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Jim Cramer's Ultimate Growth Stocks for 2012, which boast "the kind of rapid yet consistent...

Jim Cramer's Ultimate Growth Stocks for 2012, which boast "the kind of rapid yet consistent growth that’s coveted in an environment where economies around the globe seem to be slowing." But buy only on a pullback: AAPL, SBUX, CMG, ROST, AGN, CELG, LULU, MNST, NKE, MCD.
Comments (37)
  • Look, at this stage of the game, you get what you pay for folks!
    If you want to give the original "Mr. Pump & Dump" any more of a stage, I suppose that's your prerogative!

     

    Risk is MASSIVE to the downside here,
    you finally have the almighty APPLE looking like it may just succumb to Sir Isaac Newton's principles!

     

    This is no game kids!
    Deleveraging into a "DEPRESSION" while test the resolve of every man woman and child of this great country!
    Be good and good to each other, that's the way forward!
    It is all about "YOU", The Individual!
    No "Social Justice" / "Collective Salvation!"

     

    Jerry
    19 Apr 2012, 06:02 PM Reply Like
  • The lackluster economic growth that plagued much of the 1970s resulted in Wall Street promoting the "Nifty Fifty" (stocks with high growth and huge valuations.) By 1983, the Nifty Fifty crashed as much as 90% from their previous sky-high valuations.

     

    Cramer should name his favorite high-growth stocks the Shifty Fifty, in honor of his tendency to flip-flop his opinion when one the growth stocks crash (while often not whispering a peep about his prior opposite recommendation).
    19 Apr 2012, 06:03 PM Reply Like
  • What happened to NFLX... A Cramer "buy buy buy" at $290...? momo chasing clown
    19 Apr 2012, 06:22 PM Reply Like
  • Made it out of NFLX just in time. Luckily the dog woke me up and I had a laptop handy near the bed. Got out in time to still make $20 a share.

     

    When I did my income tax, got reminded Cramer cost me over $1800 last year.
    19 Apr 2012, 06:52 PM Reply Like
  • Not to mention Cramer's call on November 7th that AAPL was just "another stock" with Steve Jobs gone and although it didn't mean it couldn't go higher, he said it's "no Google."

     

    Then at the recent peak near $640 on April 9th, he called it his top growth pick and that it was the "Greatest Growth Stock of Our Lives".

     

    Cramer is a momentum investor - period. The only reason he did well at his hedge fund was he was chasing tech stocks in the 90s, culminating in his now famous presentation in March 2000 that investors should own nothing but tech stocks.

     

    If one listens to this charlatan, they deserve to lose everything.

     

    Disclosure: I own AAPL and look to add under $535.
    19 Apr 2012, 07:58 PM Reply Like
  • Even Cramer's term "Ultimate Growth Stocks" should serve as a warning. I don't think Cramer is as excitable as January 2000, when he top-ticked the internet bubble with his frothy "Winners of the New World" speech. So maybe the market has another 5-10% before the Ultimate Growth Stocks come crashing back to reality.
    19 Apr 2012, 06:25 PM Reply Like
  • HERE IS WHEN THE APPLE MEETS NEWTON
    19 Apr 2012, 06:27 PM Reply Like
  • Apple is a little bit of a different animal from the rest of these. It has a p/e around 16. It also has over $100 per share in cash. Barring a complete collapse in earnings back to last years levels, which is highly unlikely considering Q1 estimates are for $9-$10 per share v. last year's Q1 of $6.40, there's not that much room for it to fall. These others could see rapid multiple compression that could crush the stock prices.
    19 Apr 2012, 07:16 PM Reply Like
  • Exactly. Too many buyers hungry to get in into this growth stock. I increase AAPL position. I like IPGP too as growth stock. And MAKO.
    19 Apr 2012, 07:26 PM Reply Like
  • I couldn't agree more with CautiousOne85. Take this temporary pullback in APPL as a tremendous buying opportunity. The Shorts are in a panic to drive down this stock, even though it is one of the best performing stocks in ages, albeit it has corrected a bit in last week or so..it is still up tremendously..and wait till Tuesday's earning announcements to see what this company's stock price can achieve.
    19 Apr 2012, 07:24 PM Reply Like
  • Here is my pick for 2012

     

    Bofa (BAC)

     

    Here is the target by year end $17
    19 Apr 2012, 08:02 PM Reply Like
  • Thats not going to happen. I like BAC only at the right price but I would definitely sell once it reaches 10. Won't go much further from there. 11 at best.
    22 Apr 2012, 02:54 AM Reply Like
  • Good grief, give Jim Cramer a break. He has a show five days a week and is expected to give his educated opinion. No one can claim to know 100% how a company's stock will do in this crazy market. And for newcomers like me he's great at summarizing why the market is acting a certain way, particularly at the beginning of his show. Otherwise I’d have vacated last year.

