Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday March 15.
12 Things To Watch In The Week Ahead: Dell (NASDAQ:DELL), Williams-Sonoma (NYSE:WSM), Cintas (NASDAQ:CTAS), FedEx (NYSE:FDX), Jabil Circuit (NYSE:JBL), Lululemon (NASDAQ:LULU), Nike (NYSE:NKE), Darden (NYSE:DRI), Tiffany (NYSE:TIF)
Dell (DELL) is in a sector that is in secular decline: PCs. Cramer would sell Dell first thing on Monday. The CEO has been trying to take the company private for less than it is worth, and its cash flow is poor.
February Housing Starts should show strong results. The bulls predict 1 million housing starts for the year, but Cramer thinks the number is closer to 1.2 million.
Williams-Sonoma (WSM) is a high-end play on housing and should give a read on the bullish housing trend.
Cintas (CTAS) is a uniform supplier, and what management says might be a precursor to the employment number in a few weeks.
Fed Meeting: This is the pivotal event of the week. Bears are worried that strong economic data might cause Ben Bernanke to raise rates and start selling bonds.
FedEx (FDX) reports, and is "the best barometer of international trade." The CEO is an economist, and usually gives an accurate read on the economy when the company reports.
Jabil Circuit (JBL) is a "good, cheap" tech play, and management might indicate in its report that it is about to see some of its former glory.
Nike reports, and Cramer is as cautious about Nike as he is about Lululemon.
Ross Stores (NASDAQ:ROST) is the retailer reporting on Thursday that might be worth buying if the market goes down ahead of earnings.
Darden (DRI) has missed two quarters, but the stock is on a tear. Its earnings report is worth paying attention to.
Tiffany (TIF) has missed 3 quarters in a row, but is still doing well. Cramer would not chase the stock, but if it gets hammered, he might consider buying this "teflon" stock.
Nordic American Tanker (NYSE:NAT), Diana (NYSE:DSX), Navios Maritime (NYSE:NM), Dryships (NASDAQ:DRYS)
The shipping industry has been a losing proposition for many years, but Cramer thinks it might be bottoming. In 2012, the Baltic Dry Shipping Index had its worst performance in 26 years, and dropped 41% on worries over China and the oversupply of ships. Cramer thinks rates can't go any lower, and the index has rebounded 26% year over year. With dwindling confidence in the industry, companies are ordering fewer ships, and as with housing, the oversupply might reverse itself.
Cramer thinks Nordic American Tankers (NAT) might finally be a buy, with a 6.7% yield and better day rates. WL Ross& Co is raising money to buy distressed shipping and transport companies, and private equity has its eye on the industry. Of the remaining 3 publicly traded shipping companies, Navios Maritme (NM), Dryships (DRYS) and Diana (DSX), Cramer prefers DSX, which he thinks is a buy at its current levels. At $8.88, the company is cheap, although it is close to its 52 week high. However, the stock is trading at a 4.5% discount to its book value, and if the industry returns to its long-term averages, DSX could see 77% upside. DSX has significant debt, but is the safest player in the sector. He would buy with limit orders.
Priceline.com (NASDAQ:PCLN), Regeneron (NASDAQ:REGN), Netflix (NASDAQ:NFLX), NewMarket (NYSE:NEU), Alexion Pharmaceutical (NASDAQ:ALXN), BioMarin (NASDAQ:BMRN), Salesforce.com (NYSE:CRM), CoreLabs (NYSE:CLB). Other stocks mentioned: Kyak (NASDAQ:KYAK), Apple (NASDAQ:AAPL)
On the 8th year anniversary of Mad Money, Cramer discussed 8 of the strongest performers of the past 8 years; most of these stocks were recommended by Cramer in the early seasons of the show.
2. Regeneron (REGN) has risen 2,780%, and was one of Cramer's first recommendations on Mad Money when it was trading at $5. REGN is a testament to the power of speculative biotechs, and has been the best performer in the Nasdaq.
4. NewMarket (NEU) has risen 1,587% and is one Mad Money missed recommending. This specialty chemical company makes additives to augment fuels, and is a play on the growth of refining. It has retired 23% of its share count and has issued a special dividend.
5. Alexion (ALXN) an oprhan drug company that has gained 1,579%
6. BioMarin (BMRN) another successful orphan drug company that has risen 1,197%
7. Salesforce.com (CRM) is the "king of the cloud," and has seen a 1,049% gain. Its last earnings were a "thing of beauty."
8. Corelabs (CLB) has risen 1,046% and specializes in technology to get more crude out of the ground. Cramer has been behind the stock consistently, and he thinks it has more room to run.
Will Merck (NYSE:MRK) Play Catch-Up? Other stocks mentioned: Pfizer (NYSE:PFE), Bristol Myers (NYSE:BMY), Celgene (NASDAQ:CELG)
Merck (MRK), with a 3.9% yield has been left behind by other big pharma names, and has been stumbling lately on negative headlines. Since December, Pfizer (PFE) is up 12%, Bristol Myers (BMY) has risen 20% and Celgene (CELG), a holding in Cramer's charitable trust, has risen 43%. Merck, in the same period, has risen only 1%. The company received negative news on clinical trials for its new cholesterol drug, and the medication, which had been approved in Europe, was pulled from the market. It announced a delay in its osteoperosis drug, and the FDA issued a study linking its diabetes drug to an increased risk of pancreatic disorders.
The claims about the diabetes drug and the risk of pancreatic problems isn't news; the company has issued a warning on its label since 2009. The FDA released no definitive statement of a link, but it was merely a study; in spite of the headlines, sales of the drug have increased 25%. Merck might spin off its animal health business, a move that was successful for Pfizer. Its merger with Schering-Plough should close by the end of the year, and will result in significant cost savings. The company has a rich pipeline, with 16 drugs in Phase 3 development. The company trades at 11.6 times earnings, and Cramer thinks it could add $10 onto its $44 price tag.
Jim Cramer's Action Alerts PLUS: Trade right alongside a Wall Street pro! Start your 14-day FREE trial today.
Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.