Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday August 13.
Charts Of Steel: Market Vectors Steel ETF (NYSEARCA:SLX), Steel Dynamics (NASDAQ:STLD), Timken (NYSE:TKR), Nucor (NYSE:NUE), Cliffs Natural Resources (NYSE:CLF)
Technical analyst Tim Collins of The Street.com is calling a bottom in steel. The daily chart of the Market Vectors Steel ETF (SLX) has had a short-term bounce since June and has been accelerating the last few days, breaking out of an ascending triangle pattern. Collins thinks that if SLX breaks above its ceiling of resistance at $44, it could form a reverse head and shoulders pattern that could mean a 16% rise. The weekly chart shows that the MACD and TRIX are both showing bullish crossovers, and Collins believes that if the stock breaks through $46, it could go to $50 and then to $58.
Collins prefers buying Steel Dynamics (STLD) to the ETF. STLD is showing bullish crossovers of both the MACD and TRIX. If the stock breaks through $16, it could go to $18. Cramer prefers Timken (TKR), a holding in his charitable trust, because it has strong fundamentals, is a potential breakup play and has a lot of business in China, which seems to be on the road to recovery.
Cramer took some calls:
Cliffs Natural Resources (CLF) has been down on its luck, but has had an uptick. Cramer thinks it is too speculative and prefers Joy Global, a holding in his charitable trust.
Nucor (NUE) is breaking out. The stock has missed a few quarters. Cramer thinks that if it only meets the numbers, it may rise.
Vanguard FTSE Europe ETF (NYSEARCA:VGK), Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Banco Bilbao Vizcaya Argentaria (NYSE:BBVA), Royal Bank of Scotland (NYSE:RBS), Salesforce.com (NYSE:CRM), Cisco (NASDAQ:CSCO), US Airways (LCC), Boeing (NYSE:BA), Amazon (NASDAQ:AMZN), Dole (NYSE:DOLE), Campbell Soup (NYSE:CPB), eBay (NASDAQ:EBAY), Caterpillar (NYSE:CAT), Vale (NYSE:VALE), Joy Global (NYSE:JOY)
The economy overseas is getting better, and on Europe's recent strength, Cramer is buying Vanguard FTSE Europe ETF (VGK). eBay (EBAY), whose management complained the loudest about Europe causing weakness, is likely to rally. European banks are buys, especially Banco Bilbao Vizcaya Argentaria (BBVA) and the Royal Bank of Scotland (RBS). Google (GOOG) has a large European business and may have a breakout quarter. Apple (AAPL) also is affected by Europe, and lately expectations are so low for the company (the new iPhone is being panned even though no one has seen it yet), it may see significant upside. Carl Icahn is taking a position in Apple and the stock was so radically downgraded prior to that news that it is trading above many analyst estimates. Cramer predicts upgrades for Apple.
Strength in Europe will be good for China, since 25% of its exports go to the Continent. Minerals and mining should be coming back, particularly Caterpillar (CAT), Vale (VALE) and Joy Global (JOY). Japan is showing strength too; Salesforce.com (CRM) CEO Marc Benioff says sales are up dramatically in Japan.
Good news from overseas is offsetting some woes in America, such as Cisco's (CSCO) disappointing quarter and the Justice Department's blocking of the merger between US Airways (LCC) and American Airlines. However, this was good news for Boeing (BA), since more airlines means more plane orders.
Cramer took some calls:
Amazon (AMZN) is a buy because of its retail momentum; "It will take over the world."
CEO Interview: Gregg Engles, WhiteWave (NYSE:WWAV)
The healthy eating segment has been strong, but WhiteWave (WWAV) has been lagging behind the cohort, and is up only 13% since it came public in October. Cramer thinks there could be some upside for the company, especially given the popularity of its almond milk products. CEO Gregg Engles noted that almond milk sales have increased 50% since last year. "Our products are sustainable ... you will see the continual shift to the non-dairy alternative." Given the strength of the healthy eating trend and the loyalty customers have for WhiteWave products, the stock should see some upside.
CEO Interview: Sam Thomas, Chart Industries (NASDAQ:GTLS)
Chart Industries (GTLS) makes equipment that converts natural gas to liquids, tanks for transport and tanks for engines. The stock has tripled since Cramer got behind it in 2011, and is up another 20% since May. CEO Sam Thomas discussed the buildout of natural gas fueling stations and how demand for its products will continue to grow in China and the U.S.
CEO Interview: Rick Hamada, Avnet (NYSE:AVT)
Avnet (AVT) is a "supermarket of tech" and a great way to gauge the health of the sector. CEO Rick Hamada says he has seen improvement in Europe and strength in most other regions. The IT and software businesses are particularly strong, and improvement in margins has "given us some bounce in our step," said Hamada. Microprocessors are strong and the company issued a dividend because of improved visibility.
"Wow, what a turn," said Cramer.
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