Stocks discussed on the in-depth session Jim Cramer's Mad Money TV Program, Friday February 11.
20 Earnings to Watch: Limelight Networks (LLNW), Akamai (AKAM), Masco (MAS), Walter Industries (WLT), CenturyLink (CTL), Allscripts (MDRX), Fossil (FOSL), Dell (DELL), Eastgroup (EGP), Deere (DE), Devon (DVN), Owens Corning (OC), Agnico Eagle Mines (AEM), NetApp (NTAP), Nvidia (NVDA), Barrick Gold (ABX), Timberland (TBL), Nordstrom (JWN), Cambell Soup (CPB), Eldorado (EGO), Ultra Petroleum (ULP), Chesapeake (CHK)
Limelight Networks (LLNW): This $6 stock is a speedier internet play and is the "fast lane on the information superhighway." Akamai (AKAM)'s stock "blew up" after it gave "seasonably slow" guidance ("I didn't know there was a season for the internet," commented Cramer). Either Limelight will give the same bad news or will say it is taking share from Akamai.
Masco (MAS): "The best housing barometer," since it represents all things kitchen and bath. It has been on fire, but Cramer cautioned this is a "listen only" call.
Walter Industries (WLT): This metallurgical coal play may comment on the fact that coal has been stalled lately, or it may say it is taking share from Australian mines that have closed because of bad weather.
Allscripts (MDRX): Is in the sweet spot and may have an easy quarter, but the stock is at its 52 week high and tends to sell off after it reports.
Fossil (FOSL): This accessories play is up 88% since August. Cramer urged investors not to be too greedy and sell some of the stock.
Dell (DELL): Cramer expects yet another bad quarter from Dell, but doesn't think it will move other tech stocks.
Eastgroup (EGP): This company is a good gauge for retail and office rents. Cramer thinks Eastgroup is a buy here.
Deere (DE): This company tends to have difficult conference calls and sells off hard after reports. Cramer would buy some after it dips.
Devon (DVN): This natural gas play has had a huge run and tends to sell off after it reports. He would buy when the stock falls.
Owens Corning (OC): This housing barometer is up 33% since August. Cramer would take some off the table, since it has gotten "wildly ahead of itself."
Agnico-Eagle Mines (AEM): The stock has been taken down on the gold correction and is Cramer's growth gold stock. Last quarter the stock sold off when TheStreet didn't like the company's guidance. He is still bullish.
NetApp (NTAP): This stock got sold off last quarters because it missed numbers, and was an incredible buying opportunity. NetApp is in the data storage sector and right now "nothing is hotter than that."
Nvidia (NVDA): Cramer would ring the register on Nvidia. "I"m done with Nvidia. Go home."
Barrick Gold (ABX): This is Cramer's blue chip gold stock and he feels the story is getting better and better.
Timberland (TBL): "I expect good things from Timberland," said Cramer.
Nordstrom (JWN): This retailer should indicate whether or not the high-end customer is spending.
Cambell Soup Company (CPB): Cramer thinks this brand is ripe for the Chinese taking as someone should put the company out of its misery. "This has been the ultimate value trap."
Eldorado (EGO): This is Cramer's junior growth gold stock .
Ultra Petroleum (ULP): After Chesapeake (CHK) made a deal with the Chinese, Cramer wants to hear of Ultra will talk about its own joint ventures.
Chipotle Mexican Grill (CMG) is a famous restaurant growth story, but what other restaurant chain has close to its growth at half its multiple? Buffalo Wild Wings (BWLD) which trades at a multiple of 21 times earnings compared to CMG's 40, with similar growth rates of 21%. BWLD is increasing its 740 stores in 40 states by another 100 stores and is moving into two of the biggest university towns in the country: Boston and Philadelphia. The company reported a terrific quarter with a 3 cents earnings beat and a rise in revenue by 13%. While other companies are facing food inflation, Buffalo Wild Wings is actually benefiting from cheaper chicken.
The Super Bowl saw the sale of six million chicken wings at the company's stores, but March Madness promises to be an even bigger event for the restaurant chain. The company is expanding internationally into Canada, and has its eye on China. Cramer thinks Buffalo Wild Wings is a "gigantic growth story."
CEO Interview: David Demers Westport Innovations (WPRT)
With a huge supply of natural gas and not yet enough support for the fuel from Washington, many natural gas companies are waiting for their cue from Congress. However, companies like Westport Innovations (WPRT) are making their own destinies by forming overseas partnerships. Westport transforms conventional engines to those that run on natural gas and has the advantage of high barriers to entry, given the complexity of the technology.
The recent quarter was not well received, and delivered 13 cents lower than expectations. The company had higher expenses and was involved with new investing opportunities; "If you are going to miss, that is the way to do it." However, the company's sales in China were up 130%. The stock is up 31% since Cramer recommended it in 2010, but is down 17% since Cramer spoke with the CEO in November. Demers is hopeful of the company's opportunity in China, which has gas-rich shales, high demand and the motivation to make natural gas work. As more people around the world find oil no longer affordable, the natural gas revolution "is going to happen," said Demers. Cramer thinks Westport is still a "viable speculation" on the long-term trend toward natural gas.
CFO Interview: Jack Hartung Chipotle Mexican Grill
Chipotle reported an excellent quarter with an 18 cent beat with a 24% rise in revenues and strong same store sales. The stock rose $12 but was taken down 8 points before the open on Friday on analysts concerns about raw costs. However, Chipotle confounded the negativity and the stock rallied for the rest of the day. "This is the single best restaurant growth company out there," and Cramer urged investors not to be worried about rising raw costs, which are offset by t he company's robust same store sales.
The stock is up 80% since Cramer got behind it in June, and The Street is distrustful of its big moves. However, Cramer thinks Chipotle is an ethos and not just a restaurant, and a "Good Housekeeping seal of approval" for dining out. CFO Jack Hartung spoke about the company's "Food with integrity" vision, Chipotle's commitment to quality and its loyalty program. The company is opening 135 new Mexican restaurants and is opening a healthy Asian restaurant this summer. Cramer thinks Chipotle has more growth ahead.
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