Cramer's Picks

Sell Weak Stock To Raise Cash – Cramer's Mad Money (8/17/17)

Finances

Sell Weak Stock To Raise Cash – Cramer's Mad Money (8/17/17)

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

Investors need to be prepared for the selloffs like the one that happened on Thursday. Historically, August is a month of selloffs. “For as long as I’ve been in this business, August has been a month where we have unexplained or inexplicable, sudden sell-offs, including nasty ones like today,” said Cramer. There were many reasons for the selloff and Cramer gave his take on them:

  1. Trump’s CEO council dissolved – This was the most obvious reason for the selloff. “If you’re selling stocks because so many CEOs are getting off the Trump train, I’ve got a news flash for you: you need a better reason,” said Cramer.
  2. Gary Cohn stepping down rumor – There were rumors of Trump’s top advisor Gary Cohn stepping down. “I certainly can see that Cohn’s important enough to Trump’s economic agenda that his leaving would really hurt the stock market. But then again, the White House issued a statement saying he’s not going anywhere, so it’s not a particularly cogent reason to sell,” said Cramer.
  3. Earnings – The market did not like earnings from Cisco (NASDAQ:CSCO) and Wal-Mart (NYSE:WMT). Cramer feels that the expectations for Wal-Mart were already high.
  4. Spain terror attack – The market goes down on every terror attack.

Bottom line is, “It’s August. It’s slow. It’s thin. It’s time for vacation. Stocks have had a big move. Why not sell some? I bet this sell-off isn’t done. It could get uglier. We’re due. I also believe we’ll get a bunch of sell-offs like this one over the next six weeks because that’s what happens every year at this time. I’ve been telling you this. So, if you haven’t done so already, please sell your least favorite stocks tomorrow to raise some cash so that you’ll be ready to pick up your most favorites as they come down and become bargains,” concluded Cramer.

CEO interview – Box (NYSE:BOX)

The stock of cloud computing provider Box is up 35% YTD. Cramer interviewed co-founder, Chairman and CEO Aaron Levie to know what lies ahead for the company.

Box partnered with Google (NASDAQ:GOOG) Cloud Vision to use machine learning to analyze images. Many businesses have a lot of image data that are classified manually. Box helps them do it automatically and makes it searchable as well. The workflows can be built on image content by companies. The machine learning can be applied to all the unstructured data.

This could later be applied to videos and audio files to unlock more value. The same technology is applied for documents as of now which makes them searchable. They store over 30B files for their customers. AI is helping streamline business processes.

They are focused on enterprise so far and have no interest in personal space. Their aim is to help companies provide more value around data and save them money along with speeding up their process.

Box works with the federal government and yet CEO Levie could not keep mum about the Charlottesville violence. “In this case, I think the principles override that. We really need to ensure that our country can be much more unified, that we actually collectively appreciate our culture of diversity, and we need a president that can stand up for that and stand up for what’s right. So in this case, I think that you’ve seen that from other CEOs in the country and CEOs of companies much larger than Box,” he said.

“I think that the business community has reacted in concert with that and recognized that it was a complete travesty of what happened this weekend, and the kind of tone and the rhetoric that’s coming out of the administration is quite horrible to see. I think we really, really need some strong answers and some new responses from this administration if this current administration is going to work out,” he added.

Retail

Cramer said there are two kinds of retailers. Those that are being crushed by Amazon (NASDAQ:AMZN) and those that are beating it.

L Brands (NYSE:LB) went down after slashing guidance and joins the likes of Dick’s Sporting Goods (NYSE:DKS), Macy’s (NYSE:M) and Coach (NYSE:COH) that are closing stores due to competition from Amazon. The mall is dying slowly for retail and there are 1,100 Victoria’s Secret stores in malls across the country and another 1,600 Bath & Body Works.

On the other side of this are Target (NYSE:TGT) and Wal-Mart (WMT). Both are giving tough competition to Amazon. The investments made by Target are paying off and the earnings from Wal-Mart shows that it is a two horse race. Their jet.com acquisition has been integrated completely into the Wal-Mart family.

While Amazon is turning to capital market for raising money it needs in place of profits, Wal-Mart has the cushion from its owners. “And there too lies the real Achilles’ Heel of Amazon: the clout Wal-Mart still has over its suppliers,” said Cramer.

