Cramer's Picks

Game Plan For The Week – Cramer's Mad Money (6/23/17)

Finances

Game Plan For The Week – Cramer's Mad Money (6/23/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Friday, June 23.

As the economic data remains mixed, there is lot of rotation going on in sectors depending upon which is more likely to perform. With that thought, Cramer dug into the game plan for the week.

Monday

Schnitzer Steel (NASDAQ:SCHN) will report earnings on Monday. A lot depends on Washington when it comes to steel. “Remember, Trump ran on preserving the steel industry above almost all others, save coal. I think he means business,” said Cramer.

Tuesday

Darden Restaurants (NYSE:DRI) and KB Home (NYSE:KBH) will report earnings.

Cramer thinks that the rise of the stay-at-home economy has not affected Darden. “Those of us who like Olive Garden know that we always feel like as though we ‘beat them,’ meaning that we get more food for less money than we could anywhere else, and maybe more than it even costs them to prepare. Why is it so hard for other operators to realize that, if you’re going to have people stay at the restaurant rather than take the food out, you’ve got to let them have seconds for free?” questioned Cramer.

KB Home has moved from $14 to $22 quickly. Cramer thinks it is due for analyst upgrades but the stock is not worth buying at current levels as it has run up too much. Toll Brothers (NYSE:TOL) is a better pick.

Wednesday

General Mills (NYSE:GIS) and Paychex (NASDAQ:PAYX) will report earnings, Cisco (NASDAQ:CSCO) will hold its analyst meeting and Fed will release CCAR results.

General Mills has disappointed for some time as it tries to reinvent itself. The top line growth is not enough and Cramer expects this to continue. “The home run would be an outright sale, but General Mills values its storied independence. And while I believe it would be a fantastic combination with none other than Mondelez (NASDAQ:MDLZ),” said Cramer.

Paychex is expected to do well when employment goes up. Cisco, on the other hand, has fallen out of favor as the market wants high growth tech stocks. “Maybe Cisco announces something that shows a brighter growth path. Otherwise I bet it will continue to sit out this multi-month tech rally,” he added.

The Fed will release the Comprehensive Capital Analysis and Review results on Wednesday. “All banks passed the stress tests with flying colors. But CCAR, as it is known, will be about green-lighting banks to return more capital. Now, the hope for many banks is that the Trump regime’s desire for deregulation will be reflected in these results and you’ll see some major dividend boosts and buyback in the wake of the news,” said Cramer.

Thursday

Constellation Brands (NYSE:STZ), Nike (NYSE:NKE) and Micron Technology (NASDAQ:MU) will release earnings.

Cramer thinks investors are underestimating Constellation Brands’ growth. All their acquisitions were at good prices and they are additive to earnings.

Nike has become controversial. “I despise battlegrounds, and Nike’s the Wall Street equivalent of the Somme. If you want to invest in apparel, go buy some PVH (NYSE:PVH), which is underrated and doing fabulously,” said Cramer.

Micron will report a blowout quarter as the street expects it to. “Micron’s management needs to raise its forecast enough to convince people that its business still hasn’t reached saturation,” added Cramer.

Friday

It’ll be the last day of the quarter. “My advice? If you’re a trader, anticipate this decline and do some selling Wednesday to get ahead of the scalpers on Thursday. But if you’re an investor, hey, I’ve got an idea. Keep your powder dry, and come in on Friday afternoon and do some buying,” concluded Cramer.

Athenahealth (NASDAQ:ATHN)

The stock of Athenahealth is up 37% in the last month. What keeps the fast growing stock rallying? Cramer dug deeper to find out.

The stock of Athena was growing for many years as the company moved towards profitability. When that happened, the strong CEO rubbed shareholders the wrong way. As expected, Athena could not deliver consistently on the bottom line and hence activist firm Elliott Management took a 9.2% stake in the company.

They think there is room for Athena to grow and are pushing for either a new management or a sale of the company. “Here’s the problem: Athenahealth has reported two bad quarters in a row and yet now its stock is only a few points away from its 2016 highs. I think it’s way too risky to speculate on takeovers in situations where the fundamentals are unsound and that goes double when the stock in question has already run,” said Cramer.

Either way, Cramer found the stock highly speculative at current levels. He thinks the easy money has been made already and one can think about buying only after a worthwhile decline.

