Cramer's Mad Money - R.R. Donnelley Has Cash (12/17/14)

| About: R.R. Donnelley (RRD)
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Summary

R.R. Donnelley is in the printing business, but it has a good dividend.

Cramer picked 5 safe stocks.

The market is finally accepting cheap oil.

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday December 17.

CEO Tom Quinlan, R.R. Donnelley (NASDAQ:RRD)

R.R. Donnelley (RRD) is in a tough space. It is in the printing business, when everything is going digital. Shares have collapsed over 20% for the year, but it has a 6% dividend. The company has a large debt burden. CEO Tom Quinlan says the debt will soon be within reasonable limits, given the company's cash flow. The stock is also great for investors, given its nice dividend and buybacks. The company is expanding beyond ink and paper and is going into sensor labels, where there is plenty of demand.

A Market Pick-Me-Up

After a few down days, stocks moved up a bit on hopeful comments from Fed Chair Janet Yellen and stability in oil futures. Interest rates might move higher, but the market doesn't know quite when. However, the concerns that have been driving stocks down have abated somewhat.

Off the Charts With Stocks and Oil

Cramer consulted the technical analysis of Bob Lang concerning trends in stocks and oil prices. Lang showed that oil prices are not likely to come up soon, but measured declining oil prices against the chart of the S&P 500. He demonstrated that when oil dropped, stocks managed to produce gains, so that is yet another reason that investors should not abandon stocks with oil falling.

5 Stocks to Buy: CVS (NYSE:CVS), Clorox (NYSE:CLX), Hain Celestial (NASDAQ:HAIN), Monster Beverage (NASDAQ:MNST), Kimberly-Clark (NYSE:KMB)

Cramer discussed stocks to buy in the current environment. CVS (CVS) has been a leader in the sector, and its no-tobacco rule has helped rather than hurt the stock. Clorox (CLX) is boring, but is a consistent performer. Hain Celestial (HAIN) and Monster Beverage (MNST), while representing opposite ends of the healthy eating and drinking trend, give strong returns. Kimberly Clark (KMB) is also a good stock to cling to in times of trouble.

CEO Interview: Roger Stone, KapStone Paper (NYSE:KS)

Kapstone Paper (KS) is in the paper industry, which is a difficult place to be, but CEO Roger Stone is seeing price stability with more consolidation and less competition. The cost of building a new paper mill is off-putting to those who want to enter, and that also allows KS to grab market share. Stone says he has considered turning the company into an MLP, and hasn't reached a final decision.

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