Cramer's Picks

Hormel Foods Has Growth – Cramer's Lightning Round (1/18/18)

Finances

Hormel Foods Has Growth – Cramer's Lightning Round (1/18/18)

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

Bullish Calls

Hormel Foods (NYSE:HRL): It’s one of the few food stocks with good growth.

Greenbrier Companies (NYSE:GBX): It’s an interesting stock, but Cramer prefers Union Pacific (NYSE:UNP).

Baidu (NASDAQ:BIDU): It’s the only Chinese stock other than Alibaba (NYSE:BABA) that Cramer is recommending.

Bearish Calls

Acuity Brands (NYSE:AYI): No. The company has had many missed quarters.

Vale (NYSE:VALE): “Look, it’s $13. You can wait until it comes back up, but it really is pure commodity and I’m not going to recommend it, because my charitable trust lost too much money in the stock. Bad feelings.”

Howard Hughes Corp. (NYSE:HHC): Bill Ackman is a big shareholder and he has been selling. Don’t buy this one.

Symantec Corporation (NASDAQ:SYMC): There are other good companies in that group. Buy Palo Alto Networks (NYSE:PANW) instead.

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

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

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

Market Is Rising On The Fear Of Missing Out – Cramer's Mad Money (1/18/18)

Finances

Market Is Rising On The Fear Of Missing Out – Cramer's Mad Money (1/18/18)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Thursday, January 18.

Despite a down day in the market, there was a positive actions in individual stocks. This happens due to the fear of missing out – FOMO. “I’m talking about these multi-day-up extravaganzas, where investors can’t buy enough shares in one session after a positive event so they keep coming back, day after day after day, to get their full positions on, no matter how much the stock runs in the interim. Honestly, I have never seen anything like it, so I’ve got to point this out and explain it to you,” said Cramer.

The stock UnitedHealth (NYSE:UNH) is going up on good earnings even when the market is down. Cramer found it astonishing the buyers kept buying the stock on same news every day. However, he realized that individual investors are not the only one buying stock, professional block traders are too.

“I can tell you that we’re seeing something truly amazing happening here. UNH, a $235B company with nearly a billion shares outstanding, doesn’t have enough liquidity to sate all the buyers out there at lower levels. It’s kind of like a bunch of Godzillas, unleashed all at once, trying to beat each other over the head to get some stock in, as much as possible,” said Cramer. When a block trader gets order for 100,000 shares from a client, he buys it in 2 tranches of 50,000 to get a lower price as he knows sellers are all around. But in the current market, there aren’t enough short sellers to short the market for block traders getting a lower price.

As hedge funds and money managers race to get their orders complete, it’s enough to move the needle. “It’s a crazy case of FOMO — fear of missing out — on the next big move, even as these buyers are creating that move with their own massive footprint,” said Cramer.

The same pattern could be seen in ASML (NASDAQ:ASML) which has been moving up as buyers race to buy it at any price. Boeing (NYSE:BA) and Wal-Mart (NYSE:WMT) also saw similar patters and the companies have been buying their own stock and reducing share count.

“It’s really indicative of a shortage of stock. So many shares of so many companies have been retired, bought back and crunched. So many existing shareholders are owning, no longer renting, their stocks, that portfolio managers have no choice but to drive up prices dramatically with their own buying,” concluded Cramer.

SVP interview – IBM (NYSE:IBM)

IBM posted first revenue growth in six years and yet its stock went down. Cramer interviewed SVP of global markets Martin Schroeter to know his views on blockchain and what lies ahead.

Schroeter said they finished the quarter where they wanted to in terms of EPS and revenue although there were some headwinds to EPS. Their systems business performance was good and they see strong secular trends in cloud, security, mobile and analytics business going in 2018. They have growing revenue and stable margins. He also commented on mainframes business by saying it’s not dead but are in fact alive and getting faster and more secure. It’s still the most robust platform used by major airlines and 9 out of the 10 big banks. 75% of the world’s enterprise data transfers on main frames.

Schroeter said that they are leader in blockchain technology. It’s a digital record-keeping method that exploded due to craze of bitcoins. Blockchain will change the way the world makes transactions. “If you bought IBM stock today, you would have to wait three days for that to clear because it has to go through its process. In a blockchain, you can see every transaction instantly, so your trade could clear and go from their account to your account instantly,” he added.

