Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday July 29.
Game Plan: FMC Corporation (FMC), Herbalife (HLF), Duke Energy (DUK), Peet's Coffee and Tea (PEET), Allergan (AGN), Clean Harbors (CLH), Energy Transfer Partners (ETP), Pioneer Natural Resources (PXD), TreeHouse Foods (THS), LinkedIn (LNKD), Copano Energy (CPNO), Enbridge (EEP), Windstream (WIN). Other stocks mentioned: Starbucks (SBUX), Green Mountain Coffee Roasters (GMCR), Celgene (CELG), Strayer Education (STRA), Perrigo (PRGO)
Cramer discussed earnings reports to watch in the coming week:
FMC (FMC): This chemical company has been able to raise prices and is a buy in a tough market. "It has one of the best earnings profiles of any company," said Cramer. The stock is a buy if it gets hammered.
Herbalife (HLF) is a play on emerging markets. The company has been growing fast, and Cramer would wait to see the earnings report before buying.
Duke Energy (DUK) has a strong yield and should be bought on any decline.
Peet's Coffee and Tea (PEET) is expanding into packaging rather than growing its store count, does not have a partnership with Green Mountain Coffee (GMCR) and is an underperformer in the coffee bull market. Cramer added that Starbuck's (SBUX) recent conference call is among the best he's heard.
Clean Harbors (CLH) is a derivative play on the strength of domestic oil and gas. This company finds ways to drill without harming the environment and has delivered consistently.
Energy Transfer Partners (ETP) is "the definition of calm" with its 7.6% dividend.
Pioneer Natural Resources (PXD) could be a takeover target and investors should pray that it gets hammered so they can buy.
LinkedIn (LNKD) may deliver a good quarter, but investors have been too greedy with this stock. Cramer would ring the register to avoid giving back any gains.
Copano (CPNO) has a 7% yield and is one of the hottest plays on oil and gas shales. There is a chance it might get a takeover bid, and the dividend is very safe.
Enbridge (EEP) is a buy if it goes down before the quarter; "This is the best growth pipeline story in the world" with a 3.2% yield.
Windstream (WIN) has a generous 8.2%, and is the only high-yielding telco company to consistently make its quarter.
Cramer took a call:
Strayer (STRA) is not a safe stock because it needs the government to guarantee loans, and with budget talks, it could be vulnerable to cuts.
CEO Interview: Sally Smith, Buffalo Wild Wings (BWLD)
What is the best way to play the end of the NFL lockout? Cramer would buy Buffalo Wild Wings (BWLD) which has been knocked down on a 3 cent earnings miss because of stock compensation and not operational issues. Revenues were up a better-than-expected 26% and same store sales increased 5%. The company plans to grow its store count by 13%, building 100 new locations. Currently, BWLD could double its store count before it even comes close to saturation. BWLD's shares have risen 19% since Cramer got behind the stock last February, trades at a multiple of 20 with a 21% growth rate. This company is worth more than its $1.1 billion market cap, especially with its growth prospects domestically and abroad.
CEO Sally Smith said, "Our concept does travel well;" the company opened its first international locations, four stores in Toronto, and is looking to expand into England and Latin America. BWLD has benefited from the drop in raw costs, with the price of chicken wings coming down as much as 30% from historical highs last year. BWLD is focusing on the beer experience with more taps that serve regional and craft beers. Analysts were concerned about the company's training costs and if it is growing too fast. Smith said store expansion is actually slightly less than it was last year. The company has been able to take advantage of low real estate prices on the West Coast, particularly California. "We spend more on training to make sure we are growing right," and the spending pays off, since unit volumes are growing.
Cramer reiterated his remarks that BWLD is a great regional to national growth story and it is "just on the ground floor" with a great concept.
CEO Interview: Gale Klappa, Wisconsin Energy (WEC)
Wisconsin Energy (WEC) is one of the most forward looking utility companies, since it is investing $2 billion in expanding its renewable energy facilities, and is one of the few utilities to successfully build a clean coal plant. The stock yields 3.8%, has 8 years of consistent dividend growth, and plans to raise its dividend by 8-9% per year. The company reported a 4 cent earnings beat with revenues up 11.3%.
Gale Klappa discussed the goal of making the company 10% levered to renewable energy by 2015 through building the largest wind farm in Wisconsin. The company is also developing clean coal technologies that remove most of the pollutants from the fuel. Demand continues to grow and Cramer calls Wisconsin Energy "Best in Class."
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