Cramer's Mad Money - Harley Davidson Is Revving Up (2/1/12)

Includes: AMZN, CLB, HOG
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday February 1.

Harley Davidson (NYSE:HOG)

Harley Davidson (HOG) is revving up after reporting a great quarter with the fastest retail sales since 2005. The company beat earnings by 7 cents, and the stock is just 2 points away from its 52 week high. HOG has 45% market share in the motorcycle space and is an iconic brand that represents freedom, a great play on baby boomers wanting to feel younger. The company has restructured since 2009 and its inventory is now "lean and mean." The company is expanding overseas and is cheap, selling at a 13.5 multiple with a 14.5% growth rate.


Amazon (AMZN) may be expected to be a buy on the drop after its earnings, since it is spending a good amount on research and development. However, the company is not showing accelerating revenue growth, and Cramer would hold off buying AMZN. While it has been a terrible bet to go against the stock, Cramer would not be bullish on it until he has more information about AMZN's prospects going forward.

CEO David Demshure, Core Labs (NYSE:CLB)

Core Labs (CLB) is like a high-tech oil play, which figures out where companies should drill and how to get the most oil out of their wells. The stock has given investors an 86% return since Cramer recommended it in 2010 and reported a 12% dividend boost. The company beat estimates by a penny and revenues rose by 17%. CEO David Demshure discussed the company's increasing exposure to oil, rather than to natural gas, and its international expansion. The company is growing in the Canadian oil shales and the Gulf of Mexico, a region that should see a recovery in 2012. The company has a strong free cash flow, and in addition to raising the dividend, CLB should institute share buybacks.


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