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Submitted by just another Cramerholic on Fri, 02/05/2010 - 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 Sun, 02/07/2010 - 09:09.
Segment 1: Game Plan
Cramer said that the came back today because hedge funds ended selling at 3 PM, and that allow people to react to the OK employment numbers and the good earning reports and dividend hikes coming from a lot of companies. He thinks this will continue next week as the market rallies. Here’s what he wants to watch next week.
Monday: CVS Caremark (CVS) reports earnings and Cramer said he will recommend it if they execute. Vulcan Materials (VMC) reports earnings and it will give us an idea of the impact of the stimulus this year. Electronic Arts (ERTS) reports earnings also, and Cramer said that he thinks people will get behind the stock like he has after they report.
Tuesday: He wants to listen to the reports from Coca-Cola (KO) and Walt Disney (DIS) because they are two of the best run companies out there, and he said he would buy one of them if the market drags them down that day.
Wednesday: L-1 Identity Solutions (ID) reports, and Cramer will give his final verdict on the stock after being disappointed so many times. Sprint Nextel (S) also reports, and he would buy it if the stock turns around. Discovery Communications (DISCA) reports, and Cramer is bullish because cable is hot, and this is a pure play.
Thursday: Marriott (MAR) reports earnings this morning, and Cramer is bullish because they reinstated their dividend. Treehouse Foods (THS) reports, and Cramer is still bullish on this stock. Fluor (FLR) reports earnings, and Cramer is bullish on this stock as well. Viacom (VIA) also reports, and Cramer wants to watch the report from this cable stock as well because he thinks it is undervalued. After the close, Panera Bread (PNRA), Cheesecake Factory (CAKE), and Chipotle Mexican Grill (CMG) all report, and he wants to see how optimistic consumers are about spending money in these restaurants. PNRA is his favorite company, but he warned that the stock might have run too much.
Friday: Ultra Petroleum (UPL) reports earnings, and Cramer said that he wants to buy this stock in front of the report because the stock has been beaten down and he believes in their natural gas holdings.
Cramer took phone calls on the following stocks:
Cypress Semiconductor (CY): Cramer is bullish on this stock because it keeps beating earnings estimates quarter after quarter.
Bank of Hawaii (BOH): Cramer is bearish because the economy is Hawaii is terrible.
Segment 2: Interview with Aviat Networks (AVNW) CEO Harald Braun
Cramer recommended this stock back in September when it was called Harris Stratex Networks as a way to play the networking shortage as demand for bandwidth increases, but the company reported a terrible quarter this week where the stock missed on revenue. He wants to find out if demand for their products is weaker than expected, or if it is just an issue of deals taking longer to close than expected. Here is a summary of the interview.
1. Cramer asked for an explanation of the quarter they just reported, and the CEO said that their shipments and bookings were good, but accounting rules didn’t allow them to take all of that as revenue, which led to the shortfall.
2. Cramer asked why they don’t seem to have as much demand as their competitors, and the CEO said that they work on complex deals with major telecom networks that take several quarters to close.
3. Cramer asked why they didn’t make this clear on the quarterly call, and the CEO said that they explained how strong bookings are, that the lower revenues are due timing issues, and they didn’t give strong guidance going forward because they can’t be sure about the timing of their new deals.
4. Cramer asked why investors should stick with this company, and the CEO said that he thinks the load of demand is still a quarter or two away.
5. Cramer asked if they have any plans for the $2 per share in cash they have on hand, and the CEO said that they are changing the company from an excess bandwidth play to a core connection play, including a deal that they made in India where they can serve 22 regions.
6. Cramer asked for a new timeline now that revenue estimates are lower, and the CEO said that he thinks we will see mobile operators expanding their network in the second half of 2010.
Cramer ended by saying he is going to hold the CEO to that timeline, and he wants to wait and see how the company does later this year.
