Submitted by just another Cramerholic on Fri, 03/12/2010 - 18:55.
TheCramerReport.com is your best source for Mad Money recaps, information about Jim Cramer, and other investment news. Scroll down to see what one of the most successful investors in the world has to say about the market.
Submitted by just another Cramerholic on Tue, 03/09/2010 - 07:30.
Segment 1: Cause for Celebration
Cramer said that the bull market is one year old, since the stock market hit its lowest close of the previous bear market at 6547 on March 9, 2009, but people still don’t like stocks right now. He thinks this 61% move is a reason to celebrate, and he looked back at all the negativity in the news and anti-business rhetoric from Obama that sent the stock market to those levels, and explained that the bottom was put in place when Obama stopped attacking business, it became clear that the banks were not going to be nationalized, the Chinese stimulus kicked in, and balance sheets improved with the secondary offerings at higher prices.
Segment 2: Interview with Noble Energy (NBL) CEO Charles Davidson
Cramer said that the natural gas sector had a big win in Colorado last week when the state government required Xcel Energy to retrofit some of their coal plants so they can run on natural gas and reduce emissions. He said that NBL has natural gas assets that are the equivalent of 53 billion barrels of oil, and just acquired more gas reserves in the Rockies, so it should be in good position to take advantage of Colorado’s new requirements. The company also has assets in Israel, West Africa, the Gulf of Mexico, and Texas. Here is a summary of the interview.
1. Cramer asked about the decision in Colorado to require one of its utilities to use natural gas to generate electricity, and the CEO said that legislation like this needs to happen more often as people realize the abundance of natural gas available in the U.S.
2. Cramer asked if the company has any regrets about its strategy because they were more bearish on natural gas during the last conference call, and the CEO said that decisions like the one made in Colorado make him feel better about their strategy.
3. Cramer asked if more utilities will try to sign long term agreements now that natural gas is becoming more abundant, and the CEO said that he hopes others will follow Colorado’s lead.
4. Cramer asked about their partnership with Israel, and the CEO said that his company made a huge find there last year, so the country is moving towards generating all of their electricity from natural gas and make themselves energy independent.
5. Cramer asked how quickly the U.S. could convert their vehicles to natural gas, and the CEO said that Israel is planning to use more electric cars, which will be indirectly powered by natural gas, they could use natural gas in their transportation system as well, and that their battery technology is a few years away from being used.
6. Cramer asked if companies are going to take action to move to a cleaner fuel like natural gas before the EPA starts shutting down the dirtiest coal plants, and the CEO said that there is no reason to keep operating the dirtiest plants when there is an abundance of natural gas in the U.S.
7. Cramer asked why the U.S. has not embraced natural gas yet, and the CEO said that all these huge finds have happened so quickly, but word is getting out now.
Cramer ended by saying that he is bullish on this stock because the natural gas sector is still undervalued.
Segment 3: On the Right Foot
Cramer said that shoes stocks are hot right now, and he likes Skechers USA (SKX) because Nordstrom (JWN) is saying that their products are selling well, and that is the store that tipped Cramer off about Decker Outdoors (DECK) over the holidays. The company has a brand that is popular with young women, had a great fourth quarter, gave a very bullish forecast on their conference call, increased same store sales by 17.4% last quarter, and decreased inventory by 14.2% over the last year. Also, the company feels that sales could increase 30% in the first half of 2010 as they open 25 – 30 new stores around the world, and they are leading a new market segment with their Shape Up and Tone Up shoes that provide exercise and make women’s legs look better. The only downside is that the stock is near its 52 week high right now, but it is cheap at 9 times earnings once you remove its cash per share because the company has a 15% growth rate, so the stock should go even higher.
Segment 4: Lightning Round!
Hershey (HSY): Cramer is bearish on this stock because it already had a nice run up and he doesn’t think they have the earnings to support the current stock price.
Cisco (CSCO): Cramer is bullish, thinks the stock could go to $35 before it is expensive, and has already bought a position for his charitable trust.
Ariba (ARBA): Cramer is bullish on this stock and F5 Networks (FFIV) as internet commerce plays.
Visa (V): Cramer is bullish on this stock because he thinks they can raise their earnings estimates.
Gafisa (GFA): Cramer is very bullish on this Brazilian bank.
Fuel Systems Solutions (FSYS): Cramer is bullish on this stock because he thinks it is cheap.
Allied Irish Banks (AIB): Cramer is bearish on this stock because it is too risky, and he recommended Citigroup (C) instead.
