Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

Jim Cramer is the host of CNBC's Mad Money and the chairman of TheStreet.com. In 1987 Cramer started his own hedge fund and returned an average of 24% per year between 1987 and 2001. Cramer also authored six money management books.

During the last 30 days his favorite buy recommendations (based on number of mentioned days) on Mad Money were as follows:

Company

No. Of Times Picked

First Date*

Return (%)**

Excess Return (%) (wrt S&P500)

Apple (NASDAQ:AAPL)

7

06/01/10

29.36%

2.74%

Caterpillar (NYSE:CAT)

6

08/10/10

48.58%

28.00%

DuPont (NYSE:DD)

4

06/04/10

57.93%

30.46%

Goldcorp (NYSE:GG)

4

02/18/11

11.14%

11.47%

Anadarko Petroleum (NYSE:APC)

3

12/02/10

12.84%

2.85%

Baidu.com (NASDAQ:BIDU)

3

11/08/10

21.31%

11.27%

Cummins (NYSE:CMI)

3

10/22/10

12.98%

-0.92%

Costco (NASDAQ:COST)

3

06/01/10

42.39%

15.76%

Salesforce.com (NYSE:CRM)

3

11/12/10

31.55%

19.41%

Hess Corporation (NYSE:HES)

3

11/29/10

12.38%

-0.74%

Netflix (NASDAQ:NFLX)

3

03/14/11

31.47%

28.36%

Panera Bread (NASDAQ:PNRA)

3

05/04/11

6.29%

7.26%

Potash (NYSE:POT)

3

11/16/10

24.98%

10.90%

Average

26.40%

12.83%

* Represents latest recommendation change from sell to buy.The study interval includes only past one year.

** Includes the duration from first date till May 29.

Cramer's favorite stock recommendations returned 26.4% on average since they have been recommended. The average relative performance of these stocks against the S&P500 is 12.83%. Eleven of 13 of his favorite stocks have managed to beat the market.

Cramer's most favorite stock during last 30 days was Apple. He repeated his buy recommendation of Apple seven times during the last 30 days. Apple has a market cap of $312 billion and Forward P/E ratio of 11.8. Apple recently traded at $337.4 and has gained 29.4% since June 1, 2010, beating the SPY by 2.74 percentage points. On 13 May, Cramer stated that "I don't think it's too late for you to buy Apple. In fact, right now I think the stock is way too cheap. Yes, too cheap, even at a $348 price tag," adding, "Plus, Apple's currently trading at less than 12 times earnings when you back out that $71 a share in cash on that balance sheet. Almost the same multiple as Nokia (NYSE:NOK), even though Apple's estimates keep getting bumped (up), and Nokia's numbers keep getting cut." On 17 May, he added "Dell (NASDAQ:DELL), very good. Apple, even better ... buy, buy, buy!"

Apple is one of the Fortune’s top ten picks for 2011 which fail to beat the market. Last summer, David Einhorn bought more than 800,000 shares of Apple, arguing that the stock’s PE ratio is extremely low compared to its growth prospects. Lone Pine Capital's Stephen Mandel had 1.7 Million shares of Apple at the end of December. He sold about 9% of these, as Apple went up during the first quarter. He had $542 Million in Apple at the end of March, vs. $553 Million at the end of December. Phill Gross and Robert Atchison's Adage Capital reduced number of shares by 5%. Adage had $503 Million in Apple at the end of March. Ken Griffin's Citadel Investment Group, David E. Shaw's D. E. Shaw group and Rob Citrone’s Discovery Capital have large AAPL positions in their portfolios. Hedge funds had $7.3 Billion in AAPL. George Soros reduced his Apple holdings by 93K shares at the end of March. He bought 210 K call options, which were offset by a 280 K position in Apple put options. Soros is getting bearish about Apple. In the last month AAPL lost 3.7%.

Caterpillar, another most favorite stock of Cramer, is a Fortune 100 company and the world's leading manufacturer of construction and mining equipments. Cramer repeated his buy recommendation of CAT six times during last 30 days. CAT has gained 48.6% since August 10, 2010, beating the SPY by 28 percentage points. The stock has a market cap of $67.4 billion, P/E ratio of 18.6 and dividend yield of 1.7%. Caterpillar also has a conservative payout ratio of around 31 percent. In the first quarter of 2011, CAT reported net sales of over $12.9 billion, an increase of 57% compared to first quarter of 2010. At the end of the first quarter Debt-to-capital ratio was improved to 30.4% from 45.2% a year ago and 34.8% at year-end 2010. CAT also has $4.9 billion of cash and short-term investments on the balance sheet at the end of 1Q. Ken Fisher's Fisher Asset Management had $820 Million in Caterpillar at the end of March.

DuPont operates as a science and technology company worldwide. Cramer repeated his buy recommendation of DD four times during last 30 days. DuPont has gained 57.9% since June 4, 2010, beating the SPY by 30.5 percentage points. The stock has a market cap of $48.8 billion, P/E ratio of 14.7 and dividend yield of 3.1%. DuPont also has a payout ratio of around 46 per cent. Dupont is one of the 30 stocks that are expected to beat the S&P 500 by three percentage points. Matthew Grossman's Plural Investments and Jim Simons' Renaissance Technologies had the largest positions in this stock at the end of March.

Goldcorp has gained 11.1% since February 18, 2011, beating the SPY by 11.5 percentage points. Martin Zweig and Joseph DiMenna had $47 Million in Goldcorp at the end of March. The stock has a market cap of $39.9 billion, P/E ratio of 18.7 and dividend yield of 0.8%. On April 6, Cramer said, "I am going to tell you that I think you need to be in Goldcorp. They've got the best profile right now. I think the gold stocks are beginning to outperform the GLD. And boy, is it about time!"

Baidu.com has gained 21.3% since November 08, 2010, outperforming the SPY by 11.3 percentage points. The stock has a market cap of $46.7 billion and P/E ratio of 73.8. On April 6, Cramer said that "One of the two Chinese stocks I'm recommending ... Baidu.com, because it's the Google of China". On May 25, he added, "I've got that Baidu.com that I'm recommending. I don't want to recommend any other Chinese companies." Ken Fisher's Fisher Asset Management had $492 Million in BIDU at the end of March.

We believe investors can beat the market by imitating Cramer's favorite stock picks.

Source: Jim Cramer's 13 Favorite Stocks