Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday August 12.
Bob Lang, technical analyst at RealMoney.com, thinks that Lululemon (LULU), which swooned on the day CEO Christine Day announced that she was leaving, will not only recover, but may reach new highs. Since Day announced her departure in April, LULU has been moving steadily upward and has gained 10%. The MACD is flashing a powerful buy signal as the black line crosses the red line. After this pattern, which has happened with LULU three times in the last year and a half, there was consistently a rally in the stock. LULU could fill a 12 point gap up to $82, but Lang thinks it could go even higher to $100, since it lacks a ceiling of resistance.
The daily chart shows a bullish cup and handle formation. The Relative Strength Indicator has been going higher. Cramer was worried about LULU when Day departed, but it is likely that a new day will come for the stock.
Cramer took some calls:
J.C. Penney (JCP) has a bad chart, poor fundamentals and sluggish same store sales. Cramer does not like JCP.
CEO Interview: Rick Goings, Tupperware (TUP)
Tupperware (TUP) is becoming a status symbol among the growing middle class in emerging markets. Around 65% of TUP's business comes from these emerging market countries, and TUP has adapted its business model to each society. China, for instance, often suffers from water shortages and a lack of living space. In China, Tupperware focuses on its water products and encouraging strategies for direct sales that don't require spacious living quarters. Every 1.4 seconds, there is a Tupperware party going on somewhere in the world. The stock has returned 478% since Cramer got behind it in October of 2006, and has gained 11% since Cramer last spoke to CEO Rick Goings last April. Around 25% of the company's sales are new products, and unlike multi-level marketing schemes which often result in salespeople making the bulk of the purchases, around 90% of TUP's sales are to the end user. TUP rewards the shareholder with buybacks and raising the dividend substantially, but given the choice, Goings said, "The dividend is sacred." It is currently at a recent high for the company at 2.8%.
CEO Interview: Scott Wingo, ChannelAdvisor (ECOM)
ChannelAdvisor (ECOM) was a red hot IPO that rose 30% on its first day of trading. However, it is not just some flash in the pan; the company reported a lower than expected loss, a revenue rise of 28% and raised guidance for the quarter and for the year. The stock shot up 20% following earnings, and it hasn't moved back down. ChannelAdvisor uses cloud technologies to help retailers maximize ecommerce. ECOM focuses on a mobile strategy and has a Shared Success business model that involves a baseline fee from a client with extra incentives for ECOM and the client to create additional growth.
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