Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday November 15.
17 Things To Watch In The Week Ahead: Salesforce.com (CRM), Best Buy (BBY), Home Depot (HD), Dicks Sporting Goods (DKS), J.C. Penney (JCP), Staples (SPLS), Williams Sonoma (WSM), Deere (DE), ADT (ADT), Abercrombie & Fitch (ANF), Dollar Tree (DLTR), Gamestop (GME), Target (TGT), Vince (VNCE), Foot Locker (FL), Ann (ANN), PetSmart (PETM). Other stocks mentioned: Red Robin (RRGB), Nike (NKE), Wal-Mart (WMT), Office Depot (ODP), Office Max (OMX)
Cramer thinks that history is on the side of the bulls, with the S&P 500 up 20% so far this year. When this happens close to the holiday season, it usually indicates that stocks will continue to rise until the end of the year. Cramer would buy winning stocks on weakness. He listed upcoming earnings reports and one IPO for the week ahead, and thinks that the overall takeaway will be the feeling that the consumer is confident.
Salesforce.com (CRM) has its Dreamforce Conference in the week ahead and reports on Monday. The company has outperformed the competition and could go much higher.
Best Buy (BBY) has transformed itself from an ugly duckling to a beautiful swan in just one year. The chain has been revitalized, prices are lower, stores are more attractive and customer service has improved.
Home Depot (HD) is likely to report a better quarter than last time, since it seems that more people are investing money in the homes they already have. Management should indicate what is selling well at HD; this could be a good guide to picking up "pin action" stocks.
Dick's Sporting Goods (DKS) has been a bit of a downer. It may be ready to roar again.
J.C. Penney (JCP): The preferred stock is portending positivity for the common stock, but Cramer doesn't like the fact that management said things were improving at JCP when they weren't and sold the stock on a run. Cramer is not a fan of JCP, but he concedes it could go higher.
Williams Sonoma (WSM) often trades down when it reports and then rebounds. Cramer would wait for a decline after earnings before buying.
Deere (DE) may get hurt on the downturn in corn prices.
ADT (ADT) is facing competition and a possible price war.
Abercrombie & Fitch (ANF) would rise 10 points if its highly unpopular and ineffective CEO, Michael Jeffries, announces his retirement.
GameStop (GME) is up 125% for the year, but Cramer thinks 2014 will continue to be strong, given the new game console cycle.
Target (TGT) may report a disappointing quarter; Wal-Mart's results do not bode well for Target.
Vince (VNCE) has its IPO, and it may be "hot." It is worth trying to get in on the deal.
Ann (ANN): Women's retail is getting difficult, but the negativity is so thick that Ann might go higher even if it disappoints.
PetSmart (PETM) is down 8% for the year and has become a "dog." However, Cramer believes in the long-term secular trend in pet care.
Cramer took some calls:
Red Robin (RRGB) is up 168%, but since it is the kind of growth stock money managers love to buy at the end of the year, it maybe we worth going along for the ride.
RocketFuel (FUEL) was true to its name during its IPO in September. The stock opened at $29 and shot up to $59 before closing at $56 for a 96% gain. The stock was in a decline until last week, when it rose from $37 to $57. Its earnings report was initially disappointing, but on further investigation of the numbers, it seems to be a success. Revenues rose an outstanding 132% and gross margins were greatly improved. The street worries that FUEL won't be able to maintain its momentum, especially since the internet advertising space is getting crowded. FUEL has an innovative way of using artificial intelligence to make the best programmatic ad buys. Ad space is traded like securities; CEO George John thinks this is the best way for companies to find the most valuable places to advertise. When asked if he is worried about Google (GOOG), Johns responded that FUEL is already competing with GOOG and "it seems to be working."
CFO Interview: Jack Hartung, Chipotle Mexican Grill (CMG)
Chipotle Mexican Grill (CMG) has risen 84% year to date and 45% since Cramer last interviewed the CFO in July. While CMG might be one of the "anointed" buys of hedge funds at the year's end, its huge rise does not guarantee it will go higher in the short term, but Cramer believes in the long-term story. "The stock, in the end, will take care of itself," said CEO Jack Hartung. While CMG missed the street's estimates, its revenue increased 18% and its same store sales were up an impressive 16.2%. It has been two and a half years since CMG raised prices, but Hartung admitted a slight increase may be put in place in 2014, although management is still in "wait and see" mode. Jack Hartung believes CMG continues to outperform the competition because younger customers in particular are concerned about where their food comes from, and CMG's "food with integrity" fits the bill. CMG continues to keep to a consistent menu; Hartung doesn't think that dramatic and frequent menu changes affect the economics of the company that much. CMG recently added a vegan burrito which is attracting even non-vegan customers. Cramer thinks CMG is a great company with a winning theme.
Cramer answered recent questions and tweets:
Abaxis (ABAX) missed earnings and has inventory issues. Stay away.
Pitney Bowes (PBI) is transforming itself into a digital communication company with some legacy snail mail services. Its partnership with eBay (EBAY) looks promising. The stock can move higher even though it has rallied 120%.
BJ's Restaurant (BJRI) has missed too many earnings, raised prices too far too fast, over-expanded in some regions and reported a 2.2% decline in same store sales. BJRI has to do a lot better before Cramer will recommend it.
NCR (NCR) sells kiosks and ATMs, but is moving into software and mobile. Cramer thinks the stock is a buy into current weakness because he likes management's vision.
Alcoa (AA) pulled back, but may not have bottomed, since there is still a major glut in aluminum. Cramer thinks the world of Alcoa's management, but the stock is not likely to rise anytime soon.
CVS Caremark (CVS) reported great earnings and should continue to go higher.
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