Cramer's Mad Money- 15 Earnings to Watch Next Week (1/21/11)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday January 21.

OM Group (NYSE:OMG), Rue 21 (NASDAQ:RUE), Cognex (NASDAQ:CGNX), Wellpoint (WLP), PPG Industries (NYSE:PPG)

A caller stumped Cramer last week when he asked about OM Group (OMG) on the Lightning Round segment. After doing some research on the chemical and industrial devices company, Cramer thinks the stock has run too high to consider buying. He prefers PPG (PPG), which trades at a multiple of 14 and has a 2.6% yield.

Rue 21 (RUE), which had its IPO in November 2009, is a teen fashion retailer and a store expansion story. Cramer urged viewers to pursue trendy stocks at their own risk, and confessed he hasn't done well in the teen fashion space. Cramer would take profits in Cognex (CGNX) after the stock has had a significant gain. He is concerned about increased costs and thinks the stock is now fairly valued. Finally, Cramer recommended HMOs, particularly Wellpoint (WLP) which has "been a winner and can go higher."

CEO Interview: Larry Nichols, Devon (NYSE:DVN)

Continuing his series on theme of the 2011 energy bull market, Cramer saved "the best for last." Cramer thinks exploration and production companies have the greatest growth potential of any energy companies. The key to finding a winner in this segment is to look for low costs, aggressive production and a good balance between oil and natural gas. Devon (DVN) is up 30% since the CEO appeared on Mad Money in October. Devon is making the transition from offshore to onshore and is concentrating on domestic drilling. CEO Larry Nichols has been pleased with this move and said the company sold its offshore assets off at the right price, prior to the Gulf of Mexico disaster. The company has nearly $4 billion in cash, and the company might consider buying back stock or making an acquisition. Nichol's discussed the company's aim of having a 60/40 ratio of natural gas or oil, in either direction, since such a ratio gives the company the flexibility. When Cramer asked Nichols if Washington might pass legislation favorable to the adoption of natural gas as fuel for trucks, Nichols responded that after a couple of years of raising awareness about the fuel, Washington "is getting it now."

Cramer praised Larry Nichols and Devon; "He sold off of Gulf of Mexico at the top and moved into America at the bottom and he's doing great."

CEO Interview: Brian Jordan, First Horizon (NYSE:FHN)

Is First Horizon a broken stock or a broken company? Last March, Cramer said it was like a C minus student improving to a B plus, but it is still progressing slowly. However, First Horizon has just paid off TARP and reported a less disappointing quarter than it had before, with a 20% fall in non-performing assets and stabilizing interest margins. Brian Jordan said improvement has been a marathon and not a sprint and has not been in a straight line. As employment improves and as the company cleans up its balance sheet, the bank should continue to improve. Cramer would pull the trigger on FHN.

Game Plan for earnings: McDonald's (NYSE:MCD), CSX (NYSE:CSX), VMware (NYSE:VMW), 3M (NYSE:MMM), Johnson & Johnson (NYSE:JNJ), Automatic Data Processing (NASDAQ:ADP), Peabody (BTU), Boeing (NYSE:BA), ConocoPhillips (NYSE:COP), Marathon Oil (NYSE:MRO), United Technologies (NYSE:UTX), Qualcomm (NASDAQ:QCOM), Caterpillar (NYSE:CAT), Cirrus (NASDAQ:CRUS), Amazon (NASDAQ:AMZN), Honeywell (NYSE:HON)


McDonald's (MCD): Be ready to pounce, since the stock is down five points. Buy whether it goes up or down.

CSX (CSX): Listen for comments about costs and about what it transports: fertilizer and autos.

VMware (VMW): This stock got punished after F5 Networks' (NASDAQ:FFIV) quarter. Listen if the company indicates strong cloud business, which may mean a nice reversal for the sector.


3M (MMM): Like McDonald's, the stock stumbled but should be forgiven.

Johnson & Johnson (JNJ): With more recalls, this company just keeps getting worse and worse.

Peabody (BTU): A tell on the coal sectors, BTU might be hurt by Chinese tightening and Australian floods. If it drops, Cramer would buy.

Automatic Data Processing (ADP): "No one knows employment like these guys," and this stock has been on a tear.


Boeing (BA): Will give an update on the Dreamliner and should discuss increasing orders.

ConocoPhillips (COP): Will it split up like Marathon Oil (MRO)?

United Technologies (UTX): "This one will give the best insight on the world economy."

Qualcomm (QCOM): We want to hear about smartphones, sales and 4G.


Caterpillar (CAT): "The most important call of the week." Caterpillar should talk about the slowdown in China.

Cirrus (CRUS): "Will the market kiss and make up with Cirrus?" Listen for their Apple business and problems with its oil service problems in its energy segment. How much stock did they buy back.

Amazon (AMZN): Needs to beat earnings by $1.05 and report $13.6Bn sales or the stock will be hammered.


Honeywell (HON): The main focus of the call should be the fuel efficiency business. Cramer thinks management doesn't get enough credit.


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