Cramer Remix: The market’s freak-out creates a fabulous buying opportunity in Funko

Health, Fitness & Food

CNBC’s Jim Cramer is suggesting that investors buy into Funko, the $900 million toymaker that sells pop culture-related collectibles.

In line with a number of stocks that have been sold off even after reporting a strong quarter, Funko shares have lost about $7 since delivering its earnings last week. But Cramer said there was “a lot to love about this quarter,” especially because the company gave a full-year forecast that top Wall Street expectations on sales and earnings guidance.

Closing under $18 on Thursday, Cramer pointed out that the stock is lower than it was in November. The security was trading as high as $31 back in September after growing 35 percent in the first half of 2018.

“In other words, you’re getting these spectacular results for free,” the “Mad Money” host said. “Better than free—you’re literally paying less than nothing for a fabulous beat and raised quarter, one of the largest of 2019. So that’s why I believe at these levels Funko the stock is a steal.”

Listen to why Cramer thinks Funko has potential to keep growing here

There are a handful of stocks that can give investors early indications about what to expect of the market in coming days, Cramer said.

As selling continues and major U.S. indexes take on a “bearish malaise,” the host revealed a technique that he developed during his time at Goldman Sachs that helped him forecast which way the wind will blow.

The major indexes continued sliding on Thursday. The Dow Jones Industrial Average shed more than 200 points, while the S&P 500 and Nasdaq lost 0.81 percent and 1.13 percent, respectively.

“You need to have the prices and charts of just a half-dozen stocks that … give you the feel and they tell you the tale of the tape in this market because the action in these names will give you a sense of when the averages are ready to turn,” Cramer said. “We had a lot of positive action today, believe it or not, but it may not be there yet.”

Click here to find out the stocks Cramer said you need to watch.

Barrick Gold CEO Mark Bristow told CNBC on Thursday that his company and Newmont Mining could more effectively boost gold mining in Nevada as a single operator opposed to a joint venture.

The chief defended the company’s competing bid to merge with Newmont, but Newmont CEO Gary Goldberg is interested in merging with Goldcorp for $10 billion. He would rather form a joint venture with Barrick Gold to mine in Nevada.

“There’s been debate about the Nevada joint venture. .That is a large part of the missing billions,” he said in an interview with Cramer.

Learn more about the deal and hear the interview here

LogMeIn, the cloud-based platform for the workplace, is serving one of the hottest spaces of tech and supports about two million daily users.

But after posting strong performances in 2016 and 2017 off of an acquisition of GoToMeeting, the stock is down more than 34 percent from this point in 2018. Now CEO William Wagner is calling 2019 an investment year to set the company up for another wave of organic growth.

“I’ve gotta tell you, I’m actually torn on this one. On the one hand, LogMeIn is the rare value play in the cloud-based software space—the darned thing sells for just 16 times this year’s earnings, which is cheaper than a lot of consumer packaged goods companies … let alone software-as-a-service stocks,” Cramer said.

Still, LogMeIn recorded more than 20 percent of revenue growth in 2018. Sixteen-times earnings sounds like a “bargain” in a crowded space, the host said.

Get Cramer’s verdict here

The U.S. Food and Drug Administration earlier this week approved a drug by Johnson & Johnson that Cramer said was “incredibly positive.”

The host is optimistic that Spravato, a treatment for severe depression, could save lives. But the news was met with jokes from cynics comparing relating it to drugs like ecstasy, he added.

“How many people have to commit suicide in this country before we recognize that it’s a good thing when a company like J&J comes up with a new antidepressant? Who cares if it’s related to a club drug—the only thing that matters is it works,” Cramer said.

While Spravato won’t be cheap, Cramer said it could be the biggest breakthrough for depression since Prozac hit the market more than three decades ago.

Hear why Cramer thinks this is good for patients and shareholders here

In Cramer’s lightning round, he ran through his reactions to callers’ stock questions:

EPAM Systems Inc.: “I don’t know it. I gotta do work. I have not talked about EPAM Systems. We’ll do the work.”

Exact Sciences Corp.: “It works. It works. Exact Sciences works. It’s a way to cut down on colon cancer.”

Avalara Inc.: “If I’m gonna be in [finance software], I’m gonna be in Intuit. That’s the one I like. I-N-T-U.”

Philip Morris International Inc.: “I don’t like to recommend tobacco stocks on this show, I’m sorry. I did have a chartist, he did say that they’re good, though.”

Disclosure: Cramer’s charitable trust owns shares of Goldman Sachs.

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