10 Tipping Points: Cramer’s “ Mad Money ” Recap (Tuesday 11/24/20)

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How can the Dow Jones Industrial Average reach all-time highs as hospitals teem with COVID patients ?, Jim Cramer asked his Mad Money viewers on Tuesday. Well, the markets’ skyrocketing to new highs stems from 10 “tipping points” that have boosted its momentum, he said.

The first tipping point is certainty about the presidential election. Now that the transition has begun, investors are breathing a sigh of relief. Next are the upcoming vaccines, which help investors see the light at the end of the COVID tunnel. In the same vein, there is the tipping point 3, the hope of an imminent reopening of the economy.

The theft to the suburbs was Cramer’s next market driver, a factor that is boosting all things housing. Next is the boom in younger investors called Robinhood who are entering the market for the first time. These investors are contributing to the next tipping point, with buyers overwhelming sellers as new secondary equity offerings hit the market.

Cramer went on to say that the search for next You’re here (TSLA) – Get the report propels a number of stockpiles of alternative fuels, while the environmental movement is also alive and well.

Finally, Cramer said investors welcome the end of the trade war, or at least a de-escalation, as well as a transition to President-elect Joe Biden, who is presumed to be much more market-friendly.

Cramer and the AAP team are looking at everything from profits and tariffs to the Federal Reserve. Find out what they are saying to their investment club members and join the conversation with a free trial subscription to Action Alerts Plus.

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Executive decision: HP

In his first “Executive Decision” segment, Cramer spoke to Enrique Lores, President and CEO of HP (HPQ) – Get the report, the printer and computer maker who just released a 10 cents per share beat that sent shares up 5.7% after office hours.

Lores said HP had record shipments for PCs and printers in the quarter and that its cash flow was strong, which allowed it to reward shareholders with dividends and buybacks. The company announced a 10% increase in its dividend for 2021 and repurchased 9% of its shares through its share buyback program.

When asked how they were able to deliver such strong results in the midst of a pandemic, Lores explained that HP is a resilient company. So, while the company’s business activities slowed down dramatically during the pandemic, its mainstream businesses flourished as people set up home offices with new computers and printers. Lores said he expects their business activities to return as people start to return to the office.

Finally, Lores noted that their 3D printing market continues to grow, representing a market potential of $ 500 billion.

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Executive decision: Nikola

For its second “Executive Decision” segment, Cramer spoke to Mark Russell, the new CEO of truck manufacturer Nikola (NKLA) – Get the report.

Russell assured investors that despite reports to the contrary, Nikola has “several working trucks”, and their prototyping and testing continues.

Asked about the cost of hydrogen as a fuel source, Russell said the key parameter for green hydrogen is the price of green electricity. As the price of renewable energy drops, so does the cost of the hydrogen that powers its fuel cell vehicles.

Regarding the company’s business outlook, Russell has not commented on Nikola’s partnership with General Motors. (GM) – Get the report, which has not been finalized since fraud allegations surfaced. He also did not comment on the prospects of gas station partners.

Finally, Cramer asked about stock lock-ups that expire next week. Russell was confident that as the company reaches its milestones, its major shareholders will continue to own their shares.

Cramer does his homework

In his “Homework” segment, Cramer followed a few actions that had baffled him on previous shows.

He said that Textainer Group Holdings (TGH) – Get the report, the intermodal container leasing company, has an interesting history. As global trade picks up after the pandemic and trade wars, the company’s containers are expected to be in high demand.

Cramer said he would wait for the stock to pull back after it rose from $ 5 to over $ 19 a share, but the company has good long-term prospects.

Cramer then followed Niu Technologies (NIU) – Get the report, the maker of electric bikes and scooters that has also been hot in recent months. With shares up 72% for the year, Cramer said he just couldn’t recommend the stock given that Nui missed earnings by a mile.

The oil is finished

In his No-Huddle Offense segment, Cramer said the era of frantic oil production is over, and that’s a good thing.

Despite his love for fossil fuels, President Trump has given too many good things to the oil industry, Cramer explained, and oversupply has crushed crude oil prices.

But with Biden taking over the White House, drilling and emissions are expected to be cut, which will be good news for Chevron (CVX) – Get the report and Pioneer Natural Resources (PXD) – Get the report. Cramer was also bullish on General Electric (GIVE) – Get the report, manufacturers of natural gas turbines and pipeline companies, as new pipelines are unlikely to be licensed in the next four years.

Lightning round

Here’s what Cramer had to say about some of the actions that callers offered during the Mad Money Lightning Round on Tuesday night:

DexCom (DXCM) – Get the report: “There is competition from Medtronic (MDT) – Get the report and people have to be more careful. “

CBAK energy technology (CBAT) – Get the report: “The stock has had a monster move. I can’t recommend them here.”

Centene (CNC) – Get the report: “You have to hold this one for the long haul.”

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