Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday June 12.
Range Resources (RRC)
Cramer continued his series on wildcat drillers with Range Resources, which is down to $65 from its high of $76, has 2.2 trillion feet of proven reserves and may have 16 to 21 trillion cubic feet of Marcellus Shale. The company’s production guidance was raised recently to 19% from 15%. Range’s finding costs are about $1 cheaper than those of its competitors, and Range is down after its secondary offering; “Range Resources should never have gotten this cheap,” Cramer said, “and if you want a large, established, now-undervalued play for Wildcat Week, RRC is the one for you.”
Sell Block: ConAgra Foods (CAG), Pepsi (PEP), Coca-Cola (KO), Altria (MO)
Rising raw costs are hitting many companies hard, but Cramer singled out ConAgra as a stock to feature on his Sell Block after its CEO said “inflation input costs are going through the roof.” As the price of corn rises 76%, wheat 39% and just about everything else jumping in price, Cramer’s former pick is going to “get eaten alive by raw costs,” and he would switch to food plays which seem to be handling the dire situation with more grace. Cramer says Pepsi, Coke and Altria are weathering the raw costs storm.
CEO Interview: Ben Hulburt, Rex Energy (REXX)
Just two days after his initial recommendation, Rex Energy has jumped 6.2%, and Cramer invited Ben Hulburt on the program to discuss its expansion in Marcellus Shale, Pennsylvania, New Jersey and New York. Hulburt says business is “booming” but added the quantity of gas produced may challenge the local infrastructure. Hulbert says Rex is committed to increasing production further and Cramer stood by his earlier recommendation.
CEO Interview: Michael Ward CSX (CSX)
Cramer says he is appalled that two hedge funds, TCI and 3G Capital, are attempting to oust stellar CSX CEO Michael Ward as an underhanded attempt to unlock value in the company. A judge in a lower court found that the hedge funds illegally seized a huge position in CSX, but did not have the authority to cancel their votes. Ward is headed for the New York Court of Appeals and in spite of the heavy influence wielded by the hedge funds, feels he can beat those who testified falsely under oath. Under Ward’s leadership, CSX’s earnings per share is in the top 5% in the S&P 500, and CSX has the most aggressive guidance in the industry, with 18-21% projected growth through 2010. Ward says he is prepared to fight and is not finished unlocking value for CSX.
Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round, Stop Trading and his Wall Street Confidential Picks.
Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.
Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com
