Stupidly Bullish: Cramer's 'Mad Money' Recap (Tuesday  8/4/20)

It's not market manipulation, says Jim Cramer. He thinks it's clueless buying, and some investors will have no one to blame but themselves.
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Never underestimate the power of enthusiastic buyers who don't have a clue what they're doing, Jim Cramer told his Mad Money viewers Tuesday. Clueless buyers were front and center today, Cramer explained, as he called Tuesday's market rally "stupidly bullish."

Thirteen years ago, Cramer made his famous "They know nothing" rant against a clueless Federal Reserve. But today's Fed knows a lot, Cramer said, and has been out in front of the pandemic, offering liquidity, loans and assistance wherever needed.

Cramer said he could blame Congress for letting the stimulus expire, but that, sadly, is the political situation at the moment.

Instead, Cramer saved his criticisms for the know-nothing buyers who have sent shares of Sorrento Therapeutics  (SRNE) - Get Report up 440% over the past three months. Last week, Sorrento announced they were licensing their rapid COVID test. And Tuesday, a week later, the stock rallied 31%.

Shares of Advanced Micro Devices  (AMD) - Get Report did nothing last week when rival Intel  (INTC) - Get Report announced more delays in its 7nm chips. But today, on no news, AMD rallied 9.5%.

Finally, Cramer called out oil giant BP  (BP) - Get Report, which painted a rosy picture and raised its dividend earlier this year, only to retract all of that optimism today with a gloomy outlook for the foreseeable future. Shares of BP rallied 7.4% by the close.

So the next time you see the market up big, it might not be the Fed or the White House, Cramer concluded. It might just be plain old stupidity.

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Executive Decision: B&G Foods

In his first "Executive Decision" segment, Cramer spoke with Ken Romanzi, president and CEO of B&G Foods  (BGS) - Get Report, the packaged foods maker with shares up 64% in 2020.

Romanzi said that nearly 80% of U.S. households already use one or more B&G Food brands and the company has seen strong growth in new customers as well. The Green Giant brand continues to be exceptionally strong since B&G acquired it in 2016. Romanzi explained that they've been able to revitalize the brand with innovation and completely new products made from the same vegetables that made the brand a household name.

When asked about the effects of the pandemic, Romanzi said he thinks remote working is here to stay. He said he doesn't know of any company that plans to bring all of their workers back to the office five days a week. That means more demand for breakfasts and lunches at home, which means more demand for B&G Foods.

Why Speculate on EVs?

Why speculate on the next Tesla  (TSLA) - Get Report when you can just own Tesla? That was the question Cramer asked his viewers, while digging into the dozens of speculative electric vehicle companies that are beginning to flood the markets.

Cramer said there's a bull market in Tesla because Tesla is actually making money. The rest of the EV market? Not so much. So why look for "the next Tesla" or the "Chinese Tesla" or the "Tesla of trucks" when you can just own the real thing?

Nikola Motors  (NKLA) - Get Report came public at $34 a share and rallied to $94 before plunging back to $38. The company has no products, only an electric truck planned for next year and hydrogen trucks planned for 2023.

Nio  (NIO) - Get Report is billed as the Chinese Tesla, but the company has negative gross margins and is far from profitability. Cramer said the Chinese Tesla is Tesla, now that the company has a factory in Shanghai.

Then there are smaller players, like Li Auto, another Chinese EV maker that to date has made only 10,000 vehicles. Add to that Fisker, Lordstown Motors, Workhorse and countless others and it's easy to see how supply is overwhelming demand.

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Business vs. the Virus

Can business triumph over COVID-19? It certainly doesn't look like it if you're a small business in America, but if you're a big business, things might not be so bad.

Cramer said he was encouraged by the 4.6% rise in Walt Disney Co.  (DIS) - Get Report, despite the company reporting an 85% decline in theme park revenue. It turns out the company's other divisions, including streaming and ESPN, were not as bad as some had feared.

Add to that a spike in crude oil prices and an increase in manufacturing orders and Cramer said there are some signs of life in our economy outside of companies like Etsy  (ETSY) - Get Report, Shopify  (SHOP) - Get Report and PayPal  (PYPL) - Get Report, which are all rapidly trying to help small businesses survive online.

Given the strong macro-economic signals, Cramer said he's bullish on the outlook for retailers like Home Depot  (HD) - Get Report, Costco  (COST) - Get Report, Walmart  (WMT) - Get Report, Target  (TGT) - Get Report and yes, Amazon  (AMZN) - Get Report.

Can Brand-Name Goods Hang on?

In his "No Huddle Offense" segment, Cramer asked, "how long can the consumer packaged goods makers keep posting such terrific numbers?" The answer, no one really knows.

This week, Clorox  (CLX) - Get Report posted 24% organic sales growth and spectacular earnings. How much of those earnings stem from the pandemic and how much is sustainable? It's hard to gauge. The world is stocking up, but it's also entering a recession where consumers typically trade down from brand names to generic alternatives.

Cramer said he thinks Clorox gave conservative guidance and their outlook is better than they're leading on. That's why he remains bullish on the company and would buy the stock into any weakness.

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:

Kellogg Co.  (K) - Get Report: "I like Kellogg. It's not as bad as it used to be."

Smartsheet  (SMAR) - Get Report: "If you want the cloud, you want ServiceNow  (NOW) - Get Report or Salesforce.com  (CRM) - Get Report."

Uber  (UBER) - Get Report: "I think Uber is OK. They need to get rid of everything that's not making money."

Dropbox  (DBX) - Get Report: "I'm a seller, not a buyer, of Dropbox."

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