Most consumer products companies’ websites are hosted by Amazon Web Services. These companies risk losing business from Wal-Mart by partnering with Amazon for the cloud. “If I’m the chief technology officer of any supplier, I’m going to green-light shifting away from Amazon Web Services to the ultra-competitive Microsoft Azure or Google Web Services,” said Cramer.

Wal-Mart has a bigger physical footprint that works in its favor.

Cramer’s homework

Cramer did his homework on stocks he could not opine earlier.

Insys Therapeutics (NASDAQ:INSY): It’s a speculative small-cap drug delivery play. It just has two products in the market. They have two more compounds in Phase 3 trial. There are negative news on the stock and there are investigations going on. There are too many issues in the company for Cramer to recommend a buy.

2U (NASDAQ:TWOU): It provides cloud-based software-as-a-service solutions for nonprofit colleges and universities to deliver education to qualified students. It’s a one-stop shop for digitizing education. Cramer calls it a good growth story but the stock has run up. It needs to cool off before investors would want to buy.

Pattern Energy (NASDAQ:PEGI): It operates as an independent power company, which focuses on the constructing, owning and operating energy projects with long-term energy sales contracts. It’s a green energy provider which yields 6.9%. Cramer thinks it’s a good stock.

Viewer calls taken by Cramer

Peabody Energy (NYSE:BTU): It’s a good opportunity to sell.

Berkshire Hathaway (NYSE:BRK.B): Wait till it comes down before buying.

Alibaba (NYSE:BABA): It’s still cheap after this quarter.

Wix.com (NASDAQ:WIX): Their quarter was disappointing. It can rally back but there are concerns from Cramer.

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Buy Novartis Under $80 – Cramer's Lightning Round (8/17/17)

Finances

Buy Novartis Under $80 – Cramer's Lightning Round (8/17/17)

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

Bullish Calls

Juno Therapeutics (NASDAQ:JUNO): This is a high-risk, high-reward stock.

Merit Medical Systems (NASDAQ:MMSI): “This is a medical device company that I like. You know I like that group. I do think we should be a little more conservative. There’s some more traditional ones like a Medtronic (NYSE:MDT), but that’s okay. I like Mazor Robotics (NASDAQ:MZOR), and I also like Intuitive Surgical (NASDAQ:ISRG).”

Bemis (NYSE:BMS): It’s a great long-term company.

Novartis AG (NYSE:NVS): It is doing well. Buy this one below $80.

Prudential Financial (NYSE:PRU): It’s a solid stock. Cramer likes Chubb Ltd. (NYSE:CB), The Travelers Companies (NYSE:TRV) and Hartford Financial Services (NYSE:HIG) too.

Coupa Software (NASDAQ:COUP): Cramer is a fan of this one.

Sirius (NASDAQ:SIRI): Buy half now and half under $5.

Bearish Calls

Halliburton Company (NYSE:HAL): Cramer is not recommending oil stocks, as they will be cheaper when oil hits $42.

Landstar System (NASDAQ:LSTR): Cramer prefers XPO Logistics (NYSEMKT:XPO).

Chicago Bridge & Iron (NYSE:CBI): There is no catalyst for this stock to go up.

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The Market Is Much More Than Just Washington – Cramer's Mad Money (8/16/17)

Finances

The Market Is Much More Than Just Washington – Cramer's Mad Money (8/16/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Wednesday, August 16.

After Charlottesville, the business council was dissolved, and yet, the market did not fall. “What matters is that sales and profits have been excellent this year, particularly for everything but select retailers and the oil and gas industry. On top of that, low interest rates and slow inflation have combined to make those sales and profits worth more than most investors expected,” said Cramer.

He added that the new administration’s inaction has allowed businesses to make money. “The business world is made up of cycles. There are all sorts of cycles. There’s the housing cycle, the consumer spend cycle, the auto cycle, the tech spend cycle, the non-residential construction cycle, the truck build cycle, the oil and gas cycle, the mineral cycle, the aircraft cycle,” the Mad Money host noted.

In the housing sector, there’s more demand for housing. “Think of everything that goes into your house. Housing is 10% part of the economy, but because of all of the accoutrements both outside and inside, plus all of the financial and legal ramifications of buying a home, it punches way above its weight,” Cramer said. The demand in aerospace and tech is also rising.

