Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday September 13.
10 Things To Watch In The Week Ahead: Emerson (NYSE:EMR), United Technologies (NYSE:UTX), FedEx (NYSE:FDX), Oracle (NASDAQ:ORCL), Pier One Imports (NYSE:PIR), Rite Aid (NYSE:RAD), Boeing (NYSE:BA). Other stock mentioned: SPDR Gold Trust ETF (NYSEARCA:GLD)
Empire State Fed Survey and U.S. Industrial Production number: Both are likely to be strong.
Morgan Stanley Industrials and Auto Conference: Will give a good read on industrials. Boeing (BA) has a presentation, and is strong on the comeback of Europe and China. Cramer expects more upside from BA.
Fed meeting: All eyes will be on this meeting this week, and it may move stocks dramatically. Cramer would buy good stocks on declines if there is talk of tapering.
FedEx (FDX) guided down last time, but the stock has climbed from the low $80s to $107. If it dips, Cramer would buy it. If FDX reports good news, it may be headed to $120.
Oracle (ORCL) has disappointed, and management always seems to find excuses for lackluster performance. Cramer doesn't think the story will be different this time.
Pier One Imports (PIR) has a housewares segment that has tripled. Many are negative on housing plays because of higher interest rates, but Cramer believes in PIR.
Rite Aid (RAD) is making a comeback and may head to the $5 range.
May include a possible announcement of the next Fed Chief. Cramer hinted that it is likely to be Larry Summers.
Cramer took a call:
SPDR Gold Trust ETF (GLD): "Unwind it...do not fool around. You have done the wrong thing and right it."
Splunk (NASDAQ:SPLK): The Best New Company You've Probably Never Heard Of.
Splunk (SPLK) is a game changer in the area of machine data from the big data universe. The company came public 18 months ago. SPLK discovered a "treasure chest" of unstructured data bigger players were not dealing with. It has partnerships with major tech companies, and the addressable market is around $30 billion. SPLK has 6,000 customers in 90 countries, but it is still in the early innings; it has more demand than salespeople available to deal with the workload, and plans to radically increase hiring. The company reported a less than expected earnings loss with a rise in revenues of 50%. The stock shot up 12.8% and hasn't looked back. It has doubled since the beginning of the year and has risen 245% since it came public. The stock is expensive, although it expects revenue growth at 35% and has 90% gross margins. Cramer recommends it for speculation and would buy only a small portion now. SPLK is a "big data game changer."
A Favorite Year For IPOs: FireEye (NASDAQ:FEYE), Benefitfocus (NASDAQ:BNFT). Other stocks mentioned: Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL). Other stocks mentioned: Gigamon (NYSE:GIMO), William Lyon (NYSE:WLH)
2013 has been the best year for IPOs since 2007. The 131 stocks that have come public this year have given an average 32.6% gain from where they came public and a 16% rise from where they started trading. Around one-fifth are up 50%. The hottest sectors for IPOs have been biotechs, tech and consumer goods. There is a lot of talk about the circus that will be the Twitter IPO. Everyone will want a piece of it, even if it is valued at $20 billion and 17 times sales. Cramer hopes the Twitter IPO will not be the fiasco that was the Facebook (FB) IPO, and it is not too late for Apple (AAPL) to buy Twitter, even though it is now richly valued.
Cramer discussed two IPOs to watch in the coming week. FireEye (FEYE) is a network security company whose sales have doubled and doubled again. It will sell 14 million shares in the $12-$14 range. It may sell at 13 times sales, which isn't cheap, but up to $16, it might be worth buying (Cramer doesn't like the fact that many of these IPOs are being valued times sales rather than earnings. He feels it increases the risk).
Benefitfocus (BNFT) manages employee benefits with cloud computing, and it is in the early stages, with 2% penetration among large employers. It is likely to be priced between $21.50 and $24.50 and has a lower valuation than FireEye at 6.7 times sales.
Cramer took some calls:
Gigamon (GIMO) is likely to go higher.
William Lyon (WLH) is a hold. Mortgage rates are likely to stabilize, so it could rally 10-15%. After that, it is a sell, because housing has peaked.
Mad Tweets: Compugen (NASDAQ:CGEN), 1-800 Flowers (NASDAQ:FLWS), Immunomedics (NASDAQ:IMMU), Grana y Montero (NYSE:GRAM), Buffalo Wild Wings (NASDAQ:BWLD), Teva (NYSE:TEVA). Other stock mentioned: McDonald's (NYSE:MCD)
Compugen (CGEN) is a drug and diagnostics sleeper stock that 5 weeks ago announced a deal with Bayer to produce antibody-based cancer immunotherapy treatments. It has run from $5 to $9, and Cramer would wait for a pullback.
1-800 Flowers (FLWS) is well-run with a clean balance sheet, but Cramer doesn't see a catalyst. It is up 47% for the year, and Cramer would take some off the table.
Immunomedics (IMMU) produces cancer autoimmune medications and has doubled, because it is too risky at this level. In general, biotechs have been hot; "Let the pipelines catch up with the valuations."
Grana Y Montero (GRAM) is the largest manufacturer in Peru and is a new IPO trading at just below its offering price. Cramer thinks emerging market stocks are headed back, and it has grown its backlog by 76%. Cramer blesses this stock.
Boeing is headed for a large mult-year run.
Teva (TEVA) is a former holding in Cramer's charitable trust. He lost a lot of money in the stock because Teva became hampered by competition. He would not buy it.
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