Segment 3: Speculation Friday
Because of the success of Avatar, Cramer thinks that 3D movies will be the next trend in movie theaters. He believes that theaters will push this technology because it will allow them to have an advantage over watching DVDs and home, and that it will be as big as the move from silent pictures to talkies and black and white to color. He is calling this trend the 3D typhoon, and he thinks the best stock to speculate on this change is Cinemark Holdings (CNK). He said not to buy the stock when a caller asked about it last Thursday, but he changed his mind after doing some more homework. The company is the 3rd largest movie operator in the U.S. with over 3842 screens, and 373 3D projectors deployed worldwide. The stock also has a 5% yield. Cramer pointed out that revenue from 3D screenings is expected to grow from a little over $1 billion to $9.4 billion in the U.S. and there are more potential blockbusters being filmed in 3D to help meet those growth expectations. He likes a theater operator as the way to play this trend because 3D ticket prices are $3 more expensive than regular tickets, these companies are already doing well in the current environment, and new trends in movie viewing will draw more people to movies. They also have an IMAX alternative called XD with a lot of growth potential. The company is also the number one chain in Brazil with a lot of other Latin American exposure, has a great balance sheet, is expected to get financing from the studios to roll out new 3D technology, and the stock’s P/E ratio of 15.8 is below its historical level of 20. He ended by warning that this is a long-term trend, so there is no reason to go out and jump in the stock on Monday, and said that you should do your homework and buy in chunks using limit orders.
Cramer took phone calls on the following stocks:
CoinStar (CSTR): Cramer said that he got that one wrong, and Netflix (NFLX) was the right pick.
Best Buy (BBY): Cramer is still bullish on this stock.
Segment 4: Lightning Round!
XTO Energy (XTO): Cramer is bearish on this stock because Obama refuses to promote natural gas and people are concerned about their fractured drilling technology.
Neutral Tandem (TNDM): Cramer is bearish on this stock because their products are commodities.
Citigroup (C): Cramer is bullish on this stock because it is priced below book, he thinks the CEO is doing a good job, and he likes their international business.
Stillwater Mining (SWC): Cramer is bearish on this stock and said you should own the Gold ETF (GLD) instead.
Toyota Motor (TM): Cramer wants to stay away from this stock because it could go up $10 or down $10 so he recommended Ford (F) instead.
Segment 5: Outrage of the Day
Cramer is outraged that Air Products (APD) made a $60 per share takeover offer for Airgas (ARG) and hopes that it is not successful. Cramer thinks that the price is too low for ARG and that combining the companies would be anticompetitive. He thinks that ARG shareholders would be better off if the company remained independent because he believes in ARG’s CEO.
Submitted by just another Cramerholic on Fri, 02/05/2010 - 10:10.
Segment 1: Selloff Strategies
Cramer said that days where everything goes down at once like today are not logical, and it reminds him of all of the hedge fund going wild in 2008 when they had to sell off everything they owned and drove down the entire market to very low valuations. He thinks this could go on for a while, so he wants to look for accidentally high yielding stocks like Kimberly Clark (KMB) and Altria (MO), and stocks that were down even though they have strong fundamentals like Visa (V) and Cisco (CSCO), and treat their declines as a gift.
Segment 2: Interview with Allergan (AGN) CEO David Pyott
Cramer said that you have to wonder how good any stock that went up today must be, and this company’s strong cosmestic surgery and eye care business look strong. He is particularly interested in AGN’s eye business because there have been 2 big deals in the eye care business recently that would value AGN’s eye business at $9.3 billion, which means that the entire company is greatly undervalued. Cramer said that he wants to talk to the CEO on a down day like today to see how their company is doing. Here is a summary of the interview.
1. Cramer asked if people have stopped spending money on their appearance to save for necessities, and the CEO said that is not true because their botox and breast implant sales have stayed strong, while their other medical businesses are also doing well.
2. Cramer asked if they should consider spinning off their eye care business because it is undervalued, and the CEO said he has been pointing out that it is undervalued to investors, but that he feels like it is a good fit within their company.
3. Cramer asked if new competition for Botox is going to hurt their margins, and the CEO said that this new drug in the U.S. has been in Europe for the last few years, and Botox has had a lot of success competing in that market, but they are keeping an eye on the market and they take their competition seriously.
4. Cramer asked about the Botox tax that was proposed in Congress and how they avoided its inclusion in the healthcare reform bill, and the CEO said that they organized their customers quickly and were able to convince Congress that including this law would be a bad idea.
