Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday June 20.
9 Things To Watch in the Week Ahead: Micron (NASDAQ:MU), Rite Aid (NYSE:RAD), General Mills (NYSE:GIS), Monsanto (NYSE:MON), Molson Coors Brewing Company (NYSE:TAP), Accenture (NYSE:ACN), KBHome (NYSE:KBH), Nike (NYSE:NKE). Other stocks mentioned: Walgreen (WAG), GT Advanced Technologies (GTAT), EMC (EMC), Pioneer Natural Resources (NYSE:PXD), Parsley Energy (NYSE:PE)
Cramer discussed earnings and data for the week ahead. There are many IPOs, and for these, Cramer urged potential buyers to make sure they are picking up the stock in mid-range and not chasing these in the aftermarket. Concerning global conflict and its effect on the market, as long as the rebels in Iraq do not seize the oil fields, oil prices might be stable.
China Manufacturing PMI: This number is taking on greater significance, especially for industrial stocks. Without improvement in this number, this sector could fall. A number over 50 could keep the momentum growing.
Micron (MU) reports after the close. Cramer thinks management will shoot the lights out. Estimates have not kept up with MU's business.
Rite Aid (RAD) got slammed recently, but Cramer wants to buy it. However, Cramer thinks it is Walgreen's (WAG) time to shine with remodeling and a British acquisition that could act as a tax haven.
General Mills (GIS) Cramer thinks it will deliver a decent number, may sell off and will probably bounce back.
Monsanto (MON) is heavily shorted either because it is overvalued or because it is controversial. Cramer would think of this as a biotech company rather than an agriculture company. Cramer would buy on a dip, because he thinks the "feed the world" cheaply crowd will make more noise than the anti-GMO contingent.
Molson Coors (TAP) Analyst Day may be one of the most important events of the week. Cramer is a fan of the beer stocks. Morgan Stanley went from a Sell to a Hold on TAP ahead of the meeting, and Cramer thinks that is a sign of possible good news for TAP.
Accenture (ACN) has been strong lately, and Cramer likes it ahead of the quarter, although it tends to dip following earnings before recovering.
Nike (NKE) is "tough." It is a holding in Cramer's charitable trust. It ran after its last earnings, but then got hammered. He is "nervous" about Nike, because it doesn't act well, even on good days.
KBHome (KBH): Tighter lending standards and heavy college debts mean that many young Americans will end up renting for many years. Cramer is not expecting to hear good news.
Cramer took some calls:
GT Advanced Technologies (GTAT) is one of Cramer's favorite specs.
EMC (EMC) is not Cramer's favorite, but is doing alright. Cramer doubts EMC will deliver significant growth.
Chevron (CVX), at $132, has left its optimal trading range; usually the stock was a sell every time it rose above $120. PPG Industries (PPG) also broke out of its ideal range. Cramer calls this "sticker shock," when a stock breaks above its usual trading range. It is common to think that this "sticker stock" means "sell." Some of these stocks continue higher. Walgreen and Monsanto are two stocks in which Cramer says he "can't take the sticker shock. Those two got away without me." Aerospace and banks might soon experience sticker shock, and since they have been down for a while, the rise might be sustained.
Cramer took some calls:
Mad Money World Cup: GW Pharmaceuticals (NASDAQ:GWPH), Constellation Brands (NYSE:STZ). Other stocks mentioned: Johnson & Johnson (NYSE:JNJ), Pharmacyclics (NASDAQ:PCYC), Isis Pharmaceuticals (ISIS), Seattle Genetics (NASDAQ:SGEN)
Cramer declared a winner from his week-long World Cup Picks. Britain is out of the real-world World Cup after its defeat by Uruguay, but its stock can still win the Mad Money World Cup. GW Pharmaceuticals (GWPH) takes the chemical components for cannabis and creates medications from them. Regular medical marijuana is not something many doctors will embrace, and doing medical tests using cannabis is illegal in the U.S. These tests are legal in the U.K., at least those using chemicals in the cannabis plant, and GWPH has a medication approved for MS in 25 countries. The company is not yet profitable, but has a consistent revenue stream. The company may get FDA approval for a pain medication for cancer treatment. GWPH is also conducting tests on cannabis-based treatments for epilepsy. There has been safety and efficacy data on these drugs; 48% of patients saw a 50%-70% reduction in symptoms, and some were seizure-free. One treatment is for pediatric epilepsy, and the drug could receive orphan drug status. GWPH announced a secondary offering, but these secondaries have been effective launching pads for the stock. The stock has rallied 22% since Cramer got behind it. It is his favorite speculative British stock and is a buy on any weakness.
Which of the stocks covered in the past week wins the Cramer World Cup? Cramer gives the award to Constellation Brands (STZ), because of its fantastic brands and because there might be a takeover in the industry.
Cramer took some calls:
Johnson & Johnson (JNJ) is a good pick for a Roth IRA. The drug stocks are breaking out.
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