Submitted by just another Cramerholic on Fri, 08/27/2010 - 09:25.
Segment 1: Data Dependent
Cramer said that the market is treating each piece of economic news like it is the critical data as it is released, and then it is thrown away as soon as the next piece of data is announced, which doesn't make any sense. He said that none of the data being released is very important on its own, and when you put it together it shows a mixed outlook, so there is no need to take any real action right now.
Cramer took phone calls on the following stocks:
Schlumberger (SLB): Cramer said that this is the best stock in the sector, but
Morgan Stanley (MS): Cramer said that this stock is okay to hold on to, but the caller should sell Allstate (ALL) and Discover Financial (DFS) and remember to stay diversified in the future.
Segment 2: Interview with Hain Celestial Group (HAIN) CEO Irwin Simon
Cramer is bullish on this stock as a play on healthier products, he likes the management, they just reported an earnings beat and raised guidance, and it is trading at 15 times earnings with a 12% growth rate so the stock is cheap. He talked to the CEO about the importance of nutrition, how local governments and schools are recognizing the importance of healthy foods, how the company can benefit from China's problems with their food chain by introducing safe, healthy foods there, their partnership with Martha Stewart, how they have over 1800 products in Whole Foods (WFMI) that are shopping elsewhere and looking for organic products, how one analyst determined that the stock is undervalued, and how HAIN's management is bullish on the U.S. in 2011 because of the power of the healthy eating movement.
Segment 3: Sell Block
Cramer put Intuitive Surgical (ISRG) in the Sell Block today because the stock has lost its momentum due to weakness in the medical device sector, the stock has a bearish chart that shows signs of strong institutional selling, lower highs, and selling on high volume. Cramer said that he doesn't want to fight the professional money managers, but given that the stock is cheap, the company just reported a good quarter, raised guidance, and sold 108 new surgical systems in the last quarter, he thinks that the stock is broken, not the company, and he wants to start buying again when it hits $240.
Cramer took phone calls on the following stocks:
Celgene (CELG): Cramer said he won't recommend this stock because the CFO just left, and he doesn't know why, so he doesn't want to take a chance.
Proctor & Gamble (PG): Cramer is bullish on this stock because it is a good defensive play.
Segment 4: Lightning Round!
Apple (AAPL): Cramer is bullish on this stock but said to let it pull back before buying.
Mercadolibre (MELI): Cramer is bullish on this stock as a Latin America play.
Bancolombia (CIB): Cramer said to wait until the yield is 3% before buying because it has moved up so much already.
Costco (COST): Cramer likes the company, but said to wait for the stock to pull back to $54 before buying.
Segment 5: Interview with Green Plains Renewable Energy (GPRE) CEO Todd Becker
Cramer has been bearish on ethanol producers like GPRE because he feels like they are at the mercy of corn prices, which are subsidized and go higher as ethanol demand increases, but he wanted to give an ethanol producer a chance to change his mind. He talked to the CEO about how this industry has grown up from the last ethanol boom where a lot of investors lost money, how his company makes money managing margins instead of speculating on corn prices, how the government made the right decision to increase the amount of ethanol in fuel because it is clean burning, high octane, and doesn't hurt fuel economy, and the earnings miss that the company reported was misleading because the higher estimates were made by analysts who didn't even contact the company. Cramer ended by saying that if you like ethanol, GPRE is the way to play it.
Submitted by just another Cramerholic on Thu, 08/26/2010 - 13:40.
Segment 1: Fear Factor
Cramer talked about how many investors are worried about the negative economic news that has been announced recently, and he said that he doesn't think any individual piece of news is bad enough to knock the market down, but in total, the information could take the market down to near Dow 9300. He still wants to take profits on rallies and buy stocks with good dividends on pullbacks, but thinks that the market will keep heading down until the uncertainty about taxes, housing, and government regulation is gone.
Segment 2: Money from Membranes
Cramer recommended Polypore International (PPO) because it just hit the 52 week high list, the filtration sector is experiencing very high growth right now, it has diverse business lines with high barriers to entry, it has high gross margins, the company just reported a good quarter with its 5th earnings beat in a row, and the stock is cheap at 19 times earnings when the company has a 20% growth rate. Cramer said to buy the stock now that it has pulled back $3 from its high before it starts to go up again.
Segment 3: Merger Mania
Cramer said that merger activity has been picking up on Wall Street, and rather than trying to guess which company will be bought out next, he recommended buying Lazard (LAZ). LAZ is a financial advisory firm that specializes in mergers and acquisitions, so they will make more money as more deals are reached. Also, it is the only investment bank where their M&A advisory business is big enough for an increase in activity to improve their earnings, their fee backlog has been increasing, they managed to keep their revenues up even when deal volume was down last quarter, the rest of their asset management business is going well, they have $1.2 billion in cash, and Cramer thinks the stock can go to $49, which would be a 47% increase from now.
Segment 4: Lightning Round!
BP (BP): Cramer is bearish on this stock because he expects it to underperform for years, and he recommended Total (TOT) instead as a foreign oil stock.
Tibco Software (TIBX): Cramer is bullish on this stock because it is undervalued and it could be an acquisition target.
J. Crew Group (JCG): Cramer is bullish on this stock but said to wait until they report their quarterly earnings tomorrow before buying.
ReneSola (SOL): Cramer is bearish on this stock because he doesn't like China or the solar panel sector.
DryShips (DRYS): Cramer said this stock is okay, but he likes Diana Shipping (DSX) better.
Intuitive Surgical (ISRG): Cramer is worried about this stock, so he said not to buy it until he does some more homework and makes a final decision.
Segment 5: Am I Diversified?
Cramer reviewed caller portfolios and made the following stock picks:
Kinder Morgan Partners (KMP): Cramer is bullish on this stock.
Apple (AAPL): Cramer is bullish on this stock.
Goldman Sachs (GS): Cramer said he would rather own one of the cheaper financial stocks.
Yum! Brands (YUM): Cramer is bullish on this stock.
United Technologies (UTX): Cramer is bullish on this stock.
Microsoft (MSFT): Cramer said he would rather own Salesforce.com (CRM).
Verizon (VZ): Cramer is bullish on this stock.
