Friday’s rally wasn’t about Washington or about interest rates or infrastructure spending, Jim Cramer told his Mad Money viewers. It’s all about COVID, especially Merck’s new oral COVID drug, which can reduce the risk of hospitalization and death by up to 50%.
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Cramer’s Mad Money Recap 10/1: Merck, AMC, Disney
If Merck’s Pill helps bring COVID into the past, Cramer says it will make stocks the thing of the future.
Over at Action Alerts PLUS, the AAP team is keeping an eye on a stock that is profitable in the face of the easing COVID threat: “Disney’s current valuation may not look cheap at first, but we think the recovery is in the Theme parks and movie theaters getting stronger business combined with continued growth in streaming should push the stock price back to its $ 200 highs, if not more. Read all of the trading strategies, analysis, and investment ideas at Action Alerts PLUS .
What should investors buy in Merck News? Cramer said with 10 million people potentially returning to work, he would be into travel and leisure and anything that has seen supply chain disruptions, like Honeywell or General Electric.
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As for next week’s action, Cramer said he’ll be looking at two things on Monday, the latest update on the battered Washington infrastructure bill and ticket sales from the new Venom movie, which could indicate whether AMC Entertainment is a buy.
On Tuesday, Cramer said he would be watching PepsiCo, which remains a great long-term story. He will also look to Europe for the latest economic data.
Later in the week, Cramer will focus on Levi Strauss and Constellation Brands on Wednesday and ConAgra Foods on Thursday. He was optimistic about both Levi and Constellation, but said there are far more exciting places out there than ConAgra. He suggested Walt Disney Co. DIS after the Merck News.
Finally, on Friday, all eyes will be on the latest non-farm payrolls, news that will tell us that people are finally getting back into work.
Board decision: Keurig Dr. Pepper
In his first “Executive Decision” segment, Cramer spoke to Bob Gamgort, CEO of Keurig Dr. Pepper, the beverage company that just closed its annual Analyst Day.
Gamgort said there were many doubters three years ago when Keurig and Dr. Pepper merged, but since then the company has achieved a total return of 85%. Keurig Dr. Pepper is now a holistic beverage company, he said, with brands like its namesakes as well as Mott’s, Snapple, Canada Dry, and more.
In addition to the $ 4 billion share buyback program announced today, Gamgort forecasts high single-digit earnings per share. The company plans to move resources from debt settlement back to mergers and acquisitions, he added.
When asked about growth, Gamgort found that 10% of his company’s sales come from e-commerce directly to the consumer, a trend accelerated by the pandemic. Keurig has consistently added two million new households a year and there is no sign of slowing down.
Executive decision: Five9
For its second segment, Executive Decision, Cramer also spoke to Rowan Trollope, CEO of Five9, the call center company that announced today that its shareholders have rejected a takeover bid from Zoom Video, a deal first announced in July. Five9’s shares rallied 4.7% at the close of trading.
Trollope said he was in close contact with Five9’s investors and was very supportive of them throughout the process. Five9 was excited to close the deal with Zoom, but Trollope said they were just as excited to continue as an independent company.
Sales at Five9 remain strong, Trollope said, and companies are adopting the company’s platform more than ever. They were not distracted by the merger, he said, and have continued to focus on their customers.
Five9 has also added a record number of new employees during this time.
Board decision: SolidPower
For his final segment, “Executive Decision”, Cramer brought in Doug Campbell, Chairman and CEO of SolidPower, the manufacturer of solid-state batteries that will soon be listed on the stock exchange via the SPAC merger with Decarbonization Plus Acquisition III.
Campbell stated that unlike other solid-state battery manufacturers, SolidPower has already reached the industrialization of their technology. The company currently has an assembly line on a megawatt-hour scale that is already producing solid-state cells.
SolidPower’s technology is designed as a direct replacement for existing lithium-ion battery factories. This means that companies that already manufacture lithium-ion cells can leverage their existing infrastructure investments and easily switch to solid-state technology.
When asked about safety, Campbell stated that unlike lithium-ion cells, which can catch fire, solid-state cells fail non-destructively if punctured or crushed. Solid-state cells also require fewer cooling and safety systems, which lowers the cost of the battery pack.
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