Cramer's Mad Money - Kilroy Is Here (4/8/10)

by: Miriam Metzinger

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

Spotting a Market Trend: TJX (NYSE:TJX), Bed, Bath & Beyond (NASDAQ:BBBY), Wynn Resorts (NASDAQ:WYNN), EOG Resources (NYSE:EOG), Goldman Sachs (NYSE:GS), Ross Stores (NASDAQ:ROST), Target (NYSE:TGT)

Even though Cramer has been critical of The Street's pessimism over Greek debt, at least it is predictable. Investors can profit even from the market's despair, if there is a pattern. For instance, Cramer noticed that, consistently the market has been opening low because of the European market's obsession with the problem in Greece. Even good American stocks haven't been seeing any upside in the morning. However, once the European market closes, American equities start rising again.

For instance, spectacular same-store sales numbers barely moved related stocks. Cramer suggests buying on good news early in the day, before it is priced in and watching the stock rise in the afternoon. Bed Bath and Beyond (BBBY) beat The Street's estimates by 13 cents and yet opened down until the afternoon, when the stock moved up 3 points. TJX (TJX) beat its estimates by 12% and raised guidance, but still opened down until it moved up later on the day. Wynn Resorts (WYNN) jump from $81 to $85 on an upgrade didn't occur until the European markets were closed. EOG Resources (EOG), Goldman Sachs (GS), Ross Stores (ROST) and Target (TGT) all acted the same way. While none of these companies are strongly connected with Greece, they are all affected by the country's economic problems, and Cramer would buy the bargains.

California Real Estate: BRE Properties (NYSE:BRE), Essex Property Trust (NYSE:ESS), Macerich (NYSE:MAC), Regency Centers (NYSE:REG), PS Business Parks (NYSE:PSB), Kilroy Realty (NYSE:KRC)

With bears predicting a collapse of commercial real estate, and given that California has been one of the hardest-hit states during the recession, one would think that investing in California commercial real estate would be a bad idea. However, Cramer sees a turnaround both for the Golden State and for commercial real estate. Silicon Valley is already having a better year than in 2009 and San Diego is leading the California apartment market. Cramer would invest in the apartment space with BRE Properties (BRE) and Essex Property (ESS), both of which yield 4%. Macerich (MAC), the biggest mall owner in the Western States, yields 6% with the majority of the dividend paid in stock. Regency Centers (REG) has also been running malls successfully and yields close to 5%.

Cramer's favorite California real estate space is office and industrial, and he chooses PS Business Parks (PSB) as a conservative investment, but prefers more speculative Kilroy Realty (KRC). Kilroy is virtually a pure play on California offices, and it has the widest gap between its past (93.1%) occupancy rate and its current occupancy (82.8%), which means it has the most room to grow. Kilroy's 4.3% dividend should grow along with the business, and looking at the company's 2 year chart, Cramer predicted "years of huge appreciation ahead."

CEO Interview: Glen Tullman Allscripts-Misys Healthcare Solutions (NASDAQ:MDRX)

Allscripts (MDRX) is up 159% since Cramer's January 2009 recommendation, but with healthcare reform, the stock has more room to run. The company has made $105 million in sales and has seen 25% year-over-year growth. New requirements that medical records be electronic is good news for MDRX, and in three years, doctors and hospitals will pay penalties if their records are not electronic. Tullman cited the advantages of electronic over manual records in the quality, speed and efficiency of care that can be provided. The CEO announced that MDRX's applications can run on the iPhone, Blackberry and iPad. Cramer says he believes in Allscripts' story and the stock is going to go higher.

CEO Interview: Paul Wright, Eldorado Gold (NYSE:EGO)

Paul Wright defended Eldorado's (EGO) reputation as a conservative gold miner, and stated the company is consistently delivering on its promises. Higher production costs in 2010 will pay off with an expected 250,000 addtional ounces of gold. Wright cited the company's success in China, the biggest consumer and producer of gold. However, since China ranks only 7th in the amount of gold reserves, Chinese production will not exceed demand. With gold harder to find and produce, world demand for gold should increase as well. Cramer says he is still backing Eldorado.


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