5. Cramer asked how their Latisse eyelash enhancement product has been performing, and the CEO said that they had $74 million in sales with growth in each quarter, and they have a target of $500 million in global sales because it is a simple product and it appeals to all age groups.
Cramer ended by thanking the CEO for making money for shareholders and continuing to run a strong company.
Segment 3: Interview with Novellus (NVLS) CEO Rick Hill
Cramer said that he likes this company because semiconductor companies are doing well, and when that happens, they spend money on semiconductor manufacturing products that NVLS makes. The company reported a better than expected quarter last night, but the stock was down 4.4% today. He thinks that demand for semiconductor products will remain strong because of increasing demand in the developing world, Windows 7 sales, and IT security spending, with much of the demand coming in the second half of 2010. Here is a summary of the interview.
1. Cramer asked what a semiconductor equipment manufacturer makes, and the CEO said that they either spray down a wafer with paint, etch off paint, or clean a wafer, and a semiconductor cannot be made without a product like theirs.
2. Cramer asked about their competition and their ability to take market share, and the CEO said that there is a lot of competition in any growing market sector, but they have continued to take market share with their products.
3. Cramer asked why investors should not give up on this stock when the market is down huge like it was today, and the CEO said that this is a best opportunity for the semiconductor sector since the mid 1990s because Windows 7 is driving a IT refresh, governments are spending on technology security, and consumers are buying gadgets at a high rate, especially in China.
4. Cramer asked about the slowdown in China, and the CEO said that they are trying to slow down the housing market and avoid a bubble, but consumer demand has hit China.
5. Cramer asked about the similarities between the mid 1990s and now, and the CEO said that the driver then was the fear of Y2K, the Internet buildout, and PCs in the home, and the drivers now are wireless infrastructure buildout and the fear of terrorists.
Cramer ended by saying that this company is integral to internet security and the mobile internet tsunami, and they just happened to report a great quarter on a huge down day, so he is bullish.
Segment 4: Lightning Round!
Burger King (BKC): Cramer said that they had a good quarter and the company looks it is turning things around, but he likes McDonald’s (MCD) better because of its international business and dividend.
MICROS Systems (MCRS): Cramer said that this is too much of a niche play for him, and he would rather own Cisco (CSCO).
Allied Irish Banks (AIB): Cramer is bearish because this stock is too risky and he would rather own Citigroup (C).
Campbell Soup (CPB): Cramer said this stock is OK, along with Hershey (HSY) and Heinz (HNZ), but none of them have growth, so he would rather own Proctor and Gamble (PG).
Green Mountain Coffee Roasters (GMCR): Cramer said to buy this stock because it was down $3 today.
Frontier Communications (FTR): Cramer is worried because the dividend yield is up to 13%, and said he would rather own Windstream (WIN).
Segment 5: Interview with Waste Management (WM) CEO Larry O’Donnell
Cramer said that he likes to look for new investing ideas on down days like this one, so he looked at WM as a natural gas play in addition to its trash collection business. He likes the company’s waste collection business and the 4% yield on the stock, but he also likes that the company’s landfills put off enough natural gas to power 400,000 homes, and they use natural gas to run 425 of their trucks, which saves them $7000 per year per truck. Cramer wanted to get an update on the company. Here is a summary of the interview.
1. Cramer asked how the company makes money while protecting the environment, and the CEO that that they want to do things that create value, like capturing gas from their landfills or recycling.
2. Cramer asked about their success using natural gas to power their trucks, and the CEO said that it has worked out very well, and they save money by using natural gas, even though the maintenance costs are higher on those trucks.
3. Cramer asked how the company is doing, and the CEO said that they are in a quiet period right now, so he can’t talk about it.
4. Cramer asked about the CEO’s appearance on the show Undercover Boss and employee relations at the company, and the CEO said that he was not very good at the job on the show, they made some changes because of what he learned during the show, the company and employees have been working together to make it through the recession, and the company was able to save $120 million last year because of employee suggestions.
Submitted by just another Cramerholic on Thu, 02/04/2010 - 23:31.
