Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round, Stop Trading! and his Wall Street Confidential.Waste Not, Want Not: American Ecology (ECOL), Stericycle (SRCL)
"Hazardous waste equals mad money," says Cramer, adding that ECOL is a good secular growth stock which has limited competition thanks to a "government-sanctioned oligopoly" which restricts the number of companies which are permitted to deal with toxic waste. There are currently only five analysts covering ECOL, and Cramer likes its solid yield of 3.4%. Another "strong secular grower" is SRCL which is up 14 points since Cramer recommended it, but is still worth buying, he says, because it is the "only national player in the medical-waste business." SRCL has contracts with hospitals, which means steady income for the company.
Related: Debra Fiakas says that American Ecology is "still a good buy."
One Stock, Two Views: Bed, Bath and Beyond (BBBY)
Although Cramer thinks that BBBY is expensive based on its earnings, has an outdated concept and is suffering because of the slow housing market, Cramer would not sell the stock. The paradox surrounding BBBY is that Morgan Keegan downgraded it because of "declining fundamentals" and Goldman Sachs upgraded it because of "improving fundamentals." Looking at both sides of the BBBY story, Cramer explained that Morgan reported that the company's guidance was "reasonable," which indicates that it is not expected to overdeliver. Morgan also feels that BBBY's buyback will be completed too early, and that valuation of its stores does not include risks such as a deceleration of sales growth. However, Goldman noted that BBBY tends to have a low guidance and beats it, and Goldman likes the company's buyback as well as its purchase of Christmas Tree Shops. Cramer commented that this story about BBBY illustrates that two analysts can make "totally different conclusions" based on the same facts, and the winner of the debate will be determined ultimately by the price of the stock. In conclusion, Cramer would not pick up BBBY now, because he agrees with Morgan concerning the company's earnings. However, he would not sell it because he thinks BBBY might be bought by a private equity firm. At $40, the stock is "no man's land," but if it were higher or lower, he might buy or take profits.
Related: Bed Bath and Beyond has one of the best growth and profit margins in the retail industry.
CEO Interview : Craig Miller Ruth's Chris Steak House (RUTH)
Cramer asked Craig Miller how he could preannounce that the fourth quarter will be up; "We have a terrific brand," Miller replied. Concerning pricing, last year the restaurant had 5% hedged, and this year more than 50% is hedged. In spite of labor issues, Miller is confident, and believes that the company's strength is the kind of dining experience it provides for its customers, and hopes to build more restaurants. Although Ruth's past success has not generated wealth for its shareholders, Miller expects this situation to improve as RUTH gains credibility and the market comprehends its business model. He also notes that RUTH is reinvesting cash flow to develop its brand, and is looking forward to overseas expansion.
Related: Hilary Cramer calls RUTH a "compelling stock."
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