Blockchain is not all about trading and cryptocurrencies. IBM has recently partnered with Maersk on a joint venture to apply blockchain software and IBM wants to establish a global trade network of manufacturers, shippers, freight forwarders and others. It’s a $2T global market and blockchain will streamline with logistical undertakings making it faster and easier. “There’s no more paperwork and you know that it’s going to be cleared at a specific time. Everyone has perfect visibility to where everything is. You’ve just shortened that cycle dramatically. That creates a lot of value, a lot of value for manufacturers and retailers,” said Schroeter.

Commenting on the rising tax rate despite the reform, Schroeter added, “The cause of our tax rate to go up is tax reform. But we have been supporters and we remain big supporters of tax reform because over the long term — and IBM always manages over the long term — over the long term, it’s going to free up our capital and it gives us a territorial system so we can invest on par with our competitors.”

CEO interview – PPG Industries (NYSE:PPG)

The stock of PPG Industries remained flat in 2017. PPG reported good earnings and the stock went up by 4%. Cramer interviewed CEO Michael McGarry to know more about the quarter.

McGarry said that PPG has new products for industrial, packaging and aerospace coatings and technology is driving their business. They are also a global company with 57% of the sales coming from 140 countries and 43% from the US.

PPG is not just about paint coating anymore, and they have big exposure to autonomous driving vehicles also. As automakers rush to develop self-driving cars, PPG becomes a big beneficiary. “If you think about the LIDAR and radar that enables autonomous driving, they need to have the costs driven down so this can become a ubiquitous technology,” said McGarry. PPG has seized the opportunity by helping the automakers drive down costs with their paint coatings.

“Coatings will help them enable that technology to work with fewer radar and LIDAR units because it’ll make the car more visible. We can put the LIDAR and radar in the bumpers so they cannot be so ugly on the car. So if you think about why the Tesla 3 has such great visibility is because it has the ability to hide a lot of things, and we can enable that. We’re certainly pleased to be a leading partner with Tesla,” said McGarry.

Market discrepancies

Cramer said that there are four major discrepancies in the market and they need to be sorted out.

  1. For months, there was chatter that flat yield curve could be a problem for banks. As the long-term rates have started to rise, there is chatter about rising rates being a problem. Cramer said that in reality, banks make money when short and long-term interest rates are on the move.
  2. Despite Trump being unpopular, his agenda of tax reform and deregulation are working for the economy.
  3. As the excitement about crypto-currencies fizzle out, the speculative money has to come to the stock market. The ignored market is bound to go even higher then.
  4. There is shortage of things to buy in the market as IPOs have slumped. This means that money has to go in existing stocks and send prices up.

“Gradually, the bears will be forced to acknowledge reality, and when they do, that’s how you get another leg of upside,” concluded Cramer.

Viewer calls taken by Cramer

Qualcomm (NASDAQ:QCOM)-Broadcom (NASDAQ:AVGO) merger: Cramer said both stocks are winners.

J. C. Penney (NYSE:JCP): Cramer is not crazy about shopping at JC Penney and hence he cannot recommend the stock.

Nektar Therapeutics (NASDAQ:NKTR): It’s a speculative buy.

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

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.

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

Apple's Plan Will Have A Multiplier Effect – Cramer's Mad Money (1/17/18)

Finances

Apple's Plan Will Have A Multiplier Effect – Cramer's Mad Money (1/17/18)

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

Cramer said that a part of Trump’s agenda is working. Lower tax rates, deregulation, and an already booming global economy will boost the US economy further. While the skeptics would believe that tax cuts are for the shareholders and will flow to the rich as dividends, Apple’s (NASDAQ:AAPL) plan proves otherwise.

“Apple, using some of the gigantic $252B cash hoard that it has overseas, announced Wednesday what I think is a modern-day Marshall Plan for the U.S. economy. Apple committed to directly investing $350B into the United States over the next five years, including $38B in repatriation taxes,” said Cramer. Apart from that, other companies have been paying bonuses to employees.

Cramer conversed with Apple CEO Tim Cook over the phone where Cook emphasized being a leading corporate citizen and creating jobs. “He said that ‘While some of these efforts were indeed in the works, Washington enabled most of this job-creating plan to occur by changing the tax code to allow companies to return capital to all stakeholders,’ a series of reforms that Tim has championed for quite a long time,” said Cramer. Of $350B, $55B will be injected into the economy in 2018.

Apple also plans to create 20,000 jobs by hiring at its existing campus and the new campus that it plans to build. “Frankly, I think Apple’s view of how to generate jobs, how to create wealth away from the shareholder base, is probably a heck of a lot better than anything the government could ever do,” said Cramer.

