Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday March 28.
11 Things to Watch In The Week Ahead: CarMax (NYSE:KMX), Monsanto (NYSE:MON), Buffalo Wild Wings (NASDAQ:BWLD), Micron (NASDAQ:MU), RPM International (NYSE:RPM), GrubHub (NYSE:GRUB), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC). Other stocks mentioned: Sirius XM Holdings (NASDAQ:SIRI), Netflix (NASDAQ:NFLX), Cemex (NYSE:CX), Popeyes (NASDAQ:PLKI)
Industrials have been rising on very little news, while growth stocks have been rolling over. On Friday, tech and biotech stocks started strong and then declined, but the Dow still finished up 59 points. One "unnerving" catalyst in the next couple of weeks are the 16 IPOs scheduled. Cramer thinks the market can't handle this many IPOs and is waiting for the IPO window to close. The supply from these deals will overwhelm the market. Cramer discussed 11 things to watch in the week ahead.
Chinese Manufacturing PMI is likely to fail to meet expectations. If there is no stimulus, industrials, which have been rallying, will fall. If there is a stimulus, the minerals and mining stocks will see another leg up of the rally. Cramer expects weakness.
U.S Manufacturing PMI, Construction Spending Number, Light Vehicle Sales: If the economy is indeed improving, as the Fed suggests, then all of these numbers have to be strong. If auto sales look bright, Cramer would buy Carmax (KMX) ahead of its earnings report on Friday.
Monsanto (MON) reports. The stock tends to start down and rallies after the conference call.
Analyst Meeting: Buffalo Wild Wings (BWLD) is down from its highs, even as it has been rallying lately. This is the perfect time to have an analyst meeting, prior to the Final Four, when BWLD has strong business. BWLD is worth buying.
Micron (MU) is likely to report a solid quarter, but while demand has overwhelmed supply of chips, new factories may reverse this situation. Be careful of the guidance for MU.
RPM International (RPM) could resume its climb back to $43 after it reports on Thursday.
GrubHub (GRUB) IPO: Given the excessive number of IPOs recently, Cramer said he can't expect GRUB to go at the premium he would otherwise expect, but if any IPO will work in the coming week, it is this one.
Carmax reports earnings. It has seen heavy declines, and if the auto number is good on Tuesday, it may be a buy ahead of the quarter.
Non-Farm Payroll Number: A robust employment number can reverse the decline in interest rates. If so, financials will roar. Those who expect a strong employment report should buy banks ahead of Friday's number. Cramer likes Wells Fargo (WFC), but it has already seen gains, and instead he would buy Bank of America (BAC), which received the green light from the government to return capital to shareholders, is seeing the end of its legal woes, and may go to multi-year highs after it reports next month.
Cramer took some calls:
Sirius XM (SIRI) is a good company on a standalone basis. It has great cash flow. Stay long.
Popeyes (PLKI) periodically gets slammed. The menu and expansion plans are good, and it is worth buying.
Netflix (NFLX) is rolling over along with other high-fliers. Buyers want sturdy earnings rather than sturdy sales, and the decline in momentum stocks is not over yet.
Cemex (CX) is a great housing play. Cramer recommended it lower, but it is still a good stock to own.
While the weather has overshadowed earnings reports from retailers, Finish Line (FINL) reported a strong quarter, with a 2 cent earnings beat, revenues a bit light, but up 17.2% yoy, an 80 point rise in gross margins and a 6.3% increase in same store sales. CEO Glenn Lyon expects same store sales to continue to be strong. The stock is up 40% since Cramer recommended it last year, and he expects more upside. Lyon said the company's goal is to be "omni-channel" and to provide the customer with what he or she wants whether online or in a store; "The athletics world is in a really strong cycle right now," said Lyon. Innovation at Under Armour (UA) and Nike (NKE) is providing FINL with first-rate merchandise, and the legacy of Michael Jordan lives on with new Jordan-themed products. FINL's store-within-a-store at Macy's (M) reaches the previously untapped market for women's athletic gear. FINL has great momentum and is one of the most inexpensive retail stocks, said Cramer.
Cramer answered questions posed on some of his tweets:
Turquoise Hill (TRQ) is a speculative mining play that is down 45%. It was poised to become a player in the copper space, but the price of the metal is down. Currently, it is facing a dispute with the Mongolian government over some assets. Cramer thinks TRQ is more trouble than it is worth, and prefers Freeport McMoRan (FCX) or for a possible turnaround in copper, the JJC (JJC) ETF.
Inovio (INO) is a biotech spec and is a volatile trader. It rose 12% on Thursday, but dropped 10% on Friday. INO produces synthetic vaccines that may prevent severe diseases and viruses. However, it is years away from having a vaccine on the market. Those who want to buy INO should be aware of the risks. Major biotechs, as a sector, are selling off, and this has implications for smaller players like INO.
Alimera (ALIM) is another biotech that has had a huge pop. It produces drugs that treat a variety of eye diseases and is awaiting FDA approval. The stock is basically a speculation on the decision from the FDA. Even though larger biotechs are declining, Cramer prefers Regeneron (REGN) for those who want to invest in the eye treatment space. He would buy REGN on the way down, since it is likely to decline further.
Merck (MRK) is doing a classic break-up and is selling the consumer products division. The stock has risen 10 points. While biotech is selling off, buyers are flocking into big pharma.
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