Today's action in the stock market is telling us that the effects of tariffs and trade might not be as cut and dried as we thought, Jim Cramer told his Mad Money viewers Monday. In fact, the companies that should be hurt the most were among the least affected today. That led Cramer to ask, "Does the trade war even matter with a red-hot economy?"
But Cramer said none of these names are acting like they're at ground zero of a major trade dispute. Emerson just built a new research center in China, while Honeywell continues to see double-digit growth in the country. If things were really bad, United Technologies wouldn't be allowed to buy Rockwell Collins (COL) .
We're also not seeing any appreciable effects at the consumer level. Cars are still selling at discounts, countering any tariffs on steel or aluminum. Lumber prices are falling and we haven't seen any job losses.
On the other side however, China's stock market has plunged 20%, with no end in sight. The Chinese might not be in as strong a position as they once thought.
Cramer and the AAP team remain bullish on Amgen (AMGN) . 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: Camping World Holdings
For his "Executive Decision" segment, Cramer again sat down with Marcus Lemonis, chairman and CEO of Camping World (CWH) , as well as the host of CNBC's "The Profit".
Lemonis said he recently purchased 25,000 shares of Camping World in the open market because he's a believer in the company's vision to double its number of RV dealerships over the next five years. He said the quickest way to increase profits is to increase Camping World's footprint across the nation.
When asked about the company's lower EBIDTA this quarter, Lemonis confirmed that Camping World has de-emphasized the slow-selling, high-price motor homes in order to focus on their bread-and-butter, entry-level towable campers that will lead younger consumers into a lifetime of camping enjoyment. Once people have their first camper, he said, there are plenty of services and annuities Camping World can provide. The motor home market, he added, never really recovered from the 2008 financial crisis.
Finally, Lemonis noted that rising gas prices and interest rates have a minimal impact on their sales. What does matter is the availability of credit. As long as customers can get a loan, Camping World can provide the rest.
Over on Real Money, Cramer tells us what he thinks of Coca-Cola's (KO) possible move into cannabis. Get more of his insights with a free trial subscription to Real Money.
Building Lifestyle Brands
Never underestimate the power of a lifestyle brand, Cramer told viewers. Very few companies have managed to create a lifestyle, he said, but when it happens, it can be lighting in a bottle.
Case in point: Lululemon Athletica (LULU) , which has become a lot more than just yoga pants. Lulu is now an identity, one you wear whether you're exercising or just relaxing with friends. The same goes for Boot Barn (BOOT) , which appeared on Mad Money just last week. Cramer said in a market that's more fragmented every day, people clamor to be a part of something bigger.
When VF Corp spins off its jeans business, Vans will account for nearly 30% of the company's sales. The brand has focused on its strength, action sports, and turned itself into the go-to name to express creativity and youth culture. Vans is making inroads internationally as well. VF now expects Vans to hit $3.4 billion in sales by the end of its fiscal 2019, two years ahead of schedule.
Executive Decision: Bausch Health Cos.
In his second "Executive Decision" segment, Cramer sat down with Joe Papa, chairman and CEO of Bausch Health Cos. (BHC) , formerly Valeant Pharmaceuticals, which has seen a remarkable turnaround under Papa's leadership.
Papa started off by saying that Bausch is just two years into a multi-year plan, but he's already very excited about the result he's seeing. He said that settling an intellectual property lawsuit over Xifaxan, its drug for irritable bowel syndrome, is a big win for Bausch, and provides them with another 10 years of patent protections so they can continue to invest the drug for patients.
Papa was also excited for his company's newest eyecare products, which includes everything from contacts lenses to treatments for glaucoma, as well as Lumify, a treatment for red eyes that already has a 20% market share.
Bausch's plans are to continue to grow earnings to pay down additional debt, Papa explained. Currently, he sees no need for additional divestitures, as they're in a strong position in the market.
In his "No-Huddle Offense" segment, Cramer said we're in a market that rewards obvious thinking, so don't overthink it. As money managers invest more into their winners, those winners go higher. That will likely be the pattern for the rest of the year.
What's not working? Cramer said the banks and the oils can barely mount a rally, and he'd avoid those groups.
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