Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday November 8.
10 Things To Watch In The Week Ahead: Zulily (ZU), Bristol-Myers (BMY), Johnson & Johnson (JNJ), AFC Enterprises (AFCE), Cisco (CSCO), Wal-Mart (WMT), Kohl's (KSS), Nordstrom (JWN), Viacom (VIAB). Other stocks mentioned: Sandstorm (SAND), Lululemon (LULU), Under Armour (UA), BlackBerry (BBRY), Apple (AAPL), Twitter (TWTR)
Cramer discussed events and earnings to watch in the week ahead:
Economic data from China over the weekend may move the market on Monday.
Credit Suisse Healthcare Conference (continues Tuesday): Cramer would pay attention to what Bristol-Myers (BMY) has to say about new drugs and Johnson & Johnson's (JNJ) management's remarks about its pipeline, an anti-cancer drug and asset disposal.
Merrill Lynch Banking and Financial Services Conference: This could be a game changer for some financials, although Cramer thinks the good news at the conference will be mainly for regional banks.
AFC Enterprises (AFCE) should report an excellent quarter, given its aggressive remodeling and expansion.
Cisco (CSCO) is a highly controversial stock. Its last quarter was good, but the outlook was "toxic." As a result, the stock has come down. Cramer thinks that much of the weakness is behind Cisco, and it may report a decent quarter.
Goldman Sachs Industrial Conference: Given the turnaround in Europe and China, the conference might hold some good news for industrials.
Wal-Mart (WMT), Kohl's (KSS) and Nordstrom (JWN) report earnings. Cramer is optimistic about the upcoming holiday season, given higher employment and lower gas prices. All 3 retailers should perform well, but Cramer's favorite of the three is Nordstrom, since it has unfairly lagged behind its cohort.
Viacom (VIAB) reports. It has a "ferocious" buyback and has been performing well.
Industrial Production Number: It is worth paying attention to this macro number, because of what it indicates about the economy and what it might imply about what action the Fed will take, if any.
Cramer took some calls:
Sandstorm Gold (SAND): "Gold is not working right now," said Cramer. Sandstorm is not a buy.
CEO Interview: Don Knauss, Clorox (CLX)
In honor of Veterans Day, veteran of the U.S. Marines and CEO of Clorox (CLX), Don Knauss, sponsored a Kingsford Invitational Barbecue on the USS Intrepid. The proceeds go to Folds of Honor, a charitable organization that assists families of disabled or deceased veterans. Knauss discussed the fact that 15% of the new hires for Clorox over the past year have been veterans who are able to contribute their team-oriented work ethic to the strong performance of the company. For the past 4 years, Clorox has been focused on healthcare, affordability, sustainability and multi-culturalism, with the challenge that each brand category should be innovative in these areas. Clorox's oldest brand category, bleach, has grown 14% in the past few months. One reason is the increasing concern about hospital-acquired infections and the fact that the EPA identified Clorox bleach as an effective preventative measure against these infections. While there is concern about private label bleach taking market share, Knauss discussed a new "smart bleach" Clorox is creating that will not remove or fade colors.
Burts Bees has been one of the strongest performers for Clorox and has grown double digits in the last 3 years. It has expanded into 35 countries, and is particularly popular in Asia. Knauss is creating strategies to make Kingsford an all-year or at least a 36-40 week a year brand instead of just a summer product by encouraging barbecues during football season. Hidden Valley Ranch is one of Clorox's premium-priced brands, and yet it has gained more market share in the last 4 years than any of Clorox's other products. Knauss believes this demonstrates that people will choose Clorox over cheaper alternatives because of the high quality characteristic of its products.
With a new gaming product cycle starting as the result of Microsoft (MSFT) and Sony (SNE) releasing updated game consoles, there is a red hot bull market in video games. While GameStop (GME) is a good stock to buy on the trend, Cramer took a look at the 3 major game producers and publishers.
Activision's (ATVI) "Call Of Duty" series has been popular, but reviews haven't been as positive as they once were. The company beat earnings but issued downside guidance with management expressing concerns about increased competition.
Electronic Arts' (EA) performance has been "spotty," but Cramer thinks it might be a turnaround story. The company beat earnings estimates, but management issued downside guidance for the 4th quarter, even as it raised guidance for 2014. There doesn't seem to be a blockbuster any time soon, so short-term, EA might not be the best choice.
Take-Two Interactive (TTWO) is the smallest of the three, but its "Grand Theft Auto 5" has been the biggest hit, breaking records and selling $1 billion worth of games in just 3 days. The company blew away earnings estimates with a 76 cent beat on higher than expected revenues. The $1.7 billion company has $1 billion in cash, and it is the cheapest of the three, trading at a multiple of 9 with a 12% growth rate. Cramer thinks TTWO is the best investment in the group.
Cramer took a call:
Google (GOOG) is inexpensive, has momentum and fantastic management. Cramer thinks it could rise 200 points.
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