Today, we saw the power of positive thinking, Jim Cramer told his Mad Money viewers Wednesday. As stocks headed lower, investors welcomed the move, which finally gave them a good chance to buy.
Back in the old days, big macro events used to matter, Cramer explained. In fact, nearly half of a stock’s performance had nothing to do with the company itself, but rather from its sector and the economy at large. But in today’s market, investors are once again focused on individual stocks.
Make no mistake, index funds are still very popular, Cramer added, but the money is only flowing into stocks. Interest rates remain low, giving investors few other alternatives for long-term growth.
The real driver for investing in individual stocks is zero-commission trading, Cramer said. It has finally become easy and affordable for investors to pick up their favorite stocks. And with so many stocks heading higher, it’s hard to go wrong.
That’s why the market no longer moves in lock-step to macroeconomic events, like the pandemic or employment rates. As long as interest rates remain low, stocks will continue to be the only game in town.
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Executive Decision: Teladoc
In his first “Executive Decision” segment, Cramer welcomed back Jason Gorevic, CEO of Teladoc (TDOC) – Get Report, the telemedicine provider that’s seen its shares stall in recent weeks after the company announced a merger with Livongo Health (LVGO) – Get Report.
Gorevic said that Teladoc has seen an incredible transformation this year. At the beginning of the year, they were fighting for awareness, but as the pandemic hit, the moved through the acceptance phase and right into the expectation phase. Patients who have tried telemedicine don’t go back to the waiting room, he said. Patients want, and expect, to have options.
Gorevic added that with the acquisition of Livongo, Teladoc has a strong breadth of services and is truly the only global healthcare delivery platform. Approximately 18% of their business now comes from overseas and outside the U.S.
Teladoc is proud to be expanding access for mental health services around the globe. Gorevic said mental health is a vital, but underutilized, part of our healthcare system and one that lends itself to telemedicine.
Executive Decision: Biohaven Pharmaceuticals
For his second “Executive Decision” segment, Cramer also spoke with Vlad Coric, CEO of Biohaven Pharmaceuticals (BHVN) – Get Report, makers of the breakthrough migraine drug, Nurtec ODT. Shares of Biohaven have tripled since Cramer last checked in back in April.
Coric said they’ve seen explosive growth in Nurtec since its debut, with prescriptions surging over 200,000 so far. Patients are loving that Nurtec works fast and is long lasting.
When asked how the drug works, Coric explained that Nurtec is a targeted therapy that zeroes in on the pain receptors for migraines and stops the pain, and cascading symptoms, fast. He called the drug “best is class,” and noted that it lasts for up to two days.
Biohaven is currently awaiting FDA approval for Nurtec to also become the first drug approved for the prevention of migraines as well. The preventative version is the same drug and the same dose, but it will be approved for every other day doses to knock out migraines before they start.
Where the money goes, the technology often follows, Cramer told viewers, as he changed his tune on hydrogen fuel cells.
For years, hydrogen fuel cells have been a sure-fire way to lose money. Tesla’s (TSLA) – Get Report Elon Musk is notorious for referring to fuel cells as “fool’s cells” as well as “utterly stupid.” But today, Plug Power (PLUG) – Get Report, makers of fuel cell powered forklifts, raised an additional $845 million, in a deal that was cheered by Wall Street. Shares of Plug Power are also up over 600% for the year. Perhaps, Cramer said, fuel cells aren’t a pipe dream after all.
Plug Power beat on earnings, has tons of big customers like Amazon (AMZN) – Get Report and Walmart (WMT) – Get Report, and the company has a number of positives to look forward to. First, renewable energy will certainly be more favored by a Biden presidency. Renewable energy is also getting a lot cheaper, which is exactly what green hydrogen needs to be profitable. That’s probably why big companies like Linde (LIN) – Get Report are making investments into green hydrogen. Finally, hydrogen may be part of the answer for our energy storage problem. Solar panels can power the grid by day while also making hydrogen that can power us at night.
The Race to $10
A little over five weeks ago, Cramer wagered that in the race to $10 a share, Ford Motor (F) – Get Report would likely beat General Electric (GE) – Get Report to the finish line. Turns out, GE pulled out a surprise win.
Ford’s been on fire these past few weeks. The Robinhood traders continue to pile into the stock. And customers are loving Ford’s new lineup of vehicles, including the all-electric Mustang and F-150 pickup truck.
So how then did GE rocket to $10 a share? In a word, Boeing (BA) – Get Report. With the 737Max now cleared to fly and a COVID vaccine on the way, General Electric is set to surge along with the rest of the aerospace industry.
Here’s what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:
MGM Resorts (MGM) – Get Report: “I feel strongly that because China is coming back. We need to be in Wynn Resorts (WYNN) – Get Report.”