Category: Finances

Ford Is A Buy For The Yield – Cramer's Lightning Round (9/8/16)

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Ford Is A Buy For The Yield – Cramer's Lightning Round (9/8/16)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Thursday, September 8.

Bullish Call

Ford (NYSE:F): It is a fine stock with good yield and a great balance sheet. The company’s Chinese sales were good, but Cramer thinks the stock does not have a positive catalyst to rally.

Neutral Call

Cliffs Natural Resources (NYSE:CLF): At $6, it’s too late to sell it. There is no case to buy the stock either.

Bearish Calls

Brightcove (NASDAQ:BCOV): The company is making money, but the stock has run up a lot. This is not the price at which to buy.

Sarepta Therapeutics (NASDAQ:SRPT): “This is one of the highest-risk stocks in the world. It’s a binary stock; they either get approval or they don’t. If they get approval, the stock has still doubled from $28. And if they don’t get approval, the stock can get crushed. I think it’s way too risky for me.”

Marathon Oil (NYSE:MRO): Though it has worked its way up, Cramer thinks Pioneer (NYSE:PXD) and EOG Resources (NYSE:EOG) are better picks. Investors who are willing to speculate should go for Occidental Petroleum (NYSE:OXY).

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The Market Is Getting Treacherous – Cramer's Mad Money (9/8/16)

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The Market Is Getting Treacherous – Cramer's Mad Money (9/8/16)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Thursday, September 8.

The reaction to the sharp drop in oil inventories shows the markets have a one-track mind. “When you have a market that decides only one thing is working, and it doesn’t bother with anything else, you have a market that is a lot more treacherous than it seems,” said Cramer. The 14.5M oil inventory decline last week was the largest since 1999.

It seems no one saw the inventory decline coming, and that people thought the price of oil would keep falling. The decline led investors to believe the oil supply thesis was overstated, and they ran to buy energy stocks, which had a good Thursday. The market’s one-track mind just favors one group and punishes the rest. “Lots of companies and sectors are laying down on the tracks, so to speak, almost in order to facilitate the smooth train ride for the oils,” he added.

For instance, Apple (NASDAQ:AAPL) fell 3% when the company reported it will stop reporting weekend sales for the iPhone 7, which is a great phone for Millennials, in Cramer’s opinion. The worst part was the market punishing retail stocks after weak numbers from Pier 1 (NYSE:PIR) and Tractor Supply (NASDAQ:TSCO).

This limited thinking is irrational and could prove treacherous for everyone.

CEO interview – Spark Therapeutics (NASDAQ:ONCE)

At a time when biotech is struggling, Spark Therapeutics has outperformed. It is a developmental-stage biotech that is focused on gene therapy, and the stock is up 30% for the year. Cramer interviewed CEO Jeff Marrazzo to learn more about the company’s retina therapy drug.

“Last year, we completed successfully a phase three clinical trial. It was a pivotal trial that was randomized and controlled for gene therapy in a genetic disease. That is a significant milestone, and we now are busy preparing and are near substantial completion of the first marketing authorization submission that we have put to the FDA,” said Marrazzo.

Almost 93% patients are regaining part of their vision with just one treatment. The response has been great, which is good news for other therapies as well.

Marrazzo also commented on the drug pricing issue, saying therapies that help patients gain lost functions and have long-term benefits should be rewarded. The system needs an overhaul to reimburse companies for their efforts.

Safety stocks

When safety stocks like General Mills (NYSE:GIS) guide down, it sends chills down investors’ spine. “This safety group may prove to be the most vulnerable out there at the moment, until the stocks come down to the point where their yields offer more support and the takeover chatter ends,” said Cramer.

Due to rising competition in the yogurt business, the company cut its guidance, which led to the stock falling by $3. “No names were mentioned by COO Jeff Harmening, but it looks like Danone’s (OTCQX:DANOY) in there taking share and taking no prisoners. And it could get even worse now that the French powerhouse has acquired WhiteWave (NYSE:WWAV),” said Cramer.

