Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday July 20. Click on a stock ticker for more analysis:
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Greed is Bad: Caterpillar (NYSE:CAT), Google (NASDAQ:GOOG), Texas Instruments (NASDAQ:TXN), NVidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Corning (NYSE:GLW), Apple (NASDAQ:AAPL), Bunge (NYSE:BG), Celgene (NASDAQ:CELG), Cummins (NYSE:CMI),
Level 3 Communications (NYSE:LVLT), Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM), Countrywide Financial (CFC), Amazon (NASDAQ:AMZN), Boeing (NYSE:BA), Colgate (NYSE:CL), ConocoPhillips (NYSE:COP),
Cramer said his Game Plan is a bit different this week; he is listing stocks reporting next week, but wants viewers to buy only one (Corning) before its report. While he is bullish in general and still believes the Dow will hit 14,500 by the end of the year, he admits things have been a bit precarious with the disappointing Google and CAT quarters, and suggests taking some profits to avoid being dangerously greedy. Cramer calls Google a "show me" company which has to prove that it can monetize its new hires, or face a decline. While he had faith in CAT for its international exposure, the culprit was "housing, which is so horrible that it brings down anything it touches." However, he thinks the stock will regain its momentum and eventually reach $120. Cramer discussed next week's earnings reports:
Monday: Cramer would buy TXN, his favorite semiconductor, if there is a decline after the report. He suggests selling some NVDA, which is up 6 points, and would buy some back if it gets knocked down by AMD's analyst meeting.
Tuesday: CFC is "the biggest and best view" of how housing really is .... "its really bad," and remarked that the Fed will only notice when a bank, broker or major homebuilder goes under. "Hobbled horseman" Amazon will be viewed negatively no matter what it says, so Cramer would buy on a decline.
Wednesday: BA's consistency during the selloff was impressive, said Cramer who predicts the stock is going to 120. He added if it drops to below $100 before its report, he might buy. While CL is a "classic weak dollar" play, it is a bit high. While COP may face a downgrade, Cramer would buy it on a decline because he predicts it will reach $120. Cramer called GLW "the gold star" and said it is the only stock he would buy ahead of its quarter next week, because doesn't think the company would raise its dividend and buy back stock right before a major disappointment. Cramer would sell some Apple since "hogs get slaughtered."
Thursday: Since Bunge rose after last quarter's decline, Cramer predicts a repeat performance and would buy Bunge when it drops. Cramer likes Celgene long-term and recommends picking some up when it declines. Although he thinks Cummins is not finished with its run, he would take some profits, especially after CAT's upset. No one will like Level 3 Communciation's quarter, said Cramer, and he would buy this stock which is a great play on internet video.
Friday: "Wake up and smell the gasoline!" said Cramer, remarking it is greedy to stay in CVX and XOM without selling a little.
French Foreign Legion of Oil Companies: Total S.A. (NYSE:TOT)
Cramer continued his series on European stocks with Total, a massive integrated oil with strong production and refining assets in 27 countries. He thinks TOT is as good as Exxon, better than Chevron, and is cheaper than other major oil companies. He also thinks TOT is better and cheaper than European oils BP and Shell. TOT has a 13% stake in Sanofi Aventis, the French drug company, and Cramer hopes TOT will sell some and use the cash for "oil-related activity."
On Speculation: Tessera Technologies Inc. (NASDAQ:TSRA)
Cramers speculative pick for Friday is TSRA, which specializes in miniature technologies, which is a hot area since 80% of the Dram memory industry uses TSRA's technology. TSRA licenses its technology, so it has no inventory to move, and since Microsoft's Vista will be memory-intensive, there will be more demand for TSRA's technology. While the company is involved in a lot of lawsuits, TSRA is winning the cases and protecting its intellectual property. Finally, the 20x multiple is cheap considering its 31% growth rate.
Cramer congratulated Rodgers on a "magnificent quarter" and added that CY would be undervalued at $800 million if it spun off its power systems and services company, SunPower. Rodgers responded that while investors sometimes give him "heat" about holding on to SPWR, "the overall value of the company is reasonable." Cramer called Rodgers a visionary and a moneymaker.
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