Cramer's Picks

Buy Activision Blizzard For eSports – Cramer's Lightning Round (10/19/17)

Finances

Buy Activision Blizzard For eSports – Cramer's Lightning Round (10/19/17)

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

Bullish Calls

Activision Blizzard (NASDAQ:ATVI): Buy ATVI, as it will be the king of eSports. Cramer’s trust owns it too.

Enterprise Products Partners (NYSE:EPD): It’s one of the few good MLPs to be in.

Xilinx (NASDAQ:XLNX): Xilinx is making a comeback. If it goes down, someone will buy it.

Global Payments (NYSE:GPN): “I like Global Payments. I like PayPal (NASDAQ:PYPL) more. I like MasterCard (NYSE:MA) and Visa (NYSE:V). I think this is a very smart area to be in,” Cramer said.

Tower Semiconductor (NASDAQ:TSEM): There are better stocks out there, but Cramer thinks this one’s fine.

Priceline Group (NASDAQ:PCLN): “I think you’re fine with Priceline. Priceline is a play on the way people travel in this world, and Priceline’s good. I did like Expedia (NASDAQ:EXPE) more, but the CEO left, so we have to make some changes.”

USG Corporation (NYSE:USG): It’s going to go up more, as it is the registered trademark of U.S. gypsum.

Bearish Calls

International Game Technology (NYSE:IGT): There isn’t much upside left here. Book profits.

Omega Healthcare Investors (NYSE:OHI): Cramer likes Ventas (NYSE:VTR) in this group.

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Buy On Pullback Is A Good Strategy – Cramer's Mad Money (10/19/17)

Finances

Buy On Pullback Is A Good Strategy – Cramer's Mad Money (10/19/17)

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

Stocks sold off their highs on Thursday. “That’s when you need to go over all your notes that were written in a calmer moment after watching the show about what to buy, your shopping list and how, if you get a pullback that has nothing to do with the merchandise that you want, damaging just the stock but not the company, you should use it to pounce at sale prices rather than being so confused by the fog of war that you panic like everyone else,” said Cramer.

It began with Unilever’s (NYSE:UL) weak earnings and drop in Apple’s (NASDAQ:AAPL) forecast. As every selloff is different, Cramer warned that simply buying recession-proof names will not help ad charts for these companies show more downside ahead. It’s best to buy the stock of companies that have recently shown strength on fundamental basis.

IBM (NYSE:IBM) showed it was at a turning point but Cramer thinks it isn’t pulling back. Adobe (NASDAQ:ADBE) wasn’t either at they pre-announced strong earnings. Johnson & Johnson (NYSE:JNJ) will also maintain its gains due to strong earnings. Apple however may go lower as the iPhone 8 news gets priced in and that would be the time to buy it.

Companies that have reported strong earnings and got analyst upgrades should be looked at. “Abbott Laboratories (NYSE:ABT), down this morning after reporting a fabulous quarter yesterday. Unfortunately, the discount didn’t last past the morning. But if you caught it, hallelujah!” Cramer things FANG stocks are going down on profit taking, but he thinks Alphabet (NASDAQ:GOOG) is worth buying after announcing $1B funding in Lyft (Private:LYFT).

“The buy on a pullback strategy is not a myth, it’s just that you need the guts to actually stick with your game plan when everything is getting crushed and everyone around you is panicking. And, repeat after me: nobody ever made a dime panicking,” concluded Cramer.

CEO interview – Skyworks Solutions (NASDAQ:SWKS)

As the tech world changes rapidly, semiconductor stocks like Skyworks have become important. The stock is up 38% for the year and they had a good last quarter in July. Cramer interviewed CEO Liam Griffin to know what lies ahead.

When asked about the cellphone market saturating, Griffin said, “I think the cell phone market is incredibly healthy and it’s really about the data; this mobile internet economy is incredible. It’s what we do at work, how we play, how we educate, how we interact socially. That’s not changing.” The top five companies in the S&P500 are all mobile-centric companies. “Mobile growth is really the catalyst behind what we do, and that forces companies like Skyworks to develop more creative engines to make that mobility happen,” he added.