He thinks there will be a multiplier effect of this. “Whatever you think of the president, part of his agenda is working. If Apple turns out to be the tip of the iceberg, then this already strong economy could get even stronger. And frankly, I don’t know about you, but I’d rather have Tim Cook deciding what to do with this cash than anyone in the capital,” he concluded

Bank stocks

The major banks have reported earnings and Cramer reviewed each one to find out which one is a buy. The banks took a one-time hefty charge due to changes in tax laws. “I know it was pure accounting gimmickry, but I worried that it might freak out investors. Turns out there was no need to worry,” said Cramer.

JP Morgan’s (NYSE:JPM) earnings were better than analyst expectations. Despite flattening yield curve, the bank’s net interest margin increased by 5 bps. They got a big windfall from tax relief and it trades at 2.1 times tangible book value.

Bank of America (NYSE:BAC) is most levered to interest rates and saw its net interest margin increase by 3 bps. The stock trades at 1.85 times its book value.

Citigroup’s (NYSE:C) earnings were not as strong as others. Their net interest margin fell by 9 bps but their total loans were up 5%. It trades at 1.28 times its book value. Cramer called it the best value bank.

Wells Fargo (NYSE:WFC) is still trying to recover from the scandal and its net interest margin dropped by 2 bps. It still trades at 2 times its book value.

Lastly, Goldman Sachs (NYSE:GS) saw their investment banking business go up while trading business go down. It is not a big beneficiary of tax cuts and hence it is not Cramer’s favorite stocks.

“Now, J.P. Morgan and Citi, and Bank of America all said that their approach to dividends and buybacks won’t change because of the tax bill. But all four of these companies have been voracious buyers of their own stock, especially Bank of America and Wells Fargo, and if the Fed gives them permission to even increase their repurchase programs, I think they’ll do just that,” concluded Cramer.

Chairman interview – Tellurian (NASDAQ:TELL)

Cramer interviewed Charif Souki, the co-founder and chairman of Tellurian. They are aiming to build a low-cost natural gas business.

Souki said that natural gas industry needs a big infusion to keep drilling. “We have so much natural gas in this country. Just the amount of gas that is already behind pipe, or that is going to be found because of oil production at $60 a barrel, is going to require over $150B of infrastructure investment over the next five years.” he added.

Tellurian is taking advantage of the industry’s need for low-cost liquefied natural gas. They are making export terminals for LNG, investing in pipelines and funding natural gas production. The construction of their first US based terminal will begin in 2019.

“We had very low prices for three years and therefore all the producers are now not very financially stable so they cannot invest. And the U.S. is a savior. However, we don’t have the infrastructure to take it to the water. We’ve been geared to take it from the water to the rest of the country, and now we have to be able to get it from where it’s produced to the water, and that infrastructure doesn’t exist,” said Souki.

Tellurian has the cheapest natural gas in the world. “We want to have the flexibility to choose the cheapest all the time, whether we have to drill for it or simply source it from the Apache likes,” he added.

Despite the rising oil prices, Washington’s view of their business has not changed. “The Trump administration is prouder of us than the Obama administration was, so one brags about us and the other one used to hide us, but they were both very supportive,” he concluded.

CEO interview – Splunk (NASDAQ:SPLK)

The stock of data analytics provider Splunk gained 62% in 2017. Cramer interviewed CEO Doug Merritt to know what lies ahead.

Merritt said that data continues to grow and is powering businesses today. Machine data is one of the biggest segments in big data and Splunk is leading the space in both security and analytics.

“I meet with hundreds of customers every single year and they’re all wrestling with that challenge of big data’s growing like crazy and how, ultimately, to get insights. But that starts, in the very beginning, with what data do we even look for? How do I find big data? What are sources of big data? Then, how do I correlate these colliding streams that are hard to make sense from so I can get those insights and take action,” said Merritt.

The machine data segment is growing 50 times faster than traditional business data. Merritt adds that Splunk has the scale to handle petabytes of machine data every day and the ease of use to allow multiple departments to mine that data. Big companies like Mercedes and Carnival Cruise line use Splunk’s services to manage data.

Viewer calls taken by Cramer

AT&T (NYSE:T): It’s good to buy as it yields 5.4%.

Juniper Networks (NYSE:JNPR): Cramer prefers Cisco (NASDAQ:CSCO) as one not only get the service provider but also great software.

Entercom Communications (NYSE:ETM): They have a good yield and scale to grow.

