Jim Cramer's Mad Money Stock Recap Sept. 20th
Goldman Sachs (GS): Cramer said they proved today that they're the only broker to own. Goldman Sachs proved itself during a downturn by shorting the mortgage market, Cramer said: "When you're right quarter after quarter after quarter, it isn't luck." They are underestimated by Wall Street, who believes that all brokers are the same, but Cramer says why settle for less when you can have GS for $230? He thinks they will be "dragged" into a higher multiple, but they deserve to sell at $300.
Yum! Brands (YUM): Cramer asked CEO David Novak how they have stayed consistent. Novak pointed out their "global portfolio" including Taco Bell, KFC and Pizza Hut. Their diversity gives them earnings power and tremendous opportunities to expand around the world. Yum! is the No. 1 retail developer in the world, ahead of McDonald's (MCD) and Starbucks (SBUX). Yum! is building one restaurant per day in China and continues to grow elsewhere, Novak said. Cramer asked Novak what he though about YUM being an unhealthy brand. Novak: Out food tastes good and people are looking for taste. Also, their menu's are getting broader and their growth has been exceptional.
Lululemon Lowdown: (LULU)
Cramer: If you are looking for the next Crocs (CROX) or Under Armor (UA), look at LULU. It's a yoga-apparel company who’s stock is up 28% from when Cramer recommended it two months ago. It has growth potential as a woman’s apparel play; 51% of the population. Cramer spoke to lululemon CEO Robert Meers on the show. Meers thinks it's a global opportunity and that people will pay for their quality products and services. He also said they operate well in college towns. Cramer asked about their lack of stores. Meers said their brand "cachet" is very important and that the right thing to do "is be special." Meers also mentioned their 800 number that operates for home delivery.
Sell Block: Cramer was asked why the sudden switch to Wachovia (WB)? Cramer said Wachovia struggled before the rate cut, but it's going to perform better now that interest rates are lower. "Its value will increase" and investors need to change with new events. He added, "It's more important to be consistent with reality than you were before the world changed."
Sudden Death:
Bullish: Nastech (NSTK), Qwest (Q), China Mobile (CHL), Paccar (PCAR) and NVIDIA (NVDA).
Bearish: Qiao Xing (XING) and Acadia (ACAD).
Yum! Brands (YUM): Cramer asked CEO David Novak how they have stayed consistent. Novak pointed out their "global portfolio" including Taco Bell, KFC and Pizza Hut. Their diversity gives them earnings power and tremendous opportunities to expand around the world. Yum! is the No. 1 retail developer in the world, ahead of McDonald's (MCD) and Starbucks (SBUX). Yum! is building one restaurant per day in China and continues to grow elsewhere, Novak said. Cramer asked Novak what he though about YUM being an unhealthy brand. Novak: Out food tastes good and people are looking for taste. Also, their menu's are getting broader and their growth has been exceptional.
Lululemon Lowdown: (LULU)
Cramer: If you are looking for the next Crocs (CROX) or Under Armor (UA), look at LULU. It's a yoga-apparel company who’s stock is up 28% from when Cramer recommended it two months ago. It has growth potential as a woman’s apparel play; 51% of the population. Cramer spoke to lululemon CEO Robert Meers on the show. Meers thinks it's a global opportunity and that people will pay for their quality products and services. He also said they operate well in college towns. Cramer asked about their lack of stores. Meers said their brand "cachet" is very important and that the right thing to do "is be special." Meers also mentioned their 800 number that operates for home delivery.
Sell Block: Cramer was asked why the sudden switch to Wachovia (WB)? Cramer said Wachovia struggled before the rate cut, but it's going to perform better now that interest rates are lower. "Its value will increase" and investors need to change with new events. He added, "It's more important to be consistent with reality than you were before the world changed."
Sudden Death:
Bullish: Nastech (NSTK), Qwest (Q), China Mobile (CHL), Paccar (PCAR) and NVIDIA (NVDA).
Bearish: Qiao Xing (XING) and Acadia (ACAD).
Labels: ACAD, CHL, CROX, GS, Jim Cramer, LULU, Mad Money, MCD, NSTK, NVDA, PCAR, SBUX, UA, WB, XING, YUM
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