Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday January 8.
Many analysts think Yelp (YELP) has gotten ahead of itself, but Cramer thinks the stock, which is slated to become the "world's yellow pages" can go much higher. The company is expanding overseas, and while its earnings may not be as hot as the hype, there is good reason; Yelp is investing in its own growth. However, the stock is not for the squeamish, as it may be vulnerable to the street's skepticism. Still, "Yelp is a buy, plain and simple," Cramer said.
Cramer took some calls:
Perhaps it is too late to buy Stratasys (SSYS), regardless of how hot the 3-D printing space is. Cramer would wait for a pullback.
The Wall Street Bear Raid: Honeywell (HON), United Technologies (UTX), U.S. Bancorp (USB), Wendy's (WEN)
Analysts on Wall Street are being too bearish, says Cramer, who says he hasn't seen this level of skepticism in years. Cramer believes 2014 will be the year many companies will beat earnings estimates, and yet there are downgrades. Honeywell (HON) and United Technologies (UTX), two companies Cramer is bullish on, were downgraded. The street knows these stocks are winners, but analysts don't think they can win for much longer. Given the turn in the economy and their great management, Cramer thinks they can go higher. Analysts are lacking faith even in good companies and are becoming "sell zealots." Cramer called the Wendy's (WEN) downgrade "absurd," since it is sprucing up its image and making over its stores; "No wonder the stock only fell 6 cents on the downgrade." U.S. Bancorp (USB) was smacked with a sell rating when it is reporting loan growth. Cramer thinks we are in a bona fide bull market and he urged viewers not to take the street's skepticism at face value.
CEO Interview: Charif Souki, Cheniere Energy (LNG)
Cheniere Energy (LNG) is the leader in natural gas exports, and in addition to its current terminals, it has new projects slated for 2015 and 2017. The stock has risen 60% since Cramer spoke to the CEO 7 months ago. When asked about concerns about new customers, he replied "there is a limitless amount of customers as long as gas prices are so disconnected from the alternative." Cramer thinks that LNG will continue to be the top name in natural gas exporting.
Cramer discussed a call he regretted making in 2013; the call to sell Walgreen (WAG) on its ongoing feud with Express Scripts (ESRX) and its acquisition of the British Boots chain. Even though he felt WAG had strong management and fundamentals, he had lost faith in the stock, and suggested viewers sell at what turned out to be the absolute bottom. Walgreen finally ended its stalemate with Boots and its acquisition proved to be accretive. The takeaway: don't give up on stocks with good fundamentals over temporary problems and short-term declines.
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