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Last week, Jim Cramer held his annual scholarship project, and the host of "Mad Money" is now helping investors analyze the market's "buy-sell" to find great deals.
"It's a real fantasy football gibberish that involves trying to close deals, unsigned players from other teams that have turned out to be interesting prospects or who have gone astray and who may not have been, "Cramer said Wednesday.
Besides Okta, Service Now and Salesforce.com, which he also chose last week, here are the new companies that Cramer thinks investors should add to their portfolio after week 1:
Starbucks
Starbucks coffee giant is down more than 5% since Thursday, closing at 90.98 on Wednesday. President and Chief Executive Officer Kevin Johnson said next year's financial results are expected to grow at a slower pace than expected due to non-recurring tax benefits that boosted the results of 2019 and the new survey of Security and Exchange Commission. its accounting practices.
But Cramer is not worried about any of these developments, saying Johnson's remarks matter little because "the company's operating profit growth model is intact".
The SEC's question was "nothing burger," Cramer said.
"There were 200 other companies that were reported.It was a routine accounting survey in an industry.Only Starbucks made the headlines," said Cramer.
All in all, this makes Starbucks a good snag of the waiver thread, said Cramer.
VM Ware
Shares in the VMWare software company, which closed at 154.43 on Wednesday, are down nearly 25% since its 2019 high (205.52 on May 16).
But Cramer said he had regained the confidence of the Palo Alto-based Californian company, not least because the director of operations, Sanjay Poonen, had told "Mad Money" on Tuesday how his recent acquisitions could benefit him. .
VMWare, a cloud-based virtualization company, has acquired Carbon Black and Pivotal, which specializes in cybersecurity, and offers products to help companies build and install their software on different server infrastructures. Acquisitions were valued at $ 4.8 billion.
"I was skeptical considering that Pivotal seemed like a heavy blow to VMWare's parent company, Dell, but Poonen changed his mind," Cramer said. "I am also confident that the acquisition of Black Black will have adverse consequences on the relationship between Dell and Crowdstrike, so it is not surprising that VMWare has earned more than just money today. hui. "
Splunk
Splunk's CEO, Doug Merritt, appeared in "Mad Money" last week and after thinking about what he had heard, Cramer said he saw a strong investment opportunity.
"I believe we are getting a chance to buy this one at an incredible price," Cramer said. "Spunk is a leading data analytics tool that helps customers leverage real data from machine data, and in a world where Salesforce.com is ready to buy Tableau Software, if that solution does not move, Spunk could make a lot of sense an acquisition target, "said Cramer.
Splunk, which focuses mainly on massive data analysis, saw its stock fall by almost 20% from its peak of 2019. It stands at 113.89 after Wednesday's close, down 140, 73 on July 26th.
"Splunk is real and this stock market is acting like it's a fake," added Cramer.
Potential choices
Cramer proposed two other companies that would make sense as possible choices: Shopify and Chipotle.
Cramer praised Shopify for its recent acquisition of the 6 million warehouse automation start-up company for $ 450 million. Shopify should soon rank second behind Amazon for US e-commerce.
"But the stock is in a downtrend – it has now sold 70 points in a row – and who knows when it will get to the bottom, maybe it happened today," he said. Cramer, pointing out that his title had won 10 dollars Wednesday.
As for Chipotle, Cramer said it is the S & P 500's best-performing stock, but it is starting to hit a wall due to a stock market rotation.
"But there are none," said Cramer, adding that Chipotle had also been involved in the same SEC investigation as Starbucks.
In fact, business seems to be accelerating, Cramer said.
"When you have the chance to buy the best of the best down nearly 10%, it's like you're hiding a wide receiver for a week off," Cramer said.
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