Cramer's Mad Money - The World's Biggest Supermarket of Tech (1/28/10)

Includes: AAPL, ABT, AVT, BA, BMY, CL, D, MNRO, PG
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday January 28.

CEO Interview: Roy Vallee, Avnet (NYSE:AVT), Cisco (NASDAQ:CSCO)

Although Avnet reported a better than expected quarter and raised guidance, it dropped 3.2% on Thursday. The company deals with tech components and finished products and Cramer called it "the biggest supermarket of tech in the world." The company also has a significant role to play in the mobile internet tsunami and expects its end markets to grow by 6.4% annually. Roy Vallee says tech is leading the recovery and discussed the company's deal with Cisco (CSCO) to provide networking equipment to data centers. Vallee also said he expects solid growth in Asia for the next ten years.

3M (NYSE:MMM), Procter & Gamble (NYSE:PG), Boeing (NYSE:BA), Apple (NASDAQ:AAPL), Colgate Palmolive (NYSE:CL), Abbot Laboratories (NYSE:ABT), Bristol Myers Squibb (NYSE:BMY)

Cramer admits that he doesn't like this market in which earnings don't seem to matter, and every headline is giving worried investors fresh reasons to sell. While 3M (MMM), Procter & Gamble (PG), Boeing (BA) and Apple (AAPL) reported strong earnings, investors are instead obsessing over the Greek bond market. A few days ago, Obama was being used as an excuse to be bearish, but his state of the Union ended up as more moderate than the pessimists predicted. Cramer also pointed to strong quarters from Colgate Palmolive (CL), Abbot Laboratories (ABT) and Bristol Myers Squibb (BMY), but these successes didn't take the edge off the bad news. "This is not a dip to be bought; the sellers are too powerful and too willing to embrace any pretext like Greece, which in any other moment would have barely been a sideshow."

CEO Tom Farrell, Dominion Resources (NYSE:D)

With cap and trade emissions reform on the table, investors are worried about utilities stocks, although not every utility is in danger. Dominion beat its earnings estimates by 3 cents a share and boosted its dividend to 4.9%, but the stock fell after earnings, but is 2 points off its 52-week high. The utilities stocks that are going to suffer the most are the ones most levered to coal. While 45% of the company's energy is derived from coal, 42% is nuclear and 10% is natural gas. Dominion is also developing wind power projects. While the company has recently built a coal-powered plant, Tom Farrell says special technology is used to keep carbon emissions low. Given the controversy over horizontal drilling, Dominion is selling some of its reserves of Marcellus shale, but is further developing its nuclear power.

CEO Interview: Robert Gross, Monro Muffler and Brake (NASDAQ:MNRO)

Monro Muffler and Brake (MNRO) is an Obama-proof stock and has benefited from GM's problems, which eliminated competition and is also seeing an increase in business with the recovery of the auto industry. The stock has risen 67% since Cramer recommended it in August and beat estimates by 38 cents and has seen same store sales rise to the double digits. With the collapse of competition and more customers hanging on to their cars, Monro should see more growth according to Robert Gross. Even though shares are up significantly, Cramer thinks Monro can go higher.


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