Sometimes, there’s just too much good news to ignore, Jim Cramer told his Mad Money viewers Tuesday. Tuesday was one of those days, with bond yields finally headed in the right direction and Federal Reserve chair Jay Powell making thoughtful comments on Capitol Hill.
The stock market is often controlled by the bond market, with computerized trading programmed to instantly buy the entire S&P 500 index anytime bonds move in the right direction. But we, as individual traders, can afford to be more discerning and not treat stocks as a single commodity.
Amazon (AMZN) – Get Amazon.com, Inc. Report received a terrific upgrade Tuesday, continuing its reign as a leader in e-commerce and the cloud. Apple (AAPL) – Get Apple Inc. Report also saw a nice bounce in Tuesday’s session. There is also a lot of positive news coming out of the JP Morgan Healthcare Conference this week. Cramer called out Zoetis (ZTS) – Get Zoetis, Inc. Class A Report as one of his favorites.
Then there are the semiconductor stocks of Nvidia (NVDA) – Get NVIDIA Corporation Report and Advanced Micro Devices (AMD) – Get Advanced Micro Devices, Inc. Report, both of which continue to rally despite the recent weakness in tech.
Cramer said even beleaguered Boeing BA is proving to be not as bad as many investors feared. All of these names can be bought into weakness, he said.
Executive Decision: Zoetis
Speaking of Zoetis, Cramer spoke with Kristin Peck, the company’s CEO, in his “Executive Decision” segment, following their presentation at the JP Morgan Healthcare Conference.
Peck said that as a result of the pandemic, more people are adopting more pets. And since many people are working from home, they’re spending a lot more time with their pets and noticing health issues and concerns.
Zoetis is a leader in pet health thanks to science and innovation, Peck added. The company has strong brand awareness for their products and has novel treatments that competitors can’t match.
Zoetis also pays attention to the pricing of their products, acknowledging that most pet owners self-pay for their pet’s medical care. The company is also expanding rapidly overseas, including in China, and is investing into treatments for fish, which have become the fastest-growing pet category.
Off the Charts
In the “Off The Charts” segment, Cramer checked in with colleague Carolyn Boroden over the future direction of the Nasdaq.
Boroden correctly predicted the traditional end-of-year rally, but noted that the Nasdaq failed to meet her price targets and has since retreated to below the previous floor of support.
While the new floor of support might lead to a tradable bounce in the short term, Boroden did not like the technicals for the Nasdaq over the mid-to-long term.
With interest rates on the rise, Cramer reiterated that the market won’t tolerate speculative tech names without earnings. He urged investors to be selective and only buy tech companies that make tangible things and have actual earnings.
Executive Decision: BioMarin Pharmaceuticals
For his second “Executive Decision” segment, Cramer also spoke with J.J. Bienaime, chairman and CEO of BioMarin Pharmaceuticals (BMRN) – Get BioMarin Pharmaceutical Inc. Report, which also presented this week at the JP Morgan Healthcare Conference.
Bienaime said things are progressing very well for its treatment for Hemophilia A, Roctovian. He said the Phase 3 trials continue and is the largest study of Hemophilia A patients ever conducted. There are approximately 150,000 patients worldwide with the disease and 60% of those are severe cases. Roctovian has the potential to change the standard of care for those patients.
BioMarin is also diversifying into other areas. Bienaime said it just introduced a new growth treatment for children with a rare condition called achondroplasia. BioMarin is the only approved treatment for this condition, which represents a $3 billion market opportunity. The treatment will cost $250,000 per year.
How Much Screen Time?
In his “No Huddle Offense” segment, Cramer asked whether Americans have finally run out of time… to watch more TV.
For years now, Netflix (NFLX) – Get Netflix, Inc. Report has been telling investors that its biggest competition wasn’t other streaming services, it was sleep. But with so many great shows on so many different streaming services, the time may have finally come where we’ve reached a saturation point, at least during waking hours.
That’s why Cramer noted on Monday night’s show that online gambling sites are offering huge promotions to get people’s time and attention. It’s also why Take-Two Interactive (TTWO) – Get Take-Two Interactive Software, Inc. Report snapped up Zynga (ZNGA) – Get Zynga Inc. Class A Report. Take-Two makes games for inside the home, while Zynga makes mobile games for outside the home. With people becoming limited on time, Take-Two’s only choice was to expand to mobile.
Cramer said he’s still bullish on Netflix’s growth overseas, but when it comes to domestic growth, it’s inevitable that Americans will soon run out of time to watch more series, more movies, more documentaries and more specials.
In the Lightning Round, Cramer was bullish on InMode (INMD) – Get InMode Ltd. Report, Rio Tinto (RIO) – Get Rio Tinto Plc Report, NovoCure (NVCR) – Get NovoCure Ltd. Report, and Atkore International (ATKR) – Get Atkore Inc Report.
Cramer was bearish on GrowGeneration (GRWG) – Get GrowGeneration Corp. Report, Star Bulk Carriers (SBLK) – Get Star Bulk Carriers Corp. Report, Rivian (RIVN) – Get Rivian Automotive, Inc. Class A Report, Li-Cycle Holdings (LICY) and Virgin Galactic (SPCE) – Get Virgin Galactic Holdings Inc Report.
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