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Although the Greek government cancelled their referendum decision, markets fell as the unemployment rate in the U.S. didn’t drop to expected rates again. There are no winners in sectors this week, as well. Overall, the current situation does not seem very hopeful to me. We may observe a sell-off trend and a massive return to safe havens, in case things keep going this way. I guess we might wait until the Christmas rally to boost the portfolio returns.

Nevertheless, Jim Cramer was pretty optimistic on November 3rd’s Lightning Round. He made ten calls that are worth a deeper look. Seven of them were bullish this time, and the rest bearish. I have examined all of his stock mentions from a fundamental perspective, and added my opinion about them. I have applied my O-Metrix Grading System where possible, as well. Here is a fundamental analysis of these stocks from Cramer's November 3 Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

Callaway Golf

(ELY)

Avoid

N/A

Avoid

Vodafone

(VOD)

Buy

5.02

Buy After Pullback

Verizon

(VZ)

Buy

3.33

Buy After Pullback

Mercer

(MERC)

Avoid

5.74

Buy

PPG Industries

(PPG)

Buy

3.66

Buy

Westport

(WPRT)

Buy

N/A

Avoid

Advanced Micro Devices

(AMD)

Avoid

9.28

Buy

Intel

(INTC)

Buy

7.43

Buy

Qualcomm

(QCOM)

Buy

4.86

Buy

AT&T

(T)

Buy

3.80

Top Pick

(Data obtained from Finviz/Morningstar, and is current as of November 3 close. You can download the O-Metrix calculator here.)

Callaway Golf

Cramer is bearish on Callaway Golf (ELY), as it is a “no-growth business.” It shows a trailing P/E ratio of -3.6, and a forward P/E ratio of 23.9, as of November 3. Analysts estimate a 5.0% annual EPS growth for the next five years. It pays a thin dividend of 0.70%, while the profit margin (-16.5%) is crushed by the industry average of 6.9%.

Callaway is trading 32.46% lower than its 52-week high, and it returned -21.5% in a year. Target price is $8.50, implying an about 49.1% upside movement potential. Earnings decreased by 855.04% this quarter, and 38.30% this year. Beta value is 1.22, whereas SMA200 is -12.16%. Assets are decreasing for the last three quarters, and cash flow is terrible. While gross margin is 35.9%, operating margin is -8.0%. ROA and ROE are -18.12% and -23.35%, respectively. The company has a horrifying PEG value of 4.8. Don’t expect anything from this stock.

Vodafone (VOD) vs. Verizon (VZ)

The Mad Money host is bullish on both Vodafone and Verizon. Here is a brief comparison of these two stocks:

Current as of November 3 close.

Vodafone

Verizon

P/E ratio

11.5

14.8

Forward P/E ratio

10.0

14.4

Estimated EPS growth for the next 5 years

3.9%

4.3%

Dividend yield

6.91%

5.43%

Profit margin

17.4%

6.5%

Gross margin

32.8%

59.2%

Upside movement potential

22.1%

4.0%

Vodafone returned -1.6% in the last twelve months, whereas Verizon returned 11.7%. O-Metrix scores of Vodafone and Verizon are 5.02 and 3.33, respectively. Vodafone is trading only 2.54% lower than its 52-week high, while Verizon is trading 1.03% lower. Morningstar gives a four-star rating to Vodafone, and a three-star rating to Verizon. Verizon is relatively less volatile, and it is not dependable on the eurozone situation like Vodafone. Moreover, it is a portfolio booster for the retiree. Both of them are buys after a pullback, but Verizon would be my primary choice for now. Depending on the Eurozone issues, Vodafone may be added to portfolio as well.

Mercer (MERC) vs. PPG Industries (PPG)

Cramer prefers PPG Industries to Mercer if you want to play paper. Here is a brief comparison of these stocks:

Current as of November 3 close.

Mercer

PPG Industries

P/E ratio

2.2

12.9

Forward P/E ratio

6.5

12.0

Estimated EPS growth for the next 5 years

5.0%

6.5%

Dividend yield

-

2.63%

Profit margin

13.4%

7.4%

Gross margin

30.4%

39.1%

Upside movement potential

6.4%

3.6%

Mercer is currently trading 57.30% lower than its 52-week high, while PPG is trading 8.91% lower. O-Metrix scores of Mercer and PPG are 5.74 and 3.66, respectively. Mercer returned 1.5% in a year, whereas PPG returned 10.1%. While Mercer was a top pick of Cramer, he got on the bearish side now. Unlike him, I still keep my faith in this stock, as it is capable of beating the market. Mercer got hammered enough, so it might be the time to jump in. PPG is a buy, as well.

