Dow futures power higher as stocks move higher as potential breakthroughs in Brexit negotiations and stimulus talks spur bulls as U.S. vaccine rollout begins.
In the last episode of Mad Money, Jim Cramer said while the major averages made today’s trading look rather benign, under the covers, it was a tumultuous session with wild cross-currents.
TheStreet’s Katherine Ross and Cramer are talking about buying Lululemon and Costco, and investing in Bitcoin.
Lululemon Stock: Buy or Sell?
Lululemon (LULU) – Get Report shares were falling 0.97% in pre-market trading Friday to $365.50 despite the upscale athleisure retailer reporting third-quarter results that topped analyst estimates for the period.
Cramer said that this was an amazing quarter and that he has liked Lululemon for a long time. He thinks that Lululemon is a buy because it’s down too much.
Costco Stock: Buy or Sell?
Costco shares wavered after hours on Thursday after the membership-based warehouse retailer reported first-quarter results that topped analyst estimates.
For the quarter ended Nov. 22 the Issaquah, Wash., company reported adjusted earnings of $2.29 a share compared with the consensus estimate of $2.09 a share in a FactSet survey. Revenue of $43.21 billion beat the estimate of $43.08 billion.
First-quarter comparable sales rose 15.4% against the FactSet call for 15.3%.
Cramer said that the right time to buy Costco is now because their quarter earnings were “amazing.” He said that people aren’t dining or traveling and so a lot of money is coming into Costco.
He added that Costco will maintain good numbers because they are representing a great value and they have the club card which they can make a lot of money from.
“They have potential to expand “because there isn’t a town that doesn’t want Costco around,” Cramer said.
Advice for Bitcoin Buyers
Last month, the Bitcoin juggernaut keeps running, with the digital currency hitting a new record high as frenzied investors grab for a piece of the pie.
Bitcoin recently traded at $19,688, up 1.83%, and touched a high of $19,737 earlier Monday. The previous all-time peak was $19,511, reached in December 2017. Bitcoin has soared 73% year to date.
The currency has gained credibility recently from the endorsements of PayPal (PYPL) – Get Report, Square (SQ,) – Get Report and money managers Bill Miller, Paul Tudor Jones, and Stanley Druckenmiller. Enthusiasts argue that bitcoin is a store of value and a hedge against inflation and a falling dollar.
Cramer said that investors should diversify in all sorts of assets and Bitcoin is one of those assets. He added that before buying Bitcoin, investors should know its history including how it became popular at some point and made a lot of money.
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