Segment 1: Bulls on the Rise
Cramer said that the market has changed for the better as the bearish cases for 2010 have become weaker. Earnings reports have been strong, especially for the media companies, commercial real estate is remaining stable, the housing market is improving, the automakers are doing well after Cash for Clunkers, and the banks and drug stocks are moving higher.
Segment 2: Interview with International Paper (IP) CEO John Faraci
During last week’s Game Plan, Cramer told us to watch this stock because it reported earnings today. The company reported earnings that were a penny better than Wall Street expected, but the stock was knocked down 5.6% because people felt like the earnings beat was due to favorable accounting items. Cramer thinks that the market might have overreacted because the company generated a lot of cash flow, paid off debt, exports are higher, and inventories are low. Cramer wanted to find out how the company is doing. Here is a summary of the interview.
1. Cramer asked why the CEO was so disappointed with the quarter, and the CEO said that they didn’t run as well as they had hoped because of the cold weather, but he thinks the best days are ahead.
2. Cramer asked why now is a good time to buy stock in a paper company with prices rising and inventory low, and the CEO said that their business has a short lead time, so when shipping picks up like it did in December and January, they will see an improvement in business.
3. Cramer asked if they noticed an improvement in business when shipments were higher this year, and the CEO said that their volume is up a little bit, but they have been focused on selling a lot of boxes in the export market and improving their margins.
4. Cramer asked if they are still closing plants, and the CEO said that they closed 5 plants last quarter and laid off 11,000 people since June.
5. Cramer asked the CEO to explain the importance of cash flow to the company, and the CEO said that the company generated record cash flow of $2.2 billion in 2009, and they expect to beat it in 2010 and 2011.
6. Cramer asked if they will use that cash flow to pay a dividend, and the CEO said that they would like to do that, but they are conservative and will spend their money wisely, so they might not be able to pay a dividend until 2011.
7. Cramer asked if they are the best way to play corrugated boxes, and the CEO said that they are the biggest corrugated producer in the world.
Cramer ended by saying that you should own this stock because the company is in a great position and this is one of the cheapest stocks in the world.
Segment 3: Sell Block
Cramer said that this is a special edition of the Sell Block because it is based on a technical analysis report from a good analyst. Ken Schreve said that it is time to sell Seagate (STX) because the chart is showing signs of a top in the stock price. It has been in a bullish pattern since its March lows, but now the stock is going lower on higher volume, even after the company reported a great quarter. Cramer also pointed out that the analysts are too positive on the company, and he is worried that they are overexpanding right now. He said to take your profits from STX and buy Intel (INTC) instead because it has a better balance sheet, a better dividend yield, and it also reported a great quarter.
Segment 4: Lightning Round!
Under Armour (UA): Cramer is bullish on this stock because he thinks it is now cheap at $25.
Caterpillar (CAT): Cramer is bullish on this stock because he thinks infrastructure spending will be strong in the U.S. this year.
Marvell Technology Group (MVL): Cramer is bullish on this stock as a mobile internet tsunami play.
Google (GOOG): Cramer is bullish because they reported a good quarter and the stock is cheap.
BP (BP): Cramer said to sell it and wait for it to pull back to $50 because there is no catalyst to move the stock higher.
Verizon (VZ): Cramer said that the dividend is safe, but you want to stay away because of their price war with AT&T (T).
Segment 5: Am I Diversified?
Cramer reviewed caller portfolios but didn't make any specific stock picks.
Submitted by just another Cramerholic on Wed, 02/03/2010 - 20:26.
Segment 1: The Obama Rebound
Cramer said that Obama had shown that his bark is worse than his bite, and that he can't keep stocks down forever. He pointed to the healthcare sector as evidence, and said that he thinks the banks will follow the lead of the healthcare sector because they have moved higher 2 days in a row after Obama knocked the sector down. He recommended buying Goldman Sachs (GS) and JP Morgan Chase (JPM) because their stocks have been hurt by Obama's rhetoric, but Obama and Congress don't actually have the ability to do much damage to their earnings because they can't pass any harmful legislation. He then looked at some stocks in the healthcare and credit card businesses to see how they reacted to Obama's attacks and then recovered, and ended by saying that this is a buying opportunity for GS and JPM.
