Cramer's Mad Money - It's A Matter Of Metrics (9/10/14)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday September 10.

A Matter of Metrics: EOG Resources (NYSE:EOG), Royal Dutch Shell (NYSE:RDS.A)

To predict the direction of a stock, it is important to know what metric the stock trades on. Not all stocks in the same sector trade on the same metric. EOG Resources (EOG), a stock Cramer has liked for a long time, trades mainly on oil prices, but not all stocks are so levered to pricing. Cramer would buy Royal Dutch Shell (RDS.A) because of its generous yield which pays shareholders to wait until oil prices rise.

Unmet Needs: Deckers (NASDAQ:DECK), Apple (NASDAQ:AAPL), Mobileye (NYSE:MBLY), Google (NASDAQ:GOOG), (NASDAQ:GOOGL), GoPro (NASDAQ:GPRO), Twitter (NYSE:TWTR), Keurig Green Mountain (NASDAQ:GMCR)

Sometimes a stock goes higher because the company is addressing unmet needs. Deckers (DECK) CEO Angel Martinez, invented Reeboks, and more recently, sneakers which help runners with knee problems and now yoga shoes.

Apple (AAPL) unveiled the new iPhone for payments and the iWatch. Mobileye (MBLY) has the best technology to improve driving.

Google (GOOG), (GOOGL), GoPro (GPRO), Twitter (TWTR) and Keurig Green Mountain (GMCR) are all stocks whose success depended on addressing unmet needs.

CEO Interview: Mark McLaughlin, Palo Alto Networks (NYSE:PANW)

Cramer thinks the best play in cybersecurity is Palo Alto Networks (PANW) and reported a "staggeringly good" quarter. The stock is up 135% since the IPO 2 years ago and is up 34% since Cramer got behind it in June. The stock has risen significantly, but Cramer thinks the long-term upside could be "phenomenal." PANW deals with both detection of existing problems and prevention. CEO Mark McLaughlin said PANW has been able to reduce the average time of attacks moving from "unknown" to "known" status from 28 minutes to 15 minutes.


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