CEO interview – Federal REIT (NYSE:FRT)

Cramer interviewed president and CEO Don Wood of the shopping center REIT, Federal REIT, which yields 3.1% and whose stock is down 12% in the current year.

“If you sit and you think about it, with every bit of retail news that happens out there, no matter what it is, it slams the REITs as much or more, in some cases, as the retailers,” said Wood. He admitted that it’s a challenging time. “Do you know that in our income stream, 8% of the income stream is grocer, 9% of the income stream is full-priced apparel, effectively, 6% is discount, 6% is residential rents, 7% is office rents? Basically, it’s the most diversified income stream in places that you wouldn’t possibly say, ‘Oh my gosh, the real estate is bad and it’s not as valuable,'” added Wood.

Wood said that the company has a strong balance sheet and their earnings are expected to grow. Their properties are strong which gives them flexibility giving them more choices when economic conditions are not favorable.

The rents have lowered over time but are up 36% in the past few months. “In some cases they’ll be able to, in other places they won’t be able to. It depends on the leverage in that particular spot,” he concluded.

CEO interview – Entergy (NYSE:ETR)

Cramer interviewer Entergy chairman and CEO Leo Denault to hear what lies ahead for this utility company that has a healthy 4.4% yield.

Denault said that though President Trump might have pulled out of the Paris accord, it does not change much for their business. “In reality, what we’re going to do with our asset mix is unlikely to be different now than it would’ve been with the Paris accord,” he added.

They continue to invest in new power plants and better technology for distribution lines and divesting their low-margin whole operations where margins are squeezed due to lower natural gas prices. “We burn very little coal as it is. We have 50-year-old coal plants. It’s only about 7% of our generation. Over time, they are going to close because you just don’t spend the money on 50-year-old plants to keep them going that you would with the new technologies being much more efficient, much more environmentally friendly,” said Denault.

Denault also added that the demand for power in their service areas is slowing due to trends like energy efficient homes. The same applies to the commercial power market as well.

Viewer calls taken by Cramer

Helmerich & Payne (NYSE:HP): It’s in pain but Cramer doesn’t recommend selling at this point. Let it come lower before buying.

Tailored Brands (NYSE:TLRD): The risk-reward is bad.

Eli Lilly (NYSE:LLY): The stock has run up. Wait for it to decline before buying.

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Nutanix Is Undervalued – Cramer's Lightning Round (6/23/17)

Finances

Nutanix Is Undervalued – Cramer's Lightning Round (6/23/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Friday, June 23.

Bullish Calls

Nutanix (NASDAQ:NTNX): This enterprise storage company is undervalued.

Reynolds American (NYSE:RAI): Hold on to the stock through the takeover.

Ulta Beauty (NASDAQ:ULTA): CEO Mary Dillon is doing a good job.

KeyCorp (NYSE:KEY): They didn’t do well with the stress test but CEO Beth Mooney is doing a good job. Cramer’s trust owns the stock.

Bearish Calls

Applied Optoelectronics (NASDAQ:AAOI): No. Buy Broadcom (NASDAQ:AVGO).

Mosaic (NYSE:MOS): It’s not a broken company but the stock is broken. Cramer prefers Agco (NYSE:AGCO) instead.

Farmland Partners (NYSE:FPI): It’s too speculative for Cramer.

FireEye (NASDAQ:FEYE): Cramer thinks Proofpoint (NASDAQ:PFPT) is better.

B&G Foods (NYSE:BGS): Their yield does not make sense since there is no growth. Cramer likes Mondelez (NASDAQ:MDLZ).

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Buy Hasbro At $110 – Cramer's Lightning Round (6/22/17)

Finances

Buy Hasbro At $110 – Cramer's Lightning Round (6/22/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Thursday, June 22.

Bullish Calls

Mattel (NASDAQ:MAT): Don’t go down the food chain. Buy Hasbro at $110 (NASDAQ:HAS), as it’s a best-of-breed name.

New York Community Bancorp (NYSE:NYCB): Cramer likes the stock, as the company should do well when the Fed raises rates.

Citigroup (NYSE:C): “They just reported the stress test with flying colors. Next week I think CEO Mike Corbat is going to ask for a bigger dividend. I think he gets it. I want to hold on. My charitable trust owns it. I like it.”

Zoetis (NYSE:ZTS): Cramer likes the stock, but he prefers IDEXX Laboratories (NASDAQ:IDXX) as a better play for the humanization of pets theme.

