Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday February 24.
15 Momentum Monsters: Amazon (NASDAQ:AMZN), Chipotle Mexican Grill (NYSE:CMG), Facebook (NASDAQ:FB), Google (NASDAQ:GOOG), Michael Kors (NYSE:KORS), Netflix (NASDAQ:NFLX), Priceline (PCLN), Regeneron (NASDAQ:REGN), SolarCity (SCTY), Stratasys (NASDAQ:SSYS), Tesla (NASDAQ:TSLA), Twitter (NYSE:TWTR), Under Armour (NYSE:UA), Workday (NYSE:WDAY), Yelp (NYSE:YELP)
Stocks seem to be in bull-market mode again, but this can be worrying because of concerns about global growth. Cramer's strategy is to double down on momentum stocks. This might seem risky, but Cramer explained that money managers will be desperate for momentum in a growth-starved environment and will go for the fastest movers. Cramer has advocated this strategy in the past, and his index of momentum stocks soundly beat the performance of the S&P 500 for the same period.
1. Amazon (AMZN) is a stock so great, it resists valuation. It is going up on revenue growth.
2. Chipotle Mexican Grill (CMG) managed to deliver a 9% increase in same store sales while other food stocks are lagging. It should cash in on the healthy eating trend.
3. Facebook (FB) keeps increasing users and is loved by advertisers.
4. Google (GOOG) is the cheapest stock on the list and has its "fingers in so many pies."
5. Michael Kors (KORS) is the go-to name for high-end retail and delivered double digit same-store sales while defying the shorts.
6. Netflix (NFLX) is an "opportunity" stock because its potential for growth far outweighs its market cap.
7. Priceline (PCLN) still has room to grow, because Priceline is the way people plan their travel. This is especially true with the higher ticket fares caused by airline consolidation.
8. Regeneron (REGN) is still moving, thanks to the strength of its macular degeneration drug.
9. SolarCity (SCTY) reported a disappointing quarter, but with Tesla (TSLA) CEO Elon Musk as chairman of SCTY, Cramer thinks the company will soon find its way back.
10. Stratasys (SSYS) is in the "hyped" sector of 3-D printing, but Cramer thinks it is best of breed. It refused to drop after a downgrade, and this is a good sign.
11. Tesla is a stock driven by its stellar car. Not only does it have a great product, but it is moving into China and has a CEO who knows how to underpromise and overdeliver.
12. Twitter (TWTR) has a one-of-a-kind service that continues to grow in popularity.
13. Under Armour (UA) managed to shake off the scandal about its apparel for Olympic skaters and has bounced back. UA is a "technology" sports apparel company. One caveat is that it trades at a rich multiple of 62, so it had better not stumble.
14. Workday (WDAY) is a software-as-a-service company that is changing the way companies do business and is helping clients streamline operations.
15. Yelp (YELP) is creating an online yellow pages, and is a stock money managers are willing to pay up for.
5 Ways the Bears Can Attack The Bull Market
With the indexes on the rise, the bulls are celebrating, but this may be a temporary event. Cramer outlined 5 warning signs of a bear raid.
1. Valuations are generally too high
2. 2013's leaders, like autos and consumer goods, are now laggards
3. Hot stocks are trading too high.
4. Companies are paying too much for acquisitions.
5. There have been 2 weak employment reports in a row.
CEO Interview: Daniel Rice, Rice Energy (NYSE:RICE)
With the hideous winter weather, natural gas went from glut mode to its highest price in 5 years. This is good news for Rice Energy (RICE), which had its IPO recently and has risen 10% since it came public. The company drills in the Marcellus shale, but is valued only for these assets; it also drills in the Utica shale. Rice is a low-cost producer and has a high level of productivity. CEO Daniel Rice says the company emphasizes rate of return more than commodity prices.
Facebook and WhatsApp
Some on the street balked at the $19 billion Facebook paid for WhatsApp, but Cramer thinks FB could reasonably have paid up to $30 billion for the company. WhatsApp is growing rapidly and is popular with younger users. Now that FB controls WhatsApp, it can monetize growth with higher fees and it can integrate it with higher quality ads. Cramer thinks Mark Zuckerberg, Tesla CEO Elon Musk and Google CEO Larry Page are the great CEO visionaries of this era.
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