March 30, 2006
Get BLING with MOVADO!!!
MINING for MAD MONEY!!!
|LIGHTNING ROUND!!||[home] T o n i g h t ' s D i s c u s s i o n ' s|
Cedar Fair LP (FUN),
Ceradyne Inc (CRDN),
Hewlett-Packard ( HPQ)
Cardinal Health Inc (CAH)
UnitedHealth Group Inc (UNH)
Agilent Technologies Inc (A),
AK Steel (AKS),
United States Steel (X)
Oregon Steel (OS)
Wheeling Pittsburgh Corporation (WPSC)
International Game Technology (IGT)
Vulcan Materials Company (VMC)
Martin Marietta Materials Inc (MLM),
Eagle Materials Inc (EXP)
Brocade Communications Systems Inc (BRCD),
Conexant Systems (CNXT)
Legg Mason Inc (LM),
Trinity Industries (TRN)
BHP Billiton (BHP)
Six Flags Inc (PKS),
Applied Materials Inc (AMAT)
Amkor Technology (AMKR)
Montpelier Re Holdings (MRH)
International Corporation (PGIC),
Encysive Pharmaceuticals (ENCY)
Of Delaware (TXCO)
FreightCar America (RAIL)
'Watch and Learn'
"Every day I try to come out here to make you some money. Let's analyze why you want to make Mad Money. It's so you can show off. You need the bling. That's why I want you to buy Movado (MOV).
My contacts have been telling me that their business is absolutely en Fuego. Accessories are hot - hot, hot, hot. I think you should accessorize your portfolio with mov.
I like MOV because, so far, this play has been unexploited. The rest of high end has moved up and mov hasn't moved up nearly as far as it should have. Perhaps it's time to do a 'mon-back on MOV.
That's what gets you named best of breed in Cramer's book.
Let's not forget China. Remember, the People's Republic of China has been creating a lot of rich people. Those rich people like to emulate Cramer and other American consumers, because it makes them feel especially rich. That's why I think they'll continue beating the numbers quarter after quarter.
The bottom line!: You want the high end? You pimp your way over to Paramus, New Jersey and you buy some Movado (MOV)!
Two thumbs up, way up!.
NTAP (NETWORK APPLIANCE, INC) and, last but not least, particularly because Deutsche Bank just upgraded it a few minutes ago, is ntap. Now, I just added this stock to my ActionAlertsPlus.com portfolio. They are the best play on data storage out there. Business needs to keep more comprehensive records because of Sarbanes-Oxley. Higher quality content over the internet means that, whoever's housing that content needs more space to store it. Now, like the others, it's already up big, I know. Cramer be buying high, and maybe be selling higher.
AKAM (AKAMAI TECHNOLOGIES, INC. ) Make the technology that lets ccompanies stream music and movies over the web. When you go to NFL.com, NCAA.com, and you see - boom, this is what I'm talking about. Talk about a big secular trend - something that's going to go, regardless of the economy. I don't anything stops AKAM on the horizon.
RACK (RACKABLE SYSTEMS, INC. ) these guys make servers and storage systems for servers. They've got a virtually impenetrable wall of patent protection. The point of rack is that you can store and operate thousands of servers while keeping them cool and, thus, saving energy. By the way, Google's biggest expense. I gave you rack back on December 23rd, now it's at 49. I still think it has room to run
FFIV (F5 NETWORKS, INC. )- It is an internet highway - someone has to manage the darn traffic. That's FFIV. They make internet security systems. They're the guys that keep the web running smoothly. FFFIV should be able to grow revenues at a 30% clip over the next couple of years. And they should also be able to keep their operating margins above 30%.
CTXS (CITRIX SYSTEMS, INC. ) interesting company - a lot like FFIV, but a little bigger, more under the radar, and a whole lot more hated from the dot com days. I think good management here. Now it's making a lot of headway with its new metaframe access suite. This gives you access to really comprehensive information resources from any location. I regard this as a PC in a package, so to speak. Also known as 'PC Anywhere.' CTXS is very profitable. It trades at just 28x earnings. Versus the growth rate, that's not that bad. Massive cash flow - very clean balance sheet.
"Manitowoc (MTW) raised their first qtr. And full year estimates on Monday - this was a big bump - and the stock jumped from a little below 82 to 93, although it's backed down a little bit today.
I gave you MTW when it mattered last month in my special 'Minerals and the People Who Mine Them' show. And, if you got in on my recommendation, you could have made some Mad Money.
