Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday September 10.
CEO Interview: Mike Stice, Access Midstream Partners (NYSE:ACMP)
Access Midstream Partners (ACMP) is an MLP that gathers and processes natural gas. It has no commodity price risk, because it functions like a toll road and is entirely fee-based. The MLP has significant organic growth and is not forced to find new deals as many MLPs are. It has exposure to the high quality wet gas in the Utica shale as well as the Eagle Ford. Cramer thinks ACMP is "the safest MLP."
McDonald's (NYSE:MCD), Ford (NYSE:F), Hewlett-Packard (NYSE:HPQ), Bank of America (NYSE:BAC), Visa (NYSE:V), Goldman Sachs (NYSE:GS), Nike (NYSE:NKE), Visa (V), Molex (NASDAQ:MOLX), Dollar General (NYSE:DG), Five Below (NASDAQ:FIVE), Apple (NASDAQ:AAPL)
The Dow rallied 123 points on several pieces of positive news. Worries about potential U.S. strikes against Syria have been mitigated, China reported a strong industrial production number and there are positive signs of a European turnaround, with McDonald's (MCD) reporting that same store sales on the Continent have improved. Apple fell $11, even with the release of its new iPhone, but Cramer noted Apple often drops after a product release. Alcoa (NYSE:AA), Hewlett-Packard (HPQ) and Bank of America (BAC) are departing the Dow and are going to be replaced with Goldman Sachs (GS), Nike (NKE) and Visa (V). Cramer thinks this replacement is indicative of the decline in aluminum, that personal computers are a secular bear market and that Goldman Sachs, which has little credit risk and no mortgages is preferable to BAC, which suffered greatly from bad mortgages during the credit crisis. Cramer thinks Visa's addition shows the strength of the transition from paper money to plastic. However, Cramer doesn't think V, GS and NKE are necessarily heading higher if the bull market runs out of gas. While Cramer wouldn't be in a hurry to dump BAC, he thinks it is marking time and is unlikely to rise any time soon.
Cramer took some calls:
Molex (MOLX) received a takeover bid, and now it is time to ring the register.
WisdomTree India Earnings ETF (NYSEARCA:EPI), iShares MSCI Australia ETF (NYSEARCA:EWA), PIMCO Corporate & Income Strategy Fund (NYSE:PCN)
With a turn in Europe and China, Cramer, with the help of the technical analysis of Ed Ponsi of TheStreet.com, took a look at the chart of WisdomTree India Earnings ETF (EPI) to see how India is likely to perform. The ETF is down 19% for the year, but it is $2 up from where it bottomed in August. The MACD momentum indicator made a bullish crossover pattern and broke out above the 50 day moving average. When this occurs, institutional investors usually start buying. The rupee, after having been in free fall, has gone higher, thanks to anti-inflationary measures made by India's central bank. If the central bank continues to rescue the rupee, EPI may go higher. However, Cramer would buy EPI only as a speculative play, because the Indian economy and currency have been volatile.
Cramer took some calls:
iShares MSCI Australia ETF (EWA) is a good ETF to buy because the Australian government is showing a serious commitment to job creation.
PIMCO Corporate & Income Strategy Fund (PCN) is not a stock Cramer would buy; "I'm not crazy about that fund."
CEO Interview: Kevin Plank. Under Armour (NYSE:UA)
Under Armour (UA) has rallied 65% so far in 2013 and has risen 360% in the last five years. Some believe the company is too expensive, but they might have said that at previous phases and would have missed out on some major gains. Cramer has identified UA as a kind of "tech" company; CEO Kevin Plank said at first UA was characterized as a "performance apparel" company, but the emphasis now is on "performance" rather than "apparel." Its charged cotton and Storm products have been selling well, in addition to the Armour39, which has digital monitors to asses the workout. The company has expanded internationally and growth is at 30% in Japan, but Plank said that continued expansion will be gradual, because it has been successful because of strong partnerships, and forming these can take time. "We are just at the beginning," said Plank, who added he believes the brand is worth $10 billion and the market cap is just $2 billion.
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