Cramer’s Mad Money Recap 22/11: Morgan Stanley, Centene, J&J
It’s time to circle the charts around great companies with weak stocks, Jim Cramer told his Mad Money viewers on Monday. This is because money managers are rotating out of their technology stocks with big gains and back to the weaker S&P 500 names.
There is no doubt that it makes sense to buy technology stocks right now. The technology is immune to inflation and COVID, and it has little or no supply chain problems. But in the end, technology goes too far, too fast, and it does everything that is not technically much cheaper.
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That’s what happened on Monday, when money managers began to lock in their technology gains and circle back to other sectors, where earnings are just as good, but stocks are much cheaper.
Cramer offered four such shares he wanted to buy. He said that all these companies reported fantastic earnings, but that they have since seen their shares fall through no fault of their own.
Morgan Stanley (MS) – Get report from Morgan Stanley (MS). is still a great finance company, but the shares are now traded for less than 12 times earnings. Then there is the health plan provider Centene (CNC) – Get Centene Corporation Report, which offers growth and a buyback program. Shares in Centene are now traded for only 14 times earnings.
It was only a week ago that Johnson & Johnson (JNJ) – Get the report from Johnson & Johnson (JNJ). announced that it was split in two, which gave investors a great pharmaceutical company that will no longer be burdened by a timber department for consumer products. Nevertheless, after a rapid increase, the shares have fallen below where the announcement was made. Cramer called JNJ a theft with a yield of 2.7%.
Finally, it’s UPS (UPS) – Get United Parcel Service, Inc. Class B Report, the delivery giant with stocks traded for just 16 times earnings, despite entering what will be a lucrative holiday shipping season.
Executive decision: Traeger
In his first “Executive Decision” segment, Cramer spoke with Jeremy Andrus, CEO of backyard grill manufacturer Traeger (COOK) , which last reported strong sales, but weaker-than-expected earnings due to rising costs. The shares fell 28% during the last week and are over 50% lower than the highs in August.
Andrus said you just can not beat the taste of a wood-fired grill, and Traeger has made it easy to enjoy this tasty food in your own backyard. He explained that the Traeger grills make it easy to maintain a constant temperature so that chefs get consistent results every time.
When asked about their loss of income, Andrus put the blame directly on the transportation costs. He said a shipping container that was sold for $ 1,500 pre-pandemic now costs up to $ 30,000. Traeger has an average of $ 10,000 per container while trying to adjust the supply chain. The company works at a plant in Mexico and is also exploring production opportunities in the United States
Traeger also expands to new services and technology, including wireless meat probes that connect to the cloud and can alert you when your meat has reached the ideal temperature. It also tests meal delivery boxes that provide everything you need, from steaks to recipes and spices.
Executive decision: Nvidia
For its second “Executive Decision” segment, Cramer offered more of last week’s interview with Nvidia (NVDA) – Get NVIDIA Corporation report founder, president and CEO, Jensen Huang. Shares in Nvidia have risen 145% so far this year.
Huang said that Nvidia works hard in climate science, using accelerated computing, deep learning and artificial intelligence to build powerful simulations of how nature works in the real world. The latest technology can solve problems up to a million times faster than they could just a few years ago, and provides many more solutions to complex problems now within reach.
Nvidia has entered into a partnership with Lockheed Martin (LMT) – Get the report from Lockheed Martin Corporation (LMT). to help with forest fires. The companies are building real-world simulations of forests across the globe so that they can predict where forest fires are likely to start, how they will grow and, most importantly, how they can best be extinguished. These are not video games, Huang explained, but visual worlds that work just like the real world.
On the subject of autonomous vehicles, Cramer asked about the “moral dilemma” about how artificial intelligence would react in life-and-death situations. Huang responded by saying that AI is so much faster and has so much better perception than humans that it is unlikely that they will ever get into situations where they need to make decisions on life or death.
Executive decision: Zebra Technologies
For his latest “Executive Decision” segment, Cramer checked in Anders Gustafsson, CEO of Zebra Technologies (ZBRA) – Get Zebra Technologies (ZBRA) report, the enterprise automation company that saw 23% organic growth in the last quarter.
Gustafsson explained that Zebra helps its customers digitize and automate operations to increase efficiency and productivity. Zebra systems are distributed to retailers to facilitate omni-channel operations, seamlessly merging e-commerce stores.
Zebra is also a dominant player in the health care system, Gustafsson explained, and provides the tools and systems to help nurses reduce errors and provide better results for patients.
Zebra sees big trends across all verticals, Gustafsson said, and that is why it has expanded beyond just barcodes and scanners. The company now offers automation robots, machine vision systems and software-as-a-service solutions to connect them all.
Stay calm about Covid
In his “No Huddle Offense” segment, Cramer urged viewers to stop freaking out every time there is news of a new Covid outbreak anywhere in the world.
The pandemic is certainly not over, Cramer said, but last week’s sales due to Austria going back in lockdown due to increasing infections have no bearing on your investments.
There has been a lot of confusion surrounding Covid, and the FDA and other government officials have been dragging their feet when it comes to mandates and boosters and approvals for life-saving treatment options. But when it comes to your investments, we’re over the hump, Cramer said, and you should invest accordingly.
Lightning round
Here’s what Jim Cramer had to say about some of the stocks that callers offered during the Mad Money Lightning Round Monday night:
Ambarella (AMBA) – Get Ambarella, Inc. report: “The stock has had a big move. I think you should sell half here.”
Cano Health (CANO) : “This stock is down 30% and I think you should buy more.”
Modern (MRNA) – Get Modern, Inc. Report: “I would buy Eli Lilly (LLY) – Get the report from Eli Lilly and Company (LLY).. Moderna is just a team here. “
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