Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program Friday October 28.
15 Things to Watch in the Coming Week: Anadarko Petroleum (APC), Herbalife (HLF), Emerson (EMR), Hain Celestial (HAIN), EOG Resources (EOG), Clean Harbors (CLH), Clorox (CLX), Continental Resources (CLR), Qualcomm (QCOM), Apache (APA), Chesapeake (CHK), Skyworks Solutions (SWKS), Windstream (WIN), Groupon (GRPN) other stocks mentioned: Avon (AVP), Whirlpool (WHR), Green Mountain Coffee (GMCR)
With the Dow up just 23 points on Friday, providing a respite from a record October, the focus for the coming week should be off of Europe for the time being and onto news from U.S. companies. Cramer would wait for a pullback in most stocks before buying, but on any decline he would concentrate on major themes like oil and gas, high dividend stocks, and companies that benefit from the decline in raw costs.
Cramer would keep an eye on the following earnings and Friday's IPO:
Anadarko Petroleum (APC) one of the fastest growing oil companies. It has a game-changing find in Africa. The problems of their oil spill are behind them.
Emerson (EMR) is a great play on non-residential construction, and the company will most likely say that orders are picking up.
Hain Celestial (HAIN) was the target of an unfair downgrade and should report a strong quarter, especially with the rapid growth of its Greek yogurt product.
EOG Resources (EOG): "If you buy this stock for its Eagle Ford assets, you get the Bakken for free...that is how cheap it is," Cramer said, wondering why it hasn't yet received a takeover bid.
Clean Harbors (CLH) has "the good drilling seal of approval," in spite of worries about natural gas fracking. It might be worth buying before its earnings report, since the stock is down so much.
Clorox (CLX) is a strong company with little risk. Cramer thinks if it declines from $66 to $63 or $64, it is worth buying hand over fist.
Clean Harbors (CLH) good drilling seal of approval, huge quarter worth buying while its still trading at the low end.
Continental Resources (CLR) is "the best of the Bakken." The company had problems with weather, but Cramer thinks it will report another blowout quarter.
Qualcomm (QCOM) has a handle on 4G, and should report an upside surprise.
Apache (APA) "the fastest growing international oil company on Earth".
Chesapeake (CHK) is the most successful company at restructuring its natural gas assets. As the company becomes less "gassy" and more "oily" it should continue to thrive.
Skyworks Solutions (SWKS) has as its CEO one of Cramer's favorite managers, David Aldrich. The stock is so low, investors can expect an upside surprise, and SWKS has a history of reporting flawless quarters.
Windstream (WIN) should report strong earnings and is cheaper than its competitors
Groupon's (GRPN) IPO will probably see the biggest one-day pop of any IPO. Investors who get in should get out the same day. Buying GRPN in the after-market would be a major sin.
Cramer took some calls:
Whirlpool (WHR) is down $8, and it is too late to sell. Management used worldwide macro weakness to justify mass firings. The company has underperformed, and Cramer thinks management needs to "look within themselves and not at their employees to figure out what's wrong."
Green Mountain Coffee (GMCR) is a battleground stock that is heavily shorted. Its patent on the K-Cup will expire next year. Cramer would stay out of this "no man's land" stock.
CEO Interview T.J Rodgers, Cypress Semiconductor (CY)
Cypress Semiconductor (CY) is a company whose future seems brighter than its past. This $3 billion company makes programmable chips for mobile phones and tablets, and specializes in chips for touch screens. Cypress reported a decent quarter with a 3 cents earnings beat and in-line 14% growth in revenues. Touch screen chip sales were up a staggering 208% year over year and 14% from the last quarter. The stock rallied 5% the day it reported, but has pulled back on macro concerns and weakness from some of its clients. Cypress introduced a dividend of 1.8% and is buying back 13% of the company. Cramer thinks Cypress is cheap, even though it has gained 388% since he got behind the stock in 2008.
CEO T.J. Rodgers expressed confidence for the coming year with accelerating demand for touch screen technology. Patents are driving the company's success, and Cypress has 1,800 of them. Rodgers reported that even in slow times, the company has reported a 20% profit increase, mainly because Cypress is running a tighter ship: "We are no longer Silicon Valley cowboys."
Cramer thinks worried analysts are concentrating only on the next 6 weeks, not the next 6 years, and expects a strong 2012 for Cypress.
So much fuss is made about competition in tech, but is every face-off between companies a battle to the death or are there some duels that are more like sibling rivalries? Cramer thinks there is room for all of the quality tech companies. People are fond of thinking that Arm Holdings (ARMH), with its close relationship with Apple (AAPL,) is the future and Intel (INTC), represents the past. While Intel's end markets are slower, they have stabilized, and Intel still has a hold on servers and data centers. The company is also making chips for super thin notebooks. In addition, Intel is cheap, and trades at 10 times next year's earnings with monster cash flow and a 3.4% dividend. Arm Holdings (ARMH) is taking significant market share, but trades at a rich 48 times next year's earnings. There is room for both stocks; investors who want steady income growth should buy Intel, while the risk averse should buy Arm Holdings.
Amazon's (AMZN) quarter disappointed the Street because it is going to have to spend to invest in its own business, but Amazon is doing the right thing if it wants to drive out brick-and-mortar retailers and set its Kindle Fire ablaze. Apple (AAPL) is doing everything right, and while the last quarter wasn't stupendous, the stock still trades at a multiple of 10.4, which is cheap for the industry. Competition from Amazon is not a problem for Apple.
Google's (GOOG) Android might pose a threat to Apple, but demand for smartphones is so strong, there is room for both companies' phones. Especially since Research in Motion (RIMM) seems to be on its last legs, there is room for both Google and Apple to stand firm in the smartphone industry.
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