Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday July 24.
Is Apple (NASDAQ:AAPL) Irrelevant?
Apple (AAPL) is not getting much love from analysts who say the market for its phones isn't growing anymore and sales of the iPhone 5 are not good enough.The analysts are ignoring Apple's emerging market sales, and only China and the U.S. matter to them. Things aren't as good as Apple's management says they are, but Cramer doesn't think Apple is as bad as analysts say it is. Their basic message: Apple is no longer relevant. Cramer thinks Apple is now a battleground.
Caterpillar (NYSE:CAT), US Airways (LCC), General Dynamics (NYSE:GD), Boeing (NYSE:BA), Northrop Grumman (NYSE:NOC), Home Depot (NYSE:HD), Walter Energy (NYSE:WLT)
People are worried about higher interest rates, and that the Fed will start tapering. Cramer thinks that companies are demonstrating that the economy is getting stronger, so tapering might well happen in the near future. While Caterpillar (CAT) disappointed, Cramer thinks CAT's problems are specific to the company's expensive acquisitions and slowness in China, but the Chinese economy is not the U.S. economy. The auto market is going strong, defense names like General Dynamics (GD) and Northrop Grumman (NOC) are going higher, and orders at Boeing (BA) are up. Aerospace, as shown by US Airways' (LCC) performance, is strong. The sectors that do well in a strong economy are in bull market mode; that demonstrates that the economy is getting stronger, not weaker.
Cramer took some calls:
Home Depot (HD) may see a dip, and when it does, Cramer intends to buy more for his charitable trust.
Walter Energy (WLT) has a worrisome balance sheet and there are concerns about coal. Cramer thinks WLT is a battleground.
CEO Interview: Mike Thaman, Owens Corning (NYSE:OC)
This leading maker of insulation, fiberglass and roofing has seen a 28% gain since May. However, it reported a 12 cent earnings miss with revenues declining 3.2%. The stock barely moved after the disappointment, and Cramer thinks this is a good sign of the strength of the company. CEO Mike Thaman said the earnings miss was the result of the timing of roofing volumes, and he believes there will be a more natural progression in roofing by the end of the year. He is not concerned that rising rates will negatively affect demand for homes. In fact, he thinks the rate rise could spur new demand initially as people rush to buy homes before rates go higher. Stricter energy standards in new homes is good news for OC's insulation business.
W.R. Grace (NYSE:GRA), Jazz Pharmaceuticals (NASDAQ:JAZZ), Celldex Therapeutics (NASDAQ:CLDX), TearLab (NASDAQ:TEAR), Facebook (NASDAQ:FB), Compuware (NASDAQ:CPWR), Radian (NYSE:RDN), Krispy Kreme (NYSE:KKD), JDS Uniphase (JDSU), Blackstone (NYSE:BX), VirnetX Holding Corp (NYSEMKT:VHC), Catamaran (NASDAQ:CTRX)
Cramer revisited some speculative recommendations. W.R. Grace (GRA) is exiting bankruptcy and should see a move upward. Jazz Pharmaceuticals (JAZZ) is up 4% since June and is worth buying into weakness. Celldex Therapeutics (CLDX) should release more data about drugs by the end of the year and has risen 55% since May. Cramer would take some profits and let the rest run. TearLab (TEAR) is up 30% in spite of its secondary and is on a roll. It pre-announced better than expected numbers. Cramer would take some off the top but keep the bulk of the position. Facebook (FB), a holding in Cramer's charitable trust, has been a hated stock, but reported a great quarter. Compuware (CPWR) is in a hated sector, tech, but it can rebound. Those who hold CPWR can keep their positions, but they have to be patient. Radian (RDN) has risen 74% since January. Cramer is still bullish, but he suggests taking profits on a portion of it. Krispy Kreme (KKD) has risen 63% so far this year. Again, Cramer would take some profits. JDS Uniphase (JDSU) has risen 6% since January; it should see more upside, since it is doing a lot of things right. Catamaran (CTRX) has gained only 2% since the beginning of the year, but it has won a few good contracts and reports in a week. Cramer's biggest regret is recommending VirnetX (VHC), which has declined 48% since the beginning of the year. Cramer reminded viewers he recommended using call options, and those who followed themselves would have been stopped out higher than where it trades now. VHC is still too risky.
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