Game Plan: Recap of Cramer’s “Mad Money” (Friday 3/5/21)

The “Goldilocks” employment report gave investors the perfect opportunity to relax in their positions and raise cash, Jim Cramer told his Mad Money viewers on Friday. But don’t be fooled, he warned, that interest rates and the bond market still control the next position of stocks.

Cramer’s game plan for next week’s stock keeps an eye on the bond market, as any further rise in interest rates will derail stock market gains. Cramer’s other eye will be put on Stitch Fix (SFIX) – Get the report Monday. Expect another better quarter than expected from this online retailer.

On Tuesday, Cramer will focus on another retailer, Dick’s Sporting Goods (DKS) – Get the report, which is about to concentrate as team and youth sports return after a one-year hiatus.

Then on Wednesday we will get Campbell Soup gains (CPB) – Get the report and Oracle (ORCL) – Get the report. Cramer said packaged foods aren’t impressing Wall Street these days, even with a 3.2% dividend yield, but Oracle is just the low-risk tech stock investors are looking for.

Thursday makes a profit from two more retailers, JD.com (JD) – Get the report and Ulta Beauty (ULTA) – Get the report. Cramer is looking for strong results from both companies, especially one with a long Ulta tradition.

Finally Friday, AT&T (T) – Get the report will hold a day of analysts, but Cramer said he would not be a buyer. The troubled telecom company may have an attractive dividend yield, but its shares continue to fall and erase those gains.

Cramer and the AAP team are looking from gains and tariffs to the Federal Reserve. Find out what they tell the members of the investment club and join the conversation with a free trial subscription to Action Alerts Plus.

Executive decision: Okta

In his first segment “Executive Decision,” Cramer spoke with Todd McKinnon, president and CEO of cybersecurity giant Okta (OKTA) – Get the report, along with Eugenio Pace, CEO of Auth0. Earlier this week, Okta announced that it would acquire Auth0 in a $ 6.5 billion deal.

McKinnon said Okta ended the year strong, with a 43% subscription revenue, which topped $ 800 million a year. The cybersecurity and identity management markets are huge, he added, and there is a lot of room for growth.

Pace noted that the world is driven by software and that every company is becoming a software company. This means that there is a growing need for tools for developers to make the lives of developers easier and faster, which Auth0 provides.

When asked why Okta needed to acquire Auth0, McKinnon explained that the companies are free. He said the workforce identity market is worth $ 30 billion, but managing customer identification, which is where Auth0 excels, adds an additional $ 25 billion.

It must be assumed that the bad guys are everywhere, McKinnon concluded, so the combination of Okta and Auth0 allows companies to authenticate all users, all machines and now all customers, quickly and securely.

Executive Decision II: Trex

In his next exclusive “Executive Decision” segment, Cramer spoke with Bryan Fairbanks, president and CEO of composite deck maker (TREX) – Get the report. Trex shares have risen 63% over the past year as people across the country struggled to improve their homes and gardens amid the pandemic.

Fairbanks said Trex’s main competitor remains wood, which accounts for 78% of all roofing in America. There is plenty of room for all players, he added, when asked about rival Azek (AZEK) .

Wood is not as environmentally friendly as one might think, Fairbanks explained. Pressure treated wood involves many chemicals and the product only lasts 10 to 15 years. At the end of their life, all of these chemicals end up in the soil.

By comparison, Trex lasts a lifetime and the company uses 400 million pounds of plastics each year that would otherwise end up in landfills.

Trex is now available in more than 6,700 locations across the country. The company is addressing both the contractors and the homeowner that DIY is looking for a top deck material.

Executive Decision III: Nutanix

In his next “Executive Decision” segment, Cramer spoke with Rajiv Ramaswami, president and CEO of cloud software provider Nutanix (NTNX) – Get the report. Shares of Nutanix have fallen 25% from their highs earlier this year.

Ramaswami said Nutanix addresses the two key concerns of today’s companies, digitization and dealing with a remote workforce. The company’s virtual desktop computers and cloud platforms are perfect solutions for these two needs.

When asked about investors ’concerns about the company’s revenue, Ramaswami explained that, like many other companies, including Adobe Systems ADBE, Nutanix goes from selling hardware to subscription software. As your renovation business begins, revenue will return the company to growth.

Finally, when asked about the hot topic of security, Ramaswami noted that Nutanix is constantly incorporating new security features into its products. Some of its latest offerings help detect and stop ransomware attacks.

Turned on Real money, Cramer participates in the companies and CEOs he knows best. Learn more about their information with a free trial subscription to Real Money.

There is no offense to Huddle

In his “No Huddle Offense” segment, Cramer said in volatile markets like these, your worst enemy could be your fellow shareholders. Take Costco (COST) – Get the report, the retailer that just posted mixed results that included 15% of the same in-store sales growth. With shares of $ 70 off its highs, Costco is a buy in Cramer’s book.

But for the player who buys the margin at home or for the hedge fund manager who needs to raise money to cover the redemptions, Costco is not a company with large foundations and a low stock price, it is just a source of funds. You can’t count on these shareholders to respond to big gains, Cramer said, which makes investing much harder than it used to be.

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