Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday November 12.
Good To Gogo (NASDAQ:GOGO). Other stocks mentioned: Veeva (NYSE:VEEV), Empire State Realty Trust (NYSE:ESRT), Ventas (NYSE:VTR)
With all of the overhyped IPOs that fall a day after they open, Cramer would be on the lookout for "loser" IPOs that may have flopped their first day of trading, but have performed well since. Gogo's (GOGO) IPO price was $17, it opened down at $16 and finished 6% lower. The stock was hammered on worries of contract cancellations (a fear Cramer thinks was exaggerated) and worries that it would need to raise capital. GOGO fell to $11 in September, but has since rebounded 56%. Cramer would not buy it up here, but would wait for the rumored secondary to buy the stock on a decline. Gogo provides WiFi to plane passengers and "literally has a captive audience." It is able to charge high prices for in-flight wireless internet, has contracts with 9 of the 10 major airlines and has 80% market share. The company is adding in-flight entertainment, voice and texting services to its offerings. Cramer would consider buying the stock on a decline, and would consider it at about $20.
Cramer took some calls:
Veeva Systems (VEEV), like many cloud plays, is a good investment.
Google (NASDAQ:GOOG), Salesforce.com (NYSE:CRM), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), Starbucks (NASDAQ:SBUX), Priceline (NASDAQ:PCLN), Delta (NYSE:DAL), Bank of America (NYSE:BAC), Organovo Holdings (NYSEMKT:ONVO)
With stocks up 24% so far this year, Cramer thinks that in the remaining months of 2013, money managers will be buying hot growth stocks on any decline to show their clients that they are holding winners. He believes the following stocks will be bought: Google (GOOG), Salesforce.com (CRM), Amazon (AMZN), Netflix (NFLX), Starbucks (SBUX), Delta (DAL) and Priceline (PCLN). Priceline is an especially strong pick because it reported recently and, by valuation, is still cheap.
Cramer took some calls:
Organovo Holdings (ONVO) is a bit dicey. Cramer would only consider it as a long-term spec.
Bank of America (BAC) is "neither here nor there." It might rise if interest rates go up, but Cramer is neutral on BAC.
CEO Interview: Mark Mednansky, Del Frisco's (NASDAQ:DFRG)
Del Frisco's (DFRG) is up 44% since Cramer got behind it a year ago. The company runs high-end restaurants and is expanding at a rate of 17%. CEO Mark Mednansky predicts the company could double its locations in 10 years. When asked about the strapped consumer, Mednansky says that there are many "aspirational diners. There is always room for indulgence in this country." Mednansky is confident about location growth, which can be accomplished "with absolutely no cannibalization." Del Frisco's secret sauce is the quality of its managers; "Why would they want to leave?" Cramer thinks the company should trade at a higher valuation.
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