Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday September 17.
In honor of the Day of Atonement, Cramer discussed three stocks he got wrong in the past year: Cree (CREE), Rubicon (RBCN) and Skechers (SKX). He said these three picks represent "three faces of the same mistake...I let myself get carried away by a powerful, compelling long-term thesis but I didn't focus enough on the short-term concerns which this market is really riveted about."
Cramer has been following the bull market in shoes and liked Skechers' toning footwear, until a class action suit challenged the shoe companies' claims about their shoes. Skechers has gone up 39% and fallen down 45%. However, Cramer doesn't think the stock will get beaten up much more, believes in the long-term thesis and would consider buying Skechers.
The phasing out of old light bulbs between 2012-14 and their replacement with LED lightning inspired Cramer's pick of Rubicon (RBCN), which makes sapphire wafers for LED lights and Cree (CREE) which produces semiconductors for the special bulbs. However, since his recommendation, Cree is down 26% and Rubicon dropped 18%. Investors are stuck in with these stocks because they are too low to sell and aren't going to rally soon. While Cramer still believes the stocks may have their day, it might be some time before they see an upside.
Adobe (NASDAQ:ADBE), Darden Restaurants (NYSE:DRI), Jefferies Group (JEF), Nike (NYSE:NKE), KB Homes (NYSE:KBH), Apple (NASDAQ:AAPL), Bed Bath & Beyond (NASDAQ:BBBY)
Cramer outlined what to look out for in the coming week. President Obama is speaking Monday. While he isn't sure whether the President will take a hard or a soft line on business, he does think Obama's talk will set the tone for the rest of the week. The Fed meets on Tuesday, and is expected to report that August was weak, but job and retail numbers are looking better for September. On Tuesday, Adobe (ADBE) reports and should give information on Apple (AAPL). Darden Restaurants (DRI) is a tell on the consumer, and Cramer would pay special attention to numbers from Capital Grille, a high-end steak establishment. Wednesday, Bed Bath and Beyond (BBBY) reports. The company was too cautious on its last call. Jefferies Group (JEF), a brokerage house, may discuss how it has benefited from financial reform, now that it can participate in the credit default swap market. Cramer expects a blowout quarter from Nike (NKE), thanks to the bull market in shoes. On Friday KB Homes (KBH) reports, and negative talk is expected, even if the results are positive.
Cramer continued his weeklong series featuring great industrial companies. DuPont (DD) has seen a 28% gain in stock price. The company is 30% levered to the hot agriculture sector, and it is currently the number one seed supplier in North America, outstripping even Monsanto (MON). Its chemicals business is growing by 19% and its performance coatings business is strong.
PPG Industries (PPG) is the second strongest player in the coatings business, which comprises 72% of its sales. Asia is a major player, and currently 55% of its business is from overseas. The auto coating and aerospace businesses are also growing. The company currently offers a reasonable dividend of 3%.
Mad Mail: Citigroup (NYSE:C), Bank of America (NYSE:BAC), Salesforce.com (NYSE:CRM), Harley-Davidson (NYSE:HOG), Nucor (NYSE:NUE), Home Depot (NYSE:HD)
Cramer thinks that, in spite of the government selling off Citigroup (C), it and Bank of America (BAC) are headed higher. Salesforce.com (CRM) has gone from $70 to $120 in a straight line, so Cramer thinks there might be a sell-off. He still might consider buying a quarter of a position, for those who really feel they must buy the stock now. Harley-Davidson (HOG) is not a takeover target, Cramer told one viewer, but he would buy the stock for earnings. Nucor (NUE) has been down on its luck, but has a great long-term story. Cramer likes both the long- and the short-term story of Home Depot (HD).
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