AbbVie (NYSE:ABBV): “There was an upgrade today. I think AbbVie’s real good. I happen to like Avid (NASDAQ:AVID) even more because the medical device business is real good, but AbbVie’s real good. I’m not worried about the patent expiration. I think they’re going to pull it off. I honestly do. I do like the group very much.”

Alexion (NASDAQ:ALXN): Cramer opines both Alexion and Incyte (NASDAQ:INCY) are fine on fundamentals and both work.

Bearish Calls

US Steel (NYSE:X): Buy Nucor (NYSE:NUE) instead, as it has greater upside.

California Resources Corp. (NYSEMKT:CRC): It’s too speculative. Sell it.

Valeant (NYSE:VRX): Bill Miller says the stock is good, but Cramer recognizes that the company’s balance sheet is not good. It’s just a momentum play, and hence, Cramer says he would not recommend it.

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The Market Is Fighting Back Amazon – Cramer's Mad Money (6/22/17)

Finances

The Market Is Fighting Back Amazon – Cramer's Mad Money (6/22/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Thursday, June 22.

The market has a lot of things to worry about, such as inflation, healthcare bill, reforms and interest rates, but it is preoccupied by Amazon (NASDAQ:AMZN). “I think the undercurrent, or I should say the undertow, of Amazon is such a dominant threat to so many consumer-related sectors in a consumer-driven economy that it’s sinking whole swaths of stock once again,” said Cramer.

“Something’s happening now. Something no one seems to be noticing, and that’s the characterization seeping in that Amazon, loved by consumers, might end up being viewed as the evil empire, he said. After the company bought Whole Foods (NASDAQ:WFM) and offered Prime wardrobe membership, the fear of Amazon has grown.

Wal-Mart (NYSE:WMT) started fighting back by asking its clients not to use Amazon Web Services but other cloud platforms instead. The company believes that though the clients have a choice to host their operations from a platform of their choice, they’d prefer not to have their information on a competitor’s platform. Oracle (NYSE:ORCL) is on the opposite side as well, as it offered better cloud offerings along with challenging Amazon on price.

The rest of the market is divided. Staples (NASDAQ:SPLS) and Nordstrom (NYSE:JWN) have decided to go private, and players like Nike (NYSE:NKE) and PVH Corp. (NYSE:PVH) have joined Amazon and are offering their products due to Amazon’s ability of attracting customers.

“Here’s the bottom line: Not everything can be crushed by Amazon and the Empire is striking back. So Amazon better not get too cocky. The force may at last be with its competitors if it does,” the Mad Money host concluded.

Diageo (NYSE:DEO)

Cramer couldn’t help but notice Diageo buying super-premium tequila brand Casamigos in a transaction potentially valued at $1 billion. The payment is $700 million upfront and $300 million in performance payments. The reason Diageo was willing to pay so much is because tequila is one of the fastest-growing categories, with average volumes doubling from 2002 to 2015.

Cramer thinks Diageo paid a lot of money. Casamigos volumes grew 650% in the same period, while all other categories have been stagnant. “The idea here is that Casamigos will help the company take share in the super-premium category, while also giving them a terrific platform to grow its tequila business overseas,” he said. “If they can keep Clooney as the face of the brand, this thing could really take off outside of the Western Hemisphere,” he added.

Constellation Brands (NYSE:STZ) had purchased tequila brand Casa Noble in 2015 for $30 million only. It was much smaller than Casamigos, though, selling just 20,000 cases a year compared to 120,000 for Casamigos. By comparison, this deal translates to $180 million, which is far lesser than $1 billion.

“Again, I’m not saying Diageo overpaid here, they’re just later to the party than Constellation. But with what Diageo’s paying for Casamigos, management says it could take three years for the deal to become additive to the company’s earnings. I don’t like that,” Cramer said.

Constellation is still the best liquor company. “Constellation’s got faster growth, and it’s proven to be the savvier operator by far. They got into tequila early, they got into wine at the right price point, purchased high-end whiskey at the right moment, and they also bought into the craft beer market before that one surged, too, all thanks to the terrific leadership of CEO Rob Sands,” he added.

CEO interview – Mondelez International (NASDAQ:MDLZ)

Cramer interviewed CEO Irene Rosenfeld of the snack food maker Mondelez to find out what lies ahead for the company.

She said that snacking patterns have changed globally as people embrace healthy living. This signals a promising path for the company. “We have the most robust health and well-being pipeline in our U.S. franchise that we’ve ever had. We’re doing lots of work in terms of renovating our core portfolio,” added Rosenfeld.

