Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday February 13. Click on a stock ticker for more analysis:
Exxon (XOM), Conco-Phillips (COP), Schlumberger (SLB), Ultra Petroleum (UPL), Apache (APA), Anadarko (APC), XTO Energy (XTO), Arch Coal (ACI), Peabody Energy (BTU), First Solar (FSLR), Applied Materials (AMAT), MEMC Electronics (WFR), Mosaic (MOS), Deere (DE), CSX (CSX), Chicago Bridge and Iron (CBI), Jacobs Engineering (JEC), Shaw Group (SGR)
Contrary to popular belief, retail did not cause the rally in the Dow and the Nasdaq, but the culprit was oil, which is "the umbrella that makes everything work." Not only did oil stocks like XOM, COP and SLB do well, but Cramer says oil will fuel other stocks the energy sector such as UPL, APA, XTO, ACI and BTU, as well as alternative energy plays FSLR (which reported a better-than-expected quarter and "historically fabulous upside guidance"), AMAT and WFR. Cramer considers ag stocks as members of the energy sector, given the development of ethanol, and would look at MOS, DE. He added rail such as CSX, and infrastructure, CBI, JEC and SGR will also rise with the oil umbrella.
Conviction Stock: FMC Corp (FMC)
A rally one day may spell a down day the next, and it is hard to know what a stock is really worth in this mad market, said Cramer. He was looking for a "conviction" stock which could give a "little bit of certainty" about what it was worth, and came up with FMC, a soda ash company in an underexposed sector which is currently enjoying a "silent bull market." Soda ash is used to make glass, brick, water softener and most importantly, agricultural chemicals. Cramer says he feels certain that FMC will reach $70, a 30% upside.
CEO David Steiner, Waste Management (WMI)
Cramer asked David Steiner how he was able to raise prices in such a difficult economic climate, and Steiner gave credit to the company's three year old pricing program which has yielded earnings growth and expanding margins. "Why in the world would we change our pricing philosophy at this point in time?” he asked. WMI has returned over $7 billion to shareholders in the past five years and has earmarked $850 million towards a share buyback program. Cramer says WMI is a "consistent, no surprise deliverer."Related: Josh Wolfson discusses WMI's environmental projects.
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