Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday November 16.
7 Earnings Reports To Watch In the Week Ahead: Lowe's (NYSE:LOW), Jack in the Box (NASDAQ:JACK), Best Buy (NYSE:BBY), Sears (NASDAQ:SHLD), Heinz (NYSE:HNZ), Salesforce.com (NYSE:CRM), Deere (NYSE:DE). Other stocks mentioned: Home Depot (NYSE:HD), Lions Gate Entertainment (NYSE:LGF)
Jack in the Box (JACK) reports, and should discuss its large-scale renovation scheme. Cramer would look for pin action in other restaurant stocks if Jack in the Box reports something positive.
Heinz (HNZ) may be bottoming, and is well-run. Heinz will benefit from lower commodity prices. Cramer thinks the quarter may be dynamite.
Salesforce.com (CRM) is “the heart of the cloud” and is likely to report a good number. Cramer would consider buying it on any macro weakness.
Chuy's (CHUY) is in the Mexican casual dining space which has the advantage of serving alcohol. The stock has pulled back six points, but is growing at a 20% clip. However, the growth might not be sustainable, as the company reported a small 1.5% increase in same store sales. Since Chuy's is up 64% from its IPO and 39% from its first day of trading, Cramer would take gains; “I’m not paying 33 times earnings for a stock with comps that low.”
Bloomin' Brands (BLMN), which owns Outback Steakhouse and other restaurants, has met expectations with same store sales up 3%. However, the stock ran 13% the first day of the IPO and has gained 17%. Cramer would take gains, especially given fiscal cliff concerns.
Del Frisco’s is the steakhouse chain to buy, with 32 restaurants in 3 different categories. While investors are cautious about steak places, the stock is barely above its IPO price of $14.44. Del Frisco’s has virtually no debt, and with a modest number of locations, there is room to expand. The company raised guidance and has a sturdy 16% growth rate. While the stock is “pretty darn cheap,” Cramer would wait for a pullback and use limit orders.
Omega Healthcare Investors (OHI) has an 8% yield that Cramer thinks is “too good to be true.” Cramer would avoid this REIT until there is some indication that the dividend is not going to be cut.
Greenway Medical (GWAY) is a healthcare technology company that signed a deal with Walgreen (WAG). However, the company sells at a multiple of 37, and is too expensive.
Dynavax's (DVAX) stock fell 47% on news from the FDA that it needs more safety information before approving its Hepatitis C drug. Cramer believes this is only a setback for Dynavax, and not a rejection, since 13-1 on the panel attested to the drug's effectiveness, and no safety issues were raised; the FDA simply wants more information. Cramer still likes Dynavax, because he thinks the selling is overdone.
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