Jim Cramer Blog

Not so Cheesy: Kraft (NYSE: KFT - News), Altria (NYSE: MO - News)
Cramer admits he was wrong in thinking Kraft was just a "crummy" spinoff from MO, but says he's done well to own the latter company. He suggests piggybacking on activist investor Carl Icahn and master money manager Nelson Peltz, who keep buying Kraft; Cramer predicts Pelz may increase his position in the stock by another 3%. Since "activists, in general, tend to outperform the indices," Cramer would follow the leaders, and would wait to buy more when the stock dips a few points.
Up, Up and Away: Spirit AeroSystems Holdings (NYSE: SPR - News)
Cramer admits he was stumped when a caller asked about this stock, but since he has done some research on SPR, Cramer says the stock is a triple buy. SPR is the chief supplier of parts to Boeing's Dreamliner plane, which Cramer says is "the best thing since sliced bread." He added SPR has very clear growth potential if the plane is a success, and the stock sells at only 16 x next year's earnings. In addition, SPR could get some business from Boeing rival Airbus, and will go higher, since aerospace is in bull mode, according to Cramer. He suggests buying half a position before and half after SPR reports earnings.

European Play: ABB Ltd. (NYSE: ABB - News)
For Tuesday's pick, Cramer looked to Switzerland where "500 years of democracy and peace have produced nothing but the cuckoo clock, and ABB Ltd." He calls this stock "the single best pure play on infrastructure around the world." Since power plants are difficult to build, ABB's expertise is very much in demand, and the company just announced a strong quarter and has "tons" of cash to make an acquisition or raise its dividend.
Mad Mail: ConcoPhillips (NYSE: COP - News), Caliper Life Sciences (NasdaqGM: CALP - News) and Volcano (NasdaqGM: VOLC - News)
Cramer told one viewer not to be worried that COP pulled back after its 9% gain last week, and would use the decline as a buying opportunity. "I hope it goes to $80 so I can buy some for my charitable trust," he added. When asked about his recommendation of CALP last year, Cramer says while the company has solid technologies, the life sciences industry "just doesn't have it right now." Cramer said VOLC is in the same boat as CALP and added, "You can buy it here, but it probably won't move until the fall." For the remainder of the summer, he would buy tech and best-of-breed stocks in his five bull markets.

Published By SeekingAlpha

Labels: ABB, CALP, COP, Jim Cramer, KFT, Mad Money, MO, SPR, VOLC

Gol Linhas Aereas Inteligentes (NYSE: GOL - News)
"Monopolistic, anti-competitive behavior is now in style in Brazil!" declared Cramer, who is bullish on GOL, a Brazilian airline which is acquiring its long-time competitor, Varig, after it went "belly up." At less than $100 million in cash, Varig was a bargain, and Cramer thinks the acquisition should send GOL up 30% in a straight line to $40. While Wednesday's 10% increase would otherwise inspire caution, Cramer does not think investors should wait for GOL to pull back, but would go ahead and buy; "We're in 'never-look-back-ville'!"

Benefit of the Doubt: Polo Ralph Lauren (NYSE: RL - News) COO Roger Farah, and Saks' (NYSE: SKS - News) Steve Sadove and Ron Frasch
Next on Cramer's list of executives who deserve the benefit of the doubt is RL's COO Roger Farah. While CEO Ralph Lauren is a "visionary" Cramer credits Farah for breathing new life in the brand "which had been spread out, truncated, over-licensed and diluted... and he turned it back into a powerhouse." Cramer likes RL because it is "the ultimate high-end play" and should have 12% to 15% growth. He also praised the company for purchasing the rest of Polo.com. However, market players turned on Farah after RL's fantastic quarter because they suspected him of guiding down estimates. In spite of Farah's assurances, the stock is still down, although it has recovered somewhat, and Cramer would stay with RL. He also likes SKS CEO Steve Sadove because he "keeps the money coming in" and its vice chairman and chief merchant Ron Frasch who is a"merchandizing genius," according to Cramer.

Sell Block: Syntax-Brillian Corp. (NasdaqGM: BRLC), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), BP (NYSE: BP - News), Exxon Mobil (NYSE: XOM - News), Transocean (NYSE: RIG - News), Movado (NYSE: MOV - News), BigBand Networks (NasdaqGM: BBND), Sourcefire (NasdaqGM: FIRE), Glu Mobile (NasdaqGM: GLUU), Aruba Networks (NasdaqGM: ARUN), Clearwire (NasdaqGS: CLWR), ETelecare (NasdaqGM: ETEL)
No matter how much he likes BRLC's story, he would sell the stock after CEO Vincent Solitto touted his company on Mad Money but failed to mention that he raised $15.5 million through a side deal which involved issuing shares at a special price "To me, it was galling... it was disspiriting," said Cramer; "Syntax-Brillian?... I don't like your style." Cramer would trade some T for VZ because VZ is less expensive and has a higher yield. He also suggested selling BP and picking up XOM "if you absolutely have to own an integrated" or RIG. He mentioned MOV has a good entry point at $28.74. Cramer gave an update on IPOs, saying he still likes BBND which he would buy it on any weakness, but suggests schnitzeling out of (selling the profits from) FIRE. He still doesn't like GLUU or ARUN. Cramer says CLWR is "on sale" now that it is settled into the $20-$21 range. Finally, Cramer would take profits from ETEL on any strength, since it has increased substantially.
CEO Interview: Scott Huennekens, Volcano (NasdaqGM: VOLC) with General Electric (NYSE: GE - News), Koninklijke Philips Electronics (NYSE: PHG - News)
Cramer asked Scott Huennekens to explain VOLC's agreements with GE and PHG; "GE has rights to one version of our product that it can integrate into its cath lab, and earlier this week we announced the deal with Philips for another version। So as we move forward, GE is going to have exclusivity to the advanced functionality version of the product, and the lower functionality version will also be incorporated onto Philips and other larger manufacturer systems," Huennekens said. He envisions every cath lab with an Ivus machine in it as the need to visualize arteries through less invasive approaches increases. Cramer gave VOLC a triple buy.
Published By SeekingAlpha

