Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday March 14.
11 Things To Watch In The Week Ahead: Adobe (NASDAQ:ADBE), Oracle (NYSE:ORCL), FedEx (NYSE:FDX), First Solar (NASDAQ:FSLR), Paylocity (NASDAQ:PCTY), Q2 Holdings (NYSE:QTWO), Lennar (NYSE:LEN), Tiffany (NYSE:TIF), Darden (NYSE:DRI). Other stocks mentioned: UPS (NYSE:UPS), Williams-Sonoma (NYSE:WSM), Radian (NYSE:RDN), Genworth (NYSE:GNW), KapStone Paper (NYSE:KS), International Paper (NYSE:IP)
The Dow sank 42 points on Friday, and it seems the entire market is moving to the beat of the Ukrainian crisis and China's economic doldrums. Cramer would look for opportunities in the week ahead to buy into weakness, preferably beaten down restaurant stocks, biotechs and retailers. He would avoid buying industrials, because they are hit with the double whammy of the Ukraine and China. Another thing that is discouraging about the current market is the lack of pin action. Williams-Sonoma (WSM) reported an excellent number, but no other retailers were affected. A rally in one stock might be confined to only that one stock. Cramer discussed things to look for in the week ahead.
Chinese Property Prices need to be tame. If they are too high, the Chinese government will try to rein in the banks. If they are too low, there will be further worries about the Chinese economy.
Adobe (ADBE) and Oracle (ORCL) may report great earnings, but there may not be pin action for other tech stocks. If there is pin action, that is a promising sign, but if not, Cramer would stay on the sidelines.
FedEx (FDX) was rallying, but lately has been marking time. Cramer prefers UPS (UPS) because it has to play catch-up. FDX's management usually gives a good read on the economy. If UPS doesn't move up on FDX's report, Cramer would consider buying some.
Fed Meeting: There might be a small rally if the report is positive.
First Solar (FSLR) recently reported a "squishy" quarter, but has an analyst meeting on Wednesday, and FSLR tends to move higher on these meetings. If FSLR is down earlier in the week, Cramer recommends buying some ahead of the analyst meeting.
Lennar (LEN) is facing negativity about its sector with talk of home sales drying up and downgrades in the industry. LEN's management should provide data to clarify the state of the industry.
Existing Home Sales: This is a significant housing data point.
Pricing of IPOs: On Thursday and Friday, there might be announcements of the pricing of the following IPOs: Paylocity (PCTY), Q2 Holdings (QTWO) and Versartis. Cramer expects these deals to be "red hot" and would try to get in on the IPOs.
Darden (DRI) reports, and it needs the announcement of a new CEO. If this happens, the stock may rise 10%.
Tiffany (TIF) is likely to rise on its earnings report, but the action is not likely to affect other retailers.
Cramer took some calls:
King Digital Entertainment (KING) produces the hugely successful Candy Crush game and is going to have its IPO. However, some worry that King is going to be another Zynga (ZNGA), which dropped 5% on its IPO and is down 45% from its first day of trading. Cramer thinks King is fundamentally different from Zynga. It has 70% mobile exposure, while Zynga had just 20% at the time of its IPO. Revenues for King grew 10% last year, and it has more unique users than Zynga had when it came public. Zynga traded at 58 times earnings with lower growth prospects, but King's multiple will probably be around 13. Cramer would get in on the King Digital deal.
Cramer took some calls:
Groupon (GRPN) is a good company. At $8 it can go to $10, "but I would never enshrine it in someone's long-term portfolio," Cramer said.
Salesforce.com (CRM) has been crushed lately. It was a great quarter, but the cohort of high valuation tech has been hurt by geopolitical issues. CRM is a buy.
Boeing (NYSE:BA) Will Take Off
Boeing (BA) is under attack from several news stories discussing a possible inventory glut, cracks in the Dreamliner's wings and questions over the missing plane incident in Malaysia. Cramer believes in CEO Jim McNerney and points out problems in the past that were solved by its management. Cramer cast doubt on the allegation of an inventory glut, given strong backlog for the Dreamliner. The cracks in the wings will be fixed promptly, and the issue with Malaysia is pure speculation. Cramer would use the decline as an opportunity to buy BA into weakness.
CEO Interview, Lars Bjork, Qlik Technologies (NASDAQ:QLIK)
Qlik Technologies (QLIK) provides analytics that are fast and easy to use. Clients can analyze data directly and collaborate and share findings more easily. Qlik's performance has been uneven after it reported a disappointing quarter, but the company is introducing a new generation of software which may mean a new cycle. CEO Lars Bjork discussed the company's "highly appreciated" product, which enables clients to track trends, manage inventory and monitor stores.
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