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The dollar was at its 6-month high Tuesday, and gold is giving signals of a massive collapse. Moreover, the eurozone is storming with the speculations of a Greek bankruptcy. So, what are investors going to do in this environment ? In September 12th’s Lightning Round program Cramer made so many calls that I had to divide my article in two. He made thirteen calls this time-- nine bullish and three bearish calls. In this article, I have investigated the first eight of these stocks from a fundamental perspective. I have applied my O-Metrix Grading System where possible. Here is a fundamental analysis of these stocks from Cramer's Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

Calumet Specialty

CLMT

-

N/A

Avoid

Cognex Corp.

CGNX

Buy

4.78

Buy

Microsoft

MSFT

Avoid

7.62

Long-term Buy

Tesla Motors

TSLA

Sell

N/A

Sell

ArcelorMittal

MT

Buy

4.04

Risky Buy

Aurizon Mines

AZK

Avoid

N/A

Avoid

Goldcorp Inc.

GG

Buy

2.64

Hold

Randgold

GOLD

Buy

N/A

Avoid

Cramer wants to do some research on Calumet Specialty (NASDAQ:CLMT) before making a call. It has a P/E ratio of 23.4, and a forward P/E ratio of 11.5, as of the September 12 close. Profit margin (1.1%) is way lower than the industry average of 4.1%, while it offered an outstanding dividend of 11.61% last year.

Earnings decreased by 647.77% this quarter, and 75.25% this year. Insiders own only 1.65% of the stock, and it is trading 27.24% lower than its 52-week high. Target price is $20.50, which implies 20.1% upside potential. Calumet returned -10.2% in a year. Debt-to assets ratio is unstable. Operating margin (3.3%) and profit margin are strong red flags. SMA50 and SMA200 are -18.02% and -18.35%, respectively. Gross margin is 8.5%, and ROA is 2.42%. Just get rid of this stock.

Cramer has always liked Cognex (NASDAQ:CGNX), and he likes tech going into Q4. Cognex shows a trailing P/E ratio of 16.9, and a forward P/E ratio of 15.6, as of September 12. Analysts expect the company to have a 14.3% annual EPS growth in the next 5 years, which sounds reasonable given the 15.38% EPS growth in the past five years. Profit margin (22.2%) more than doubles the industry average of 11.0%, and it paid a 1.26% dividend in 2010.

The O-Metrix score of the company is 4.78, whereas it is trading 23.79% lower than its 52-week high. The target price implies an about 41.6% increase potential, and it returned 28.2% in the last twelve months. It had a magnificent EPS growth of 1340.71% this year, and 18.92% this quarter. Cognex has zero debts since 2006, and institutions hold 86.50% of the shares. Operating margin (27.3%), profit margin, and debt-to equity ratio (0.0) are solid green flags. Cognex has had good momentum since the great recession in March 2009. This stock is worth a look.

Cramer got on the bearish side for Microsoft (NASDAQ:MSFT) this time, recommending investors avoid this stock for now. The tech titan was trading at a P/E ratio of 9.6, and a forward P/E ratio of 8.2 as of September 12. Estimated annual EPS growth for the next five years is 11.1%. It paid a 2.47% dividend last year, while the profit margin was 33.1%.

Microsoft returned 3.1% in the last twelve months, whereas it has a remarkable O-Metrix score of 7.62. Debt-to assets ratio is nearly stable for the last four quarters. Debt-to equity ratio is 0.2, far better than the industry average of 10.7. Gross margin and profit margin are 77.7% and 38.8%, respectively. While ROE is 44.84%, ROA is 23.77%. Operating margin, profit margin, and ROE are moderate green flags. Moreover, it has a four-star rating from Morningstar. Microsoft should be considered a long-term play. Read a full analysis of Microsoft here.

Cramer is bearish on Tesla Motors (NASDAQ:TSLA), and he suggests selling if you own it. The California-based Tesla has a P/E ratio of -11.2, and a forward P/E ratio of -13.2, as of the September 12 close. Five-year annualized EPS growth forecast is 20.0%. Tesla pays no dividend yield.

It is currently trading 37.18% lower than its 52-week high, and insiders own only 0.24% of the stock. Operating margin is -111.9%. ROA and ROE are -48.89% and -176.60%, respectively. P/B is 6.8, and P/S is 12.5, both of which are alarming red flags. The debt-to assets ratio is completely unstable. SMA20, SMA50, and SMA200 are -4.90%, -12.58% and -13.73%, respectively. Moreover, Tesla is relatively volatile. Long-term EPS growth estimation is beyond Tesla’s reach under these circumstances. I don’t think that buying or holding Tesla would be wise.

Jim believes that ArcelorMittal (NYSE:MT) is an advantageous buy at this price. The steel company was trading at a P/E ratio of 8.8, and a forward P/E ratio of 5.2, as of September 12. Analysts estimate a 2.0% annualized EPS growth for the next five years. Profit margin (3.6%) is slightly lower than the industry average of 4.7%, while it paid an acceptable dividend of 3.66% last year.

Earnings increased by 1270.87% this year, and 38.87% this quarter. ArcemorMittal has an O-Metrix score of 4.04, while it returned -47.1% in a year. Debt-to assets ratio is going down for the last three years. The debt-to equity ratio is 0.4, way better than the industry average of 2.7. P/B (0.4) and P/S (0.3) are moderate green flags. Target price implies a 132% upside movement potential, whereas it is currently trading 54.27% lower than its 52-week high. 15 out of 34 analysts recommend buying, and 6 suggests outperform. Moreover, the stock has a five-star rating from Morningstar. I believe the current price has created an opportune entry point. However, this stock should be dealt with caution.

Gold is going down as I have predicted before, but Cramer recommends Goldcorp (NYSE:GG) and Randgold (NASDAQ:GOLD) instead of Aurizon Mines (AZK). Here is a brief comparison of these three stocks:

Current as of Sep.12 close.

Aurizon Mines

Goldcorp

Randgold

P/E ratio

62.1

23.3

48.1

Forward P/E ratio

16.0

17.4

15.8

Estimated EPS growth for the next 5 years

-

10.0%

-

Dividend yield

-

0.77%

0.17%

Profit margin

8.9%

40.5%

26.2%

Gross margin

58.9%

54.5%

32.2%

Upside movement potential

22.1%

25.2%

1.9%

I eliminate Aurizon at first, as it has the highest P/E ratio and volatility among all. Goldcorp is trading 5.71% lower than its 52-week high, while Randgold is trading 3.93% lower. Goldcorp returned 26.0% in the last twelve months, whereas Randgold returned 16.3%. Both of them have almost zero debts for the last four years. Analysts give a 2.00 rating for Goldcorp and a 2.20 rating for Randgold (1=Buy, 5=Sell). None of these three fit my criteria. Also, note that these stocks are highly dependable on gold prices, and south is the only direction gold is going for a while-- and will keep going. However, holding Goldcorp is OK, in my opinion. Read a full analysis of Goldcorp here.

Disclosure: I am long MSFT.

Continue to Part II >>

Source: 9 Buy And 3 Sell Ideas By Jim Cramer, Part I