Even the safe Campbell Soup (NYSE:CPB) stock has fallen 16% in the last 2 months due to rising competition. This is a large decline for a food stock that has rallied in the past few years. Both the companies are moving in to the natural and organic space, as it has more growth. However, competition from private-label brands like TreeHouse (NYSE:THS) is making things difficult for them.

“The consumer has gotten even more frugal, while the supermarkets are trying to make as much as they can by pitting their suppliers against each other, and there has been unprecedented food price deflation,” said Cramer. “The deflation in food is the black hole that investors are just waking up to,” he added.

Investors who own stocks like Kellogg (NYSE:K), ConAgra (NYSE:CAG), Church & Dwight (NYSE:CHD), Kimberly-Clark (NYSE:KMB) and Clorox (NYSE:CLX) should be ready to sell. When these stocks fall enough to have support from their yields, one should buy into them.

Off the tape

Cramer went off the tape to review the privately held Blaze Pizza, which is a unique build-your-own pizza concept that lets consumers choose from over 40 fresh toppings and bakes their pizza in just three minutes. He interviewed President and COO Jim Mizes to know more.

Mizes said anyone can make a pizza, but only a chef can make a high-quality pizza like Blaze does. The company uses fresh ingredients and no artificial flavors. The combination of the ingredients used, speedy service and overall good experience makes Blaze a success.

Blaze Pizza is backed by basketball star LeBron James. “He saw what Blaze Pizza and what this category could be, so he started as an investor and then became a franchisee. And then he was so into Blaze that he came all in,” said Mizes.

Viewer calls taken by Cramer

Petrobras (NYSE:PBR): With the real gaining strength, the stock was able to rally. Stay away, as the company is not in a good situation.

Etsy (NASDAQ:ETSY): It had a good quarter, and Cramer likes the stock.

Pepsi (NYSE:PEP): The company has the best organic growth numbers in the food business, and this is a great stock to buy.

Costco (NASDAQ:COST): For Cramer’s trust, the target price to buy more is $150. Don’t give up on this one.

Hain Celestial (NASDAQ:HAIN): Stay away from this one, as it has accounting irregularities.

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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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Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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Excessive Competition Hurts Shareholders – Cramer's Mad Money (9/7/16)

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Excessive Competition Hurts Shareholders – Cramer's Mad Money (9/7/16)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Wednesday, September 7.

Competition is good for consumers but not necessarily for shareholders. High competition leads to price cuts and shrinkage in margins that is not good news for shareholders. Wednesday was a day for stocks that saw reduced competition. “There is just enough competition among companies to keep their stock in check, but when the competition lessens, companies are instantly rewarded with stocks that rally, making it worthwhile to stick around to see what group will be the next one to soar,” said Cramer.

The airlines group rallied in 2014 after mergers left few big players in the market. They took advantage of price increases. In 2015 they started adding more capacity for greater market share which led to immense competition and price wars. The airlines group has been in pain since then. When Southwest Airlines (NYSE:LUV) announced that it will reduce the rate of capacity increase to 4%, its stock rallied with pin action in other airline stocks.

There is little competition in the DRAM and flash semiconductor space. Western Digital (NYSE:WDC) announced better than expected results which led to a 12% rally in its stock. Cramer thinks Micron Technology (NASDAQ:MU) will gain from reduced competition as well. Many companies have given up making flash memory chips which has led to supply constraints. This gives the existing companies like SanDisk better margins.

Sprouts Farmers Market (NASDAQ:SFM) showed what happens with too much competition. It was expected to take share from Whole Foods (NASDAQ:WFM) but the company mentioned it will have flat same-store sales. “A tremendous growth story with flat same-store sales is actually a no-growth story, with shareholders fleeing as if Sprouts sells nothing but Spam and Velveeta,” said Cramer.

