Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday July 15.
Game Plan: Halliburton (HAL), Schlumberger (SLB), IBM (IBM), Apple (AAPL), Bank of America (BAC), Chipotle Mexican Grill (CMG), Core Labs (CLB), PPG Industries (PPG), VFCorp (VFC), Caterpillar (CAT). Other stocks mentioned: Bucyrus (BUCY)
Cramer outlined the game plan for the coming week:
IBM (IBM) is a cheap stock which Cramer would buy Monday, and if the stock gets hit, he would buy more.
Apple (AAPL) will probably surprise The Street the same way Google did last week. Cramer is more worried about missing the next move in Apple than about its fundamentals.
Bank of America (BAC) will probably report terrible news with huge losses and major write offs.
Chipotle Mexican Grill (CMG) has risen 125% in a year and is probably not finished going up, not least because commodity prices have gone down while prices were raised.
Core Labs (CLB) refines oil and gas in the ground even before drilling. Carmer predicts a terrific quarter, but he would wait to buy it after it reports, since the stock tends to fall after earnings.
PPG Industrials (PPG) is immunized against Washington because of business overseas.
VFCorp (VFC) is constantly misunderstood, but Cramer expects excellent results, especially with the fall of cotton prices. The stock might get hammered, in which case, investors should buy it.
Schlumberger, as mentioned above, should be bought ahead of the quarter if Halliburton reports good news on Monday.
While Cramer urged viewers to stay away from banks and that JPMorgan's (JPM) good quarter was an exception rather than the rule, he would consider taking a look at regional banks like First Horizon (FHN). The company is one of the best at improving its structure and closing lower value branches. The stock is down 19% since January, even though the fundamentals are strong; it is simply a good house in a bad neighborhood. Bryan Jordan confessed frustration at the fact that the stock price has fallen, but says he is staying focused on the long-term. The company is benefiting from the improving economic situation in the Southeast and a 5% increase in consumer lending. Jordan says the company will be disciplined in its future acquisitions
"He's giving it all he's got," Cramer said of the CEO, but added that Washington is taking down the good banks along with the bad.
While analysts were bearish on Google (GOOG) going into its earnings, the stock shot up 68 points or 13% after its report. The company was too cheap before it reported, but is it still too cheap? In its last earnings call, the company was accused of losing its focus, of overspending. However, Google's investment in its company paid off with revenue rising 36% over 29% last quarter. This was accomplished even after Google raised salaries and hired new workers. Google is still the king of search and internet advertising with an 18% rise in the cost per click and a 12% increase in clicks. While it seemed like Google was late to the social media party, Google will likely be the search engine of choice for social media. Google Chrome already has 160 million users and GooglePlus has 10 million subscribers in only a few weeks. The stock trades at a low multiple of 12 compared to its 17.8% growth rate. If the multiple increases to 15, the stock could trade at $740, which is Cramer's new target for the stock.
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