When stocks reversed course and fell on Friday after President Donald Trump doubled down on his call to place tariffs on Chinese goods, CNBC’s Jim Cramer offered investors some advice on how to approach the trade debacle.
“You need to realize the president doesn’t want China to talk. He wants China to cave,” the “Mad Money” host said. “You should never believe we’re going to make a deal with the Chinese unless you’re hearing it from an outspoken protectionist like Peter Navarro, the president’s top trade advisor.”
For now, tariffs and trade news remain the stock market’s main drivers, Cramer said. And those who are invested in the stock market need to resist the euphoria brought about by news of resuscitated trade talks.
“Please, let’s learn from today,” he said. “Don’t be taken in the next time Treasury Secretary [Steven] Mnuchin makes it sound like we’re making progress with China. Mnuchin’s not in charge.”
In other words, until the U.S.-China trade spat officially ends, the president will likely use strong economic results to push his hawkish tariff agenda, so investors should be prepared for the associated declines.
With that strategy in mind, Cramer turned to his game plan for the week ahead. Find it here.
Wingstop has plans to take the world by storm, and despite some recent analyst downgrades, Cramer is inclined to get behind the growing restaurant chain.
“Management’s got a plan for world domination, and who am I to disagree with them?” Cramer said on Friday. “They already have a pipeline of 600 international locations lined up in 13 countries. That’s huge. Right now, Wingstop only has about 1,100 locations total.”
But not everyone agrees with Cramer’s assessment. Last week, a BTIG analyst downgraded Wingstop’s stock to “hold” from “buy.” Goldman Sachs analysts followed with a similar downgrade this week.
The take-downs sent shares of Wingstop, up 82 percent for 2018, down roughly 6 percent from their recent highs. So, to try and pare investors’ concerns about whether or not to take profits, Cramer reminded them of the bull case.
Find his analysis here.
Cramer’s head is spinning, and not from secondhand smoke.
“The normalization of weed is happening so fast it makes my head spin,” the “Mad Money” host said on Friday. “It’s not just that Canada and a host of states have outright legalized pot. It’s that marijuana’s gone mainstream.”
Cramer’s epiphany came when Brian Athaide, the CEO of Canadian cannabis player Green Organic Dutchman, took the helm of the company after 25 years at Procter & Gamble, which Cramer called “the most mainstream company on earth.”
“I can’t even explain how incongruous this is,” he said. “A P&G executive in the marijuana business? A year or maybe two years ago, I would’ve told you that sounds about as plausible as ‘Cheech & Chong join the DEA’ or ‘Harold & Kumar go to Breakfast at Tiffany’s.'”
But with Canada approving full legalization of recreational marijuana use, a move set to go into effect in mid-October, Athaide calculated that “the opportunity was just too great,” the “Mad Money” host said.
Risks still remain when it comes to the investable portion of the marijuana market, however.
Get Cramer’s caveats about the industry here.
Cramer also heard from Boot Barn President and CEO Jim Conroy on how his work-and-Western apparel retailer is wrangling its $20 billion addressable market.
“It’s a huge industry,” Conroy told Cramer in an exclusive interview. “It’s been hidden in plain sight for decades, and we now have the opportunity to just continue to expand across the country.”
Boot Barn sells its wares online — making it something of a challenger to the all-encompassing Amazon — but Conroy said the magic really happens at its 233 physical locations.
“Amazon’s an incredible competitor,” he said. But “our stores business is much bigger and much more vibrant than the online business. And for us, I think when people want to buy a $300 Western boot, they want to make sure it fits, so they come to the store and they want that expertise, they want the authority of a lifestyle brand. And if they do go online … for our product, many of our vendors sell more product to us than they do to Amazon, so we’re actually bigger than Amazon in many cases.”
To watch Conroy’s full interview, click here.
Next year, Broadridge Financial Solutions CEO Richard Daly will hand the reins of his fintech giant over to his successor, current COO Tim Gokey, and he couldn’t be more confident in his decision.
“Tim’s the real deal. We got this right,” Daly told Cramer on Friday in a joint interview with Gokey. “Tim joined us, he led the turnaround of our capital markets and solutions segment, and he’s checked the box every step along the way.”
The next leg for Broadridge? Gokey said that under his leadership, the financial services company would chase “big opportunities in extending the franchise we have in governance, … in how we can help our global capital markets clients, simplify and improve their technology infrastructure, and really, how we help wealth management firms in this country address the challenges that they’re going to have also as things evolve.”
And, Daly said, Broadridge is taking a bullish long-term view on blockchain technology, a digital record-keeping system that the outgoing CEO said “will make our world better.”
“Think of it as being like the internet on steroids with security,” Daly said. “We will lead in those activities. We’ve invested over $150 million into blockchain so far. We’ve rolled out, under Tim’s leadership, proxy in the U.S., proxy around the globe, and on top of that, it’s digital as well, because we want to get your listeners, the retail investors we both care so much about, the ability to give them the information they want in a digital format and make them better informed with less work on their part.”
Watch Daly and Gokey’s full interview here.
In Cramer’s lightning round, he zoomed through his take on callers’ favorite stocks:
3D Systems Corp.: “I went through that conference call. That was a great quarter. It took people by surprise. It was really good. I’ve been recommending HPQ as a way to do it, but – it’s the first time I’ve ever said this – I actually think that 3D might be investable. I really didn’t think it was before.”
Owens Corning: “It’s going to be a rough slog. Why is it a rough slog? Because of the fact that it’s related to housing. And I don’t mean to conflate human life and money, but you know what? You may get bailed out of here because of the hurricane. That’s what would do it.”
Disclosure: Cramer’s charitable trust owns shares of Amazon.
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