Cramer thinks that stocks of Dave & Buster’s (NASDAQ:PLAY) and General Mills (NYSE:GIS) suffer from excessive competition. “One of the reasons why this market hasn’t been beaten to a pulp is that almost daily we hear a story of supply taken out of lessened competition,” he added.

CEO interview – Dave and Buster’s (PLAY)

Dave & Buster’s stock has done well since going public in 2014. Its stock declined 2% on Wednesday after it reported weaker than expected earnings. The company reported 1% same-store sales growth down from 10% last year. The management has maintained its full year guidance but cut the same-store sales growth expectation by 1%. Cramer interviewed CEO Stephen King to hear more about the last quarter.

King said that they are optimistic for the second half of the year. “We feel really good about our promotional lineup both from advertising and sports standpoint as well as some of the games we have coming up,” he added.

King said that cable and advertising has remained most effective for the company along with live sporting events. He also agreed that macroeconomic pressures have been hurting the casual dining space.

CEO interview – Starbucks (NASDAQ:SBUX)

Cramer is a fan of Starbucks which has taken corporate social responsibility to a new level by doing good for society and its employees via various social programs. The company is connecting with its customers in unique ways. Cramer interviewed CEO Howard Schultz in the special segment.

“I think as Americans unfortunately, we have been witnessing the very worst of a terrible political season, which has been such hatred and vitriol and divisiveness. In view of that, so many Americans have been led to believe that the story of America is just that, when in fact I believe there are ordinary Americans doing extra-ordinary things,” said Schultz.

In the original content series called “Upstanders” by Starbucks, the company aims to highlight stories of humanity. “This is not about marketing, it’s not about PR. It’s certainly not a branded series. This is just sharing these kinds of stories about ordinary people doing extraordinary things, and this is about citizenry. I think at a time in America we are witnessing such a dispirited level of divisiveness in terms of political situation, let’s find the true American story.”

Schultz said that Starbucks is not a tech company but they have invested heavily in technology and content to leverage customer experience in their stores. He also said that the company has lots of opportunities around the globe despite being a mature company, and opening one new store a day in China is just one of them.

Chipotle (NYSE:CMG)

If history is an indication, Bill Ackman is right about Chipotle. History shows that investors should buy stocks before the anniversary of health scare news to catch a bottom. “History is on Ackman’s side. Sometimes that is all that matters. I still believe that there will be a chance to get into this stock at a lower price, because the current quarter likely won’t be anything to write home about,” said Cramer.

Cramer thinks analysts will upgrade the numbers for Chipotle after it reports. “I said to buy Chipotle at $400, and I reiterate that statement. If it comes closer to that level, I think you should join Bill Ackman and invest in the stock of this once great and soon to be great again restaurant chain,” said Cramer.

Investors are focused on what Ackman has to say on the possible changes that management can make. Cramer thinks that Ackman will push Chipotle to go for the franchise model from its wholly-owned structure. It will be interesting to see how management takes that feedback as current management likes to keep tight control over its business.

Investors have more flexibility and hence Cramer thinks they can wait till Chipotle hits $400. “American people tend to forgive and forget. Soon Chipotle will be forgiven, the illnesses will be forgotten, and the stock will be ready to run, maybe not to the heights we saw before its 50% fall from grace, but certainly to levels that will make it worth betting on,” he concluded.

CEO interview – ResMed (NYSE:RMD)

ResMed is a medical device maker whose devices are used to treat breathing disorders like sleep apnea and chronic obstructive pulmonary disease. The company has invested in cloud technology recently with cloud based applications that help diagnose, manage and treat breathing disorders. Its stock is up 25% for the year. Cramer interviewed CEO Mick Farrell to find out what lies ahead.

“What we do across the spectrum is we take patients who are sick and in hospital and we put them in the home, and we take care of them in the home. We have portable respiratory devices and home respiratory devices that with sleep apnea literally help them breathe every night; give them the gift of breath,” said Farrell.

