Staggering Moves: Cramer’s “ Mad Money ” Recap (Monday 8/24/20)

[ad_1]

Extreme valuations seem to be everywhere, Jim Cramer told Mad Money viewers on Monday, but in reality most stocks are still down for the year.

This is not the case with Apple (AAPL) – Get the report and Tesla (TSLA) – Get the report however, where all that could go well, worked well.

Cramer said Nasdaq’s gains have been staggering, but outside of FANG stocks the gains are less impressive. What makes stocks like Apple, an Action Alerts PLUS and Tesla stake so special? Cramer said it all comes down to execution.

Apple may seem expensive at 33 times earnings with a 10% growth rate, Cramer explained, but stocks are actually not that expensive when you consider Apple’s product-service model that gives it a huge boost. income potential. The trade war with China may be the company’s only risk at the moment and if Democrats win the White House, even that risk may be minimal.

As for Tesla, Cramer said the movement of 380% of the stock this year could be justified if you think of the company not as an auto company, but as a tech company that makes cars, trucks, equipment. solar energy and storage solutions. Investors shouldn’t chase Tesla shares higher, Cramer warned, but he can certainly justify the current valuation.

Cramer said that as long as CEOs Tim Cook and Elon Musk continue to run, Apple and Tesla shares will continue to climb, especially after their stock splits go into effect, which will make them still more attractive to individual investors.

Lily: Apple Split forces changes in the Dow Jones Industrial Average

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.

Don’t miss the best of Cramer, everyday, with quick and actionable strategies: StreetLightning. Today: why Cramer thinks Microsoft MSFT is a winner.

Executive decision: Fiserv

For his third segment “Executive Decision”, Cramer spoke with Frank Bisignano, President and CEO of Fiserv (FISV) – Get the report, the small business payment processor with 17% share for the year.

Bisignano said Fiserv is helping small businesses grow and its Clover payment platform saw 32% growth in July. He said transaction volumes on his e-commerce platform continued to increase and now that businesses were reopening transactions were increasing in stores again.

When asked about the prevalence of cash in our new retail environment, Bisignano said cash is already on the decline as a payment choice, but with the pandemic, ATM and in-store volumes decrease to double digits.

Fiserv has an omnichannel platform that helps businesses wherever they are, Bisignano explained. It continues to innovate both online and in-store with new advance ordering capabilities. And the company has strong partnerships with banks and software companies.

Executive decision: Palo Alto Networks

In his first “Executive Decision” segment, Cramer spoke with Nikesh Arora, President and CEO of Palo Alto Networks (PANW) – Get the report, the cybersecurity company which just posted a profit of nine cents a share with an 18% increase in sales and strong forecasts. Palo Alto shares fell 4.8% on the news after running ahead of the quarter.

Arora explained that Palo Alto has transformed from a one-product business to one that now offers three different platforms for its customers. He said investors were mistakenly focusing on decreasing the need for desktop firewalls. But they don’t see that when businesses migrate to the cloud and work from home, they’ll need integrated solutions for all three locations and that’s what Palo Alto now offers.

Palo Alto is also expanding into new services with the recently announced acquisition of Crypsis Group. Arora said Crypsis is an instant response company with 1,700 customers. He said businesses can’t wait for a breach to occur to take action, and Palo Alto customers can now use Crypsis whenever they feel something is wrong with their network.

Finally, Arora commented on the recent trend of working from home. He said that over the past few months we have proven that the social experiment works. That’s why Palo Alto doesn’t expect everyone to return to their offices, which will now be called Collaboration Centers. His company is working on new flexible benefits, learning and localization programs for its employees, giving them the choice to work where they want.

Executive decision: BioReference Labs

For his second segment “Executive Decision”, Cramer also spoke with Jon Cohen, Executive Chairman of BioReference Labs (BRLI) , to discuss the company’s partnership with the NFL after 77 COVID-19 tests falsely returned positive.

Cohen explained that BioReference Labs has performed more than 4.3 million COVID-19 tests so far. He said the situation with the NFL involved 77 tests that received a false positive. These players were immediately isolated and retested and their samples retested on a different platform, both of which confirmed they were all negative.

Cohen said there are places in the testing chain where false positives can occur, and they were able to quickly determine the contamination occurred in their sample preparation area, and measurements of mitigation were taken to eliminate these conditions.

When asked about the NFL test model, Cohen explained that the NFL has a different model than the NBA, which has everyone in one place. The NFL is testing in 30 cities, each with different levels of COVID-19. The model can work, he says, because we’ve proven that wearing masks and social distancing work.

Airbnb IPO

In his “No Huddle Offense” segment, Cramer commented on Airbnb’s upcoming IPO. He said investors who believe the pandemic has destroyed Airbnb need to think again. In reality, Airbnb is taking advantage of COVID-19.

Before the pandemic, staying at someone’s house seemed risky. But after the pandemic, staying in an expensive, crowded hotel seems like the riskiest decision, Cramer said. In fact, Airbnb may be the safest way to travel, and the company has the market for itself. This is why Cramer said Airbnb’s trajectory is higher.

Lightning round

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

Connect the power (PLUG) – Get the report: “I like the story but I prefer Linde (LINEN) – Get the report. “

Huntington Ingalls Industries (HII) – Get the report: “I’m not going to endorse this one. I love Raytheon Technologies (RTX) – Get the report or Lockheed Martin (LMT) – Get the report. “

Gilead Sciences (BROWN) – Get the report: “It’s the gang that can’t shoot straight. It has a 4% yield but I would forget it. Look at Regeneron Pharmaceuticals (RAIN) – Get the report. “

International flavors and fragrances (IFF) – Get the report: “I think this merger is going to be great. The title is a buy here. I also love Estee Lauder (HE) – Get the report. “

[ad_2]

Source link