Cramer's Mad Money - Intel Will Double (4/14/10)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday April 14.

Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT), Cree (NASDAQ:CREE), SanDisk (SNDK), AMD (NYSE:AMD), Micron (NASDAQ:MU), Corning (NYSE:GLW), Western Digital (NYSE:WDC).

Cramer wondered how investors could be so blase about exciting companies like Intel (INTC) which reported an amazing quarter and yet inched up only 75 cents. Cramer made a confession. "My name is Jim Cramer, and I am an Intel-aholic." He is also an Intel historian, and predicts the stock will double, given that it doubled after 3 previous product cycles. Intel is headed for "the most impressive product cycle that I can ever recall." Following each release of various chips in the 80s and 90s, the stock doubled within 2 years. Until this most recent product cycle, Intel has been "wallowing" but is almost certain to repeat its history, said Cramer, thanks to the mobile internet tsunami. Other tech plays will be carried up by the cycle, including Microsoft (MSFT) which should be "bought aggressively before it reports." Cramer is also bullish on Cree (CREE), SanDisk (SNDK), AMD (AMD), Micron (MU), Corning (GLW) and Western Digital (WDC).

CEO Interview: Peter Georgiopoulos Baltic Trading (NYSE:BALT), Genco Shipping (NYSE:GNK), Diana Shipping (NYSE:DSX), Nordic American Tanker (NYSE:NAT)

In March, Cramer put three shipping IPOs on the Sell Block, but invited the CEO of Baltic Trading (BALT), Peter Georgiopoulos onto the show to discuss the company. Cramer initially was bearish because of oversupply in shipping, tepid rates, BALT's lack of operational history and the fact that BALT is a subsidiary when Cramer usually prefers best-of-breed companies; Cramer recommended Diana Shipping (DSX) and Nordic American Tanker (NAT) instead, but conceded that he wasn't pushing even these stocks very aggressively. However, Cramer wanted to give Peter Georgiopoulos a chance to make the case for his company.

Georgiopoulos said its parent company Genco (GNK) has a long history of strong performance. He justified Baltic's lack of operational history by saying the plan was to use money raised by the IPO to gain access to its ships which are not merely being spun off by Genco, but are being purchased from other suppliers. The CEO added that the IPO was not marked up, but reflected the price of the ships. With shares now below the IPO price, investors can buy at a discount. Cramer conceded that Georgiopoulos told a convincing story and thinks BALT is "okay."

Scott's Miracle-Gro (NYSE:SMG), Tractor Supply (NASDAQ:TSCO), Home Depot (NYSE:HD), Lowe's (NYSE:LOW), Wal-Mart (NYSE:WMT).

On Tractor Supply's (TSCO) announcement of a "hugely better-than expected first quarter" Cramer would buy Scott's Miracle-Gro which is the leader of lawn and garden supplies and the king of do-it-yourself products. The stock is up 43% since Cramer recommended it nearly a year ago. Scott's, which sells 70% of its products through Lowe's (LOW), Home Depot (HD) and Wal-Mart (WMT) understands its regional markets well and is doing more local advertising. The company is poised to increase sales in the South and the West, a move that could add $300 million to $500 million in revenues, and at the same time, to close down laggard divisions. Cramer predicts this $47 stock could see $55 easily.


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