Farrell said that 89% of the patients with sleep apnea do not know about their condition. This means that there are tremendous growth opportunities for the company. He added that ResMed is also a leader in technology with over 2M connected devices that send data to physicians and patients to improve healthcare.

Viewer calls taken by Cramer

Dow (NYSE:DOW) – DuPont (NYSE:DD) merger: Cramer’s trust owns Dow Chemical for the yield whereas DuPont has gone up a lot for the yield to be small.

J. M. Smucker (NYSE:SJM): Competition in that space is hurting their margins. It makes sense to buy at $140.

Lululemon (NASDAQ:LULU): They are spending for the future and this is the right time to buy.

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Avid Technology Is A Buy – Cramer's Lightning Round (9/7/16)

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Avid Technology Is A Buy – Cramer's Lightning Round (9/7/16)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Wednesday, September 7.

Bullish Calls

Disney (NYSE:DIS): The stock is acting terribly which makes it tough in the short term. Cramer remains a believer in the franchise for the long term.

Tech Data (NASDAQ:TECD): Tech Data is in a good situation and has European exposure. Cramer likes it.

Avid Technology (NASDAQ:AVID): Their technology is superior and Cramer thinks they should have got a takeover bid. If you want to go for the cloud, then Avid is the stock to buy.

IBM (NYSE:IBM): “I have liked IBM since it bottomed at $140. I am not pounding the table, but I do agree with you that it is an inexpensive stock with a good yield and I think it is going to have a decent quarter. But remember, there are many companies that think they are cloud kings. This is one of them.”

Cummins (NYSE:CMI): Cummins went down as Navistar got an investment from Volkswagen. Many people are saying negative things about Cummins but Cramer thinks Deutsche Bank is correct about the gross margins of Cummins and Caterpillar (NYSE:CAT). Cramer likes both the stocks.

Bearish Calls

Corrections Corp of America (NYSE:CXW): They have a headline risk. Stay away.

Sage Therapeutics (NASDAQ:SAGE): The secondary offerings have worked as an opportunity in this industry but Cramer recommended not overstaying the welcome. He prefers companies with strong balance sheets that do not require raising capital.

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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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Mergers Are Pulling Up The Market – Cramer's Mad Money (9/6/16)

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Mergers Are Pulling Up The Market – Cramer's Mad Money (9/6/16)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Tuesday, September 6.

Just when investors want to give up on the market, money fell in their laps in the form of mergers and acquisitions. The fear of a slowing economy and an upcoming rate hike is not enough to pull the market when the circumstances are right.

For instance, EOG Resources (NYSE:EOG) has been using the lower oil price as an opportunity to acquire companies. It acquired Yates Petroleum for $2.5B in a stock deal to gain assets in the Permian Basin. “I keep wondering when the heck the majors are going to start fishing in the Permian, but these independents simply aren’t waiting. They are consolidating all the good prospects, particularly in the Permian Basin,” said Cramer.

Enbridge (NYSE:ENB) and Spectra (NYSE:SE) came together to create the largest pipeline company in the US. Enbridge paid Spectra $28B in stock to gain 43% stake in the joint venture. Both the stocks went higher on the news.

In biotech, Danaher (NYSE:DHR) acquired CEPHEID (NASDAQ:CPHD) for $53 a share in cash. In the industrial space, Johnson Controls (NYSE:JCI) completed the Tyco (NYSE:TYC) merger. The companies that do well in the slowing economy are easy to spot. Case in point were the FANG stocks which are growing at a rapid pace.

Furniture retailers

Furniture retailers have had a terrible year despite the housing market gaining strength. Stocks of Restoration Hardware (NYSE:RH), Williams-Sonoma (NYSE:WSM) and Wayfair (NYSE:W) haven fallen sharply from their all-time highs. Cramer dug deeper to find out what went wrong.