Commenting on the current telecom spectrum, Griffin said that it is in a digital traffic jam. 3G and 4G will not be enough to handle the numbers of mobile users in the world soon and hence 5G is the next thing. “5G is going to solve this. It’s going to be a brand new network. If you look at the five billion mobile subscribers that are walking around this earth today, and two billion without a phone, the five billion 3G and 4G users will upgrade to 5G. New frequencies, new filtering, new technology for us. So all of that is forward-looking.”

The company has a good cash position and they have been able to double their revenues in the last four years and increase their operating margin to 40%.

1987 market crash

Cramer remembered the major market crash of 30 years ago. The black Monday in 1987 had a bad crash that wiped out 20% of the market value. “But as bad as Black Monday was, believe it or not, it was the next day; Terrible Tuesday, as it was known back then that really scared the bejesus out of people,” said Cramer.

Nothing worked on Tuesday. “It was as if the world had ended and it didn’t matter what you owned, it was going to be beaten down to a pulp by the endless cascade of Chicago S&P futures raining on the New York Stock Exchange,” said Cramer. He had started his fund in Feb 1987 and he got a call from Karen Cramer who was a trader at a large institutional firm to sell everything. He sold his entire position apart from small holdings in JNJ and the put option made him $100K.

However, it was unclear whether he will be paid or not. When the then Fed chairman announced liquidity, things started to get normal. Cramer received the money in the following week. Everyone asks Cramer if he took advantage of the market as the economy was healthy, to which he said, “First, you didn’t know the economy was sound. Markets are supposed to be forecasting machines, and even though the economy seemed strong, you simply could have no confidence that it would stay that way after two disastrous days. Second, and more important, there was no, what we call, price discovery. You just couldn’t get a market of any size because nobody could figure out what the prices should be for great American companies. The market flat-out failed.”

People are comparing the markets today to that of 1987. “My takeaway is that while the machines do rule, at least we have circuit breakers that slow things down and make it so the market does function, albeit at times in a fashion that forces you to use limit, not market orders, so you don’t get picked off as many were in the flash crash a few years ago,” he concluded.

CEO interview – Winnebago Industries (NYSE:WGO)

Winnebago Industries is the maker of motorized and towable recreation products along with support and services business. Their stock went up by 3% on strong earnings and is up 44% for the year. Cramer interviewed CEO Michael Happe to know what lies ahead.

“Winnebago has been synonymous with the RV lifestyle throughout its history. But what we’re seeing today is really this race for people to get outdoors and create memories and create experiences,” said Happe.

They are on a high growth trajectory and are investing to increase capacity to meet market demand. They have recently acquired RV maker Grand Design and the industry experts highest level of RV shipments in 2017.

Happe added that 80% of the RV owners still want to be connected when on the road. Hence their new products are equipped with technology to enable them.

Viewer calls taken by Cramer

Advanced Auto Parts (NYSE:AAP): Amazon (NASDAQ:AMZN) entering auto-parts business is hurting the company. Don’t buy.

Tutor Perini (NYSE:TPC): The infrastructure situation is very hard in the US. Don’t buy until the situation improves.

Government Properties (NYSE:GOV): Looking at the political landscape, Cramer doesn’t feel the certainty for the stock.

Blackstone (NYSE:BX): They have and raised a lot of money. It’s a plain buy.

Freeport-McMoRan (NYSE:FCX): It needs China to be on fire to go up. There are better stocks to buy.

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Market Is Not Waiting For Tax Reform – Cramer's Mad Money (10/18/17)

Finances

Market Is Not Waiting For Tax Reform – Cramer's Mad Money (10/18/17)

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Broadcom Is A Good Pick In Semiconductors – Cramer's Lightning Round (10/18/17)

Finances

Broadcom Is A Good Pick In Semiconductors – Cramer's Lightning Round (10/18/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Wednesday, October 18.

Bullish Calls

Shopify (NYSE:SHOP): “Shopify itself is a little pricey stock. I know that Andrew Left at Citron Research has said some very negative things about it. But it is still an important small- and medium-sized business website, so I think it’s fine. I’m not going to pound the table on it after Left’s comments, but I’m not going to tell you that I think it has to go.”

Sierra Wireless (NASDAQ:SWIR): It is a good company in communications. Cramer thinks Broadcom (NASDAQ:AVGO) is better.

Aerojet Rocketdyne (NYSE:AJRD): Cramer likes the stock but he prefers Raytheon (NYSE:RTN) over it.

