This stock market chooses to accentuate the positives and ignore the negatives, Jim Cramer told his Mad Money viewers Monday. And in that kind of market, Cramer said, stocks can head higher even when it appears they should be heading lower.
The news cycle was full of negatives before the market opened Monday morning, yet despite social media stocks coming under fire and bitcoin plunging 25%, the buyers still stepped in.
Cramer recalled trying to shop at a Best Buy (BBY) – Get Report store this weekend, only to find long lines outside the building as the company limited the number of shoppers in their stores. Normally, a retailer actively discouraging shoppers from shopping would be a reason to sell. But in this market, shares ended the day higher.
Shares of Twitter (TWTR) – Get Report ended down only slightly, Cramer noted, despite the company banning one of its biggest accounts, President Donald Trump. Then there’s Ford Motor Co. (F) – Get Report, the automaker that announced a $4.1 billion charge to end manufacturing in Brazil. That stock didn’t skip a beat, shares of Ford were up a quick 3%.
How long will this euphoria last? Cramer said asking that question will only keep you out of the market and away from these incredible gains.
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Executive Decision: Medtronic
In his first “Executive Decision” segment, Cramer spoke with Geoff Martha, chairman and CEO of medical device maker Medtronic (MDT) – Get Report, which has seen its shares under pressure during the pandemic, despite a pent-up demand for elective procedures.
Martha explained that Medtronic has moved beyond simple devices and is now implanting real computers inside of patients. These tiny computers assist with things like pacing their heart or talking to their brains to mitigate the symptoms of Parkinson’s disease.
Up until now, Medtronic hasn’t been doing much with the data collected from their sensors and devices. But that is about to change, Martha said. Now they aren’t just talking to a patient’s brain, they can listen to it as well and in the hopes of eventually being able to personalize the conversation.
These advanced therapies require a lot of work and capital, which is why Medtronic has increased their research and development and shifted resources to speed up their therapies. They’ve also levered the company’s balance sheet, making seven recent acquisitions to further bolster their efforts.
All the while, Martha said Medtronic remains committed to their dividend and rewarding their shareholders.
Executive Decision: Bristol-Myers Squibb
For his second “Executive Decision” segment, Cramer spoke with Giovanni Caforio, CEO of Bristol-Myers Squibb (BMY) – Get Report, the drugmaker that saw its shares up 4% Monday after presenting at the annual JP Morgan Healthcare Conference.
Caforio commented on Bristol’s $13 billion acquisition of MioKardia, saying the company’s drug, Eliquis, is “first in class” and expands their leadership position in the cardiovascular space. He said both companies will be even stronger together.
Caforio noted that Bristol has strong free cash flows, which allow them to fuel acquisitions as well as develop transformational medicines that other companies simply cannot.
Caforio was also bullish on Bristol’s oncology efforts. He said Opdivo, the company’s treatment for lung cancer, is among the leading treatments in the space and they have many more exciting things to come.
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Executive Decision: Emergent BioSolutions
For his final “Executive Decision” segment, Cramer checked in Robert Kramer, President and CEO of Emergent BioSolutions (EBS) – Get Report, the contract manufacturer that’s seen its shares plunge $40 from their August highs. Shares rose 1.7% Monday, however, after the company also presented at the JP Morgan Healthcare Conference.
Kramer explained that Emergent provides several different services, from devices to therapeutics to contract development to packaging for companies big and small. The company operates nine manufacturing facilities and has been contributing to Operation Warp Speed to help with COVID vaccine production and distribution.
When asked about Warp Speed, Kramer was positive on the public-private partnership program. He said it combined both science and manufacturing expertise and allowed millions of doses to be produced “at risk” before final approvals were granted. Once the vaccines received approval, they were immediately made available.
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At the time of publication, Cramer’s Action Alerts PLUS had no position in the stocks mentioned.
