Next week marks the start of the real earnings season, Jim Cramer told viewers of Mad Money on Friday. Then we will begin to see the true effects of inflation and economic reopening. Inflation is certainly a downside, Cramer said, but the reopening is so strong it will probably lead us.
Cramer’s game plan begins on Monday, when we win Coca-Cola (KO) – Get the report, United Airlines (UAL) – Get the report and IBM (IBM) – Get the report. Coca-Cola has no snack business, but it should do well while restaurants reopen. United will win as the journey resumes. As for IBM, it is still too early to know if the business will return.
Then, on Tuesday, Cramer went up to Abbott Laboratories (ABT) – Get the report and Johnson & Johnson (JNJ) – Get the report, who he said was unjustly punished. Procter & Gamble (p) – Get the report faces harsh comparisons with rising inflation. But Netflix (NFLX) – Get the report should sincerely exceed expectations of what Cramer called the funniest conference call of the season.
Wednesday brings earnings from Verizon (VZ) – Get the report, but Cramer preferred T-Mobile (TMUS) – Get the report. It has positive things to say about Chipotle Mexican Grill (CMG) – Get the report and Lam Research (LRCX) – Get the report.
Then on Thursday, we’ll hear from Cramer Union Pacific favorites (UNP) – Get the report, Dow Chemical (DOW) – Get the report, Danaher (Mr.) – Get the report, Nucor (naked) – Get the report and Boston Beer (Sat.) – Get the report. The only negative of that day, Intel (INTC) – Get the report, which Cramer said should be bought only on weakness.
Finally, on Friday, the week ends with more bullish news from Honeywell (SHE) – Get the report and American Express (AXP) – Get the report, along with a day as an analyst at Bristol-Myers Squibb (BMY) – Get the report, all of this should be fantastic.
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Executive decision: Metromile
In his first “Executive Decision” segment, Cramer spoke with Dan Preston, CEO of Metromile MILE, the digital insurance provider whose customers pay their car insurance per mile instead of a standard flat rate.
Preston told Metromile that insurance is individually tailored, and customers with low mileage can reduce up to 47% of traditional fixed fares.
Traditional insurance is a commodity, Preston added, which is why insurance companies spend billions to keep their name in mind. At Metromile, most of their business comes from referrals, which dramatically reduces their costs. The product experience speaks for itself.
Executive decision: QuantumScape
For the second segment of “Executive Decision”, Cramer also spoke with Jagdeep Singh, President and CEO of QuantumScape (QS) – Get the report, the manufacturer of solid-state batteries that was set on fire by a research firm, Scorpion Capital, which characterized the company as a “pump and discharge” scam. QuantumScape immediately responded to Scorpio’s allegations, responding extensively to all of their concerns.
Singh said QuantumScape has always been very transparent about what they have and the work that remains to be done. He said that although they had solved some of the primary problems with solid state batteries so far, they had only been able to produce single-layer and four-layer cells. They have to keep working to produce cells with dozens of layers.
Singh quoted Volkswagen (VLKAY) the recent $ 100 million investment as proof that his company is real. He said the investment with VW forced their cells to go through certain stages and they recently sent cells to Germany who went through these stages.
When asked about his thoughts on Scorpio Capital, Singh politely noted that short sellers invest in high value stocks and try to reduce them, so it’s no surprise that they’ve become a target. He noted that none of their 188-page report was original research and that most of it was “simply absurd.”
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Off the Tape: Zebra
In the “Off the Charts” segment, Cramer checked in with his colleague Keith Melnick over the chart of Zebra Technologies, an insurance comparison service.
Melnick, who came from the Kayak Travel Comparison Service, said there are a lot of similarities between the two industries. He said both are fragmented, complicated and opaque in terms of the price of their services.
Before The Zebra, people were forced to waste time buying multiple operator websites or buying on lead generation websites that offer comparisons from just a handful of suppliers. Melnick said The Zebra took a long time to resolve the issue, and his company now has relationships with hundreds of carriers across the country.
China-US tensions
In his “No Huddle Offense” segment, Cramer commented on the deterioration of US-China relations. He said when President Biden took office, everyone, including him, expected relations to cool and diplomacy to prevail. But so far, Biden has not resumed any tough Trump stance on China.
The stalemate remains Taiwan, which has enjoyed autonomy but not full independence from China. In the last few months, tensions over Taiwan have risen as two superpowers fight for relevance and domination.
This is a worrying trend, Cramer concluded, a pointless one.
Lightning round
Here’s what Jim Cramer had to say about some of the actions the callers offered during the “Crazy Lightning Round” on Friday night:
Lithia Motors (LAD) – Get the report: “This is a good stock of smoking. I would buy it right here.”
World Wrestling Entertainment (WWE) – Get the report: “This is a very well run company. I think you are in good hands.”
Innovative industrial properties (IIPR) – Get the report: “I am a great believer in it.”
Fiverr International (FVRR) – Get the report: “I’m a giant believer in the company, but the stock is quite expensive. I’ll bless it with Wix.com (WIX) – Get the report. “
upstart (UPST) – Get the report: “This is very short-circuited. People are trying to tear it down all the time. I think it’s a good situation.”
United Natural Foods (UNFI) – Get the report: “This stock is moving monster. I would wait for it to cool.”
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At the time of publication, Cramer’s Action Alerts PLUS had a position in HON, ABT.