Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday December 9.
14 Things To Watch: Zyng (ZYNG), Michael Kors (NYSE:KORS), Best Buy (NYSE:BBY), General Electric (NYSE:GE), Broadcom (NASDAQ:BRCM), Avnet (NYSE:AVT), FedEx (NYSE:FDX), Pier One (NYSE:PIR), Accenture (NYSE:ACN), Honeywell (NYSE:HON), Research in Motion (RIMM), Adobe (NASDAQ:ADBE), Darden (NYSE:DRI). Other stocks mentioned: Dupont (NYSE:DD), Ford (NYSE:F)
IPOs of Zynga (ZYNG), Michael Kors (expected to trade as KORS): It might be hard to get shares of these IPOs, but Cramer recommends getting in on the deals and not buying the stocks in the aftermarket. These should see a big one-day pop, especially Zynga, and he would sell quickly and not stay in them.
Best Buy (BBY) is reporting earnings and is in secular decline. Cramer would take a pass, but it is worth seeing what the company says about consumer electronics and televisions, which are weak spots right now.
General Electric (GE) has an investors' meeting. It just boosted its dividend by 13% and orders look strong. GE now yields 4% and should see a monster good 2012.
Fed Meeting: Ben Bernanke is expected to make hopeful remarks about the economy.
FedEx (FDX) can kill or make a rally on its news about orders. This is one of the most important earnings to listen to, because it is a gauge on consumer spending.
Pier One (PIR) should have good numbers because of its corporate restructuring and effective execution. The stock is up 31% for the year, and Cramer thinks it is one of the best domestic retailers.
Accenture (ACN) should give important information about global strength.
Research in Motion (RIMM), Adobe (ADBE) are not strong companies right now. Cramer thinks they are very weak "holds."
Darden (DRI) needs to state a plan to fix Olive Garden, because there is something structurally wrong with the restaurant. Cramer is concerned that maybe Darden has lost its way.
Cramer took a call:
Ford (F) should have a better year, but Europe needs to turn around before Ford will see an upside.
SXC Health Solutions (SXCI) other stocks mentioned: Novartis (NYSE:NVS), Brocade (NASDAQ:BRCD), Express Scripts (NASDAQ:ESRX)
SXC Health Solutions (SXCI) is an often misunderstood stock that has two different businesses that complement each other well. The company is a pharmacy benefits manager and also provides software to others in the industry. The company negotiates prices for drugs with customers and insurance agencies, and can do the job more effectively than insurance companies or hospitals. While there are bigger and better companies in this field, namely Express Scripts (ESRX), SXC is still worth a look because of its competitive edge in the software end of the pharma benefits industry. The company has grown this segment from scratch, and now it accounts for 82% of its sales. SXC not only sells its technology, but acquires smaller pharma benefit outfits and increases its own profitability. Revenues for SXC are expected to grow 36% by next year. SXC benefits from the trend of top drugs going off patent; it will now make triple the amount from Lipitor once it goes generic. However, there is one detail in this story that makes SXC a speculative play. One of its major clients, HealthSpring, might be taken over by Signa. If HealthSpring convinces Signa to use SXC's technology, SXC could see a double. Cramer urged viewers to buy SXC, but with the intention that it is a speculative play.
Cramer took some calls:
Brocade (BRCD) reported the first good quarter in two years. It has powerful competitors, but it is looking better, not worse.
Novartis (NVS) has a strong dividend and robust growth, but has been knocked down by overblown negative stories in the media. Cramer would buy.
CEO Interview: Bill McDermott SAP AG (NYSE:SAP) other stock mentioned: SuccessFactors (NYSE:SFSF), Apple (NASDAQ:AAPL)
SAP AG (SAP) is the largest enterprise software company on Earth, and is acquiring SuccessFactors (SFSF), a cloud-based human resources company, at a premium of $3.4 billion. This is a part of a long line of savvy acquisitions that enable SAP to make strides in Big Data. Did SAP pay too much for SFSF? CEO Bill McDermott says the 15 million strong user base SFSF has will pay off, as more executives need solutions to manage their businesses in real time. The stock has seen a 15% gain since Cramer got behind it in October, during which it reported the strongest 3rd quarter in its history. McDermott discussed how the company increased its market cap by $18 billion in the past few years through smart acquisitions. SAP has a strong relationship with Apple (AAPL), and will continue to work with the company. Cramer is bullish on SAP.
Mad Mail: PriceSmart (NASDAQ:PSMT), Skullcandy (NASDAQ:SKUL), Finisar (NASDAQ:FNSR), Huntsman (NYSE:HUN), CSX (NYSE:CSX), Norfolk Southern (NYSE:NSC), Occidental Petroleum (NYSE:OXY), Costco (NASDAQ:COST)
PriceSmart (PSMT) has run up 75% this year, and some call it the "Costco (COST) of Latin America." However, Cramer would buy Costco instead, because it has declined after its quarter and its membership dues will boost the bottom line.
Skullcandy (SKUL) went public in July and has pulled back 30%. Cramer would avoid this heavily shorted stock because its product, headphones, are too commoditized.
Finisar (FNSR) is under heavy tax loss selling and is going to get knocked down. The stock may be worth getting rid of in January at a better price, but not right now.
Huntsman (HUN) is not going to do well now that commodities are coming down. Dupont would be a better buy, even as it reported a flawed quarter.
US Bancorp (NYSE:USB) is the only financial worth buying. Even as things are looking up for the sector, Cramer would stay away.
Occidental Petroleum (OXY) has yet to move into the domestic shales, and Cramer thinks it may go dramatically higher. It is a buy on weakness.
Jim Cramer was up 31% in 2009. Click here now to trade alongside him.
Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.