Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program,Friday March 28. Click on a stock ticker for more analysis.
Goldman Sachs (GS), Apple (AAPL), Research in Motion (RIMM), Wal-Mart (WMT), Costco (COST), Schering-Plough (SGP), Kellogg (K), Pepsi (PEP), Coca-Cola (KO), U.S. Steel (X), Potash (POT), Textron (TXT), Target (TGT), Chesapeake Energy Corp. (CHK)
Cramer is not too optimistic going into the earnings season, and thinks the credit crisis will continue to take its toll on financials, tech, retail, and he is even doubtful mining and oil stocks will pull it off this quarter. He noted GS only had a marginal gain after a solid earnings report. Apple is the only tech stock Cramer has confidence in and he would sell even RIMM on any gain. He is not too excited about retail, but may consider WMT and COST on a dip as well as Target at $49. In the energy sector, he thinks only CHK will rise. Cramer continues to believe in food and drug stocks, including SGP, K, PEP, KO, and believes X, POT and TXT, will report solid quarters.
AMAG Pharmaceuticals (AMAG)
Biotech did well during the recession in the 90s, and Cramer likes speculative biotech AMAG which produces Ferumoxytol, a safer and easier way to deliver iron to dialysis and anemia patients. While there has been some negativity, including an uninformed downgrade of the stock following the FDA’s rejection of another iron medication on safety concerns peculiar to that drug, Cramer believes there is nothing hindering Ferumoxytol’s approval, since it soared on positive information. He would buy AMAG also because it is cheap.
Enterprise Products (EPD)
There are few investments more secure than unjustly beaten down stock with generous yields, and EPD, with a 6.9% dividend yield, fits the description. EPD makes pipelines for natural gas, a sector Cramer especially likes. The trouble began for EPD when a few expansion projects were delayed, and the stock price was sent down. In addition, fund managers sold the stock, sending EPD down further in what Cramer terms “artificial selling.” EPD has recently experienced aggressive insider buying with the CEO purchasing 170,000 shares. Cramer is confident the projects will be completed this year, pipeline volume will increase and the stock will rebound.
CEO Interview: Randy Harl, Willbros (WG)
Although WG missed its earnings, Rany Harl attributed the slip to “legacy projects” which cost the company, but Harl raised estimates and is confident because of WG’s visibility and backlog. The estimated $180 billion that will be spent globally on pipeline construction until 2012 will mean an “awful lot of business” for WG. Willbros has great prospects in the U.S. and Canada, and since it is a late-cycle play, current volatility in commodities will make little difference for long-term contracts. Cramer said The Street punished WG unfairly.
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