September is the cruelest month of the year for investors, Jim Cramer reminded his viewers of Mad Money on Monday. Therefore, the most prudent thing is to get ahead of the masses and raise cash now.
Last week, Cramer registered with fellow Larry Williams, who noted that September 17 is historically the high point of the month, with likely declines across the market thereafter. In the meantime, we are likely to see a rotating cast of market leaders, few with staying capacity.
Today we have seen gains in oil, with stocks like Occidental Petroleum (OXY) – Get the report from Occidental Petroleum Corporation 6.6% more and Devon Energy (DVN) – Get the report from Devon Energy Corporation gaining 3%. But Cramer noted that once oil prices are too high, producers activate the bush to bring down prices. To the confusion are added the stops of Hurricane Ida, which again weigh on oil, chemicals and manufacturing.
COVID also remains a concern, as outbreaks in Vietnam sent shares of Nike (OF) – Get NIKE, Inc. (NKE) Report lower by 2.4%.
Among the few bright spots, according to Cramer, was Wells Fargo (WFC) – Get the report from Wells Fargo & Company, who finished the day 3.2% despite being fined an additional $ 250 million for his past indiscretions. Cramer said the fine, while huge, was lower than many investors had feared.
We’d like to see more current corrections like the ones we saw today, Cramer concluded, so investors should use any strength to raise cash and buy some gold before Sept. 17.
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Executive decision
In his first segment of “Executive Decision,” Cramer spoke with Mark Bristow, president and CEO of gold miner Barrick Gold (OR) – Get the Barrick Gold Corporation report.
Bristow said Barrick’s business “couldn’t be better,” as the company continues to invest in its future and at the same time provides stable cash returns to its shareholders.
Mining is, after all, a consumer industry, Bristow noted. For every ounce of gold you take off the ground, you will need to replace it with additional reserves. That’s why Barrick has a long history in providing sustainable and profitable growth.
Even in Nevada, a state that had long been believed to have no gold, Barrick has discovered new opportunities that Bristow described as “huge.” The rewards in Nevada will be fantastic, he said.
Finally, when asked if he would prefer to invest in gold or bitcoin, Bristow said gold is still the only way to really cover your risks. Bitcoin fell in value as often as it went up, he said, leaving gold as the only stable reserve of wealth.
IPO standards
When it comes to investing in new stock exchanges, avoid opaque companies with high ratings, Cramer told viewers. With the IPO market in full swing, it’s worth doing homework. That’s why he took a second look at three recent travel IPOs.
The first was Clear Secure (YOU) , the biometrics company that has subscribed to more than seven million members for air travel, sports venues, offices and other safe places. Cramer said this company may have great technology, but does not offer investors much clarity about its growth. The company only has a retention rate of 80%, but is valued at 25 times sales.
Next up was Blade Air Mobility BLDE, the short-haul air and sea service that provides members with quick access to destinations primarily in and around New York City. Blade has impressive growth and operations by just five times sales, making it a buy on Cramer’s list.
Finally, Cramer examined Wheels Up UP, a private jet membership service. Unlike Blade, which has a lot of assets, Wheels Up owns many of its aircraft and also has a partnership with Delta Air Lines (DE) – Get the Delta Air Lines, Inc. report. Cramer felt that Wheels Up was also a purchase.
Executive decision 2
For his second segment of “Executive Decision,” Cramer spoke with Matthew Prince, founder, president and CEO of CloudFlare (NET) – Get the Class A report from Cloudflare Inc., the network and cybersecurity provider that is celebrating the two years since its IPO. Since then, shares of Cloudflare have risen 700%.
Prince said Cloudflare is building a better network and continues its mission of execution and innovation. The company has created more than 1,000 new products in the past two years, but “it’s still in its infancy,” he said.
Cloudflare recently won a lucrative contract with the federal government. Prince said they won this deal for their unique ability to provide fast, reliable and secure network services. This is how the company has been able to get a 100% net retention percentage on a dollar basis. Every year, customers spend more on their services.
Prince also called his rival Amazon (AMZN): Get the Amazon.com, Inc. report. to charge too much for bandwidth access to your network. He said Amazon has done an incredible job of reducing customer prices in almost any other area of cloud computing, but in terms of bandwidth, they are “wreaking havoc on their customers.”
Finally, when asked if he would invest in cryptocurrency, as digital wallets have become a favorite of hackers, Prince said that if those wallets used Cloudflare, he would definitely feel comfortable using them.
There is no offense against huddles
In his “No Huddle Offense” segment, Cramer told viewers that lawsuits are messy, but in the battle between Apple (AAPL): Get the report from Apple Inc. (AAPL) and Epic Games, creators of Fortnite, the experts were wrong.
When last week’s verdict came that Apple would be forced to allow app makers to link to third-party payment systems, it was widely seen as a win for Epic and a loss for Apple. But wait a minute.
Cramer said the real problem was whether Apple was a monopoly, and in that sense, the judge ruled that it was not. This makes the ruling a big win for Apple, which can continue to do well for its customers by offering secure and convenient payments.
The fact that Apple also has to allow links to other payment options is not a problem, Cramer concluded, because the decision that being powerful is not necessarily a monopoly is much more important.
Round Lightning
Here’s what Jim Cramer said about some of the actions the interlocutors offered during Monday evening at the “Mad Money Lightning Round”:
BorgWarner (WOOD) – Get the BorgWarner Inc. report.: “Wait another two months, then press the trigger.”
The Lion Electric Company (LEV) : “This is the best company in this group. I would like to.”
Academic and outdoor sports (ASO) : “This has not reached its maximum. They are as good as ever.”
Magna International (MGA) – Get the report from Magna International Inc.: “The Magna is good. I would wait a few weeks and then buy more.”
5 grains (BGFV) – Get the Big 5 Sporting Goods Corporation report: “Let them in a little bit and then buy more. A lot of what they have is sold out.”
IronNet (IRNT) : “This is a stock of memes and we are not memes people from this program.”
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