Mondelez’s new items, belVita protein, savory biscuit Vea and Good Thins, will bring over $100 million in revenue this year. The company’s exposure to emerging markets is growing, with 40% revenue coming from non-US markets.

The CEO said Mondelez has delivered good growth since its inception in 2012. The company’s margins have expanded by 500 bps, earnings have grown in double digits, and it has returned $15.6 billion to shareholders. She added that it is an American company employing 17,000 people in the US, where all but 4 product lines are made.

Rosenfeld commented on Amazon buying Whole Foods. “Every time there’s an announcement of any transaction, everybody says, ‘Oh, that’s the beginning of a big wave of consolidation.’ I think each company has to think about that for themselves. We have a fabulous portfolio, we have a fabulous geographic footprint.” Mondelez is also investing 30% of its marketing budget in digital media.

Cramer said the company has bought down its costs and it’s a good time to buy shares.

CEO interview – Yext, Inc. (NYSE:YEXT)

Yext allows businesses to manage their digital knowledge in the cloud, such as financial information, resources and performance of these resources on a consolidated basis. The company IPO’d recently, and Cramer interviewed co-founder and CEO Howard Lerman to find out what lies ahead.

Lerman said a company’s website is not the center for online experience anymore. “Every intelligence service, whether it’s Google or Apple or Facebook, they all have three layers. They have their user interface, they have their algorithms and they have their knowledge base. Their knowledge base is where Yext comes in.”

Its job is to provide companies with a one-stop shop to ensure their information is accurate when, for example, a prospective customer googles it on her phone. “It’s not enough for a business to sit back and hope that the right information is found. We proactively push the truth into the world,” said Lerman.

The CEO added that Yext’s market is huge. “There are more than 100M locations in Google Maps alone. We have a million, so we’re only 1% penetrated into what we could do. We have more than a $10B addressable market where we can go out and win. We believe, by the way, that this is a winner-take-all market.”

Viewer calls taken by Cramer

Tallgrass Energy Partner (NYSE:TEP): It’s a good stock and has a nice yield too, but all energy stocks trade together. The entire group is under pressure.

Royal Dutch Shell (RDS.A): Cramer is not a fan.

Mitek Systems (NASDAQ:MITK): The stock has made a huge move and trades at 30 times earnings. It’s too hot to be touched but is an interesting spec.

Alibaba (NYSE:BABA): It’s in great shape. This is a winning stock.

Scotts Miracle-Gro Company (NYSE:SMG): The stock is fine, but be careful, as it has made a big move.

McDonald’s (NYSE:MCD): It’s a buy at $154. Buy some when it goes lower.

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Jim Cramer’s Action Alerts PLUS: Check out Cramer’s multi-million dollar charitable trust portfolio and uncover the stocks he thinks could be HUGE winners. Start your FREE 14-day trial now!

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Market Is Divided Between Growth And Value – Cramer's Mad Money (6/21/17)

Finances

Market Is Divided Between Growth And Value – Cramer's Mad Money (6/21/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Wednesday, June 21.

The market is highly bifurcated and there is a battle between growth and value stocks. “As hot as you may think FANG stocks are, and Nvidia (NASDAQ:NVDA), maybe, let me tell you something: Other than Amazon (NASDAQ:AMZN), they don’t hold a candle to the upward velocity of so many other growth names in this very broad growth rally,” said Cramer.

Biotech stocks are getting hotter since Trump has appointed pharma-friendly people to key positions. High quality stocks like Celgene (NASDAQ:CELG) and Regeneron (NASDAQ:REGN) have rallied in the last month on very little news. Johnson & Johnson (NYSE:JNJ) also rallied signaling that the rise is not just restricted to biotech. “I think the main driver here is the rotation into the stocks of companies that do well when the economy’s weak or when there’s deflation — and boy, is there deflation — along with the fact that Trump isn’t gunning for the pharmaceutical industry. It doesn’t hurt that JNJ is also the ultimate stock to buy when the dollar gets weak, and it’s been getting a little weak,” said Cramer.

In the tech sector, the cloud names like Workday (NYSE:WDAY), ServiceNow (NYSE:NOW) and Red Hat (NYSE:RHT) have rallied. Adobe (NASDAQ:ADBE) and Oracle (NYSE:ORCL) reported good earnings and their stocks went up. “In other words, it almost doesn’t matter which growth stock you buy, because they all seem to go higher. It’s been an extraordinary watchword for growth, even if it sounds less poetic than the usual ‘sell in May and go away’ nonsense,” said Cramer.