“Remember, if something’s a cycle, that means it booms and busts. If it’s secular, that means a sustained boom.” The growth trends in cell phones, the internet of things and artificial intelligence are real. Hence, the dissolution of Trump’s manufacturing council doesn’t mean much for these trends. The weak US dollar also helps companies doing business internationally.

Cramer concluded by saying that the market is much more than just Washington.

CEO interview – Valeant Pharmaceuticals (NYSE:VRX)

The stock of Valeant Pharmaceuticals has fallen to $9 and found a bottom, and it is trading around $14 currently. Cramer interviewed CEO Joe Papa to know what lies ahead for the troubled drugmaker.

“I will say, first and foremost, it’s been a challenging 15 months, to be clear. But we’ve made great progress as a team,” said Papa. The company has sold lot of non-core assets and changed its focus towards R&D and reducing debt. “In the time period since the first quarter of 2016 to now, we paid back $500M more toward $4.8B of debt reduction in less than a year or so ahead of what we said,” the CEO added.

Valeant will be making more divestitures to fix its balance sheet. “I believe the new products we have are going to generate the returns for our shareholders that we need to generate. We feel really good about what we’re doing. We have zero debt maturities between now and 2020, so that gives you a real chance to invest in the business,” Papa said.

The company’s focus is to provide quality healthcare for patients all over the world.

Retail

The retail environment is under pressure, with Dick’s Sporting Goods (NYSE:DKS) falling after earnings and Home Depot (NYSE:HD) stock not rising despite good earnings. The fall in the group is due to Amazon (NASDAQ:AMZN). Cramer has no issues recommending Amazon, but there are two other stocks worth looking at in the retail group – Etsy (NASDAQ:ETSY) and Shopify (NYSE:SHOP).

Etsy has not done much since its IPO, but bounced 32% in 2017. Shopify, on the other hand, has grown 120% since the IPO. Both these companies are different, but Etsy is the cheaper one while Shopify has better growth prospects. Etsy’s revenue growth was 19%, compared to Shopify’s 75%, but the former is profitable. Based on sales, Etsy just trades at 3.6 times, compared to 10.6 for Shopify. Etsy has a better risk-reward.

Apart from this, the retailers that can beat Amazon are TJX Companies (NYSE:TJX), Target (NYSE:TGT) and Urban Outfitters (NASDAQ:URBN). TJX delivered positive same-store sales growth and is opening new stores at a time not conducive for retail. Urban Outfitters has good profit growth and the right fashion trends, while Target is returning to growth and offers a 4.4% dividend at the same time.

CEO interview – Kirkland Lake Gold (NYSE:KL)

The stock of Kirkland Lake Gold started trading on NYSE on Wednesday. Cramer interviewed CEO Tony Makuch to find out what lies ahead for the Canada-based gold miner.

Kirkland has two operating mines – Canada and Australia – with proven reserves of 2M and 1M ounces, respectively. Its cost of production is as low as $250 per oz, which gives the company a significant edge over others. Both Canada and Australia are good places to mine geopolitically as well.

With rising global tensions, Makuch believes gold prices will rise, and hence the company is investing more money in its mines.

Viewer calls taken by Cramer

Magellan Midstream Partners (NYSE:MMP): The entire group is under pressure.

Take-Two Interactive Software (NASDAQ:TTWO): Cramer is a fan. There is no reason not to buy the stock.

Kratos Defense & Security Solutions (NASDAQ:KTOS): It’s a good defense stock that will go higher.

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PayPal Is A Buy At $60 – Cramer's Lightning Round (8/16/17)

Finances

PayPal Is A Buy At $60 – Cramer's Lightning Round (8/16/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Wednesday, August 16.

Bullish Calls

Impinj (NASDAQ:PI): It’s an interesting stock but the market is crowded, so one should be careful.

PayPal (NASDAQ:PYPL): CEO Dan Schulman has made the company into a powerhouse. The stock is a buy at $60.

Marriott International (NYSE:MAR): The stock going down is a buying opportunity.

Bearish Calls

Chipotle Mexican Grill (NYSE:CMG): “You know, I had said 18 months after an incident, that thing would come back, but then we had another incident and had to reset the clock, so it’s not on my to-do list right now.”

Seabridge Gold (NYSEMKT:SA): It’s a development-stage gold company. Cramer prefers Randgold (NASDAQ:GOLD) or Kirkland Lake Gold (NYSE:KL) instead.

