Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday August 8.
12 Things To Watch In The Week Ahead: Priceline (NASDAQ:PCLN), Ventas (NYSE:VTR), Kate Spade (NYSE:KATE), Valspar (NYSE:VAL), Macy's (NYSE:M), Deere (NYSE:DE), Cisco (NASDAQ:CSCO), Kohl's (NYSE:KSS), Wal-Mart (NYSE:WMT), Nordstrom (NYSE:JWN), J.C. Penney (NYSE:JCP), Estee Lauder (NYSE:EL). Other stocks discussed: Johnson & Johnson (NYSE:JNJ), Frank's International (NYSE:FI)
The Dow rebounded 186 points on Friday. One reason is that the Russian-Ukranian conflict seems to have taken a breather. Domestic companies might be somewhat insulated from global conflict. Gas prices are coming down because of the strong dollar and because pipeline companies are more efficient in transporting oil and gas. Interest rates are going lower, and job claims are looking healthy; these two points are good for retail. Cramer would "ride the wave" of retail for the rest of the summer. He discussed earnings to pay attention to in the coming week.
Priceline (PCLN): Almost every time this company reports, the stock sells off, because management tends to give conservative guidance. Cramer would buy on a decline.
Ventas (VTR) has a 4.6% yield that could be increased and is a good bond equivalent stock.
Kate Spade (KATE) can still rally, but Cramer would be careful because the handbag business is seeing cutthroat competition.
Valspar (VAL) is probably going to have a good quarter. It might be a buy ahead of the earnings as a trade.
Macy's (M): Cramer wishes Goldman Sachs hadn't raised expectations for the stock, because he is worried it might get dinged on the quarter.
Deere (DE) is usually a stock that sells off after the conference calls anyway, and the agriculture sector is also not performing well. Cramer would sell into the spike that often occurs with DE after the earnings report and before the conference call.
Cisco (CSCO) has "wheels grinding positively." Cramer would buy half before the quarter and half after.
Nordstrom (JWN) has been good for the last 10%, and is still a "keeper."
J.C. Penney's (JCP) chart indicates it might be breaking out.
Estee Lauder (EL): Cramer likes high-end retail, and thinks EL is good.
Cramer took some calls:
Johnson & Johnson (JNJ) is a buy.
Frank's International (FI) has missed the quarter and is an underperformer.
"It's not junk food, it's a junk bond," Cramer thought when McDonald's (MCD) rallied even though it reported a poor quarter. MCD yields 3.5% and is being bought as a bond equivalent. Chipotle Mexican Grill (CMG) is growing quickly, and may be winning the battle against its former parent company, MCD, which is now hurting overseas, not just in the U.S. Many other food chains are performing better than MCD. WhiteWave (WWAV) was a strong performer, and is a sign that the natural and organic sector is winning. People who buy MCD are reaching for yield; investors who want growth would stay away from MCD.
Cramer took some calls:
Hain Celestial (HAIN): Cramer would be a buyer of Hain, yet the shorts are attacking it. Cramer said Hain is one of the best stocks he has recommended, but there is a lot of quarter-to-quarter volatility.
Hershey (HSY) doesn't have as good a yield as many stocks. It is worth holding onto, but Cramer would not buy more right now.
Molson Coors (NYSE:TAP) had a great quarter. Cramer would not sell it, because the beer group is consolidating. Buy more if the stock comes in.
Cramer invited Carolyn Boroden, technical analyst at fibonacciqueen.com onto the show. She discussed charts with symmetry and measured moves. Looking at Celgene's (CELG) chart, she sees patterns that point toward an upside. Amgen's (AMGN) prior declines form a pattern. She sees it going to $134.61. Exxon (XOM) has consistent symmetry of prior declines. General Mills (GIS) also is showing a pattern that indicates that if it holds above $49.27, it could go to $57. If Schlumberger (SLB) stays above $105.84, it could go higher, but if it drops below that level it could be in free fall. For Buffalo Wild Wings (BWLD), Boroden would wait for buy signals and would wait and see if the stock holds above its current level. If it does so, BWLD would be a buy.
Shutterstock (SSTK) reported a good quarter, but the stock declined. The website licenses images. It is a rapidly growing company, but it is a high flying stock. It reported a 3 cent earnings beat and revenues rose, but the stock sold off. One reason might be that it had run into the quarter, and it has a history of running up and selling off hard, but it might be a buying opportunity, because it tends to rebound after it declines. Shutterstock has lucrative partnerships with Facebook (FB) and Salesforce.com (CRM). The company has also gotten into licensing music. The model for Shutterstock is simple, with a subscription giving customers a wide selection of images. "These kinds of stocks are back in vogue," said Cramer.
CEO Interview: Terry Gregg, Dexcom (NASDAQ:DXCM)
Dexcom (DXCM) is a medical device company that makes continuous glucose monitoring systems for people with Type 1 Diabetes. The company reported a strong quarter and its revenues were up 64.2% and management raised guidance. It is likely to see a profit in 2015, and is taking market share. Its glucose monitoring system requires customers to buy new patches, so the devices guarantee return revenues. The diabetes data can be sent through smartphones, and the device does away with the old-fashioned finger pricking method. The stock is up 219% since Cramer recommended it in 2011 and has rallied 39% since Cramer spoke with the CEO Terry Gregg in May. The CEO thinks it isn't a question of if Medicaid will cover the device, but when. He added that the technology of Dexcom's device is more advanced than that of the competition. Cramer is bullish on the stock.
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