Cramer's Mad Money - June Was Busting Out All Over (6/30/14)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday June 30.

June Was Busting Out All Over: Tesla (NASDAQ:TSLA), FireEye (NASDAQ:FEYE), (NYSE:CRM), Workday (NYSE:WDAY), 3D Systems (NYSE:DDD), Stratasys (NASDAQ:SSYS), PPG Industries (NYSE:PPG), Treehouse (NYSE:THS), Hain Celestial (NASDAQ:HAIN), Bank of New York Mellon (NYSE:BK), Micron (NASDAQ:MU), Norfolk Southern (NYSE:NSC). Other stock mentioned: GoPro (NASDAQ:GPRO)

The Dow fell 25 points on Monday, but the underpinning action is "fabulous." June is usually slow, but it was a winning month for the averages in 2014. The Nasdaq was supposed to be the "Achilles' heel" of the markets, but its most overvalued stocks dropped prior to June, and rallied for the month. Tesla (TSLA), FireEye (FEYE), (CRM), Workday (WDAY), 3D Systems (DDD) and Stratasys (SSYS) were slammed mercilessly prior to the quarter, but are now the leaders. PPG Industries (PPG) is acquiring a Mexican paintmaker, and PPG rallied 6%. There was nothing surprising in the deal, and it is remarkable that the stock of the acquirer rallied. Treehouse (THS) also rallied on an announcement of an acquisition. Hain Celestial (HAIN) rose 3% on the news. Activist investor Nelson Peltz is taking a large stake in Bank of New York Mellon (BK); Cramer noted that when Peltz takes a stake in a company, the stock continues to rise for days afterward. Micron (MU) and Norfolk Southern (NSC) were both upgraded on Monday.

Cramer took a call:

GoPro (GPRO) it is going higher, but some of the move has been missed.

Who Cares About Inflation? Stock mentioned: Boeing (NYSE:BA)

The bears think inflation is raging, and the Fed is oblivious. However, the worry is about inflation in prices of raw materials, but the inflation that hurts the market is wage inflation, which is not happening, as wages remain stagnant. Intense competition in retail has made it hard to raise prices, so inflation is absent there. Cramer thinks the raw material prices will peak and resolve into more reasonable levels. "I'm not going to fret about food and housing inflation," said Cramer.

Boeing (BA): In spite of headwinds, Boeing is going higher.

CEO Interview: Tim Timken (NYSE:TKR) Timken Co.

Timken (TKR) is splitting itself up; Timken Steel will trade under the symbol TMST. CEO Tim Timken said that the company thought about splitting up several times, but now seems to be the time for the segments to operate separately. Timken Steel will provide low-cost steel to its parent company Timken and a host of other industrial clients. Timken Steel is not a commodity steel supplier, but has specialized products, and will have significant overseas exposure. Cramer is bullish on both TKR and Timken Steel, and notes that it isn't often one finds this kind of growth in the steel sector.

CEO Interview: Rick Shearer, Emerge Energy Services (NYSE:EMES)

Emerge Energy Services (EMES) produces sand for hydraulic fracturing, and has assets in the best sand deposits. EMES is an MLP that yields 4.3%. The sand that EMES provides holds up well under pressure and allows more oil and gas to escape. When asked about environmental concerns, CEO Rick Shearer said the industry has improved safety and environmental standards, and the facts concerning the safety of fracking will continue to persuade skeptics. Cramer thinks EMES is a good way to play the domestic oil and gas boom.

CEO Interview: Cliff Hudson, Sonic (NASDAQ:SONC)

Sonic (SONC) recently reported a one cent earnings beat on a 5.4% increase in same store sales. The company is adding to its menu, improving the quality of the food and is investing significantly in marketing efforts. Its new touch-screen technology is improving efficiency in its locations, and the program will be expanded. Food inflation is a challenge that Sonic is meeting by raising prices moderately on some offerings. Cramer thinks Sonic is a winner.


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