Analysis: HON PANW CVS PYPL SQ DIS GS

In today's Daily Rundown, Jim tells club members what is he is looking for in Thursday's early morning selloff, he talks about Honeywell (HON) and our decision to trim Palo Alto Networks (PANW) this morning (see our Alert here), he discusses CVS Health (CVS) and management's upcoming guidance update, he contrasts PayPal (PYPL) and Square (SQ) , and more!

Plus, Jim answers club member's questions about Disney (DIS) and Goldman Sachs (GS) . 

Katherine Ross: Good morning y'all. I'm Katherine Ross with Action Alerts PLUS. I'm here on the floor of the NYSE with Jim Cramer. Jim, we were just talking about the markets. Now, I want to get some actionable advice for our investors here.

Jim Cramer: Let this market come down. We're very overbought. The earnings this morning were sub-optimal. We have this merger in banks, Sun Trust BB&T. Don't expect more immediately, although they will happen, and we haven't had a real down day in a long time. We're down off of Europe, but I just want people to ... I mean we're ringing the register on something this morning that is the right thing to do because it's moved too much and I just feel very strongly that we're building cash hoard here for the decline. Can we turn when Europe closes? Yeah, but just be aware that we're trimming because it's moved too much. That's a change. We're trimming because the market's moved too much. Taking profits.

Katherine Ross: Tusa put out a note on Honeywell this morning.

Jim Cramer: What'd he say? I didn't see. He loves Honeywell.

Katherine Ross: He loves Honeywell.

Jim Cramer: Yeah, look, Tusa I was thinking about ... I was talking with David Faber and Carl Quintanilla and I was saying that GE shouldn't be above 10 because Larry hasn't done much yet and Tusa would say it's too high and I'm with Tusa on that and I do like what Larry Culp is doing, but GE above 10 seems wrong to me without more of a game plan.

Katherine Ross: So you guys are trimming Palo Alto.

Jim Cramer: Yes.

Katherine Ross: Can you explain?

Jim Cramer: Look, we bought some so low. Stock has gone up so much. We were looking at what we could take a little profit on, on things that got very big because the stock went up - it's not a huge position. But I feel like that when you have a Palo Alto, where you bought it really low during the big sell off, and then you have it come all the way back up to where you're above your basis, you can trim it and get ready for the next decline in other stocks. And I think that it's perfectly realistic that today and tomorrow are down days and earnings aren't that great so we just want a little extra cash.

Katherine Ross: All right. And I also want to talk to you about the Morgan Stanley note on CVS. Now they-

Jim Cramer: It's an important note.

Katherine Ross: It's a very important note. Now can you explain why?

Jim Cramer: Okay. So everybody's waiting for Larry Merlo to lower the boom on the numbers for CVS. Everybody knows it's going to get cut because of this merger with Aetna. So there's a resistance to buying it until the analyst meeting where Merlo cuts numbers. And everybody wants to get in ahead of time. Maybe he cuts numbers to 720. Everyone wants to get out and then get back in. I think that you're not going to be able to do that. And the Morgan Stanley note's about that, that expectations come down enough that you have to start buying it. I totally agree, 63, 65, 63, 65.

Jim Cramer: Now there is a problem and the problem is rebates. Now the government wants to get rid of the rebates where the PBMs get a lot of the vig so to speak and they own Caremark, so that's going to cut 14 cents and we'll have notes out on that. But that's the big negative. The big positive, obviously, is CVS was an Amazon play, meaning Amazon was going to wreck them, but now they got Aetna. I mean they've insured themselves multiple years of growth. So I think this is 3 down and 30 up.

Katherine Ross: So I was talking to Zev Fima about this and he was talking to me about why ... he was writing the note as we were talking actually, but he was talking to me about why he thinks that no one should overreact to this note.

Jim Cramer: Well, I mean look, we need numbers down. Now at JP Morgan at the healthcare conference he didn't tell us anything, and there's a belief that either he has discovered things that are very bad, CFO resigning, doesn't want to talk or he's just trying to figure out what the company's really worth and what it's going to earn. You have this judicial backlash, you have the government trying to get rid of rebates. And once he puts his house in order I think you're going to see that it's a juggernaut. But his silence has killed the stock, just killed it. That's why we've been buying it.

Katherine Ross: Let's talk about PayPal versus Square. Now, as a millennial, I don't think I know anyone who uses the Square app.

Jim Cramer: Yeah. I don't know what that is.