When it comes to growth stocks like Nvidia and Advanced Micro Devices (NASDAQ:AMD), Cramer said he likes both stocks but they have become risky. Both have moved up a lot and tend to be volatile with constant rotation. He suggested if investors buy at such high prices they should be ready for the stock to pull back and buy more.

There are many value names in the energy sector that are declining as oil has slipped to a 10-month low. Retailers and auto stocks are also getting clobbered. “It’s no country for old value. Growth reigns supreme. Valuation parameters are ignored. And cheap? Seemingly cheap stocks just get cheaper and more painful to own every day. Value may make a comeback someday, maybe we will get mergers, but right now, this market worships at the altar of growth, and growth alone,” concluded Cramer.

CEO interview – Adobe

The stock of Adobe hit an all-time high after their recent earnings. Cramer interviewed chairman, president and CEO Shantanu Narayen to find out what lies ahead for the company and what the partnership with Microsoft (NASDAQ:MSFT) brings to the table.

Narayen said that the partnership with Microsoft will bring a brighter future. “When you think about what we can do with the combination of what they’ve done with Dynamics and what we have done with the Experience cloud and the Marketing cloud, together we can go in and automate both sales and marketing with artificial intelligence,” he added.

AI has become the center of Adobe’s business as it incorporates machine learning into products like Adobe Sensei. “The volume of data that we are tracking and enabling people to understand and infer things from that will help a creator be a better creator. That will help a marketer be a better marketer,” said Narayen.

Their product Adobe’s Experience Cloud manages customer interactions and advertising and processes 100 trillion transactions a year. All this data is used in machine learning. “It’s a way to really bring creativity to the masses. And it’s a way to enable everybody to be a creator. We partner with great companies like Nvidia who are able to process this in real time, but it’s all the magic that’s created by our product folks,” he added. Also, 86% of the company’s revenue is recurring.

He spoke about the tech council meeting in Washington. “Design and aesthetics have never been more important, and I think as it relates to modernizing government, all businesses are transforming so that the customer experience is front and center. There’s no reason why the government shouldn’t do exactly the same,” he said.

CEO interview – Red Hat

Red Hat is the top provider of Linux based open source operating systems. They reported terrific earnings after which the stock took off. Cramer interviewed CEO Jim Whitehurst to hear how Red Hat will benefit from telecom’s 5G rollout.

“All the major telcos are going to a technology called OpenStack, and we’re the largest provider of OpenStack, we’re the largest contributor to that whole set of technologies, so we expect it could be quite large for us. In fact, three of the four large telcos in the U.S. already have eight-figure relationships with us in place, and those are really just scratching the surface with very small implementations,” said Whitehurst.

Whitehurst also added that since 5G is a new market, he wanted to mute expectations. “It’s still early days, but the market opportunity’s there. And our business model, with a stable, long-life support, fits really, really well with telco infrastructure which, once it goes in place, it’s going to stay there for a decade. It’s a perfect market for our business model. Now we have to execute into it,” he added.

They are helping clients move their operations to the cloud along with deals from government agencies. Though he has not been invited to the White House, the government is also embracing the open-source model.

CEO interview – SunTrust Banks (NYSE:STI)

The stock of SunTrust Banks has not moved in a year despite a decent last quarter. Cramer interviewed CEO Bill Rogers Jr. to hear what lies ahead for the banking sector and ease of regulations.

Rogers is not worried about the bank’s short-term performance. They operate in the southeastern part of the US and it is conducive for growth due to good infrastructure and a solid tax base.

He also commented on banking regulation since the financial crisis by saying, “If you think about the stress test, it was constructed to build capital, and now it needs to optimize capital. So I think we’ve gotten through the build phase, and regional banks have been released from the qualitative part of the stress test, so that’s the first step. So I think, over the next few years, we’re going to be able to optimize our capital much better than we’ve been in the past.”

They have implemented a lot of financial health to help 75% of Americans. “There’s a lot of stress in America from a financial standpoint. I mean, 75% of Americans are in some type of financial stress, 40% don’t have $2,000 saved for an emergency, one-third don’t have anything saved for retirement. When it comes to millennials, it’s 60% that don’t have $2,000. So this is a fragile recovery from that standpoint, and we view we’ve got to play a real role in that,” said Rogers.

