Cramer’s “ Mad Money ” Recap: Applied Materials, Paychex

Investors need to get used to the word “hybrid,” Jim Cramer told Mad Money viewers on Wednesday. Instead of playing the immunization guessing game and trying to pick actions that work well after immunization, stick with hybrid actions that win both ways.

There aren’t many stocks that work well in a hybrid world, Cramer said, but when you find them you have to go big or go home. For example, whether you are locked up at home or having fun at home, you will likely be spending money on your house. This means now is a great time for stocks like Home Depot. (High Definition) – Get a report and Lowe’s (LOW) – Get a report, as well as the items these stores carry, such as Stanley Black & Decker (SWK) – Get a report.

Now is the perfect time for high-end retailers like Williams-Sonoma (WSM) – Get a report and HR (HR) – Get a report. Etsy online marketplace (ETSY) – Get a report had a good spring term last year and is set to do so again this year.

Cramer even winked at spice maker McCormick. (MKC) – Get a report. Whether you have to cook or just cook, you will have to keep buying spices and seasonings.

Stick to those winners and your wallet will work fine no matter what people decide to do once they get vaccinated, Cramer concluded.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they’re saying to their investment club members and join the conversation with a free trial subscription to Action Alerts Plus.

Executive decision: applied materials

In his first “Executive Decision” segment, Cramer spoke with Gary Dickerson, President and CEO of Applied Materials (AMAT) – Get a report, the semiconductor equipment maker working hard to alleviate the global semiconductor shortage.

Dickerson said Applied Materials saw the shortage arrive, even before the onset of the pandemic. And now, with the pandemic, the digital transformation is accelerating. Now that everyone is working from home, learning at home and having fun at home, the demand for chips has exploded.

We’re at a huge inflection point in the market, Dickerson continued, saying that soon machines will generate more data than humans, requiring new chips, new structures, new ways to connect chips to each other and to new foundries to make it all happen.

Asked about President Joe Biden’s infrastructure plan, which includes the semiconductor industry, Dickerson said semiconductors are of strategic national importance and our country needs to build its own smelters and make one of them. priority.

Applied Material expects earnings of $ 8.50 per share by 2024.

Executive decision: Okta

For his second “Executive Decision” segment, Cramer also spoke with Todd McKinnon, Chief Executive Officer of Okta (OKTA) – Get a report, the cybersecurity firm with stocks up 77% in the past year, but down 11% in the past three months, as investors favored economic reopening stocks over technology.

Okta is getting ready for its annual Oktane User Conference. This year’s Oktane21 will be virtual, following in the footsteps of last year’s event. McKinnon said Okta factories were introducing new product categories that would increase its total addressable market from $ 55 billion to $ 70 billion.

Asked about the recent SolarWinds attack, McKinnon said it just proves the importance of doubling protection on privileged accounts. This is especially important in dynamic cloud environments, he said, where servers and other resources dynamically rotate and stop to meet demand.

McKinnon also said that in complex environments, identification governance becomes increasingly important. He said what big companies want is the ability to build their rules of governance and then see a report with all the exceptions that need to be fixed.

Executive decision: Paychex

For his latest “Executive Decision” segment, Cramer checked again Marty Mucci, President and CEO of Paychex (PAYX) – Get a report the payroll processor which hit new highs after last week’s strong non-farm payroll numbers.

Mucci said Paychex has updated all forecasts for the company and now expects revenue to be stable for the year. Given how the pandemic has crushed small businesses, Mucci said the apartment was quite a feat. For example, more than 150,000 restaurants have closed their doors in the past year.

Beyond payroll, Mucci said Paychex’s human resources outsourcing services have grown to double digits and companies are increasingly relying on them for things like helping with PPP loans and other government aid.

Paychex also has a new partnership with Clover, a point of sale system for small businesses. Mucci explained that now companies that use shamrock can log their time and attendance directly at their point of sale and the data flows directly to Paychex.

At Real money, Cramer focuses on the companies and CEOs he knows best. Get more of his information with a free trial subscription to Real Money.

Dimon talks about China

In his segment “No Huddle Offense”, Cramer spoke out on CEO Jamie Dimon’s Annual Letter to JPMorgan Chase (JPM) – Get a report shareholders. He said there are many ways to interpret Dimon’s views, but some things stand out. First, eliminate tax breaks for private jets, golf courses and racehorses. Second, the need to invest more in diversity and minority neighborhoods.

But most convincing were Dimon’s words about China. He said China believes America is in decline and is lagging behind in technology and education. Why? Because we are crippled by selfishness, politics and inaction.

Sadly, Cramer said it looks exactly like America right now. We need to be less selfish, tone down rhetoric, be kind, face our nation’s problems, and invest in our future.

Lightning round

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

Shopify (SHOP) – Get a report: “It’s a chance to buy this business way above its peak. You want to own it.”

Fisker (FSR) – Get a report: “I love Fisker. They are about to get another grant from the government.”

Callaway Golf (ELY) – Get a report: “It’s a stock with a lasting hold. I really like this stock.”

Juniper Networks (JNPR) – Get a report: “I think their products are better. I like Cisco Systems (CSCO) – Get a report But.”

Kroger (KR) – Get a report: “I think they do a great job. I like the stock.”

Bill.com (BILL) – Get a report: “People decided it was too expensive. I think it offers great value for the money.”

Petco health and wellness (WEFT) – Get a report: “I think Petco is better than its graph suggests, but Chewy (CHWY) – Get a report has more mojo. “

Royal Dutch Shell (RDS.A) : “I really don’t want you in this one. I would go with Pioneer Natural Resources (PXD) – Get a report. “

Look up Jim Cramer’s ‘Mad Money’ trading recommendations using our “Mad Money” stock filter.

To watch reruns of Cramer’s video segments, visit Mad Money page on CNBC.

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At the time of publication, Cramer Action Alerts PLUS does not have any positions in the mentioned stocks.


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