Cramer's Mad Money - 3 Top Performing Stocks Of The Last 10 Years (9/7/11)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday September 7.

Top 3 Performers of the Last 10 Years: Deckers (NASDAQ:DECK), Hansen Natural (HANS), Netease (NASDAQ:NTES). Other stock mentioned: Baidu (NASDAQ:BIDU)

Cramer discussed the stocks that have risen the most in the last decade:

Deckers (DECK) is up 5,744% in the last ten years, and Cramer has been recommending this company since Mad Money began. The Ugg boots brand is still in style, and there is no direct competition. Deckers is an example of a company that can develop a brand that outlasts faddish alternatives. The company reported a great quarter, but the stock has not moved. Cramer would buy Deckers.

Hansen (HANS) has risen 17,143% in a decade thanks to its Monster energy drink, which is not a fad, but a mainstay for many. Hansen was one of the pioneers of the energy drink market, and is growing at a rapid rate, by 54%, internationally. The stock trades at a multiple of 23 with a 14% growth rate, and Cramer would wait for a pullback before buying.

Netease (NTES) has seen a 30,456% gain in a decade, and Cramer would not be a buyer, because he does not like Chinese stocks, except for Baidu (BIDU) and thinks the gaming sector is not so strong.

CEO David Demmers: Westport Innovations (NASDAQ:WPRT). Other stock mentioned: Royal Dutch Shell (NYSE:RDS.A)

Natural gas companies are not waiting for the government any more, but are taking matters into their own hands. Westport Innovations (WPRT), which converts traditional engines to those that run on natural gas announced a deal with Royal Dutch Shell (RDS.A) that could make liquified natural gas available at some of its filling stations by next year. While the first move will be made in Canada, the development proves that companies don't need subsidies from Washington to get started with the transition to natural gas. Westport's stock shot up 20% on the announcement, and Cramer would wait for a pullback to buy.

"We see this as the starting gun for the whole industry," David Demmers said of the deal with Shell. The fact that Shell is a major player and a "sincere" company will demonstrate that it is "time to go" to natural gas. Demmers expressed hope that the Natural Gas Act, which would give tax breaks to companies that switch their truck fleets to those that run on natural gas, will be passed.

Yahoo (NASDAQ:YHOO), Bank of America (NYSE:BAC), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG)

Boards of Directors should get upset from time to time and do their jobs by booting an ineffective CEO. Cramer applauded the moves by Bank of Amerca (BAC) and Yahoo (YHOO) to get rid of their ineffective CEOs, Brian Moynihan and Carol Bartz respectively. Bank of America had become a "supermarket of finance" and was too sprawling to manage efficiently. Bank of America's worst problems involve mortgages, regulatory issues and the toxic portfolio of Countrywide, "the single worst acquisition in history," Cramer said. It is unlikely that a CEO can turn Bank of America around any time soon, but a new CEO is an improvement.

Yahoo's problems can be more easily solved, unlike those faced by BAC, but the new Yahoo CEO has a lot of work to do. Yahoo missed the three major trends in tech: mobile, cloud and social media, is not keeping up with Google (GOOG) and is losing its relevance. Cramer thinks Yahoo should be bought, broken up or merged, but he would not speculate on a Yahoo takeover. Instead, Cramer would buy Apple (AAPL) or Google.


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