Ride the Rotation: Cramer's 'Mad Money' Recap (Thursday 6/25/20)

Jim Cramer says some companies just can't help but rise on news of spikes in COVID-19 cases. Investors should know why.
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Thursday, we saw a rotation back into the COVID-19 stocks, Jim Cramer told his Mad Money viewers. That led the markets to new highs, even as COVID-19 cases continue to surge across the country.

Cramer said even the news that Texas was halting its reopening plans and California's Disneyland will delay its reopening wasn't enough to stop investors from piling back into the pandemic stocks, like those in Cramer's COVID-19 Index, which is now up 41% for the year.

What's sending the COVID-19 stocks higher? Cramer said stocks like McCormick  (MKC) - Get Report and Clorox  (CLX) - Get Report are surging on strong earnings, while the e-commerce stocks like Etsy  (ETSY) - Get Report and Shopify  (SHOP) - Get Report continue to make gains. Some of the biggest winners remain the work-from-home stocks like Zoom Video  (ZM) - Get Report and cybersecurity stocks like Zscaler  (ZS) - Get Report.

Finally, there are the megacap tech stocks that are making big moves. Stocks like Amazon  (AMZN) - Get Report and Apple  (AAPL) - Get Report make gains every time bad COVID-19 news strikes.

Adding fuel to Wall Street's fire is a growing sense among investors that even losing stocks will be winners, as the Federal Reserve has already told us they won't let any company fail. This notion has buoyed investor confidence so much that even beaten-down penny stocks now seem attractive.

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Executive Decision: Winnebago Industries

In his first "Executive Decision" segment, Cramer spoke with Michael Happe, president and CEO of Winnebago Industries  (WGO) - Get Report, the RV maker whose shares fell 7% when the company reported earnings.

Happe said this was a challenging quarter that included a shutdown and a restart of their operations, but it also saw some opportunities. He predicted a strong summer season for RVs and Winnebago, one that may extend into early fall as consumers continue their social distancing with select family and friends. He added that the outdoors is safer than being indoors and with extra free time, more consumers are discovering RVs.

Winnebago typically sees about a third of its business come from new customers, Happe said, but this year that number is surging to half and sometimes even more in certain areas. Happe was also bullish on his company's Chris-Craft Corp. acquisition, saying there are many similarities between RVs and marine craft and the Chris-Craft brand has many unique offerings you won't find with other vendors.

Cramer said he thinks the popularity in RVs is going to last, as driving yourself is now safer than flying.

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Executive Decision: Brunswick

For his second "Executive Decision" segment, Cramer also spoke with David Foulkes, CEO of Brunswick Corp.  (BC) - Get Report, a stock that's up 81% over the past three months and trades at 15 times earnings.

Foulkes said that after reopening their operations, demand for boats has ramped up quickly. Brunswick is hiring hundreds of new employees to help meet this new demand. His company's prior cost-cutting and streamlining on operations has put them in a very good position with capacity to increase production.

When asked about the new demand, Foulkes said it's a combination of delayed purchases as well as new boaters, including younger boaters and women, who are joining the boating community.

Foulkes was also bullish on their acquisition of Freedom Boat Club, a timeshare option for boating. He said the company had 170 locations but they just opened their 234th location. Freedom Boat Club is proving to be a great way to enjoy boating.

Finally, Foulkes said that Brunswick remains an American company with only a small portion of their manufacturing being done in China.

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Executive Decision: Salesforce.com

For his final "Executive Decision" segment, Cramer checked in Marc Benioff, founder, chair and CEO of Salesforce.com  (CRM) - Get Report, a company working hard to help companies and governments fight the coronavirus.

Benioff said every technology company needs to stay relevant and keep innovating and that's what Salesforce has done with Work.com, their site that helps companies reopen safely. There are 35 states and countless companies using Salesforce's tools for contact tracing, one of the many important steps in helping to contain the spread of the virus.

Benioff also advocated for the wearing of masks. He said we can decrease the transmission of the virus by 90% just by wearing masks. But to be completely safe, we must rethink the contactless office, he said. Employees need to work in shifts, stay spread apart and take other precautions, all of which Work.com can help them with.

Memo to Texas

In his No-Huddle Offense segment, Cramer asked, what's the difference between Texas and Rhode Island when it comes to COVID-19? Rhode Island has a plan and Texas has grit. Unfortunately, a plan beats grit every time, he said.

In the early days of the pandemic, we knew nothing about this disease or how to fight it. But that's no longer the case. We know that masks are the answer. We know that social distancing is the answer. And we know that contact tracing is the answer. Cramer said it's inexcusable that our government is not encouraging them and our president refuses to wear one.

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 Thursday evening: 

Yeti Holdings  (YETI) - Get Report: "You can't enjoy the outdoors without Yeti."

American Airlines  (AAL) - Get Report: "I don't like American. I like Southwest Airlines  (LUV) - Get Report."

General Electric  (GE) - Get Report: "Larry Culp will figure it out."

Amyris  (AMRS) - Get Report: "This is a very interesting story and I like it."

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