Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday June 13.
Ready for a Rally: Wells Fargo (NYSE:WFC), JP Morgan (NYSE:JPM), Research In Motion (RIMM), Salesforce.com (NYSE:CRM), Hewlett-Packard (NYSE:HPQ), Google (NASDAQ:GOOG), IBM (NYSE:IBM), Ingersoll-Rand (NYSE:IR), Emerson (NYSE:EMR), Eaton (NYSE:ETN), L-3 (NYSE:LLL), Owens Corning (NYSE:OC), Toll Brothers (NYSE:TOL), Costco (NASDAQ:COST), Wal-Mart (NYSE:WMT), Jones Apparel (NYSE:JNY), VF Corp (NYSE:VFC)
While Cramer has compared technical analysis to astrology, there is one technical method he considers foolproof; Standard & Poor’s Oscillator which tracks patterns of buying and selling in the market. A +5 rating indicates stocks are overbought and should be sold. A -5 is a harbinger of a potential rally. Cramer interprets Friday's dip to -6 as a strong indication of a rally. He would buy WFC, JPM, RIMM, CRM, HPQ, GOOG, IMB, IR, EMR, ETN, LLL, OC, TOL and COST. Cramer would avoid sectors that are overbought, such as gas and oil. Cramer reassured viewers that the rally will last for several days, so Friday's upturn will continue.
Another Wildcat: RAM Energy (RAME)
RAM is another of Cramer's wildcat drillers which is upping its production in new areas. The stock price should also increase with the expiration of 18.8 million warrants at a $5 price. The stock is covered by only four analysts, none of whom are from a major firm, and Cramer predicts the stock could rise to $8. Ram is a very speculative stock, warned Cramer, so he would use market orders and find a good entry point for Ram.
Speculation Friday: Sun Hydraulics (NASDAQ:SNHY)
Cramer would speculate with valve maker SNHY, which is producing more efficient valves selling at up to a 30% premium over the competition. Half of Sun's sales are overseas and it has 17% market share in the U.S. Sun has promising deals to produce electronically-controlled integrated valve system. It also has a clean balance sheet, and sparse analyst coverage. Cramer thinks Sun may be an attractive takeover target and it trades at a mere just 17.5 times its forward earnings with a 23.5% long-term growth rate. Cramer predicts Sun could rise from $37 to $48, but since it was up on Friday, he would wait for a good entry point.
Cramer was stumped on lightning round when callers mentioned Linn Energy and Brigham Exploration. After doing research, Cramer found Linn is the opposite of a wildcatter, since it drills in well-established areas, but its fat 10.6% dividend is good for conservative investors. While Brigham has a cutting-edge 3-D geoseismic imaging tool, the company is so preoccupied with its technology that its production is suffering and the stock has had a huge run. Cramer would be careful about Brigham.
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