Where's the Bull?: Cramer's 'Mad Money' Recap (Thursday 10/8/20)

Jim Cramer says there's always a bull market somewhere, and in this market, there are a bunch of them that won't be hurt by the lack of additional government stimulus.
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Main Street needs a stimulus bill, but Wall Street will do just fine without one, Jim Cramer told his Mad Money viewers Thursday. Cramer reminded viewers that there's always a bull market somewhere and in this market, there are mini-bull markets almost everywhere.

The biggest bull market is in housing, Cramer said, where home builders like Toll Brothers  (TOL) - Get Report and Lennar  (LEN) - Get Report can't build homes fast enough to meet demand. That means everything that goes into a home, from tools by Stanley Black & Decker  (SWK) - Get Report to furniture from Herman Miller  (MLHR) - Get Report to everything sold at Home Depot  (HD) - Get Report is a buy. 

There is a bull market in home entertainment. Cramer recommended Best Buy  (BBY) - Get Report, Roku  (ROKU) - Get Report and Netflix  (NFLX) - Get Report. Zoom Video  (ZM) - Get Report and Salesforce.com  (CRM) - Get Report topped his list of stocks to buy in the remote working bull market.

Still other bull markets included restaurants, where the last men standing are likely to be Wendy's  (WEN) - Get Report, McDonald's  (MCD) - Get Report and Chipotle Mexican Grill  (CMG) - Get Report. Cramer was bullish on parts of apparel after Levi Strauss  (LEVI) - Get Report posted strong earnings. He also called out strength in used cars, packing , agriculture, chemicals and railroads like Norfolk Southern  (NSC) - Get Report and Union Pacific  (UNP) - Get Report.

None of these groups need a stimulus package to thrive, Cramer concluded. Unfortunately, that can't be said for the rest of our economy.

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Executive Decision: Domino's Pizza

In his first "Executive Decision" segment, Cramer spoke with Rich Allison, CEO of Domino's Pizza  (DPZ) - Get Report, the pizza chain that saw its shares plunge 6.9% after reporting a strong quarter with lighter-than-expected earnings. Shares of Domino's are up 37% for the year.

Allison said he was very pleased with Domino's 17.5% same-store sales growth, but admitted that it is more expensive to operate a restaurant in a COVID-19 world. He said personal protective equipment, additional cleaning measures and an increase in cheese prices all led to lower earnings.

Outside of the uptick in expenses, Allison painted a bullish picture for Domino's. He said in markets where they were allowed to be open, demand has been strong and new items, like their chicken taco and cheeseburger pizzas, have rocketed to the top of their sales charts. He said customers appreciate other innovations, like contactless delivery, made possible by their new pizza pedestal.

Domino's also continues to embrace technology. Allison noted that adding GPS locations for their drivers allows stores to run even more efficiently. Now store staff can walk deliveries right to their drivers as soon as they arrive, rather than having drivers park their cars and walk inside to pick up their orders.

Executive Decision: Marvell Technologies

For his second "Executive Decision" segment, Cramer spoke with Matt Murphy, president and CEO of Marvell Technology Group  (MRVL) - Get Report, the semiconductor maker that just completed its annual briefing with analysts.

Murphy said that Marvell has undergone a remarkable transformation over the past few years, evolving from a hard disk and storage provider into one that has a foothold in the three hottest areas of tech, 5G wireless, the cloud and automotive. Marvell sees a total market of $110 billion, he said, but currently only addresses $20 billion of that potential.

When it comes to automotive, Murphy said that Marvell works with 24 OEM partners, all of which appreciate his company's expertise in processors, storage and networking. He was also bullish about the coming 5G wireless revolution, which will improve network latency 20 times over current 4G technologies.

As for the cloud, Murphy said that the pandemic has drastically accelerated the digital transformation plans of just about everyone and the need for data center performance has never been greater.

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Can Fisker Run?

Back on Sept. 25, Cramer commented on Spartan Energy Acquisition  (SPAQ) - Get Report, a special purpose acquisition company that will soon be merging with Fisker Automotive. Cramer told viewers to avoid this highly speculative venture that won't actually be producing vehicles until 2022. However, after the company appointed Bill McDermott, formerly of ServiceNow  (NOW) - Get Report to its board of directors, Cramer decided to give Fisker a second look.

Cramer admitted that Fisker's CEO is indeed a visionary and designs great-looking cars. The company's first vehicle in 2011, the Karma, was significant, he said. But even if you buy into the bull thesis for the company, it's just way too early, and risky, to buy the stock.

Fisker plans to outsource its manufacturing, Cramer noted, the same process that led to battery fires and recalls of the original Karma. The company also plans to build 150,000 vehicles by 2024, its second year of manufacturing. This milestone took Tesla six years of manufacturing to achieve. Fisker also plans to have higher margins than Tesla, numbers that Cramer said simply don't add up.

Cramer said that Fisker does have a beautiful prototype with the Ocean, which already has 7,000 pre-orders, and unlike Nikola  (NKLA) - Get Report, that prototype actually runs. But even if you believe the best-case scenario, Fisker won't have any sales until the end of 2022. 

Outlook for Oil Stocks

In his No-Huddle Offense segment, Cramer said the oil stocks may be un-investable, but that doesn't mean they're un-tradable, especially as crude oil is poised to make another run over $40 a barrel.

The long-term outlook isn't bright for fossil fuels, Cramer said. The problem isn't demand, which is beginning to pick up, it's supply. Every time oil prices rise, oil producers turn on the spigot to take advantage. Once upon a time, OPEC was able to curb this behavior, but with the U.S. now among the world's largest oil producers, OPEC is irrelevant.

For those who must invest in oil, Cramer said he likes the safe dividend at Chevron  (CVX) - Get Report and the growth at Parsley Energy  (PE) - Get Report.

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:

Limelight Networks  (LLNW) - Get Report: "If you want that group, you want Akamai Technologies AKAM."

CRISPR Therapeutics  (CRSP) - Get Report: "These guys are the real deal. I say yes to CRISPR."

Virgin Galactic  (SPCE) : "I don't see anything in the short term that tells me that one is a winner."

Boeing  (BA) - Get Report: "I started buying Boeing for my charitable trust. I think now's the right time to buy."

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