Game plan: Cramer’s ‘Mad Money’ summary (Friday 3/5/21)

The ‘Goldilocks’ employment report has given investors the perfect opportunity to ease their positions and raise cash, Jim Cramer told his Mad Money viewers on Friday. But do not be fooled, he warned, interest rates and the bond market are still in control of where stock prices are next.

Cramer’s game plan for next week’s action is keeping an eye on the bond market, as any additional interest rate hikes could derail any gains on the stock market. Cramer’s other eye will be on Stitch Fix (SFIX) – Get report Monday. He expects another better quarter than expected from this online retailer.

Cramer focuses Tuesday on another retailer, Dick’s Sporting Goods (DKS) – Get report, which is ready to pull together as team and youth sports return after a year-long hiatus.

Next Wednesday we get earnings from Campbell Soup (CPB) – Get report in Oracle (ORCL) – Get report. Cramer said packaged food these days may not impress Wall Street, even with a 3.2% dividend yield, but Oracle is just the low-risk technology stock investors are looking for.

Thursday earns earnings from two more retailers, JD.com (JD) – Get report and Ulta Beauty (ULTA) – Get report. Cramer is looking for strong results from both companies, especially longtime fav Ulta.

Finally on Friday, AT&T (T) – Get report will hold an analyst day, but Cramer said he will not be a buyer. The troubled telecommunications agency may have an attractive dividend yield, but its shares are still declining, erasing profits.

Cramer and the AAP team look at everything from earnings and rates to the Federal Reserve. Discover what they’re telling their investment club members and start the conversation with a free trial entry on Action Alerts Plus.

Executive decision: Octa

In his first “Executive Decision” segment, Cramer spoke with Todd McKinnon, president and CEO of cybersecurity giant Okta (OKTA) – Get report, 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 of more than $ 800 million for the year. The markets for cyber security and identity management are huge, he added, and there is still plenty of room for growth.

Pace noted that the world is run by software and that every company becomes a software company. This means that there is a growing need for developer tools that make the lives of developers easier and faster, which Auth0 offers.

Asked why Okta should acquire Auth0, McKinnon explained that the companies are complimentary. He said the staff member identity market is worth $ 30 billion, but managing client IDs, where Auth0 excels, adds another $ 25 billion.

You have to assume that the bad guys are everywhere, McKinnon concluded, and therefore the combination of Okta and Auth0 can quickly and safely verify every user, every machine and now every customer.

Executive Decision II: Trex

In his next exclusive “Executive Decision” segment, Cramer spoke with Bryan Fairbanks, president and CEO of composite tire manufacturer Trex. (TREX) – Get report. Shares in Trex have risen 63% over the past year as people scrambled across the country to upgrade their homes and backyards amid the pandemic.

Fairbanks said Trex’s primary competitor is still wood, which makes up 78% of all tires in America. There is enough space for all players, he added when asked about rival Azek (AZEK) .

Wood is not as environmentally friendly as you might think, Fairbanks explained. Pressure-treated wood contains many chemicals and the product only lasts 10 to 15 years. At the end of its life, all the chemicals end up in the soil again.

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

Trex is now available at more than 6,700 locations across the country. The business caters for both contractors and the do-it-yourself homeowner who are looking for excellent cover materials.

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 report. Shares in Nutanix fell 25% earlier this year.

Ramaswami said that Nutanix addresses the two most important issues of companies today, digitization and dealing with a remote workforce. The company’s virtual desktops and cloud platforms are perfect solutions for both of these needs.

Asked about investors’ concerns about the company’s revenue, Ramaswami explained that Nutanix, like many other companies, including Adobe Systems ADBE, is transitioning from selling hardware devices to subscriber software. As their renewal business begins, the revenue will grow the company again.

Finally, when asked about the red-hot topic of safety, Ramaswami noted that Nutanix is constantly building new safety features in their products. Some of their latest offerings help detect and stop ransomware detection.

On Real money, Cramer joins the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

No Huddle Offense

In his “No Huddle Offense” segment, Cramer said in such volatile markets, your biggest enemy could be your fellow shareholders. Take Costco (COST) – Get report, the retailer that just posted mixed results, which includes 15% same sales growth. Costco is a buy in Cramer’s book with $ 70 lower than shares.

But for the homeowner who buys on margin or if the hedge fund manager has to raise cash to cover redemptions, Costco is not a company with a good foundation and a low share price, but only a source of funds. These shareholders cannot be counted on to respond to good earnings, Cramer said, making investment much more difficult than it used to be.

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