Motorola (MOT): Cramer is bearish on this stock and recommended Apple (AAPL) instead.
Segment 5: Eureka Moment
Cramer’s Eureka Moment for today is that the investments made by the U.S. government during the financial bailout appear to actually have value, and they should set up a holding company to get the best price possible by contacting someone like Warren Buffett rather than just selling on the open market.
Submitted by just another Cramerholic on Sun, 03/07/2010 - 20:28.
Segment 1: Game Plan
Cramer said that he thinks things are getting better, and the positive earnings report season that ended last week provided evidence that the economy is turning around, with good quarterly reports from tech, retail, housing, and leisure companies. Also, the better than expected unemployment figure reported today is another positive sign. He recommended doing the following next week:
Monday: Cramer wants to buy J. Crew (JCG) today to get into the stock before it reports earnings on Tuesday and buy more if it sells off on Tuesday because it is the best retailer in the U.S. right now. He also said you could buy Men’s Wearhouse (MW) before it reports earnings on Wednesday if you want to take a little risk because the company just raised its dividend.
Tuesday: Cramer wants to watch the quarterly report from Dick’s Sporting Goods (DKS) to get some answers about Nike (NKE), which he is bullish on and Under Armour (UA). He also wants to listen to the report from E-House China Holdings (EJ) to find out about the Chinese real estate bubble and Kroger’s (KR) quarterly report to see if people are moving back to name brand products.
Wednesday: Cramer said that Carrizo Oil and Gas (CRZO) reports earnings today, and he thinks they will have positive news, but he would stay away from the stock if natural gas futures are back down to $4.50 on Tuesday afternoon. Also, Brown-Forman (BF-B) reports earnings today, but he would rather own Diageo (DEO), and Clean Energy Fuels (CLNE) reports earnings after the close, and he wants to see if they have any new news about natural gas legislation and the expansion of natural gas usage by truck fleets.
Segment 2: Speculation Friday
Cramer said that he has a new speculative auto parts maker that he wants to recommend, and the company is Gentex (GNTX). They are the market leader in automatic dimming mirrors, and they believe that the market for their product will grow from its current level of 18% of all autos worldwide to 45%, so it could more than double in size even if auto production levels remain low. Also, there is pending regulation in the U.S. that would require all cars to have rear view cameras, and GNTX has an 80% market share in mirrors that have a small LED screen built in, and it is estimated that 60% of all cars will use this type of display to meet this new regulatory requirement. The company reported a better than expected fourth quarter and raised guidance for the first quarter, has a great balance sheet, pays a 2.2% dividend yield, and is expected to grow earnings 79% in 2010 and 21% in 2011. He said that there is some risk because the stop in production by Toyota (TM) has caused the company to cut production by 10,000 units, but they could make that up with increased sales to other customers. Also, the stock is a little expensive at 25 times earnings, so he said there is no need to chase the stock if it goes up from its current level.
Segment 3: Dreaming of Profits
Cramer said that restaurateur Danny Meyer recommended Dream Works Animation (DWA) when he was on the show a couple weeks ago because the movies they create make people feel good, and Cramer did his homework on the stock and found that he agrees with Meyer’s bullish recommendation. He said that it is a play on the rollout of 3D movies in theaters, the company just reported a better than expected quarter and has a strong 2009 even though they only released one new movie, they are very optimistic about 2010 when they have 3 new movies coming out, they think they can generate an additional $55 million - $65 million in revenue from video games and consumer products, and the stock is cheap at 15.6 times earnings and a 17% growth rate. He did say that the stock is near its 52 week high, so there is no need to buy it right away or chase the stock higher, but he is bullish on this stock for the long term.
Segment 4: Lightning Round!
ARM Holdings (ARMH): Cramer is bullish on this stock because its products are the heart of the mobile internet tsunami.
Proctor and Gamble (PG): Cramer is bullish on this stock because he thinks the company is going to raise its dividend.
Teekay Tankers (TNK): Cramer is bullish on this stock.
Valmont Industries (VMI): Cramer is bearish on this stock.
Staples (SPLS): Cramer is bullish on this stock even though some people didn’t like their most recent quarter.
Palm (PALM): Cramer said this is a good speculative play and he would not sell it at its current level.
Dow Chemical (DOW): Cramer is bullish on this stock and said he was wrong when he pre-judged the management last year.
Segment 5: Mad Money Mail
Citigroup (C): Cramer is bullish and he said that he wants to buy more when the U.S. government begins unloading its stake in the company.
