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 week of June, his favorite buy recommendations (based on number of mentioned days) on Mad Money were as follows:
1. Chipotle Mexican Grill (CMG): Cramer repeated his buy recommendation of CMG four times during the last week of June. Chipotle Mexican Grill, Inc. operates fast-casual, fresh Mexican food restaurants in the United States. CMG recently traded at $325.3 and gained 131.7% during the past 12 months. The stock has a market cap of $10.12 billion and P/E ratio of 55.03. In the First quarter, CMG opened 12 new restaurants. CMG plans to open 135 to 145 new restaurants in 2011, bringing the total restaurant count to roughly 1220. CMG’s revenue for the first quarter was $509.4 million, up 24.3% from the prior year period. Net income for the first quarter of 2011 was $46.4 million, compared to $37.8 million in the first quarter of 2010.
On 27 June, Cramer stated that “The relationship is simple ... When gas prices go down, restaurant stocks go up. But you don't want to own just any restaurants. You want the best of the bunch and, in this environment, that's Darden for consistent, conservative growth and Chipotle to shoot the lights out for all you risk takers.”
Mark Broach’s Manatuck Hill Partners and Jim Simons’ Renaissance Technologies had the largest positions in CMG. Manatuck Hill Partners was the second best performing hedge fund during second quarter (See the top 25 hedge funds in Q2 2011).
2. Baidu.com (BIDU): Baidu.com provides Chinese and Japanese language Internet search services. BIDU recently traded at $147.78 and gained 107.6% during the past 12 months. The stock has a market cap of $51.55 billion and P/E ratio of 81.11. Cramer repeated his buy recommendation of BIDU three times.
On 28 June, Cramer stated that “I don't like the Chinese stocks. I have said that over and over again. Those who own SINA, by the way, yes. Can you ride it again? I am off that train. I'm only recommending BIDU, because it has the most similar to US financials, and because Google's not allowed in China.”
Ken Fisher's Fisher Asset Management had $492 Million in BIDU at the end of March. (See Ken fisher’s top holdings).
3. Darden Restaurants (DRI): Darden Restaurants owns and operates 1,800 restaurants, has approximately 180,000 employees and serves more than 400 million meals a year. DRI recently traded at $53.22 and has a 3.2% dividend yield. DRI gained 39% during the past 12 months. The stock has a market cap of $7.2 billion and P/E ratio of 15.7. Cramer repeated his buy recommendation of DRI two times.
On 28 June, Cramer mentioned that high gas prices have a dampening effect on the performance of Darden Restaurants and he added “You could say the same thing about almost any other restaurant out there, but I favor Darden because it's also a high-quality company. They've done a terrific job of cutting costs, in order to offset rising commodity prices. So now that commodity prices are falling, Darden's gross margins will get wider and they'll make more money from each sale.”
On Jun 30, 2011, Darden Restaurants reported diluted net earnings per share and sales for the fourth quarter and fiscal year ended May 29, 2011. Fourth quarter diluted net earnings per share from continuing operations were $1.00, a 23% increase from the 81 cents per diluted share in the fourth quarter of last year. Darden Restaurant’s fourth quarter total sales from continuing operations of $1.99 billion were a 6.8% increase from the prior year. Darden also announced a quarterly dividend of 43 cents per share, a 34% increase from the Company's previous quarterly dividend.
4. FedEx (FDX): FedEx Corporation provides supply chain, transportation, business and related information services worldwide. FDX recently traded at $97.56 and has a 0.5% dividend yield. FDX gained 32.2% during the past 12 months. The stock has a market cap of $31 billion and P/E ratio of 21.35. Cramer repeated his buy recommendation of FDX two times. FDX is one of the 27 stocks that hedge funds and analysts love at the end of April.
5. Jabil Circuit (JBL): Jabil Circuit provides electronic manufacturing services and worldwide. JBL recently traded at $21.35 and has a 1.3% dividend yield. JBL gained 55.4% during the past 12 months. The stock has a market cap of $4.67 billion and P/E ratio of 14.4. Cramer repeated his buy recommendation of JBL two times.
6. Lululemon Athletica (LULU): Lululemon Athletica provides design, manufacture, and distribution of athletic apparel and accessories. LULU recently traded at $120.25 and gained 209.2% during the past 12 months. The stock has a market cap of $8.6 billion and P/E ratio of 64. Cramer repeated his buy recommendation of LULU two times.
7. Netflix (NFLX): Netflix, Inc. provides online movie rental subscription services in the United States. NFLX recently traded at $295.14 and gained 151.1% during the past 12 months. The stock has a market cap of $15.5 billion and P/E ratio of 84.76. Cramer repeated his buy recommendation of NFLX two times. Blue Ridge Capital’s John Griffin had $239 million invested in Netflix shares at the end of March. John Griffin increased his NFLX holdings by 42% during the first quarter of 2011. He profited from 26% return of the stock in the last three months. During the first quarter of 2011, Tiger Global’s Chase Coleman also made a $200 Million bet on Netflix.
8. Phillips-Van Heusen (PVH): Phillips-Van Heusen Corporation provides branded dress shirts, neckwear, sportswear, footwear, and other related products worldwide. PVH recently traded at $70.09 and has a 0.2% dividend yield. PVH gained 46.5% during the past 12 months. The stock has a market cap of $4.73 billion and P/E ratio of 36.5. Cramer repeated his buy recommendation of PVH two times.
9. Southern Company (SO): Southern Company provides electric service in the United States. SO recently traded at $40.31 and has a 4.7% dividend yield. SO gained 22% during the past 12 months. The stock has a market cap of $34.2 billion and P/E ratio of 17.9. Cramer repeated his buy recommendation of SO two times.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.