When the economy's this good, you're unlikely to get a sustained decline, Jim Cramer told his Mad Money viewers Monday. That's why the market continues to do so well, even with interest rate hikes looming, a possible government shutdown, continued White House investigations and a terror attack in New York.
The fact is that with strong job growth, people are more confident, and when they're more confident, they buy homes, cars and devices of all kinds. Our economy is strong, Cramer said, and so is manufacturing and energy, where exports of natural gas continue to rise.
Then there's the promise of tax cuts, which Boeing (BA) told us last week would result in more dividends and buybacks as well as more investments in hiring and innovation. Aerospace is not the only sector on fire either. Cramer said the banks are getting a boost from rate hikes and deregulation, and even retail is recovering from its Amazon (AMZN) induced summer pullback.
In the end, a strong global economy trumps all.
This Bitcoin Euphoria
In his "No-Huddle Offense" segment, Cramer opined once again on the bitcoin euphoria, which rose to new heights Monday as legitimate futures began trading for the cryptocurrency.
Cramer said there are two things he doesn't like about bitcoin. First, he doesn't like any commodity that trades at different prices at different exchanges. "That's just not right," he said. Fortunately, the newly opened futures should allow for real price discovery going forward.
The second thing Cramer doesn't like about bitcoin is the currency's parabolic move. Cramer said not once in his career has he seen a parabolic move end well.
That said, bitcoin has made a lot of people a lot of money around the world, and in many failing countries, bitcoin is perhaps the only way to preserve and transfer wealth. In the end, Cramer said as long as the market is orderly, and people understand the risks, he's not going to stand in the way of anyone trying to make some mad money.
Over on Real Money, Cramer says bitcoin's Wild West days are numbered. Get more on his insights with a free trial subscription to Real Money.
Acadia: A One-Drug Wonder?
When Cramer was asked last week about Acadia Pharmaceuticals (ACAD) , he told the caller he needed to do some homework to learn what's been going on with this roller coaster of a stock. His conclusion? While Acadia might not be suitable for all investors, for those looking to speculate, the stock's recent 9% decline may be a buying opportunity in disguise.
Cramer explained that Acadia is designing drugs to treat central nervous system disorders but is currently a one-drug wonder with Nuplazid, which treats hallucinations caused by Parkinson's disease. Nuplazid is currently in testing to possibly treat other conditions though, and its end markets are potentially huge for a number of devastating diseases.
But as a one-drug company, Acadia lives and dies by its latest clinical test data, which was largely positive in 2016 but less so this year. Cramer said the stock has also been trading on chatter of a possible takeover with ebbs and flows.
While Acadia is a wild trader, Cramer said he likes the outlook for using Nuplazid to treat additional indications and also the company's prospects for the rest of its pipeline.
Cramer and the AAP team, in their monthly members call, talk about their core names for 2018, including Apple (AAPL) , DowDuPont (DWDP) , Facebook (FB) , Schlumberger (SLB) and more. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Re-fueling Auto Parts Retailers
Sometimes, the market overreacts to bad news, Cramer reminded viewers, as he took a fresh look at the auto parts retailers, which had a stellar run from 2013 through 2016, only to fall off a cliff earlier this year.
The auto parts makers were on fire in the years after the recession, as consumers held onto their cars longer, which meant more repairs and maintenance. But then in early 2017, the party came to an abrupt end as these retailers cited a mild winter and lagging tax returns as reasons for earnings shortfalls in February and again in May. Investors saw other reasons for the decline, however: Amazon.
The fears of Amazon may have been overblown, Cramer said, as all three retailers, AutoZone (AZO) , Advanced Auto Parts (AAP) and O'Reilly Automotive (ORA) have all posted stronger earnings and same-store sales. Shares responded, with Advanced Auto Parts up 28% and AutoZone up 31% from their lows.
All of these stocks remain inexpensive, Cramer said, with Advanced at 17 times earnings, O'Reilly at 19 times and AutoZone at just 14 times earnings.
Off the Tape: Topgolf
In his "Off The Tape" segment, Cramer sat down with Erik Anderson, chairman and CEO of the privately-held Topgolf, the interactive driving range where each ball is microchipped so it can be scored for accuracy and distance. Topgolf currently has 38 locations around the country.
Anderson explained that Topgolf's unique experience derives about 50% of sales from the golf game itself and the other 50% from food, beverages and other services. He said a growing number of children under 18 are using their facilities to learn how to play.
Topgolf is also taking the golf experience beyond just golf, with only 40% of customers being classified as "golfers" while the other 60% are largely non-golfers or not frequent golfers. Anderson added is Topgolf is an experience that younger customers, like millennials, love and there are plenty of posts and photos to prove it.
When asked if Topgolf could become a public company, Anderson said that it most certainly could, as they see at least 100 locations possible here in the U.S. and another 100 possible internationally.
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