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Picking Stocks Fantasy Football Style – Cramer's Mad Money (8/15/17)

Finances

Picking Stocks Fantasy Football Style – Cramer's Mad Money (8/15/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Tuesday, August 15.

Cramer used a fantasy football analogy to teach investors about stocks. He thinks it’s the same as picking stocks as one has to be diversified and make sure they have the best roster. Most people are trading now without a broker, Cramer often sees people buying stocks without knowing why they like them or without enough homework.

For the position of wide receivers, he picked Nvidia (NASDAQ:NVDA), Adobe (NASDAQ:ADBE) and Salesforce.com (NYSE:CRM). For quarterback position, the front runner has always been Apple (NASDAQ:AAPL) which is a solid performer with a cheap multiple.

Tight-ends are the ones who can block and catch are critical, and are PepsiCo (NYSE:PEP), United Technologies (NYSE:UTX), JPMorgan (NYSE:JPM), Honeywell (NYSE:HON) or 3M (NYSE:MMM). For running backs, he picked DuPont (NYSE:DD) and Clorox (NYSE:CLX). For defensive, he picked Lockheed Martin (NYSE:LMT), General Dynamics (NYSE:GD) and Raytheon (NYSE:RTN) and for the kickers, his pick was UnitedHealth Group (NYSE:UNH), Coca-Cola (NYSE:KO) or American Express (NYSE:AXP).

He did not include any retailers or oil stocks as they did not perform this season.

Off the charts

The semiconductor stocks sold off last week only to bounce back. Cramer went to the charts with the help of technician Carolyn Boroden to get a technical view on Nvidia (NVDA), Micron Technology (NASDAQ:MU) and Applied Materials (NASDAQ:AMAT).

Nvidia has run up already and investors will be late to the party now. However, it still deserves attention. “The stock occasionally gives you a pullback like last week and when that happens, it tends to really roll over as weak-handed bulls, who owned it only because it was going higher, decide to abandon ship,” said Cramer. The stock has two strong floors of support, from $151 to $152 and from $144 to $148.

“Given that August and September are brutal months where we often get short, sharp pullbacks you’ll want to watch this $152 level in case Nvidia gives you another buying opportunity,” added Cramer. The stock can pull back in mid-September and she gave three upside targets of $176 to $180, then from $187 to $188 and if it passes both then $209. If you own the stock, hold it, but if not, there will be an opportunity in mid-September.

Micron has a floor of support at $25 to $27 and a ceiling of $34 to $36. There is a lot more upside than downside. “Once Micron and its competitors start really boosting their production, pricing will eventually fall apart. The earnings estimates will get slashed. Of course, that’s been hanging over Micron’s head for ages. It hasn’t stopped the stock from rallying hard over the past 18 months, but it has most recently. Just remember that the run in Micron has a limited shelf-life,” said Cramer.

Applied Materials is in a similar situation. Its floor of support is $41 to $42. If this level holds, it can go up to $49. “I’m very on board with Nvidia. I like Applied Materials. Micron? At this point, it is too boom and bust for me, and I do believe the easy money has been made and then some,” concluded Cramer.

Yelp (NYSE:YELP) – GrubHub (NYSE:GRUB) partnership

Yelp’s $287.5M deal with GrubHub for Eat24 and a partnership is a match made in heaven, according to Cramer. Both stocks have rallied which shows that the market has liked the deal too.

GrubHub provides online ordering of food for 55,000 restaurants in 1,000 cities and has 9M active users. Yelp, on the other hand, has more than 135M user reviews. This deal will benefit both companies which are looking for growth. “This partnership helps to make Yelp and GrubHub the undisputed kings of the online food space,” said Cramer.

GrubHub will pay Yelp a fee on every order sent through them which will help them be less reliant on advertising. “Here’s the bottom line: Yelp and GrubHub were already improving before the news of this fantastic partnership broke nearly two weeks ago, and it shook the world in this sector. But I think this tie-up could power these two abandoned tech names to even higher territory. That’s why I believe both stocks are worth owning here even after these runs, and especially on any market-wide pullback like we had back on Thursday,” said Cramer.

CEO interview – CyberArk (NASDAQ:CYBR)

CyberArk pre-announced weaker than expected earnings and their stock plunged 18%. They report earnings last week with mixed guidance. Cramer interviewed CEO Udi Mokady to hear more the quarter.

