Stocks discussed on the in-depth session of Jim Cramer's Mad Money Program, Friday, April 15.
Wall Street was closely watching what would happen at Doha this weekend as a meeting between OPEC and non-OPEC oil producers was held to discuss freezing oil output at current levels.
What did Mad Money's Jim Cramer think of the gathering and its potential impact on energy and stock markets? "There are too many countries involved and OPEC is broken," he said. "What really matters (in oil markets) is supply and demand."
Domestic supply is being cut by a million barrels, creating some tightness in the market. And global demand is on the rise. Cramer said he thinks nothing substantial will happen at the meeting. And that may set up investors for opportunities in the new week and beyond.
"Oil is in control and that's OK, as long as we know what we want to buy," Cramer said.
Cramer's game plan:
Monday: Pepsi (NYSE:PEP) reports, and what happens after the release of numbers could present investors with a buying opportunity, Cramer said. Netflix (NASDAQ:NFLX) releases numbers, and observers will be looking at what the company unveils in terms of subscriber growth both domestically and abroad. IBM (NYSE:IBM) also presents results, and investors will be looking at how Big Blue is building up its cognitive and cloud computing efforts. Cramer warned "it's not a great set up for either stock."
Tuesday: Johnson & Johnson (NYSE:JNJ) reports results. Investors "want to see this stock go down so they can buy it," a bullish Cramer said. Goldman Sachs (NYSE:GS) also releases its quarterly details. Intel (NASDAQ:INTC) reports, and some are "nervous about it," he said. Seagate's (NASDAQ:STX) poor quarterly numbers sent a shock wave through tech. Cramer called Yahoo (NASDAQ:YHOO), also set to report, "a riddle wrapped in an enigma," given it's "for sale" or "not for sale" status.
Thursday: Alphabet/Google (NASDAQ:GOOG) (NASDAQ:GOOGL) might surprise, as well as Microsoft (NASDAQ:MSFT), which continues to grow its cloud business. Under Armour (NYSE:UA) details its last quarter. Cramer called Starbucks (NASDAQ:SBUX), Schlumberger (NYSE:SLB) and Visa (NYSE:V), all set to release results, "best of breed players that have delivered over time."
Friday: American Airlines (NASDAQ:AAL) "may have a very good quarter," Cramer said. All eyes will be on General Electric (NYSE:GE) and the company's transformation as it reports. Also reporting are Kimberly-Clark (NYSE:KMB), Caterpillar (NYSE:CAT), Honeywell (NYSE:HON) and McDonald's (NYSE:MCD). Cramer said the Golden Arches have "a lot more room to run here. It's a buy even up here (at its current price)."
Data Center Brilliance
Equinix has 145 data centers in 40 markets across five continents. CoreSite is a smaller, domestic-focused play with 17 high-performance centers in eight major markets, with two more centers under construction.
Their business proposition: Build reliable data centers and securing data for their customers. "They know how to keep the lights on and data flowing," Cramer said.
The tale of the tape:
Equinix's revenue growth has held steady, but saw some deceleration late last year with the strong dollar impacting overseas business. The REIT has since bounced back.
CoreSite is witnessing accelerating revenue growth, and given its U.S. focus "they don't need to worry about a strong dollar," Cramer said. CoreSite's fourth quarter revenue growth was 24.9%, its fastest year-over-year growth in more than four years. Shares are up 40% up in the last year.
As for dividends, Equinix has a history of increasing its payout. CoreSite raised its dividend 26% from 2015 to 2016.
Cramer gave CoreSite the edge. "Equinix has upside," he said. "I prefer CoreSite with its strong organic growth and its slight discount to Equinix."
Tax Time! What Company To Consider
April 15 was Tax Day (though the IRS granted a three-day extension this year). That compelled Cramer to closely look at two companies with exposure to the big event.
As many attempt to do their taxes, the effort is becoming more complicated. There's extra paperwork associated with the Affordable Care Act. And there's legislation that could make tax preparation more complicated, something which could benefit H&R Block, Cramer said.
H&R Block has about 15% of the tax industry preparation business. Intuit benefits from its online tax preparation business and is embracing cloud capabilities for its solutions. Cramer said of Intuit, "make no mistake, the small business segment is huge."
What sets Intuit apart from H&R Block is that it's "making money year round," while H&R Block's business is seasonal. Also, H&R Block's last quarterly numbers "frankly were downright scary," Cramer said. "The company massively missed estimates."
Cramer said once Intuit completes its transition to the cloud it will become a stronger company. And Intuit is taking share from H&R Block.
While Intuit appears expensive, Cramer said investors should give the company a look since "it's far more than a tax preparer."
Stockpile's Gift Card Revolution
Cramer introduced a twist to the gift card business. He highlighted Stockpile, which offers gift cards of stocks. A private company, Stockpile offers its stock gift cards in stores and online, and provides fractional shares with the one-time purchase of its cards.
Avi Lele, Stockpile's co-founder and CEO, said the idea behind the platform is to "keep it simple." Trades with the cards cost 99 cents.
Lele said 20% of users are children and teens. According to data presented during the show, 50% are under the age of 30.
Cramer suggested Stockpile "can revolutionize the way people give stocks to their kids."
Cramer took questions via Twitter to end his show.
The first was on Smith & Wesson (NASDAQ:SWHC), in which a viewer asked if the recent dip in the company's stock presents a buying opportunity. Cramer said he would rather go with Taser (NASDAQ:TASR), but the drop in stock price made Smith & Wesson an interesting speculative pick.
The next stocks were Nike (NYSE:NKE) and Under Armour (UA). Cramer said he thinks Under Armour reports a good quarter in a few days. Cramer said he's concerned about sluggish apparel sales and that mall traffic is down, but longer term, "I like either one of them."
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