CME Group (NASDAQ:CME): It’s a well-managed company and Cramer called it a winner. It’s a buy.

PayPal (NASDAQ:PYPL): Cramer said the stock can hit $100.

Walker & Dunlop (NYSE:WD): Cramer thinks CBRE Group (NYSE:CBG) is the stock to buy when it comes to commercial real estate.

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

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.

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.

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

Buy Disney – Cramer's Lightning Round (1/17/18)

Finances

Buy Disney – Cramer's Lightning Round (1/17/18)

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

Bullish Calls

Intel (NASDAQ:INTC): “That stuff about faulty chips is nonsense. There was some degradation. It will not even matter. You will not look back. You will not be able to see why that stock went down. I trust CEO Brian Krzanich. He’s a good man. If he tells me the problem is solved, the problem is solved.”

Twenty-First Century Fox (NASDAQ:FOXA): It’s going to be worth a lot more. Cramer prefers Disney (NYSE:DIS).

Bearish Calls

Chimera Investment Corporation (NYSE:CIM): It’s difficult to figure what they own.

Exelon Corporation (NYSE:EXC): No. Cramer prefers Dominion Energy (NYSE:D), American Electric Power Company (NYSE:AEP) or Consolidated Edison (NYSE:ED).

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

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

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

Game Plan For The Week – Cramer's Mad Money (1/12/18)

Finances

Game Plan For The Week – Cramer's Mad Money (1/12/18)

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

The market is roaring and all the 401(k) money is coming in. Even Facebook’s (NASDAQ:FB) decline was not enough to derail the market. On the other hand, good earnings from JPMorgan (NYSE:JPM) set a positive tone. “JPMorgan’s a terrific place to actually start the discussion for next week’s game plan because it did set a benchmark that other banks, which all report next week, I think are going to find hard to beat,” said Cramer. With that, he discussed the game plan for the week.

Tuesday

Citigroup (NYSE:C), UnitedHealth (NYSE:UNH) and CSX (NYSE:CSX) will report earnings.

Citi will be taking a $20B charge and it might still end up with positive numbers thanks to its aggressive buyback.

Cramer expects good numbers from UnitedHealth with growth from its data-driven business. The stock of CSX has recovered since its December low. “If the rails have a weak link, it will be CSX because it has run so much,” said Cramer.

Wednesday

Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS) and ASML Holdings (NASDAQ:ASML) will report earnings on Wednesday.

Bank of America has the largest deposit base in the US and it will be a beneficiary of rising rates. Goldman Sachs, on the other hand, should find a way to boost its trading income. “It’s a much more trading-oriented investment bank, and lately, the markets have lacked the kind of volatility that translates into terrific profits,” said Cramer.

ASML’s earnings report will give insight if there is too much new capacity in the semiconductor market.

Thursday

Morgan Stanley (NYSE:MS), PPG Industries (NYSE:PPG) and IBM (NYSE:IBM) will report earnings.

Cramer thinks Morgan Stanley’s earnings will be good. “But by this point, will anybody really care? Aren’t we more likely to see a wave of profit-taking once all the big banks have reported? You know what, that’s actually a reasonable bet. Let’s keep our eyes open,” he said.

PPG will report good earnings and Cramer thinks the company is on the brink of a value-enhancing merger. “If I owned it, I would certainly stay long. If it gets weak earlier this week, I would buy it,” he added.

Cramer will be watching IBM to see if their transformation is leading to profits. The good news is that Buffett has stopped selling the shares.

Friday

Schlumberger (NYSE:SLB) will report on Friday. This is one of Cramer’s favorites and he expects to hear good things since oil is going up.

CEO interview- Alder Biopharmaceuticals (NASDAQ:ALDR)

The stock of Alder Biopharmaceuticals shot up on the news of positive clinical trial data. Cramer interviewed CEO Randall Schatzman to hear more about the drug Eptinezumab.

Schatzman said that with just one dose of Eptinezumab, the episodes of chronic migrane decreased by 50% for patients that suffered 16 episodes a month and and 15% of patients reported no episodes for 12 weeks. “So we think it’s an opportunity to really transform how migraine is treated today.”

While there is treatment available in pill form from competitors compared to intravenous from Alder, Schatzman believes that patients don’t care how they get the treatment as long as it works. “For them, whether it comes as a subcutaneous injection or whether it comes as an IV infusion that they take four times per year, that’s very appealing for them,” he added.

Their next step is to work with the FDA for approval which is expected by next year.