Mokady said that the shortfall in this quarter was due to poor execution. A new and existing business deal did not close on time and it’s still out there. They have been beating expectations for 11 quarters in a row until now.

He added that the company has corrected the problem by hiring new leadership and globalizing their salesforce. There is demand for their services considering the recent hack of HBO. These companies use Bitcoin to pay off the hackers. “That’s the requirement of most of these hackers. Many companies choose to buy Bitcoin in some state or fashion and pay them off,” said Mokady.

As hacks become sophisticated, the demand for CyberArk’s security rises. “The enterprises that we see and work with are actually trying to be smarter than those who buy Bitcoin for ransom and learn from other companies’ mistakes and put in the means to prevent such attacks from really taking them down,” concluded Mokady.

Viewer calls taken by Cramer

GoPro (NASDAQ:GPRO): It’s got better financing but it’s not worth being in the stock.

Square (NYSE:SQ): They have had a big run into the quarter. Al the good news is priced in the stock and Cramer suggested waiting for a pullback before buying.

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Don't Buy Teva Pharmaceutical – Cramer's Lightning Round (8/15/17)

Finances

Don't Buy Teva Pharmaceutical – Cramer's Lightning Round (8/15/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Tuesday, August 15.

Bullish Calls

International Paper (NYSE:IP): The stock is cheap.

Inogen (NASDAQ:INGN): This medical device play is a fast growing company.

Bearish Call

Teva Pharmaceutical (NYSE:TEVA): Stay away from Teva. Allergan (NYSE:AGN) has a stake in them and it will sell its stock.

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The Sell-Off Is Not Over – Cramer's Mad Money (8/14/17)

Finances

The Sell-Off Is Not Over – Cramer's Mad Money (8/14/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Monday, August 14.

August and September have not been good for the market historically. “In the dog days of summer, we can get hit with lightning speed sell-offs,” said Cramer. He warned investors to be cautious and sell on strength and buy the dips. Raise cash to buy quality stocks on fear-induced pullbacks.

He wasn’t bothered by the sell-off in the last week. “Despite the fact that everyone was freaking out, the positive backdrop for stocks didn’t change. We have low inflation, low interest rates, good earnings and a weak dollar,” he added. Low inflation means that future earnings of the companies will be worth more. Low interest rates are good for companies and it means that companies with strong dividends will be in demand.

Despite all this, there are still reasons for a selloff. First, Congress is not in session. The market will be impacted negatively when it reconvenes in September. Second, the rise in interest rates on Monday. Apart from that, the bounce in tech and transportation stocks sends a sign of caution.

Seagate (NASDAQ:STX) and Micron Technology (NASDAQ:MU) gave weak outlooks and the market will catch up soon with pin action in other tech stocks. There are also key earnings during the week – Home Depot (NYSE:HD), Walmart (NYSE:WMT) and Target (NYSE:TGT). If any of these have weak earnings, there could be a sell-off in retail stocks.

Sell the worst stocks that bounced higher during the rally to raise cash for buying good stocks on dips.

Listen to your own advice

After the market fell last Thursday, there were many bearish views. The one that bothered Cramer most was from Oaktree Capital investor Howard Marks. “When I listened to Marks, I gulped. Without saying he’s outright bearish on equities, he made it pretty clear that he thinks you’re a fool to own stocks, that you are taking too much risk and that investors seemed unaware of everything that could go wrong,” said Cramer.

Marks had made the same comments in 2010. If investors would have listened to him then, they would have missed one of the biggest rallies. If they had listened to him on Thursday, they would have missed the rally on Monday.

While Marks is correct about the market risks, he has different priorities as a billionaire. They tend to be risk averse. The average investor takes risk as a part of the stocks game. “You only need to get rich once,” said Cramer and hence piggybacking on the advice of someone who has already made money doesn’t make sense.

“It’s fine for a guy like Marks to be risk averse. He’s already a billionaire and you only need to get rich once. For the rest of us, I think you’re better off listening to yourself,” concluded Cramer.

Cruise stocks

Cramer had recommended buying cruise stocks and they did not disappoint – Royal Caribbean Cruises (NYSE:RCL), Carnival Corp. (NYSE:CCL) and Norwegian Cruise Line (NASDAQ:NCLH).

