Wall of Worry: Cramer's 'Mad Money' Recap (Wednesday 12/16/20)

Jim Cramer says investors should accept the negative, because negativity and skepticism is what fuels any sort of turnaround.
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Fairly or unfairly, this is a great moment for the stock market, Jim Cramer told his Mad Money viewers Wednesday. While the doubters might think that the rally is bogus, Cramer said there's a lot to like going into 2021.

Cramer explained that we're truly in a "best of times, worst of times," situation. This is the best of times for the rich and for big business, while it's the worst of times to many low-income individuals and the small businesses that employ them. But there is a lot of hope ahead, Cramer said, including a long-awaited stimulus bill out of Washington.

Which stocks caught Cramer's eye in Wednesday's session? He called out the 10% gain in organic growth at Stanley Black & Decker  (SWK) - Get Report as a terrific sign this venerable toolmaker is still alive and well. The great news bodes well for both Home Depot  (HD) - Get Report and Lowe's  (LOW) - Get Report, both of which sell a lot of Stanley Black & Decker's tools.

Cramer was also bullish on Lululemon Athletica  (LULU) - Get Report, whose CEO, Calvin McDonald, appeared on Tuesday's show, and is perfectly positioned for both online and in-store sales going forward. He also continued to recommend Boeing  (BA) - Get Report, which is likely to see increased orders from China as trade relations thaw.

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Executive Decision: MP Materials

In his first "Executive Decision" segment, Cramer spoke with James Litinsky, founder, chairman and CEO of MP Materials, the rare earth mining company that recently came public via a specialty purpose acquisition company. Since its reverse merger, shares have rallied from $15 to over $28.

Litinsky said that they've been able to do remarkable things since buying their mine out of bankruptcy. He said the company was only eight people when they purchased it, but they are now producing three times the materials and they are profitable.

When asked about the need for rare earth materials, Litinsky explained that whether you're talking about electric vehicles, wind power or drones, everything relies on rare earth magnets. It doesn't matter if your EV is powered by lithium-ion, solid state batteries or hydrogen, the motors all need magnets. Historically, those magnets have all come from China, but MP Materials is now giving companies like Tesla  (TSLA) - Get Report and Apple  (AAPL) - Get Report a U.S.-based alternative.

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Executive Decision: Boeing Co.

For his second "Executive Decision" segment, Cramer also spoke with David Calhoun, president and CEO of Boeing  (BA) - Get Report, the aerospace giant that's poised to finally put the 737Max problems, and the pandemic, behind it.

Regarding the pandemic, Calhoun said the Federal Reserve did a lot of good things early on in the pandemic, including providing credit to both Boeing and the airlines. Those initial moves have kept them in business.

Calhoun said the message is getting out that even when it comes to airborne viruses, airplanes are a very safe place to be. While some business interactions are likely to shift permanently to video conferencing, Calhoun said business relationships will always be built with face-to-face meetings and business travel.

When asked about their business in China, Calhoun was bullish on the outlook. He said the Chinese economy is coming back in a big way and the Chinese need airplanes. He was also bullish on Boeing's defense business, saying the company is proud to serve the needs of our servicemen and women.

Finally, Calhoun admitted that Boeing hasn't talked much about their space aspirations, but said that they still embrace space and when humans set foot on Mars, Boeing will be there.

Executive Decision: Okta

For his final "Executive Decision" segment, Cramer checked in Todd McKinnon, chairman and CEO of cybersecurity company Okta  (OKTA) - Get Report, which just delivered another strong quarter. Shares of Okta are up 125% for the year.

McKinnon said that anyone who has dealt with multiple logins and passwords knows, establishing your identity is both critically important and a total pain. That's why Okta's technology helps companies provide better experiences while also only giving people access to what they're supposed to see. This is especially important in today's world, he said, where people are working and interacting from all over globe and often from home.

McKinnon added that at many companies, legacy, on-premise networks and technology make it hard to protect themselves from attack. But using the cloud, Okta can provide a unified picture with state-of-the-art monitoring and protection. Once you're in the cloud, companies are free to use whichever apps and services they desire, McKinnon said, which is why Okta partners with so many technology leaders.

Focus on Single Chip Names

In his No-Huddle Offense segment, Cramer said this is a stock picker's market. That means we can't talk about industries and sectors as a whole, we need to talk about individual stocks. In the case of the semiconductors, there are clearly winners and there are clearly losers.

The winners are companies like Qorvo  (QRVO) - Get Report, Qualcomm  (QCOM) - Get Report, Advanced Micro Devices  (AMD) - Get Report, Nvidia  (NVDA) - Get Report and Micron Technology  (MU) - Get Report. On the other end of the spectrum is Intel  (INTC) - Get Report, which has been struggling for years.

Cramer said it's important that you know what you own. Intel was once king of the hill, but not anymore.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:

HCA Healthcare  (HCA) - Get Report: "I think this one is going to $200."

Ford Motor  (F) - Get Report: "Ford has been doing nothing lately, but I'm still confident."

Plug Power  (PLUG) - Get Report: "I thought this one would run out of steam, but don't give up on hydrogen."

Party City  (PRTY) - Get Report: "No, we're not going to party with Party City. It's way too risky."

Marvell Technology  (MRVL) - Get Report: "This one has more to go. It's going higher."

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