Casino stocks

As the global economy gets stronger, gambling will increase. More gambling in Macau means better earnings for companies like Wynn Resorts (NASDAQ:WYNN) and Las Vegas Sands (NYSE:LVS).

When the Chinese government started cracking down on gambling and corruption, Macau gambling revenue took a hit by 34% in 2015. But, as high rollers keep returning and both companies having new casinos ready, their stocks have been rising.

While both Las Vegas Sands and Wynn are good stocks, Cramer prefers Wynn due to Macau being a Chinese gambling haven. Wynn is a better-run company but trades at 20 times earnings versus Las Vegas Sands, that trades at 22 times earnings.

Cramer suggested MGM Resorts (NYSE:MGM) for investors who are looking for a domestic play as it trades at only 19 times earnings.

Off the tape

Cramer went off the tape to review the privately held clothing retailer chain Faherty Brand that has 6 locations across the country. Cramer interviewed the boutique apparel maker’s co-founder and CEO Alex Faherty to find out what lies ahead.

The company was founded by Faherty, who is a finance guy and his brother, who is a good designer. They believed that clothes should last for a lifetime and thus they give a guarantee on their clothes and replace them if they wear out.

To achieve this goal, they have a tight control on manufacturing and design. They have also opened up stores in high end locations. “Right now, with all the stores that are closing, it creates opportunity for new brands,” added Faherty.

40% of their sales come from e-commerce and they are popular among 21 to 45 year olds. He also added that Shopify has changed the game for retailers. “Our technology can do whatever the largest of brands can do now. The barriers to entry have completely changed. Basically, what used to cost $10M, to build a back-end of a website for a customer, I, for $1,000 a month can basically have the world’s greatest mousetrap when it comes to creating a website,” concluded Faherty.

Viewer calls taken by Cramer

Union Pacific (NYSE:UNP): Cramer is a fan. Hold it.

Motorola Solutions (NYSE:MSI): This stock is still cheap trading at 17 times earnings and has growth.

DST Systems (NYSE:DST): It’s a poorly managed company that had to be taken over.

Philip Morris International (NYSE:PM): There are currency issues but their dividend yield is good. However, Cramer doesn’t like to recommend tobacco stocks.

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

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.

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

Buy Mastercard – Cramer's Lightning Round (1/12/18)

Finances

Buy Mastercard – Cramer's Lightning Round (1/12/18)

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

Bullish Calls

Mastercard (NYSE:MA): Will have great earnings. Buy it.

Estee Lauder (NYSE:EL): CEO Fabrizio Freda is doing a great job. Buy it.

Waste Management (NYSE:WM): Announced a good buyback. Buy it.

Bearish Calls

Boston Omaha (OTCQX:BOMN): Cramer doesn’t like the billboard business. Sell it.

Citizens Financial (NYSE:CFG): It has moved up a lot. Swap that for JPMorgan (NYSE:JPM).

Orbital ATK (NYSE:OA): It’s done. Buy Raytheon (NYSE:RTN) or General Dynamics (NYSE:GD).

Gulfport Energy (NASDAQ:GPOR): No. Go for high quality stocks like Schlumberger (NYSE:SLB).

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

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

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.

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

First Solar Will Hit $80 – Cramer's Lightning Round (1/11/18)

Finances

First Solar Will Hit $80 – Cramer's Lightning Round (1/11/18)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Thursday, January 11.

Bullish Calls

Floor & Decor Holdings (NYSE:FND): It’s red hot and gives growth. Buy it.

Regeneron Pharmaceuticals (NASDAQ:REGN): “Regeneron is a buy, and a lot of people are giving up on this stock. It’s got so many irons in the fire, it’s crazy.”

ZAGG (NASDAQ:ZAGG): The company tells a compelling story. Buy it.

Chegg (NYSE:CHGG): Cramer has liked the stock since it was at $3 because CEO Dan Rosensweig is doing a good job.

Core Laboratories (NYSE:CLB): Cramer likes the stock. He prefers Schlumberger (NYSE:SLB) and suggested buying under $72.

Cedar Fair (NYSE:FUN): It is a good company with a 5% yield.

First Solar (NASDAQ:FSLR): “We did a piece about why the stock’s really rampant, and I’ve got to tell you, it’s going to continue to ramp. Probably goes to $80,” Cramer said.

Newmark Group (NASDAQ:NMRK): It’s a steady stock but not amazing.

Bearish Call

LG Display (NYSE:LPL): Swap out and buy Universal Display (NASDAQ:OLED) instead.

