The second deadly sin is not knowing what a business 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 go away.Twitter Deadly Sin # 3: Buying Non-Tesla Electric Vehicle Stock (TSLA) – Get the report. Cramer said to stop looking for the next Tesla, just own Tesla, the only electric vehicle maker that actually sells cars.Sins # 4 and 5 buy low dollar stocks and buy penny stocks. No stock falls below $ 10 a share because things are going well, Cramer said, and penny stocks are the riskiest investments.
Sin # 6 does not profit. Cramer reminded viewers that you don’t have a profit until you sell. Ring your initial investment ledger and play with the house money, or close your position and enjoy your win.
Finally, the latest deadly sin Cramer sees on Twitter is heckling to promote action. “I won’t recommend an action just because you ask me to,” Cramer said. Being a smart investor means doing your homework, forming your own opinion, and not committing sin # 2.
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Executive decision: PayPal
In his first “Executive Decision” segment, Cramer spoke with Dan Schulman, Chairman and CEO of PayPal (PYPL) – Get the report, the online payments central that just posted earnings including 50% revenue growth and helped push stocks up 78% for the year.
Schulman said the pandemic has created a push towards digital payments, which makes PayPal’s tools more relevant than ever. He said his business has redefined itself from a simple ‘buy now’ button to a leading tools platform for our new digital economy. If you shop online and use digital services, you need PayPal, he explained.
But PayPal is more than just online payments, Schulman added. In a recent survey, nearly 45% of consumers said they no longer want to deal with 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 racial justice, Schulman said. It is not enough to maximize profits, he said. PayPal cares about the communities it serves and cares about the well-being of its employees and those communities. He said businesses need to do more than condemn racism, they need to help make the systemic changes needed to solve the problem.
Executive decision: Azek
For his second “Executive Decision” segment, Cramer also spoke with Jesse Singh, Chairman and CEO of Azek (AZEK) , the building materials company whose shares rose 4.5% on Thursday after posting its first results as a public company.
Singh said Azek saw high demand across the board, although many entrepreneurs were not allowed to work in certain areas of the country. The pandemic has made the home more important than ever, he said, and approaching the exterior with high-quality materials that last is a big bonus in the long run.
Azek has been building its brands for over 20 years, Singh said, and the company’s unique technologies have resulted in many loyal customers. Despite all their success, 80% of the terrace market remains wood, which remains its main competitor.
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Executive decision: five9
For his latest “Executive Decision” segment, Cramer checked on Rowan Trollope, CEO of Five9 (FIVN) – Get the report, the call center software provider that is now trading 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 providers were the big winners in the work-from-home trend. He said the enterprise market grew 33% in the quarter, with companies moving quickly to replace existing systems with new cloud technologies.
Trollope also noted their recent partnership with AT&T (T) – Get the report like a great victory. He said the exclusive deal is moving very quickly to attract new customers to the Five9 platform.
Beyond AT&T, Trollope said his company’s two biggest deals closed this quarter and Five9 continued to have a very low churn rate. Customers want digital technologies, and existing vendors simply cannot compete with Five9’s advanced cloud offerings, such as virtual assistants powered by artificial intelligence.
Get inspired by Apple and Tesla
Cram is on a new crusade to help the individual investor. He urges companies with high value-added stocks to follow in Apple’s footsteps (AAPL) – Get the report and Tesla and divide their stocks to make them more affordable.
Yes, that’s right, breaking up a stock into smaller chunks doesn’t create any value, Cramer admitted. But for the often irrational stock market, cheaper stocks are always better. In years past, companies often split their stocks, usually with great fanfare, using the event as a sign of strength. But as larger institutional investors gained power, companies have instead been urged to let their stock prices rise to levels that are inaccessible to more individuals.
But Cramer said every company with shares over $ 100 should follow Apple and Tesla’s lead and make their shares more affordable. If it really doesn’t make a difference, why not do it? The market will reward you, Cramer said, just as it rewards Apple and Tesla.
Here’s what Jim Cramer had to say about some of the actions that callers offered during the Mad Money Lightning Round on Thursday night:
Technologies FleetCor (FLT) – Get the report: “I am concerned about their growth. Things seem unstable. ”
Opko Health (OPK) – Get the report: “It had a big move and then backed off. It’s a big business. “
Tupperware (MOUTON) – Get the report: “This stock was so badly valued. Cut your costs and let the rest flow. ”
Eventbrite (EB) – Get the report: “I wouldn’t be selling at this point. I would just hang on to it. “
Technologies Axcelis (ACLS) – Get the report: “I like this stock. ”
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At the time of publication, Cramer Action Alerts PLUS held a position in AAPL.