So many investors don't believe in this bull market, Jim Cramer told his Mad Money viewers Monday, and he's got the top 10 reasons why.
First, investors feel the bull market has run too long. But Cramer said that bulls don't die of old age, and this market has had three healthy corrections over the past eight years.
Second, investor fret that it's the year 2000 all over again. But this time is different and there are far fewer bankruptcies, Cramer noted.
The third worry is the Federal Reserve, but Cramer said that this is one of the rare times when the market is being helped by interest rate increases. Washington also makes the list of worries, but gridlock has always been a friend of the stock market.
Next, investors fear that stocks are to expensive, but that's not true given the tough time value stocks have been seeing. As for the fear of tech stocks, Cramer said those are only because the bulls are in enterprise tech, which is less understood by average investors.
Speaking of misunderstood, number seven on Cramer's list was healthcare stocks, which are perplexing everyone as healthcare costs continue to barrel out of control. Investors are also shy about energy stocks, after the last oil boon created countless energy companies that no one understands.
Finally, Cramer said the stocks that investors do understand -- retail -- are the ones getting hit the hardest. And the pundits that are supposed to soothe our fears? Cramer said in the age of YouTube, no fund manager can afford to be bullish, or their words will come back to haunt them.
Should any of these fears keep investors out of the market? Cramer said no, but we need to at least acknowledge that they exist.
Executive Decision: Oncor Electric
For his "Executive Decision" segment, Cramer spoke with Bob Shepard, CEO of Oncor Electric Delivery, the privately held electric utility that recently failed to merge with NextEra Energy (NEE) , but now has a bid from Berkshire Hathaway (BRK.B) for $9 billion in cash and possibly others in the wings.
Shepard explained that Oncor was taken private in an LBO in 2007 and since then has had a terrific business in a great service area, Texas. He said deregulation efforts in the state have proven to be very effective and customers are paying 25% less for electricity than they did 15 years ago.
When asked about the Berkshire deal, Shepard said that Warren Buffett is doing the deal right, accepting the conditions of the Texas regulators and vowing to get a deal done quickly.
Ad for why the company never came public, despite it's great growth profile, Shepard said that unfortunately, his company's debt profile is very complex and would not lend itself to a public offering at the current time.
Yum vs. Yum China
It's been a full eight months since Yum Brands (YUM) spun off its Yum China (YUMC) division. If you'd owned the original company, you'd be up 27% so far. But is there still room to run? And which stock is the one worth owning?
Before the split, Yum China was forecast to be the real growth engine, with 15% earnings per share growth and the possibility to triple its store count. The original Yum was expected to deliver just 13% growth, but with a 2% dividend.
In reality, Yum China last posted just a penny-a-share earnings beat with a 3% rise in same store sales, largely inline with expectations, as Pizza Hut continued lagging. Cramer said these results weren't bad, but they weren't perfect either.
But in the rest of the globe, Yum Brands continues to see positive changes, with an 8% pop in same store sales at Taco Bell and 2% at KFC. While Pizza Hut again lags its peers, Yum management has a plan to reinvigorate the brand.
With both stocks trading at 23 times earnings, Cramer said it's clear that Yum China is overvalued, while Yum Brands is still the stock worth owning.
Executive Decision: Novocure
In his second "Executive Decision" segment, Cramer also sat down with Bill Doyle, executive chairman of Novocure (NVCR) , the company developing tumor treating fields, a gentle, non-invasive way to treat cancer tumors. Shares of Novocure are up an impressive 130% so far this year.
Doyle said Novocure is offers the only cancer treatment that has no toxicity to the patient. Patients simply carry a 2.7 pound device with them that generates electrical fields. Those fields, in turn, disrupt tumor cells as they attempt to divide and ultimately shrink the tumor.
Novocure has been hard at work expanding its sales team, introducing a smaller device and also releasing key five-year data that has been very well received by physicians. "There's still a long way to go," Doyle admitted, but it's clear that patients are improving with Novocure and his company has seen nine straight quarters of patient growth.
When asked about the cost, Doyle explained that the treatment is $21,000 per month, but is covered by all private insurance. Those on Medicare can also receive the treatment, even though it is not yet covered by Medicare.
Novocure is currently in Phase III trials with other solid tumor types of cancer.Lightning Round
In his "No Huddle Offense" segment, Cramer told viewer to stop what they're doing and go buy something for Amazon Prime Day, Amazon's (AMZN) made up holiday that has sent analysts scrambling.
Just today, reports of an Amazon rival to Best Buy's (BBY) Geek Squad sent the retailer's shares plunging 6%. That comes on the heels of a Costco (COST) downgrade and Macy's (M) shares hitting new lows.
Not all retailers are created equal, Cramer reminded viewers, and not all of them will fall at the hands of Amazon. Shares of Costco still trade at 23 times earnings, so more downgrades are likely. But shares of Macy's trade at just eight times earnings, with a 4.2% yield. Is there value in Macy's? Perhaps.
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