Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday April 1.
Schnitzer Steel (SCHN): This company is a terrific predictor for growth in China. Materials stocks have run up, but SCHN will let investors know if this move is justified.
KB Home (KBH): Housing has been bumping along the bottom because there are too many houses and not enough buyers. Cramer thinks once the homebuilders say they are not building any more homes, then housing might shape up; "Homebuilders have been their own worst enemies."
Ruby Tuesday (RT): This was the first restaurant to report that business was looking up at the end of the recession, and is a reliable tell on the consumer. Cramer wants to hear about how high gas prices are impacting its business.
Pier 1 Imports (PIR): This retailer was the first to call the bottom in the sector at the end of the recession, and Cramer thinks it is a great tell on the mid-range consumer.
Wholesale Inventory Report: Since inventory is a key to the health of companies and demand for employment, this number is worth paying attention to.
Ebix (EBIX) provides software and e-commerce services for insurance companies, and is a first mover in the space. While its story looks good, the stock fell 25% on bad press. Even with the announcement of a substantial buyback, Cramer says he doesn't like battleground stocks. However, those who already hold the stock should not sell.
Micromet (MITI) is a speculative biotech that trades for around $5, and has something in the pipeline for leukemia. However, Phase III data for its main drug will not come out until next year, so there is no compelling reason to buy the stock here, even though it is 34% off its December highs. Since clinical trials are way off, "buying this stock is like 'Waiting for Godot'...except it is less entertaining and much more pointless."
SIGA Technologies (SIGA) is a bio-defense drug company that makes treatments for those affected by biological warfare. It has a smallpox drug in the pipeline and may receive a $2.8 billion government contract. However, SIGA is also facing litigation, and if one of these stories goes sour, the stock could get hammered.
iShares Silver Trust ETF (SLV) is the best way to play silver, said Cramer. While he thinks silver stocks are good, many of them have risen too high and he would wait for them to come in.
Ford (F) has seen the sales of its cars negatively affected by rising gas prices. However, Cramer thinks Ford has spent too long in the doghouse and will be released soon. He also recommended GM (GM) as a speculative turnaround, and while GM's numbers didn't look good on the surface, its incentives were better-than-expected.
With baseball season beginning, sports fans may be out looking for a speculative stock play that reflects their interest in America's favorite pastime. G-III Apparel (GIII) provides uniforms for professional sports leagues, but this isn't the main reason to buy the stock. A full 85% of its sales are from department stores and the company sells 30 brands, most of which have significant name recognition, as well has developing some new brands of its own.
Cramer bases his buy recommendation on information from Phillips-Van Heusen (PVH) that its Calvin Klein brand is growing 11%. Warnaco (WRC) which sells Calvin Klein, is also reporting increased sales of this brand. GIII is another company that sells this world-famous label. Cramer thinks the strength of Calvin Klein alone could lift GIII's stock price significantly, and the company has already reported a 20% increase in sales for Calvin Klein dresses. Like PVH, GIII is looking for ways of dealing with rising cotton prices by using alternate fabrics and searching for cheaper sources of labor. The stock's multiple is 11 and its growth rate is 17% -- higher than the growth rates of both PVH and WRC. While Cramer thinks GIII is a buy, he wouldn't chase the stock; he recommended investors wait and "swing for the right pitch."
Industrials like Caterpillar (CAT) and Manitowoc (MTW) are on fire with the proposed rebuilding of Japan which should be the most costly reconstruction in history, at an estimated $300 billion. One domestic industrial might be worth a look for when infrastructure in the U.S. roars back into action. RSC Holdings (RRR) rents industrial equipment, and as a renter, it isn't exposed the the same problems of raw costs and supply issues as other industrials. With a good employment number on Friday, the economy seems to be picking up, and industrial projects will not be far behind. A full 60% of the company's revenues come from industrial rather than construction, which is still a slow area of growth. The company has reported the ability to raise its rents and is seeing higher demand. Cramer emphasized that RSC Holdings is a speculative play, since it has $2 billion in debt, which is normal for an industrial equipment renter, but is still an issue worth considering. Since the stock is close to its 52 week high, Cramer would wait for a pullback and would not buy it Monday if the stock goes up.
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