Believe it or not, prudence is still a virtue, Jim Cramer told his Mad Money viewers. He reminded them that while bulls make money and bears make money, pigs are always euthanized, wrote Scott Rutt of TheStreet.
In his 40 years on Wall Street, Cramer said he has learned some key lessons. The first is that no one got hurt by making a profit. You can bet with stocks. You can bet against stocks. But when you make some money, take it to the bank.
This is a difficult lesson for meme stock traders, who believe that selling is a sin and that anyone who charges is the enemy. But contrary to your beliefs, it is not a sin to make a profit on GameStop. (GME) – Get report, AMC Entertainment (AMC) – Get report or even Wendy’s (WEN) – Get report after Tuesday’s big gains.
“I would choose the excellent and dominant electronic retailer with a shredded stock managed by a current Chewy (ALL) – Get report boy any day of the week ” Cramer wrote in his real money column on Friday on the subject of GameStop Chewy.
“The memesters are, as we know, possessed by GameStop because they were able to crush the short sale hedge funds, bring them to their knees, rally stocks quickly through a call and stock buy blitz. It worked and a lot. of gamblers made a lot of money … but what bothers me is the insistence of these same winners that the reason they have won is that they are backing an insurgent, Ryan Cohen, now president, who was a co-founder of Chewy, the fabulously successful electronic pet food company, “Cramer also wrote.
Cramer feels that if investors idolize Ryan Cohen, they should buy shares of Chewy, which had a very good quarter.
Here are the top 10 videos of the past week:
Cramer: Boeing Order Reports Reflect Travel Return
Cramer explains why he’s watching Boeing (licensed in letters) – Get report, which is a share in Cramer’s Action Alerts PLUS charitable trust.
“My thinking is that maybe people are thinking they can get a good deal at Boeing right now or maybe they won’t get a good deal for a few months, or that China is about to certify Boeing, but I think they will. What really matters is that this is the return of travel, “Cramer said.
“If Boeing can perform better, the stock could go up to $ 400. And one of the things Boeing did was make its planes much more energy efficient by betting that jet fuel prices would go up, so there are a lot of changes. secular and cyclical tailwinds that are making Boeing a good stock, “he added.
Cramer: RH is not a furniture store, it is an experience
Restoration tools (Rh) – Get report reported income. It rose more than 6% after the high-end furniture retailer beat analysts’ estimates for first-quarter earnings and raised its forecast for the year, benefiting from the strong housing market. The company also raised its revenue growth guidance for fiscal 2021 to a range of 25% to 30% from previous estimates of 15% to 20%.
“Unmasking the general public could lead to a kind of roaring 1920s consumer exuberance,” wrote CEO and President Gary Friedman in a letter to shareholders.
“Gary Friedman talks a lot on that conference call, and also in his excellent letter to shareholders, about what a store is not like: it’s galleries, a museum, architecture, restaurants, yachts, houses, mansions, and much more than a furniture store. It’s a club of experiences … they are so exciting … Gary is a genius, “Cramer said. “We just bought a house with crypto and basically outfitted everything with HR,” he added.
Why Cramer ‘Genuinely’ Believes GameStop Shares May Go Higher
GameStop (GME) – Get report Shares fell Thursday after the company reported a narrower-than-expected first-quarter loss and added two former Amazon executives to C-Suite. The company also announced plans to sell another 5 million shares and disclosed a request from the Securities and Exchange Commission on May 26 for “voluntary document production.”
However, Cramer took to Twitter to tell his followers that GameStop is not a profit story. Having been around for months, Cramer is still focused on seeing a complete turnaround plan for the video game retailer.
Despite his frustration at the lack of details, Cramer told Action Alerts PLUS senior analyst Jeff Marks that he “genuinely” believes there is a way for GameStop to move up.
Cramer: Ford is a purchase based on IPC data
Joining Cramer on Thursday’s episode of TheStreet Live, Action Alerts PLUS senior analyst Jeff Marks told Cramer that he was surprised by the rise in used car prices reported in the IPC data from the Thursday.
