Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday May 10 . Click on a stock ticker for more analysis:
Grupo Aeroportuario Del Surreste (NYSE:ASR) - After a decline last year due to damage caused by hurricanes Emily and Wilma, Cramer expects ASR to become a turnaround story, and believes that it is already on the road to recovery. This private airport holds a virtual monopoly in Mexico and will continue to control that market in the forseeable future. Airlines have been paying 26.5% more to airports, and this fee is not expected to decline anytime soon. ASR is a cheap stock which is expected to grow dramatically.
EuroZinc Mining Corp. (NYSEARCA:EZM) - Although the news is out that RTI International Metals has signed an $800 million contract to supply titanium to Airbus, it is still possible to be ahead of the game by purchasing EZM, which trades under $3 and supplies zinc and copper to RTI. EZM is expected to open a new zinc mine this year, which will increase production nearly tenfold.
Administaff (ASF) - CEO interview; CEO Paul Sarvadi defended his company against a rather lackluster report, and said that ASF enjoyed a 21% revenue growth and upwardly revised guidance. Cramer objected that the guidance was still below the consensus estimate, but Sarvadi argued that Wall Street had not taken into account the effect of taxes and the new shares. He also pointed out that gross profits tend to decline between the 1st and 2nd quarters, and that there will be an improvement when the shares are bought back. Cramer recommended caution until the buyback, but commented that ASF might deserve a second look.