There is a big difference between blind speculation and informed speculation, Jim Cramer told his Mad Money viewers on Thursday. Therefore, it’s time to eradicate the seven deadly stock sins, Cramer said he sees on Twitter (tWTR) – Get report weekday.
The first deadly sin is cheerleading. Cramer said investors think they are helping their favorite stocks by promoting them, but in reality, the excitement is only paying attention to the short sellers about an opportunity.
The other deadly sin is not knowing what a company is doing. Cramer said every investor should have at least three reasons why they like a stock so they know when to sell when those reasons disappear.
Deadly sin # 3 on Twitter: buying stocks of non-Tesla electric cars (TSLA) ̵
Sønder no. 4 and 5 buy shares with low dollars and buy ear stocks. No stock falls below $ 10 per. Stocks are doing well, Cramer said, and earbuds are the most risky investments.
Sin No. 6 does not take profit. Cramer reminded viewers that you do not have a profit before you sell. Call the register of your original investment and play with the house money, or close your position and enjoy your winnings.
Finally, the last deadly sin that Cramer sees on Twitter haunts him for advertising a stock. “I would not recommend a stock just because you ask me to,” Cramer said. Being a smart investor means doing your homework, coming up with your own opinions and not committing sin # 2.
Cramer and the AAP team look at everything from earnings and customs to the Federal Reserve. Find out what they are telling their members of the investment club and join the conversation with a free trial subscription to Action Alerts Plus.
Do not miss Cramer best every day with fast, actionable strategies: Street Lightning. Today: What is Cramer optimistic about the return of sports?
Executive decision: PayPal
In his first segment “Executive Decision”, Cramer spoke with Dan Schulman, CEO of PayPal (PYPL) – Get report, the online payment powerhouse that just had earnings that included 50% revenue growth and helped propelled shares by 78% for the year.
Schulman said the pandemic has created an increase toward digital-first payments, making PayPal’s tools more relevant than ever. He said his company has redefined itself from just a “buy now” button to a leading platform of tools for our new digital economy. If you shop online and consume digital services, you need PayPal, he explained.
But PayPal is about much more than just online payments, Schulman added. In a recent survey, nearly 45% of consumers said they no longer want to handle cash, have to touch a keyboard or sign their name to make a purchase. These consumers want contactless, mobile payments.
PayPal is also at the forefront of the fight for racism, Schulman said. It’s not enough just to be about maximizing profits, he said. PayPal thinks about the communities it serves and nurtures the well-being of its employees and those communities. He said companies need to do more than just condemn racism, they need to help make the systemic changes needed to solve the problem.
Executive decision: Azek
In his second segment “Executive Decision”, Cramer also spoke with Jesse Singh, President and CEO of Azek (AZEK) , the construction company with shares that rose 4.5% Thursday after reporting its first earnings as a public company.
Singh said Azek saw strong demand everywhere, although many entrepreneurs were not allowed to work in some parts of the country. The pandemic has made the home more important than ever, he said, and addressing the exterior with high-quality materials is ultimately a big long-term bonus.
Azek has been building its brands for over 20 years, Singh said, and the company’s unique technologies have translated into many loyal customers. Despite all their successes, 80% of the decorative market is still wood, which remains the primary competitor.
On Real money, Cramer enters the companies and CEOs he knows best. Get more of his insights with a free Real Money trial subscription.
Executive decision: Five9
For his last segment “Executive Decision”, Cramer controlled Rowan Trollope, CEO of Five9 (FIVN) – Get report, the call center software provider that now trades for $ 10 less than last week when it reported strong earnings.
Trollope explained that Five9 is in the right place at the right time, and when the pandemic hit, cloud software vendors were the big winners from the work-from-home trend. He said their corporate market grew by 33% in the quarter as companies move fast to replace old systems with new cloud technologies.
Trollope also noted their recent partnership with AT&T (T) – Get report as a big win. He said the exclusive deal is moving very fast to bring new customers to the Five9 platform.
In addition to AT&T, Trollope said his company’s two biggest deals closed this quarter, and Five9 continues to have a very low churn rate. Customers want digital-first technologies and old vendors simply can not match Five9’s advanced cloud offerings as virtual assistants powered by artificial intelligence.
Take a signal from Apple and Tesla
Cramer is on a new crusade to help the individual investor. He urges companies with high dollar stocks to follow in Apple’s footsteps (AAPL) – Get report and Tesla and shared their stocks to make them more affordable.
Yes, it’s true that dividing a stock into smaller pieces creates zero value, Cramer admitted. But for the often irrational stock market, cheaper stocks are always better. In recent years, companies often shared their shares, usually with much fanfare, using the event as a sign of strength. But as larger institutional investors gained more power, companies have instead been urged to let their stock prices run to levels that cannot be achieved for more individuals.
But Cramer said any company with shares over $ 100 should follow Apple and Tesla’s lead and make their shares more affordable. If it really does not make any difference at all, why not do it? The market will reward you, Cramer said, just as it will reward Apple and Tesla.
Here’s what Jim Cramer had to say about some of the stocks that called offered during the Mad Money Lightning Round Thursday night:
FleetCor Technologies (FLT) – Get report: “I’m worried about their growth. Things are looking appalling.”
Opko Health (OPK) – Get report: “This has taken a big step and then retired. This is a great company.”
Tupperware (TUP) – Get report: “This stock was so wrongly priced. Take out your costs and let the rest run.”
Eventbrite (EB) – Get report: “I did not want to sell at this point. I just wanted to stick to it.”
Axcelis Technologies (ACLS) – Get report: “I like this stock.”
Search for Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.
To see replacements of Cramer’s video segments, visit Mad Money page on CNBC.
To sign up for Jim Cramer’s free Booyah! newsletter with all his latest articles and videos Click here.
At the time of publication, Cramer’s Action Alerts PLUS held a position in the AAPL.