Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday September 6.
14 Things To Watch In The Week Ahead: Philips VanHeusen (PVH), Five Below (FIVE), Apple (AAPL), Restoration Hardware (RH), Lululemon (LULU), Kroger (KR). Other stocks mentioned: Whole Foods (WFM), Harley Davidson (HOG), Oasis Petroleum (OAS), Vera Bradley (VRA), Francesca's (FRAN)
Cramer discussed what to look for in the week ahead. There are many conferences that might move stocks, uncertainty about Syria, as well as mixed messages about macro data, interest rates and earnings. The waters may be choppy next week, in addition to the fact that September is usually a weak month for stocks.
Philip Van Heusen (PVH) has had a large run, but may report increased sales overseas, so it might go higher.
Five Below (FIVE) may say good things; the dollar stores have been performing well. Cramer would buy half ahead of the quarter and the other half if it drops.
Morgan Stanley Healthcare Conference
Apple (AAPL) Meeting: Expectations have fallen so low for Apple, that any news, including its new iPhone, may move the stock higher.
Restoration Hardware (RH), along with other high-end names, has been performing well. It sold off slightly, but might come back.
Chinese Industrial Production Number: Many have given up on China, but the Baltic Freight Index has gone higher and industrial stocks with exposure have been rising. This number may be better than expected.
Barclay's Energy Conference: Cramer would pay special attention to this conference, since oil has reached a 2 year high and there might be revisions upward.
Deutsche Bank Tech Conference
Men's Warehouse (MW) may make a comeback after the firing of its former CEO George Zimmer. Management should discuss how it plans to turn the company around.
Bank of America Healthcare Conference
Stifel Healthcare Conference
Lululemon (LULU) is saying goodbye to winner CEO Christine Day. There is no way of knowing how LULU will do without Day. Cramer thinks the situation is worrisome.
Retail Sales Number is a strong read on consumer confidence.
Cramer took some calls:
Harley Davidson (HOG) is a point off its 52 week high and could sell off.
Oasis Petroleum (OAS) has had a huge rally, and now is not the time to buy.
Microsoft (MSFT) announced it would buy Nokia's (NOK) handset business, and Nokia's stock jumped 31% on the news. Another $3 stock Cramer thinks may be a solid speculative play is Alcatel Lucent (ALU) which makes switchers, routers and other telco equipment. The decline in telco spending sent these stocks down, but now that wireless companies are in heated competition and are expanding their 4G networks, the whole telco equipment sector might see significant upside. Cienna (CIEN), for example, reported a strong quarter. ALU in particular may improve its performance because it recently won a major contract in Europe and has a new CEO and a new CFO who are committed to cutting costs and narrowing the company's focus to those areas where it has a significant edge. The company reported a better than expected number in July, and Cramer wouldn't be surprised if Nokia bids for parts of ALU.
Cramer took some calls:
Cirrus Logic (CRUS) is a good company, but Cramer is not touching suppliers right now, because they have been in decline since Apple lost its momentum.
CEO Interview: Jim Griffith, Timkin (TKR)
Timken (TKR) is breaking itself up into two divisions: a steel company and bearings segment. At first, management resisted shareholders' request for the split, but CEO Jim Griffith said that the growth in the integrated company could benefit shareholders best by splitting up the company, and he is confident that the decision will unlock value. "Both segments were industry leaders." When asked if he is worried about the steel segment, given weakness in the industry, Griffith responded that the steel division is actually an engineering company that delivers steel solutions to clients and that 30% of its products did not exist 5 years ago. The bearings business is more global, larger and can absorb risk and debt. The steel business is more domestic, and since it is more volatile, will require a conservative business structure. The steel market should grow stronger domestically with the increase in auto production and construction. Cramer owns Timken for his charitable trust and he thinks investors should stick with Timken.
Pent-Up Demand Will Drive This Market
How can the jobs number be so dour while consumer spending for tangible goods is strong? One would think that if people don't have jobs, they don't spend. The answer to the mystery is pent-up demand. Those who have jobs have not been spending on cars and homes until now. Cramer thinks this pent-up demand will unleash itself and determine the next leg of the market. Meanwhile there is reason for optimism in Europe as economies improve, and even though China has been a laggard, it has been slowly developing its infrastructure.
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