“When you get a situation like Monster where a stock keeps getting mauled by the bears, but a couple of heroic analysts remain bullish, that’s not a fight you want to be involved in,” the “Mad Money” host said. “Believe me, there are lots of easier ways to make money.”
Shares of Monster Beverage have run more than 10 percent this year. That trails the S&P 500′s 13-plus percent gain, and the stock is nearly 5 percent under its price a year ago.
Credit Suisse and Morgan Stanley on Thursday offered dueling perspectives on the energy drink maker with the former putting faith in the company and the latter cutting numbers, Cramer noted.
“If the bulls at Credit Suisse turn out to be correct, well they’ll look like geniuses,” he said. “But there are very real worries here, which is why I am hesitant to stick my neck out on this one, especially with Monster selling at 24-times next year’s earnings estimates, much higher than the average stock. Not exactly a value play.”
Lyft’s $87 opening price is a “win for the system,” even though it may have been a loss for investors that were overeager, Cramer
“I cannot stress this enough: we’re at the start of an IPO season that looks on track to bring a trillion dollars’ worth of companies public,” the host said. “These deals will be the big story going forward.”
Next week, Cramer is anticipating retail data on Monday and March employment results on Friday. Earnings results from Walgreen's, Constellation Brands, and others will come in between those days.
Tim Sloan’s decision to step down as chief of Wells Fargo hinged in part on a looming congressional committee meeting on banks next month, Cramer said.
The top brass of the big banks will be in Washington, D.C., on April 10 for the House Committee on Financial Services hearing on banks. The committee, headed by Rep. Maxine Waters, would surely focus on Sloan, Cramer said.
“No matter what he said or did, the fact that he served as an executive at Wells Fargo under John Stumpf, now disgraced, meant that as far as Congress is concerned he’s guilty until proven guilty,” the “Mad Money” host said.
Stumpf was chairman and CEO of Wells Fargo when the embattled bank was fined $190 million after being accused of opening fraudulent accounts without their customers’ consent. Sloan, who served more than three decades at the firm in total, succeeded him as CEO in October 2016.
In Cramer’s lightning round, he ran through his reactions to callers’ stock questions:
Dell Technologies Inc.: “I think so. I thought [CEO] Michael [Dell] told a good tale. I put that in the bullpen for the club. I think that that is one terrific stock, and if it goes down after any of [the action] raising money for IPOs, well you know what, I’m gonna give it a double buy.”
AT&T Inc.: “I think AT&T is fine. I like it’s 6.5 percent yield. I think it can go up over time, but it’s no Verizon. Verizon is a better-run company. ”
HealthEquity Inc.: “I don’t know, I’m not there. I’d rather see you in Paychex. I think Paychex does a great job. ”
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