6 Buys And Sells From Cramer's Lightning Round

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 |  Includes: AAPL, APA, APU, COO, MTW, OLED
by: Efsinvestment

Markets are looking for a significant indicator to go up or down, but they have yet to find one to move in a clear way. After Italy’s Prime Minister Silvio Berlusconi won a budget vote, markets started to show some green. However, this trend seems extremely fragile. Cramer is starting to become more bearish as this situation keeps going on, even suspecting one of his faves, Apple Inc. (NASDAQ:AAPL). Although he was still bullish after Steve Jobs’ death, he is recommending a cautious stand against this company now.

In the November 7 Lightning Round segment of Mad Money, Cramer mentioned six companies, making four bearish and two bullish calls. 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 applicable, as well. Here is a fundamental analysis of these stocks from Cramer's November 7 Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

The Cooper Companies

(NYSE:COO)

Buy

4.37

Hold

Manitowoc Company

(NYSE:MTW)

Buy at $10

N/A

Avoid

Apple

(AAPL)

No Longer the Same Company

7.44

Top Pick

Universal Display

(NASDAQ:PANL)

Avoid

N/A

Avoid

Amerigas Partners

(NYSE:APU)

Avoid

3.86

Avoid

Apache

(NYSE:APA)

Buy

6.04

Buy

Click to enlarge

Data obtained from Finviz/Morningstar, and is current as of November 7 close. You can download the O-Metrix calculator here.

The Cooper Companies

Cramer is bullish on the medical group, including Cooper. It was trading at a P/E ratio of 19.0, and a forward P/E ratio of 13.9, as of November 7. Estimated annual EPS growth is 14.3% for the next five years. With a profit margin of 13.0%, Cooper pays a razor-thin dividend of 0.09%.

The stock is trading 20.05% lower than its 52-week high, while it returned 35.6% in a year. Target price indicates a 21.9% increase potential, and O-Metrix score is 4.37. Beta value is 0.89, whereas debt-to-assets ratio is decreasing since 2008. Debt-to-equity ratio is 0.2, well below the industry average of 0.6. Gross margin is 59.9%, and PEG value is 1.0.

On the other hand, Cooper is paying the same dividend since December 2002. Earnings decreased by 9.11% this quarter, while insiders hold only 0.61% of the shares. SMA20 is -4.18%, whereas SMA50 is -9.39%. SMA200 is -6.14%. ROA, ROE, and ROI are 6.53%, 9.59% and 7.30%, respectively. Insiders have been both selling stocks and exercising options for a while. I think that this stock is too risky for buying. Holding should do all right.

Manitowoc

Although Cramer was totally bearish on this stock recently, he suggests buying should it fall to $10 a share. It shows a trailing P/E ratio of -23.4, and a forward P/E ratio of 13.4, as of the November 7 close. Five-year annual EPS growth forecast is 15.00%, which sounds totally unfair given the -37.49% EPS growth of past five years. It offers a symbolic dividend of 0.66%, and the profit margin (-3.4%) is crushed by the industry average of 6.7%.

Target price is $14.12, implying a 20.4% upside movement potential. Manitowoc is currently trading 49.55% lower than its 52-week high, while it returned -1.6% in the last twelve months. Debt-to-equity ratio is 4.0, crushed by the industry average of 0.8. Insiders hold only 0.24% of the shares, whereas SMA200 is -23.43%. Since 2007, debt-to-assets ratio has come from 10% to 50%. While gross margin is 24.0%, operating margin is 6.1%. ROA, ROE, and ROI are -2.72%, -22.61% and -4.30%, respectively. Manitowoc has a horrible Beta value of 2.99. The stock is highly volatile, so it wouldn’t be wise expecting anything much from this stock.

Apple

Cramer made the following comments on this company:

Apple is OK. The glory days are not there anymore without Steve Jobs, but that doesn't mean it can't go higher.

Apparently Jim Cramer is about to change his stance behind the stock. Apple, as of November 7, has a P/E ratio of 14.5, and a forward P/E ratio of 10.2. Analysts estimate an 18.4% annualized EPS growth for the next five years. Profit margin (24.0%) is well above the industry average of 12.9%, and it sports no dividend.