Labels: BP, CLWR, ETEL, GE, GLUU, GOL, Jim Cramer, Mad Money, MOV, PHG, RIG, RL, SKS, VOLC, VZ, XOM

A Second Look at Cigna (NYSE: CI - News)
Although Cramer has not liked Cigna in the past, he is taking another look at the non-pharma health care company because of its serious buyback plan. "Nothing is more reassuring than a company that believes in itself," said Cramer, noting that Cigna bought back 20% of the company since 2004 and is shrinking its number of shares so rapidly, it is "practically going private." Cramer declared, "The single biggest bull market is in the nonpharmaceutical health care sector," and he would buy Cigna.

Volcano (NasdaqGM: VOLC), Boston Scientific (NYSE: BSX - News), Johnson & Johnson (NYSE: JNJ - News), and General Electric (NYSE: GE - News)
A great way to play fears over drug-coated stents is to buy Volcano, a company that makes intravascular ultrasound catheters which examine the inside of arteries, according to Cramer. Although this technology is not new, it has been underused until the recent stent controversy. Volcano's largest rival is BSX, which Cramer calls "the Citigroup of healthcare" and Volcano has partnerships with JNJ and GE.

Beware of Tech: Oracle (NasdaqGS: ORCL), Microsoft (NasdaqGS: MSFT), EMC (NYSE: EMC - News), SanDisk (NasdaqGS: SNDK), Seagate (NYSE: STX - News), Western Digital (NYSE: WDC - News), Komag (NasdaqGS: KOMG), IBM (NYSE: IBM - News), Micron's (NYSE: MU - News), Texas Instruments (NYSE: TXN - News), Intel (NasdaqGS: INTC), Advanced Micro Devices (NYSE: AMD - News), Garmin (NasdaqGS: GRMN), Qualcomm (NasdaqGS: QCOM), Cisco (NasdaqGS: CSCO), Hewlett-Packard (NYSE: HPQ - News), eBay (NasdaqGS: EBAY), Apple (NasdaqGS: AAPL), Yahoo! (NasdaqGS: YHOO) and IAC/InterActive (NasdaqGS: IACI)
Cramer devoted his Sell Block segment to warning investors not to touch tech until summer, with a few notable exceptions. "Don't be bamboozled by hopeful analysts," he said, and added ORCL, MSFT, EMC, SNDK, STX, WDC, and KOMG are not buys right now. Cramer said IBM should not be bought until it has some "breakthrough earnings releases" and urged investors to ignore MU's upgrade and to avoid TXN, INTC and AMD. However, the few tech stocks worth buying now include GRMN, QCOM, CSCO and HPQ, EBAY, AAPL and YHOO. Cramer is removing IACI from his list of buys.
CEO Interview: David Snow, Medco Health Solutions (NYSE: MHS - News)
When Cramer asked David Snow how his company makes money off of drugs that go generic, he replied, "In the case of generics, $50 billion of branded drugs are going off patent between now and 2011. We are going to work very hard to appropriately move people from branded drugs to generic drugs, and we make money doing that." On the topic of Medco's cash flow, David Snow said the %5.5 billion buyback program is up and running, and the company might make a future acquisition. Cramer said Medco is the definition of a buy in the current environment.

Labels: AMD, BSX, CI, CSCO, EMC, GE, HPQ, IACI, IBM, Jim Cramer, JNJ, KOMG, Mad Money, MSFT, QCOM, STX, VOLC, WDC, YHOO

Applied Materials (NasdaqGS:AMAT - News) matched earnings Tuesday afternoon with $0.27 EPS. AMAT's PowerRating is 6.
Volcano (NasdaqGM:VOLC - News) beat earnings on Tuesday after the bell, announcing $0.04 EPS over an expected -$0.02 EPS.
Accredited Home Lenders (NasdaqGS:LEND - News) announces earnings on Wednesday before the open, with analysts looking for -$0.45 EPS. LEND's PowerRating is 6.
Coca-Cola (NYSE:KO - News) is expected to report $0.50 EPS on Wednesday before the open. KO's PowerRating is 5.
When DaimlerChrysler (NYSE:DCX - News) announces quarterly earnings Wednesday morning, look for $0.85 EPS. DCX's PowerRating is 5.
Analysts are expecting Daktronics (NasdaqGS:DAKT - News) to report $0.17 EPS Wednesday before the market opens. DAKT's PowerRating is 5.
Watch for Deere (NYSE:DE - News) to report $0.81 EPS tomorrow morning. DE's PowerRating is 6.
PowerRatings are courtesy of PowerRatings.net

Labels: AMAT, DAKT, DCX, DE, Hot Stocks, KO, LEND, VOLC

Labels: AMAT, DAKT, DCX, DE, Hot Stocks, KO, LEND, VOLC