Cramer's Mad Money - 12 Earnings Reports To Watch (9/16/11)

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 |  Includes: AAPL, ADBE, ASNA, AZO, BBBY, CAG, CCL, CLMT, CRM, DMND, FDX, GIS, GLW, KBH, KO, LEN, NKE, ORCL, PEP, RHT, SAN
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday September 16.

12 Earnings Reports to Watch: Lennar (NYSE:LEN), AutoZone (NYSE:AZO), Carnival Corporation (NYSE:CCL), ConAgra (NYSE:CAG), Adobe (NASDAQ:ADBE), Oracle (NYSE:ORCL), General Mills (NYSE:GIS), Bed Bath & Beyond (NASDAQ:BBBY), Red Hat (NYSE:RHT), FedEx (NYSE:FDX), Nike (NYSE:NKE), KB Home (NYSE:KBH). Other stocks mentioned: Apple (NASDAQ:AAPL), Salesforce.com (NYSE:CRM), Ralcorp (RAH)

Cramer discussed earnings reports to watch in the coming week:

Monday:

Lennar (LEN) reports and should indicate when housing will bottom. Recently, the homebuilders have hit a point where they are so cheap that they may be worth buying. The numbers from Lennar are likely to be "just okay," but Cramer urged viewers to pay attention to the commentary.

Tuesday:

AutoZone (AZO) has just made a big buyback and should have terrific earnings. Cramer would buy the stock with deep in the money calls before Tuesday. While he has been critical of many buyback initiatives, AutoZone is doing everything right.

Carnival Cruise (CCL) is a stock analysts have been critical of, but he would give the call a listen, because the company is a strong tell on Europe.

ConAgra (CAG) should say something about the Ralcorp (RAH) bid. Cramer wants to hear why the deal is off the table.

Adobe (ADBE) is in the crosshairs of Apple (AAPL), and the question is if Adobe is being left behind.

Oracle (ORCL) is a low-risk tech, and reported a disappointing quarter last time on weakness in hardware. This weakness must be reversed or the stock is going to get whacked. If Oracle says anything respectable, the stock should go higher.

Wednesday:

General Mills (GIS) is a safety stock, but are these stocks really safe? With cyclicals heading up, defensives might get left behind. Cramer thinks the upside in this stock is limited.

Bed Bath and Beyond (BBBY) should report strong back-to-school sales, but it is at its 52 week high, and Cramer is wary of any stock that runs higher into its earnings report.

Red Hat (RHT) is a cloud play and a "constant overachiever." If Red Hat's results are strong, Cramer would buy Salesforce.com (CRM).

Thursday:

FedEx (FDX): after a slew of downgrades, the risk has been taken out of this stock. Cramer likes FDX as a contrarian play and might consider buying it Wednesday or Thursday.

Nike (NKE) should report that business is strong, but it might run up prior to the quarter. It may be a buy if it gets hit after its earnings report.

Friday:

KB Home (KBH) has been a drag, but Cramer expects management to say things are fine.

CEO Interview: David Jaffe, Ascena Retail Group (NASDAQ:ASNA)

Retail is on fire, but not all retail stocks have made the move up. Ascena (ASNA), formerly Dress Barn, and creator of Justice and Maurice brands, reported a solid in-line quarter. The stock has been knocked down, and Cramer thinks it may be cheap, selling at a low multiple of 10.

David Jaffe discussed the success of Maurice, which saw a 10% increase in sales comps. Justice is also performing well, especially during the back-to-school season. Dress Barn is facing challenges, and Jaffe ascribed this to the fact that mothers, who fit the Dress Barn demographic, are scrimping and saving to spend money on clothes for their daughters, who shop at Justice. The company is striving to improve distribution allocation, merchandising structure and incremental promotions for Dress Barn. When asked about acquisitions, Jaffe responded that the company is investing money to improve its infrastructure before buying new assets. With lower raw costs with the decline of cotton prices, Jaffe expects more success for the company. Cramer likes Ascena because of its low price and low risk.

CEO Interview: Michael Mendes, Diamond Foods (NASDAQ:DMND). Other stock mentioned: Pepsico (NYSE:PEP)

Diamond Foods (DMND) has been a Mad Money favorite for some time, and with its recent acquisition of the Pringles brand, it is now the second largest snack food company in the U.S., just behind Pepsico (PEP). Diamond is known for its wide selection of nuts, PopSecret popcorn and Kettle chips. The company reported a "complete and utter knockout quarter," and the stock rose 11.6% following earnings. The company beat earnings estimates by 8 cents, and revenue rose 32%. Is Diamond still cheap enough to buy? It sells at a high multiple of 27, but Cramer thinks it might still be a buy, given its 14% growth rate. However, he cautioned, "We don't want to be greedy."

Diamond Foods uses advertising to its advantage, especially television commercials, as a way of promoting and building brand equity. The company is increasing its spending on advertising by 20%. When asked if he is worried about increased competition from Pepsico, Mendes replied that as long as Diamond concentrates on bringing value to customers, there is nothing to worry about from the competition. While the stock has jumped, Cramer pointed out that Diamond is worth much more than its $2 billion market cap.

Mad Mail: Calumet Specialty Products Partners (NASDAQ:CLMT), Coke (NYSE:KO), Banco Santander (STD), Corning (NYSE:GLW)

Cramer answered viewers' questions about stocks:

Calumet (CLMT) is a rare type of MLP that deals with refining, which is not the kind of steady cash flow business usually associated with MLPs. The company yields 11%, but it has cut that dividend in the past, and has a spotty track record. The company announced a secondary offering last week to fund an acquisition, but Cramer thinks the company is too volatile to count on, with its lackluster growth, unsteady cash flow and hard to maintain dividend. He would stay away.

Pepsi is close to a 52 week low and Coke (KO) is close to a 52 week high. How to account for this difference? Cramer thinks Pepsi has seen a drop on a phony rumor that it is going to spin off its Frito Lay business. This would not be a good move, and Cramer doubts this is on the cards. Pepsi currently yields 3.3%, and Cramer noted that whenever Pepsi's dividend goes above 3% it has been a strong buy.

Banco Santander (STD) might seem like a buy on Treasury Secretary Tim Geithner's confidence that European banks will not fail, but Cramer noted that if Geithner is right, these banks will have to raise capital and cut their dividends. He would sell all European banks.

Corning (GLW) is a buy because insiders are buying and he trusts the company's CFO.

When a caller asked about buying inverse ETFs, Cramer's response was that investors who don't like the current market should sell stocks and raise cash; inverse ETFs are "nonsense."

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