Cramer believes investors have more than one reason to buy Ford (F) – Get report. “Ford Motor is a huge beneficiary of used cars. One of the reasons Ford’s results will be so good is because they benefit dramatically from the increase in used trucks because there aren’t enough trucks. It’s a fantastic situation for Ford. It is one of our great positions … if you want to try to play with what’s going on, play with Ford, “Cramer said.
Curious what else Cramer and his team at Action Alerts PLUS are seeing in the markets? Watch the Cramer member-exclusive Daily Rundown show on Action Alerts MORE after TheStreet Live.
Cramer at Wendy’s: Where the Game Ends, Education Begins
Wendy’s (WEN) – Get report It rose more than 25% to close at $ 28.87 on Tuesday after a bullish thesis from Reddit sent the stock flying.
While Cramer believes the rally will be short-lived, he likes the name and says it reflects a new frontier for the r / wallstreetbets cohort.
“They cut their teeth on GameStop and AMC, two very short stocks, but now they are spreading their wings with these new stocks, especially one institutional favorite, Wendy’s, with a very low short position,” Cramer wrote in a Real money column on Tuesday.
Clover Health: Cramer Explains Short Position, Reddit Reaction
Jim Cramer explains why the Reddit surge on Clover Health is working and why the shares were shortened in the first place.
“Hindenberg’s Nathan Weiss did a really amazing analysis that explained the problems … but a lot of people fell short because it was a smart short film, and they’re being destroyed by people who don’t give a damn about the story. Nathan is an excellent analysis. But anyone who heard it was invaded by people who said ‘let’s go get the shorts.’ And it’s working, “Cramer said.
WWDC Findings: Cramer Says Apple Is Expanding Its Leadership
While Apple (AAPL) – Get report WWDC’s annual event left some on Wall Street wanting more, a number of changes are on the way to their operating systems, and yes, at the very least, Apple let you know that privacy is key.
Jim Cramer explains why he’s still excited about Apple. “When you see this product gradually being improved, you are doing it to expand your edge and increase customer satisfaction. That’s what Tim Cook is all about,” Cramer said. “You can call it incremental, but I call it: game, set, match.”
Biogen: Buy, Sell or Hold?
Jim Cramer said Action Alerts PLUS Senior analyst Jeff Marks says it’s time to cash in on Biogen. (BIIB) – Get report after the stock rose more than 38% after the FDA approval of its Alzheimer’s drug.
The company rose on Friday as Wall Street analysts upgraded the drugmaker amid controversy over the Food and Drug Administration’s authorization of its Alzheimer’s treatment, aducanumab.
At Bernstein, analyst Ronny Gal raised his rating on the Cambridge, Massachusetts company to outperform the market. He set his target price at $ 500. Gal called Aduhelm a product with a sales potential of more than $ 10 billion in 2023.
Cramer explains business as a force for social change
Cramer said businesses should also be forces for social change following news of Mastercard’s assistance for vaccine distribution in Africa and an interview about the Call of Duty Endowment with Activision Blizzard. (ATVI) – Get report CEO Bobby Kotick.
“My hope is that others will see this and say they want to get in, they want to lead, because institutions these days, traditional stalwarts, are often in disarray. But business has rarely been stronger and it’s time to make the switch like Mastercard, because a company’s job is not just to sell widgets, but to help make the world a cleaner, healthier and better place. ” Cramer wrote about real money.
“The way to have long-term wealth is not to return a profit,” Cramer said.
Cramer: Rate Environment is a reason to be pro-FAANG
Cramer said Action Alerts PLUS Jeff Marks, a senior analyst, said he can’t blame investors for being tired amid rising and falling inflationary fears.
“I don’t blame anyone for being confused. Rates should go higher, ”Cramer said. “It is very difficult to know what to do.”
Boeing and Apple Inc. are key holdings in Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells CRM? Find out more now.