Jim Cramer's Mad Money Stock Recap Aug. 14th
The Skinny on Kraft (NYSE: KFT - News) and Proctor and Gamble (NYSE: PG - News)
After Tuesday's dismal trading day, Cramer believes the Fed will be willing to accept a recession, anything that will beat inflation, "even if even if it means the electric bleachers for my hedge fund and trading fund friends." As expected, Cramer recommended defensive stocks, and especially KFT, which may sell "loser brands" such as Maxwell House, especially since Carl Icahn and Nelson Peltz have a stake in the company. He also thinks PG will jettison brands that aren't working to preserve its capital.
CEO Interview: Timothy Wallace, Trinity Industries (NYSE: TRN - News)
Timothy Wallce doesn't think TRN's steep 20% slide last month is an indication of a longer-term decline for the company, and comments Trinity purchased 20% equity in TRIP Rail Holdings. While Cramer thinks TRN may have a good long-term story, he would be careful since, "the numbers may be too high here."
Treehouse Foods Inc. (NYSE: THS - News) and B & G Foods Inc. (NYSE: BGS - News)
While Kraft and Proctor and Gamble are getting rid of "crummy" brands, THS and BGS are masters of acquiring tired names and giving them new life. Cramer described THS as a risky stock which has been on an acquisition spree, and owns household brands Santa Fe, Del Monte and Oxford. THS' profits have increased 42% year-over-year in the second quarter. B & G's buys neglected brands such as Ortega, Cream Of Wheat and Underwood, is a conservative investment which reported a 12.3% increase in net sales last quarter and is worth owning for the dividend, according to Cramer. He says both companies are "thrice-blessed" because they are recession-proof and consolidate their expenses to reduce raw costs; "We like the dividends, and we like the brands."
The Last Man Standing; The Travelers (NYSE: TRV - News)
In spite of the current environment, Cramer says money can be made from insurance companies which continually invest and are "gigantic cash machines." He would stick with TRV which is the "last man standing" and is ranked 89 in the Fortune 500. He predicts TRV will go higher on the current housing situation.
Published By SeekingAlpha
After Tuesday's dismal trading day, Cramer believes the Fed will be willing to accept a recession, anything that will beat inflation, "even if even if it means the electric bleachers for my hedge fund and trading fund friends." As expected, Cramer recommended defensive stocks, and especially KFT, which may sell "loser brands" such as Maxwell House, especially since Carl Icahn and Nelson Peltz have a stake in the company. He also thinks PG will jettison brands that aren't working to preserve its capital.
CEO Interview: Timothy Wallace, Trinity Industries (NYSE: TRN - News)
Timothy Wallce doesn't think TRN's steep 20% slide last month is an indication of a longer-term decline for the company, and comments Trinity purchased 20% equity in TRIP Rail Holdings. While Cramer thinks TRN may have a good long-term story, he would be careful since, "the numbers may be too high here."
Treehouse Foods Inc. (NYSE: THS - News) and B & G Foods Inc. (NYSE: BGS - News)
While Kraft and Proctor and Gamble are getting rid of "crummy" brands, THS and BGS are masters of acquiring tired names and giving them new life. Cramer described THS as a risky stock which has been on an acquisition spree, and owns household brands Santa Fe, Del Monte and Oxford. THS' profits have increased 42% year-over-year in the second quarter. B & G's buys neglected brands such as Ortega, Cream Of Wheat and Underwood, is a conservative investment which reported a 12.3% increase in net sales last quarter and is worth owning for the dividend, according to Cramer. He says both companies are "thrice-blessed" because they are recession-proof and consolidate their expenses to reduce raw costs; "We like the dividends, and we like the brands."
The Last Man Standing; The Travelers (NYSE: TRV - News)
In spite of the current environment, Cramer says money can be made from insurance companies which continually invest and are "gigantic cash machines." He would stick with TRV which is the "last man standing" and is ranked 89 in the Fortune 500. He predicts TRV will go higher on the current housing situation.
Published By SeekingAlpha
posted by Stock Administrator @ 9:54 AM
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