     

    He does make the dry business of investing entertaining, with his hip-hop/pop music, silly costumes and sound effects. I think his advice on CMG, MWE, HAIN, WFM, AAPL, NLY and LVS are spot on. Yes, he’s made mistakes, and admitted them.
    19 Apr 2012, 09:37 PM Reply Like
  • Cramer has gotten more than his share of breaks in life. You might see only the CNBC persona of Cramer. To balance your perspective, perhaps you should check out views expressed by his former employees or by the (admittedly biased) blog authors on DeepCapture.

     

    Cramer is a skilled writer. If you think that he admits all or even most of his mistakes, you might not have been paying close enough attention. Perhaps his worst flaw is that he often gets caught up in the emotion of the market--whether up or down. He lives off momentum.

     

    When Cramer's high-priced momentum favorites change direction in a bear market, can you rely on Cramer to get you out of them before they wipe out all your gains?

     

    If you're counting on Cramer's market timing advice, or if you would like some examples of Cramer apparently rewriting history, have a look at this webpage:

     

    http://bit.ly/HWSFYx
    20 Apr 2012, 04:03 AM Reply Like
  • Didn't Cramer say sell AAPL the night before it went up $30? Wow, glad I learned not to listen to him.
    20 Apr 2012, 12:23 PM Reply Like
  • I've been following Creamer pretty closely since the spring of 2008. He definitely has his limitations as a "stock picker" - without a doubt. His recommendation of NovaGold [NG] as a gold play in the fall of 2010 has to be one of the single worst pieces of investing advice ever presented on CNBC. Hess... Citi Bank (in 2009)... Juniper... They were all Cramer Clunkers.

     

    However, in my opinion Jim Cramer does present two fairly valuable services. He is constantly urging people to take control of their own investing decisions and his show presents information on various companies that may slip under many people's radar but are good investments nonetheless. For example, Cramer has consistently pushed Apple as a stock since the summer of 2008 and I've been rewarded with a cost basis of $185 a share by listening to his opinion. Kinder Morgan [KMP] is another example of a stock that took off years ago and has made me quite a bit of money.

     

    Cramer's greatest weakness, in my opinion, is that he seems to frequently fall victim to the "cult of personality" on certain CEO's that make him wildly overestimate the future stock performance of many different organizations. Ford is a perfect example. In December 2010, Cramer was so worked up that I thought he was ready to support Alan Mullaly for sainthood. Cramer stated "Ford is going to $35". Ahhh... not quite. Sometimes it just gets ridiculous. Someone really has to tell him to cool it on that.

     

    Here's the bottom line: Love him or hate him, Cramer performs a service. He's not always right and he's not always wrong. If you buy the stock of ANY company without doing your own research, you deserve what you get because it's a roll of the dice. You might as well be taking stock advice from your dentist. However, there are snippets of profitable information to be gleamed from "Mad Money" if you are willing to keep an open mind and do your own research later.
    20 Apr 2012, 11:58 PM Reply Like
  • WisPoker: You gave a good assessment of Cramer's tendency to fall in love with CEOs who have some recent success and a good story (and who are not worried what being on his TV show might do to their reputation).

     

    I don't agree that his program is valuable for the average viewer. Most viewers would be better served putting money in a balanced index fund with dollar cost averaging. Because of Cramer's hyper-emotional tendencies and his microscopic attention to stock market movements, it's a good bet that he'll panic at the moment of maximum pessimism when the next severe "surprising" bear market occurs as a result of the on-going deleveraging economic cycle. He frothed and overhyped tech stocks at the absolute top of the internet bubble. He seems inextricably drawn to popular assets experiencing parabolic price rises--just as an insecure and jealous teenager is compelled to buy the latest fashion fad.

     

    He completely missed out on the best buying opportunity in decades for stocks like TJX and ROST and Berkshire Hathaway--and many other solid low-valuation non-tech stocks that were left for dead at the exact top of the Nasdaq bubble. He scoffed at the very stocks that the best money managers in the world were picking up in 1999--allowing them to have positive returns in the years since then--not just try to "Get back to even".

     

    Cramer's success in investing occurred in his hedge fund days (a small fund compared to the better known funds). He had many people working with him, and he was likely using trading methods that cannot be duplicated by non-institutional investors--many of which are...controversial.

     

    As a picker of stocks for longer term purposes, I don't think he could outperform a broad market index over a full bull-bear cycle. With the high tax rates of short-term capital gains and the draining effect of trading fees and spreads, it's even less likely that he could outperform.