EV Energy Partners (EVEP): Cramer said he would not sell the stock if he owned it because he thinks the 9.7% yield is safe, but he would rather buy a shale play like Range Resources (RRC) or Chesapeake Energy (CHK).
Electronic Arts (ERTS): Cramer is bullish on this stock.
Submitted by just another Cramerholic on Fri, 03/05/2010 - 14:18.
Segment 1: Time to Pull the Trigger
Cramer said that it is time to buy Apple (AAPL) because the iPad hype is going to begin as it becomes commercially available, and all of that press will send the stock higher. Also, Apple is going to start their ad campaign for the product next week, it is not attached to any cellular carrier, and there appears to be real corporate demand for this product, which is a new market for Apple. He pointed out that the current stock price is only 13 times 2011 earnings because the company has $43 per share in cash, and it has great growth prospects. He thinks this is a great opportunity to get into this stock before everyone else jumps on the iPad train, so you need to buy it now.
Cramer took phone calls on the following stocks:
Cisco (CSCO): Cramer is bullish on this stock because it is cheap.
First Financial Bancorp (FFBC): Cramer likes First Merit (FMER) and Huntington Bancshares (HBAN) better.
Segment 2: Interview with Eaton (ETN) CEO Sandy Cutler
Cramer said that ETN is up 46% since he last recommended it in July, but the company’s management is still bullish as it grows revenue at 12% - 14% annually by increasing its sales overseas, the company has plenty of earnings to cover its dividend, and they think that the economy is going to keep improving for the next 4 – 5 years. Cramer wanted to talk to him about what is making this company successful and see what risks there are for investors. Here is a summary of the interview.
1. Cramer asked how they were able to prepare for the recession and also keep growing, and the CEO said that they had a terrible second half last year, but the future looks strong as the economy recovers, they move into more international markets, and they benefit from improvements to their cost structure.
2. Cramer asked about their earnings visibility and optimism about 2012, and the CEO said that their visibility has gone from a less than a month to several months because of higher demand in Asia and other markets.
3. Cramer asked about ETN’s investment in research and development, and the CEO said that they didn’t cut back on R&D spending last year, which will allow them to have solutions that their customers need.
4. Cramer asked if they should be viewed as a energy conservation company, and the CEO said that their products are used by almost every part of the energy sector.
5. Cramer asked about their business in China, and the CEO said that they have 10,000 employees there, and their products are in high demand in that country as their build their electrical grid and highways.
6. Cramer asked if the company regrets their investments in Europe last year, and the CEO said that it is the weakest economy in the world right now, but he doesn’t regret the acquisitions the company made because they allowed ETN to sell more products around the world and should add $0.30 to their earnings this year.
7. Cramer asked if they will raise the dividend this year, and the CEO said that they had record cash flow last year and have a history of increasing their dividend.
Cramer ended by saying that he believes in this CEO and is still bullish on this stock.
Segment 3: Sell Block
Cramer said that Transocean (RIG) reported a terrible quarter last week, so he put it in the penalty box for now because it is a weak stock in the oil services sector. However, he likes that sector, so he wants you to sell RIG and buy Weatherford International (WFT). He is bearish on RIG because it couldn’t control costs, but the company said that demand for their services is still strong, so better stocks in the sector should do well. WFT is the top company in directional drilling, has a very diverse customer base, has strong growth prospects, and could be a takeover target.
Cramer took phone calls on the following stocks:
Buckeye Partners (BPL): Cramer likes Kinder Morgan Partners (KMP) and Enterprise Product Partners (EPD) better because of their higher growth rates and higher dividend yields.
URS (URS): Cramer said that this is his favorite nuclear play.
Segment 4: Lightning Round!
Sequenom (SQM): Cramer said that this stock is too risky for him, and he would like to have the CEO on the show to find out more about it.
Force Protection (FRPT): Cramer is bearish on this stock and said it is too risky.
TiVo (TIVO): Cramer said the stock moved up huge today because they won a big lawsuit, so he would rather wait for it to pull back before buying a position.
Celera (CRA): Cramer is bullish on this diagnostic sector and recommended buying this stock.
U.S. Natural Gas Fund (UNG): Cramer said this ETF is one of the worst securities in history, and he said you should own something like Devon Energy (DVN) if you want natural gas exposure.
Warner Chilcott (WCRX): Cramer is bullish on this stock.
