Engines of Innovation: Cramer's 'Mad Money' Recap (Wednesday 1/13/21)

Rather than dwell on the negativity, Jim Cramer told his Mad Money viewers Wednesday that he’s choosing to focus on the positives, including opportunity, ingenuity and innovation.

Cramer explained that Wednesday, he was able to get the first of two COVID vaccines. He described the relief and elation of everyone in line to finally take the first step in putting this pandemic in the rearview mirror. Every day, more people will be vaccinated, Cramer said, and the feeling of optimism will grow.

Despite reports to the contrary, the U.S. doesn’t have a vaccine shortage. What we have, Cramer explained, is a supply chain problem that prevents doses from being administered quickly. But under a Biden administration, the U.S. military could be deployed to every high school in the country, as they were with polio vaccines, to get the job done quickly.

In the meantime, there is no shortage of bright spots in the stock market, especially in the science and innovation space. Cramer singled out vaccine maker Moderna (MRNA) – Get Report as one such bright spot. Shares of Moderna have rallied 512% this year. Advanced Micro Devices (AMD) – Get Report is also a winner in innovation, forcing rival Intel (INTC) – Get Report to again change its leadership in order to compete. Finally, there’s Plug Power (PLUG) – Get Report, a company pushing hydrogen power to the tipping point where it is competitive with natural gas.

All of these stocks have seen huge gains in recent months, Cramer noted, and with the world getting brighter every day, these opportunities are getting brighter as well.

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Executive Decision: Lion Electric

In his first “Executive Decision” segment, Cramer spoke with Mark Bedard, co-founder and CEO of Lion Electric, the electric truck and bus maker that will soon be coming public via a reverse merger with a special purpose acquisition company. Shares will trade under the ticker LEV.

Bedard said that unlike many EV makers, Lion is not an overnight success. He said they’ve been developing their products for 12 years and are now producing quality electric trucks and buses that offer significant cost savings to their customers.

Lion currently has 300 electric school buses on the road with over six million miles driven, Bedard explained. He added that incoming President Joe Biden hopes to convert 500,000 buses to electric. Lion also has a commitment from Amazon (AMZN) – Get Report for up to 2,500 electric delivery vehicles over the next five years.

When asked about competition, Bedard explained that Lion is focused on urban vehicles traveling less than 250 miles. He said the EV market is big enough for many players to win.

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Executive Decision: Zoetis

For his second “Executive Decision” segment, Cramer also spoke with Kristin Peck, CEO of Zoetis (ZTS) – Get Report, the drugmaker specializing in pets with shares up 18% over the past year.

Peck explained that with the pandemic, pet adoption has risen by 15%, and with so many people spending more time with their pets, they’re noticing their pets’ medical needs more than ever. Zoetis has over 200 product lines across eight species. And 13 of those product lines account for over $100 million in annual sales.

Peck noted that Zoetis is also seeing strength in their live stock business, especially internationally. China, in particular, she said, saw sales up 30% as the country recovers from a swine fever epidemic. China is also seeing an increase in pet adoption.

Executive Decision: TG Therapeutics

For his final “Executive Decision” segment, Cramer checked in Michael Weiss, executive chairman and CEO of TG Therapeutics (TGTX) – Get Report the biotech with shares up 305% over the past year. TG Therapeutics just presented at the annual JP Morgan Healthcare Conference.

Weiss said TG is about to have their first watershed moment, with a drug approval slated for Feb. 15. After that, his company expects another approval coming in June and potentially their leukemia drug being approved before the end of the year.

When asked about competition, particularly in the multiple sclerosis arena, Weiss explained that while the total market for MS is $25 billion, the subset they focus on represents only $10 billion. In that subset, there are only two competitors, and it’s important for patients to have new treatment options.

Turning to the topic of capital, Weiss said that TG has been very fortunate to have access to the capital markets. He said TG does not need additional financing to achieve their goals or execute on their plan.

Stick to Your Investing Convictions

In his No-Huddle Offense segment, Cramer reminded viewers that discipline must always trump conviction. That means taking profits and locking in your gains, even when your conviction is telling you to let it ride.

Cramer explained that younger investors, many of whom began trading over the past nine months, have known nothing but gains and big wins. But while stimulus checks and commission free trading have made investing engaging and fun, things can’t always be this good. And when the tides turn, investors need to be ready, with cash on the sidelines from the profits they take today.