Segment 2: Budget Planning
Cramer said the biggest winners in Obama's budget for next year are the construction stocks, and he recommended URS (URS) as a way to play this move. It gets 91% of its sales from the U.S., and it works in the environmental services, military services, training operations, maintenance, and nuclear site management businesses, so it is in great position to make a lot of money from the government in the next year. He also likes that 80% of their infrastructure business is engineering services, so it will make money sooner than its competitors who focus on construction. Another reason he is bullish is that it has less exposure to China than other construction stocks, and does a lot of work with the oil and gas sector, plus the stock is cheap at 12.7 times 2011 earnings, a 10% growth rate, and a backlog that is four times its market cap.
Segment 3: Off the Charts
Cramer looked at the chart of Qualcomm (QCOM) because it is an mobile internet play that reported a terrible quarter last week, and he wanted to see if the selling would continue or not. He looked at the daily chart and pointed out that the selling should be mostly over now because the volume is weakening. The stock moved higher on Monday, and technical analysts think that it is at a bottom unless it goes below $38.50, so this is a good time to buy. Cramer said that he disagrees with the premise that a stock can be a buy at one price, but a sell at a lower price, pointed out some of the problems with the quarter, and then said that he bought some more because he thinks the stock is cheap at 16 times earnings and it has a great balance sheet, but he needs to see 1 or 2 good quarters before he will believe in the stock again.
Segment 4: Lightning Round!
Zimmer Holdings (ZMH): Cramer said this stock is OK, but Stryker (SYK) is better.
3Com (COMS): Cramer said to sell this stock because it accepted a buyout offer and there is no upside, and he recommended Akamai Technologies (AKAM) or F5 Networks (FFIV) instead.
Ebix (EBIX): Cramer said that this stock got knocked down because there were high expectations for the quarter.
Merck (MRK): Cramer is bullish because he likes their dividend and their partnership with Schering Plough (SGP).
Clean Energy Fuels (CLNE): Cramer is less optimistic about this stock because Obama didn't mention natural gas during the State of the Union.
Microsoft (MSFT): Cramer said that this is a good stock, but he likes Intel (INTC) and Apple (AAPL) better.
Motorola (MOT): Cramer said that he would not buy this stock because there is no catalyst, but you can hold onto it if you already own it, and he would rather own Apple (AAPL).
Segment 5: Mad Money Mail
Hewlett Packard (HPQ): Cramer is bullish on this stock because he likes the CEO.
Netflix (NFLX): Cramer is bullish on this stock but said you can take some profits if you owned it for a while because it has moved up so much.
SanDisk (SNDK): Cramer is bearish on this stock because all of the good news they reported was already priced into the stock, and he thinks there is an overcapacity of flash memory coming.
Broadwind Energy (BWEN): Cramer is bullish on this stock because it is cheap, and it is a good play on Obama pushing wind power.
Wynn Resorts (WYNN): Cramer is bullish on this stock because of their casino in Macau, but said that he is nervous about China because of their economic slowdown.
Submitted by just another Cramerholic on Mon, 02/01/2010 - 20:17.
Segment 1: What Happened to the Sellers?
Cramer said that the sellers left the market today because Obama and Congress didn’t issue any more attacks at the banks or any other industries today, the Institute of Supply Management released a solid manufacturing report, Greece didn’t default over the weekend, oil was higher, and ExxonMobil (XOM)
Cramer took phone calls on the following stocks:
Berkshire Hathaway (BRK-B): Cramer thinks this stock is undervalued so he is bullish.
Segment 2: Interview with EQT (EQT) CEO Murry Gerber
Cramer wanted to talk to this CEO because his company has a large amount of natural gas holdings in the Marcellus Shale and other areas of the Appalachian Basin, and he wanted to find out how the company is doing and what the industry thinks about Obama’s State of the Union speech last week. Here is a summary of the interview.
1. Cramer asked why Obama didn’t mention natural gas during the State of the Union Address, and the CEO said that we have a 120 year supply of natural gas in the U.S. and we are finding more all the time, so we could spend some of the $350 billion we spent on oil last year in America instead of overseas.
