Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday, August 6.
The market is in forgive and forget mode. Investors have moved on from the concerns they had in the past and are willing to embrace stocks again. Consider Disney (NYSE:DIS), which went down some time back on ESPN woes and cord cutting. The stock has, however, reached its 52-week highs even before the company reports earnings post marking closing on Tuesday.
Next, Facebook (NASDAQ:FB) was shown love on Monday after there were reports of the company being in talks with banks to seek customers' financial data. Just 2 weeks back, the stock had its worse day on earnings and the Cambridge Analytica scandal. "The banks aren't just going to hand over your data, especially not since Facebook was just raked over the coals for turning around and selling your data to irresponsible third parties," said Cramer.
The expectations on Facebook have been reset, and Cramer feels that as consumer packaged companies move to increase spending on online marketing, social media companies like Facebook win.
T-Mobile (NASDAQ:TMUS) went down when it announced its plan to merge with Sprint (NYSE:S). However, the market seemed to like the idea of a three-carrier market. Some other stocks that rallied on Monday after being down in the last week are Henry Schein (NASDAQ:HSIC) and Chipotle Mexican Grill (NYSE:CMG).
Long-time PepsiCo CEO Indra Nooyi is stepping down after her 12-year tenure as CEO and 24 years at the company.
Since she became the CFO in 2000, the stock has increased 411%, beating the consumer staples group and the S&P 500 overall. Dividends have tripled since she became CEO in 2006, and the billion-dollar brands grew from 17 to 22.
Cramer recalled his first interaction with the CEO more than 10 years ago. "I had thrown a sleepover party for my daughter's swim team. I had stocked baskets all over the house with Doritos and Cheetos and Lay's potato chips, and the kids studiously avoided them. I was shocked. I realized that these kids represented the future, and the future looked grim for these kinds of unhealthy snacks," he said.
Nooyi then called Cramer to dispute his comments, and he went to the company's factory in Aberdeen and had a change of perspective. "I saw the future: sustainable snacks with very little sodium and very little fat made in a factory that had no water footprint because it used the excess water from the potatoes it cut. She saw the future coming - a future of sustainability and healthy eating - when few others did," Cramer added.
Cramer called Nooyi a great leader who shaped the way PepsiCo is today, mentioning lot of her programs, from working mothers in the workplace to women in leadership. He noted that he doesn't expect any less from the incoming CEO, Ramon Laguarta.
Expedia fell from a high of $160 last year to $100 in February. The stock has gained 21% in the past three months.
The stock got hit as the company was dealing with falling revenues due to the hurricane season and increase in competition. It also reported a 22% rise in sales and marketing expenses. Expedia justified the expenses as necessary for growth.
The fruits of the spending began to show up, and the company got back to growth in April. It also announced a stock buyback program which is up to 10% of their float. Its last quarter was a blowout, and the stock shot up 9%.
The company is now trading at 12 times earnings with a 16% long-term growth rate. Cramer said he'd buy the stock on weakness.
CEO interview - MarketAxess Holdings (NASDAQ:MKTX)
The stock of bond trading platform MarketAxess Holdings is up 250% in the last five years but down 20% from its March highs. Cramer interviewed founder, chairman and CEO Richard McVey to find out what lies ahead for the company.
MarketAxess's business is 85% commission-driven. McVey added that though the bond market being calm translates to lower volatility and trading, the Fed's end to QE will lead to a rise in trading, along with a rise in federal spending and federal deficits.
Clients using the company's platform are increasing, and it continues to take market share internationally. "If you look over the last 10 years, there has been a consistent movement, year in and year out, of investors trading more electronically and moving business away from the phone. We see the same thing this year - whether it's high-grade, high-yield, emerging markets or euros, market share electronically continues to move up," the CEO concluded.
Viewer calls taken by Cramer
Kohl's (NYSE:KSS): It's an inexpensive stock. Buy some now and some after the quarter.
Bed Bath & Beyond (NASDAQ:BBBY): While the stock is bottoming, Cramer said there is no catalyst for growth that he can see.
National Beverage Corp. (NASDAQ:FIZZ): The business is good, and last quarter was good. The stock has tremendous momentum.
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