The cruise stocks had smooth sailing after the oil crash in 2014 as it is one of their major input costs. These stocks went down after the Ebola scare in 2014 only to bounce back and rally till 2015. In 2016, the Zika virus scare was overblown and the stocks went down for a brief period.

Analysts were wrong on these stocks recently. They expected travel and leisure to benefit from Trump’s tax cuts and infrastructure spend. As these have not materialized so far, travel has stalled. But the cruise stocks had no impact. “Like many people on Wall Street, the guys at Goldman were too credulous about what politics could actually accomplish, which warped their whole worldview,” said Cramer.

The group still trades at 13 to 15 times earnings compared to the S&P500 average of 18. Cramer thinks the current estimates are too low and there is a lot left in these stocks to run.

Alliance Data Systems (NYSE:ADS)

Credit Suisse issued a critical report on Alliance Data Systems, the private label credit card issuer. Cramer dug deeper to find out if the stock is worth owning.

The stock rose from $25 in 2009 to $300 in 2015. After the huge run, it fell to $175 in 2016. After that they missed earnings in July and Credit Suisse issued a warning about their credit quality and balance sheet.

The company is delivering despite Amazon disrupting retail. Hence Cramer is willing to give them the benefit of the doubt. He thinks Credit Suisse has got it wrong so far and he’d be a buyer of the stock on weakness.

Viewer calls taken by Cramer

V.F. Corp (NYSE:VFC): Don’t be concerned. Their acquisition was good.

Paychex (NASDAQ:PAYX): Cramer is astonished that the stock has not run up. He thinks the stock is still inexpensive.

Starwood Property Trust (NYSE:STWD): Their yield is good.

Southwest Airlines (NYSE:LUV): Buy it under $55.

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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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Buy EPR Properties Under $63 – Cramer's Lightning Round (8/14/17)

Finances

Buy EPR Properties Under $63 – Cramer's Lightning Round (8/14/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Monday, August 14.

Bullish Calls

EPR Properties (NYSE:EPR): It yields 6%. Buy it under $63.

Activision Blizzard (NASDAQ:ATVI): It’s a good stock. Buy it on weakness.

AbbVie (NYSE:ABBV): It’s a good company with a nice dividend.

ON Semiconductor (NASDAQ:ON): There’s nothing negative about this stock.

Check Point Software (NASDAQ:CHKP): Cramer is a fan.

Bearish Call

Sunoco (NYSE:SUN): No. The entire group is bad.

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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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IAC/InterActiveCorp Is A Buy – Cramer's Lightning Round (8/10/17)

Finances

IAC/InterActiveCorp Is A Buy – Cramer's Lightning Round (8/10/17)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Thursday, August 10.

Bullish Call

IAC/InterActiveCorp (NASDAQ:IAC): “We don’t back trucks up after we’ve had a run to 22,000 and we’ve got ICBMs pointed at us. What we do is we pick gingerly. I think InterActive had a terrific quarter, and I do think you should buy it, but not all at once. Not with this market, not with these little press conferences and not with the fire and the fury.”

Bearish Calls

Under Armour (NYSE:UAA): It’s a good stock, but Cramer prefers Nike (NYSE:NKE) and PVH Corp. (NYSE:PVH) instead. He advised caution, as all these stocks have run up.

Weight Watchers International (NYSE:WTW): No. It’s a short squeeze.

TripAdvisor (NASDAQ:TRIP): Its last quarter was not good. Expedia (NASDAQ:EXPE) is a better pick.

Stericycle (NASDAQ:SRCL): The company’s last quarter wasn’t as good. Hold off buying the stock.

Trivago (NASDAQ:TRVG): The travel group has paused.

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Overvalued Doesn't Mean Sell – Cramer's Mad Money (8/10/17)

Finances

Overvalued Doesn't Mean Sell – Cramer's Mad Money (8/10/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Thursday, August 10.

Is the market overvalued and dangerous? “Look, these statements about the market being too high roll off the tongue so easily. The bears sure were right today, right? They could be right again tomorrow. But that doesn’t mean they could be right over the intermediate term, which is the term that I like to think about,” said Cramer.

The tensions between US and North Korea are legitimate but the worries of market being overvalued are stretched. Some stock may be overvalued. The big consumer names trade between 20-25 times earnings which is costly even though they pay dividends. “But their dividends are often much higher than Treasurys and Treasurys give you no upside whatsoever, so what are you supposed to do? If you choose to hide in Treasurys while these stocks, frolicked higher, you’ve missed out a big run. Where I come from, you know what they call that? A mistake,” he added.

