Cramer's Mad Money - 4 Battleground Stocks (11/26/13)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday November 26.

4 Battleground Stocks: Hain Celestial (NASDAQ:HAIN), Herbalife (NYSE:HLF), Green Mountain Coffee Roasters (NASDAQ:GMCR), Alcoa (NYSE:AA), Silver Wheaton (SLW), Sociedad Qumica y Minera de Chile (NYSE:SQM), Deere (NYSE:DE)

Cramer discussed 4 stocks that inspire skirmishes on the street. Hain Celestial (HAIN) is up 2,400% since it came public 20 years ago and has risen 52% for the year. The company is a major supplier of healthy and organic brands to health food stores and supermarkets. Yet Hain was criticized for making too many expensive acquisitions. Cramer agrees with CEO Irwin Simon that these acquisitions will ultimately pay off, given the fact that the healthy food category is seeing increased demand.

Herbalife (HLF) is another stock that inspires strong feelings. Bill Ackman wants to try to prove that HLF is nothing more than a Ponzi scheme. The bears and bulls are equally passionate, and time will tell what the result will be. Green Mountain Coffee Roasters (GMCR) has seen its financials improve and is releasing a new and improved Keurig, but the bears are not convinced, and claimed its latest earnings beat was "low quality." Alcoa (AA) is diversifying away from its commoditized aluminum business, but it isn't getting credit from all of the analysts. Cramer says he is somewhat biased in favor of all four of these battleground stocks, particularly Hain and Alcoa; the latter should be bought now.

Cramer took some calls:

Silver Wheaton (SLW): "It keeps going down and isn't worth a lot of money."

Sociedad Qumica y Minera de Chile (SQM) seems to be oversold, but Cramer doesn't like the sector. He would rather buy Deere (DE), which is undervalued.

Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), VFCorp (NYSE:VFC), Deckers (NASDAQ:DECK), (NYSE:CRM), Zulily (NASDAQ:ZU), Illinois Tool Works (NYSE:ITW), The Container Store (NYSE:TCS), Five Below (NASDAQ:FIVE)

Many are not trusting this market, and smart money is upset because retail investors are making money on winning stocks and not so difficult to understand themes; that is not "supposed' to happen. Amazon (AMZN) and Netflix (NFLX) are benefiting from the cooler weather. The street doesn't like Amazon because it isn't making much money, but it is investing in its business. VFCorp (VFC) and Deckers (DECK) are two other stocks that are not "supposed" to be doing well. (CRM) hasn't topped yet and Hain Celestial can afford to do even more acquisitions.

Cramer took some calls:

Zulily (ZU) is overvalued. Some "overvalued" stocks besides ZU Cramer might consider would be The Container Store (TCS) or Five Below (FIVE).

Illinois Tool Works (ITW) has an "unbelievable" earnings stream and may attract a few bids.

Apple (NASDAQ:AAPL) For The Holidays. Other stock mentioned: Nuance (NASDAQ:NUAN), Twitter (NYSE:TWTR)

Apple (AAPL) moved up 9 points with few paying attention. Not too long ago, Apple was criticized as a company that had lost its way. Even when it reported a decent quarter, analysts criticized performance in China and questioned its use of cash. Cramer thinks Apple had some great missed opportunities to make acquisitions, like Twitter (TWTR) before it came public, but Apple is making up for lost time with its new acquisitions and aggressive buyback. Apple is innovating again with well-loved products that should sell well over the holiday season. Apple just may be the cheapest stock in the Nasdaq and one of the best places to be from now until the end of the year.

Cramer took some calls:

Nuance Communications (NUAN) is a battleground stock. People think Apple will buy it, but Cramer doesn't think so. He would sell Nuance.

CEO Interview: Mark McLaughlin, Palo Alto Networks (NYSE:PANW)

The cyber security bull market is back and better than ever. Palo Alto Networks (PANW) has seen a 13% gain since Cramer last spoke to CEO Mark McLaughlin last month. The company delivered a 7 cent earnings beat on revenues that rose 49%. Cloud based software grew 73%. While PANW is the go-to company for security through the cloud, it is still seeing strong hardware sales. The federal government is a client of PANW, and the company was not dramatically impacted by the government shutdown. Cramer is bullish on PANW because of all cyber security companies, "It has the best technology."


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