Who's Got the Vaccine?: Cramer's 'Mad Money' Recap (Thursday  7/23/20)

Jim Cramer looks at the companies working on COVID-19 vaccines and which among them are poised for success and profit.
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Our world won't be the same until we get a vaccine, Jim Cramer told his Mad Money viewers Thursday. That's why he used a recent poll of 92 analysts and public health experts to analyze which companies are the most likely to deliver.

Those surveyed in the poll said the vaccine being developed by AstraZeneca  (AZN) - Get Report was the most promising, with those of Moderna  (MRNA) - Get Report and Pfizer  (PFE) - Get Report tied for second place. Further down the list were Johnson & Johnson  (JNJ) - Get Report, Novavax  (NVAX) - Get Report and GlaxoSmithKline  (GSK) - Get Report. Cramer said what he found most interesting about the poll was that it didn't seem to matter what stage of testing companies were in. Vaccines take time and there's simply nothing we can do to speed them up.

So which companies are worth investing in? Cramer said AstraZeneca would be his favorite of the group. He called Moderna too promotional for a stock that's already up 285% for the year. Novavax was a high-risk/high-reward option, Cramer said, and J&J would be a safer investment given the company has many other businesses.

As for COVID-19 treatments, Cramer said Gilead Sciences  (GILD) - Get Report, Regeneron  (REGN) - Get Report and Eli Lilly  (LLY) - Get Report all are on his list.

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Too Hot, Too Fast

Sometimes a stock just gets too hot and the resulting weakness has nothing to do with the fundamentals, Cramer told viewers. That was the case when Microsoft  (MSFT) - Get Report and Tesla  (TSLA) - Get Report reported earnings this week. Both companies reported great numbers, Cramer said, but investors sold their stock regardless.

Cramer said investors should be worried about the other tech giants that will be reporting soon, namely Apple  (AAPL) - Get Report and Facebook  (FB) - Get Report, especially as antitrust hearings gear up again on Capitol Hill next week. It's likely that all of the major tech stocks with big gains will decline after they report, he said, but they will all most certainly recover quickly thereafter. That's why Cramer continued to recommend owning, and not trading, the tech stocks. It's often too hard to get out and back in fast enough to catch the move, he said.

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Know Your IPO

In his "Know Your IPO" segment, Cramer returned to the recent IPO of Ncino (NCNO), the cloud-based banking software provider that saw its shares rocket from $31 to $91 on their first day of trading.

Cramer said on the surface, Ncino sits at the sweet spot of fintech and cloud software, helping banks large and small with digital services from loan origination and approvals to compliance. The company has been on fire lately, posting 49% revenue growth in its most recent quarter, thanks in part to a subscription revenue model and keeps banks coming back for more.

Cramer said Ncino is a terrific company with a terrific business, but the stock is simply too pricey, trading for a lofty 47 times sales. Cramer said there are only four cloud stocks with valuations higher than Ncino at the moment, one of which is Zoom Video  (ZM) - Get Report. Investors would be chasing the stock at current valuations, Cramer said, which is why he would only recommend it around $45 a share, a valuation that might be likely, as Ncino's IPO was small, leaving the possibility of a secondary offering coming soon.

Executive Decision: Lemonade

In his "Executive Decision" segment, Cramer spoke with Daniel Schreiber, co-founder, chairman and CEO of Lemonade  (LMND) , the recent IPO that's disrupting the insurance industry.

Schreiber said the insurance industry is one of the easiest to disrupt and he doesn't envy the CEOs of legacy companies. He explained that the entire insurance industry was built around brokers and commissions using software largely from the 1980s. Legacy insurance providers simply cannot match Lemonade.

Lemonade has reimagined the entire insurance business, Schreiber said, and can provide policy approvals in just 90 seconds and pay claims in just three seconds. They also align their interests with those of their customers, which reduces fraud and allows them to donate to charity.

Cramer said he's glad Lemonade exists as the insurance industry was indeed ripe for disruption.

Executive Decision: MP Materials

For his second "Executive Decision" segment, Cramer also spoke with Jim Litinsky, CEO of MP Materials, the privately-held rare earth mining company that will be coming public soon via a special purpose acquisition company, or SPAC, transaction.

Litinsky explained that MP Materials purchased the rare earth mine of the now bankrupt Moly Corp. The company has 220 employees and is profitable, representing the only rare earth mine in the Western Hemisphere and accounting for 15% of global production.

When asked about the bankrupt Moly Corp, Litinsky said that Moly was simply a decade too early. There were no electric vehicles on the road at scale and the company couldn't compete with China, which has a stranglehold on the rare earth market.

Litinsky added that MP Materials considered a traditional IPO, but chose the SPAC transaction instead because it was the quickest and most efficient way to enter the public market.

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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:

The Trade Desk  (TTD) - Get Report: "I like TradeDesk. They are very well run. I'd stick with them."

Astronics  (ATRO) - Get Report: "If you want aerospace, I'm gonna send you to Raytheon Technologies  (RTX) - Get Report or Honeywell  (HON) - Get Report."

GW Pharmaceuticals  (GWPH) - Get Report: "This stock is stuck, but I like this company."

Dish Network  (DISH) - Get Report: "I don't know a lot of people who like it, but I like it."

Takeda Pharmaceutical  (TAK) - Get Report: "I think they're smart people and I'm in favor of buying that stock."

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At the time of publication, Cramer's Action Alerts PLUS had a position in JNJ, MSFT, APPL, FB.