Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday January 25.
15 Things To Watch In The Week Ahead: Caterpillar (NYSE:CAT), Yahoo (YHOO), EMC (EMC), Ford (NYSE:F), Pfizer (NYSE:PFE), Amazon (NASDAQ:AMZN), Boeing (NYSE:BA), Qualcom (NASDAQ:QCOM), Fortune Brands (NYSE:FBHS), Manitowoc (NYSE:MTW), Beamis (NYSE:BMS), Berry Plastics (NYSE:BERY), Exxon (NYSE:XOM), Chevron (NYSE:CVX). Other stocks mentioned: Apple (NASDAQ:AAPL), United Technologies (NYSE:UTX), Honeywell (NYSE:HON), Masco (NYSE:MAS), Church & Dwight (NYSE:CHD), Procter & Gamble (NYSE:PG).
Caterpillar (CAT) is suffering from doubts about production, but Cramer thinks the market will forgive Caterpillar, and he would buy it on weakness, especially if it goes to $93.
Yahoo's (YHOO) earnings will be like a report card for the new CEO. Cramer thinks Yahoo could be an acquisition target for Apple (AAPL).
EMC (EMC): So many analysts have downgraded EMC that Cramer suspects it will disappoint. Cramer said he sold the position for his charitable trust, and urged viewers to lighten up on the stock ahead of the quarter.
Ford (F) was looking strong, but received a downgrade on Friday. Cramer is concerned Ford might disappoint. Although his general sentiment is to buy Ford, Cramer wants to hear what management says first.
Pfizer (PFE) is "breaking up and breaking out," since the announcement that it is spinning off its animal health segment into an upcoming IPO. Cramer likes the spin-off and he likes Pfizer, which he would buy on a decline.
Amazon (AMZN) has the Midas touch, and no matter what it says, people like it. However, Amazon can sometimes get hastily hammered after it reports earnings, but then recovers. If this happens, Cramer would buy AMZN.
Boeing (BA) is suffering from headlines about Dreamliner problems, and Cramer would stay away. For investors who want to be in aerospace, Cramer would buy United Technologies (UTX) or Honeywell (HON).
Qualcomm (QCOM) is probably the most important earnings call of the week. There are worries that the smartphone market might be saturated, and Qualcomm makes the chips for smartphones. Cramer would listen to QCOM's call for an indication of whether or not the market is really saturated.
Beamis (BMS) is a buy a head of its earnings if the stock price drops.
Berry (BERY) is a buy ahead of earnings if it declines in price.
Exxon (XOM) has run up, and Cramer would sell into any strength, because he doesn't think Exxon is going anywhere.
Chevron (CVX) has also run up, but unlike Exxon, is a buy on weakness, and has been a buy almost every time it has come in.
The Labor Department will report job numbers on Friday. Either way, the number might take stocks down slightly. If the number is good, there might be fears the Fed will raise interest rates.
Cramer took some calls:
CEO Interview: Dan Fulton, Weyerhaeuser (NYSE:WY)
Weyerhaeuser (WY) ran up significantly going into earnings, and the stock fell 2%, even though it beat earnings by 6 cents, reported revenues up 23.8%, and a 30% increase in housing starts. WY has run 36% in the last 6 months, and was ready for a pullback. Cramer thinks the stock is worth buying here, given its prospects domestically and in Asia. California has seen a dramatic turnaround, with housing sales increasing 80%. WY owns the most timberland in North America and has a large real estate segment. Cramer is bullish on WY.
Herbalife (NYSE:HLF): The Battleground Stock
After the infamous skirmish between Bill Ackman and Carl Icahn, it is abundantly clear that Herbalife (HLF) is more about egos than fundamentals, and it is best to stay on the sidelines. Bill Ackman has attacked Herbalife as nothing more than a fraud and a pyramid scheme, and thinks the stock deserves to revert to zero. However, Cramer doesn't think this will happen without a government investigation, since the company continues to make money. Carl Icahn, who owns a stake in Herbalife, brought up the possibility of a short squeeze. The two continued to "duke it out" verbally from there. The only takeaway is to stay away from Herbalife.
CEO Interview: T.J. Rodgers, Cypress Semiconductors (NASDAQ:CY)
Cypress (CY) makes memory chips for non-Apple smartphones, and has been struggling lately. It reported better than expected numbers after announcing to the downside. CY might seem cheap, because it trades in the single digits, and has a dividend of 4.4%. There seem to be more orders for chips, but the turn has not come fast enough. CEO T.J Rodgers said, "We are the tail on the dog that gets whipped around." The company is becoming leaner, and management is making structural cuts and getting rid of divisions. Cramer would do more research before buying CY.
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