During the September 6 show, Jim Cramer discussed the following stocks.
Dana Holdings (DAN): This auto parts maker is proof that while companies in tough markets can get hammered, they can be cyclical smoke stacks that are poised to rebound if the fundamentals are solid. Dana Holdings has a $1.8 billion market cap. TRW Automotive Holdings (TRW) and Tenneco (TEN) are two similar companies Cramer thinks share the same sentiment. This stock increased around 1500% since March 2009.
Jazz Pharmaceuticals (JAZZ) is a specialty company that has pricing power because there’s not a lot of competition in the narcolepsy market. Cramer said companies like these represent the benefits of having speculative plays in the portfolio. Cramer also likes BioMarin Pharmaceuticals (BMRN), Alexion Pharmaceuticals (ALXN) and Pharmasset (VRUS) as bio-tech plays because their pricing power stems from virtual monopolies in treating certain orphan diseases.
Pier One (PIR): This home décor company is up 7,000% from its 2009 low, as it executed big improvement plans that generated tremendous gains for shareholders. Cramer said the company has restructured its brand for the past four years and still has room to grow.
Dollar Thrifty (DTG): The stock of this rental car company rose 8,326% from its 2009 low. Cramer thinks the rental car market overall is doing well, as industry consolidation has left four major companies. Cramer likes Avis Budget Group (CAR) and Zipcar (ZIP), a new short-term rental concept that had a stellar IPO and delivered a strong quarter.
Priceline (PCLN): One of the best performing stocks of the past five years, this travel deals company has seen its stock price rise 1,400%. Priceline has a $26.8 billion market cap and trades at 38 times earnings. George Soros of Soros Fund Management has all but emptied his position in the stock.
Questcor Pharmaceuticals (QCOR): This orphan drug company produces an expensive multiple sclerosis drug that many insurance companies pay for because it is deemed a necessity. Cramer likes these small drug companies that treat rare diseases. The stock has risen 1,576% over the past five years.
Baidu (BIDU): China’s version of Google (GOOG) is the only Chinese stock Cramer will recommend because the government essentially blessed the company by forcing Google out of the picture (by forcing GOOG to comply with local laws or leave). The stock has a $50 billion market cap and trades at 45 times earnings.
Green Mountain Coffee Roasters (GMCR): The maker of the popular Keurig single-cup machine has seen its stock rise 3,500% during the past five years. Cramer credits the success of Green Mountain and SodaStream (SODA) to creating machines that make consumers’ lives simple. Green Mountain reported a great quarter and still has room to run as it expands into more countries.
Enterprise Products Partners (EPD): This perennial favorite of Cramer’s has a 5.8% yield and $36 billion market cap. The company announced plans to extract more natural gas and transport it to the south.
Clearwire (CLWR): Although the stock price is temptingly low, Cramer told a viewer not to own it; even upon speculation that Sprint Nextel (S) could be purchasing it. Cramer sees it as a lose-lose for both companies.
Las Vegas Sands (LVS): Cramer thinks it is a good stock and expects it to shoot up if gas prices go lower. However, Cramer still recommends Wynn (WYNN). Las Vegas Sands has a $34.5 billion market cap and trades at 36 times earnings.
Skyworks Solutions (SWKS): Cramer likes this wireless chip maker, but recommends waiting until the tough season for tech ends and the stock bottoms before pulling the trigger and buying the stock. The stock currently trades at 17.5 times earnings with a $3.75 billion market cap.
Sandridge Energy (SD): This Oklahoma-based natural gas and oil company reported a bad quarter and while Cramer would like to stick with the company, he expressed concern and recommended going forward with caution until more information emerges.
General Motors (GM): Cramer advised viewers to lay low on this stock because of the slowdown in Chinese sales. The kicker in GM’s story was China, so these declines raise concerns. Bill Miller of Legg Mason Capital Management owns over 2 million shares of General Motors.
Caribou Coffee (CBOU): Cramer thinks Caribou is a good stock, but Starbucks (SBUX) is better because Dunkin’ Brands (DNKN) is too expensive. Caribou has a $325 million market cap and trades at 8.5 times earnings.
Vector Group (VGR): Cramer does not like this tobacco company and prefers Philip Morris (PM). Vector Group has a $1.45 billion market cap and yields 8.5%.
El Paso Pipeline Partners (EPB): Cramer recommends owning this “terrific stock” that yields over 5%. The pipeline company has a $7.5 billion market cap and trades at 18 times earnings. Cramer likes these pipeline companies because of their reduced exposure to oil prices.
FedEx (FDX): Being down 20% from its 52-week high, a viewer wanted to know how FedEx might perform as a short-term growth play for the holiday season. Cramer likes FedEx, but prefers United Parcel (UPS), which his charitable trust owns. because it is trading very close to its 52-week low and offers 3.25% yield protection.
Salesforce.com (CRM): Cramer continues to recommend owning Salesforce.com through deep-in-the-money calls to protect from downside, as CRM is a volatile stock. Salesforce.com has a $16.4 billion market cap and trades at 635 times earnings. Louis Navellier of Navellier & Associates has 2.7% of his portfolio in Salesforce.com.
Disclosure: I am long PM.