Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday November 29.
CurrencyShares Euro Trust ETF (NYSEARCA:FXE)
The most accurate measure for U.S. stocks recently has been the euro. In fact 85% of the time, the S&P 500 and the CurrencyShares Euro Trust ETF (FXE) have been trading in lockstep with each other. Therefore, the dismal view of the FXE chart does not bode well for stocks. Technical analyst, Tim Collins of TheStreet.com, thinks the euro is headed lower, as evidenced by the chart. The daily chart of the FXE shows it has been stuck in a wedge with a floor of $132 and a ceiling of $134. The bulls are praying it breaks through the ceiling, but it seems that even the floor won't hold. If it does break through the ceiling, it will form the handle of a bearish cup and handle formation, and will head lower anyway. The monthly chart is even worse. FXE has to dip to $115 before it can be in oversold territory. Cramer says the FXE is "another reason for insomnia," and the charts "validate my concern." Cramer would stay in defensive stocks and be cautious.
Anadarko Petroleum (NYSE:APC), EOG Resources (NYSE:EOG), Schlumberger (NYSE:SLB), Ensco (NYSE:ESV), National Oilwell Varco (NYSE:NOV), ConocoPhillips (NYSE:COP), Halliburton (NYSE:HAL), Baker Hughes (NYSE:BHI), Transocean (NYSE:RIG), Chevron (NYSE:CVX), Occidental Petroleum (NYSE:OXY)
Oil has come down hard on bad economic news, and the resilience of oil may signal what to buy amid the uncertainty that surrounds Europe. West Texas Intermediate rose back to $100 and Brent Crude is at $110. In the meantime, Andarko Petroleum (APC) bounced on news of a major find, and EOG Resources (EOG) reported an outstanding quarter. Drillers have been facing challenges, but have great long-term stories. Schlumberger (SLB) is "the biggest and the best" and is down 16% for the year. Ensco (ESV) is a more aggressive drilling play and National Oilwell Varco (NOV) is a driller for investors who like risk, since it is a wild trader.
Domestically, EOG Resources has the best assets, and Chevron (CVX) and ConocoPhillips (COP) are excellent international oil plays. Occidental Petroleum (OXY) announced new finds which should be profitable. Halliburton (HAL) and Baker Hughes (BHI) reported disappointing numbers, but have good long-term stories. Cramer urged having oil in a portfolio, since these stocks tend to bounce back from declines.
Cramer took a call:
Transocean (RIG) is doing an equity deal and Cramer thinks, "The dividend will be the next thing to go. I'm deeply disappointed...those guys have really let us down. That used to be a great company."
Tractor Supply Company (NASDAQ:TSCO)
Tractor Supply Company (TSCO) is a stock that is insulated from European woes, since it caters to the domestic niche market of those who farm as a hobby; "It's about lifestyle, not livelihood," Cramer said. As a result, TSCO is less volatile than other agriculture stocks and appeals to a demographic that has a higher income than average. It is not vulnerable to competition, given its niche market, and is located in rural areas outside of major urban hubs. TSCO is growing its store count by 8%, its recent quarter saw a 6 cent earnings beat, a 17.9% rise in revenues and an 11.5% gain in same store sales. The company raised its guidance, and the stock trades at a multiple of 20 compared to its 17% growth rate. Cramer would buy some now and pick up more when it falls after the next down day for stocks.
CEO Interview: Charif Souki, Cheniere Energy (NYSEMKT:LNG)
Cramer spoke with Charif Souki, CEO of Cheniere Energy (LNG) which constructs terminals for importing and exporting oil and natural gas. Souki said that there is a "glimmer of hope" for those who want to see more natural gas used domestically, as the imports of oil have decreased and exports have increased dramatically in the last year. This means that the U.S. is using more of its native fossil fuel resources, and Souki expects that trend to continue. When asked about the company's debt in building new facilities, Souki said the company has signed two new contracts that may generate $865 million a year, and he is confident that LNG can cover the debt.
"You have confounded the skeptics before," said Cramer, who is a believer in LNG.
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