Game Plan: Cramer’s “ Mad Money ” Recap (Friday 3/5/21)

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The “Goldilocks” jobs report gave investors the perfect opportunity to reduce their positions and raise cash, Jim Cramer told his Mad Money viewers on Friday. But don’t be fooled, he warned, interest rates and the bond market still control the direction of stock prices.

Cramer’s blueprint for next week’s stock keeps an eye on the bond market as any further rise in interest rates will derail stock market gains. Cramer’s other eye will be on Stitch Fix (SFIX) – Get the report Monday. He expects another better-than-expected quarter from this online retailer.

On Tuesday, Cramer will focus on another retailer, Dick’s Sporting Goods (DKS) – Get the report, which is set to come together with the return of team sports and youth after a year-long hiatus.

Then on Wednesday we will receive income from Campbell Soup (CPB) – Get the report and Oracle (ORCL) – Get the report. Cramer said packaged food doesn’t impress Wall Street these days, even with a 3.2% dividend yield, but Oracle is just the low-risk tech stock investors are looking for.

Thursday brings profits from two more retailers, JD.com (JD) – Get the report and Ulta Beauty (ULTA) – Get the report. Cramer is looking for strong results from both companies, especially long-standing Ulta.

Finally Friday, AT&T (T) – Get the report will hold an analyst day, but Cramer has said he will not be a buyer. The struggling telecommunications company may have an attractive dividend yield, but its stocks continue to fall and erase those gains.

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

Executive decision: Okta

In his first “Executive Decision” segment, Cramer spoke with Todd McKinnon, president and CEO of cybersecurity giant Okta (OKTA) – Get the report, with Eugenio Pace, CEO of Auth0. Earlier this week, Okta announced that it will acquire Auth0 in a deal worth $ 6.5 billion.

McKinnon said Okta ended the year strong, with subscription revenue up 43%, totaling more than $ 800 million for the year. The markets for cybersecurity and identity management are huge, he added, and there is still plenty of room to grow.

Pace noted that the world is run by software, and every business is becoming a software business. This means that there is a growing need for development tools that make life easier and faster for developers, which Auth0 provides.

When asked why Okta needed to acquire Auth0, McKinnon explained that the companies were complementary. He said the workforce identity market is worth $ 30 billion, but customer ID management, where Auth0 excels, adds another $ 25 billion.

You have to assume baddies are everywhere, McKinnon concluded, which is why the combination of Okta and Auth0 allows companies to authenticate every user, every machine, and now every customer, quickly and securely.

Executive Decision II: Trex

In his upcoming exclusive “Executive Decision” segment, Cramer spoke to Bryan Fairbanks, President and CEO of composite decking manufacturer Trex. (TREX) – Get the report. Trex shares have risen 63% in the past year as people across the country scramble to modernize their homes and backyards amid the pandemic.

Fairbanks said Trex’s main competitor remains wood, which accounts for 78% of all decks in America. There is plenty of room for all the players, he added, when asked about his rival Azek. (AZEK) .

Wood is not as environmentally friendly as you might think, Fairbanks explained. Pressure treated lumber involves a lot of chemicals and the product only lasts 10 to 15 years. At the end of its life, all of these chemicals end up in the soil.

Trex, by comparison, lasts a lifetime, and the company uses 400 million pounds of plastic each year that would otherwise end up in landfills.

Trex is now available in more than 6,700 locations across the country. The company caters to both contractors and DIY homeowners looking for top quality decking material.

Executive Decision III: Nutanix

In his upcoming “Executive Decision” segment, Cramer spoke with Rajiv Ramaswami, President and CEO of cloud software provider Nutanix (NTNX) – Get the report. Shares of Nutanix are down 25% from their highs earlier this year.

Ramaswami said Nutanix addresses the two main concerns of businesses today, digitization and remote workforce management. Virtual desktops and enterprise cloud platforms are perfect solutions for both of these needs.

Asked about investor concerns about the company’s revenue, Ramaswami explained that like many other companies, including Adobe Systems ADBE, Nutanix is moving from selling hardware devices to subscription software. As their renewal activities begin, the revenues will allow the company to resume growth.

Finally, when asked about the hot topic of security, Ramaswami noted that Nutanix is constantly incorporating new security features into its products. Some of their latest offerings can detect and stop ransomware attacks.

Sure Real money, Cramer focuses on the companies and CEOs he knows best. Get more of his information with a free trial subscription to Real Money.

No click crime

In his “No Huddle Offense” segment, Cramer said that in volatile markets like these, your worst enemy could be your fellow shareholders. Take Costco (COST) – Get the report, the retailer who just posted mixed results that included same-store sales growth of 15%. With shares $ 70 off their highs, Costco is a buy in Cramer’s book.

But for the home gamer who buys on margin or the hedge fund manager who needs to raise cash to cover buyouts, Costco isn’t a company with great fundamentals and a low stock price, it is. is simply a source of funds. These shareholders cannot be relied on for great profits, Cramer said, making investing much more difficult than before.

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