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Investors who see the world as a "half-full glass" continue to climb the stock markets, said Jim Cramer. Mad Mad viewers Tuesday. And unless there is an impressive amount of negative news, nothing seems to stop them. Cramer said Tuesday was more like a drink that is totally full.
Even the latest salvo of tariffs and retaliation was not enough to contain stocks, Cramer said. This is because investors feared tariffs of 25%, so that the 10% tariffs seem to be a victory. Markets were also supported by the Chinese stock market, which managed to recover.
But the main reason why Cramer said the markets were able to recover was the steady stream of new capital going into index funds and IRAs. This trend has forced many sellers to lose a lot, even on the most obvious bets. The stocks just want to go higher.
Cramer said that there were also a number of positive research notes, including on Oracle (ORCL), that made the results mediocre attractive.
Finally, Cramer said FANG, its acronym for Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL), excluding Facebook, were all on the rise. Similarly, you own Apple Stock (AAPL), a share held by Cramer for its charitable trust, Action Alerts PLUS. Apple should be heading down, but so far, it has avoided being at the heart of the tariff storm.
Cramer and the PAA team are talking about Alphabet and Amazon about new automotive-related services. Find out what they say to their investment club members and engage in conversation with a free trial subscription at Action Alerts PLUS.
Executive decision: Tilray
For his "Executive Decision" segment, Cramer met with Brendan Kennedy, president and CEO of Tilray (TLRY), the Canadian medical marijuana provider that has seen its share increase by 28% today. products for research purposes.
Kennedy explained that Tilray is already allowed to import into other countries and that he is now delighted to be able to test his products in the United States. He said the medical cannabis market is $ 100 billion worldwide, because it can be used for many purposes, from pain management to sleep aids and more. Cannabis is an excellent alternative to opioids, he added.
In terms of recreational uses, Kennedy said every liquor company will explore cannabis products at some point, because the global opportunity is simply huge.
Kennedy admitted that Tilray needed additional capital to finance his expansion plans. He said that they continue to evaluate new sources of capital but have not made any decisions yet.
Buying Opportunities: Splunk
When Wall Street underestimates a business, use that weakness to buy, buy, buy, said Cramer to viewers. As an example, the company Splunk Data Analysis (SPLK), which saw its shares rise from $ 128 two weeks ago to only $ 116 today.
Cramer explained that the transition to the cloud remains the story of the hottest growth, just like Adobe Systems (ADBE) and Autodesk (ADSK) before it, making the sometimes fickle transition of unique and high licensing fees . to smaller recurring revenues.
This transition tends to discourage Wall Street analysts, who mistakenly associate declining revenues with slower growth. This model played with Adobe and Autodesk. In the end, both companies experienced explosive growth.
Splunk is one of the few companies to be able to tap the treasures of unstructured data generated by today's businesses, making it an indispensable tool for detecting fraud, cybersecurity and other applications. Cramer said the analysts are simply looking at the wrong measures for Splunk, which is why the recent weakness is a gift for those looking to position themselves in the title.
As for the real money, Cramer offers more analysis on trade, tariffs and China. Get more information through a free trial subscription to Real Money.
Executive decision: Square
In his second Executive Decision segment, Cramer met Sarah Friar, CFO of Square (SQ), the financial services provider with shares up 150% over the year.
Friar said Square is growing at 60% a year and has seen accelerated growth in the last five quarters. The company is working hard to develop products to ensure that they are always there for traders to make a sale, whether online, in person, person to person, and beyond. The company is also developing internationally and is present in Canada and the United Kingdom.
Friar added that Square aims to produce elegant, complete and fully integrated products for a seamless experience. For example, the company's payroll system operates autonomously, from scorecards to paychecks. Meanwhile, Square Caviar's catering platform can facilitate the ordering of food products, whether customers are online, online, looking for a pick-up or looking for food. ;a delivery.
Square also has a small business loan program that has made it possible to make 500,000 loans totaling $ 3 billion, with a default rate of only 4%. Brother said that the low rate comes from the data available to their customers by accepting payments and knowing their cash flow.
No-Huddle Offense
In his "No-Huddle Offense" segment, Cramer answered the question "Who has more to lose in the trade war?" In a word, China.
Cramer said that it was simple arithmetic. China exports us three times more than us. In addition, our economy is consumer-driven, while theirs is based on manufacturing. We can do things in other countries, but China can not sell as many products to other countries.
China can not hurt us without hurting itself.
Lightning round
In the Lightning Round, Cramer was optimistic for Biogen Idec (BIIB), Regeneron Pharmaceuticals (REGN), Amgen (AMGN), Delta Air Lines (DAL), United Continental (UAL), Southwest Airlines (LUV), Nike (NKE), VF Corp (VFC) and Delek Holdings (DK).
Cramer was down on Liberty Oilfield Services (LBRT), Spirit Airlines (SAVE), Chefs Warehouse (CHEF), Under Armor (UAA), GameStop (GME) and Caesars Entertainment (CZR).
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