Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday January 15.
Cramer prefers fundamental analysis, but it is important to know what the charts are saying. Technical analyst Carolyn Boroden predicted an upside for Apple (AAPL), even as that was a contrarian position. CEO Tim Cook made bullish remarks that sent the stock up from $535 to $557 in a matter of days. Carolyn Boroden thinks Apple is going to go even higher, as much as 30 points, if it jumps over resistance levels of $562-565.
Cramer took some calls:
Hewlett-Packard (HPQ) has been going up quietly and slowly. Cramer would be a buyer rather than a seller.
Sony (SNE) is not a stock Cramer would buy.
When Negatives Bring Stocks Up: Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM), Intel (NASDAQ:INTC), Riverbed (NASDAQ:RVBD), Juniper (NYSE:JNPR), Xilinx (NASDAQ:XLNX), Caterpillar (NYSE:CAT), Nordic American Tanker (NYSE:NAT), Comcast (NASDAQ:CMCSA), Time Warner Cable (TWC), Lockheed Martin (NYSE:LMT), Nuverra (NYSE:NES)
Sometimes stocks go up because negatives fail to materialize. It is conventional wisdom that banks tend to get hit after they report, yet Bank of America (BAC) had a legitimate upside surprise because of its growth in net interest margins. While it still has litigation to deal with, the risk in this area peaked a while ago. BAC is up 10% for the year so far. JPMorgan (JPM) reported a merely decent quarter, and the stock rallied.
Intel (INTC) is up even though it was predicted that PCs would be a laggard sector in the market. Riverbed (RVBD) and Juniper (JNPR) have seen some upside. Cramer would by Xilinx (XLNX). Semiconductors were not doing well, but now they are rising higher. Caterpillar (CAT) was supposed to be the short of the year with China slowing, but the U.S. is heating up and CAT may go higher. In the oil tanker business, day rates are going up substantially. Cramer had given up on Nordic American Tanker (NAT), but now it is looking attractive. Cable is also a hot area. Comcast (CMCSA) hit a 52 week high and there is a bidding war over Time Warner Cable (TWC).
Cramer took some calls:
Lockheed Martin (LMT) has been a stock Cramer has been behind even before its 100% move. "This is the most amazing defense contractor."
Nuverra Environmental Solutions (NES): Cramer gave up on this stock and wants to interview the CEO for an explanation as to why the stock is acting so badly.
Edwards Life Sciences (EW) was down 27% last year, but it has the ingredients of a textbook bottom after it slashed earnings, resulting in a total reset of expectations. It has rallied 7% since the beginning of 2014 on news of a new heart valve. The company just won a settlement against Medtronic (MDT) for patent infringement and may be able to win a permanent injunction against MDT's product. CEO Michael Mussallem declared a "decisive victory" over its competitor MDT, and discussed the FDA's approval of testing EW's transformational heart valve.
CEO Interview: Barry Davis, Crosstex Energy (XTEX). Other stock mentioned: Devon (NYSE:DVN)
MLPs got hit in 2013 on news of rising interest rates. One MLP that held up has been Crosstex Energy (XTEX). Crosstex owns oil and gas pipelines along with other assets, and 75% of its revenues are from liquids. A full 95% of its revenues are from a fee based structure which limits commodity price risk. XTEX has had an 80% run since Cramer spoke with the CEO a year ago. The company has a joint venture with Devon (DVN) to spin off midstream assets and form a new company. XTEX has a detailed growth plan which involves dropdowns and increased M&A activity. Cramer thinks XTEX is a great investment.
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