Cramer Ideas: 5 'Lightning Round' Buys, 1 Sell

Includes: CATM, CEL, CNC, OPK, T, VOD, WMT
by: Efsinvestment

“The Greek flu is hitting Italy,” James McDonald of Northern Trust Corp. says of the event which led Silvio Berlusconi to resign after the country is put back on track. The Greek prime minister gave up his chair as well.

The eurozone seems to be collapsing permanently, as things are getting really ugly there. All the markets are having losses at the time of writing, excluding those in Asia.

While I would get more cautious in such an environment, Jim Cramer turned out to be mostly bullish. In his November 8 "Lightning Round" program, he made a bunch of calls that are worth a deeper look. Five of his calls were bullish this time, and only one bearish.

I have examined all of his stock mentions from a fundamental perspective, and added my opinions about them. I have applied my O-Metrix Grading System where possible. Here is a fundamental analysis of these stocks:

Stock Name


Cramer's Suggestion

O-Metrix Score

My Take






Wal-Mart Stores







No Calls


Buy After Pullback

Opko Health





Cellcom Israel




Risky Buy











(Data obtained from Finviz/Morningstar, and is current as of November 8 close. You can download the O-Metrix calculator here.)


Cramer likes healthcare cost-containment companies, including Centene. It was trading at a P/E ratio of 17.3, and a forward P/E ratio of 13.6, as of November 8. Analysts estimate a 9.7% annual EPS growth for the next five years. Profit margin (2.1%) is lower than the industry average of 4.1%, and it pays no dividend.

Centene is trading 11.89% lower than its 52-week high, while its target price indicates an 8.2% increase potential. O-Metrix score is 3.13, and the company returned 56.0% in a year. Earnings increased by 25.26% this quarter, whereas institutions hold 98.60% of the shares. SMA20, SMA50, and SMA200 are 9.59%, 13.45% and 8.68%, respectively. The debt-to assets ratio is slightly decreasing since 2006.

On the other hand, PEG value is 1.4. While gross margin is 19.8%, operating margin is 3.8%. ROA, ROE, and ROA are 5.56%, 12.58% and 9.23%, respectively. Earnings decreased by 7.20% this year. Insiders have been both selling stocks and exercising options for a while. Centene doesn’t seem strong enough to count on, but holding is OK.


The Mad Money host made the following remarks about this company:

We said if this thing crashed past $55, it would go to the moon... on any pullback, you've got to buy it.

The company, as of November 8, has a P/E ratio of 13.4, and a forward P/E ratio of 12.1. Five-year annualized EPS growth forecast is 11.8%. It offers a 2.46% dividend, while the profit margin (3.9%) is slightly above the industry average of 3.7%.

Wal-Mart returned 5.9% in a year, whereas it is currently trading -1.98% lower than its 52-week high. Target price is $59.95, which implies a 2.9% upside potential. O-Metrix score is 5.59, and Beta value is 0.35. SMA20, SMA50, and SMA200 are 2.71%, 7.72% and 9.52%, respectively. Yields seem appetizing, and debts are far from being a threat. ROE is 25.18%. PEG value is 1.0, while Morningstar gives a three-star rating to the stock. I believe Wal-Mart is a must for the ultimate retirement portfolio. (Full analysis of Wal-Mart here).


Cramer asked for some time to take a look at why Cardtronics went up that much on Tuesday, and reply back at a later date. It shows a trailing P/E ratio of 25.9, and a forward P/E ratio of 17.7, as of the November 8 close. Analysts expect the company to have a 15.8% annual EPS growth in the next five years. Profit margin (7.9%) is higher than the industry average of 6.3%, while it offers no dividend.

Cardtronics has an O-Metrix score of 3.62, and it is trading 5.41% lower than its 52-week high. Target price is $27.60, implying a 2.6% upside movement potential. The debt-to assets ratio is falling for the last five years, whereas it returned 57.0% in the last twelve months. Earnings increased by 651.11% this year, and institutions hold 95.14% of the shares. SMA20, SMA50, and SMA200 are 10.98%, 13.55% and 24.95%, respectively. ROE is 112.43%, whereas 5 out of 5 analysts recommend buying. A pullback should be waited for, in my opinion.

Opko Health

Cramer is bullish on Opko Health, and he made the following comments about the company:

This company is not making any money, but it's got a nice revenue ramp. That's why it’s speculative.

Florida-based Opko, as of November 8, was trading at a P/E ratio of -70.9. It pays no dividend, while the profit margin (-54.7%) is crushed by the industry average of 12.9%.

The company is trading 6.82% lower than its 52-week high, whereas its target price indicates an about 15.6% increase potential. Opko returned 75.6% in the last twelve months, and debt-to assets ratio is insanely unstable. Beta value is 1.26, whereas SMA20 is -0.84%. Cash flow is struggling, while institutions hold only 14.71% of the shares. P/B is 13.6, and P/S is 34.3, both of which are well above their industry averages. While gross margin is 45.5%, operating margin is -44.4%. ROA, ROE, and ROI are -19.29%, -27.34% and -24.23%, respectively. Revenue might be all right, but there is nothing else to count on. It does not look safe to risk any money at Opko Health.

Cellcom Israel vs. Vodafone vs. AT&T

Cellcom Israel is “too dangerous,” the Mad Money host said, suggesting home-gamers other telcos like Vodafone or AT&T. Here is a brief comparison of these three stocks:

Current as of November 8 close.

Cellcom Israel



P/E ratio




Forward P/E ratio




Estimated EPS growth, next 5 years




Dividend yield




Profit margin




Gross margin




Upside movement potential




With a payout ratio of 83%, Cellcom offered a trailing yield of 17% in the last four quarters. However, the projected yield is 10%. The stock lost around 30% in 2011. It is trading almost 35% below its 52-week high. While the sell-off seems to have slowed down, it is a risky buy with a P/B value of 25.

Vodafone is currently trading 2.02% lower than its 52-week high, while AT&T is trading 6.31% lower. O-Metrix scores of Vodafone and AT&T are 4.82 and 3.78, respectively. Vodafone returned 0.6% in a year, whereas AT&T returned -0.05%. Both of these two companies have three-star ratings from Morningstar. Both of them are appetizing plays. AT&T offers more safety due to its less dependency on eurozone issues. Vodafone offers a better yield, and is trading with a lower trailing P/E ratio. Therefore, I rate AT&T as hold, and Vodafone as buy.

Disclosure: I am long T.

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