The stock is currently trading 5.47% lower than its 52-week high, while it has an O-Metrix score of 7.44. Apple returned 26.9% in a year, and its target price indicates a 24.6% increase potential. Debt-to-equity ratio is 0.0, which crushes the industry average of 5.6. While SMA50 is 2.13%, SMA200 is 11.53%. Apple had a 51.99% EPS growth this quarter, and 82.63% this year. Institutions hold 70.28% of the shares.

The company has no debts since 2007, whereas cash flow is doing terrific. Operating margin is 31.2%. ROA and ROE are 27.07% and 41.67%, respectively. PEG value is 0.6, while Morningstar gives a four-star rating to the company. Although the latest quarterly results were a little bit disappointing, it is still a screaming buy. My FED+ fair value range for Apple is $652 - $734 per share (Full analysis, here).

Universal Display

The Mad Money host stated that Universal Display is a “battleground,” and that he “doesn’t buy battlegrounds.” The company, as of November 7, was trading at a P/E ratio of -90.1, and a forward P/E ratio of 61.3. Analysts expect the company to boost its annual earnings by 24.50% in the next five years. With a horrible profit margin of -54.4%, the stock offers no dividend policy.

Universal is trading 23.81% lower than its 52-week high, while it returned 106.5% in the last twelve months. Target price is $47.71, indicating no upside potential. SMA20 is -0.72%, and SMA50 is -3.87%. Assets are totally unstable, whereas cash flow is not doing so good. P/B is 6.8, and P/S is 48.8, both of which are way above their industry averages. Operating margin is -20.4%. ROA and ROE are -9.84% and -11.28%, respectively. Beta value is 1.30, while PEG value is 1.9. Universal Display is among my high-fliers list, so stay away from it.

AmeriGas Partners

Cramer is bearish on all propane companies, so he suggests homegamers avoiding AmeriGas. The Pennsylvania-based AmeriGas shows a trailing P/E ratio of 17.7, and a forward P/E ratio of 23.8, as of November 7. Five-year annualized EPS growth forecast is 9.36%. Profit margin (5.6%) is slightly higher than the industry average of 5.4%, and it offers a tremendous dividend of 6.70%.

AmeriGas has an O-Metrix score of 3.86, while it returned -8.9% in a year. Target price implies an about 4.1% upside potential, whereas it is trading 10.54% lower than its 52-week high. Institutions hold only 8.86% of the shares, and earnings decreased by 26.39% this year. SMA20, SMA50, and SMA200 are -1.93%, -0.04% and -1.15%, respectively. While gross margin is 37.7%, operating margin is 9.3%. ROA is 7.99%. Debt-to-equity ratio is 1.9, well above the industry average of 1.0. PEG value is 19.0. Hold if you own it, but I buying is not a good idea now.

Apache Corporation

Cramer is bullish on Apache, and he made the following comments:

That was a fabulous quarter. I cannot believe that stock is not higher. There are fabulous businesspeople at Apache.

As of the November 7 close, the stock was trading at a significant P/E ratio of 10.2, and a forward P/E ratio of 8.3. Estimated annualized EPS growth for the next five years is 10.6%. It pays a thin dividend of 0.59%, and the profit margin (25.8%) is way higher than the industry average of 14.1%.

Apache returned -6.1% in the last twelve months, while the stock is trading 23.01% lower than its 52-week high. Target price is $133.33, implying a 29.4% increase potential. Institutions hold 86.08% of the shares, whereas debts are far from being a threat. Debt-to-equity ratio is 0.3, way lower than the industry average of 0.9. Apache had a 1072.43% EPS growth this year, and 43.64% this quarter. SMA20 and SMA50 are 8.42% and 11.10%, respectively. O-Metrix score is 6.04. While gross margin is 98.3%, operating margin is 45.3%. PEG value is 0.8. Moreover, Morningstar gives a five-star rating to the company. Apache has remarkable growth potential, so consider adding this stock to your portfolio.

Disclosure: I am long AAPL.