Editor’s note: There were no bearish calls on the show

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Markets May Be Cheaper Than We Think – Cramer's Mad Money (10/17/17)

Finances

Markets May Be Cheaper Than We Think – Cramer's Mad Money (10/17/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Tuesday, October 17.

As the Dow hit 23,000 for the first time, Cramer had a contrarian thought. “Maybe stocks are cheaper than we think. When we see gigantic Dow Jones components jumping like small capitalization stocks, which helped the venerable index trade through 23,000 at one point today, we do know that something real is afoot,” he said.

Stocks are valued on future earnings and things are looking good in this quarter which hints at a brighter future. Cramer pointed at four stocks which show the market is cheaper.

  1. Johnson & Johnson (NYSE:JNJ) reported strong earnings with good growth. Yet its stock trades at 18 times next year’s estimates. This is low compared to peers like Colgate (NYSE:CL) which trades at 26 times earnings, Clorox (NYSE:CLX) at 24 and Procter & Gamble (NYSE:PG) at 22. “Moreover, JNJ has the single best balance sheet of any major American enterprise,” said Cramer. “You could argue that all of these stocks deserve to go dramatically lower, but I just think they’re expensive and JNJ is ridiculously cheap,” he added.
  2. UnitedHealth (NYSE:UNH) reported strong earnings as well with 21% revenue growth. The stock trades at a P/E of only 19. “Now, you could say that the earnings from operations only increased by 13%, but still, 19 times earnings for 13% growth? That’s a steal, which is why the stock rallied $10 today and closed at $206, an all-time high,” said Cramer.
  3. Morgan Stanley (NYSE:MS) reported earnings growth with a steady wealth management business. It trades at a P/E of 14. “Its valuation makes no sense to me. Same goes for JPMorgan (NYSE:JPM), which is also selling at 14 times earnings with the best growth I can recall, the lowest non-performing loans I can remember, and a new rate cycle ahead that could raise earnings by billions of dollars; and the company doesn’t need to add a soul to its workforce to get that return,” said Cramer.
  4. Lastly, Apple (NASDAQ:AAPL) has always been one of Cramer’s favorite stocks. “I often want to ask them, ‘Hey, do you use Samsung?’ I mean, really,” he said in reference to analysts who question Apple. Cramer thinks it is the best consumer product company in the world. “I think it could charge double for its service business and people would have to pay up because there’s nowhere else to go, it’s the only ecosystem that is seamless. Yet the darned stock sells for less than 15 times next year’s earnings estimates.”

In 1987, stocks traded at 29 times earnings and the interest rates were 7%. A pullback would be an opportunity for buyers.

Off the charts

“Even if the greatest bull run in ages is going on, there are losers and there are laggards, and they help define the action as much as the winners do,” said Cramer. Consumer staples is one such sector that has been sub-par. Cramer went to the charts with technician Ed Posni to see the direction of consumer staples.

He reviewed the chart of Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) first as it follows major consumer companies. It has traded flat since February and the charts show negative signs for the future. The head and shoulders formation shows a bearish pattern and it broke the neckline, which is a sign of an upcoming drastic pullback. Its trading below its 50-day and 200-day moving average and the 50-day average is about to go below its 200-day moving average.

“That’s an extremely negative sign, so negative that technicians like to call it the death cross. It’s very difficult to fight a bad chart and it’s doubly difficult to fight a death cross. In short, based on what Posni’s seeing here, the consumer staples ETF is in trouble,” said Cramer.

The next was Kraft Heinz (NASDAQ:KHC) as consumers have started demanding organic food instead of artificial and packaged food. KHC has been making lower highs and lower lows signaling a downtrend. It has fallen to $77, which is below its floor of support at $80. “Broken support is another one of these things technicians don’t want to see. It often signals a further nasty decline. It’s an ugly chart,” said Cramer.

When it comes to major food company General Mills (NYSE:GIS), things don’t look good either. It is trading at $51, which is below its floor of support at $53 and showing a downward trend. “If you want a healthy bull market, the consumer staples stocks are exactly the ones we need to leave behind. These are classic, recession-proof names that investors buy when they’re worried about a slowing economy. The fact that they’re being sold indicates Wall Street is more confident about the future,” concluded Cramer.

