Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday October 25.
Apple (AAPL), Herbalife (HLF), LinkedIn (LNKD), Yelp (YELP), Gilead (GILD), Facebook (FB), Starbucks (SBUX), General Motors (GM), Exxon (XOM), First Solar (FSLR), Chevron (CVX). Other stocks mentioned: Celgene (CELG), Noble Energy (NBL), Illinois Tool Works (ITW), Western Digital (WDC), Seagate (STX)
Apple (AAPL) has been the center of a lot of chatter about what it is going to do with its cash. Big Money wants to hear the words "margin expansion" from management, and that it can still afford to charge a premium for its products without losing customers.
Herbalife (HLF) is a battleground stock, but if it reports a strong quarter and says it can do a buyback, it might rise.
Yelp (YELP) should say that it is raising money and is aiming to become the first worldwide mobile yellow pages.
LinkedIn (LNKD) needs to raise revenue forecast if the stock is going to jump.
Facebook (FB) management should discuss further how it is is monetizing social and mobile. FB has been the biggest winner this year in Cramer's charitable trust, and Cramer admits he trimmed some, because the recent talk of a mammoth upside surprise for Facebook may raise expectations too high.
Starbucks (SBUX) has run 40% since the beginning of the year and may have a buyable pullback on the non-issue of alleged price gouging in China. CEO Howard Schultz appeared on Mad Money and explained why this is not the case. Cramer thinks 2014 will be great for Starbucks.
General Motors (GM) is likely to surprise because China and Europe are back on track; "GM is my sleeper pick."
First Solar (FSLR) is benefiting from the growth in solar and may see an uptick. Cramer would buy with deep in the money calls.
Chevron (CVX) is the best-run of the major oils and is itching to bring out value. CVX has been a buy every time it gets hit.
Cramer took some calls:
Illinois Tool Works (ITW) is up big, but "I love it so much, I'm blinded by it. I think it is not too expensive." Cramer thinks 2014 is going to be a good year for ITW.
Western Digital (WDC) is inexpensive, even though it is at a 52 week high. Cramer would wait and see what Seagate (STX) management has to say first before considering WDC, since the group has gotten a bit hot.
CEO Interview: Sandy Cutler, Eaton (ETN)
Eaton (ETN) is a diversified industrial owned by Cramer's charitable trust. Eaton (ETN) reported a quarter that was misunderstood because of downside guidance, but there were also strong numbers, such as 3% organic growth and a raised end market forecast. The stock has gained 11% since Cramer last spoke to CEO Sandy Cutler 3 months ago. Cutler noted the company had record sales and saw significant gains in all of its businesses. This is even given the fact that Eaton had to deal with details involving the acquisition of Cooper Industries. "Prospects are exciting for next year," said Cutler. Non-residential construction is growing as well as lighting and autos. Thanks to the Cooper acquisition, ETN is one of the leading players in the LED light industry. Cramer thinks Eaton is not done going higher.
CEO Interview: James Volker, Whiting Petroleum (WLL)
Whiting Petroleum (WLL) has significant assets in the Bakken shale, but an even bigger story is the Niobrara shale in Colorado; "There is another Whiting Petroleum within our Niobrara assets." WLL has found novel ways to drill smarter and more cheaply, and has halved its drilling time. The company reported a 20 cent earnings beat on revenues up 56%, better than expected. WLL has increased production by 12%. Cramer thinks with its Niobrara assets, Whiting could rise another 40-50%.
CEO Interview: Chuck Bunch, PPG Industries (PPG)
PPG Industries (PPG) reported a successful quarter a week ago with a 12 cent earnings beat and stronger than expected sales at 17% yoy. The stock has given a 25% return since April, when CEO Chuck Bunch last appeared on Mad Money. Bunch said that he is seeing a turn in Europe, particularly an improvement in Southern Europe for the first time in years. He indicated it might be time to do another acquisition, given the generous cash flows. He identified strength in aerospace and may have opportunities to expand the "liquid nails" business. Cramer thinks if Europe turns, there could be an upside surprise for PPG.
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