Now that the Biden era has begun, where should investors be putting their money? Jim Cramer told his Mad Money viewers Wednesday that many of last year’s themes still apply. He then listed his top 12 biggest investable themes for 2021.
First, Cramer said that e-commerce is here to stay and any retailer that’s figured out online sales will continue to prosper. Travel and leisure was next on Cramer’s list as travel restrictions are gradually lifted.
In technology, Cramer noted that digitization, cybersecurity, 5G wireless and remote working will continue to be strong in 2021. Whether it’s Zoom Video (ZM) – Get Report or Palo Alto Networks (PANW) – Get Report, you’ll be hard pressed not to find a winner. Cramer outlined his favorite 5G wireless stocks last week.
Other investable themes in 2021 include companies that benefit from the COVID stimulus, which includes stock picking and wealth management. Cramer liked Morgan Stanley (MS) – Get Report. Investors can also look for stocks that benefit from a softening of relations with China or more affordable healthcare, both of which are likely under the Biden administration.
Finally, Cramer noted that electric vehicles and alternative fuels will remain hot, as will the need for more housing as our economy recovers.
Read, from TheStreet’s Chris Versace, Best Stocks to Buy for the Biden Presidency
You don’t need a new president for these themes to make you money, Cramer concluded. These companies just need access to capital, and that’s precisely what the market has been giving them.
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Executive Decision: Gritstone Oncology
In his first “Executive Decision” segment, Cramer spoke with Andrew Allen, co-founder, president and CEO of Gritstone Oncology (GRTS) – Get Report, the biotech applying targeted oncology therapies to develop the second generation of COVID vaccines. Shares of Gritstone have soared 342% during the past week on positive pre-clinical trial data.
Allen admitted that he hopes Gritstone’s vaccines are never needed on a large scale, but he said they are already starting to see signs that COVID is mutating. Those mutations, he said, may eventually become resistant to the current crop of vaccines that are only just beginning to roll out worldwide.
Based on the data thus far, Allen speculated that it’s unlikely vaccines from Pfizer (PFE) – Get Report and Moderna (MRNA) – Get Report will see their effectiveness fall to zero. However, he said it is possible effectiveness could decline from 95% effective to 70% effective, which would be enough to cause alarm.
Plans are already underway to move Gritstone’s vaccine candidate into Phase 1 trials, Allen added, and the company has access to all of the resources they need, from the capital markets, their partners and the government, to continue their development of the next generation of COVID vaccines.
Executive Decision: Renewable Energy Group
For his second “Executive Decision” segment, Cramer spoke with CJ Warner, president and CEO of Renewable Energy Group (REGI) – Get Report, our nation’s largest biodiesel maker. Shares of Renewable Energy are up 259% over the past year.
Warner explained that Renewable Energy essentially takes used cooking oils and turns them into high-quality, low-carbon fuels that can be used in conventional diesel engines without any modifications.
Warner said that biodiesel emits 85% less carbon than conventional diesel fuels and is even cleaner than electric vehicles, which rely on the power grid. Biodiesel allows the country to decarbonize today, she said, which is why the industry is growing rapidly, even during the pandemic.
While Warner admitted that the U.S. is focused on electric vehicles, biofuels are gaining in capacity after starting with soybean oil, then adding used cooking oil, followed by corn oils used in the production of ethanol. They are discovering more sources of biofuels every day, she said, and currently only a fraction of all cooking oils are recycled.
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Keep on Streaming
Streaming video is here to stay, Cramer told viewers, and that means investors should stick with what’s working, but only if they can buy in at lower prices.
Yesterday, we got stellar earnings from Netflix (NFLX) – Get Report, news that sent shares soaring 16.8% in Wednesday’s session. Not only is the streaming giant still adding subscribers, but the company expects hit break even sometime this year.
What’s good for Netflix is also good for streaming device maker Roku (ROKU) – Get Report and for The TradeDesk (TTD) – Get Report, which provides advertising services for streaming applications. Cramer said Roku is pricey at 20 times sales, but The TradeDesk is a bargain after the stock’s recent pullback.
Cramer was bullish on Walt Disney Co. (DIS) – Get Report, both for the return of travel and the success of Disney+ but he saw no reason to get excited about FuboTV (FUBO) – Get Report or PubMatic (PUBM) – Get Report at these levels.
Great Companies and Great CEOs
In his No-Huddle Offense segment, Cramer said sooner or later, the market rewards great companies and the great CEOs that build them. That’s how Cramer felt after hearing Tuesday’s Netflix earnings. Netflix has been counted out more times than Cramer could count, yet CEO Reed Hastings proved the critics wrong.
The only CEO to prove the critics wrong more than Netflix is Elon Musk at Tesla (TSLA) – Get Report, Cramer added. But let’s not forget the massive short sellers in the early days of Amazon (AMZN) – Get Report and Apple (AAPL) – Get Report as well. But like Hastings and Musk, Jeff Bezos, along with Steve Jobs and Tim Cook also proved the naysayers wrong and made a ton of money for their shareholders and believers in the process.
Lightning Round
Here’s what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:
Palantir Technologies (PLTR) – Get Report: “We’re not sure exactly what they’re up to but I think they’re right for this market.”
Foley Trasimene Acquisition (BFT) : “This one works. I like fintech.”
Rocket Companies (RKT) – Get Report: “Housing is good and mortgages are good, but people want to be in banks or fintech right now.”
Workhorse Group (WKHS) – Get Report: “This is a speculative EV company. It’s not my favorite.”
Canoo Holdings (GOEV) – Get Report: “I profiled this one last week, but it’s also speculative and up big.”
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