Listening to the bears will not get you anything. If that were true, all the big moves in FANG stocks that seem overvalued now would have been missed. May be expensive doesn’t mean sell. “The most disciplined thing you could’ve done with these stocks was to stay long through all the jeremiads by the graybeards to get out of them. You had to tune out the sirens of skepticism who said they were dangerous,” said Cramer.

The best time to buy stock is when fund managers are at the opposite side of the trade. It takes guts but it’s worth it.

“Listen to yourself. Do your own work. But understand that it takes a ton of discipline and conviction to own a Facebook or an Amazon or an Apple through these runs, and you aren’t an idiot if you do. You’re smart. In fact, I have one word for you: congratulations,” concluded Cramer.

CEO interview – Planet Fitness (NYSE:PLNT)

The stock of Planet Fitness rallied 9% after the company reported strong earnings. Cramer interviewed CEO Chris Rondeau to know more about the quarter.

“If you think about our business model and our marketing, it’s a marketing machine. So every incremental member that joins, 9% of that dues goes to marketing, fueling the next join,” said Rondeau. They came public in 2015 with 7M members and since then then the gym has moved to 10M members.

“We have a very refined operating model. Not a lot of the fluff, the pools and the basketball courts and a lot of heavy payroll. We don’t have the daycare and the juice bars and so on. Each franchise, which serves roughly 7,000 members on average, has a lot of equipment, is open 24 hours a day at most sites, very fixed cost business model, so every incremental member, once you break even, is incremental profit, right to the bottom line,” he added.

Their gyms are suitable for the first time and the casual gym user and 49% of their members are millennials. Rondeau said their competition was the number of hours in the day.

CEO interview – US Concrete (NASDAQ:USCR)

US Concrete reported a good quarter with 23% rise in revenue. Cramer interviewed CEO Bill Sandbrook to know what lies ahead and his take on Trump’s infrastructure project.

Sandbrook said that they serve 350 trucks a day with 17 facilities across New York. As concrete is a perishable commodity, the company’s huge network is required for success. They supplied concrete for the World Trade Center facility, renovations and expansions at LaGuardia airport and for all the bridges and road projects for that region.

He gave his take on the Trump infrastructure project. “Twenty-six states have raised their gas taxes, in order to support infrastructure spend. It’s a dereliction of duty, what’s going on with the federal government, slow-playing infrastructure investment,” he said.

He adds that the benefit of infrastructure spend is that the local economies gets industrial jobs like the ones they offer. “The people have to live somewhere. They have to work somewhere. They have to shop somewhere. They have to go to a hospital somewhere. They have to have a school for their kids. There’s a huge multiplier effect in bringing jobs into a local economy,” said Sandbrook. He also mentioned that the death of retail doesn’t affect them in a meaningful way.

CEO interview – Cypress Semiconductor (NASDAQ:CY)

The stock of Cypress Semiconductor is up 15.5% for the year, a part of which was due to strong earnings. Cramer interviewed CEO Hassane El-Khoury to know more about the quarter and the transition of the company from a simple chip provider.

“First of all is the markets that we are focusing on. That’s automotive, industrial and consumer, and then the technologies that we’re providing in there: programmability, but more importantly, the connectivity. But the biggest change, I would tell you, is how we go to market. The days of customers taking multiple chips or just products and putting it together are past. They’re behind us. The future is, how can a semiconductor supplier transform itself to a systems enabler in order to solve higher level problems that add value? That’s where we are,” said Khoury

The automotive sector accounts for 30% revenue and will be a growth diver for the future. They are going big into the internet-of things as well by providing chips for connected devices. The USB Type-C connections across devices will be a catalyst of growth as well.

Khoury said the company is focusing on implementation more than manufacturing. “That’s where a lot of our investment is. It’s no longer in, you know, hardware and technology. It’s a lot of it in the software and system integration side of it, and that’s really fueling the growth that we have,” he added.

They are adding value for equipment makers by providing chips capable of solving high level problems.

Viewer calls taken by Cramer

e.l.f beauty (NYSE:ELF): The company needs to beat numbers on both top and bottomline for it to go higher.

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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!

Get Cramer’s Picks by email – it’s free and takes only a few seconds to sign up.

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