They have over 30 companies piloting the program and nearly all participants are saving more than they were before.

Viewer calls taken by Cramer

Exxon Mobil (NYSE:XOM): It’s a good company and Cramer believes that oil can bounce. The oil group is still in pain though, which could hurt the stock further. In the long run, alternative energy will hurt fossil fuel stocks.

The Kraft Heinz Company (NASDAQ:KHC): There have to be mergers in the food industry but Warren Buffett doesn’t like going hostile.

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Jim Cramer’s Action Alerts PLUS: Check out Cramer’s multi-million dollar charitable trust portfolio and uncover the stocks he thinks could be HUGE winners. Start your FREE 14-day trial now!

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TG Therapeutics Is A Buy – Cramer's Lightning Round (6/21/17)

Finances

TG Therapeutics Is A Buy – Cramer's Lightning Round (6/21/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Wednesday, June 21.

Bullish Calls

HD Supply (NASDAQ:HDS): “You can’t leave the House of Pain. You’re stuck, I’m sorry. It’s like flypaper.”

Lockheed Martin (NYSE:LMT): There is upside left. It’s a good situation.

TG Therapeutics (NASDAQ:TGTX): It’s a heavily shorted stock but Cramer thinks their lymphoma drug is positive. It’s a buy.

Editor’s Note: There were no bearish calls on Wednesday’s show.

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Jim Cramer’s Action Alerts PLUS: Check out Cramer’s multi-million dollar charitable trust portfolio and uncover the stocks he thinks could be HUGE winners. Start your FREE 14-day trial now!

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Don't Follow Bonds Blindly – Cramer's Mad Money (6/20/17)

Finances

Don't Follow Bonds Blindly – Cramer's Mad Money (6/20/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Tuesday, June 20.

Bonds are boring compared to stocks but they always signal something. “Why should we trust bonds more than our own brains? A couple of reasons. First, bonds represent trillions of dollars of activity, much more money than the stock market. You ignore trillions of dollars of decision making and fire power at your own peril. Second, they are correct about the direction of the stock market,” said Cramer.

On Tuesday, bonds rallied and interest rates fell signaling a slowdown. Cramer said that just because this happened, stocks are not doomed but they suggest that the demand is weak. He gave his reasons as to why bonds rallied:

  • Oil has fallen to $43.
  • Amazon (NASDAQ:AMZN) announced Prime Wardrobe Service where you can try clothes at home and send back items that don’t fit. Cramer added that Amazon is wrecking the price structure of everything. It is moving inflation to a point where rates do not need to be raised.
  • The deflationary push is coming from the inability of Congress to pass bills on infrastructure and tax cuts.

These three deflationary factors are pushing stocks down. Bonds cannot be ignored. Tomorrow, bonds could take us in another direction, or they could be more positive about growth. “They do play it pretty close to the vest, you know. So I say don’t ignore the bond market, but don’t let it be your master. Common sense can always be a factor,” concluded Cramer.

CEO interview – IBM (NYSE:IBM)

Cramer interviewed chairman, President and CEO Ginni Rometty to hear her take on the future of the company and her visit to the White House.

She gave her views on Warren Buffett selling shares due to competition in tech, “We’ve traded publicly for 100 years out there. And the trick to being a company in tech, which is a viciously competitive environment, that’s absolutely right, is you’ve got to keep reinventing. And what IBM is for is for someone who values high value as a company. He has just revalued the company differently.” She added that Buffett still owns 50M shares in IBM. She is at peace with Buffett’s decision as the company yields $4 and has a strong balance sheet with lots of cash. “I let every investor speak for themselves, and I’m very appreciative of all our investors,” she added.

Her meeting in Washington was about upgrading the government’s IT infrastructure and also about educating the next generation of IT professionals. They have already started on apprenticeships and are considering a six-year high school curriculum.

She commented on Watson – their AI program. “We are the ones that woke up the AI world here again. Their employees call it cognitive programming. There’s a reason we call it cognitive. It’s about augmenting what you and I do so we can do what we’re supposed to, our best. And then that’s the IBM that takes that technology and the know-how about how the world works and puts that together and actually changes business. We are the champion for business,” said Rometty.

