Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday September 14.
10 Things To Watch in the Coming Week: Salesforce.com (NYSE:CRM), Fedex (NYSE:FDX), Manchester United (NYSE:MANU), Ascena (NASDAQ:ASNA), Bed Bath & Beyond (NASDAQ:BBBY), Tibco (NASDAQ:TIBX), Oracle (NASDAQ:ORCL), KB Homes (NYSE:KBH). Other stocks mentioned: Schlumberger (NYSE:SLB), EOG Resources (NYSE:EOG), Gilead (NASDAQ:GILD), Celgene (NASDAQ:CELG), Marathon (NYSE:MRO), Fossil (NASDAQ:FOSL)
Salesforce (CRM) Dreamworks Conference begins Tuesday, and should attract 80,000 attendees. Cramer would buy the stock on Monday ahead of the conference with deep in the money calls. He favors the November 140 calls that are trading between $22 and $23. The advantage to these calls is that they go out several months until the company's earnings report, so if CRM does not get a pop on the conference, there is plenty of time to catch a gain, since the fall is the best season for tech.
FedEx (FDX) reports. Even though it was hit on a terrible pre-announcement, the stock has bounced back. Cramer would buy FDX on weakness following earnings, because it is too good a stock to be kept down for too long.
Manchester United (MANU) reports. Cramer thinks this stock is a "train wreck," in spite of its popularity. Cramer would not buy the stock, and suggests selling it ahead of the quarter.
Deutsche Bank's Energy Conference is a good way to gauge which energy stocks are attracting the attention of money managers. Cramer thinks Schlumberger (SLB) and EOG Resources (EOG) might be worth buying on the conference.
Ascena (ASNA) reports and should discuss how its Charming Shoppes acquisition is going.
Bed Bath & Beyond (BBBY) didn't have strong earnings the last time around. Investors who want to play BBBY should do so with September 65 calls for $6.
Darden (NYSE:DRI) has been one of the "oddest" stories. Its earnings reports have not been great, but the stock has been bought because if its dividend. However, it currently yields just 3.7%, and Cramer doesn't think it will report good enough news this time around.
KB Homes (KBH) has had a huge run and Cramer doesn't think it will give numbers strong enough to sustain the rally.
Cramer took some calls:
Marathon Oil (MRO) is going higher.
Fossil (FOSL) is at its fair value right now, and Cramer thinks any additional tick up will be froth. He would sell.
The Dow's Wasted Opportunity: Kraft (KFT), United Health (NYSE:UNH), Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Cisco (NASDAQ:CSCO), IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT), Hewlett Packard (NYSE:HPQ), Intel (NASDAQ:INTC), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC).
The Dow wasted an opportunity taking Kraft (KFT) off and adding United Health (UNH), especially since the Dow contains too many healthcare stocks. While the performance of Apple (AAPL) might overwhelm the index, Google (GOOG) and Amazon (AMZN) would have been better choices. The Dow's tech holdings: Cisco (CSCO), IBM (IBM), Microsoft (MSFT), Hewlett Packard (HPQ), Intel (INTC), aside from IBM, represent 20th century tech, with too many PC-levered stocks. While IBM has a strong software consulting business, much of the Dow's tech holdings are no longer relevant. In terms of financials, Wells Fargo (WFC) with its strong mortgage segment, would make more sense in the Dow than Bank of America (BAC).
CEO Interview: Charif Souki, Cheniere Energy (NYSEMKT:LNG)
Since adoption of natural gas as a bridge fuel in the U.S. is going slowly, companies have had to find ways to export the fuel through creating Liquified Natural Gas [LNG]. Cheniere (LNG) has been seizing on export opportunities and has contracts with the major players in the oil and gas space. The company has finished raising the equity it needs with 3 secondaries since last December. The stock has risen 105% since Cramer got behind it in June of last year. CEO Charif Souki discussed his strategy to encourage Japan to import natural gas, since it plans to cancel its nuclear energy program. Cramer is bullish on LNG.
For speculation Friday, Cramer discussed Dynavax (DVAX), a $4 highly speculative stock that just might have the best vaccine for Hepatitis B, a condition that affects 350 million people worldwide. The disease is notoriously difficult to treat, infects the blood and can often lead to liver failure. DVAX's vaccine has shown to achieve optimal antibody levels in 95% of patients after 2 shots, compared to an 89% improvement after 3 shots of the competitor's vaccine. The age range for the drug was extended from 18-40 year olds to 18-70. This is a sign that the drug is perceived as safer than initially expected, which would improve the odds for an FDA approval.
The stock is risky, and is not for the faint of heart. Cramer thinks DVAX could double with an FDA approval, or could get cut in half if the vaccine is not approved. Therefore, would-be investors should do substantial homework before buying DVAX and consider using limit orders.
Mad Mail: StoneMor Partners (NASDAQ:STON), KinderMorgan Partners (NYSE:KMP), Tango (NASDAQ:TNGO), Dunkin' Brands (NASDAQ:DNKN), McDonald's (NYSE:MCD), Hekmann (HEK), Union Pacific (NYSE:UNP), Abbott Labs (NYSE:ABT)
StoneMor Partners (STON) is the only "deathcare" MLP, and the company provides a wide range of burial services. Its 10% yield is a red flag, and it cannot sustain it. For high yielding MLPs, Cramer prefers Kinder Morgan Partners (KMP).
Tango (TNGO) is in the profitable telecommunication spending space, but the stock has low cash flow and is making acquisitions to cover for its slow growth. Cramer would not get behind this battleground stock.
Hekmann (HEK) is a great play on domestic drilling. Cramer is bullish.
Union Pacific (UNP) is a buy, especially if it drops a few points.
Abbot Labs (ABT) is splitting, and Cramer would buy both parts.
Jim Cramer's Action Alerts PLUS: Trade right alongside a Wall Street pro! Start your 14-day FREE trial today.
Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.