Markets have seen some signs of hope in the past 24 hours, Jim Cramer told his Mad Money viewers Thursday after another powerful rally. Markets now know that victory over coronavirus is possible, even if they don’t know exactly when it will happen.
Today could prove to be a turning point for stocks, said Cramer. The Senate has been able to pass a $ 2 trillion stimulus package, learning from the mistakes of 2008. The plan is great and it doesn’t just reward big business, it has something for everyone.
That’s why investors were able to shake off Thursday’s dire unemployment numbers, which indicated that 3.3 million people lost their jobs.
Victory will not come until we have beaten the virus, Cramer explained, and, at least in some cities, we are seeing that victory is possible with a total block.
Cramer said that even with Thursday’s rally, the markets are still oversold. But he said he wouldn’t hesitate to freeze some profits if investors are able to get to the bottom. There is still a long way to go, he said, but at least we can celebrate this day’s victories.
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Bullish call: Micron
The day’s most bullish story wasn’t the stimulus package, Cramer told viewers, it was Micron Technology’s earnings call (MU) – Get report. At the moment, the semiconductor manufacturer has told investors that the drop in demand in China has been offset by the increase in demand for data centers in the rest of the world. In addition, Micron noted that smartphone production in China has recovered and there is strong demand for PCs and notebooks in the United States and around the world as business and education move home.
Cramer said Micron’s strong news will have a chain effect on all cloud stocks. Continued to be bullish on Nvidia (NVDA) – Get advanced reports and micro devices (AMD) – Get report. He said that Facebook (FB) – Get Report is experiencing a withdrawal in advertising for small businesses and both on Amazon (AMZN) – Get reports and Alibaba (BABA) – Get Reports are also purchases.
Other stocks to buy including Microsoft (MSFT) – Get reports and Western Digital (WDC) – Get reports as well as Marvell Technology (MRVL) – Get reports and Qualcomm (QCOM) – Get reports for 5G wireless. Cramer has also been recommended Adobe Systems (ADBE) – Get report, CrowdStrike (CRWD) – Get reports and enlarge video communications (ZM) – Get report.
So while titles like Ford (F) – Get report, Macy’s (M) – Get reports and Cheesecake Factory (CAKE) – Get Report dominates headlines with bad news, Cramer said that cloud actions will not only transcend the COVID-19 pandemic, but could also benefit from it.
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Off the tape: Puritan Medical Products
In his “Off The Tape” segment, Cramer spoke, among other tests, of Timothy Templet, vice president of global sales of privately owned Puritan Medical Products, manufacturer of swab tests for COVID-19. Puritan currently employs 350 people.
Puritan has been a family-owned American company for over 100 years, said Templet. When asked why the United States does not have enough test kits available, Templet explained that there are several levels of restrictions on the types of swabs that can be used for testing, where swabs can be used for testing, and also in which part of the supply chain Puritan is allowed to ship its swabs.
The flood gates were opened today, however, said Templet, as the FDA has approved several types of swabs for use with the COVID-19 tests. He said the Puritan factory is currently operating 20 hours a day, seven days a week, but they are able to build new machines and double their production if the government provides guarantees for the purchase of a larger offer.
Asked if the supplies needed for the United States are directed to China, Italy, Spain and other parts of the world, Templet explained that Puritan sells swabs worldwide, but most of the supply problems stem from restrictions on where swabs can be sold. They simply can’t send pads directly to areas like New York that need them most.
Executive decision: Veeva Systems
For his “Executive Decision” segment, Cramer spoke with Peter Gassner, CEO of Veeva Systems (VeeV) – Get Report, the technology provider for the life sciences industry.
Gassner said he is very proud of the industry right now. He said Veeva’s customers have taken up the challenge of COVID-19 and are working to test, cure and prevent measures to combat the virus. As many healthcare facilities are now blocked, Veeva technologies are helping to connect doctors to pharmaceutical representatives virtually. Gassner said that while this time he interrupts clinical trials and normal operations, it is also a moment of innovation.
When asked about their business, Gassner said that after reaching $ 1 billion in revenue ahead of schedule, their goals have changed and are now reaching $ 3 billion in revenue by 2025. He said Veeva has a wide range of products to help move the industry forward.
Off the Tape: SoFi
For his second “Off The Tape” segment, Cramer is back with Anthony Noto, CEO of the privately owned SoFi, to find out how COVID-19 is affecting younger investors.
Noto explained that, firstly, SoFi is open to companies and allows its customers to manage every aspect of their financial life from their phones, regardless of where they are located. Customers can still monitor transactions, obtain loans, refinance and invest for their future.
If customers have lost their jobs or have been otherwise affected by COVID-19, Noto has invited them to contact SoFi. He said they can extend payments to 60 days, help get loans, and educate customers to take advantage of government programs.
Here is what Jim Cramer said about some of the actions that the callers offered during the Mad Money Lightning Round on Thursday evening:
Blackberry (BB) – Get the report: “I think you have to take that money and buy Marvell technology (MRVL) – Get report. ”
Intuitive Surgical (ISRG) – Get the report: “It’s an exceptional company and I love their products.”
Pfizer (PFE) – Get the report: “I like Pfizer and I like Merck (MRK) – Get report. ”
Inovio Pharmaceutical (NOT ME) – Get report: “This is speculative. If you can handle speculation, you can own it.”
Penn National Gaming (PENN) – Get the report: “I believe in this society but it won’t happen quickly.”
Simon Property Group (SPG) – Get the report: “They paid $ 33 billion in distributions but need to explain how they manage to get through this crisis.”
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At the time of publication, Cramer’s Action Alerts PLUS had a position in FB, AMZN, MSFT.