Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, March 17.
There is no major event in the coming week that can hurt the bulls. It's only about earnings that can give the bears what they are looking for. With that, Cramer discussed his game plan for the week.
MDU Resources (NYSE:MDU) will hold its analyst meeting on Monday. "Few businesses can stand to benefit more from Trump's plans for deregulation than the oil and gas industry and MDU is one of the biggest winners," said Cramer.
General Mills is a well-managed company but has had weak earnings in the last few quarters. If the current quarter is weak, buy the stock as it is a natural takeover target for Kraft-Heinz (NASDAQ:KHC).
Lennar is one of the strongest performers of the S&P500 in 2017 by rallying 23%. "If the stock is going to stay up here, we'll need to hear a story of accelerating orders and estimate beating numbers on both the top and bottom line," said Cramer.
There is recent hype about Nike reporting good numbers. If the report isn't as good, the stock could go down to the low $50s. Cramer expects FedEx to report good numbers signaling that commerce is strong.
PVH (NYSE:PVH) will report earnings on Wednesday. A good earnings report from them will not boost the retail sector. "PVH is a terrific operator and has often been able to make a lot of money even when many investors have counted it out," added Cramer.
Accenture sold off after a strong last quarter and bounced back to its earlier levels. Cramer thinks it will be no different this time.
GameStop yields 6%. Cramer believes that brick and mortar stores are holding this company back. "This one's too risky in an era when its products can be easily bought online," he added. Micron, on the other hand, needs a blowout quarter for its stock to rally.
Cramer will be a buyer of KB Home on weakness induced from Lennar's earnings.
To find out the outlook on oil price, Cramer interviewed Rusty Braziel of RBN Energy.
"If we look forward for the next five years, the forward curve of crude oil in the United States is at $50 flat. It's the ingenuity of U.S.-producing companies. We've learned how to produce and make money at $50," said Braziel.
New fracking and drilling technologies allow producer companies to extract more hydrocarbons. Thanks to this, the cost per unit is getting cheaper.
Trump's deregulation agenda for the fossil fuel industry is also working in favor of the companies. If some regulations are lifted, the oil price may stay in this range for a long time.
"Now they're looking at a situation where regulations are at least expected to be dialed back, which is a great thing, which means that they'll be able to produce for less money, which means they'll be able to have lower break-even prices, which means they'll be able to make more money, which means they'll be able to produce more hydrocarbons, which means perhaps we could make so many hydrocarbons that the price stays low no matter what," he added.
Cramer came back with his homework on stocks he could not opine on earlier.
Brookfield Infrastructure Partners (NYSE:BIP): The stock has a good yield of 4.7%. However, it is exposed to currency volatility which makes this a risky stock.
Macquarie (NYSE:MIC): This is yet another infrastructure play with a yield of 6.6%. With Fed raising rates, this stock will go down.
Penumbra (NYSE:PEN): The easy money in this stock has been made already. It's a speculative buy, but Cramer advised not chasing the stock upwards.
Mulesoft was yet another IPO which opened strongly in 2017. Has IPO demand been saturated after so many offerings? Cramer believes otherwise.
The market wasn't ready in March 2014 and yet there were 275 new issues. This is not the case currently.
IPO is a demand and supply game. Excessive supply of offerings can kill the bull market, but currently the market is nowhere near 2014 levels. There is room for many more offerings.
Viewer calls take by Cramer
McEwen Mining (NYSE:MUX): Cramer blessed the company as a concept as the caller was young and can afford the risk.
Chipotle (NYSE:CMG): Wait till June for the healthcare scare to be forgotten.
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