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

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

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

Market Is Supporting Opposing Rallies – Cramer's Mad Money (1/11/18)

Finances

Market Is Supporting Opposing Rallies – Cramer's Mad Money (1/11/18)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Thursday, January 11.

The market holding two opposing rallies at the same time is a sign of good health. This happened on Thursday and Cramer said the animal spirits of the market are rolling. “Oil and airlines, they don’t mix. Jet fuel is the No. 1 cost for the airlines, so they shouldn’t be able to rally at the same time; unless it’s their stocks we are talking about. I keep highlighting the bizarrely bullish ways that stocks are trading and sometimes they’re totally in your face, like this simultaneous move in the price of oil and the airline stocks,” said Cramer.

Delta Airlines (NYSE:DAL) reported good earnings and the stock went up. The notion that fare ware are hurting airlines was also put to rest when Delta reported 4% higher fares per seat per mile Y/Y. “Given its profitable growth, the stock is way too cheap, trading at a minuscule nine times next year’s earnings,” said Cramer. This led to pin action in other airline stocks.

The price of oil hit $64, which is a multi-year high. Such move make money managers short airline stocks as fuel is the biggest cost for airlines. Instead, both oil and airline stocks were high. This led to Boeing (NYSE:BA) going up as airline buy net jets from Boeing that use lesser fuel.

The interest rates are going up and yet the home builders are going up. Netflix (NASDAQ:NFLX) went up along with their competitors Discovery Communications (NASDAQ:DISCA) and Viacom (NASDAQ:VIAB).

“To borrow a line from F. Scott Fitzgerald, the test of a first-rate market is the ability to hold two opposing rallies at the same time. That’s something this wonderful market keeps doing with aplomb. I say get used to it,” concluded Cramer.

CEO interview – Denny’s (NASDAQ:DENN)

Restaurant chain Denny’s gave good guidance before the ICR presentations where it reported 2.2% same-store-sales growth. Cramer interviewed CEO John Miller to know more about the upcoming quarter.

Miller said that Denny’s is lived by millennials. Their on-demand online ordering service has new packaging for its food; health-focused meal options; value-oriented menus starting at $2; and meal personalization. Their most delivered items were burgers and milkshakes.

Their turnaround is due to reinvention of the chain as an old time diner. “People said they want their old diner back. It needed to be a place appropriate for dinner, so we warmed it up a little, divided the spaces,” said Miller. 67% of the restaurants have changed the image and it is expected that 80% will embrace the change by 2018.

The company has a good share buyback program and is expanding its footprint in college campuses and New York City among others. “We believe a great society runs best when you sort of push responsibility down. Give people choice. Let them make their own decision. You want to indulge in a shake on Sunday, we’ll sell it to you. But Monday morning you can have a Fit Slam egg white omelet,” concluded Miller.

Bank earnings

As bank earnings report on Friday, the earnings season will kick start. Cramer expects lot of one-time charges in this quarter because banks carry unrecognized losses to offset their gains. With tax rates, falling, banks will use their losses now. “I’m not trying to predict which banks will do well and which ones won’t. I simply want to help separate the signal from the noise so that you’ll be in a position to understand what’s actually happening as it happens,” said Cramer.

Citigroup (NYSE:C) and JP Morgan (NYSE:JPM) risk reporting a drop in earnings due to unrecognized losses. “Put it all together and that means the earnings for the fourth quarter could look horrendous on the surface. People will be [selling] the moment that it happens. I’m trying to steel you from that,” added Cramer.

The trading volume might also be down due to trading bonanza after Trump’s win in 2016. “That’s pretty suboptimal, but you have to understand that the banks are coming up against some very difficult comparisons here,” said Cramer.

He discussed the best way to evaluate the banks. First and foremost is the net interest margin. “It’s still the primary way that banks make their money. Given that we got three rate hikes last year and the last quarter the net interest margins were pretty impressive, there’s some real reason for optimism here and I think it could prevail,” added Cramer. If net interest margins go up, regional banks will benefit most.

Second indicator is loan growth which shows growth of the banks and health of the economy. Stronger loan growth means confidence among businesses and banks. The thing Cramer is most excited about is the bank’s plans for dividend and share buyback due to lower tax rates and less strict regulatory environment. Also, as a former investment banker is about to become the new Fed chairman, banks are confident. “They are sitting on boatloads of cash, so let’s see how much they can increase their buybacks or signal large dividend boosts without risking the ire of the Fed,” said Cramer.

