Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday June 7.
15 Things To Watch in the Week Ahead: Apple (NASDAQ:AAPL), Lululemon (NASDAQ:LULU), Annie's (NYSE:BNNY), Coty (NYSE:COTY), Ulta Salon (NASDAQ:ULTA), Morgan Stanley (NYSE:MS), Philips Van Heusen (NYSE:PVH), Five Below (NASDAQ:FIVE), Gigamon (NYSE:GIMO), Restoration Hardware (NYSE:RH). Other stocks mentioned: Avon Products (NYSE:AVP), SPDR Gold Trust ETF (NYSEARCA:GLD), Silver Wheaton (NYSE:SLW)
The "big bad event" of the non-farm payroll number has passed, and it was not so weak as to inspire worries about the economy and not so strong as to make people fret about the Fed raising rates.
China Industrial Production and Retail Sales Number: This number is expected to be weak, but if it is a little bit better than expected, there may be a rally in cyclical stocks.
Apple (AAPL) Worldwide Developers Conference: People think Apple has lost its magic. This may change if it unveils a major product. If not, the stock will be dead money until it reports.
Lululemon (LULU) handled its pants recall well. The stock has been rallying. Cramer would take profits ahead of the quarter.
Annie's (BNNY): This high multiple healthy food play could struggle, but the theme of organic food is strong. Cramer would buy some if it drops.
Gigamon (GIMO) is expected to be a red-hot IPO.
Ulta Salon (ULTA) is worrying, since Goldman Sachs, which has been behind the stock, downgraded it. Perhaps the analyst suspects it will miss numbers.
Morgan Stanley (MS) Conference: Should provide information about financials in general. Treasurys have gone higher, and Cramer wants to see what is said at the conference about net interest margins, which he thinks are going higher. He is hoping that there isn't excessive focus on negatives, like regulations.
Phillips Van Heusen (PVH) took its guidance down, so it is less risky. The stock could be ready to roll after it got hit following its previous earnings.
Five Below (FIVE) got knocked down on insider selling and guilt by association with other dollar stores that haven't been performing well. Cramer thinks FIVE can put the negativity behind it and has solid expansion plans.
Piper Jaffrey Conference: Should give an indication on how strong or weak consumer confidence is.
Federal Budget Deficit Report: Should be a good number, and will probably show less spending and more tax revenues.
Initial Unemployment Claims: This number should validate the decent data on Friday.
Restoration Hardware (RH) requires high-end consumer spending. It has doubled since the end of 2012. It has rallied an additional 6 points since its secondary, and Cramer thinks the stock could go higher following its earnings report.
U.S. Industrial Production Number: Needs to be stronger than it will probably be.
Cramer took some calls:
CEO Interview: Rich Gelfond, IMAX Corporation (NYSE:IMAX)
IMAX Corporation (IMAX) was a struggling company for a while with a lackluster stock, but it is now seeing a turnaround. IMAX has become incredibly popular with movie goers, and the trend is spreading overseas, especially in China. IMAX is up 20% for the year, and it is heading towards the best part of the year for films--the summer and blockbuster season. IMAX has had challenges expanding in Europe because of the screen size restrictions on the Continent, but it is growing well in Latin America, Russia and China. "Consumers in China really like brands," said CEO Rich Gelfond. There may be imitators, but the power of the brand is the secret to IMAX's success in China. The company is employing laser-based technology to make images brighter. The company has grown aggressively in the last five years and Gelfond says he is working on consolidating that growth by improving efficiency and driving down costs. "IMAX has done quite well," said Cramer.
Jazz Pharmaceuticals (JAZZ) is a compelling speculative biotech. The stock has risen 15% in the last month; Cramer suggests letting it "cool off" a bit before buying, even though it has a very low multiple of 9 compared to its 16% growth rate. Cramer thinks the stock should be 25% higher, but the reason the stock is so cheap is that it has a dark cloud hanging over it. A competitor is trying to develop a generic version of Jazz's narcolepsy drug, which generates 69% of its revenues. The reason the stock dropped $4 following its very successful earnings report is that the CEO made some remarks about this situation. However, Jazz is involved in litigation with the competitor, and Cramer thinks the company has a clear case and is likely to win. If Jazz is successful in its claim of patent infringement, there won't be a generic equivalent of the narcolepsy drug on the market until 2019, or even longer.
Jazz also has an oncology franchise with an early stage drug for leukemia, an anti-psychotic drug, and a treatment for depression and anxiety. Cramer likes Jazz's story, but there is no reason to chase the stock. He would wait for a decline to buy.
Cramer took a call:
Catamarin (CTRX): Cramer was surprised to see this stock down, since high-multiple stocks are no longer being punished.
Mad Tweets: Chuy Holdings (NASDAQ:CHUY), Nextera (NYSE:NEE), Duke Energy (NYSE:DUK), ConEdison (NYSE:ED), Infinera (NASDAQ:INFN), Waste Management (NYSE:WM), Facebook (NASDAQ:FB), Las Vegas Sands (NYSE:LVS)
Chuy (CHUY) has had a 55% run since the beginning of the year. It is a super fast grower and is expanding its store base by 20% for the year. However, its multiple of 42 is too rich. Cramer might consider buying it lower.
Infinera (INFN) reported a terrific quarter, and Cramer now likes the optical telco players. It has run up, so Cramer would wait for a pullback to buy.
Waste Management (WM) dropped because it seems unlikely that the government will allow it to become a REIT. Cramer added to his WM position in the charitable trust on the decline.
Facebook (FB) reported a great quarter, and Cramer is surprised that FB, a holding in his charitable trust, didn't go up. It has been a "free fire zone" short, even though it has received 2 upgrades. FB is doing well as a company, but badly as a stock. Cramer is going to hold onto his position in FB.
Las Vegas Sands (LVS) is a good bet.
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