Cramer's Mad Money - Papa's Got A Brand New Bag (5/8/13)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday May 8.

Papa's Got A Brand New Bag. Stocks discussed: EOG Resources (NYSE:EOG), Whole Foods (WFM), Disney (NYSE:DIS), Diageo (NYSE:DEO), Con Edison (NYSE:ED), Brown Forman (NYSE:BF.A), Beam (NYSE:BEAM), eBay (NASDAQ:EBAY), Boeing (NYSE:BA)

Mark Papa, CEO of EOG Resources (EOG) announced that the company has assets in a new shale find: The Delaware Basin. "Papa's got a brand new bag," declared Cramer, alluding to a James Brown song. EOG is perhaps the fastest growing oil company in the U.S. and already has substantial assets in the Bakken and the Eagle Ford. After reporting a smashing quarter and seeing a 9 point rise, EOG's stock went up an additional 2 points on an upgrade. While many think that Fed policy is artificially holding up the rally, Cramer thinks great CEOs like Mark Papa, Bob Iger of Disney (DIS) and John Mackey of Whole Foods (WFM) are also moving the market through their superior execution. Cramer thinks the stocks of all three companies are not done going higher.

Disney (DIS) has promptly addressed problems with its film business and, with its acquisition of LucasFilms, the company is set to make more blockbusters. There was "nothing but good news" in Disney's quarterly report. Whole Foods (WFM) seemed to have been slowing down after a lackluster quarter the last time around. Bears felt that growth had finally slowed for WFM and the health food supermarket chain was losing market share to competition. Instead WFM built new stores and reported a strong quarter. Cramer thinks WFM's store count could quadruple before it reaches saturation.

Cramer took some calls:

Diageo (DEO) is resting for now, but should go higher. Cramer also likes Brown-Forman (BF.A) and Beam (BEAM).

Con Edison (ED) is also resting after a remarkable move.

eBay (EBAY) is a stock that hasn't been giving prospective buyers a pullback to get into it. Cramer would wait for a dip to buy and thinks it is an excellent stock, regardless of concerns over proposed taxes for e-commerce.

Boeing (BA) has been a huge driver of the Dow. "It is the best in the industry. A terrific stock."

CEO Interview: Dan Fulton, Weyerhaeuser (NYSE:WY)

Weyerhaeuser (WY) is a REIT that owns the largest acreage of timberland in the U.S. The company is benefiting from the early innings of the housing rebound, since 75% of its business has exposure to homebuilding, and there is currently a shortage of homes. WY yields 2.6% and has returned 177% since last summer. The company beat earnings by 3 cents and revenues rose 30.6%. The stock has not moved significantly since this earnings beat, and Cramer thinks its Analyst Day on Friday could be a catalyst for an uptick in WY. CEO Dan Fulton said that California has been a key market and is in recovery mode. The company has a thriving business shipping lumber to Japan. Pulp prices were soft, but are starting to firm up. The rebuild post Sandy is likely to move the needle as more people receive insurance proceeds that will allow them to rebuild. Cramer is bullish on WY.

CEO Interview: Craig Bernfield, Aviv REIT (NYSE:AVIV)

Aviv REIT (AVIV) owns nursing facilities for those in need of full-time care. Aviv had its IPO in March, and has rallied 44% since. Aviv's distribution is about 5%. CEO Craig Bernfield commented that the industry is very fragmented, with only 10% of nursing homes owned by REITs; "it is a land of opportunity for us." Operators are performing well and are covering their rents. When asked about the 80% occupancy rates, Bernfield said this 80% is on the operator level, and, when looked at state by state, is around the average occupancy rate for each region. He added that, despite worries about government reimbursement for Medicare and Medicaid, the government has been raising this level for nursing facilities an average of 4% for year.


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