Their AI is different from what consumers use. “Consumer AI in your home, it’s typically speech detects to a search. That’s fine. That’s great. But we deal in the enterprise world, so this is training Watson. Watson is trained in industries: What does underwriting do? What does a tax preparer do? What does a doctor do? What does a customer service agent do? What does a repair person do? And it helps them be better, and, in fact, helps them do their job,” she added.

More than 1B people will interact with Watson by the end of 2017. It will play an important role in reforming the healthcare system. “We will be able to address, diagnose and treat 80% of what causes 80% of the cancer in the world. If that’s not motivating, I don’t know what is,” said Rometty.

She talked about block chain and described it as exchange of technology in a trusted environment. Bitcoin is an example of block chain. IBM is also deploying secured technology for food safety, cargo shipping and other applications.

Off the charts

Cramer went to technical analysis with the help of technician Larry Williams who explained decennial market cycle. According to this theory, stocks move in 10-year patterns. They move higher in years ending three, seven and ten and go lower in years ending five, eight and nine.

Based on this theory, the charts of the Dow show that it is due for a pullback in July before having a bigger decline through November. This theory tells the timing of the decline and not the size, and the decline is not an indication of a bear market or recession.

CEO interview – Wix.com (NASDAQ:WIX)

The stock of web-hosting provider Wix is up 58% in 2017. Their last quarter was good with 50% revenue growth. Cramer interviewed co-founder and CEO Avishai Abrahami to find out what lies ahead.

Abrahami admitted that there is lots of competition in the space but added that they are the leaders by a huge margin due to superior technology and Super Bowl advertisements. “Today there is a lot of smaller platforms, mostly in the United States. Squarespace would be one, Weebly would be another. But I think that the technology gap between us and them is so huge,” he said.

Many businesses are not on the web yet and as a result they have been adding more than 2M customers a month. They also offer search engine services and more than 65% of the users who complete their recommendations end up on the first page of the web search.

“It’s actually true, you can come to Wix and build a website for free. And then when you start to use more business fixtures – you want to have e-commerce, you want to have ways for people to book your services – this is where we charge,” said Abrahami.

Viewer calls taken by Cramer

Tellurian (NASDAQ:TELL): Anything energy is under pressure right now. Stay away.

Pitney Bowes (NYSE:PBI): They are doing good things lately but he’d like to interview the CEO to know more before opining.

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Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

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Smart & Final Cannot Compete With Amazon – Cramer's Lightning Round (6/20/17)

Finances

Smart & Final Cannot Compete With Amazon – Cramer's Lightning Round (6/20/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Tuesday, June 20.

Bullish Calls

AK Steel (NYSE:AKS): It’s a decent spec, but Cramer prefers Nucor (NYSE:NUE) especially when there is good news expected from Washington soon.

Cara Therapeutics (NASDAQ:CARA): Their anti-itch and blood-brain medicine is better than others.

Bearish Calls

Smart & Final (NYSE:SFS): “They’ve been around for a long time. I used to go there. But I have to tell you, it’s the kind of stock that is just going to keep going lower because everyone’s decided that Amazon’s (NASDAQ:AMZN) going to destroy everything, including Smart & Final. I don’t think it’s going to happen, but it’s going to keep going lower.”

SemGroup (NYSE:SEMG): The yield is high but everything in the oil sector is going down.

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AT&T Has Growth And Dividend – Cramer's Lightning Round (6/19/17)

Finances

AT&T Has Growth And Dividend – Cramer's Lightning Round (6/19/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Monday, June 19.

Bullish Calls

AT&T (NYSE:T): Cramer likes the dividend and its growth prospects.

At Home Group (NASDAQ:HOME): “We said it was one of those IPOs that nobody cared about, and it was so right. It’s like Canada Goose (NYSE:GOOS), nobody cared about that one either. Another good one.”

Ultra Clean (NASDAQ:UCTT): It’s a great ancillary semiconductor play that Cramer likes.

Bearish Call

Marathon Oil (NYSE:MRO): The refiner Marathon Petroleum (NYSE:MPC) is in a good situation and not Marathon Oil.

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Money Is Flowing Back Into Growth Stocks – Cramer's Mad Money (6/19/17)

Finances

Money Is Flowing Back Into Growth Stocks – Cramer's Mad Money (6/19/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Monday, June 19.

The sellers seem to have disappeared. Be it technology, financials or biotech, the buyers returned in all the groups on Monday. “Every time you think they’ve buried technology stocks, it turns out to be precisely the moment to buy them. Every time you think they’ve abandoned the growth stocks, no, they’re right back there. Every time you’ve written off the industrials or decided the latest Fed rate hike means nothing to the banks, the money flows right back into the group,” said Cramer.

