Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of Mad Money, and also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV, and most of these are ordinary investors trying to understand what’s going on in the market. Jim Cramer’s bullish and bearish stock picks on his show are the starting point for many investments made by these folks.
During the November 1st show, Cramer discussed the following stocks:
Starwood Hotels (HOT): Cramer said he took undue criticism for what he feels is people not taking heed to what he says in full. Last week, Cramer recommended buying Starwood Hotels on a pullback, but the stock is currently trading just 3 points below from when he had the CEO on the show. Cramer said this is clearly not the pullback he was talking about. Starwood Hotels trades at 14.6 times earnings and has a $9.44 billion market cap.
Energy Transfer Partners (ETP): Cramer told investors to buy when the stock falls to the point where the yield reaches 8%. This pipeline company currently yields 7.6%, trades at 29 times earnings and has a $9.59 billion market cap.
B&G Foods (BGS): A small packaged foods company that Cramer recommended buying on a downturn. It is actually up 10% from when the CEO was on Mad Money last week. B&G Foods yields 4.4%, trades at 19.6 times earnings and has a $991.69 million market cap.
Yahoo! (YHOO): Cramer commended a viewer for selling Yahoo! stock. Cramer said many people are in the stock because of the potential takeover, but this goes against Cramer’s idea of avoiding stocks with declining fundamentals. Yahoo! trades 20 times earnings and has a $18.85 billion market cap.
Home Depot (HD): The home improvement retailer has been terrific, specifically benefiting from recent storms around the United States. Cramer recommends buying the stock into the dip, but stressed that the dip has not happened yet. Home Depot yields 2.8%, trades at 16 times earnings and has a $55.60 billion market cap. Louis Navellier of Navellier & Associates increased his position by 8%.
Emerson (EMR): Emerson is a diversified industrial company that manufactures tools and equipment for other companies; typically in the energy end market. While analysts weren’t expecting great earnings numbers, Emerson delivered a $0.02 earnings beat on a $0.96 basis.
Emerson also announced a dividend increase, which now yields 3.2%. Emerson Electric trades at 14.9 times earnings and has a $35.98 billion market cap. Ken Fisher of Fisher Asset Management owns over 4.95M shares.
Novellus Systems (NVLS): This semiconductor maker reported a bullish quarter in terms of its outlook and Cramer thinks there is more upside potential to come. CEO Rick Hill told Cramer that he feels Novellus is undervalued and that drove his recent buyback. Novellus bought back 5.2M shares (valued at $150.6M). Typically not a fan of buybacks, Cramer said this one is the most aggressive he’s ever seen, which means it’s actually good for shareholders. Novellus Systems has a $3.02 billion market cap and trades at 10 times earnings.
Total (TOT): Cramer likes this French oil company and said this was a good level to buy. He recommended buying on a pull-back. Total yields 6.17%, trades at 7.7 times earnings and has a $113.59 billion market cap.
CSX Corp. (CSX): Cramer said he’s willing to endorse CSX, although he likes Norfolk Southern (NSC) more because it reported a better quarter. Cramer advised buying CSX in stages and avoided making a buy statement. CSX yields 2.16%, trades at 13.7 times earnings and has a $22.56 billion market cap.
Express Scripts (ESRX): Cramer likes Express Scripts and his charitable trust also owns it. Cramer even said he likes the pullback because he feels 2012 is going to be particularly strong for the company. Pfizer (PFE) losing patents in 2012 will be beneficial for Express Scripts, along with the Medco Health Solutions acquisition. Cramer hopes Walgreens (WAG) and Express Scripts can settle their dispute, but thinks the company will be fine either way. Express Scripts trades at 18 times earnings and has a $21.49 billion market cap. George Soros’ Soros Fund Management owns 100,000 shares.
Royal Caribbean (RCL): This cruise liner beat estimates and Cramer thinks it is in a good position, despite having an expensive fuel problem. Cramer said to buy it at $25, but advised investors to be aware that the travel and leisure industry always gets hit first on bad news from Europe. Royal Caribbean has a $5.92 billion market cap, trades at 10.4 times earnings and yields 2%.
Fossil (FOSL): Cramer said Fossil is a “wild trader“ in the apparels, but said it comes 5th on his list of retail stocks after VF Corp. (VFC), Philips Van Heusen (PVH), Ralph Lauren (RL) and Deckers Outdoor (DECK). Fossil trades at 25.3 times earnings and has a $6.27 billion market cap.
MarkWest Energy (MWE): This Master-Limited Partnership (MLP) gathers, processes and transports oil and natural gas for many companies operating in America’s shales. MarkWest Energy has invested $2.3B in infrastructure since 2006. While historically focused in Texas and Oklahoma, the company has shifted focus to the Marcellus shale on the East coast over the last 3 years. MarkWest Energy yields 6% and has a $3.91 billion market cap.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.