Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV program, Wednesday June 15.
Fortinet (NASDAQ:FTNT), Websense (NASDAQ:WBSN), Lockheed Martin (NYSE:LMT), Infosys (NYSE:INFY), Accenture (NYSE:ACN), Juniper (NYSE:JNPR)
With the increase of cyber threats, cyber security is a trend for all seasons, since companies need to spend money to protect their data whether the market is bearish or bullish. Cramer recommended two cyber security plays:
Fortinet (FTNT) provides its customers with unified threat management and all-around protection. The system is cheaper and less complex than purchasing several systems. The company has great earnings visibility with 60% of its revenues from subscriptions. Fortinet reported an excellent quarter, but since the stock has a multiple of 55 compared to its 17% growth rate, Cramer would wait for it to come down. $21 is a good level.
Websense (WBSN) provides security for cloud computing, which tends to be more vulnerable to attack than traditional systems. Salesforce.com (NYSE:CRM) used Websense's services for its cloud computing platforms. Since the company is undergoing a "transition year" it might miss its quarter, but is a great long-term security play with a multiple of 14.5 with a 13.3% growth rate.
Cramer took some calls:
Lockheed Martin (LMT) is a buy when its yield is 4%. Right now, its dividend is 2.7%
Juniper (JNPR), like other tech stocks, is in pain right now, although Cramer says he believes in CEO Kevin Johnson. He advised waiting for earnings.
This market is "totally and completely obnoxious," said Cramer on the same terrible macro themes. However, this hatred of the stocks will play out, sellers will sell out and buyers will return. Earnings reports of individual companies are usually brighter than the macro data would suggest.
Cramer took some calls:
Travelzoo (TZOO) has been a big winner. It saw a major short squeeze and is not a stock for the squeamish. Those who hold the stock should sell some off the top.
Bank of America (BAC) is the cheapest Cramer has seen it, but it is likely not going higher anytime soon.
The Vanishing Middle: Perrigo (NYSE:PRGO), Johnson & Johnson (NYSE:JNJ), TreeHouse Foods (NYSE:THS), Clorox (NYSE:CLX)
High-end retail is doing well and very low-end retail is also showing signs of health. Retailers in the middle seem to be suffering as consumers move beyond dependable defensive companies like Clorox (CLX) to buy private-label brands. Increasingly, companies that produce "knock-off" brands like Perrigo (PRGO) and TreeHouse (THS) are taking market share from the producers of household names. Perrigo has especially benefited from the many recalls of Johnson & Johnson (JNJ) products. Perrigo grows through acquisitions and sales, and the stock is up 80% since Cramer recommended it in February 2010.
TreeHouse (THS) disappointed last quarter and delivered a 7 cent miss, but this was due to higher freight and fuel costs. The company is seeing significant organic retail growth and has shown it can raise prices without losing customers.
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