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"Don't overstay your welcome and ignore a big shift," Jim Cramer told his "Mad Money" viewers Thursday evening. When a situation changes, investors need to be nimble and willing to change their minds if they want to make money.
American Express (AXP - Get Report) is a great example. The stock soared 9% Thursday after the company surprised investors with better-than-expected earnings. No longer is the company cutting guidance and showing slower growth - something that took the stock down from the mid-$90s to the low-$60s over the past few years.
The situation is now improving and that "solid quarter" shows that too many short-sellers overstayed their welcome, Cramer said. The stock is a buy, even after Thursday's big rally.
Take Netflix (NFLX - Get Report) as another example. After two quarters of disappointing subscriber growth, the company stunned the Street with a very strong earnings report a few days ago. As a result, the stock has been on a three-day tear, rallying more than 23%.
Cramer said he had been wavering on Netflix too, until he saw an insider purchase a large amount of stock in the summer. That, coupled with the company's impressive content and management's reminder not to think short-term, made it so the negative sentiment could change at any moment.
Here's the bottom line: When the situation changes, investors have to be willing to change too, otherwise they could lose some big-time bucks, Cramer said.
Smart-phone makers are now producing hardware that better suits the content that currently makes up the "internet ecosystem," he said.
What's that exactly? Griffen referred to it as services such as those provided by Netflix (NFLX - Get Report) , Facebook (FB - Get Report) and even companies like Domino's Pizza (DPZ - Get Report) . The mobile-internet ecosystem is changing the way people consume content and it alters the way companies build their phones.
It's not a short-term trend, either. This is a multi-year, secular theme, Griffin said, one that is improving every day and demanding more efficiency and power than ever before. The demand for performance is high.
Pivoting to Samsung (SSNLF) , Griffin said his company doesn't expect any financial repercussions due to the issues identified with the Galaxy Note 7 device. However, it does highlight the demand for excellence and the complexity that comes with these devices, he reasoned.
As for M&A, Griffin said Skyworks has made a series of smaller acquisitions that bolster the company's product offerings, and it will always be open to bigger purchases if it's a good opportunity.
When it comes to growth markets, he explained that China is "growing up," but that it's still early innings for 4G connectivity. India, Latin America and the Middle East still present plenty of growth opportunities though, he said, adding that some 2 billion people in the world have no connectivity.
Here's the bottom line: We're far from a peak in the market with that many people not connected, Cramer said. He's liked Skyworks for a long time and the stock's done well this year. Let's see if its momentum can continue when it reports earnings in a few weeks.
It's Not About How You Vote, It's About How You Invest
On Wednesday's "Mad Money" episode, Cramer looked at how a Democratic landslide could harm industries like banking and health care, but by Thursday, another situation had developed: Republican nominee Donald Trump said he would consider challenging the outcome if he loses in a closely-contested election.
"That's a nightmare for investors," Cramer said. The longer the election potentially drags out, the more uncertainty that's cast over the market. With less certainty comes lower valuations and that will be a big negative for stocks.
For example, shares of Walgreens (WBA - Get Report) rallied Thursday on what Cramer said wasn't the company's earnings results, but on comments from management that the deal to acquire Rite Aid (RAD - Get Report) could get done.
Under a Clinton Administration, M&A could take a big hit, with regulators clamping down on antitrust concerns and denying deals like the one between Walgreens and Rite Aid. Under a Trump Administration though, the deal would likely "sail" to completion, as Trump is seen as less regulatory when it comes to business, Cramer explained.
How about Kinder Morgan (KMI - Get Report) ? The pipeline giant would actually benefit under a Clinton presidency, because it would likely be much harder to build new pipeline infrastructure. Given that Kinder has some of the best networks in the country, it would surely benefit from less competition. Likewise, Deutsche Bank (DB - Get Report) would likely benefit from a Trump presidency, as he would be less likely to play hardball against the company, Cramer said.
Here's the bottom line: Government has a much bigger impact on business than some investors realize. It's important for investors to recognize these so they can react in the stock market. The longer the election results are dragged out, the more the stock market may languish, Cramer said.
Executive Decision, Cont'd.
One of the big concerns from investors is that Lam Research is hitting a peak. Anstice argued that investors should stop focusing on short-term tops and bottoms and instead focus on the secular theme in semiconductors - much like Griffen, the CEO of Skyworks Solutions, said earlier in the show.
The outlook for next year is strong and the company's track record is impressive, Anstice said. There's "tremendous appetite" in the technology economy and demand for semiconductors continue to grow. It's no longer just smartphones; it's self-driving cars, traffic solutions, medical uses, climate control and a number of different applications.
As for the company's failed deal with KLA-Tencor (KLAC - Get Report) due to the regulators, Anstice called it "very disappointing." However, on Nov. 18, the company is scheduled to hold an investor meeting and will update with new financial models, cash distribution plans and growth strategies.
There's just too much going on in the semiconductor space not to be excited, he said.
Here's the bottom line: Cramer's heard enough of the peak talk. Lam Research is a high quality company that just reported good earnings results. It's also got strong secular growth and this pullback could be the start of a good buying opportunity.
He was bearish on Carlyle Group (CG - Get Report) , Scorpio Tankers (STNG - Get Report) , JetBlue Airways (JBLU - Get Report) , Cypress Semiconductor (CY - Get Report) , Ophthotech (OPHT) , Ariad Pharmaceuticals (ARIA) and Ascena Retail Group (ASNA - Get Report) .
And Another Executive Decision
Herman Miller is the maker of high-end chairs and one of its most iconic office chairs just got a big makeover. It took two years of research and design to make, and Thursday the company began taking orders.
Walker was straightforward about the most recent earnings results, after the company missed on earnings per share and revenue expectations. He said it was unlikely that customers were waiting for the new chair to come out, and thereby delaying orders in the previous quarter. He explained that the company didn't tell many people about the new chair, except some of its biggest clients. Regardless, business for Herman Miller picked up in August, Walker said.
Talking about the company's acquisition of Design Within Reach, Walker said Herman Miller wanted to more deeply connect with its end users, not just the companies placing big orders. Management wanted to build a consumer-focused business, too, and it helped that many offices were taking on more of a living-element design.
The bottom line: This is an amazing company with a terrific product, Cramer said. The stock pays a nice dividend and the recent pullback from $32 to sub-$28 could be a good buying opportunity.
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