Vaccine vs. Virus: Cramer's 'Mad Money' Recap (Monday 12/14/20)

Jim Cramer says the pandemic will end, but not immediately. He's looking at stocks and sectors poised to move as lockdowns increase.

The stock market doesn't care about the COVID-19 vaccine anymore, Jim Cramer told his Mad Money viewers Monday. The recovery stocks are passing the baton back to the lockdown winners, Cramer said, because lockdowns are where we're headed.

Even though our long pandemic nightmare is slowly coming to a close, there is still no end in sight, and that means the recovery is still a long way off.

The market's rotation back to the COVID stocks was on full display Monday, starting with the oil stocks retreating. Shares of Occidental Petroleum  (OXY) - Get Report fell 8.2% after an 88% run over the past three months. Rival Exxon Mobil  (XOM) - Get Report dipped 3.6%.

The restaurants and cruise lines were also weak, as prolonged closures and restrictions are likely to continue through the winter. Cramer urged investors to let stocks like Norwegian Cruise Line Holdings  (NCLH) - Get Report fall even more before starting a position.

Even in entertainment, shares of Walt Disney Co.  (DIS) - Get Report plunged as movie theaters remain under pressure. Meanwhile, stay-at-home giant Netflix  (NFLX) - Get Report was able to rally by the close. Other stay-at-home winners included Amazon  (AMZN) - Get Report and Peloton  (PTON) - Get Report.

Cramer said investors are likely to continue flocking to the COVID stocks.

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.

Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.

Executive Decision: QuantumScape

In his first "Executive Decision" segment, Cramer checked back in with Jagdeep Singh, chairman and CEO of QuantumScape  (QS) - Get Report, the solid-state battery maker that saw its shares plunge 16% last week and another 12.5% Monday as investors locked in their gains. Shares of QuantumScape had soared over 189% over the past three months.

Singh said that solid state batteries can offer many advantages over current battery technology including longer range, faster charging, higher energy density and ultimately lower costs. The challenge, he said, is executing on all of these promises. If QuantumScape is able to execute according to their plan, Singh said there is a massive opportunity to change the world.

When asked about current EV adoption, Singh theorized that EVs only account for 2% of total vehicle sales because current batteries simply aren't competitive with combustion engines. If EVs could offer more range and faster charging however, he said 50% EV adoption is possible in just a few years.

Cramer said he's a big believer in the future of electric vehicles, but cautioned viewers that QuantumScape isn't projecting any meaningful revenues until 2027.

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.

Executive Decision: Veru

For his second "Executive Decision" segment, Cramer also spoke with Dr. Mitchell Steiner, chairman, president and CEO of Veru  (VERU) - Get Report, a biotech leading a charge against breast and prostate cancer.

Steiner explained that Veru's goal is to change the standard of care for patients diagnosed with breast or prostate cancer. He said those with breast cancer don't want the side effects of traditional chemotherapy, which is why Veru's treatment, which received positive Phase II trial data Monday, is an oral pill that can be taken at home instead of having to receive chemotherapy in a hospital or clinic.

Unlike chemo, which can cause side effects such as nausea and hair loss, Veru's pill eliminates those side effects and has the added benefits of increasing function and building bones. The company expects a Phase III study, which will include 240 patients, to be concluded in 18 to 24 months.

Veru's prostate cancer treatment has a similar profile, Steiner said, and is simply a pill that can change the standard of care for the most common form of cancer in men. He said the treatment promises to improve the patient's quality of life and treat them at home, rather than at a clinic or hospital.

Executive Decision: Lydall

For his final "Executive Decision" segment, Cramer checked in Sara Greenstein, president and CEO of Lydall  (LDL) - Get Report, makers of the filtration media used in N95 surgical masks. Shares of Lydall have soared from $5 a share to $29 over the past year.

Greenstein said that while anyone can make a mask, it's the filtration media inside that protects our frontline workers. "We are what's inside when what's inside matters," she added.

While many investors may not have heard of this 150-year old company, Greenstein said Lydall tripled their capacity to ensure that the world has the filtration media it needs in the fight against COVID-19.

As the pandemic began, the world suddenly realized that most face masks were made in China, Greenstein said, but now there's been a wakeup call and countries around the globe are looking for reliable, regional suppliers like Lydall. Lydall has partnerships with the U.S. and France with many others in the works.

Beyond COVID, Greenstein added that the world is shifting towards better air quality, whether that's in buildings or cars, protecting against viruses, allergens or smoke from wildfires.

Off the Charts

In the Off The Charts segment, Cramer checked in with colleague Bob Lang over the charts of the casino stocks, which Cramer said will be ready to soar once the pandemic subsides and travel resumes.

Lang first looked at Wynn Resorts  (WYNN) - Get Report, noting the bullish "W" pattern, along with a strengthening on-balance volume trend. Similar bullish patterns were seen in MGM Resorts  (MGM) - Get Report and Las Vegas Sands  (LVS) - Get Report, both of which have a strong presence in China's Macau.

Cramer said the casinos are poised to have a strong 2021 due to both the COVID-19  vaccine and thawing trade relations with China under a Biden administration.

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:

Appian  (APPN) - Get Report: "I think we may have hit the top. Let's take some off the table."

Sportsman's Warehouse  (SPWH) - Get Report: "I prefer Dicks Sporting Goods  (DKS) - Get Report and I think that might be a better way to play."

At Home Group  (HOME) - Get Report: "This is a place to get furniture and I think it's good."

Parsley Energy  (PE) - Get Report: "The only oils I'm recommending are Pioneer Natural Resources  (PXD) - Get Report and Chevron  (CVX) - Get Report."

Bed Bath & Beyond BBBY: "I'd buy  (BBBY) - Get Report."

Yum! Brands  (YUM) - Get Report: "It's a buy under $100. Let's wait."

Amarin  (AMRN) - Get Report: "I think it's hype. I'd speculate at $5."

Pivotal Investment  (PIC) - Get Report: "I'm not going against them. They're a moneymaker. "

Vaxart  (VXRT) - Get Report: "That one is too speculative for me."

XPeng  (XPEV) - Get Report: "No, no. I like Alibaba  (BABA) - Get Report."

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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