Williams-Sonoma has fallen 40% from its all-time high. It delivered in-line earnings and weaker than expected revenue last quarter with flat same-store sales. The business is not expected to improve soon which makes the stock expensive at 14 times earnings.

Restoration Hardware was a high growth stock that has fallen more than 60% in the last year. The stock is in freefall but the news of the company’s CEO buying shares is an encouragement. Lastly, the internet retailer Wayfair fell 20% on the last quarter report. Weaker than expected revenue means the stock does not have the high growth it once had.

Cramer said that there is no case for buying any of the three stocks. J.C. Penney (NYSE:JCP), on the other hand, reported good earnings citing furniture as its strongest category. Cramer thinks it’s a bargain.

Walgreens (NASDAQ:WBA) – Rite Aid (NYSE:RAD) deal

The longer a merger approval takes, the more doubts there are in the minds of investors as the federal government has become aggressive in blocking deals on antitrust grounds. There was a big development in the Walgreens-Rite Aid deal last week as Kroger (NYSE:KR) would be a potential buyer of the overlapping assets of both.

Now, it is not enough for a company to sell overlapping assets to anyone just to please regulators. They must make sure the assets go to a well-capitalized entity.

Since Kroger has emerged as a buyer of the overlapping stores, is well capitalized and also has experience in running pharmacies in its stores, this is what the regulators were looking for in the first place. Cramer thinks the Walgreens deal will go through.

Apple’s (NASDAQ:AAPL) chart

Cramer took a technical view on Apple with the help of technician Carolyn Boroden. The weekly chart of Apple shows that it is forming a bullish pattern. If it can pass the resistance of $110-112 range, it will face another one at $116-121 range. Post that, it will be a smooth sail till $146.

The daily chart made a bullish crossover pattern with the 50-day moving average moving above the 200-day moving average. This is a bullish sign for technical analysts.

Fed’s interest rate decision

Cramer is of the opinion that the Fed will make an incorrect decision if it raises rates. If the Fed says that they are data dependent like everyone else, they shouldn’t have made a case for multiple rate hikes. The fear in investors could lead to a recession.

If the Fed raises rates, it will lead to a sell off as weak employment numbers and service PMI show that the economy is not ready to handle hikes yet.

Only 20% of the economy benefits from a rate hike and 80% does not. Investors should be prepared to lose if the rate hike is not data-driven.

Viewer calls taken by Cramer

HP Inc (NYSE:HPQ): It’s an inexpensive stock but they have to get their costs down. There are better fish in the pond.

Tractor Supply Company (NASDAQ:TSCO): Their last quarter was not as good as expected. It’s a buy when it falls to $80.

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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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Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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General Electric Is A Buy – Cramer's Lightning Round (9/6/16)

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General Electric Is A Buy – Cramer's Lightning Round (9/6/16)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Tuesday, September 6.

Bullish Call

General Electric (NYSE:GE): “People went really crazy about it today thinking that this 3D acquisition that they made, which is two little companies in Europe, matters. It does not. What we need to see is big buyback how Nelson Peltz wants to see from Trian, who is dead right.”

Bearish Calls

Lazard (NYSE:LAZ): It’s a slow growth stock which yields 4%. Cramer recommends not to play with calls on this stock.

Public Storage (NYSE:PSA): It’s not a great stock. Ventas (NYSE:VTR) is a better pick.

Magna International (NYSE:MGA): The auto situation is not good and this is not the best of breed stock.

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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 J.C. Penney At $10 – Cramer's Lightning Round (9/1/16)

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Buy J.C. Penney At $10 – Cramer's Lightning Round (9/1/16)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Thursday, September 1.

Bullish Calls

Altria (NYSE:MO): “I am of two minds on Altria. I don’t recommend tobacco stocks, but if someone insists on getting some yield and wants to be in them, that is fine. And Altria is the best of breed; sadly, because I don’t like the breed.”

