Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday April 19.
CEO Interview: Klaus Kleinfeld, Alcoa (AA)
Alcoa (AA) is proof that one should never write off a great American company. The stock, which had been performing badly, reported a better than expected number. The technology behind AA's comeback was its aluminum-lithium compound which makes airplanes 10 times less heavy, but stronger. Lighter planes and autos use less energy, and there has been a major rise in demand for AA's product for companies who want to meet energy emissions standards and save money on fuel. Its aluminum wheel is 45% lighter, and uses less energy. CEO Klaus Kleinfeld says aluminum is "infinitely recyclable"; 75% of the aluminum that has been produced is still in use. The company is developing aluminum casing for computers instead of plastic to make recycling of these goods easier. Cramer is positive on Alcoa.
Sometimes the price of a stock matters more than earnings. Cramer took the example of YUM (YUM) that has risen 45% so far this year. Business in China is strong for YUM, its Taco Bell business is turning around and raw costs are under control. However, that didn't stop YUM from selling off after its decent quarter. The fact that YUM had run up mattered more than its actual earnings.
IBM (IBM) was another stock that got punished after it reported decent earnings. The Street claimed to be disappointed by revenue growth, but that metric hasn't mattered as much to the stock in the past as earnings. The real issue is that IBM has risen 75% in the past year, and it was time for IBM to take a breather.
Cypress Semiconductor (CY) was slashed because it provides chips for touchscreen for non-Apple (AAPL) products, and anything that is tech but not associated with Apple sometimes gets punished. Even though CY reported a better than expected quarter, the stock got hit. However, after the stock declined, it rose a bit.
However, on the flipside of the equation, Peabody (BTU), which has fallen 61% reported bad numbers, but not bad enough; the stock rallied $2. Because Peabody has dropped so much, its shares were given a bonus.
CEO Interview: Chuck Bunch, PPG Industries (PPG)
PPG Industries (PPG) rallied after an amazing quarter, with a 12 cent earnings beat and a 6% rise in revenues. PPG produces chemicals and coatings used in a variety of industries. The stock has risen 141% since Cramer got behind it in 2009, however, it is only up 8% year over year, and has more room to rally. The company in the past has talked about how Asia has been a major driver, but now with the huge decline in natural gas prices, the company is seeing great returns in the U.S., especially because of increased demand in the automotive industry, aerospace and construction. Chuck Bunch talked about how the fall of natural gas prices has been a "real boon" for his business and stated, "I am more bullish than I have been in many years." Cramer is also bullish on PPG.
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