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 250,000 people watch his show daily on TV and most of these are ordinary investors trying to understand what’s going on in the market. Cramer’s bullish and bearish stock picks on his show is the starting point for many investments made by these folks.
During the August 2 show, Cramer discussed the following:
Alkermes (ALKS): Richard Pops, Chairman and CEO of Alkermes, was a guest. Cramer says that since the company is pretty much the only non-binary mid-cap biotech out there, if something doesn't go right, the company won't go to zero. Cramer points to a diabetes drug manufactured by the company that looks promising. He says the approval process in Europe is ongoing but seems encouraging.
These got hurt today, that last one's down four points. A lot of people continue to underestimate these companies, which is what's occurring obviously when you have a stock fly up seven points on a day like today. What makes it so hard for people to understand that we have a huge amount of energy trapped beneath our ground, ready for the drilling? I blame it on perception, the perception that it takes years between the time that we start drilling and the moment when we finally find oil. I think there's a belief that anyone who even mentions the idea of breaking the back of OPEC is regarded as a dreamer.
Of Deckers Outdoor (DECK) and Crocs (CROX), Cramer said, "Deckers and Crocs are good and it’s because they're international. And, they don't stop wearing shoes because the market's bad." Cramer also thinks Deckers falls into the category of stocks that tend to bounce back after they've been hit.
These were all pummeled today. Of course, they always get hit hardest on down days. But they have a tendency to bounce back furiously. And, then finally, something highly speculative. I still condone Apple (AAPL), Chipotle, Netflix even, Amazon (AMZN).
CMG and NFLX have been among Cramer’s favorite high growth stocks for a while now.
Cramer says Clean Harbors (CLH) can be a solution to the EPA problems:
You think that if they bring in Clean Harbors, you can buy it. Now, Clean Harbors, like many of these stocks is rolling over. That means you give it a wide berth. You buy a quarter tomorrow, and then you wait for another level. Then you buy a quarter after that. That's called buying down on a scale. That's what I emphasize in getting back to even and real money. Buying down on scale is the only safe way to get involved in stocks, other than doing deep in the money calls.
Of Eaton (ETN), he said:
I like a solid industrial stock. One that pays a good dividend and is rapidly approaching a great, accidentally high dividend as the stock goes down. Consider this, Eaton. Okay? They reported -- not like the E of Emerson where the guy was like really complaining. I'm talking about Eaton. No complaining there. They reported a magnificent quarter, it has it has plummeted endlessly since then. How about PPG? Another excellent Industrial reported terrific quarter. Both yield about three. Buy them on the way down as their yields grow larger.
Mosaic (MOS): Cramer likes the technicals on Mosaic. Dan Loeb, one of the most successful hedge fund managers in 2010 and 2011, recently bought MOS at around $65 per share. The stock price was depressed because a Cargill family was trying to sell their stake in the company.
Philip Morris (PM) and Lorillard (LO): A viewer asked about Lorillard and its high dividend yield. Cramer says he likes growth in yield, which is why he prefers PM to LO. Michael Lowenstein’s Kensico which outperformed the market recently has a large stake in PM as well.
PPG Industries (PPG): Cramer thinks PPG has been able to consistently raise price to offset most of the higher commodity costs. He says it's exactly the kind of company that can transcend the global macroeconomic problem. He thinks the recent selloff makes buying the stock a real bargain. He points to the company's recent excellent quarter and $2.12 earnings.
A very weak April courtesy of bad weather. Sales have rebounded nicely since the April bottom. PPG's really firing on all cylinders here. Performance coatings business is up 11%. Industrial coatings, 14%. Architectural coatings, think paint, up 22%. Optical special material up 8%. And, commodity capital's up a staggering 31%, mostly thanks to higher prices, and glass up 17%. PPG is a best of breed name with incredible pricing power that people just want to throw away today because they don't want to look at any stocks. But I think if anyone can ride out this lousy environment, it's them. The stock has given you an 80% gain since I got behind it in June of 2009. It was only $45.45 then. Recent pullback, I think maybe we've got to start thinking it's a buy.
SM Energy (SM): Cramer says SM is "another one of these companies with a market cap that's now simply out of whack and out of touch with the amount of oil it's sitting on in Eagle Ford." He says SM is one of those companies that are becoming cheaper by the hour, because they have more in reserve than thought.
Hey, come on technology has allowed us to drill and hit pretty much very, very fast and, we now definitely have enough oil and gas to dent demand to the point here OPEC would have to cut its prices. When I see results like the ones we got from SM, I say we aren't dreaming about finding loads of oil or busting OPEC. The possibility’s here, we gotta have the will though. That's why the stock was amongst today's biggest gainers and, they deserved every penny. And, that's why if it cools off, SM is still a buy.
SPDR Gold Shares (GLD): Cramer admits he's a broken record on gold. He points to the fact that gold keeps breaking records, and says the trend isn't stopping. He said gold "represents only 1.5% of all portfolios in the world right now versus 5% historically. We’ve got a long road ahead of us."
Vodafone Group (VOD): Cramer says it's good to be in something international. He said foreign offsets this country's "craziness". He says Vodafone yields over 7%, and that's a winner. Vodafone is one of the largest positions in David Einhorn’s portfolio. Einhorn thinks the stock will increase when it starts receiving regular dividends from its 45% stake in Verizon Wireless (VZ).