Manitowoc's (MTW) number bump, based on higher than expected cranes was, frankly, massive! It was stunning! That means that things aren't just good for MTW, right? You know that there's pin action here.
It's got to be good for anyone who makes equipment for mining or construction. And, hey, if you look at some other companies, that's true. If you look back over the summer, I said buy Terex (TEX) and Caterpillar (cat), at about 47 and 51, respectively. Hey, I'm reiterating my buy. Now, both of those companies - worst of breed (i.e., TEX) and best of breed (i.e., cat) are trading in the 70's. TEX has actually outpaced CAT at this point. But, if you remember, when there's a real bull market, sometimes we embrace worst of breed on this show.
They all make the trucks and the heavy equipment you need if you want to get into the construction or the mining game. All these stocks have run. They could probably still make you some moolah. Oh, but the mad money has been made; the no-brainer money is gone. Now that they're more expensive, things are harder.
So I need you to get in on the next MTW - the next cCAT - the next Tex. And, of course, I've got it.
And that stock is H&E equipment services (HEES).
This co. Just came public two months ago. It looks like MTW, and it'll act like MTW.
Now, unlike CAT, and Tex, and MTW, HEES doesn't make things; they operate in a different part of the same market.
What these guys do is they maintain a huge fleet of industrial lift trucks, cranes, high lift platforms and earth-moving equipment.
They rent out this equipment to whoever needs it. And they also offer parts and services. They sell the equipment too, but their primary service is the rental one. We like the rental business.
If there's a boomin' demand for cranes - and we know that there is from the MTW qtr. - then there's gotta be a boom in rental cranes too.
Let me tell you why they did their IPO two months ago.
Hees is a company with a lot of debt. About $350 million on the balance sheet. This is just a $1 billion company. That we're dealing with. That's a lot of debt right?
But they didn't do the IPO to pay down debt, which would have been the expected move. No. They did it to add more capacity for rentals. They did it to buy more equipment, because their end market is so hot right now.
And you know what? They were totally right. That's why mtw just gave us the number bump; that's why CAT and TEX are doing so well.
The bottom line!: If you missed the boat on the MTW, or CAT, or Tex, because you weren't paying attention to Cramer, well then I think HEES is for you!
Last year, a whole year ago, on March 23rd, I gave you what I called the fast and the furious. We looked at the hottest and most volatile stocks out there, and I told you that they might not continue to be so sexy.
Well, today, I'm doing the fast and the furious ii. Now, last year the fast and furious were: ERTS, EBAY, TZOO, JNPR, PALM, AMZN, ELN, BIIB, ADBL, NFLX and ADSK.
These were the stocks that were really in danger of crashing and burning a year ago - that's what I said. I thought that most of them needed at least a pit stop, if not a complete overhaul, before you could feel good about owning them.
But, you know what? For the most part, momentum blew caution away, and cramer got crushed.
The average gain of this turbocharged pack of bad boys? 33.52%!
So, what's our takeaway; what do we learn from this? We learn that momentum can absolutely make you some big, big money!
I'm going to give you the new set of fast and furious stocks - stocks with incredible momentum - stocks that can make you mad money.
If you want to make a momentum basket for this year - that basket could produce strong returns - but we also have to be more careful.
This is the Fast and Furious 2: :
RACK (RACKABLE SYSTEMS, INC. )
AKAM (AKAMAI TECHNOLOGIES, INC. )
FFIV (F5 NETWORKS, INC. )
CTXS (CITRIX SYSTEMS, INC. )
NTAP (NETWORK APPLIANCE, INC. )* see left column for review on each stock
These five stocks have incredible momentum. They're all super hot; they're all up substantially. Buy, buy, buy!
And they're also, I think, all going to keep that momentum going. I don't think there's a tzoo among them.
Now, you could just buy all five of these and make yourself a momentum basket or, if you want to be more rigorous, and cramer be rigorous, you can go in there and pick your favorite one.
Now, it's not enough just to buy momentum. You have to understand that. Not every stock that has gone up will continue to go up.
You need to have a thesis that explains why the stocks will keep being hot.
All five of these stocks in the basket I think can grow earnings at 30% for the next few years. Boy, that's hard to mess with.
How 'bout the bottom line here?: You want to play momentum? You want to get Fast and furious? Then you need to take a look at RACK, AKAM, FFIV, CTXS, AND NTAP!