Stocks discussed on the Lightning Round session of Jim Cramer's Mad Money TV Program:
11 Things to Watch in the Coming Week: Agrium (AGU), Barnes & Noble (BKS), Walgreen (WAG), Jabil Circuit (JBL), CarMax (KMX), Bed Bath & Beyond (BBBY), Paychex (PAYX), FedEx (FDX), McCormick (MKC), Accenture (ACN), Oracle (ORCL). Other stocks mentioned: Amazon (AMZN)
Cramer discussed things to watch in the coming week, but the most crucial news will be what is going to happen to the Greek economy. Bad news on Sunday might make earnings reports ineffective as market movers.
Agrium (AGU) has an investors' day. Along with the rest of the agriculture sector, Agrium is down on the stalling of ethanol subsidies. Cramer thinks these subsidies will be maintained, and he likes the long-term story of the ag sector.
Walgreen (WAG) is a quintessential safety stock. The company is converting its stores,and Cramer gives WAG two thumbs up.
Jabil Circuit (JBL) is one of the best barometers of the tech sector, since it is an assembler of so many tech products. "I despise tech right now," Cramer added.
CarMax (KMX) will indicate if there is any pulse in the auto sector.
Paychex (PAYX) is a window into hiring, and will indicate if there will be any respite to high unemployment.
Bed Bath and Beyond (BBBY) is a trade down retailer, and Cramer expects it to tell a good tale.
FedEx (FDX) will give information about the global economy.
McCormick (MKC) is an extremely steady stock. Cramer would buy it ahead of the quarter.
Family Therapy: Apple (AAPL)
Cramer discussed issues with family members who disagreed over investing and stocks. He told two sisters that if they did not have time to research stocks, they should own just one or two holdings. To brothers who had a friendly disagreement over Apple (AAPL), Cramer said he is curbing his enthusiasm on the stock following the departure of Ron Johnson. While he would not short Apple, which he thinks is the "cream of the crop" of tech, a sector performing poorly, he doesn't expect big gains for Apple in the near future.
The high-end and the low-end segments of retail are performing well, leaving companies in the middle range stalled. With high unemployment, consumers are abandoning Wal-Mart (WMT) for dollar stores such as Family Dollar (FDO). The company has 7,000 locations, but has recently been focusing on remodeling old stores rather than building new locations. In 2011, 800 Family Dollar stores are expected to receive makeovers, and same store sales in the revamped locations are expected to double. There are two ways to win with Family Dollar: either it could be taken private (the company has already received offers), or it could grow organically on its strong theme.
On the high end, wealthier consumers are still willing to shell out large sums of money for premium merchandise, and high-end brands have pricing power. Saks (SKS) has posted a 20.2% gain in same store sales while analysts were expecting a mere 8% increase.
Crocs (CROX) is not a good takeover target and is an overvalued stock.
GameStop (GME) is not a bad company, but Cramer is worried about its subscription model and competition.
Altria (MO) is a strong stock, but Cramer is leery of recommending cigarette stocks.
BJ's Wholesale (BJ) is a "done deal" with its takeover bid, and Cramer would take some stock off the table.
Vulcan Materials (VMC) is too cheap to sell. "I couldn't believe it was at $40."
CEO Interview: Tim Sullivan Ancestry.com (ACOM)
Ancestry.com (ACOM) is an online company that helps people find their roots and connect with the past. This subscription-based business has 1.6 million subscribers and recently beat estimates by 3 cents with an amazing 41% gain in revenues. The stock shot up 42% on the news, but it has been drifting down since on general slowness in the market. The stock is up 174% since its IPO in November 2009.
As Baby Boomers--Ancestry'com's main demographic--age, the company's subscriptions are growing. "Every family has a historian," said Sullivan, and this is the user the site aims for. Once users subscribe, they usually stay, since they want to find out more information about their families. The company is expanding its content and investing more in advertising.
"You have a terrific niche, undervalued business," Cramer told Sullivan.
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