Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday, February 7. Click on a stock ticker for more analysis:
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While many people believe nothing is working in this economy, Cramer knows of CEOs who are working hard for their companies. Indra Nooyi, chairman and CEO of Pepsico told Cramer the company would introduce healthier snacks and control raw costs and PEP, up $3.68 a share, delivered. Cramer also thinks JC Penney CEO Mark Ullman has making a comeback with the company's deal with Ralph Lauren, and he adds JCP has the best online store of any major retailer. People who were doubting Disney were wrong, and CEO Bob Iger saw a great quarter for DIS with strong theme park revenues.
American Movil (NYSE:AMX)
One great way to play booming Brazil is through Mexico's AMX, which has many Brazilian customers. AMX reported a strong quarter with an earnings increase of 8 cents above estimates, 1.7 million more subscribers and strong sales, although this news did not propel the stock price, and AMX trades at only 14 times this yea'rs earnings. The world's richest man, Carlos Slim owns 33% of the company and "he knows what he's doing," said Cramer.
Cramer warned viewers not to try to spot a bottom in tech. "Now is the time on the calendar when big institutions begin selling tech," said Cramer. He emphasized the sector is seasonal, and low interest rates coupled with economic woes in Europe contribute to bearishness on tech, and would use any rise to sell tech stocks. Some investors may want to buy before the Goldman Sachs conference in Vegas, but Cramer warns to sell right after the event.
CEO Interview: Bruce Carbonari Fortune Brands (FO)
While a diverse assortment of products has usually been a secret to FO's strength, its exposure to housing may have been to blame for its weak quarter. Bruce Carbonari said the correction was only temporary, and while the company has exposure to sinks, cabinets, windows and other items connecting to housing, its other brands would help revive FO. However, Cramer pointed out FO's liquor sales increased by only 1%, far less than estimates of 5%. Carbonari responded that FO is investing in overseas growth of its liquor and is coming up with improved pricing strategies. Cramer was still unsure about Fortune and said it is a buy for anyone who thinks that the housing crisis will end in six months, otherwise, he would stay away.
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