Jim Cramer's Mad Money In-Depth Stock Picks, April 26
Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round, Stop Trading and his Wall Street Confidential PicksMovin' on Up: Amazon (AMZN), Whirlpool (WHR), MedcoHealth (MHS), CVS Caremark (CVS), Allergen (AGN), Transocean (RIG), Halliburton (HAL), Emerson Electric (EMR), Caterpillar (CAT), Celgene (CELG), Genzyme (GENZ), Colgate-Palmolive (CL), Coca-Cola (KO) and Goldman Sachs (GS)
Cramer said the Dow's historic move yesterday to over 13,000 was "only the beginning...We're sitting on top of a major move up." The cause for the rally was the general pessimism that preceded it because of housing woes and the Democrats' control of Congress. However, the hedge funds which were shorting AMZN and WHR got the short end of the stick. Cramer says these stocks are "consistent and worth owning" and adds they are getting revaluated, which should send the stock market higher. In the health care sector, MHS, CVS and AGN have not peaked yet, and Cramer still likes oil drilling stocks RIG and HAL, and might consider other companies if they are not wholly focused on the U.S. He predicts CAT will reach $80 and comments EMR is a "great stock that doesn't get enough love." He also was bullish on CELG, GENZ, CL, KO and GS, as well as his "Green Day" and "Benefit of the Doubt" stocks.
Benefit of the Doubt Stocks:
VF Corp (VFC) J.C. Penney (JCP) Federated Department Stores (FD) Kohl's (KSS) Costco (COST) Polo Ralph Lauren (RL) Saks (SKS) Sears Holdings (SHLD) RadioShack (RSH) Green Day Stocks:
Shaw Group (SGR) Foster Wheeler (FWLT) First Solar (FSLR) MEMC Electronic Materials (WFR) BorgWarner (BWA) Tetra Tech (TTEK) Om Group (OMG) Fuel Tech (FTEK) Related: Eric Savitz reports statements from "reformed Amazon bears."
Ross Stores (ROST) and TJX Companies (TJX)
Continuing his series on potential targets for private equity takeovers, Cramer discussed two names which could give a 20% premium to their shareholders. ROSS is "sitting on a mountain of debt" and is "fundamentally sound" although its operating margins have dropped because of systems and shrinkage problems. These issues could easily be solved by private equity owners firing extra workers and closing sluggish stores. Cramer calls TJX a "perfect PE situation" because it generates cash but is sacrificing its margins for growth to impress analysts and money managers. Cramer sees a potential for a private equity firm to close some of TJX's less impressive stores.
Related: Larry Dignan comments consumers still shop at TJX in spite of data breaches.
Sell Block: IBM (IBM), Amazon (AMZN), Riverbed Technology (RVBD), Portfolio Recovery Associates (PRAA), American Ecology (ECOL)
Cramer confessed he didn't see IBM's rise coming with its dividend hike which was a "wake-up call" and says he owes CEO Samuel Palmasino, who was recently inducted into Cramer's Wall of Shame, an apology. "I would buy IBM," Cramer said. He would also remove Amazon from the Sell Block because it is cutting spending, and admittedhe was wrong about RVBD which reported a blowout quarter; "on Riverbed and Amazon I was irresponsibly negative," Cramer said. He added it's time to take profits in ECOL and PRAA, since the latter company has climbed 30%.
Related: CrossProfit discusses IBM's buyback program and new dividend.
CEO Interview: Tye Burt, president and CEO of Kinross Gold (KGC) with Yamana (AUY)
Tye Burt said his company currently has 45 million ounces of gold, 70 million ounces of silver and 3 billion pounds of copper, and predicted, "We're going to grow that production base off that reserve base by 60% over the next two years." He added, "Last year we doubled our cash flow, and it is going to go up again." Cramer would buy KGC if one feels AUY is too costly.
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