Bad News Is Not Affecting Stocks – Cramer's Mad Money (11/28/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Tuesday, November 28.

Government shutdowns are synonymous with market falling down, and so is the news of North Korean missiles. “The market refuses to be brought down by news that would’ve crushed us at almost any other time in history,” the Mad Money host said.

If that weren’t enough, Wells Fargo (NYSE:WFC), which needs higher interest rates to grow, still went up despite fewer rate hikes in the near future. Western Digital (NYSE:WDC) was downgraded, and yet the tech sector did not go down, despite chip makers being down. As Tech Data (NASDAQ:TECD) reported strong earnings and rallied 10%, the tech sector went up with it.

Even restaurant stocks went up as Buffalo Wild Wings (NASDAQ:BWLD) is being acquired. General Electric (NYSE:GE) is bottoming, as higher oil prices are good for the company.

“The bottom line? If you’re waiting for stocks to get obliterated by the bad news out of Washington or out of Korea or out of Main Street or out of retail or negative analyst calls and correlations that have produced so many past declines, I say don’t hold your breath. The mighty still stand tall and show no signs of tumbling. That’s how strong this market really is,” concluded Cramer.

CEO interview – Thor Industries (NYSE:THO)

The stock of Thor Industries rallied 10% after reporting strong earnings. The stock of the recreational vehicle maker is up 36% for the year, and Cramer interviewed president and CEO Bob Martin to know what lies ahead for the company.

“It’s the change of lifestyle, it’s a younger demographic, it’s an industry that’s really reaching this younger buyer. We’re probably still ahead of the millennials, but Gen X, Gen Y, and we’re starting to talk to the millennials,” said Martin. Consumers are turning towards the RVs, which have amenities like large refrigerators, televisions and Wi-Fi.

“It’s this change of lifestyle that you can use an RV to not just go to a campground, but go to a kid’s game for baseball, soccer, lacrosse, concerts. It’s a lifestyle piece,” he added. After a certain age, campers appreciate conveniences like a soft bed, air conditioning and home-like comforts.

Martin spoke about competition from Winnebago (NYSE:WGO) and said that Thor derives 75% of its sales from travel trailers, while Winnebago is about motorized units. Cramer thinks Thor has more room to run.

Off the charts

Cramer went off the charts to review Square (NYSE:SQ) and Allergan (NYSE:AGN), both of which have fallen, to find out if they are a bargain with the help of technician Tim Collins.

Square was one of the hottest stocks in the tech sector, but it got hit after the downgrade. “When a stock that’s speeding down the highway slams right into a retaining wall, you don’t buy it hand over fist at the first sign of stabilization like we had today. That’s too risky. First, you need to take a step back. Consider the carnage,” said Cramer.

Collins found Fibonacci sequences that signal Square could fall as low as $32. There are strong levels of support at $35 and $38. “Collins is absolutely not saying that Square is going to $35. For all we know, the stock actually may have bottomed today and is part of a longer term move higher. But if this bounce turns out to be short-lived and this stock gets pounded again, these are the levels Collins thinks you should watch,” added Cramer. Square has room to fall, and it may not be a bargain at current prices.

Allergan has fallen too, from $300 two years ago to $172 now. It has become a hated stock on the Wall Street, but Collins said the charts signal a strong rally every time the stock falls below the Bollinger bands. Allergan could go up as much as 15%.

CEO interview – Palo Alto Networks (NYSE:PANW)

The stock of Palo Alto Networks went up on strong earnings and guidance. Cramer interviewed president and CEO Mark McLaughlin to learn about his take on cybersecurity.

McLaughlin said that cybersecurity is a need not only for governments, but companies and individuals alike, and hence the company is growing at a rapid pace. He sees the government spending on cybersecurity, which is an integral part of Palo Alto’s business.

“The federal sector’s been a really good customer base for us, not surprisingly given their mission and how we can help them fulfill that mission. We have seen in the Fed space, for a while, some anxiety because there’s been a lot of open seats in the administration, so spending decisions have been taking a while. But we’ve seen a return to normalcy there, which is great for us and all the other companies,” said McLaughlin.

He adds that technology gives a lot of productivity gains but also makes everyone vulnerable to hacks, and that’s why data protection is important. Cramer is bullish on the stock.

Viewer calls taken by Cramer

National Beverage Corp. (NASDAQ:FIZZ): There is a big short-squeeze. Younger investors can take a chance on the company.

Baozun (NASDAQ:BZUN): The company’s quarter was good, and the stock is a good buy under $30.

Pitney Bowes (NYSE:PBI): Its yield looks like a red flag. Don’t buy.


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