Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday April 5.
9 Things To Watch Next Week: Supervalu (NYSE:SVU), Alcoa (NYSE:AA), Titan Machinery (NASDAQ:TITN), Google (NASDAQ:GOOG), JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Constellation Brands (NYSE:STZ)
Chinese Inflation Number should indicate whether or not the Chinese economy is under control. If there is a good number, the Chinese might cut interest rates.
Payroll Employment Data will be released on Friday, but will not be "digested" by the market until Monday, because there will be no trading on Friday. Cramer thinks the number will be in-line and won't matter too much.
Supervalu (SVU) is an underperforming, overleveraged supermarket that is near its 52 week low. While the dividend is a bountiful 6.7%, it could be cut; "I don't want you anywhere near this stock," said Cramer.
Alcoa (AA) is suffering from overproduction of aluminum, especially in China. Alcoa is making cuts in capacity, but these are unlikely to make an impact until the next quarter, and Cramer thinks AA will make a sub-par impression.
Titan Machinery (TITN) is a small company that should be a gauge for other agriculture and machinery plays.
The Federal Reserve's Beige Book should indicate the thinking and the direction of the Fed, although it is not as important as a statement from the Fed Chairman himself.
Google (GOOG) has become a far flung empire with many moving parts, but Cramer thinks earnings will be strong. He calls Google a "tech value play" which has mobile, social networking and cloud.
JPMorgan (JPM) has already released information about its performance in a letter from CEO Jamie Dimon to shareholders. On another program, Cramer characterized this letter as "whiny," but the company is doing pretty well, and could be doing better if it weren't hampered by regulations; "I wouldn't be surprised if it goes higher."
Wells Fargo (WFC) has an amazing mortgage business, which is getting stronger, and its lack of exposure to Europe is a distinct advantage.
Cramer took a call:
Constellation Brands (STZ) reported disappointing earnings and guidance. Part of the problem was the stock was talked up before the quarter, and expectations were high.
CEO Interview: John Richels, Devon Energy (NYSE:DVN)
Devon (DVN) is an undervalued oil and gas producer that is devoting 90% of its capital expenditure budget to developing oil and liquids. The company has a reputation of having been a natural gas play, but it is changing its stripes, and plans to increase oil production by 24%. Devon trades at a 22% discount to its net asset value. CEO John Richels discussed its assets in the Barnett shale, where it yields liquid-rich natural gas, and its exposure to oil in the Kline field in Texas, close to the Permian Basin. When asked about Devon's $7 billion in cash, Richels replied that the company is planning to grow organically, and has the money to spend on making the most of its assets. When asked if Brent crude could go much higher, Richels responded in the affirmative, but noted that when oil goes above $120, there is a tendency toward demand erosion. Devon has significant assets in Canada, and Richels expressed disappointment that President Obama did not approve the Keystone Pipeline, since that might lead to exporting of fuel that could be used in the U.S. Cramer thinks Devon is cheaper than its peers.
Is Apple (NASDAQ:AAPL) Too Powerful? Other stocks discussed: Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM)
Does Apple (AAPL) have too much power? There are some concerns that huge moves in Apple are distorting the actual performance in the Nasdaq and the S&P 500. Apple certainly towers above other stocks in both indexes, and counts for 20 times more than any other stock in the S&P 500, since the weighting is by market cap. Apple is up 56% so far this year, with Microsoft (MSFT), in second place, up 12% and IBM (IBM) up 10%. The S&P 500 is up 11.2% for the year, and while it is true that Apple is largely responsible for this move, without Apple, the S&P 500 would still be up 9%. The Dow is up 7% for the year, and Apple doesn't influence the Dow. So is Apple too powerful? Cramer's conclusion was there is no doubt Apple has a huge influence on the averages, but even without Apple, the S&P 500 and Nasdaq would be doing just fine.
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