Netflix (NASDAQ:NFLX)

Netflix reported great earnings and subscriber growth and yet the stock rallied only a little and then fell in the next few days. “When everyone expects the numbers to be phenomenal, it’s very difficult to blow people away, no matter how excellent the quarter really is. And make no mistake, this was an absolutely fabulous quarter. Not perfect, but really, really great with even better guidance,” said Cramer.

Netflix doesn’t trade like a traditional stock on earnings, but on subscriber growth. While analysts were expecting 4.5M new subscribers, the company reported 5.3M. Some things to be concerned about are the piling debt and their cash burn. However, as viewers are willing to pay up for content, this should not be a problem in the long run.

“Remember, these declines tend not to last very long in this market if the companies behind them are growing like weeds, as this one is, and the analysts who recommended it before will reiterate their buys with raised price targets; in fact, that process has already started. In a few days, buyers will swarm back to the stock, which I believe is worth a lot more than its current market cap because of the vision, the artificial intelligence and the fact that Netflix is one of the great bargains of our era,” concluded Cramer.

Off the tape

Cramer went off the tape to review the privately held ThoughtSpot, which is into big data and develops business analytics search software. Their AI platform can be used to search streams of data like Google search without being trained as a data analyst. Cramer interviewed founder and CEO Ajeet Singh to find out more about the company and his views on big data.

“We believe that the future belongs to ease of access of data, and we look at big data not as a visualization problem, but really, as a human scale problem,” said Singh. For every data analyst, there are 600 data users asking for data reports. ThoughtSpot solves the problem for both of them.

Tools like Tableau are good to bring data to the average user, but one still needs an analyst to make sense of that data. “You still need an expert analyst to build a nice dashboard, and it takes about a week to do that. You need, really, fundamentally built technology that can be used by an average business user, and that is what ThoughtSpot provides,” added Singh.

They already have 12 Fortune 100 and 35 Fortune 500 customers and their platform is integrated into an enterprise’s system and connected to various data sources and end users. ThoughtSpot is a streamlined program that can be connected to any system to extrapolate data.

He also gave his take on AI. “There has been a lot of discussion about AI taking over the world. I don’t subscribe to that dystopian view of the world. I really think that the key is going to be trust between man and machine,” he said. “The humans will control the lanes in which AI will have to drive, and that is also a very key thing for ThoughtSpot. Because every time we enable trust between the solution we are providing, we allow our users to look into what we did. So AI is not a black box for them.”

Viewer calls taken by Cramer

Impax Laboratories (NASDAQ:IPXL): Cramer is not a believer in the generic drug industry.

Gray Television (NYSE:GTN): Take half off and let the rest run. Cramer doesn’t like how the group trades.

Viacom (NYSE:VIA): It’s a value trap. Get out of the stock.

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Delta Air Lines Is Cheap – Cramer's Lightning Round (10/17/17)

Finances

Delta Air Lines Is Cheap – Cramer's Lightning Round (10/17/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Tuesday, October 17.

Bullish Calls

Delta Air Lines (NYSE:DAL): It’s cheap. Buy it.

BioTelemetry (NASDAQ:BEAT): Cramer is a fan.

Littelfuse (NASDAQ:LFUS): “Emerson (NYSE:EMR) should go buy these guys. That’s how much I like Littelfuse. And, by the way, did I say that I like Emerson? Emerson’s on a major breakout here.”

TransUnion (NYSE:TRU): They will get business from Equifax (NYSE:EFX).

Dave & Buster’s Entertainment (NASDAQ:PLAY): The stock is down on profit taking. It’s a buy.

Bearish Calls

Sangamo Therapeutics (NASDAQ:SGMO): The stock has rallied 375%. It cannot be bought at current level.

Esperion Therapeutics (NASDAQ:ESPR): Cramer thinks Amgen (NASDAQ:AMGN) has a better product.

Kinder Morgan (NYSE:KMI): Cramer said Kinder Morgan had concerns.

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Game Plan For The Week – Cramer's Mad Money (10/13/17)

Finances

Game Plan For The Week – Cramer's Mad Money (10/13/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Friday, October 13.

The averages have been going higher. However, it can go up and sustain only if the earnings allow it to. The coming week is pivotal for earnings. With that, Cramer discussed the game plan for the week.

