Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday March 12.
MasterCard (NYSE:MA), Dick's Sporting Goods (NYSE:DKS), Best Buy (NYSE:BBY), Sherwin Williams (NYSE:SHW), Boeing (NYSE:BA), Silver Wheaton (NYSE:SLW), Barrick Gold (NYSE:ABX), CVR Refining (NYSE:CVRR)
With the Dow up for the 8th straight day, Cramer thinks it might be time to take a pause before buying selected stocks. He doesn't trust many analysts who are suddenly turning bullish; "I don't like these newfound bullish fellow travelers." However, Cramer still likes the market, even though MasterCard (MA) and Dick's Sporting Goods (DKS) disappointed. Retailers are indicating that the consumer is strong, Cramer believes the 1 million projected new homes is a conservative number, and last week's jobs update was an indication of strength. However, he pointed out that the Dow moved up for 8 straight days only 5 times in the last 12 years, so the odds do not favor a 9th consecutive up day.
Cramer thinks recent upgrades have been "reckless." Goldman Sachs upgraded Best Buy (BBY) after it had run 71%. Credit Suisse upgraded Sherwin Williams (SHW) from a Sell to a Hold, even though the analyst had been bearish on the stock for 100 points, and it is now sitting at its 52 week high. Boeing (BA) announced new orders for planes, but Cramer thinks the run-up in this stock is a short squeeze, and short squeezes don't last; "Never force and do not chase."
Cramer took some calls:
Silver Wheaton (SLW) is a royalty stream for silver miners, and is the way to play Silver. Barrick (ABX) is not as good an investment in gold as SPDR Gold Trust (NYSEARCA:GLD); however, Cramer cautioned that the recent rise in gold is not a good sign for the rest of the market.
CVR (CVRR): "These refiners are making money hand over fist."
CEO Interview: Stephen Holmes, Wyndham Worldwide (NYSE:WYN)
Wyndham Worldwide (WYN), a lodging and hospitality services company and the leading player in the timeshare sector, has seen a 2,027% gain since the recession and has risen 50% since CEO Stephen Holmes appeared on Mad Money a year ago. Holmes discussed the commitment to returning capital to shareholders through increased dividends and buybacks. Concerning acquisitions, Holmes said the supply is not strong right now, but since supply is cyclical in the industry, he is willing to wait for an acquisition at the right price. The company has improved its online and mobile bookings system. He noted the timeshare business is fee-based, and therefore, has more visibility than similar businesses and more stability when the economy slows down. "I know it is up huge," said Cramer, "but WYN is definitely not done yet."
Casinos are off their highs, but the sector might be worth an investment; Wynn Resorts (WYNN) and Las Vegas Sands (LVS) are good picks for those who like the Macau story, and Caesars Entertainment (CZR) is a stock to buy for people who believe in a Las Vegas turnaround. Cramer consulted the technical analysis of Bob Lang, of RealMoney.com and explosiveoptions.net.
Caesar's daily chart shows that the stock broke out and held its level. In February, CZR reported a bad quarter, mainly because of Hurricane Sandy's damage to Atlantic City. The stock snapped back after this decline and showed strength. The stock is up 200% from its November lows, but Bob Lange thinks CZR has more room to run because of the cup and handle formation on the chart. Lange thinks the stock could go from $14.34 to $20.
Las Vegas Sands' daily chart is in consolidation mode, with the MacD showing a buy signal; the stock has been making lower lows and higher highs. If LVS breaks above $56, its next stop could be $70.
Wynn Resorts seems to have bottomed at $115, which seems to be its floor of support. The chart is showing a cup and handle formation, and Lange believes that if it breaks $125, it could go much higher.
Cramer took some calls:
Zynga (NASDAQ:ZNGA) is a decent speculative momentum trade.
NCR Corporation (NYSE:NCR) "should have moved more than it has."
eBay (NASDAQ:EBAY) is now a stock to be concerned about, because Samsung is developing technology to compete with PayPal.
CEO Interview: Richard Heckmann, Heckmann Corporation (HEK)
Heckmann (HEK) disposes of, treats and recycles waste water produced through the fracking procedure. Last year, falling natural gas prices meant a slowdown in drilling, which was an obstacle for the company. However, HEK has been offsetting this with acquisitions to diversify its business; it now is providing environmental solutions, such as recycling motor oils and anti-freeze. Heckmann is going to change its name to Nuverra Environmental Solutions. The company reported a 5 cent earnings beat, a 113% rise in revenues and the stock rose 11.3%.
CEO Richard Heckmann discussed the rapidly developing technology that enables drillers to unlock reserves more quickly and cheaply. Production was up 30% in the Bakken, even though the rig count didn't increase dramatically. Heckmann explained that drillers now can open new wells without increasing rigs. The recycling and treating process for fracking water is improving; "One day, you will use very little fresh water for fracking," he said. The company has 70% exposure to oil companies and 30% to natural gas, so while natural gas prices stay low, this is an advantage. When asked about government's attitude to natural gas drilling, which has been a controversial issue, Heckmann pointed out that President Obama, from time to time, has discussed natural gas and energy independence. Since there is fracking in 27 states, the state governments do not want to sacrifice jobs and revenues. Heckmann said natural gas drilling is necessary for the goal of energy independence; "By the end of this decade, it is fairly clear we will not be importing oil from the Middle East." Cramer commented, "I have urged you to stick with this stock the whole way. It was tough. It is no longer tough. Now it is just right."
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