Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program,Tuesday April 8. Click on a stock ticker for more analysis.
Continuing his series on Russian stocks, Cramer discussed WBD, a food company that has 34% market share in dairy, and is among the top three Russian producers of baby food and juice. The company is an attractive potential acquisition for Nestle and trades at only 18.5 times forward earnings in spite of its 35% growth rate. At this level, it is cheaper than Coke and Pepsi, noted Cramer and the company expects sales to be 88% above 2007 levels.
Tobacco might be bad for your health, but they are great for your portfolio, said Cramer. UST has been lagging behind other tobacco names Altria and RAI, because many feared that the latter two companies would step into the UST’s chewing tobacco space. However, this hasn’t happened, and Altria might acquire UST to keep up with other smokeless tobacco producers. The company plans to buy up 21.9 million shares, and Cramer commented, "A buyback this big could seriously increase earnings per share at a time when Wall Street is lowering its estimates on the company," Finally, Cramer likes UST for its secure 4.7% yield.
CEO Interview: Steven Farris Apache (NYSE:APA)
Discovery of three new wells in British Columbia brought up APA’s stock, but Steve Farris says the news is not yet bankable because the discovery has several challenges; the gas may be difficult to reach and if prices go down, the new discovery may be “marginal.” Farris added that natural gas is the cleanest burning fossil fuel. Cramer said CEO Steve Farris is “bankable” and Apache, which has increased 35% in just five months, “remains the best single natural gas play in the world.”
Cramer said he should have recommended closing positions in OMTR rather than telling viewers merely to take profits. Another e-mailer said she was thinking of giving up trading after losing a lot of money in Google. Cramer said if she had taken profits on rises in the stock, she would not have lost so much money. He added that investors who do not have time to research their stocks should invest in mutual funds. Cramer told another e-mailer X, NUE and STLD are all expensive; X is the biggest mover in the steel sector, and he would wait for a pullback before buying.
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