Westport Innovations (WPRT)

Cramer is bullish on Westport Innovations and he made the following remarks:

The right place at the right time...they make engines that run on natural gas...Westport is a winner.

It was trading at a P/E ratio of -24.0, and a forward P/E ratio of -61.3 as of the November 3 close. Five-year annualized EPS growth forecast is 10.7%. It offers no dividend, while the profit margin (-29.1%) is crushed by the industry average of 5.0%.

Westport returned 41.4% in the last twelve months, whereas it is currently trading 18.05% lower than its 52-week high. Target price is $26.74, indicating an 8.3% downside potential. P/B is 7.2, and P/S is 6.3, both of which are well above their industry averages. ROA, ROE, and ROI are -22.28%, -43.79% and -30.18%, respectively. While operating margin is -16.9%, gross margin is 35.1%. SMA20 is -2.61%, and SMA50 is -0.78%. Moreover, the stock is highly volatile. It might’ve reported a significant quarter, but fundamental indicators are of the highest importance for me. Instead of going for short and risky investments, I rather prefer going long on companies with strong fundamentals offering safe returns. Therefore, Westport is not my type.

Advanced Micro Devices (AMD) vs. Intel (INTC) vs. Qualcomm (QCOM)

The Mad Money host stated that Advanced Micro Devices is “out of power,”and therefore suggests buying Intel, or even Qualcomm. Here is a brief comparison between these three stocks:

Current as of November 3 close.

Advanced Micro Devices

Intel

Qualcomm

P/E ratio

4.9

10.9

20.8

Forward P/E ratio

9.1

9.3

15.1

Estimated EPS growth for the next 5 years

13.0%

11.5%

15.8%

Dividend yield

-

3.52%

1.65%

Profit margin

12.8%

25.3%

28.5%

Gross margin

44.8%

63.0%

67.4%

Upside movement potential

17.3%

12.5%

13.6%

Qualcomm has the lowest average P/E ratio and O-Metrix score. AMD is currently trading 40.82% lower than its 52-week high, whereas Intel is trading 4.84% lower. Based on these numbers, O-Metrix scores of AMD and Intel are 9.28 and 7.43, respectively. AMD returned -29.5% in a year, and Intel returned 13.2%. Qualcomm is a buy, as well.

While I both like Intel and Qualcomm, AMD is a profitable buy for me, too. It shows pretty appetizing indicators like great single-digit ratios, PEG value (0.7), and institutional ownership (80.30%). The company had a 179.09% EPS growth this quarter, and 41.91% this year. Insider transactions for the last six months have increased by 43.96%, whereas ROE is 69.20%. Moreover, it has a five-star rating from Morningstar. When I look at the historical record of the company, I usually see a downward trend around October every year. Since October has passed, I guess it is time to jump in. (Read a full comparison between AMD and Intel here. Read a full analysis of Intel here. )

AT&T (T)

Cramer made the following remarks on AT&T:

It's a cheap stock...it wins either way...if it buys T-Mobile, it's a winner...if it doesn't, it's a winner...because it's got plenty of cash flow.

AT&T has a P/E ratio of 15.1, and a forward P/E ratio of 11.7. Analysts expect the company to have an annualized EPS growth of 4.3% in the next five years. With a profit margin of 16.2%, and a dividend of 5.91%, AT&T is a tremendous pick for dividend lovers.

The company has an O-Metrix score of 3.80, while it is currently trading 6.57% lower than its 52-week high. Target price is $32.67, which implies a 12.6% upside potential. AT&T returned -1.4% in the last twelve months, whereas Beta value is 0.60. Yields are awesome, and debt-to assets ratio is climbing down since 2008. Cash flow is doing absolutely tremendous. Debt-to equity ratio is 0.5, which crushes the industry average of 3.1. Gross margin is 57.2%. AT&T is a screaming long-term play, so add this stock to your portfolio if you want to make some serious money. (Full analysis of AT&T, here).

Source: My Take On Jim Cramer's Lightning Round Picks (11/3/11)