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 are a starting point for many investments made by these folks.
During the August 11th show, Cramer discussed the following stocks.
Cisco Systems (CSCO): Cramer said Cisco had great earnings after a year of bad ones. Bill Miller at Legg Mason Capital Management increased an already significant position in the stock. (See more of Miller’s holdings here).
AOL (AOL): A viewer mentioned that he bought AOL when it dropped, knowing that it would eventually rebound. Cramer applauded the move, as well as AOL’s CEO. However, Cramer said he would prefer to see new revenue growth in lieu of a stock buyback.
Nvidia (NVDA): Although a viewer referenced that Fast Money (a market analysis show that airs on CNBC immediately before Cramer’s Mad Money) mentioned Nvidia may be a takeover target, Cramer dismissed its better-than-expected quarter and gave a sell recommendation. He sees it as “too tough of a stock in too tough of a market”. William Harnisch of Peconic Partners LLC holds a large position in Nvidia. (See more of William Harnisch’s picks here).
Sanofi-Aventis (SNY): This France-based pharmaceutical company received a buy recommendation from Cramer for a number of reasons. For starters, it is among the big pharma companies that yield 5% (primarily due to the stock prices pushed lower), but is trading at a low 6.8 times earnings.
Of the major pharmaceutical companies, Sanofi has the lowest exposure to Medicare as a percentage of next year’s sales and has the highest exposure to emerging markets (representing 30% of sales). It has a leading position in the vaccine space and recently acquired Genzyme in May, which specializes in medicines that treat rare diseases, which subsequently gives it pricing power.
EOG Resources (EOG): Cramer stated that EOG Resources is the most underrated stock in the oil market. This market is giving EOG too little recognition for the company’s assets (considering BHP Billiton’s (BHP) willingness to purchase Petrohawk (HK) for 12.1B) and is providing a chance to own one of Cramer’s “absolute favorite stocks”.
“EOG earned $1.11 per share, beating estimates by $0.32 cents per share. The company doesn’t need high crude prices to maintain earnings, as they have ample new production,” Cramer said.
Royal Dutch Shell (RDS.A): Cramer rates this oil company as a “solid buy” as reserve issues are behind it and the stock price has come down way too much.
Pengrowth Energy (PGH): As an 8% yielder in a solid oil market, Cramer marked this energy company a “horse-sense buy”.
NiSource (NI): Cramer advised a viewer to buy what he considered to be a great utility company and reinvest the dividend in order to make a “ton of money.” John Levin of Levin Capital Strategies increased his holdings in the stock. (See more of Levin’s picks).
Goodrich Petroleum (GDP): When asked about this energy stock, Cramer mentioned that it’s a bit speculative for his taste. However, he likes it because it has a good position in the major oil shale fields.
WisdomTree Investments (WETF): Cramer favors this company because it allows individual investors to get into markets that they wouldn’t ordinarily be able to get into and they do it in a cost-effective manner.
Sprint Nextel (S): Cramer expressed admiration for CEO Dan Hesse, but advises retail investors to stay away from the stock. It had a bad last quarter and is struggling to maintain position in a competitive cellular communications market. David Einhorn had a large position in S at the end of first quarter.
Hyperdynamics Corporation (HDY): Cramer makes it clear that there are other energy companies he prefers, but will bless it if you desire a position in oil.
Equity One (EQY): A shopping-center ETF just experienced a $5.5 million dollar share purchase from the firm’s chairman. Cramer doesn‘t feel it‘s close to Federal Realty Investment Trust (FRT), though it is a good risk-reward stock.
Dominion Resources (D): The electricity generation and transportation company is yielding 4% and has considerable exposure to well-performing shales, including Marcellus.
NuStar Energy (NS): Cramer recommends this energy company, which entered into a joint venture with his beloved EOG Resources and whose management purchased $700,000 dollars worth of shares on August 9.
Windstream (WIN): While Windstream’s competitors Fronteir Communications (FTR) and Century Link (CTL) have had their fair share of issues, Cramer said that the chairman bought $111,000 dollars worth of stock. He’s confident he wouldn’t have done so if WIN was going the way of its competitors.
Honeywell (HON): Management snapped up $99,000 dollars worth of stock and reported insider buys totaled more than $375,000 dollars. Ken Fisher at Fisher Asset Management likes Honeywell stock too.