The bank stocks were up due to two rate hikes and regulatory reliefs. “I was pretty astonished last week that these stocks traded down when both the Treasury and the Federal Reserve gave them kisses,” he added. In the tech group, names like Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Adobe (NASDAQ:ADBE) were up after President Trump’s tech summit.

In the biotech group there was strength as Trump’s promise of lower drug prices is on the cards. “The director of health program Joe Grogan is crafting the executive order about pricing. That’d be fabulous news for the drug industry. Why? Because Grogan’s previous job was the head of federal affairs for none other than Gilead (NASDAQ:GILD), which created a hepatitis C cure that costs $80,000. Hard to believe he’ll crack down on high prices for drugs,” said Cramer.

“The bottom line is there’s always money that wants to play the trend of the day and today the trend is to buy banks, tech and health care, and all three are getting a boost from Washington. With Russia and health care reform off the table for a day, you can see what happens. These three sectors catch a fabulous bid, the seller walks away and the stocks fly up in unison, and those who brave the negativity walk away all the wealthier,” concluded Cramer.

CEO interview – Goldman Sachs (NYSE:GS)

Cramer interviewed Goldman Sachs’ chairman and CEO Lloyd Blankfein to find out his take on the economy and affairs in Washington.

When asked about the overall economy, Blankfein said, “I’d say things are pretty good. If you looked at things statistically, you looked at the numbers, you looked at the metrics, the United States at full employment, low energy prices, growth – a lot of the metrics are all positive.” Europe and China are also growing, but at a slower pace.

Blankfein mentioned that he was not on board with Trump’s agenda and realizing the tax cut and infrastructure spending would take time. “I know that there’s some people who believe, as do we all, that sensible regulation is good, but there was some redundancy and there’s been a bit of a wax built up as layers and layers have gotten on it and no doubt impeded the economy, and he represented trying to deal with it. I’d say the market now is not what he wants to do, but whether he’ll be effective in accomplishing it,” he added. He also said that the economic situation in the US will not get worse if Trump does not accomplish much.

He also commented on the banking crisis. “You had a severe banking crisis, which always takes time to sort out because, again, banks are, in a lot of ways, the transmission mechanism for economic growth. You can change interest rates, but at the end of the day, someone has to lend and the banks have to be in better shape so they have to be recapitalized. So if you do it by comparison to the Great Depression, that took 10 years to sort out. At the end of the day, this might also take 10 years to sort through,” said Blankfein.

He said the credit needs to be given to country’s Fed for guiding the country through the crisis. “We didn’t have 25% unemployment in the country like in the Depression. In fact, it never got to really 10% unemployment, and I think all that stimulus, all that interest rates being dropped to 0, all that quantitative easing in this country, achieved shallower recession.” While Goldman was fined for wrongdoing, it is easier to look at things in hindsight and introspect. Nobody really saw it coming. “It was bad behavior. But who got it right? Did the Fed get it right? Did the pundits get it right? Did all the observers of the financial market who were active then say, ‘You’re lending too much money against real estate, this is a dangerous thing?’,” he added.

Blankfein said he takes to Twitter for voicing his opinions. Earlier these were communicated through a Press Release, but nowadays Goldman can comment on anything they have an expertise on or be it issues relating to LGBT or travel ban.

Amazon and the grocery business

Amazon is about to change the landscape of grocery business according to Cramer. He adds that this phenomenon is new to younger investors but those who have seen it all know that it’s real.

He remembered a time when Wal-Mart (NYSE:WMT) was growing. All the small retailers had to shut shop in two years and Wal-Mart was a low cost producer. Today, Amazon is a low cost producer with latest technology and a highly efficient delivery system.

Amazon is doing to Wal-Mart what Wal-Mart did to small retailers. He said that the pain in the grocery business has just begun.

Viewer calls taken by Cramer

PayPal (NASDAQ:PYPL): It’s beginning to monetize itself. It’s a winner.

Estee Lauder (NYSE:EL): Cramer would be a buyer even at the 52-week high.

::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::

Jim Cramer’s Action Alerts PLUS: Check out Cramer’s multi-million dollar charitable trust portfolio and uncover the stocks he thinks could be HUGE winners. Start your FREE 14-day trial now!

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