Monday

Netflix (NASDAQ:NFLX) will report earnings on Monday. Cramer is usually cautious with companies that run up going into the earnings. Netflix is unique in that regard. “My prediction is that when Netflix reports after the close, the stock will either go up instantly by a huge amount or go up over time after a dip, because I think this company is worth more than its current $86B market cap,” said Cramer.

Tuesday

Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), UnitedHealth (NYSE:UNH), IBM (NYSE:IBM), Johnson & Jonson (NYSE:JNJ) and Lam research (NASDAQ:LRCX) will report earnings.

Cramer expects Morgan Stanley to issue a good report that comes from its stable wealth management business. He hopes the selling in bank stocks will subside. Goldman Sachs on the other hand is a trading-oriented business and they know how to make money on their products.

UnitedHealth would have been a buy if President Trump’s plan to repeal and replace Obamacare had failed. However, as key Obamacare subsidies have been eliminated, the future of healthcare program is unclear. “The situation’s gotten murky. So I’d rather wait until we get more information,” added Cramer

IBM has been reporting decline in core business revenue. If it can report growth, it will bounce back. “If you give a downbeat projection, the stock can go still lower if the company only meets that downbeat projection rather than beating it.”

He expects Johnson & Johnson to report good earnings and was bullish on Lam Research as well.

Wednesday

American Express (NYSE:AXP), United Continental (NYSE:UAL) and United Rentals (NYSE:URI) will report earnings.

American Express was a market darling once. Cramer expects that to happen again. Strong numbers are already baked in the stock price so once can buy MasterCard (NYSE:MA) or Visa (NYSE:V) which are better managed companies.

The airline sector is showing strength. Cramer expects United Continental to beat numbers and catch up with the peers. United Rentals can see strength in earnings from re-building required due to the hurricane.

Thursday

Verizon (NYSE:VZ) and PayPal (NASDAQ:PYPL) will report earnings.

Cramer is not thrilled about Verizon’s earnings. “I think it’s fine for income generation. I prefer something that offers both dividends and growth. Growth is hard to come by in that industry,” he added. PayPal on the other hand has growth. The company get beat the street estimates.

Friday

Schlumberger (NYSE:SLB), Procter & Gamble (NYSE:PG), General Electric (NYSE:GE) and Honeywell (NYSE:HON) will report earnings.

Schlumberger expects 2018 to be better after a difficult 2017. “This is a must-listen-to conference call,” said Cramer. PG has just finished a close proxy vote. “Will Procter be able to maintain better-than-average growth, as it’s been doing the last few quarters, or did the proxy take their eye off the ball? We’re going to find out,” said Cramer. He expects them to lay out a strategy for growth.

General Electric has been disappointing and this time will be no different. Honeywell’s earnings will give a good read of the global economy.

“Without good earnings, we’ll find ourselves out of the streak and up the creek without a paddle,” concluded Cramer.

CEO interview – HP Inc (NYSE:PQ)

The stock of HP went up by 6.4% after their analyst day. After the split HP has become a computer and printing company. The stock is up 46% for the year. Cramer interviewed CEO Dion Weisler to know what lies ahead of the company.

3D printing has huge opportunities in mass production, personalization and new-age manufacturing. “This is why we got into the production side of 3-D printing. We weren’t terribly interested in home-based printing. We see this not as the $5B market it is today. We really want to disrupt a $12 trillion manufacturing industry,” said Weisler. They have 65 channel partners across 170 countries. Their 3D technology for plastic polymers has disrupted the industry with its speed, quality and cost.

Weisler thinks that just like computers, 3D printing will become cheap and efficient for both products and manufacturing as time goes on. They have partnered with Johnson & Johnson and Nike to explore the possibility of 3D printing in their industries. “It’s a question of matching the right material science with the technology and finding exactly those kinds of very specific applications,” he added.

It has use cases in medical equipment as well where the multi-jet fusion technology can create custom made spinal spacers coated with nano-crystals. “Just imagine the patient outcomes when you can do that,” he added.

“We’re selling real products, real technology, an incredible ecosystem of partners and real revenue. I guess this would make any venture capitalist ecstatic with what we’ve done in such a short period of time,” said Weisler.

Texas Instruments (NYSE:TXN)

The semiconductor stocks have been rallying. “The moment we get any meaningful signs of an economic downturn, you better believe these high-flying semiconductor stocks will lose some of their mojo,” said Cramer. He thinks that Texas Instruments is the best buy currently in that group.

