Cramer's Mad Money - Raise A Glass To Brown-Forman (1/22/14)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday January 22.

Raise A Glass: Beam (NYSE:BEAM), Diageo (NYSE:DEO), Brown-Forman (NYSE:BF.A). Other stocks mentioned: Red Robin (NASDAQ:RRGB), Brinker (NYSE:EAT), SunOpta (NASDAQ:STKL)

The alcohol business is booming, particularly hard liquor and wine. Santori is buying Beam (BEAM) at a premium. Cramer discussed two other liquor companies, Diageo (DEO) and Brown Forman (BF.A). The latter is Cramer's choice because it is smaller, has a U.S. business that is just as strong as its overseas business and specializes in its Jack Daniels brand. Whiskey is undergoing a kind of renaissance reminiscent of the popularity of vodka a few years ago, with new products and special flavors. BF.A tends to pull back after it reports, so Cramer would buy it on a decline.

Cramer took some calls:

Red Robin (RRGB), Brinker (EAT): Cramer thinks these restaurants have declined too much and might be worth buying.

SunOpta (STKL) is a buy on the healthy eating trend.

Apple (NASDAQ:AAPL), eBay (NASDAQ:EBAY), Netflix (NASDAQ:NFLX), IBM (NYSE:IBM), Continental Resources (OTC:CTLR), EOG Resources (NYSE:EOG), Linn Energy (LINE), Cabot Oil & Gas (NYSE:COG), Juniper (NYSE:JNPR), Ciena (NASDAQ:CIEN), F5 Networks (NASDAQ:FFIV), Cliffs Natural Resources (NYSE:CLF), Vale (NYSE:VALE), Nu Skin (NYSE:NUS)

Cramer discussed what moved stocks on Wednesday. Apple (AAPL) bears are concerned about China, but the stock was affected more dramatically by stakeholder Carl Icahn's criticism of Apple. eBay (EBAY) delivered an in-line number with miserable guidance. Icahn might join the board of directors for eBay and suggest a split up. Netflix (NFLX) reported great earnings and more subscriptions. The only thing going for IBM (IBM) now is that Warren Buffett owns a stake, but IBM is the opposite of the kind of stock Buffett usually likes. Buffett has said he prefers companies whose business model will stay the same for decades, but IBM needs to innovate. The price differential for oil was good for refiners, but with news of a new pipeline, that differential may narrow. This is good news for Continental Resources (OTC:CTLR) and EOG Resources (EOG). Even though there is a natural gas glut, the cold weather and demand for gas from chemical companies should create upside for Linn Energy (LINE) and Cabot Oil & Gas (COG). There is rising demand for telco equipment, and this has been good for Juniper (JNPR), Ciena (CIEN) and F5 Networks (FFIV).

Cramer took some calls:

Cliffs Natural Resources (CLF) and Vale (VALE) are both in a troubled industry, and Cramer would stay away.

Nu Skin (NUS) is not a buy.

CEO Interview: Moshe Gavrielov, Xilinx (NASDAQ:XLNX)

Xilinx (XLNX) makes programmable chips and recently beat earnings by one cent on slightly weaker revenues and lower gross margins. The stock got slammed, but on further examination, it is clear Xilinx did very well on key metrics. Chip sales increased 79% yoy and XLNX has 70% market share for its smaller chips. The stock has risen 9% since Cramer recommended it last month. CEO Moshe Gavrielov is confident that XLNX can maintain its market share. Cramer thinks XLNX is going higher.

Coach (COH), Norfolk Southern (NYSE:NSC), CSX (NYSE:CSX), United Technologies (NYSE:UTX), Boeing (NYSE:BA)

Cramer discussed ways in which expectations move stocks. The street wasn't expecting much from Coach (COH), but expectations weren't low enough for the stock to avoid getting crushed on awful same store sales. Because CSX (CSX) disappointed, many feared the worst for Norfolk Southern (NSC), but the latter stock went higher because some of its numbers were decent. United Technologies (UTX) pre-announced a less than stellar quarter, but the shading down of expectations was good for the stock, which rose on earnings. Boeing (BA) was brought up higher on the wings of UTX.


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