Stocks discussed on the in-depth session of Jim Cramer's Mad Money Program, Friday, April 1.
The jobs report on Friday was good which can lead to profits from certain segments. "You look for outsized gains in certain segments of the report and you extrapolate," said Cramer. The construction sector added 37,000 jobs in March. Retail added 48,000 jobs from which 10,000 were in building, materials and garden supply stores. This points to Home Depot (NYSE:HD) being a great buy as it has still not broken out. The company announced it's hiring staff for its 2,000 stores during the spring selling season.
Other big winners from this would be companies selling lumber, appliances and tools such as Stanley Black & Decker (NYSE:SWK) and Whirlpool (NYSE:WHR). Hiring in healthcare led by ambulatory healthcare services and hospitals was rising which means that AMN Healthcare (AHS) could break out as a result. Rising employment in food and services means Sysco (SYS) is worth buying. "You do the homework on the companies, then when you get the release you will know the profit points. That is how calculated risk plays out and money can be made," said Cramer.
With that, he discussed the game plan for the week.
Tesla (NASDAQ:TSLA) will report the number of orders it received for its Model 3. This stock tends to trade on orders. The company has already received 198,000 orders and it can be a huge hit if it gets another 100,000 over the weekend.
Durable goods orders numbers will be out on Monday as well. Cramer will be watching the report closely.
Darden Restaurants (NYSE:DRI) will report earnings on Tuesday. Cramer thinks the numbers will be good as the chain is being revamped. Walgreens (NASDAQ:WBA) has already taken off going into earnings on Tuesday. Cramer does not like when this happens.
Bed Bath & Beyond (NASDAQ:BBBY) will report earnings on Wednesday. With competition from Amazon (NASDAQ:AMZN) the appetite for more stores has reduced. However, the company is buying a lot of its own stock. It can go private if same-store sales stabilize.
ConAgra Foods (NYSE:CAG) will report earnings on Thursday. Cramer will be watching closely to find out if it can join the other food stocks which are doing well. CarMax (NYSE:KMX) also reports on Thursday. Cramer thinks the stock has bottomed out.
Marriott (NYSE:MAR) will be holding a shareholder meeting in which votes to buy Starwood (HOT) will be tallied. It can be a great day for Marriott.
CEO interview - Dave & Buster's Entertainment (NASDAQ:PLAY)
Not all restaurant stocks have benefited from lower gasoline prices, so one should exercise caution in choosing them. Dave & Buster's, which is a chain of 81 sports bars and gaming centers, reported solid earnings with higher than expected revenue and earnings. The stock still did not move due to cautious management guidance. Cramer interviewed CEO Steve King to find out more about the quarter.
King mentioned that their long-term same-store sales guidance of low single digits is still intact. 2016 has been a good year in terms of unit growth. "We really believe this is going to be a unit growth story and that the step function change that we really achieved over the last two years, we want to cement that home and make sure we can continue to grow from there," he added.
The company has identified 200 sites in North America where they can successfully put Dave & Buster's. New Jersey can also have about 5 stores due to the new legislation. There is lot of real estate available.
King said that the company has been adding new food, games and beverages throughout the year. They think of themselves as an entertainment company first and then a food company. The new wage increase will put a little pressure on profitability but the company can handle that.
Valeant (NYSE:VRX) and the pharma sector
Lots of pharma executives are angry with Valeant as it has created a bear market. After Valeant rallied on Friday, will the bear market end? "Every day that Valeant's awful business practices stay front and center in the public eye is another day that these guys know they are doomed to an era of lower profitability," said Cramer.
The creator of Valeant, Michael Pearson, with the right class of investors managed to put everyone in the game of higher tax-aided EPS by taking advantage of loopholes in the healthcare and tax system.
"It is an unpalatable situation. It is all that the drug execs can focus on. And it won't play out until Valeant is so small it doesn't matter and the election dynamic resolves itself," said Cramer.
With Bernie Sanders running for longer than Cramer thought, Valeant can still cause havoc in the stock market. Valeant won't go down without creating volatility for other stocks in the drugs group. "Until Valeant settles, I think this bear market in pharma can't end and the money will simply continue flowing into other sectors," added Cramer.
Cramer came back with the homework on stocks he did not opine on previously.
Accelerate Diagnostics (NASDAQ:AXDX) is a healthcare company focusing on developing a diagnostics platform to identify bacteria and viruses and drugs that can be used against them faster than current machines do. Cramer had advised staying away due to its issues with the SEC. The company has got its act together recently after the stock dropped 40%.
Their technology can be a great game changer as medical labs could run much smaller units at a faster rate without taking up too much space. This will save a lot of money in the healthcare system.
If the FDA approves their technology, then their business model could be attractive. The company is not yet profitable and has not yet been approved by the FDA. "That is what makes it speculative, however, I am confident that the prospects here look good, otherwise I never would have mentioned these guys in the first place," said Cramer.
The stock looks risky but Cramer thinks it is worth speculating on at $14.
Viewer calls taken by Cramer
Marathon Oil (NYSE:MRO): Cramer is not a fan of the fossil fuel plays.
Fitbit (NYSE:FIT): It's a great company but people think it is expensive.
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