Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday February 4. Click on a stock ticker for more analysis:
Snow White and the Seven Dwarfs Those who feel the market is sending them mixed signals need look no farther than the storybooks to explain what is going on. Cramer used the story of Snow White and the Seven dwarfs to describe various types of investors. The Dopeys think everything is fine and will "buy any stock that blows in their window." The Sleepys are only just waking up to news of a recession. Doc is like Professor Bernanke "intellectual and clueless." Grumpys think nothing can save the economy and "hate everything, including stocks." Happys think the Fed cuts will turn the economy around, with fewer foreclosures and "a $600 iPod in every pocket." All the dwarves are fighting over the Bashfuls who are too nervous to get into the market, and the Sneezys who have been blown out already and are sick. Cramer looked into the Mirror, Mirror on the Wall and asked if the recession will be long and hard like a Wicked Witch, or like Snow White, gentle and with a rapid recovery. The mirror replied, "Snow White" and Cramer placed himself firmly in the Happy Camp.
I'm not Wild about Hairy: Exxon (NYSE:XOM), Apache (NYSE:APA) XOM declined after apparently strong earnings, and this time, it isn't due merely to the capricious market. Cramer said Exxon's quarter was "hairy" meaning it looked better than it was on a few one-time gains. If all of XOM's one-time gains are taken out of the equation, the oil giant only beat estimates by 5 cents a share, and profited more from rising oil prices than from drilling, since it increased production by a mere 1%. "A lot of Exxon's earnings came from its big buyback," Cramer said, "and that makes Exxon more of a bank than an oil company." Cramer prefers Apache with production growth at 9-12%. "There's no reason to own Exxon," he concluded.
Bald is Beautiful: Intuitive Surgical (NASDAQ:ISRG) While Exxon is hairy, ISRG proves that bald is beautiful, with long term gains such as accelerating revenue growth, a 68% sales increase year over year, and a 4% rise in international sales. Recurring revenue comprises 43% of sales and demand for the Da Vinci Robot continues to increase, exceeding Wall Street expectations in the number of sales.
CEO Interview, Mike McCallister Humana (NYSE:HUM) Cramer has "caught a double" in Humana since his initial recommendation notes it is down $3. McCallister discussed the company's skill in adjusting to a changing U.S. demographic and its 69% increase in earnings and its raised guidance. The CEO added the company plans to growth through acquisitions and may consider a stock buyback program. Concerning the upcoming election, McCallister said any Medicare reform plan will be good for HUM, and Cramer suggest buying the stock on any weakness.
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