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Overseas Allies: Cramer's 'Mad Money' Recap (Tuesday  6/2/20)

Jim Cramer says times are very tough here right now, but with recovery signals coming from Europe and China, our international companies may get a boost.
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This was a day when our stock market was saved from overseas, Jim Cramer told his Mad Money viewers Tuesday, and it's the first time that has happened in ages. So while civil unrest and threats of military intervention are dominating the local headlines, Wall Street has its eyes set on China and Europe.

The Chinese economy is showing signs of recovery, Cramer told viewers, and that's great news for American companies that do business there. Investors fretted over Apple  (AAPL)  cutting prices in China, but Cramer noted the last time iPhones went on sale, Apple took a lot of market share. A recovering China is also good news for Nike  (NKE) , Starbucks  (SBUX) , and could even be positive for Caterpillar  (CAT)  and Boeing  (BA) .

But the biggest winners could be the semiconductors, with Skyworks Solutions  (SWKS) , Qorvo  (QRVO)  and Qualcomm  (QCOM)  being among Cramer's favorites.

Beyond China, Europe is also showing signs of a pulse as countries get serious about additional coronavirus stimulus packages. As Europe strengthens, the U.S. dollar is expected to weaken.

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.

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Short-term Oil Opportunities

With oil prices having rebounded from -$37 a barrel to $37, is it time to take a second look at the oil stocks? Cramer said he continues to believe that the future does not belong to fossil fuels. But in the short term, there might be gains to be had.

Cramer cautioned that investors cannot count on the dividends of oil producers, with the single exception of Chevron  (CVX) . Chevron's current 5.4% is safe and the only one worth investing in.

Beyond Chevron, Cramer advised staying out of oil pipeline stocks, as there's now more pipes than oil being produced. As for the oil producers themselves, Cramer said Pioneer Natural Resources  (PXD)  is his favorite. Pioneer has the best assets and among the lowest costs at just $4.80 a barrel.

For growth, Cramer recommended EOG Resources  (EOG)  and Diamondback Energy  (FANG) , along with Parsley Energy  (PE) .

Bulls Gone Fishing

There's a stealth bull market afoot in RVs and camping, Cramer told viewers. Unfortunately, we may already be late to the party.

It turns out that camping is the perfect COVID-19-free vacation, one with built-in social distancing. Given that just about every other destination is still off-limits, it's no wonder shares of Thor Industries  (THO)  and Winnebago  (WGO)  are up 175% and 243% respectively. Camping World  (CWH)  is also up 63% for the year.

The camping bull market really caught fire a few weeks ago, Cramer said. According to Google Trends, there's been a big spike in the term "RV Rentals Near Me" as consumers search for the only way to shelter in place and travel at the same time.

But Cramer also cautioned that with Thor trading at 20 times earnings and Winnebago at 17 times earnings, much of the COVID-related news is already baked into these stocks. He said they would be attractive on any weakness, which is why investors should keep an eye on them.

Executive Decision: Proofpoint

In his first "Executive Decision" segment, Cramer spoke with Gary Steele, chairman and CEO of Proofpoint  (PFPT) , the cybersecurity stock with shares that have fallen $15 from their highs earlier this year.

Steele said employees are certainly more vulnerable to cyber attacks and malware now that they're working from home. That's why it's important  to have solutions like Proofpoint to help detect and protect against attacks.

Nearly 20% of Proofpoint's customers are in the hospitality, travel and healthcare industries, Steel said. But as the company learned during the 2008 recession, even the hardest-hit industries will come back eventually. Steele expected it could take up to a year for hiring to return in some areas.

When asked what people can do to protect themselves, Steele said the same advice still applies. Don't click unknown links, don't open documents from unknown sources and always type website addresses directly into your browser. Don't trust links in emails.

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Executive Decision: Marvell Technology

For his second "Executive Decision" segment, Cramer also spoke with Matt Murphy, president and CEO of semiconductor maker Marvell Technology  (MRVL) , a stock Cramer owns for his charitable trust Action Alerts PLUS.

Murphy said that Marvell is celebrating their 25th anniversary this year, but it's been four years since his company began their transformation from a commodity chipmaker into a leading data infrastructure player. Marvell "solves for value," Murphy explained, and that means divesting in some areas while expanding in others. This strategy has made them major providers in automotive, broadband, embedded systems, switching and storage.

When asked about automotive, Murphy said he expects weakness throughout 2020 but said Marvell will be inside 16 different auto brands beginning in the 2021 models, where demand is expected to recover.

Turning to 5G wireless, Murphy said that Marvell has made several key acquisitions that differentiate them in the market and has allowed them to be a part of the 5G revolution in every geography. Marvell no longer counts China's Huawei as a customer however, after government restrictions forbid it.

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 Tuesday evening:

Ares Capital  (ARCC)  "We don't know what they're investing in and I'm not going to recommend it."

UBS  (UBS) : "I'd rather go with Wells Fargo  (WFC) ."

Arcturus Therapeutics  (ARCT) : "This is a speculative stock, so don't put too much money in it, but I like the RNA story."

Alteryx  (AYX) : "I think they're a buy. "

Lyft  (LYFT) : "We've got COVID and now protesting in cities, that's just too much for them."

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