Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday November 11.
9 Things to Watch in the Coming Week: Lowe's (LOW), Home Depot (HD), J.C. Penny (JCP), Wal-Mart (WMT), TYCO International (TYC), Ross Stores (ROST), Salesforce.com (CRM), H.J.Heinz Company (HNZ) Noble Energy (NBL). Other stock mentioned: Boeing (BA)
Cramer discussed things to look for in the coming week:
Lowe's (LOW) is on the move. If it reports a good number, it might be worth buying.
J.C. Penny (JCP): Attention is on the new CEO, Ron Johnson, the architect of the Apple stores (AAPL), to hear what he will say about his first quarter at the helm of JC Penny. This might be the most important conference call from the company in a long time.
Home Depot (HD) is a great performer while Lowe's is a good performer. A strong number for LOW will be fantastic for HD.
Wal-Mart (WMT) has reported 3 strong quarters in a row, and this 4th quarter is expected to be even bigger than the others.
Tyco (TYC) is breaking itself up to unlock value. If earnings are good, Cramer would buy.
Noble Energy (NBL) has an analyst meeting, and the stock is undervalued. With the upswing in drilling, Cramer expects the news to be bullish.
Ross Stores (ROST) is one of the finest acting retailers out there and is a great regional-to-national story. ROST is a buy on a dip.
Salesforce.com (CRM) may report a good quarter, in spite of the shorts betting against it. However, high-multiple stocks have been hit, so Cramer would use caution before buying.
H.J. Heinz (HNZ) has pricing power because its brands are strong. It will not shoot the lights out this time, especially because of strength in the dollar, but HNZ is a solid company.
Cramer took some questions:
Gold is the right investment here, especially since the Europeans are going to be printing money. Cramer predicts gold could go to $2,000 in the next 6 months.
Housing is not good but not terrible. Employment is the key to a turnaround in housing, and that might be a year away.
Boeing (BA) is the only way Cramer would invest in defense, given the uncertainty about who will be in the White House. BA has a great yield and steady orders.
When asked about trading vs. investing, Cramer prefers investing since nowadays, "trading is for machines ...the best traders I know are losing money."
Abbot Labs (ABT) is a recession-proof defensive healthcare stock that has been outperforming the S&P 500. Even in the case of a slowdown, ABT will continue to make money. ABT has a secure 3.5% yield, and this fast-growing pharma is not going to get hit with patent expiration; its main drug does not go off patent until 2017. The company is splitting up to unlock value; one segment will be for its branded drugs and the other will be for its medical devices. The latter is a faster growing business and should have a multiple of 15, while the branded drug segment will have a multiple of 12. The breakup will add 18% to ABT's stock price, and the stock is worth buying now before the split.
Cramer took some questions:
Microsoft (MSFT) has a secure dividend and a rock solid balance sheet. The Skype acquisition could be a game changer, and 2012 should be a great year for MSFT.
CEO Interview: Don Knauss, Clorox (CLX)
The owner of iconic brands such as Glad trash bags, Hidden Valley, Burt's Bees, PineSol and Clorox reported a strong quarter and now yields 3.7%. While there were worries about commodity costs, CEO Don Knauss says the company has successfully raised prices without losing customers, because 90% of its brands are rated #1 or #2 in their categories. Clorox is expanding its offering of natural products; while Burt's Bees, made of 100% natural ingredients, has been popular, it appeals to only 8-10% of households. Clorox will create a new brand that will have more appeal than some of Burt's Bees offerings, but these products will be 95% natural. The company is expanding into Latin America and has seen 9% international growth in the past year. Don Knauss expects continued growth in the coming year, and Clorox's brand strength is "a recipe for success for the long-term."
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