Game plan: Recap of Cramer’s “Crazy Money” (Friday, 05.03.2021)

The Goldilocks employment report provided investors with the perfect opportunity to ease their positions and raise cash, Jim Cramer told viewers of Mad Money on Friday. But don’t be fooled, he warned, interest rates and the bond market are still in control of where stock prices will go.

Cramer’s game plan for next week’s action is keeping an eye on the bond market, as any further rise in interest rates will derail any gains on the stock market. Cramer’s other eye will be on Stitch Fix (SFIX) – Get the report months. He expects another better quarter than he expected from this online retailer.

On Tuesday, Cramer will focus on another retailer, Dick’s Sporting Goods (DKS) – Get the report, which is ready to manifest as team and youth sports return after a one-year hiatus.

Then on Wednesday we’ll win at Campbell Soup (CPB) – Get the report and Oracle (ORCL) – Get the report. Cramer said packaged food is failing to impress Wall Street these days, even with a dividend yield of 3.2%, but Oracle is just the stock of low-risk technology investors are looking for.

On Thursday, it brings profits from two more retailers, JD.com (JD) – Get the report and Ulta Beauty (ultra) – Get the report. Cramer is looking for strong results from both companies, especially the long-term favor of Ulta.

Finally Friday, AT&T (T) – Get the report will hold an analyst day, but Cramer said he will not be a buyer. Troubled telecommunications could have an attractive dividend yield, but its shares continue to decline and erase those gains.

Cramer and the AAP team look at everything from earnings and rates to the Federal Reserve. Find out what they tell their investment club members and join the conversation with a free trial subscription to Action Alerts Plus.

Executive decision: Okta

In his first “Executive Decision” segment, Cramer spoke with Todd McKinnon, president and CEO of cybersecurity giant Okta. (OKTA) – Get the report, with Eugenio Pace, CEO of Auth0. Earlier this week, Okta announced that it would acquire Auth0 in a $ 6.5 billion deal.

McKinnon said Okta ended the year strong, with subscription revenue up 43 percent, totaling more than $ 800 million a year. The markets for cybersecurity and identity management are huge, he added, and there is still room for growth.

Pace mentioned that the world is run by software and every company becomes a software company. This means that there is a growing need for tools for developers to make the lives of developers easier and faster, which Auth0 offers.

When asked why Okta had to buy Auth0, McKinnon explained that the companies are free. He said the labor identity market is worth $ 30 billion, but customer identity management, which excels in Auth0, adds another $ 25 billion.

You have to assume that the bad guys are everywhere, McKinnon concluded, which is why the combination of Okta and Auth0 allows companies to authenticate every user, every car and now every customer, quickly and securely.

Executive Decision II: Trex

In his next exclusive “Executive Decision” segment, Cramer spoke with Bryan Fairbanks, president and CEO of composite decking manufacturer Trex. (TREX) – Get the report. Trex shares have risen 63 percent in the past year, while people across the nation have rushed to modernize their homes and yards amid the pandemic.

Fairbanks said Trex’s main competitor continues to be wood, which accounts for 78 percent of all decks in America. There is enough room for all the players, he added, when asked about Azek’s rival (AZEK) .

The wood is not as environmentally friendly as you might think, Fairbanks explained. Pressure treated wood involves a lot of chemicals and the product lasts only 10-15 years. At the end of its life, all these chemicals get back into the soil.

In comparison, Trex lasts a lifetime, and the company uses 400 million pounds of plastic every year, which would otherwise end up in landfills.

Trex is now available in over 6,700 locations across the country. The company addresses both contractors and homeowners who are looking for superior terrace material.

Executive Decision III: Nutanix

In his next “Executive Decision” segment, Cramer spoke with Rajiv Ramaswami, president and CEO of cloud software provider Nutanix. (NTNX) – Get the report. Nutanix shares fell 25% from their highs earlier this year.

Ramaswami said Nutanix addresses the two key concerns of today’s companies, digitalization and remote workforce management. The company’s virtual desktops and cloud platforms are perfect solutions for these two needs.

When asked about investors’ concerns about the company’s revenue, Ramaswami explained that, like many other companies, including Adobe Systems ADBE, Nutanix is moving from selling hardware devices to subscription software. As the renewal business begins, revenue will bring the company back to growth.

Finally, when asked about the hot topic of security, Ramaswami mentioned that Nutanix is constantly building new security features in their products. Some of their latest offerings help detect and stop ransomware attacks.

On Real money, Cramer participates in the companies and executives he knows best. Get more out of his prospects with a free trial subscription for real money.

No huddle offense

In his “No Huddle Offense” segment, Cramer said in volatile markets like these, your worst enemy could be your fellow shareholders. Take Costco (COST) – Get the report, the retailer that just published mixed results that included a 15% increase in sales in the same store. With shares as low as $ 70 off their highs, Costco is a buyout from Cramer’s book.

But for home-based margin players or hedge fund managers who need to raise cash to cover redemptions, Costco is not a company with excellent fundamentals and a low share price, it’s just a source of funds. You can’t count on these shareholders to make big gains, Cramer said, making the investment much more difficult than it used to be.

.Source

Share this:

Related