Ellie Mae (NYSEMKT:ELLI): CEO Corr told a very compelling story, and Cramer is thinking of buying the stock for his trust too.

Encana Corp. (NYSE:ECA): Encana is making a comeback, but Occidental Petroleum Corp. (NYSE:OXY) is a high-quality stock, as the company has no problems in paying out a dividend.

Magna International (NYSE:MGA): It’s a good stock, but the auto parts business has limited growth potential.

J.C. Penney (NYSE:JCP): $10 is a terrific price to buy the stock.

Bearish Calls

FirstEnergy (NYSE:FE): This is a low-quality stock. Cramer recommended American Electric Power (NYSE:AEP), which is owned by his charitable trust, or Dominion Resources (NYSE:D).

JetBlue (NASDAQ:JBLU): This is a very tough group. Delta Air Lines (NYSE:DAL) is a better pick, and Southwest (NYSE:LUV) is a favorite with Cramer.

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Confusion In The Stock Market – Cramer's Mad Money (9/1/16)

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Confusion In The Stock Market – Cramer's Mad Money (9/1/16)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Thursday, September 1.

The market is very inconsistent as the data does not add up. “News defies the truth. Facts are stranger than fiction. Conundrums do not make for fabulous investing opportunities. So, until we clear up the inconsistencies, be careful out there,” said Cramer. The data shows that the economy is positive but the manufacturing PMI came in at 49.4. Britain’s PMI on the other hand was 53 despite the Brexit.

There is a rise in oil supply which is driving the crude price down thereby affecting the whole market. There are rumors that OPEC producers have agreed to cut back on production. “Rumors always do the job of propping oil right back up. So, the real market should be lower, but the phony market keeps it higher,” added Cramer.

Fed is adding to the confusion with an upcoming rate hike. Cramer expects Non-farm payroll to be strong. Vice Chair Stanley Fischer put the thesis of two rate hikes back on the agenda within hours of Yellen’s speech. Why is Fed confusing investors?

Cloud and cyber-security stocks were pounded on Wednesday only for the investors to buy it back on Thursday. Retail stocks are confusing the market too. Airline stocks are cheap but they have huge cash hoards being returned to shareholders.

None of the sectors are making sense to Cramer and hence there is a lot of confusion. “I can’t blame a soul for being frustrated with this market. I can’t fault anyone for wanting to sell now that we are in what’s historically been the worst month of the year, facing a rate hike or even two, and uncertain earnings from companies that rarely miss,” concluded Cramer.

Salesforce (NYSE:CRM)

After CEO Marc Benioff interview with Cramer is taking him at face value. While the market was not happy with the stock after the company’s guidance was less than what analysts expected. “When a person with an exemplary record of beating the highest of expectations slips up and tells it like it is, blaming his team and, more important, himself for the miss, you give him the benefit of the doubt,” said Cramer.

The company not only beat the quarter but raised its full year guidance but next quarter’s revenue guidance was lower than analysts. What caused them to lower next quarter’s guidance? In Cramer’s opinion, Salesforce had made many acquisitions this quarter which tend to distract at first, but smart executives understand the risk.

Currency led to $150M loss in revenue which was brutal. Benioff also said that US was soft which surprised Cramer. Benioff also said that July was disappointing due to the company’s execution but not the economy.

Investors think that business had become tough and that Salesforce lost business to others. That is not true. Cramer said the Benioff is always working. “Believe me when I say he is always working, no matter where he is. But I’m sure there will be some who say that without Benioff riding herd every minute these days, the company couldn’t make the numbers and that is because the space has gotten so crowded that there is no room for leisure. I think it’s a harsh judgment,” he added.

If Salesforce stock goes lower, buy it.

Golf business

The golf business has been slowing for many years. “When it comes to sporting goods, golf exposure has been downright radioactive, as least as far as Wall Street is concerned,” said Cramer. As fewer young people were taking interest in the sport, Nike (NYSE:NKE) and Adidas (ADDDY) exited the golf equipment business.

