Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday June 8.
12 Things To Look For In The Week Ahead: Ciena (NASDAQ:CIEN), Finisar (NASDAQ:FNSR), Texas Instruments (NYSE:TXN), Juniper (NYSE:JNPR), Michael Kors (NYSE:KORS), Biogen (NASDAQ:BIIB), Dell (NASDAQ:DELL), JPMorgan (NYSE:JPM), Kroger (NYSE:KR), Pier One Imports (NYSE:PIR), Apache (NYSE:APA), VFCorp (NYSE:VFC). Other stocks mentioned: Waste Management (NYSE:WM), Sallie Mae (NYSE:SLM), Whole Foods (NASDAQ:WFM)
Ciena (CIEN) has an analyst meeting. Ciena's management might say that spending is coming back.
Finisar (FNSR) reports earnings, and probably will not say great things.
Texas Instruments (TXN) gives a mid-quarter update, and needs to reiterate bullishness.
Juniper (JNPR) might have a disappointing analysts day.
Michael Kors (KORS) was on a tear, but now this recent IPO, which reports, seems as cold as ice.
Biogen (BIIB) is a good company selling a few points off its 52 week high. It should have a bullish analyst day.
Dell (DELL) has tried to orchestrate a turnaround, but its stock performance has been lackluster at best, as it is losing its core customers and is facing tough competition. Management will not sugarcoat earnings.
JPMorgan (JPM) CEO Jamie Dimon's testimony on Capital Hill is going to garner significant attention. JPM might be facing $5 billion in losses, but it is the first stock to buy if there is some resolution in Europe.
Pier One (PIR) has been stalled lately, but it has been in turnaround mode, and management on its conference call should discuss how the company continues to reshape its business.
Apache (APA) has an analysts meeting. It has been the best wildcat energy company, but the stock has been behaving badly, and Cramer doesn't think this trend will reverse in the near future.
VFCorp (VFC) has an analyst meeting, which is expected to be upbeat, but the stock might get punished anyway. If Kors reports a good number, Cramer might consider buying deep in the money calls in VFCorp.
The bottom line for the week ahead: if Europe reports progress and steps toward reform, it might be a time to buy stocks. If not, more caution is necessary.
Cramer took some calls:
Waste Management (WM) is a stock to hold onto, since the dividend pays investors to wait.
Sallie Mae (SLM) has a great book of business and is an "up" stock; "Own it right into the fear," said Cramer.
Westport Innovations (WPRT) has a red-letter week last week, which saw a 32% gain in the stock after it had begun the week 50% down from its highs. The company signed a deal with Caterpillar (CAT) to develop natural gas engines, and news that Royal Dutch Shell (RDS.A) is building natural gas fueling stations brought the stock price up. Westport is also working on developing engines for rails and mining trucks. When asked about competition from Cummins (CMI), CEO David Demers pointed out that CMI is a partner with WPRT on a joint venture, and CMI's solo development on a natural gas engine was not in partnership with WPRT because, as Demers explained, "There are better things for us to do than work with that particular (Cummins) engine." Demers believes the natural gas engine space is big enough for both Westport and Cummins. Cramer is bullish on WPRT, and would wait for a pullback before buying.
Following Brown-Forman's (BFA) earnings report, the headlines experienced a raging hangover. Without looking carefully at the information, it seemed BFA's earnings were a terrible miss. True, BFA reported a 3 cent earnings miss and light revenues, up only 1.3%, but the stock opened the following day up just 25 cents and closed up $4. Investors who looked carefully at all of the metrics could have bought the stock at the beginning of the day for a fantastic return. Organic sales were up 10% and operating income rose 13%. The earnings miss was caused by problems with foreign exchange rates and changes in a distributor after the company sold a winery business. "This quarter was too complicated to be captured by the headlines," Cramer said. The company has accelerating sales growth, up 9% this year, compared to 4% in 2011. Sales of Jack Daniels were up 12%, and BFA's flagship brand is gaining in popularity all over the world. Global sales were strong, even in Europe, where they increased 9%. Raw costs are low, and the company is using extra cash to buy back stock and reward shareholders. Cramer is bullish on BFA.
Cramer took some calls
Sturm, Ruger & Company (RGR) did not make numbers and is not a buy.
Gordman's Stores (GMAN) is a great play on off-price merchandise; the store sells its products at an average of 60% discount to department stores. The stock has a multiple of 10 with a 15% growth rate. GMAN is a great regional to national story, has just made a huge secondary offering, and is up 4.8% since the deal. Cramer would bless buying the stock, but would use limit orders.
U.S. Airways (LCC) may be a short-term trade as a spec, given the low price of oil, but Cramer adds, "It is not my cup of tea."
Cramer suggests buying Disney (DIS) for a child as his or her first stock. He would buy more on every dip.
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