Katherine Ross: My friends and I use Venmo.

Jim Cramer: Yeah, I mean Square puts out some numbers. Look, I'm sure Square, look {inaudible}, we use Caviar, GrubHub had a bad number. I think that part of that is Caviar, part of that is DoorDash, part of that is Uber. There's just a tremendous amount of competition against GrubHub. GrubHub's stock has been coming down. A lot of it is the competition, even though they do have a good deal with Yum.

Jim Cramer: I'd say that - we own PayPal and you own PayPal because that Venmo has got, it has more than just Venmo, it's emoji Venmo, it's a cultural thing. PayPal, nothing wrong with Square. Sarah Friar was the person I talked to at Square. Jack Dorsey, he's a little more elusive, but I think that they're both good. But when it comes to payments, PayPal is doing better. Now I know that they're going to show you some volume numbers that they're not, but the PayPal franchise is fantastic.

Katherine Ross: And do you think that PayPal with the iZettle acquisition will start competing against Square in brick and mortar?

Jim Cramer: Yeah, but I mean, I don't know. I don't know. I got to get Dan back on. I do feel that PayPal's had a very big move. I debated some guy who was out of Wharton I think on Scott's show. He wanted to go long eBay and short PayPal and I didn't want to pants the guy on national TV but boy, you had to do the opposite. Now, I kind of like eBay down here. There's very little downside to eBay.

Katherine Ross: Why do you like eBay right now?

Jim Cramer: I think that there's very conservative evaluations out there for StubHub, which I think is incredibly well-run company. Conservative evaluation for its classifieds and that it's core business is actually improving. I think that when you have Elliot Management in there they tend to get changes. Elliot's really, really good. We had Paul Singer speak at our corporate governance conference. I'm a big fan of Elliot's work, so I think eBay is...there's another one where it's probably like 3 down and 15 up.

Katherine Ross: Okay, so I've got two member questions for you.

Jim Cramer: Sure.

Katherine Ross: The first one is from Hank and Hank is asking us, Disney, he says this is one of the portfolio holdings I don't own yet. I know it's rated a 1 but given the muted earnings reaction and its tight range it's been trading in, do you recommend entering now or waiting for the range result up or down?

Jim Cramer: There's going to be a big meeting.

Katherine Ross: April 11th, I think.

Jim Cramer: And I think he's going to guide down because he's going to talk about how much he has to spend, but if they don't spend they're done. They have to do what they're doing. I like their strategy. Once we get the re-set, people are going to come in. So what, is it 111? Could it go to 104, 105? Absolutely. But this is a long term great bet that I think that Bob's making, Bob Iger, but there's no hurry to buy it. No hurry to buy it.

Katherine Ross: So I've got a second question for you.

Jim Cramer: Sure.

Katherine Ross: This one's from Gary.

Jim Cramer: Hey, Gary.

Katherine Ross: Gary's asking ... hey, Gary. Gary's asking, at the depths of the market the end of December I locked into the huge capital loss in Goldman Sachs by switching to the position in Bank of America. Now that things seem to have stabilized, should I switch out of Bank of America and repurchase Goldman Sachs?

Jim Cramer: No, no, look. I think Goldman is too cheap. I'm saying if it gets to 190 I mean look, I wasn't proud of how we handled Goldman and that we were buying so many stocks when the market went down. We didn't buy Goldman. It wasn't off of Malaysia. It's just like look, how much more can we throw at certain stocks? So we cordoned off Goldman and the oils and then we bought BP anyway, and we lost some Schlumberger. Anadarko we chose to, you know stay away. It was a bad quarter for Anadarko. But Bank of America's good and Goldman's good. Goldman's cheaper but Bank of America's got some good momentum, and a good deposit base. So my take is, you're fine, but if Goldman goes to 190 and Bank of America stays where it is it might be an interesting swap out, but not here.

Katherine Ross: All right, Jim. Thanks as always.

Jim Cramer: Yeah. Just some other things, and I know we're going to do a separate thing, but we got the call coming up next week.

Katherine Ross: We do, yeah.

Jim Cramer: And I'm going to do some stuff about rules that will really be great, and use real life examples, and we might have a new name to do some buying in. Depends how low the market goes, but I'm looking forward to the call and please send in your questions.

Katherine Ross: All right, guys. You heard it from Jim. We'll see you tomorrow.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long HON, PANW, CVS, PYPL, DIS, GS.