Segment 5: Pin Action
Cramer said that Altera (ALTR) raised its guidance after reporting a strong quarter yesterday, and Marvell Technology (MRVL) reported a disappointing quarter today, so he is looking for a stock that could be knocked down by MRVL tomorrow. He recommended buying Xilinx (XLNX) because the company reported a strong quarter, had a bullish analyst day a couple weeks ago, and the stock should be down tomorrow morning along with MRVL. He has been bullish on this stock for a long time as a mobile internet tsunami play, and he wants to stick with it even as it approaches its 52 week high. The company has 14% growth, is increasing its profit margins, trades at only 14.7 times earnings making the stock cheap, and it is one of the few tech stocks that pays a dividend.
Submitted by just another Cramerholic on Wed, 03/03/2010 - 20:59.
Segment 1: The Least Worst Place to Invest
Cramer asked why the market is going up when there is high unemployment, huge deficits, a bad real estate market, and a weak economy, and then explained that the reason is that the U.S. market is the least bad place to invest right now. China is in a huge bubble and the country is still run by communists, Mexico doesn’t have enough businesses to invest in, the Middle East is still hurt by Dubai, and Europe is in the middle of a currency crisis. The companies in the U.S. have the best balance sheets in the world so they will be in position to take over companies in other markets, and if there are ever any job gains, the market will take off.
Cramer took phone calls on the following stocks:
Banco Santander (STD): Cramer still wants to hold on to this stock because it is cheap, but he said that hedge funds will attack it because of its connection to Spain.
Segment 2: Interview with Western Gas Partners (WES) CEO Donald Sinclair
Cramer said that this company is a subsidiary of Anadarko Petroleum (APC) that makes its money operating pipelines that transport fuel. This MLP is in a good position to profit from increased natural gas usage, has raised its dividend in 3 straight quarters, but Cramer is a little worried about their dependence on APC, so he wanted to talk to the CEO. Here is a summary of the interview.
1. Cramer asked if their distribution increases will end if APC stops giving them properties, and the CEO said that APC has been helpful, but they can go find other properties on their own if necessary.
2. Cramer asked why the company is separate from APC, and the CEO said that they are able to unlock shareholder value.
3. Cramer asked if they will ever own all of APC’s midstream assets, and the CEO said that he thinks it will happen over time.
4. Cramer asked if they will move outside of the Western U.S., and the CEO said that they take over APC’s assets, so they follow their footprint, and will move into the Marcellus Shale in the future.
5. Cramer asked if declines in energy usage will decrease their profits, and the CEO said that 70% of their gross margin is fee based, and they hedge the rest, but there is some throughput risk if companies don’t use their pipelines.
6. Cramer asked how the U.S. is moving towards increased energy independence with natural gas, and the CEO said that he doesn’t understand how we got where we are today when natural gas can provide energy independence and high paying jobs.
7. Cramer asked for a comparison to Enterprise Product Partners (EPD) and Kinder Morgan Energy Partners (KMP), and the CEO said that they became public much later than those companies, and they should have more growth than their competitors.
Cramer ended by reminding everyone that MLPs have an unusual tax structure, so you should consult a tax professional before buying.
Segment 3: Uggs Running Up
Cramer said that Deckers Outdoor (DECK) reported a huge earnings and revenue beat last week with strong same store sales, and also increased guidance for 2010. The stock has already had a big move up, but he thinks it can go even higher. He said that Wall Street was surprised by higher Uggs sales, good inventory management that allowed them to limit discounts, and much higher direct to consumer sales. He is still bullish on this stock.
Cramer took phone calls on the following stocks:
True Religion Apparel (TRLG): Cramer said to take profits and that he would not enter any new positions because the stock is up so much, but he thinks the company will continue to do well.
Under Armour (UA): Cramer would rather own Nike (NKE)
Segment 4: Lightning Round!
Office Depot (ODP): Cramer would rather own Staples (SPLS) because it has dropped so much that it looks cheap.
AT&T (T): Cramer is bullish on this stock and said he likes Verizon (VZ) as well.
Human Growth Sciences (HGSI): Cramer said this is a good speculative play, along with Dendreon (DNDN).
EnCana (ECA): Cramer is bullish on this stock as a good natural gas play.
Ford (F): Cramer is still bullish on this stock and said that buying their bonds or the Ford Preferred (F-PS) is OK also.
Hansen Natural (HANS): Cramer is bullish on this stock.
AIG (AIG): Cramer is bearish on this stock because he thinks the company is worthless.
Berkshire Hathaway (BRK-A): Cramer is bullish on this stock.
Segment 5: Am I Diversified?
Cramer reviewed caller portfolios but didn't make any specific stock picks.
Submitted by just another Cramerholic on Wed, 03/03/2010 - 07:36.
