Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday October 15.
CEO Interview: Tom Rogers, TiVo (TIVO)
TiVo (TIVO) is well-known for its patents, and it has won several intellectual property settlements. However, successful litigation is not the only reason to buy TiVo. The company has been aggressive about cleaning up the balance sheet and is adding millions of new subscribers. "We are out to re-invent television," CEO Tom Rogers said and expressed confidence that the company will soon be profitable. Cramer thinks TiVo can go higher.
The Dow fell 133 points and it seems that the street is finally realizing that there might not be a good solution to the wrangling in Washington. A default would be an unmitigated disaster, but Cramer think those clamoring against raising the debt ceiling are gaining the upper hand. Why aren't stocks down lower than they are? Non-sellers may be worried that if they get out, they might not be able to get back in, while others seem to believe there will be an 11th hour compromise. FedEx (FDX) announced a buyback, even though it is not likely to have a good quarter, Microsoft (MSFT) impressed analysts and Wells Fargo (WFC) reported a tepid quarter but did not decline on the news. Stocks are not yet fully reflecting default fears.
Cramer took some calls:
J.C. Penney (JCP) is down 60% year to date, and especially since it is a weaker retailer, it should not be bought.
Dollar Tree (DLTR) is a perfect stock for the current environment in which the consumer is likely to trade down.
CEO Interview: Patrick Doyle, Domino's Pizza (DPZ)
Domino's Pizza (DPZ) reported a quarter that disappointed the street, with in-line revenues and an earnings miss; the stock fell 5.7%. However, CEO Patrick Doyle said he was satisfied with the quarter, and noted that revenues rose 19% and same store sales were up 5.5%. The stock has delivered a 540% gain since Cramer got behind it in July. Doyle discussed growing locations domestically and the company's consistent profit growth. Doyle says he wants to avoid the "treadmill" of introducing a new product every few weeks. He believes that the company is successfully taking market share from mom and pop pizza stores and the number of sales from digital devices grew from 13% to 40%. Cramer notes that Domino's has always been a buy on a decline, and the same is true now.
Even with the mess in Washington, Whole Foods (WFM) is close to its 52 week high. The Technical analysis of Tim Collins (of RealMoney.com), shows that WFM might go still higher. The daily chart shows a bullish flag pattern and the MacD has formed a bullish crossover pattern. The weekly chart shows a dome pattern that should have been bearish for WFM, but the stock broke above it. WFM might be a buy at $58. Sprouts Farmer's Market (SFM) could also be bought if it breaks out above $42.
Kellogg (K) lacks a catalyst, so it isn't a buy.
Safeway (SWY): Cramer would sell half a position in SWY and let the rest run.
Rite Aid (RAD) is likely to go to $6, but might dip to $5 first.
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