Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday March 7.
7 Things To Watch in the Week Ahead: American Airlines (NASDAQ:AAL), Google (NASDAQ:GOOG), Discovery (NASDAQ:DISCA), TripAdvisor (NASDAQ:TRIP), Wal-Mart (NYSE:WMT), Brinker (NYSE:EAT), Nordstrom (NYSE:JWN), Williams-Sonoma (NYSE:WSM), Dollar General (NYSE:DG), GT Advanced Technologies (NASDAQ:GTAT), Yum Brands (NYSE:YUM), Starbucks (NASDAQ:SBUX), Dunkin' Brands (NASDAQ:DNKN). Other stocks mentioned: Darden Restaurants (NYSE:DRI), FireEye (NASDAQ:FEYE), Westport Innovations (NASDAQ:WPRT), Clean Energy Fuels (NASDAQ:CLNE)
The employment number was better than expected, but was greeted with little fanfare from the averages. Money managers had conflicting expectations concerning the job numbers, and fast-growing stocks were stalled while banks flourished. Cramer thinks the positive effects of the employment number are likely to be felt in the coming weeks. He discussed conferences and earnings to watch in the week ahead:
JPMorgan Aviation Transportation and Industrials: All of the major airlines should have presentations at this conference. Cramer's pick in the sector is American Airlines (AAL), even though it has already doubled.
Deutsche Bank Media, Internet and Telecom Conference: Companies to watch are Google (GOOG), Discovery (DISCA) and TripAdvisor (TRIP). While management is not allowed to give too much information at these conferences, they can convey the kind of excitement that may move their stocks higher.
Bank of America/Merrill Consumer and Retail Conference. Stocks to watch include: Wal-Mart (WMT), Nordstrom (JWN), Brinker (EAT) and Starbucks (SBUX). Brinker might be taking market share from its challenged competitor Darden (DRI), but Cramer is concerned that EAT's CFO announced his resignation, and wants to hear more information. Starbucks (SBUX) CEO, Howard Schultz may be asked about rising coffee prices.
JPMorgan's Gaming, Lodging, Restaurant and Leisure Management Conference: Cramer would pay attention to Yum Brands (YUM) and wants to hear if China is still strong. Dunkin' Brands' (DNKN) management should discuss the effect of coffee prices on its business.
Williams-Sonoma (WSM) has an "unusual amount of clout" as a tell for the high-end housewares segment. The street needs to hear that the consumer is spending.
Dollar General (DG) may be hurt by a cutback on food stamps. There may be some hints about consolidation in the dollar store space.
GT Advanced Tech (GTAT) has an analyst meeting, and should discuss its breakthrough LED products. GTAT has been a popular stock, and Cramer wants to hear more information from management.
Cramer took some calls:
FireEye (FEYE) had a secondary that was not so successful, and it doesn't bode well for growth stocks.
Happy Birthday, Bull Market: Tesla (NASDAQ:TSLA), Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN), Salesforce.com (NYSE:CRM), Workday (NYSE:WDAY), Twitter (NYSE:TWTR), Facebook (NASDAQ:FB), Chipotle Mexican Grill (NYSE:CMG). Other stock mentioned: Discover Financial Services (NYSE:DFS)
The bull market is "celebrating" its 5 year birthday, while the bears think it is too old and is on its last legs. Critics point to froth in the market, the plethora of IPOs and stocks rallying after earnings without having strong fundamentals. The bears' favorite targets are high-growth stocks, like Tesla (TSLA), Netflix (NFLX), Amazon (AMZN), Salesforce.com (CRM), Workday (WDAY), Twitter (TWTR), Facebook (FB) and Chipotle Mexican Grill (CMG). While Cramer admits there may be some froth in the markets, this is not the dot.com era variety of irrational exuberance. Many of the hot stocks have real earnings and a real trajectory of growth ahead.
Cramer took a call:
Discover Financial Services (DFS) is still going higher, and Cramer regrets not having bought some for his charitable trust. Now that it is at its 52 week high, potential investors will have to wait for a decline.
There is no contradiction involved in recommending high growth stocks like Yelp (YELP) and conservative investments like Pinnacle Foods (PF). Younger investors can afford to take more risks in hot stocks like Yelp, because they have time to regain their losses. PF offers earnings growth and a consistent dividend. While PF isn't going to knock the ball out of the park, it is a good stock to hold for the long term.
CEO Interview: Peter Gassner, Veeva Systems (NYSE:VEEV)
Veeva Systems (VEEV) is a cloud-based software company that improves the efficiency of pharmaceutical companies. Veeva reported a strong quarter with 57% revenue increase, a 56% rise in billings, and was upgraded, but the stock gave up 8%. The reason for the decline is that the shorts are after VEEV and want to knock it down even on strength. CEO Peter Gassner discussed the ways in which Veeva helps its clients to innovate using cloud-based services rather than traditional client server platforms. The company saw 62% growth in 2013 and it is expanding its international reach. Veeva's Vault content management system allows clients to organize clinical trials, manufacturing processes and operating procedures. In spite of the bear raid, "all systems are go at Veeva," Cramer said.
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