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.
