Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday, September 13.
Cramer called a lot of stock picking days as mundane, but Wednesday was a different day. He liked what Apple (NASDAQ:AAPL) had to showcase. "There are a lot of things that can drive a stock higher, but if you want to know what produces massive multi-year gains, it's sustained, revolutionary innovation like what Apple just gave you. When you look at the new phone and the new watch, you realize that Apple's trillion-dollar valuation is indeed deserved. In fact, it could be worth a lot more than that if I am right about the revolution that this great company unleashed in yesterday's product introductions," said Cramer.
He spoke about company's brilliant ecosystem and the service stream revenues that are like the razor-blade models that people keep purchasing. He was especially excited about the Apple Watch, which had some revolutionary features like real-time health kit complete with a heart rate tracker, an FDA-approved electrocardiogram, a tool that detects a heart condition called atrial fibrillation and an emergency feature that detects when you fall down.
It's a great device for the old generation and it's a new customer base for Apple. "As we get older, these health monitors become necessities. And for the elderly or your elderly parents or your grandparents, you're now being foolish if you don't get one of these devices that we just saw yesterday. I think we should get a break on our health insurance premiums if we wear the new Apple Watch. I think your cardiologist will insist on getting it," he added.
The semiconductor companies had been delivering innovation until some time ago, but they have now got down to just iterative upgrades. What the likes of Apple and Alphabet (GOOG, GOOGL) deliver is innovation that investors are excited about.
CEO interview - AeroVironment (NASDAQ:AVAV)
The stock of AeroVironment has doubled since Cramer recommend it last October. The company reported a massive earnings beat and is the next frontier for 5G connectivity. Cramer interviewed President and CEO Wahid Nawabi to find out what lies ahead.
Nawabi said that they have refocused the company by divesting its electric vehicle charging business to focus on high-growth areas. It is now a pure play on unmanned aerial systems that combine robotics, software, sensors and connectivity solutions for military and commercial applications. He also showed that the company's new newest drones can be launched from a submerged submarine providing an undetectable eye. He adds that its aerial products are unrivaled.
The company has partnered with SoftBank (OTCPK:SFTBY, OTCPK:SFTBF) to develop and demonstrate a stratospheric airplane that is powered 100% by solar power energy. "It's going to fly on the edge of the atmosphere. The mission? To bring fifth-generation internet connectivity to the entire world. AeroVironment has decades of expertise here. And it's going to beam 5G IoT connectivity for the 7 billion people around the world," said Nawabi.
As the Street has stopped fretting about the trade war, the railroad stocks are getting the credit they deserve. The stocks of top 4 railroad players are up double digits since June: CSX Corp. (NYSE:CSX), Norfolk Southern (NYSE:NSC), Kansas City Southern (NYSE:KSU) and Union Pacific Corp. (NYSE:UNP).
"The fact that the rails have suddenly caught a bid is not just a big deal for this one industry, it's a big deal for the entire market. I think the rails are benefiting from a sense that the trade war will hurt less than many of the experts initially feared," Cramer noted. The railroad stocks tend to tally in sync, which is often seen as a litmus test for the strength in the economy.
Despite the run, the stocks trade between 16-18 times earnings and look cheap. Cramer thinks they have more room to run, and he likes Union Pacific the most.
Off the tape
Cramer went off the tape to review the privately held Barstool Sports. It's a growing media empire that talks about things people like in innovative ways and deliver something different and entertaining. He interviewed the company's Pizza review app "One Bite" CEO Erika Nardini and Barstool Sports founder Dave Portnoy.
"Dave likes to talk about pizza, so that's really where it started, where Dave was doing pizza reviews that were getting hundreds of thousands, if not millions, of views," said Nardini. One Bite saw 70,000 downloads on the first day, growing to 125,000 by the second day.
"He walks down the street and he's the pizza guy. And what people asked him about was, 'How can I find all the pizza places?' We're helping people discover pizza. There's no uniform database for pizza in the U.S. Why shouldn't that be from us?" Nardini said.
Barstool now has the number 1 show on Snapchat and Instagram.
Viewer calls taken by Cramer
Procter & Gamble (NYSE:PG): Cramer thinks the earnings are underestimated and the company has a good yield. Don't sell it.
Altria (NYSE:MO): Cramer doesn't recommend tobacco stocks. In response to the viewer's call about tobacco companies taking exposure to cannabis, he said he thinks it's better to stick with Constellation Brands (NYSE:STZ).
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Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.