Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday March 14.
Green Mountain Coffee Roasters (NASDAQ:GMCR), Questcor Pharmaceuticals (QCOR), Netflix (NASDAQ:NFLX), Priceline.com (NASDAQ:PCLN), SXC Health Solutions (SXCI), VirnetX Holding Corp (NYSEMKT:VHC). Stocks also discussed: Soda Stream (NASDAQ:SODA)
On the six-year anniversary of Jim Cramer's Mad Money program, the host discussed 6 stocks that have given investors the most upside since 2005. Not all of these have been Cramer's picks, but he has gotten behind several of them in his efforts to coach viewers on the art of investing.
1. VirnetX Holding Corp (VHC): This 4G security play was a penny stock in 2005, and traded at just 21 cents compared to $12.54 now for a 5,871% gain. However, few would have seen its upside coming, since its stock priced soared because of a patent infringement lawsuit with Microsoft (NASDAQ:MSFT) last year. The company has no profits apart from the lawsuit.
2. Green Mountain Coffee Roasters (GMCR) went from $1.83 in 2005 to its current $59, a 3,125% gain on the idea of building a better mousetrap. The Keurig was a perfect play on the trend of increased American coffee drinking and has revolutionized kitchens across the country. Cramer thinks Soda Stream (SODA) is a company with similar potential.
3. Questcor Pharmaceuticals (QCOR): This tiny drug company has an extremely expensive medication to treat MS flareups. It is an example of how well a company can do if it produces an orphan drug for a niche market. The stock sold for 5 cents in 2005 and now trades at $13 for a 2,536% gain.
4. Netflix (NFLX): If this company had stayed a DVD by mail company, it would never have seen its 2,018% rise in stock price from $9.50 in 2005 to $201. With its 36% compound annual growth rate, Netflix is yet another example of how "building a better mousetrap" can mean tremendous growth for a company.
5. Priceline (PCLN): This is one of the last dot.coms standing, and is an easy to use site with lots of publicity. Priceline turned the whole travel industry upside down and has risen from $22 in 2005 to $463 for a 2,002% gain.
6. SXC Health Solutions (SXCI): This play on rising healthcare costs has risen from $1.26 in 2005 to $50.23 for a 1,893% gain.
What do these stocks tell us? First, speculation should play a part in every portfolio and is a great way to make money. While Cramer doesn't recommend penny stocks, the success of a few penny stocks here is eye-opening. Finally, one of the best ways to produce growth is to make a better mousetrap.
On his sixth anniversary show, Cramer expressed his appreciation to his viewers: "Thanks for keeping me on the air to teach, coach and entertain."
CEO Interview: Herbjorn Hansson, Nordic American Tanker (NYSE:NAT)
When the market fluctuates, it is important to have a solid dividend stock to provide a cushion when stock prices are sent down and to help you wait it out if a sector seems to stagnate. Cramer cited Nordic American Tanker (NAT) as a prime example of a dividend stock that has a bullish long-term story. The stock pays out a 4% dividend, and while Cramer has not liked the tanker space recently because of the oversupply of ships, he thinks this is a short-term problem that does not cancel out Nordic American as a long-term buy.
Herbjorn Hansson came on Mad Money to explain the company's strategy of buying up ships when there is an inventory glut and prices are cheap and when the number of ships decrease and rates rise, returning profits to shareholders in the form of a dividend increase. Nordic American is currently in the phase of buying ships, but is seeing rates increase with disturbance in the Middle East. The earthquake in Japan has the effect of raising rates for the long and the short term as Japan will want to switch to oil following the country's nuclear disaster. Hansson mentioned that, for the past 11 years, the company has been able to operate at high rates for 7 of those years and has raised the dividend for 54 consecutive quarters an average of 14%.
Cramer says Nordic American tanker is "the only tanker company I recommend...you are best in the business, best of breed and a good dividend play."
Mad Mail: Freeport McMoRan (NYSE:FCX)
A viewer asked Cramer what he meant about buying Freeport McMoRan (FCX) down to where it would yield 3%, and wondered if he really thought the stock would go that low. Cramer doesn't think the metals play will get beaten down so badly, but added that it is important to prepare for that possibility. He told another viewer that he doesn't think the crisis with the nuclear reactor in Japan is a buying opportunity and would stay away from all uranium stocks.
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