Last week, Jim Cramer held his annual draft stock of fantasy, and the host "Mad Money" was helping investors scan the "waiver wire" market to find some bargains.
"Those are some real fantasy football gibberish which means trying to pick up some bargains, players who are not signed by other teams that have been interesting prospects or driven away and maybe they aren't. should ”Cramer said Wednesday.
In addition to Okta, Now Services and Salesforce. com, which he also chose last week, here are the new companies that Cramer thinks investors will add to their portfolio after Week 1:
The giant Starbucks giant is down more than 5% since Thursday, closing at 90.98 on Wednesday. Its stock was hurt by comments last week from CEO Kevin Johnson, who said next year's fiscal revenues would see slower-than-expected growth due to the one-time tax benefit is boosting revenues in 2019, and by way of a Security and Exchange Commission inquiry into
But Cramer is not concerned about any of these developments, saying Johnson's comments are not is important because the company's "revenue growth model is incomplete."
The SEC issue "is no burger. It's simple and simple," Cramer argued.
"About 200 other companies have been flagged. It's a routine accounting question in an industry. Only Starbucks has made headlines," Cramer said.
All told, it makes Starbucks a good snag off the waiver wire, Cramer said.
The stock of software company VMWare, which closed at 154.43 on Wednesday, has declined nearly 25% since its 2019 high of 205.52 on May 16th.
But Cramer says he has renewed confidence in Palo Alto, a California-based company, in part because COO Sanjay Poonen explained to "Mad Money" on Tuesday how it could benefit recently.
VMWare, a cloud virtualization company, acquired cybersecurity firm Carbon Black and Pivotal, which has products to help companies create and install their software on other & # 39; server. The acquisitions cost $ 4.8 billion.
"I was skeptical given that Pivotal seemed like a castoff from VMWare's parent company Dell. But Poonen changed my mind" Cramer said. "I also believe that the Dell-Crowdstrike relationship has been severely crushed by the acquisition of Carbon Black. No wonder RMWare has traded more than one buck today." "Mad Money" last week, and after reflecting on what was heard, Cramer said he sees a strong investment opportunity.
"I believe we get a chance to buy that one at a fantastic bargain," Cramer said. "Spunk is a core play of data analytics that helps clients reap actual insights from machine data. And in a world where Salesforce.com wants to buy Tableau Software, if this matters just stick to it, Spunk can make a ton of sense as a takeover target, ”Cramer said.
Splunk, which focused largely on big data analysis, saw the stock fall nearly 20% from the high of 2019. It sat at 113.89 after closing Wednesday, down from 140.73 on July 26.
"Splunk is for real and this stock market is acting as if it were fake," Cramer added.
Cramer offered two more companies that would make sense as long as the waiver-wire choices were not possible: Shopify and Chipotle.
Cramer commends Shopify for its recent acquisition of the 6 river startup warehouse for $ 450 million. It is expected that Shopify will be second behind Amazon for US e-commerce.
“But the stock is in a downtrend – it has given it 70 straight points – and who knows when it will be found.” Cramer said, noting that its stock picked up $ 10 on Wednesday.
As for Chipotle, Cramer said because it was the top performer in the S&P 500 yet to hit a wall due to the stock market rotation, "it depends on the fear of people going on for reasons. of denial. "
" But nothing, "said Cramer, also adding Chipotle was caught in the same SEC prosecution as Starbucks.
In fact, it's business. seems to be accelerating, Cramer said.
"When you get a chance to buy the best of the best at almost 10%, it's like stamping a wide receiver for a week," Cramer said.