Cramer Remix: This heavily shorted stock deserves to go higher
Jim Cramer was in awe of how quickly Deere managed to transform itself, seemingly overnight.
The strong dollar stabilized and many agricultural commodities began to recover, but until recently, Cramer wasn't excited about Deere. It seemed that every time it reported, even when it had a good number, the conference call commentary would be so negative that the stock would tumble.
That all changed when Deere reported a stunningly strong quarter last Wednesday. Deere's two main divisions did better than expected, and it was clear that the company has done a better job of managing its inventory.
One aspect of the stock's explosive move was that it was a classic short squeeze, Cramer said. As of the end of October, it was the fifth-most heavily shorted stock in the S&P 500. So when Deere reported a good quarter, the short-sellers panicked and were forced to buy back the stock to cover their shorts.
"Short-squeeze or not, Deere has got a lot going for it now, and I wouldn't be surprised if the earnings estimates are still too low, which means the stock remains a buy if we get more weakness," the "Mad Money" host said.
Cramer and Wall Street agree on one thing — the Trump rally for the stock market must come to an end. The question is what will cause it to end, and when.
"I don't think it is over. It is just morphing into other areas not yet picked over, which is what happens when much of the has jaunted higher and the Russell 2000 … goes up for an astounding 2 weeks in a row," Cramer said.
The first positive is that President-elect Donald Trump's appointments thus far have not been that bad, Cramer said. A few picks were "oddball" and investors might not agree with them, but Trump hasn't done anything to make Wall Street sense that it is in real trouble.
"I think the only issue would be if companies genuinely stop offshoring and people begin to worry about what that will mean for the cost of pretty much everything … but I think that is very unlikely," Cramer said.
Bond market equivalent stocks have been absolutely trashed, and Cramer thinks it could be time for them to make a comeback in the Trump rally.
Some investors may be concerned that the Federal Reserve could raise interest rates in December, which would make the yield for bond market equivalents with international exposure less attractive against the strong dollar.
However, Cramer isn't sweating it. He listed the stocks on his list that are ripe for picking.
"These companies don't report for a long time and I think it makes sense to buy them because they have fallen behind and they are doing better than people think. We are simply reacting to the decline in their stocks, as opposed to the decline in their businesses, which is non-existent," Cramer said.
Ahead of Giving Tuesday, PayPal's CEO Dan Schulman says doing good is a responsibility for all companies.
"We cannot just rely on the public sector or the private sector. We all need to work together," Schulman said.
Last holiday period, 7.25 million people gave over $850 million to 250,000 charities on PayPal. The company broke every record, Schulman said, as the platform facilitated $48 million in donations within a 24-hour period.
This was up from just $19 million the year before.
Tech Data is the technology company that is one of the world's largest wholesalers of IT products. The stock has rallied off of the news that it will acquire rival Avnet's technology solutions business for $2.6 billion. Shares of Tech Data soared 20 percent in a single session on the news.
Cramer spoke with Tech Data's CEO Bob Dutkowsky, who explained that the way that technology is used around the world is no longer segmented into categories like consumer technology versus cloud technology, or data center technology versus the cloud.
"It all fits together in a seamless fashion. And so, by putting Tech Data together with technology solutions from Avnet, we build that end to end source of products for the marketplace," Dutkowsky said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
BlackRock: "You're not going to go wrong with BlackRock, because it's one of the best run financial companies in the world. I love those guys."
Halliburton Company: "Halliburton, David Lesar [CEO] he is doing a terrific job. I don't care whether there is a deal ... or not. That quarter was the turn quarter. I like the stock."