Segment 1: Love the One You’re With
Cramer said that one of the more difficult things to do is sticking with an idea that has been working when there are so many other investing ideas out there. He used Ford (F) as an example because it is continuing to perform really well, but people call him almost daily asking about Toyota Motor (TM) looking for a new play. He wants to sell TM and buy F, and he said he would rather own F than Honda (HMC) or Daimler (DAI) as well because Ford is a proven winner. He also recommended the Ford Preferred (F-PS) again because he thinks the company will pay to get rid of it in the future. Other stocks he wants to stick with are Apple (AAPL) and Deckers Outdoor (DECK). He ended by saying that there are times to sell a stock that has been doing well, but that time is when the facts change about a company, not when you are bored of owning a stock that has been doing well.
Cramer took phone calls on the following stocks:
China Automotive (CAAS): Cramer said that he would sell this stock because it is too risky.
AutoZone (AZO): Cramer is bullish on this stock because they are winners.
GrafTech International (GTI): Cramer is bullish on this stock.
Segment 2: Off the Charts
Cramer looked at the chart of JDS Uniphase (JDSU) this week. He said that the stock has moved up 387% from its lows a year ago and 41% just last month, but he thinks it could go higher because the stock is so strong. Technical analysts think that there is very strong demand for the stock because it has been making higher highs and moving through resistance levels on high volume, but it could get crushed if that demand goes away. The analyst Cramer talked to said that he would buy the stock near its support level at $9, but thinks it is too risky at its current price of $11. Cramer said that the stock has a bad history from the tech bubble, where it reached a high of $1227 and then dropped 99.8%, but the company is transforming itself, it is part of the mobile internet tsunami because the network operators need their test equipment, their communication equipment is seeing huge growth rates, and they are developing new optical technologies that should help move them out of commodity markets. Cramer ended by saying that he would recommend buying a quarter or half of your position now, and then buying the rest if it pulls back to around $9.
Segment 3: Interview with Anadarko Petroleum (APC) CEO Jim Hackett
Cramer said that this company does not get enough credit from Wall Street, and that he wanted to take another look at them after their very bullish conference today. They said that they plan to grow their reserves by 7% - 9% each year for the next 5 years, which will give them 3 billion barrels of oil in reserves by 2014. He said that it would go up another 65% if it trades like Occidental Petroleum (OXY), which it will be comparable to if it keeps growing at its current pace. Here is a summary of the interview.
1. Cramer asked if APC should be grouped with bigger companies like OXY, and the CEO said that they have a different asset base than OXY, but it would be a good company to be associated with.
2. Cramer asked about their international business, and the CEO said that they need to work globally to grow their business and it gives them diversification.
3. Cramer asked if they need more money than they have to develop their new projects, and the CEO said that their balance sheet is good enough because their new projects are scheduled so that the work load is fairly level.
4. Cramer asked if they are skewing more towards oil because they don’t believe as much in natural gas as they did in the past, and the CEO said that he still believes in the natural gas, but there could be some short term weakness because of new LNG imports, and they are drilling for more oil right now because that is what happens to be available in the international and deep water projects they are working on.
5. Cramer asked if Washington is coming around to the idea of promoting natural gas usage, and the CEO said that something good is going to come from the attention that natural gas is getting and that Washington is slowing realizing the potential of the fuel for lowering pollution, making the U.S. energy independent, providing a lot of jobs, and creating energy in a safer way.
Segment 4: Lightning Round!
Prudential (PUK): Cramer is bullish on this stock because he thinks the purchase of AIA Group from AIG (AIG) is a smart move.
Symantec (SYMC): Cramer said that he would rather own ArcSight (ARST).
Terra Nitrogen (TNH): Cramer is bullish on this stock and recommended Potash (POT) as well.
Zhongpin (HOGS): Cramer doesn’t like any individual Chinese stock other than China Unicom (CHU).
Weatherford International (WFT): Cramer is bullish because the stock is so cheap at $16.
Segment 5: Mad Money Mail
Carrizo Oil and Gas (CRZO): Cramer told the caller to sell enough stock to cover his costs because he is up so much.
Nabors (NBR): Cramer is bearish on this stock and said it is one of the worst performing stocks he has ever seen.
Hatteras Financial (HFS): Cramer is bearish because he thinks the 18% yield is unsustainable and a red flag.
Windstream (WIN): Cramer is bullish on this stock and Altria (MO) because of their high yield.
Plum Creek Timber (PCL): Cramer is bullish on this stock and Weyerhaeuser (WY) as plays on a lumber market that he thinks is going to improve.
