Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of Mad Money and also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV and most of these are ordinary investors trying to understand what’s going on in the market. Jim Cramer’s bullish and bearish stock picks on his show is the starting point for many investments made by these folks.
During the July 18th show, Cramer discussed the following stocks.
Apple (AAPL) and IBM (IBM): Apple and IBM reported spectacular earnings yesterday. Nevertheless Cramer doesn’t want to recommend any tech stocks during the seasonally weak summer months. Cramer said that during the past 10 years’ tech stocks (and semiconductor stocks) underperformed the rest of the market consistently in summer.
Baidu (BIDU): Cramer took a phone call on BIDU and he said this is the only Chinese stocks he would recommend. Ken Fisher and Andreas Halvorsen have the two largest positions in BIDU among the 300+ hedge funds we are tracking.
William Sonoma (WSM) and Pier 1 Imports (PIR): Cramer compared consumer discretionary stocks WSM and PIR in his show. He wanted to show readers how hedge funds occasionally pick stocks. Cramer likes both of these stocks but thinks WSM is a better pick because of its huge online retailing presence. WSM gets around 34% of its business through the internet whereas PIR plans to make significant investments to build an online business next year. Chuck Royce has the largest holdings in WSM among the 300+ funds we are tracking (See Chuck Royce’s bullish stock picks here).
Advance America, Cash Advance Centers (AEA): Cramer discussed AEA in his lightning round and gave a buy recommendation.
Interdigital Inc. (IDCC): Cramer doesn’t like this digital wireless technology company. He recommended to take profits if you have any. Cliff Asness’ AQR and Douglas Spiegel’s Realm Partners had IDCC in their portfolios at the end of March.
International Paper Company (IP): A viewer asked about IP in the lightning round. Cramer said IP wants to acquire Temple-Inland (TIN) but the company is resisting. He is worried that IP might have to overpay to acquire TIN. However, he likes International Paper’s CEO John Faraci and that’s why he recommended the stock.
PNC Financial Services (PNC) Cramer doesn’t hide the fact that he is upset over Bank of America’s (BAC) recent performance and he doesn’t like the bank stocks in general. However, he has both BAC and PNC in his charitable trust’s portfolio. He is more bullish on PNC Financial. Ken Fisher’s Fisher Asset Management, Ken Griffin’s Citadel and Ric Dillon’s Diamond Hill are among the prominent investors that are bullish about PNC (Check out Ken Fisher’s favorite stock picks).
Cypress Sharpridge (CYS): A viewer asked what he thinks about this high yield stock. Cramer said it is too risky and recommended to go with dividend growth stocks such as Enterprise Product Partners (EPD) and Kinder Morgan Energy Partners (KMP).
Aflac (AFL): This is another stock he discusses in his lightning round. AFL derives a significant portion of its business from Japan and Cramer doesn't like Aflac’s insurance portfolio. He is bearish about the company. Bill Miller and Ken Heebner are famous mutual fund managers who are bullish about AFL (See Bill Miller’s top stock picks).
UGI Corporation (UGI) Cramer likes UGI and thinks that it is very well run. Even though the stock gained a lot recently, he still recommends it.
Peabody Energy (BTU): Cramer interviewed Peabody’s CEO on his show. He is particularly bullish about coal despite environmentalists’ effort to tax this cheap source of energy. He said China produces 80% of its electricity from coal powered plants. He believes the demand for coal is going up and he thinks BTU is an inexpensive stock with potential to make a lot of money. The largest BTU stock holder is Ken Heebner’s Capital Growth Management and billionaire Jim Simon’s Renaissance are among the BTU investors (Check out Jim Simons’ top picks.)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.