The number of golf rounds played increased this year since 2012 and the expectations are also low in this year which means there is a chance to make money. Cramer gave his stock picks with exposure to golf business for investors to keep an eye on.

Callaway Golf (Pending:ELF) holds 15% stake in TopGolf which is gaining popularity as a new concept. The company’s sales are rising and the gross margins are improving. Its stock is up 22% for the year.

Dick’s Sporting Goods (NYSE:DKS) is a big retailer of golf equipment which has seen its stock rise 65% as Sports Authority went bankrupt. It trades at 16 times earnings. The upcoming IPO of Acushnet should be watched too, as it owns the Titleist brand.

Cramer’s homework

Cramer came back with the homework on the stock he could not opine on earlier.

GCP Applied Technologies (NYSE:GCP) is into construction materials business. The company has a poor balance sheet with $875M debt. The stock has already rallied 75% and trades at 18 times earnings. Cramer would not chase it.

Puma Biotechnology (NYSE:PBYI) is a biotech company with one breast cancer drug in development. The stock has fallen from a high of $280 in 2014 to a low of $58 on disappointing clinical data. It is worth investing at these low levels but the risk is high as the failure of the drug will mean an end for the stock. Lastly, Mednax (NYSE:MD) is a healthcare provider which has been growing via acquisitions. Such companies are out of flavor for the market currently.

Viewer calls taken by Cramer

Zoe’s Kitchen (NYSE:ZOES): It’s a tough situation based on what the management said on the conference call.

Square (NYSE:SQ): “If you like super high growth, then this would be the stock for you.”

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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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Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

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

For more Cramer, visit here: Cramer’s Picks

Crude Oil Is Hurting Stocks – Cramer's Mad Money (8/31/16)

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Crude Oil Is Hurting Stocks – Cramer's Mad Money (8/31/16)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Wednesday, August 31.

Just when Cramer thought that the link between crude oil and stocks was diluting, Wednesday proved that theory incorrect. “This whole day could have been a lot worse, and it was for most of the session. But I saw many of the same buyers who had marked up stocks earlier in the week back in there supporting them after they got hit,” said Cramer.

The EIA inventory report showed that oil inventory increased by 4.5M barrels to a record of 2.1B barrels. There is lot of oil coming from overseas and the US is still pumping oil. If the oil price keeps struggling, then stocks might not be able to handle the rate hike.

There is a technological side to oil as well and it is not just about demand and supply. “The amount of technological innovation that this industry has seen in the last 18 months should dazzle even the most grizzled Silicon Valley veterans,” said Cramer. Lots of people are buying fuel efficient cars and oil companies are finding ways to cut costs by enhancing drilling technology. When the stock market declines with oil, it is an opportunity for investors, especially with the cyclical stocks. Oil stocks should not be bought as the hot money has to come out of it.

Money managers are not performing well. Cramer mentioned that there is marking up of performance by fund managers on the last day of every trading month. The SEC has been monitoring fund performance but the mark up is taking place three days before the month end. “I know many of you still can’t believe this stuff happens. Trust me, I’ve seen this kind of malfeasance with my own eyes and it is one of the lesser evils of the trade,” he added.

Another reason for the decline in stocks is due to high PE stocks. When such stocks slash guidance, analysts cut estimates and the stock falls. Palo Alto Networks (NYSE:PANW) was the latest victim.

CEO interview – United Continental Airlines (NYSE:UAL)

CEO Oscar Munoz is back at the company after one year’s medical leave. Cramer interviewed him to find out what lies ahead. “I think it’s a group that at a point in time, we may have the best board in the industry, along with the best management team. So we are ready to go,” said Munoz.

Before joining United Continental, Munoz worked for a decade at CSX Corp. (NYSE:CSX). Munoz mentioned that the airline industry faces cyclical headwinds. “That is why you put a great team together, that’s why you put a strategy that takes care of all the different sorts of cyclical events, and then when it pops up you’re ready to go,” he added.