2. Cramer asked if we really can use natural gas for more than heating homes, and the CEO said that we can fuel all of the cars in the U.S. and reduce our oil usage by 75%, and that building pipelines would be a great stimulus plan because it is a wise investment and great job creator.
3. Cramer asked about their history of job creation, and the CEO said that they have created double digit employment growth for the last 2 years, and he thinks that 50,000 jobs have been created in the Marcellus Shale alone.
4. Cramer asked if clean coal is viable, and the CEO said that he doesn’t know much about coal, but they are pumping natural gas and working to make the U.S. energy independent.
5. Cramer asked if the concerns about fractured drilling are legitimate, and the CEO said that people have been doing this type of drilling for 60 years, environmental groups have done studies that didn’t find any issues, and the states are doing a good job of regulating the industry to make sure that the drilling is done safely.
6. Cramer asked why no one in Congress will stand up for natural gas, and the CEO said that he doesn’t know why, because you are for foreign oil if you are not for natural gas.
7. Cramer asked how their finding costs are so low, and the CEO said that they bought a lot of acreage in Appalachia in 2000 when it was cheap and they have a great technological team.
8. Cramer asked if we really have 100 years of natural gas in the ground, and the CEO said that it is for real, and the finds in the last couple of years are due to technological advances.
9. Cramer asked about their hedging position, and the CEO said that they are about 35% hedged in 2010 and a little less than that last year, and that is part of their cost management strategy.
10. Cramer asked what would happen if a big integrated energy company made them an offer, and the CEO said that he thinks they can triple if they execute their growth plan.
Cramer ended by saying that he thinks the CEO is being modest when he says that the company’s value could triple, and he is bullish.
Segment 3: Coal Facts
Cramer said that he thought coal stocks would drop last week when China announced that it is slowing down because the U.S. did not build a single coal plant last year, and CSX (CSX) reported that coal shipments were down, but there are still some positive reports from the industry. Peabody Coal (BTU) said that China is still going full steam ahead during its quarterly report, but then Arch Coal (ACI) missed estimates for last quarter and lowered guidance. Cramer said that the only thing that can save coal now is Obama’s promotion of clean coal and carbon capture over natural gas, even though it has many health and economical drawbacks, but Cramer doesn’t think it will be enough to keep coal usage at past levels with China trying to rein in economic growth. He wants to sell BTU and ACI along with the other coal stocks because Wall Street estimates are too high and coal usage could actually decline in 2010, and he said that the rise in the sector today is a good opportunity to get out of the sector.
Cramer took phone calls on the following stocks:
RINO International (RINO): Cramer is bearish on all Chinese stocks because their track record is so bad.
Permian Basin Trust (PBT): Cramer is bullish on this stock because he likes the dividend and doesn’t think oil is going below $70.
Cloud Peak Energy (CLD): Cramer said that he is bearish on this coal stock.
Segment 4: Lightning Round!
Brocade (BRCD): Cramer is bearish on this stock and said that he would rather own Cisco (CSCO).
DryShips (DRYS): Cramer is bearish on this stock and recommended Diana Ships (DSX) instead.
Freeport McMoran (FCX): Cramer recommended Southern Copper (PCU) instead because he is nervous about FCX’s chart and China exposure.
Apple (AAPL): Cramer said that he has been predicting a decline in the stock after the launch of the iPad, and now that the decline has happened, he is bullish on the stock.
Boston Scientific (BSX): Cramer said that he can’t get behind this stock after its $1.7 billion patent settlement with Johnson & Johnson (JNJ).
Burlington Northern (BNI): Cramer said that he would take the stock of Berkshire Hathaway (BRK-B) instead of the cash in the buyout offer for this stock.
Honeywell (HON): Cramer is bullish on this stock and said that the CEO was too negative on their conference call.
Segment 5: Mad Money Mail
Trinity Industries (TRN): Cramer is bearish on this stock because wind power is not panning out and they won’t benefit from any high speed rail spendings.
Vale (VALE): Cramer said that he sold this stock because he thinks it is too exposed to China, even though he still thinks it is cheap.
Caterpillar (CAT): Cramer is bullish on this stock.
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