Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday July 9.
Cramer outlined top performers so far this year, and asked viewers to vote on which one would perform the best in the second half.
1. Arena Pharmaceutical (ARNA) has rallied 225% on the strength of the approval of its obesity drug, the first drug of its kind to be approved by the FDA in ten years. While the drug won't come out until next year, it is expected to produce $2 billion in revenue, equivalent to the company's present market cap. Cramer thinks ARNA is a takeover target.
2. Onyx Pharmaceutical (ONXX) is up 76% because of its treatment for blood cancer. The stock might also be a takeover candidate, and has a successful medicine for kidney and liver cancer.
3. US Airways (LCC) has rallied 75% on plummeting fuel prices, and might rise higher if oil stays low. LCC is also benefiting from the disarray among its competitors.
4. Mellanox Technology (MLNX): this Israeli semiconductor play has had a surprise run of 69% after it handily beat analyst expectations.
5. Pharmacyclics (PCYC) is not the best stock in the list, but its 97% gain cannot be ignored. It has a large number of short sellers, and while its Phase 3 drug for leukemia may be approved, it hasn't performed well up until this year.
Church & Dwight (CHD), Colgate-Palmolive (CL), Johnson & Johnson (JNJ), Kimberly Clark (KMB), Procter & Gamble (PG), Clorox (CLX), Walgreen (WAG), PepsiCo (PEP), Wellpoint (WLP), Campbell Soup (CPB), Dunkin Brands (DNKN), Dean Foods (DF)
Cramer discussed consumer goods stocks that have seen gains this year, and should benefit from falling commodity prices:
Church & Dwight (CHD) has rallied 25%.
Colgate (CL) has risen 13%.
Johnson & Johnson (JNJ) has been a terrible performer, but has a new CEO who may turn the company around. JNJ has a 3.6% yield and the company should either streamline its operations or break itself up.
Kimberly Clark (KMB) has gained 15% year to date and has a 3.5% yield.
Procter & Gamble (PG) is not well-run, but has a 3.65% yield to pay investors to wait for CEO Bob McDonald to step down. Cramer thinks McDonald's departure would create a huge upside for PG's shares.
Clorox (CLX) has gained 8% and has a 3.5% yield. Its costly acquisition of Burts Bees is paying off.
Walgreen (WAG) is a stock that has gotten hammered, but may have some upside, at least for the long-term.
Dunkin Brands (DNKN) has risen 36% so far this year.
Dean Foods (DF) has seen a 42% return year to date.
PepsiCo (PEP) yields 3%, has risen 5% since January, and has more upside.
Cramer took some calls:
Wellpoint (WLP) has made a good acquisition. "Congratulations to management," Cramer said.
Campbell Soup (CPB) was right to make its recent acquisition, and should see value from the deal.
1. General Mills (GIS) has emerged from its worst commodity cost crisis in years and has little exposure to Europe. The dividend was raised 8% to its current 3.4% yield, and the company is improving its yogurt offerings. Expectations are low enough to beat easily.
2. Dollar General (DG) has replaced Dollar Tree (DLTR) as Cramer's favorite dollar store pick, because of DG's aggressive expansion into California. DG has risen 30% so far this year, and its growth rate and same store sales are strong and should continue to go higher.
3. Abbott Labs (ABT) is breaking itself up into a high-yielding pharma business and a rapidly growing medical products segment. Both companies will have plenty of upside.
4. ConEdison (ED) yields 3.9%, and is a power transmitter not a power generator, so unlike some other utility companies, shouldn't face problems with EPA regulations. The company has boosted its yield for 38 consecutive years and will benefit from the fall of natural gas prices.
5. Verizon (VZ) has a 4.5% yield and strong management. VZ does consistently well, even on days filled with European panic.
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