They are the world’s biggest analog chip manufacturer and the stock is up 30% for the year. They make chips that process speed, sound and voltage for power management and mobile phones’ radio signals, among other applications. Over the last five years, the company has bounced back from every downturn.

After their acquisition in 2011, their portfolio of products has increased. Moreover their gross margins have increased from 50% to approximately 60% today. Their free cash flow was $4B in 2016. “Once you are generating a ton of cash like that, there are a lot of ways you can use it to make your stock safe, more durable and a better investment, and that’s exactly what the incredibly shareholder-friendly Texas Instruments has done,” said Cramer.

In the last 10 years, they have spent $32B in R&D, $25B in share buyback, $9B in dividends and $6B in M&A. Their earnings have been consistent in the last 8 years. The stock trades at 21.8 times earnings, which is a steal for the semiconductor group. “Texas Instruments allows you to sleep at night. Maybe it’s the way to go,” he added.

Cramer’s homework

Cramer came back with his homework on stocks he could not opine on earlier.

Extreme Networks (NASDAQ:EXTR) is into development and sale of network infrastructure equipment. Their stock is up 140% in the last year as they have made many acquisitions. However, they don’t have a consistent track record and hence Cramer advised staying away from the stock.

Athenex (OTC:ANTX) looks like a promising biotech company but it has no drugs in the market. This stock is good for speculation only.

Lastly, Eros International (NYSE:EROS) is a distributor of Indian films. They have 58M users in a market that has growth potential. The company has financial problems and that worries Cramer. He did not recommend the stock.

Viewer calls taken by Cramer

Thor Industries (NYSE:THO): Cramer likes the stock.

Blackberry (NASDAQ:BBRY): They have huge amount of cash. Cramer thinks they should be taken over.

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Square Will Still Go Higher – Cramer's Lightning Round (10/13/17)

Finances

Square Will Still Go Higher – Cramer's Lightning Round (10/13/17)

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Demand And Supply Of Stocks – Cramer's Mad Money (10/12/17)

Finances

Demand And Supply Of Stocks – Cramer's Mad Money (10/12/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Wednesday, October 12.

Stock market is just like any other market which trades on demand and supply. “Like any other market, when there’s too much demand, stocks go higher, and when there’s too much supply stocks go lower. Today, you could see those supply and demand dynamics in action and that led to some very difficult trading,” said Cramer.

In terms of demand, tech was the clear winner with semiconductors, gaming, e-commerce and social media rising as investors were hungry for these. The transportation stocks like rails, airlines and freight forwarders were in demand too.

In terms of supply, retail stocks continue to go lower as investors are up for selling them. Be it the lack of growth or competition from Amazon (NASDAQ:AMZN), the retail stocks can’t seem to find a bottom. The same applies to energy stocks that are dependent on higher oil prices. As crude is stuck in $50 range, energy stocks are abundant in supply.

Surprisingly, there was supply in bank stocks as well. After JPMorgan (NYSE:JPM) beat earnings, the stock did not go higher on credit concerns. Cramer said he’d wait for the weakness to get over until next week to buy these stocks.

“Don’t forget that this market is fickle. Sure, oil and retail have been a continual disappointment, but supply does come out in tech and transports. As for the banks? They’ve run a huge amount. It looks like they’re now going to give you a chance to scale into them at a lower level. My advice: never buy on day one of a big sell-off or day two, either, which would be Friday. There will most definitely be more supply behind it,” he concluded.

CEO interview – Domino’s Pizza (NYSE:DPZ)

The stock of Domino’s closed down 3.9% despite good same-store sales and earnings. Cramer interviewed CEO Patrick Doyle to know more about the quarter. The company’s stock is up 26% for the year.

Doyle said the earnings report seemed to have disappointed investors despite strong domestic same-store sales growth, which is a true litmus test for the retail industry. “I’ll take 8.5% all day long and we have near 40% cumulative growth over the last four years,” said Doyle. “The international business is back in that range of 3-6% that we say you should expect. Store growth was strong; flow through on earnings was terrific. So we feel great about the quarter. We’re not going to spend time worrying about short-term moves,” he added.

