Cramer's Mad Money - Sprint CEO Dan Hesse: We Are Building The Best Network In The World (9/24/13)

 |  Includes: BERY, LEN, S
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday September 24.

CEO Interview: Dan Hesse, Sprint (NYSE:S)

Sprint (S) is a comeback story that has been expanding its network aggressively. The company completed a deal with Softbank and purchased the rest of Clearwire to increase its exposure to spectrum. Thanks to Clearwire, Dan Hesse believes the new 4G network can operate at "unheard of speeds. We are building the best network in the world." Sprint has been updating its 3G network to 4G and is spending $8 billion in the next year on capital expenditures. Sprint's inventories have been thin and demand is high. Cramer thinks Sprint is back and is going higher.

CEO Interview: Stuart Miller, Lennar (NYSE:LEN)

Many wonder how rising interest rates will affect homebuilders. Lennar (LEN) CEO Stuart Miller admitted higher rates might be a "speedbump," but over the next 3-5 years, he sees many positives for housing. Inventories are down because of lack of building, and this gives Lennar pricing power to expand its margins. While sales are not as strong as expected, Lennar's revenues increased 47% yoy and it beat earnings estimates in the recent quarter by 9 cents. Cramer thinks Lennar is the long-term winner in the industry, and notes the stock hasn't moved very much, in spite of positive data.

CEO Interview: Jonathan Rich, Berry Plastics (NYSE:BERY)

Berry Plastics (BERY) produces proprietary plastics and other materials. Its Versalite cups are 100% recyclable disposable cups that keep hot beverages hot and cold drinks cold. The cups could generate $500 million in sales, however, at an analyst meeting, management predicted a 10% decline, and the stock fell 5 points. Cramer thinks the sell-off is an overreaction. CEO Jonathan Rich said the Versalite product is going to be revolutionary, but recently, demand has been muted, because the consumer has been cautious. Another headwind has been rising oil prices, but Rich believes that the use of domestic natural gas for its products will save money. The stock trades at a multiple of 16.5 compared to its 29% growth rate. It is up 19% since Cramer recommended it in January, and Cramer thinks it has upside.


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