He also noted that railroads differ from airlines as the latter is a people business. United Airlines has over 86,000 employees and carries 140M passengers per year. He wants the customer and employees to engage more. “We have been hard at work with that from our labor perspective, from our management groups. We need to treat people better,” he said.

Munoz is also making a team to handle issues like struggling energy sector, strengthening dollar, Zika and declining traffic for South American routes. CEO Scott Kirby from American Airlines (NASDAQ:AAL) is the new President of United Continental which led to its stock rising 8%. “Scott’s a great guy. He is a well-known commodity in the airline industry and United is glad to have him,” said Munoz.

He also spoke about capital allocation at United Continental as they want to reward the shareholders with stock buybacks and a dividend in the future.

Buffalo Wild Wings (NASDAQ:BWLD)

Buffalo Wild Wings reached its peak at $200 per share last year, after which the stock has fallen due to consecutive weak quarters. In the last six weeks, the stock has risen 20% from July lows but this still does not interest Cramer. This move was caused by a July quarter that was not as bad as expected and activist Marcato Capital taking a 5.1% stake in the company.

“Until we see some evidence of a turnaround, I don’t care that there is an activist at the gate, you need to stay on the sidelines with this one,” said Cramer. He said that Marcato’s history in activist investment positions is inconsistent. After taking a position in Buffalo Wild Wings, they have been coaxing the company to move into a franchise based model. Two weeks after that, the company announced a $300M stock buyback and new initiatives.

Marcato is still not happy with the company and called for making changes to its business for operational excellence. “I’ve got to say, aside from brooming the board and killing the new concepts, Marcato’s suggestions are a lot more vague than what you normally hear from activists,” said Cramer. He still does not see how the company is dealing with the issue of declining same-store sales which makes him want to stay away from the stock.

CEO interview – Salesforce.com (NYSE:CRM)

Salesforce fell 6% in after hours trading after better than expected earnings but disappointing guidance. Cramer interviewed CEO Marc Benioff to hear more about the quarter.

Benioff mentioned that the quarter was good but foreign exchange had a big impact on top and bottom lines. Brexit has led to a fall in the value of the Pound Sterling and yet the company is raising its revenue guidance for the year.

There was some softness towards the end of the last quarter but that was due to internal issues that were neither competitive nor macro-economic. US sales remain sluggish but Europe, Asia and Japan have full sales pipelines.

Salesforce is working hard at adding artificial intelligence to its cloud offerings and they will debut the technology at the company’s developer conference in October.

Viewer calls taken by Cramer

Alcoa (NYSE:AA): Cramer’s trust has been buying the stock.

Under Armour (NYSE:UA): The downgrade means there are hiccups in the short term, but the long-term growth story is intact.

McDonald’s (NYSE:MCD): Hold the stock as CEO Easterbrook is doing a good job.

Domino’s Pizza (NYSE:DPZ): Book profits on some of the position and let the rest ride.

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Potash's Merger With Agrium Is Good – Cramer's Lightning Round (8/31/16)

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Potash's Merger With Agrium Is Good – Cramer's Lightning Round (8/31/16)

Stocks discussed on the Lightning Round segment of Jim Cramer’s Mad Money Program, Wednesday, August 31.

Bullish Calls

Potash (NYSE:POT): Potash’s merger with Agrium (NYSE:AGU) gives the strength of retail and wholesale in one unit.

NovoCure (NASDAQ:NVCR): Cramer blesses the stock for speculative trade.

Yelp (NYSE:YELP): They had a good quarter and Cramer expects them to deliver again.

Bearish Calls

Incyte (NASDAQ:INCY): “That’s highly speculative. I think I want to hold off for now as I think September could be a dicey month for stocks like that.”

Cheniere Energy (NYSEMKT:LNG): Cramer does not like the stock without Charif Souki at the helm.

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

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