partnership with T-Mobile  (TMUS) - Get Report for its first 5G hotspot.

Mondoor said that Inseego is still in the early stages of the 5G revolution and they're seeing incredible demand for their products and services around the globe. He said that 5G will be a decade-long upgrade cycle and we're still in the very early innings.

In addition to the benefits for consumers, Mondoor was excited for the possibilities of enterprise use cases. He said Inseego sells a lot more than just hotspot hardware, they also have a full suite of software, including cybersecurity products, to help keep remote workers and applications safe. In addition to T-Mobile, Inssego also has partnerships with AT&T  (T) - Get Report and Verizon  (VZ) - Get Report in the U.S.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said he lived through the dot-com bubble once, and he doesn't want to do it again.

If there's one word to describe the dot-com euphoria, it's "mania," Cramer said. The dot-com crash wiped out an entire generation of investors and it could happen again if the IPO process isn't reformed.

Cramer explained that market makers aren't allowed to offer more shares when IPO demand spikes, sending prices into the stratosphere. But that's exactly what should happen to prevent sky-high prices that only hurt investors months later as lock-up periods expire and the needed shares are finally released.

Without these reforms, Cramer said, the euphoria will continue and new investors and shareholders risk getting hurt. 

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Lightning Round

In the Lightning Round, Cramer was bullish on Tortoise Energy Infrastructure TYG, HP  (HPQ) - Get Report, United Continental  (UAL) - Get Report, NVIDIA  (NVDA) - Get Report, JD.com  (JD) - Get Report, Alibaba  (BABA) - Get Reportand Bristol-Myers Squibb  (BMY) - Get Report.

Cramer was bearish on Nano Dimension  (NNDM) - Get Report, Fastly  (FSLY) - Get Report and Viatris VTRS.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.