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 Occidental Petroleum Corporation Report fell 8.2% after an 88% run over the past three months. Rival Exxon Mobil (XOM) - Get Exxon Mobil Corporation 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 Norwegian Cruise Line Holdings Ltd. Report fall even more before starting a position.
Even in entertainment, shares of Walt Disney Co. (DIS) - Get Walt Disney Company Report plunged as movie theaters remain under pressure. Meanwhile, stay-at-home giant Netflix (NFLX) - Get Netflix, Inc. Report was able to rally by the close. Other stay-at-home winners included Amazon (AMZN) - Get Amazon.com, Inc. Report and Peloton (PTON) - Get Peloton Interactive, Inc. Class A Report.
Cramer said investors are likely to continue flocking to the COVID stocks.
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Executive Decision: QuantumScape
In his first "Executive Decision" segment, Cramer checked back in with Jagdeep Singh, chairman and CEO of QuantumScape (QS) - Get QuantumScape Corporation Class A 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.
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Executive Decision: Veru
For his second "Executive Decision" segment, Cramer also spoke with Dr. Mitchell Steiner, chairman, president and CEO of Veru (VERU) - Get Veru Inc 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 Lydall, Inc. 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 Wynn Resorts, Limited Report, noting the bullish "W" pattern, along with a strengthening on-balance volume trend. Similar bullish patterns were seen in MGM Resorts (MGM) - Get MGM Resorts International Report and Las Vegas Sands (LVS) - Get Las Vegas Sands Corp. 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.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:
Sportsman's Warehouse (SPWH) - Get Sportsman's Warehouse Holdings, Inc. Report: "I prefer Dicks Sporting Goods (DKS) - Get Dick's Sporting Goods, Inc. Report and I think that might be a better way to play."
Parsley Energy (PE) - Get Parsley Energy, Inc. Class A Report: "The only oils I'm recommending are Pioneer Natural Resources (PXD) - Get Pioneer Natural Resources Company Report and Chevron (CVX) - Get Chevron Corporation Report."
Pivotal Investment (PIC) - Get Pivotal Investment Corporation II Class A Report: "I'm not going against them. They're a moneymaker. "
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At the time of publication, Cramer's Action Alerts PLUS had a position in DIS, AMZN.