5 Buy And 6 Sell Cramer Ideas: Part II

 |  Includes: APA, COP, DVA, GTATQ, IOC, NOK
by: Efsinvestment

Click here for part I.

Here are the last six stock mentions from Jim Cramer’s Lightning Round on November 10, along with my opinions about them. The O-Metrix Grading System is applied where possible, as well.


























GT Advanced Technologies




Buy Later

Click to enlarge

Data obtained from Finviz/Morningstar, and is current as of November 10 close. You can download the O-Metrix calculator here.


Cramer sees no catalyst or momentum in Nokia, therefore sees no reason to own it. The company has a P/E ratio of 14.1, and a forward P/E ratio of 18.5, as of the November 10 close. Five-year annual EPS growth forecast is 6.0%, which is unfair when its -9.64% EPS growth of past five years is considered. Profit margin (2.9%) is crushed by the industry average of 9.5%, while it pays a 7.48% dividend.

Nokia has an O-Metrix score of 4.13, and it is trading 41.68% lower than its 52-week high. Target price is $7.57, implying a 17.3% increase potential. Earnings decreased by 112.86% this quarter, whereas Beta value is 1.56. SMA20 is -2.07%, and SMA200 is -9.09%. Institutions hold only 10.55% of the shares. Yields are inconsistent, as well as, assets. Cash flow is not doing very good.

Nokia returned -39.0% in a year. Gross margin and operating margin are 29.5% and 2.9%, respectively. While ROA is 3.43%, ROE is 9.66%. ROI is 6.66%. Nokia has a terrible PEG value of 3.1. Sales decreased by 12.56% this quarter. As Mike Walkey suggests, Nokia is a wait-and-see story until the second half of 2012.


The Mad Money host likes this health services provider, and thinks that it is a “good, consistent one.” DaVita was trading at a P/E ratio of 17.8, and a forward P/E ratio of 11.8, as of November 10. Estimated annualized EPS growth is 12.6% for the next five years. It pays no dividend, and the profit margin (5.9%) is higher than the industry average of 5.1%.

DaVita returned -0.3% in a year, while it has an O-Metrix score of 4.25. Target price is $83.30, which indicates an about 13.5% upside potential. The company is trading 18.24% lower than its 52-week high, whereas Beta value is 0.42. SMA20 and SMA50 are 6.10% and 6.40%, respectively. Institutions hold 97.47% of the shares.

Cash flow is doing quite good, and Morningstar gives a four-star rating to the company. Debt-to equity ratio is 2.2, well below the industry average of 3.7. PEG value is 0.9. 11 out of 16 analysts covering the company recommend buying, and my opinion is no different.

Interoil vs. Apache - ConocoPhillips

Cramer does not like Interoil, and he made the following remarks:

No, no way too risky. I have Apache and ConocoPhillips hitting the ball out of the park.

Here is a brief comparison of these three stocks:

Current as of November 10 close.




P/E ratio




Forward P/E ratio




Estimated EPS growth for the next 5 years




Dividend yield




Profit margin




Gross margin




Upside movement potential




Click to enlarge

Interoil is clearly a terrible company, which is absolutely poor in almost any of its fundamentals. Apache returned -8.3% in the last twelve months, while ConocoPhillips returned 13.5%. O-Metrix scores of Apache and ConocoPhillips are 6.14 and 6.57, respectively. Apache is currently trading 24.08% lower than its 52-week high, whereas ConocoPhillips is trading 10.21% lower.

Morningstar gives a five-star rating to Apache, and a four-star rating to ConocoPhillips. Debts are far from being a threat for both of them. I believe both of these two are profitable buys. (Read a full analysis of Apache here. Read a full analysis of ConocoPhillips here.)

GT Advanced Technologies

"Solar is in its own personal bear market," Cramer comments, recommending homegamers to stay away from this stock. The New Hampshire-based GT Advanced, as of November 10, shows a trailing P/E ratio of 5.0, and a forward P/E ratio of 4.3. Analysts expect the company to have a 10.0% annualized EPS growth in the next five years, which sounds conservative given the 84.73% EPS growth of past five years. Profit margin (20.8%) is way higher than the industry average of 13.9%, and it has no dividend policy.

GT Advanced is currently trading 55.43% lower than its 52-week high, while it has a significant O-Metrix score of 10.75. Target price is $14.64, implying a 87.6% growth potential. Insider transactions for the last six months have increased by 54.12%, whereas sales rose by 70.97% this quarter. GT Advanced had a 257.47% EPS growth this quarter, and 106.66% this year. Debt-to equity ratio is 0.2, below the industry average of 0.5.

Operating margin is 31.5%. ROE and ROI are 70.06% and 53.42%, respectively. PEG value is 0.4. Apart from price-to book ratio (3.3), there is no red flag in GT Advanced’s key statistics. Although the company is having rough times, such a high-tech company can outperform in the future. I say wait and see, then buy.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.