     

    As a simpler substitute for Cramer, a person could simply invest in a large-cap growth stock ETF with dollar cost averaging.
    21 Apr 2012, 02:57 AM Reply Like
  • Excellent, I agree completely.
    22 Apr 2012, 03:00 AM Reply Like
  • I learned not to use stop-loss trading from Cramer. I learned "don't chase a stock" from Cramer. I learned to use limit orders, rather than market orders from Cramer. I learned to do homework, to watch trends, to not sell while panicked, to buy low and sell high, and the most important lesson of all, "never become emotionally attached to a stock," which advice I didn't follow and was hurt badly (hung on to DECK watching 200% gains go down the drain).

     

    My stock picks are my own ideas, even DECK, and LVS which he always put down (while favoring WYNN) until recently, but he's good at punching out the basics to new investors. I see the hype but that doesn't negate all value of his show.

     

    One bit of advice Cramer gives that I never listen to is "if over 50 do not invest in stocks." Working full-time keeps me from watching closely but I've nearly doubled where I started and see no sense in following that advice. I assume he’s being cautious, as am I.
    22 Apr 2012, 04:02 PM Reply Like
  • Cramer has had a history of chasing some stocks up and panic-selling at the bottom. Perhaps he has finally learned his lesson, but I doubt it. Often it seems that the more a stock gains, the greedier he gets. The lower it goes the more he hates it.

     

    Cramer usually seems to want to buy high, sell higher. His idea of buying low often seems to mean that you should wait for a tiny pullback in a stock that has had a huge percentage gain over a period of at least three months.

     

    Some corrections: Cramer did not always dislike Decker's. He liked it after it had become established as a hot momentum stock, and recommended it all the way to the top. In fact, Cramer was hyping it on his show just before it peaked at $119 and fell off the cliff. Now that the momentum spell is broken, he's not fond of it. I believe that he liked it for quite a while, so it was one of his better calls for people who were lucky enough to buy it when he was first recommending it (rather than at $119).

     

    Long story short: Cramer usually likes a stock that has good price momentum and strong growth (revenue or earnings). If the momentum or growth declines, he changes his view on the stock. This is more or less the core of the method of William O'neill. (I'm simplifying here.) By the way, some people who measure stock-picking methods believe that the O'neill method outperforms other methods for picking stocks.

     

    The great thing about the internet is that it provides a historical record of what pundits like Cramer say. Check the internet's historical record rather his recollection of history. The two are sometimes different.
    23 Apr 2012, 05:20 AM Reply Like
  • I remember Cramer's "CANDIES" Chipotle, Apple, Netflix, Deckers, Intuitive Surgical, Express Scripts and Salesforce.

     

    I already had DECK (seeing Uggs on nearly every woman walking in NYC) but hearing him cheer it gave me support to hold it during those rough patches not due to Deckers. CANDIES did well for a very long time. Why should he continue to plug a stock when the company is struggling? He's no magician but does a fairly good job of helping us to keep our gains. If I had taken his advice more to heart "Pigs get slaughtered" or "Take some off the top and go buy yourself a cashmere sweater," I wouldn't have held on to DECK watching my gains shrink day after day, hopefully hanging on for another surge that never came. It's our own fault if we don't sell while way ahead and not doing our own homework.
    27 Apr 2012, 10:52 PM Reply Like
  • I subscribe to Cramers Action Alert Portfolio. It's up 15 percent this year.

     

    I made 10k on his recommendation to buy AIG three weeks ago.

     

    He make me money last year too.
    19 Apr 2012, 10:11 PM Reply Like
  • I hope you decided on the purchase and not JC. He brings stuff to the attention, one makes a decision that either makes money or not. We are responsible, not him - whether gain or loss.

     

    I bought AA today after I saw Klaus on his show. I won't blame Cramer if I lose money on it but have the feeling I won't.

     

    To the growth stocks: if you have to wait for a pull back to buy (recommendation) then they are not good. A growth stock grows until it doesn't - to buy on a pull back might be dangerous actually.
    19 Apr 2012, 10:24 PM Reply Like
  • I heard somewhere aluminum is a kind of marker on how the economy is doing, so AA's great earnings is welcome news.

     

    As to your last paragraph: No stock ever keeps going straight up. Pull backs occur for all kinds of reasons, i.e., Europe going through its throes, giving us a better entry point. I don't always wait but I think he's trying to say the market is so volatile these days, we may as well wait - better time to buy comes sooner than later. ;-)
    19 Apr 2012, 11:02 PM Reply Like
  • You might want to just invest in an low-cost index fund.

     

    The WSJ had an article last year that stated Cramer beat the market by a cumulative 0.9% over the 9 years since he had his ActionAlerts portfolio - and that assumes no mgmt fees and excludes even the ActionAlerts annual subscription.

     

    Sure, Cramer may give you a couple good ideas, but a monkey throwing darts will too.

