Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday December 15.
Intuitive Surgical (NASDAQ:ISRG), Coach (NYSE:COH), CarMax (NYSE:KMX), Cognizant Technology (NASDAQ:CTSH), Southwestern Energy (NYSE:SWN), Cliffs Natural Resources (NYSE:CLF), Urban Outfitters (NASDAQ:URBN), FLIR Systems (NASDAQ:FLIR), Apple (NASDAQ:AAPL), Prcieline.com (NASDAQ:PCLN)
On a virtually "do-nothing" day for the markets when the Dow dipped 19 points, Cramer wanted to debunk the notion that stocks are merely treading water. Those who chose winners saw huge gains in the last ten years. Cramer went through the list of the biggest gainers in the last decade:
- Intuitive Surgical (ISRG) up 1,407%
- Coach (COH) up 1,507%
- CarMax (KMX) up 1.663%
- Cognizant Technology (CTSH) up 2,285%
- Southwestern Energy (SWN) up 2,601%
- Cliffs Natural Resources (CLF) up 2,671%
- Urban Outfitters (URBN) up 3,599%
- FLIR Systems (FLIR) up 3,789%
- Apple (AAPL) up 4,962%
- Priceline.com (PCLN) up 4,962%
These top ten growers share one thing in common; they completely transformed their industries with innovative products and ideas. While not all of the stocks above are buys (Cramer is concerned that Intuitive Surgical's market, for instance, might be saturated), and market themes will likely change in the next ten years, those who invest actively can find winning stocks, even in a lackluster economic environment.
TrueBlue (NYSE:TBI), Manpower (NYSE:MAN), Robert Half (NYSE:RHI), KForce (NASDAQ:KFRC), Paychecks (NASDAQ:PAYX), Automatic Data Processing (NASDAQ:ADP), Staples (NASDAQ:SPLS), Office Max (NYSE:OMX), Office Depot (NYSE:ODP)
"The job situation is about to get a whole lot better," declared Cramer, adding, "No, I haven't lost my mind." Although the weekly and monthly job reports show very little if any edge taken off unemployment, which is around 9.9%, Cramer says these are lagging indicators, which say more about the past than the future. It is important to look at leading indicators in the form of news from Staffing and payroll companies, which are painting a much brighter picture on the future of employment than is shown by the government data.
Staffing companies TrueBlue (TBI) and Manpower (MAN) both reported terrific quarters and strong guidance. Manpower grew 35% year over year and True Blue saw a 50% rise in revenue from manufacturing and 20% from other industries. Robert Half (RHI) and Kforce (KFRC) also beat earnings and said they expect to see growth in tech and accounting.
Payroll companies Automatic Data Processing (ADP) and Paychex (PAYX) are seeing a higher number of employees; the number of employees per client increased 1.7% for ADP and the company reported the private sector has added 93,000 new jobs. Staples (SPLS) reported an increase in corporate customers and Office Max (OMX), Office Depot (ODP), which supply goods to staffing companies, beat earnings.
Cramer thinks these companies' data "portends awesome hiring in 2011."
CEO Interview: Glenn Tullman, Allscripts (NASDAQ:MDRX)
Allscripts (MDRX) is a stock that has been held down as Misys, which once owned a 55% stake in the company, unloaded $225 million worth of shares. This was a "huge overhang," but Cramer thinks the supply issue is over, and MDRX is set to go higher, especially after its $1.3 billion acquisition of Eclypsis, another medical software play. Glen Tullman says Eclypsis is "the best kept secret in healthcare" and provides efficient solutions for connection patients, physicians and hospitals. Tullman is not worried about other mergers occurring in the healthcare sector, because MDRX is able to benefit from the consolidation rather than see it as a threat.
MDRX is ready to receive a good portion of the $36.5 billion stimulus earmarked for the medical records space. Ultimately healthcare is an information business," explained Tullman who says Allscripts now has the largest footprint in healthcare. The stock is up 123% since Cramer recommended it in 2009, but is down 8% for the year, mainly because of Misys selling its stake. Cramer thinks the stock should shoot up after being encumbered by supply issues, and he would buy MDRX.
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