The Trump Rally Is Not Over - Cramer's Mad Money (11/21/16)

by: SA Editor Mohit Manghnani


Randgold Resources CEO Mark Bristow is bullish on gold.

The mall is not dead.

Cramer suggested buying United Continental on a pullback.

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday, November 21.

FANG stocks and oil rallied at the same time on Monday. This is a rare occurrence, in Cramer's opinion. President-elect Trump's victory caused money to shift out of technology growth stocks into bank and drug stocks. "The growth stock sell-off made sense when it seemed like there was no new money coming in. But we now have a host of sources showing that cash is flooding into the market, and when that money comes in, it flows to stocks like FANG and the much-maligned Apple (NASDAQ:AAPL)," said Cramer.

Diamondback Energy (NASDAQ:FANG) stock also rallied. President Obama has played a key role in fighting climate change, which means fossil fuels and pipelines companies will not prosper. Trump, on the other hand, is pro-fossil fuels. "He wants to build more pipelines and drill as much as possible. And while that is probably bad news for polar bears, it is great news for the oil stocks," said Cramer.

Hence, Monday was a day when both tech growth stocks and fossil fuel stocks rallied. "That is proof of more money coming in, it is proof of a better attitude toward the asset class known as stocks. The Trump rally is still not over, it is just morphing into another form of a bull," he added.

CEO interview - Randgold Resources (NASDAQ:GOLD)

Randgold Resources is Cramer's favorite gold miner, whose stock is up 20% for the year. The Mad Money host interviewed CEO Mark Bristow to know his views on gold.

"There are a lot of things impacting gold at the moment. I have always said that gold will be very volatile for the next two or three quarters, but ultimately, the fundamentals are very strong for a rise in gold price," said Bristow. Gold prices went up on Brexit panic and uncertainty regarding the American election. After President-elect Trump's victory, gold has been hit hard, as the stock market has rallied.

Bristow said that as Trump plans to raise spending, it will lead to government borrowing, which will lead the economy to accelerate and inflation to rise. When inflation rises, people buy gold. "No one expected the outcome of the American elections, and that has created a lot of confusion, and the market is trying to find its way," he added.

Management has provided a bullish long-term outlook for gold, and it also spent less money to produce gold in the last quarter. "We focus on value, and I think what keeps us disciplined is that focus on profitability. You know that we are the only gold miner that is never impaired. We have never cut our capital, we have never cut our expiration budget, and neither have we retrenched our workers because of a lower gold price," he added.

Cramer reiterated his buy call on the stock.

CEO interview - Align Technology (NASDAQ:ALGN)

Align Technology is the medical company behind Invisalign, the clear and removable dental braces. It also sells mobile scanning system that eliminates the need for dentists to take impressions of teeth. The stock is up 46% for the year, and the company had a great quarter overall. Cramer interviewed CEO Joe Hogan, who is eyeing the Indian market to expand.

"We are going city by city, which you have to do in India, and we are recruiting about 50 to 60 orthodontists per city. And then we begin social media, and then the broader advertising campaign," said Hogan.

He added that more orthodontists now see going digital as the future and Invisalign products are superior to traditional braces. Align's products are suited for 60% of all orthodontic applications, and Hogan said the upcoming products will raise that number to 80%.

Align is expanding internationally, and Spain remains one of its hottest markets.

The mall is not dead

While many say the mall is dead, earnings of The Children's Place (NASDAQ:PLCE) shows a different picture, as the stock rallied 13% on earnings day and is up 83% for the year.

The children's retailer has been trading sideways from 2012 to 2015, but after activist investors took control of two seats on the board, there has been a terrific turnaround. The underperforming locations have been shut, inventory has been reduced and the company has become less promotional, all of which have led to higher margins and strong e-commerce sales.

The company is expanding internationally and modernizing its technology. Management said on the conference call that they were able to deliver good results despite macroeconomic issues, and that the company will get stronger as things improve.

Cramer thinks the stock has more room to run.

Viewer calls taken by Cramer

Energy Transfer Partners (NYSE:ETP): Sunoco Logistics Partners (NYSE:SXL) buying ETP will be bullish for Energy Transfer Equity (NYSE:ETE).

JetBlue Airways (NASDAQ:JBLU): Southwest Airlines (NYSE:LUV) will rally further. Cramer likes United Continental (NYSE:UAL) on a pullback.


Jim Cramer's Action Alerts PLUS: Check out Cramer's multi-million dollar charitable trust portfolio and uncover the stocks he thinks could be HUGE winners. Start your FREE 14-day trial now!

Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.