     

    For Cramer's Top 4 Dow stocks for 2012, he avoided picking any tech or financial stocks, the year's two best sectors. I guess Cramer needed to see AIG go up 25% before he took notice. :-)
    19 Apr 2012, 11:25 PM Reply Like
  • I guess you got lucky. Some of his picks were rotten. Like MOTR for example. buy buy buy at 20... now its at a dollar. I guess he's only human
    20 Apr 2012, 12:26 AM Reply Like
  • I hate to dent your enthusiasm, but I just checked the performance statistics for Vanguard's mutual funds. The mid- and large-cap growth funds at Vanguard are up between 13-16% year-to-date.

     

    Cramer nearly always picks mid- and large-cap growth stocks, so you're reaping the rewards of being in a sector that is currently outperforming other sectors. The problem is that this sector will grow cold as the bull market ages and turns to bear market. And you'll likely end up underperforming the market by the end of the cycle based on your narrow focus on mid/large growth stocks.
    20 Apr 2012, 04:37 AM Reply Like
  • 15% is not a great performance. He should have done that in the 1st two months. He keeps buying really bad and good stocks. BRCM, DVN, ESV. FCX. PRU, SWK, STI, and WY. He should have been sold IAU, ETN, PRU, and ESRX. Maybe replace those with WLP, CSX, FLR, and CVX.
    22 Apr 2012, 03:05 AM Reply Like
  • Isn't AAPL a tech stock? Cramer has been pushing that heavily for over 3 years. He also liked ADBE and CRUS which made me money last year. He drifts in out of sectors, depending which ones he believes have their time in the sun. When he thinks banks are hot he likes WFC or stresses buying regional banks, like now. I think he knows best when it's a good time or not to buy tech, financials, oil, etc. Wish I'd listened to him when I bought solar, Chinese oil and automobile, and other money losing stocks, thinking I knew best.
    22 Apr 2012, 04:16 PM Reply Like
  • Sorry, but Cramer actually said in November that AAPL was "just another stock" when it was $399 after Jobs passed away. He said GOOG was the better investment.

     

    Guess which one has done better since then?

     

    Not surprisingly, Cramer jumped back into AAPL after it started doing well again. The guy is a charlatan and momentum player who jumps onto whatever is doing well. He rarely if ever turns less bullish near peaks - remember when he famously told investors to buy only tech in late Feb 2000?

     

    http://bit.ly/IetJJA
    22 Apr 2012, 04:36 PM Reply Like
  • sorry, I misunderstood your comment, so replied below inappropriately. However, thought he liked MSFT and WFC now!
    22 Apr 2012, 04:44 PM Reply Like
  • There are two reasons to watch Cramer:
    1) He is very entertaining
    2) Listen to his education Not his stock picks. If you listen to his education and do your own homework you'll make out just fine.
    19 Apr 2012, 10:19 PM Reply Like
  • I should have read to your comment first. I wrote similar note above in replying to someone's comment. Agree.
    22 Apr 2012, 04:18 PM Reply Like
  • Cramer is probably right more than wrong. But, you need to perform your own analysis and stay away from the high multiple stocks. I fault him for two things- His comment that Apple is just another stock (now he claims it is the stock of our generation was a bad call. And his call on Netflix- multiple was way too high and he continued to tout it. Even I new better than that. He has done a good job of educating a large portion of investors on MLPs. I was in before he started touting them and I agree he is spot on with many of them.
    20 Apr 2012, 02:54 AM Reply Like
  • As for AAPL I feel emotion and sentiment are ruling the price. I believe a lot of people are getting out in anticipation of earnings. People are scared they may lose their profit. I own just a couple of hundered shares with an avg. price of 330 or so and I'm letting it ride. If I'm going to bet on a company let it be one that makes terrific products that are in demand, has about 100 billion in cash with little to no debt and has proven itself over and over again, not to mention their cap. size #1. Their products just blow people away I guess I could have sold covered calls but I don't want to lose the stock even at 700.- I believe that it will reach 1000+ within a year or so. Long on AAPL!
    20 Apr 2012, 01:22 PM Reply Like
  • I hope you are right. However, I think that is way too optimistic. While I would buy Apple at any price under $550, I think it's more likely that the year-end price is closer to maybe $750. That would be about a double in 2012. Nothing to complain about there.
    21 Apr 2012, 12:07 AM Reply Like
  • Like WisPokerGuy, I think $1,000 in a year is much too aggressive, despite some sell-side analysts using that number to get attention.

     

    AAPL was a bargain when it was under 10x forward P/E, but given the constant competitive concerns, I think the likely forward P/E will be roughly 12x as the company still needs to prove it's ability to innovate post-Jobs. That P/E overhang will be around for the next 2-3 years IMHO.

     

    If calendar 2013 EPS is $54 and excess after-tax cash addback is $47, my target is $695 at year end or a nice 20% upside. I plan to add more under $535 (30% upside).
    22 Apr 2012, 01:10 PM Reply Like
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