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Reopening Plays: Cramer's 'Mad Money' Recap (Monday 3/1/21)

Jim Cramers sifts through this relentless run in the reopening plays to find the less-obvious companies poised for profit.
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Forget about investing in the obvious economic reopening stocks, Jim Cramer told his Mad Money viewers Monday. That ship sailed weeks ago, Cramer said, but there are a handful of stealth reopening stocks that are hiding in plain sight.

The problem with investing in the obvious reopening stocks, like Johnson & Johnson  (JNJ) - Get Johnson & Johnson Report and Walt Disney Co.  (DIS) - Get The Walt Disney Company Report, is that they've already posted big gains, making you late to the party. They're also prone to secondary stock offerings like we saw today in Royal Caribbean Cruises  (RCL) - Get Royal Caribbean Group Report, which plunged 2%.

Instead, Cramer said he's betting with stocks like payment processor Square  (SQ) - Get Block Inc. Class A Report, which today announced the company is starting a bank to broaden its offerings. Investors can also consider Ralph Lauren  (RL) - Get Ralph Lauren Corporation Report, which used the pandemic to close under-performing stores and is now on a solid footing for reopening. Shares closed up 2.7% by the close.

Next was Ulta Beauty  (ULTA) - Get Ulta Beauty Inc. Report, which begins rolling out to Target  (TGT) - Get Target Corporation Report locations this year, adding to its already strong retail and e-commerce footprint. Cramer also recommended Federal Realty Trust  (FRT) - Get Federal Realty Investment Trust Report, the shopping center REIT with an excellent CEO, Don Wood.

Finally, Cramer championed Ford Motor  (F) - Get Ford Motor Company Report, the automaker that's turning around its operations as customers await its electric F-150 pickup truck.

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.

Executive Decision: Martin Marietta

In his first "Executive Decision" segment of the week, Cramer spoke with Ward Nye, chairman, president and CEO of Martin Marietta Materials  (MLM) - Get Martin Marietta Materials Inc. Report, on the heels of the company's analyst day.

Nye said that while pricing for products typically remains strong during downturns like the pandemic, what we are seeing now is both good pricing coupled with good demand. He said the boom in housing, expected government spending and the economic reopening, all are contributing to record performance.

When asked about the prospects of Democratic-led infrastructure spending, Nye noted that the U.S. hasn't seen significant federal infrastructure spending in almost 15 years.

Outside of government spending though, Nye said mega-regions, like the "golden triangle" in Texas, continue to be a huge driver for growth. He also called out data centers, especially for Apple  (AAPL) - Get Apple Inc. Report, Amazon  (AMZN) - Get Inc. Report, Google  (GOOGL) - Get Alphabet Inc. Report and Facebook  (FB) - Get Meta Platforms Inc. Report, as being especially aggregates intensive.

Finally, Nye said the move towards green energy also will increase demand for materials from Martin Marietta. Going green does not mean you won't need concrete, he said.

Off the Charts

In the "Off The Charts" segment, Cramer checked in with his colleague Mark Sebastian over the direction of markets using the "fear gauge," also known as the CBOE Volatility Index undefined.

Sebastian first noted the difference between a spike and a swell in the VIX. A spike, he said, is a sharp move higher followed by a sharp decline. Spikes are buying opportunities. A swell, on the other hand, is a slow rise in the VIX that occurs in tandem with a rise in the broader markets. Swells are danger signs.

When looking at a chart of the VIX alongside the S&P 500 over the past year, Sebastian noted spikes in June and November of 2020 and in January of this year, all of which were followed by weeks of the markets heading higher. He also noted two swells in February and August of 2020, both of which were followed by market declines.

What does that leave us now? According to Sebastian, what we are seeing now is a spike and one that should be bought as there is more upside ahead.

Executive Decision: Sailpoint Technologies

For his second "Executive Decision" segment, Cramer also spoke with Mark McClain, cofounder and CEO of SailPoint Technologies  (SAIL) - Get SailPoint Technologies Holdings Inc. Report, the cybersecurity company that just posted their 13th consecutive quarter of revenue and earnings growth. Shares of SailPoint are up 138% over the past year.

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McClain said the market for identity management is huge, as many companies are still struggling with legacy systems. He explained that the old security model was to have strong firewalls around a centralized network. But in today's cloud-enabled, work-from-home world, your applications and data are everywhere, which calls for new models.

Identity management is a central control point for modern company networks, McClain continued. Not only do they control who has access and who doesn't, but they also control which applications and services every employee needs. That way, even if an identity is compromised, the damage can be contained.

When asked about competition, McClain noted that the market for cybersecurity is big enough for everyone and is only getting bigger as companies realize they cannot afford not to upgrade to the best protection. 

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.

Tech Stars Shine

In his "No Huddle Offense" segment, Cramer circled back on last Thursday's show when he interviewed executives from Nvidia  (NVDA) - Get NVIDIA Corporation Report,  (CRM) - Get Salesforce Inc. Report, Fisker  (FSR) - Get Fisker Inc. Class A Report, Twitter  (TWTR) - Get Twitter Inc. Report and Airbnb  (ABNB) - Get Airbnb Inc. Report, all in a single show.

Cramer reiterated that the market got it wrong with Nvidia and the semiconductor market is still very strong. As for Salesforce, Cramer said that deferred revenue is the key metric to look for and Salesforce is hitting it out of the park.

Fisker is not just a clone of Tesla  (TSLA) - Get Tesla Inc. Report, Cramer said, it's a unique approach to selling cars. Meanwhile, Twitter is a turnaround story that has become the fourth largest advertising platform.

Finally, there's Airbnb, which is poised to soar as travel returns and travelers opt for staying with friends in homes rather than at big, soulless resorts.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Monday evening:

Penn National Gaming  (PENN) - Get Penn National Gaming Inc. Report: "This is a great story. It's going higher. It's not done."

Edwards Lifesciences  (EW) - Get Edwards Lifesciences Corporation Report: "Those guys are terrific. I want to buy that one right now."

Snap  (SNAP) - Get Snap Inc. Class A Report: "They are the real deal. They are doing really well."

Tattooed Chef TTCF: "If you want this group, go with Beyond Meat  (BYND) - Get Beyond Meat Inc. Report."

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AMZN, GOOGL, FB, NVDA, CRM.