People got a kick out of what I said at the top of "Mad Money" on Tuesday night, that the buyers and sellers are sometimes so stupid that they make moves that a bag of hammers would know better to pass on.
I compare their analytical abilities to those of Naven R. Johnson, who struggled to understand the difference between Shinola and a more scatological object best not to be mentioned in this family-friendly column.
So, I want to reprise it here, in again pointing out when buyers and sellers have tilted incorrectly on a couple of stocks.
I like Wendy's (WEN) and not just because my wife can put away a Double Baconator quicker than anyone, or that I am salivating over the introduction of the spicy chicken value sandwich and hope that it's as good as the spicy nuggets that were a hit this time last year. I like it because of its consistency during the pandemic. When this stock fell to $7 during the great March bear market, I was appalled and told you that if any quick serve eatery was going to come back fast, it would be this one, and I have redoubled my efforts after what has now become almost an obligatory sell-off on good numbers. Wednesday's quarterly report was not only excellent, but it's read on July, with very high single digit same-store sales gains, including for breakfast, is spectacular. The idea that the stock was down seems almost foolhardy, but we can never overestimate the stupidity of those who continue to sell the stock of this great chain after all good news.
Or how about Regeneron (REGN) , with a stock that was down 16% on unbelievable numbers in its core Eylea and atopic dermatitis businesses, but also in its possible success from Libtayo, a novel anticancer treatment for cutaneous squamous cell carcinoma.
But the best went completely ignored: Regeneron's work to develop a neutralizing antibody cocktail that, as the company said on its conference call, could play a role as a rapid first line in defense in those for whom a vaccine is not available and in the long term could also provide protection for those least likely to respond well to a vaccine, such as the elderly and immunocompromised. Ladies and gentlemen, when I am talking about the triumph of science, I am talking about that cocktail. Bottom's up!
Finally there is the combination of two Cramer faves, Livongo (LVGO) and Teladoc (TDOC) , a merger that was roundly criticized by the market. I get it: These two companies were standalone champs and stalwarts in the Cramer Covid-19 index, with Livingo standing in second place coming in this morning.
Teladoc is the de facto king of telemedicine. It has 70 million users and is growing like a weed. Livingo, with a stock that is up more than 400% this year, is the life coach for those with chronic illnesses, especially diabetics, who are in the toughest of the tough at risk groups for Covid-19. There's only 25% overlap between the two companies, so the cross-selling for the combined entity, which will be led by Jason Gorevic, the CEO of Teladoc, will be immense.
Remember, Livongo helps people with chronic conditions and there are nearly 147 million people with a chronic condition and 40% have two or more chronic conditions. Livongo has told has that 90% of health care spending is attributable to those with chronic illness, which costs the U.S. economy $3.7 trillion.
I think the combination is brilliant and will become a must own for mutual funds looking for the equivalent of a "fin tech" for health care. Plus, this one's a winner no matter who prevails in the upcoming election.
Wendy's, Regeneron, and the new Teladoc -- their sellers are all from the Naven Johnson School of Investing. I'd take the other side of their diploma.