Jim Cramer: How to profit from the next market sell-off

my mission is simple to make you

money i'm here to level the playing

field for all investors

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and i promise to help you

find it mad money starts now

hey i'm kramer welcome to mad money

welcome to create america

other people want to make friends i'm

just trying to make some money my job is

not just entertainment but to educate

and teach you so call me at 1-800-743cmc

or tweet me at jim cramer

there's always another sell-off right so

on the type of day where nothing much

really happened dow sliding ten points s

b declining point eleven percent

that's not gaining point one four

percent let me tell you how to profit

from the next sell-off you need to

remember what got plastered the last

time around

and then bounced right back because

that's what we're looking for on mad


no dross let's get right to it let's

start with chipotle

last week this stock got crushed by

people who didn't like the quarter

i told you they were wrong why because

those people knew

nothing right before the big game this

weekend i picked chipotle as our kicker

in our nfl championship portfolio i

wanted people to see that this company's

capable of kicking a 62-yard vehicle

well that was dumb as plywood stupid


i should have said that chipotle's a

tight end like gronk a player who can

block and catch and score

at will this stock had just dropped from

1 523

to 1479 off that quarter even though

they had 11

same store sales in january this is

unbelievable i really don't care about

november december

i quit about the most recent month

because that's how you're supposed to

think i was taught that way

i flagged that action in the stock and i

said this

is wrong okay this is wrong

so if you just bought the darn thing you

do very well

sure enough today chipotle hit a new

all-time high

don't sell it right now the company is

just banging it out with delivery and

all sorts of new ways to handle takeout

they're doing these incredible numbers

against pre-clothed comparisons

when the stores were packed going

forward over the year

well and think about it year every year

it's going to get much easier why

because you're able to sit down

and get your cilantro lime roasted

cauliflower which is unbelievably good

i started pounding the table chipotle

roughly a thousand points ago

because they finally reached the 18th

mark month mark after that last health

scare and my research shows that the

public tends to forget after 18 months

since then you've had a spectacular win

they barely skipped the beat when the

pandemic hit

how could the market be so wrong give me

a break the market's insanely wrong

every day

game stop at 300. there are kinds of

reasons that stocks get mispriced

all the time most common people get

scared when they see something go

down so they figure there's got to be a

reason they think it's rational

that's true but sometimes like in the

case of chipotle it's a bad reason

people are looking at the older numbers

not the newer ones i'm betting it's got

more room to run

because this is telling you

why don't we try another one let's go to

constellation brands

not long that long ago we spoke to bill

newman's concentration bands big brewer

us rights to corona modelo

only real growth in the beer industry

it's also some great wines and spirits

i thought they shot the lights out when

they reported i was cheering

everyone's stuck at home no bars are

open yet

they just pulverized what i thought they

could do putting up

just borderline impossible numbers i was

like yes we have them on tonight we

booked them regina gilbert my executive

producer because we do a lot of stuff

back and forth about

booking now i own a mothball small plate

mexican tower in brooklyn

it said no i'm going to open it i was so

concerned that the new model

they just launched would be heard

because who has it right you can't get

it at a bar i can't get a restaurant

instead the closures actually help them

i'm not kidding consolation might have

actually made less money with the part

bars open because they're making a

fortune selling beer to people who are

stuck at home with nothing better to do

even better pacifico that great long net

my favorite brand

wow that's a good breed of beer it's

doing incredibly well

but you know what they can't produce

enough modelo because the demand is off

the charts you know what

all that stuff is a sideshow compared to

the two biggest composites

constellations new heart seltzer that

may be the biggest home run we've seen

in years

and bill newlands the ceo told us to get

ready for a cannabis explosion

now that the democrats are running a

show in washington remember these guys

own a big chunk of canopy growth

they're the best one and they can

acquire the whole thing once the pot

gets legalized

i've known bill forever i even put on a

cannabis seminar i had him as a keynote


the last time we had him on the show he

was more bullish about marijuana than

i've ever seen him

the drinks he says are amazing i found

myself about

oh i thought geez i let open the

cannabis bar once the world goes back to


well what happened well the dream was

shattered immediately both stocks got


i mean really consolation belly fat from

230 to 210

over the course of a few weeks can't

even fall from 30 to 29 not a big deal

but the market was just dumb it was dumb

as a bag of hammers wrong

today constellation is 233. okay look at

this we haven't won i love the quarter

stock gets crushed okay and now we're

talking up on the same set of numbers it

goes there

he comes on and says listen marijuana

pot whatever cannabis is going to get

approved right here

no one listens and then look at this

this is going to take out its all-time

high of 240.

canopy searching 29-49 bill newlands

came when he gave you a two-fer

but you had to listen you had to know

that he was right and the market was


third example last year i met david

simon at the super bowl miami

that's david simon the amazing mo

operator not david simon the guy who

made the wire i love the wire

with it when his stock simon property

group got annihilated by kovitt

i reminded people that this man has

generated 33 billion

dollars in dividends and told you that i


faith in him as the survivor the one

the one who would get through call of it

other moss dropping like flies

well today simon reported and it was


his malls are doing incredibly well

because they are in all the best


something you could have seen coming

because he practically shouted out on

this comp school

with with everybody getting vaccinated

simon may be

among the top stories out there for the

reopening because you know what people

are shopping

they're shopping if the place is nice

enough and the competition

jeez it's been wiped out get this on top

of nobody knows this

on top of the simon recently bought

jcpenney out of bankruptcy you know

the company's already turning around

jcpenney his plan could generate a ton

of earnings for interest taxes

depreciated an amortization they

wouldn't worry too much about taxes

lots of people think go google jc petty

you'll see

everyone says it's dead it's not even

open but it's now owned by the landlord

and i see some terrific possibilities

watch for penny to come back

plus if some of the stores end up

getting close they just bring a new

tenant who pays an even

more expensive lease even after this

move even this incredible move

i would be a buyer because the stock's

the cheapest it's been relative to its


since 2008. with these examples in mind

you're probably saying okay thanks for

nothing kramer give me something you can

make one right now i do

i have it okay the next one's really


in the next one it's federal realty frt

reports thursday

this is another real estate investment

trust just like simon

who has the best malls this is shopping


don wood there are different things

shopping centers and walls don wood

is the ceo of federal realty now in this


in this terrible epidemic he has

reinvented these stores to have

touchless transactions he's turned mixed

use apartments retail and office

buildings into a science

remember people moving from the cities

they're going to

these properties same thing with the

businesses restaurants are coming out of


in the last conference called don gave

this impassioned plea explaining why he

didn't slash the distribution

because he didn't need to the analysts

were harsh even unforgiving like this

man did not know what he was talking

about as if this man was just sort of a

hopeless optimist swimming against a


waving his arm at the lifeguard saying

hey i'm not in trouble

man drowns saving dividend but as more

people get vaccinated i think federal

realty will be in the running for what

to do

once it's safe to shop again look at the

numbers his tenants are doing every bit

as well as simon's

the best part this is another last man

standing i don't even know about any

other shopping center read

i mean they're all been pulled for us

still people don't seem to get it but

that's where the opportunity comes in

i say buy some before the quarter buy

some after when the no brainers

and the brainers call us and say it

wasn't that good

they're wrong i'm right hubris

guilty here's the bottom line the market

is often wrong especially during

earnings season

you take you you need memory to take

advantage of these temporary multi-day

declines that i've just shown you

we have a guest tonight with a stock

that's been blown to smithereens off a

great quarter straus is out of take two

last time he was on the stock it dropped

from 175 to 154 by last night it

rebounded to 213.

now let's pull back to 200 again you

know what

you're getting another shot take it

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