“Here’s the bottom line: when the banks start reporting tomorrow, please don’t be thrown off by all the one-time charges from the fourth quarter. But do listen to everything they have to say about net interest margins, about loan growth and their plans to send money back to you,” concluded Cramer.

Off the tape

Cramer went off the tape to review the privately held luggage maker Away. He interviewed co-founder and CEO Steph Korey to know more about the company.

Away has digital-savvy luggage with USB ports and it has been gaining popularity in two ways. “The No. 1 way our customers find out about us is a recommendation from a friend. We find that if we can create a special experience – like our web experience, our purchasing experience, our in-store experience, our product experience, how you travel – if we can create something that leaves a lasting impression with people, that’s so rare these days that they’ll tell everyone they know about it,” said Korey.

The second way is by social media popularity. Away encourages their customers to share when they are traveling. “Inspire your networks and share what you’re doing. So now, when people are traveling, they’re going somewhere new, they’re Instagramming themselves with their luggage and that’s how people are finding out about it,” she added.

Their luggage allow travelers to fit more inside, charge their devices and are ultra-light. Their specialty color Millennial Pink sold out in record time and had a wait list of 20,000.

Viewer calls taken by Cramer

Discovery Communications (DISCA): It’s a good stock.

Juno Therapeutics (NASDAQ:JUNO): It’s a good spec.

LendingClub (NYSE:LC): They are spotty and inconsistent and their business management is sub-optimal.

New York Community Bank (NYSE:NYCB): Don’t go down the food chain when JP Morgan is available.

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

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.

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

When Good Things Happen, Embrace Them – Cramer's Mad Money (1/10/18)

Finances

When Good Things Happen, Embrace Them – Cramer's Mad Money (1/10/18)

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

When there was news that China might stop or trim down US sovereign debt purchases, the market fell. “Logically, you can’t be worried about one thing and then suddenly freak out when the opposite happens. It’s totally lacking in rigor, but it happens all the time around here, and that’s what threw us off today,” said Cramer.

The commentators were worried about no inflection in the yield curve which could be a sign of recession coming. “But here’s the thing: if China comes into the market and starts dumping longer-term Treasurys, we won’t have a flat yield curve anymore. Long-term rates will go higher, and bears lose their big thesis propping up the idea that a recession’s right around the corner,” he added.

How can the managers be worried about rates being too low and panic when the Chinese float the possibility of making our long-term rates go up? “This is not a be-careful-what-you-wish-for story. We want rates higher, period. The pace of loan growth in this country is slowing, something I’m sure we’re going to hear about when the big banks start reporting,” said Cramer. He thinks higher long-term rates will make banks eager to lend which means the Chinese dumping bonds will make things better.

The same applies to inflation. People are worried there isn’t enough inflation which will translate to lower wage growth and a dip in consumer spending. “You can’t have it both ways. You can’t say, ‘Boohoo, there’s no inflation, let’s sell stocks’ and then say, ‘Boohoo, there’s inflation, let’s sell stocks.’ It is either, people, one way or the other,” said Cramer.

Even talk about oil going to $60 could be the breeding ground for inflation even though when oil was at $30, everyone wanted oil prices to go higher so that the drillers could make money. $60 was the sweet spot. It is getting there and money managers are worried again. Cramer finds this illogical.

“The bottom line? Don’t be careful what you wish for. When good things happen, embrace them,” concluded Cramer.

CEO interview – Domino’s (NYSE:DPZ)

The stock of Domino’s fell on the news the CEO Patrick Doyle is retiring in June. Cramer interviewed him to hear what’s next.

Doyle said he is at peace with his retirement announcement. “I accomplished the goals that I had set out for myself when I took over in 2010. We’ve got an amazing team in place, and so I would not leave unless I was confident that this business was going to do even better going forward.” He had expected to achieve the feat of building a successful business in 10 years but has done it in only eight and a half, and will pass the CEO role to Richard Allison.

“There’s a rhythm to these things, and this is the right time to do it. I’ll run hard until the end of June, take the back half of the year off and figure out what I’m going to do next,” added Doyle.

He has turned around the largest pizza delivery chain by investing in ordering technology. This has led to gains of more than 350% in the last five years. When questioned about the rumors of him joining Chipotle, he said, “I’m in a position that, fortunately, I can do this sequentially. So I am thinking about nothing but Domino’s until midnight on June 30. I’m not going to retire. I’m too young for that. I’m going to keep doing something, but I have no idea what that’s going to look like and I’m going to take a little bit of time in the back half of the year and figure that out.”

