Jim Cramer's Wall Street Confidential April 18th
Coke (NYSE: KO), PepsiCo (NYSE: PEP), General Electric (NYSE: GE), IBM (NYSE: IBM)
Cramer declared the beginning of the 17% run in the Dow which he predicted earlier in the year, and noted the abundance of stocks selling at 12 to 14 times earnings, which are generating a lot of cash and are soundly beating their numbers. "We came into this earnings season with very low expectations," he said. Because of its dramatic growth and earnings acceleration, KO will finally break out to $60 after its long-term limbo between $45 and $50, according to Cramer who also predicts MRK will reach $60. Although investors liked the news from KO and MRK, many are waiting ot see what PEP will say next week and want to hear from the rest of the drug sector. "Historically, what has happened is that you get an initial burst when you have a big upside surprise," Cramer explained. "Then you mark time, and as soon as earnings season is over, you see a gallop." However, there were disappointments, including IBM's and GE's lackluster quarters. Cramer discussed the growing trend of buying back shares; "The buybacks have been bountiful but haven't meant anything," Cramer said. "Suddenly they are really starting to mean something." He added that while IPOs have been slowing down, the deals have sped up.
Published By SeekingAlpha
Cramer declared the beginning of the 17% run in the Dow which he predicted earlier in the year, and noted the abundance of stocks selling at 12 to 14 times earnings, which are generating a lot of cash and are soundly beating their numbers. "We came into this earnings season with very low expectations," he said. Because of its dramatic growth and earnings acceleration, KO will finally break out to $60 after its long-term limbo between $45 and $50, according to Cramer who also predicts MRK will reach $60. Although investors liked the news from KO and MRK, many are waiting ot see what PEP will say next week and want to hear from the rest of the drug sector. "Historically, what has happened is that you get an initial burst when you have a big upside surprise," Cramer explained. "Then you mark time, and as soon as earnings season is over, you see a gallop." However, there were disappointments, including IBM's and GE's lackluster quarters. Cramer discussed the growing trend of buying back shares; "The buybacks have been bountiful but haven't meant anything," Cramer said. "Suddenly they are really starting to mean something." He added that while IPOs have been slowing down, the deals have sped up.
Published By SeekingAlpha
Labels: GE, IBM, Jim Cramer, KO, PEP, Wall Street Confidential
posted by Stock Administrator @ 11:26 AM
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