Doyle mentioned that the technology they invested in four years ago has started to show fruit. “We’ve been talking about natural voice as how we think people are going to interact with technology for a while. We started investing in it three or four years ago. Alexa, now, of our AnyWare suite of products, has been really the strongest for us in terms of total number of orders. That keeps growing. Google Home’s doing well. We’re looking at other ways we can use that. So that’s important from an ordering perspective,” he added.

They have also partnered with Ford (NYSE:F) to test self-driving cars for pizza delivery. This project is a continuation of Domino’s tech-enabled delivery experiments which has included drone delivery earlier. “We’re figuring out new ways to deliver to people. It’s going to take some time, but we’re excited about it,” he said.

Domino’s has $250M left of the current share buybacks.

LKQ Corp. (NASDAQ:LKQ)

Many companies have been winning quietly and missing the market radar. LKQ is one such company. It’s providing alternative parts to repair and accessorize automobiles and other vehicles, and the stock is up 33% from lows in April.

The company had disappointing quarters and its CEO retired. After that, they have been building their business strongly and are seeing the results of 200 acquisitions since 1998 starting to pay off. After purchasing many part-suppliers in Europe, LQK is ripe to take advantage of the improvement in European economy. It is the continent’s largest auto-parts supplier and has the scale to negotiate with suppliers.

They delivered two strong quarters of earnings consecutively. “LKQ is exactly the kind of quiet, unheralded, under-the-radar winner that makes this market so powerful. I think it deserves more credit. That’s why I’m sponsoring it and why I’m pounding the table,” said Cramer. It trades at 17 times earnings. “Given the strength of the numbers and the stock’s cheapness, I bet the completely anonymous LKQ has a lot more room to run. Sure, I’d like it on a pullback. That’ll give you a chance to get to know the company, not just the initials, before you take the plunge,” he concluded.

Procter & Gamble (NYSE:PG)

PG may have won the proxy vote, but their struggle is far from over. “Nearly half the shareholders who voted agreed with Peltz that Procter is too insular and not innovative enough when it comes to developing smaller new brands into larger established ones. That’s what Peltz was pushing for in a nutshell,” said Cramer. This is enough to bring about a change.

The consumer packaged goods stocks are weak already and this should be in PG’s interests to innovate. Estee Lauder (NYSE:EL), Clorox (NYSE:CLX) and Unilever (NYSE:UL) are the only three consumer packaged goods stocks that have shown strength in this market.

“What do those three winners have in common? They’re all run by executives who used to work at Procter & Gamble, all of them born elsewhere, all of them with tremendous command of multiple international markets,” said Cramer. Estee Lauder’s CEO Fabrizio Freda, Clorox’s CEO Benno Dorer and Unilever’s CEO Paul Polman were all part for PG before for many years and have innovated.

“So let’s see if Procter & Gamble CEO David Taylor heeds Peltz’s call to bring in more outsiders. Let’s see if the board understands what that vote really meant. If not, guess what? The stocks of Clorox, Estee Lauder and Unilever remain the better buys because of tremendous innovation, fabulous international growth and a lot of organic new products,” concluded Cramer.

Viewer calls taken by Cramer

Flexion Therapeutics (NASDAQ:FLXN): It’s a speculative buy. Cramer advised putting little money as the company is not profitable.

BlackHawk Network (NASDAQ:HAWK): Don’t buy. Cramer is tired of this stock being in a good-bad situation.

Carrizo Oil (NASDAQ:CRZO): The stock at $12-14 was an opportunity. This is the time to book profits.

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McCormick's Acquisition Is Good – Cramer's Lightning Round (10/12/17)

Finances

McCormick's Acquisition Is Good – Cramer's Lightning Round (10/12/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Thursday, October 12.

Bullish Calls

Bristol-Myers Squibb (NYSE:BMY): Despite losing against Keytruda, the stock made a strong comeback. Cramer likes it along with Eli Lilly (NYSE:LLY).

Mazor Robotics (NASDAQ:MZOR): Hold the stock as they are the next Intuitive Surgical (NASDAQ:ISRG).

Zagg (NASDAQ:ZAGG): “We like these devices that give us more battery life. I think there’s a lot to the company.”

McCormick (NYSE:MKC): Cramer likes their acquisition of Reckitt Benckiser’s food division.

Bearish Calls

Iridium Communications (NASDAQ:IRDM): Cramer doesn’t see mojo in the stock.

Himax Technologies (NASDAQ:HIMX): It’s still speculative.

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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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