Cramer called Doyle the best CEO he’s ever had on Mad Money.

Off the charts

Cramer went to the charts with the help of technician Robert Moreno to look at the video game stocks – Take-Two Interactive (NASDAQ:TTWO), Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ:ATVI). “There’s a whole generation of people out there who can’t remember a world without Nintendo, and many of them are now old enough to spend meaningful chunks of their bucks on their hobbies,” said Cramer.

The stock of Take-Two is up 127% in 2017. The company behind Grand Theft Auto and NBA 2K has outperformed its peers by a big margin. The stock fell below its 50-day moving average in November and is beginning to show a cup-and-handle pattern. This is one of the most reliably bullish patterns in the book. The stock crossed its ceiling of resistance of $115 and the MACD indicator made a bullish crossover signaling the stock is ready to run.

Activision is behind popular games like Call of Duty, World of Warcraft and Overwatch. The stock is making a comeback since December and has stayed near the $67 ceiling of resistance. The stochastic oscillator shows that the stock is ready to run and the fact that it is only $1 away from the ceiling of resistance is a good sign. The Chaikin Money Flow moved into positive territory.

The outlook for EA, which is behind Battlefield, The Sims and many popular sporting games, is similar. The stock has formed a cup-and-handle under $110 which is its ceiling of resistance. The stock has broken the ceiling and the RSI is heading higher. “This is going to need to pick up before Moreno will really believe that EA is ready to run, but once it does, he thinks the stock could have a ton of upside,” said Cramer.

“I think these stocks have more room to run in 2018, including Take-Two Interactive. But the charts … suggest that Electronic Arts and Activision Blizzard could end up giving you better performance this year as they start to play catch-up with Take-Two,” concluded Cramer.

CEO interview – Tableau Software (NYSE:DATA)

Tableau Software released the latest version of their analytics platform. Cramer interviewed CEO Adam Selipsky to find out more about it.

Selipsky said their new product Hyper allows data to load 5 times faster and analyze up to 3 times faster. The company can analyze large data sets easier than before. “If companies can ingest and analyze massive swaths of data faster, they’ll be more inclined to update their information more regularly,” he added.

It is helpful for multinational companies as it works on a global and local level. One doesn’t have to be a data scientist to use the product.

“You’ve got all this data coming in, and if it’s stale, you’re making decisions based on old data. If you can make up-to-date decisions, you will make better decisions, and I think that’s really the potential for improving businesses with Hyper and Tableau,” concluded Selipsky.

Viewer calls taken by Cramer

Digital Realty Trust (NYSE:DLR): The stock is going down because it trades with the cohort. Cramer likes Digital Realty and thinks it can go higher.

Spark Therapeutics (NASDAQ:ONCE): Cramer needs to work more to opine on it.

Ryder (NYSE:R): Ryder’s logistics business is good and XPO Logistics’ (NYSEMKT:XPO) business is even better.

Eastman Kodak (NYSE:KODK): The fundamentals aren’t great. Book profits.

Sirius XM (NASDAQ:SIRI): Their business is good and Cramer suggested holding the stock or buying more when it dips below $5.

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

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.

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

iRhythm Technologies Is In A Good Business – Cramer's Lightning Round (1/10/18)

Finances

iRhythm Technologies Is In A Good Business – Cramer's Lightning Round (1/10/18)

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

Bullish Calls

iRhythm Technologies (NASDAQ:IRTC): “They do heart palpitations. They do a lot of stuff that I was hoping that my watch one day would do, because that’s how you stop heart attacks, the most preventable form of death in this country. I like it.”

Southwest Airlines (NYSE:LUV): It still has room to go higher despite the downgrade.

General Dynamics (NYSE:GD): General Dynamics, Raytheon (NYSE:RTN) and Lockheed Martin (NYSE:LMT) are all good and due for another up move. Hold it.

Toyota Motor (NYSE:TM): It’s a beast. Buy it.

Bearish Calls

Frontier Communications (NYSE:FTR): Their balance sheet is bad. Use the strength in the stock to sell and get out of it.

Southwestern Energy (NYSE:SWN): They have too much natural gas and not enough oil.

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

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

Source link
____________________________________
For additional Financial articles, visit my site: Through The Eyes of Geek

For more Cramer, visit here: Cramer’s Picks

Subscribe

Archives

Categories

Calendar

January 2018
M T W T F S S
« Dec    
1234567
891011121314
15161718192021
22232425262728
293031  

Follow me on Twitter