SA Editor Miriam Metzinger
Stocks discussed on the
of Jim Cramer's Mad Money TV Program,
Friday December 13.
10 Earnings To Watch In The Week Ahead: Jabil Circuit (
), Fedex (
), General Mills (
), Lennar (
), Oracle (
), ConAgra (CAG), Darden (DRI), Nike (NKE), Pier One Imports
(PIR), Finish Line (FINL). Other stocks mentioned: Toll Brothers
(TOL), Myriad Genetics (MYGN), Tesoro (TSO), Apple
During the weekend, PMI numbers will be released from China and
later from Europe. These numbers might set the tone for the week.
In addition, there is a Fed meeting on Wednesday. Cramer does not
fear taper as much as others, but the meeting may have an effect on
stocks. Cramer discussed earnings to watch in the week ahead.
Jabil Circuit (
) used to be an amazing stock, but not so much now. The main reason
to watch Jabil is as a barometer of demand. Apple (AAPL) may be
affected by Jabil's results.
) made a journey from the $80s to the $130s and has been rebounding
on global growth and restructuring.
General Mills (
) has gone from being a strong defensive stock to one that has a
large short position. With bond equivalents suffering because of
the possible end of ultra low interest rates, Cramer thinks GIS
might get sold no matter what.
) is a well-run homebuilder that is down 9% for the year. Be
careful if it opens up prior to its earnings, because it could get
taken down like Toll Brothers (TOL) was.
) is not worth owning because cloud plays are taking serious market
share from Oracle.
ConAgra (CAG) might have bitten off more than it could chew with
the Ralcorp acquisition, but it is worth checking in to see if
things are going well. Cramer would not bet on it ahead of the
Darden (DRI) has significant potential growth with new
management. Darden tends to get hit on earnings, and Cramer would
buy it after it reports.
Nike (NKE) has come down nicely and should give strong earnings.
Cramer would buy it ahead of earnings.
Pier One Imports (PIR) disappointed last time, but Cramer thinks
it will deliver. PIR is a buy ahead of earnings.
Finish Line (FINL) will probably report a strong quarter.
Cramer took some calls:
Myriad Genetics (MYGN) has exposure to cancer research, which is
a space that is working. Cramer would buy, but only as a spec.
Tesoro (TSO) benefits from the price differential in oil, and
Cramer likes Tesoro.
Know Your IPO: AMC Entertainment (AMC). Other stocks
mentioned: Restoration Hardware (RH), Hilton (HLT)
Cramer discussed AMC Entertainment (AMC), the second largest
cinema operator in the U.S. It will be having its IPO this week and
is expected to price between $18-20, although Cramer believes in
the story so much, he would pay up to $23 in the aftermarket. Many
people believe that movie theaters are in secular decline, but
attendance this past year was at an all-time high. AMC has 36%
market share in most of the major American cities and can charge
more for tickets and refreshments. It has the highest concession
sales per moviegoer in the industry and is building out Imax
theaters. The company is installing electric recliner seats, and
although the restructuring is expensive and reduces capacity, the
changes have dramatically increased attendance in AMC's theaters to
the point where the remodeling is paid for in the first year. AMC
is also beginning to offer seatside food service, bars and lounges.
Cramer thinks this is one of the few IPOs worth buying in the
Cramer took some calls:
Restoration Hardware (RH): Investors panicked when the co-CEO
left, but "everything was on target" in the conference call. "That
was a good quarter," said Cramer.
Hilton (HLT) dipped after its IPO, and Cramer thinks it has at
least another 4 points. It is not too late to buy Hilton.
CEO Interview: Doug Tough, International Flavors and
International Flavors and Fragrances (IFF) produces flavors and
fragrances for personal care items, foods and household products.
The company uses technology to develop proprietary tastes and
smells. It is currently 5 points off its 52 week high and has given
a 41% return since Cramer got behind the stock 18 months ago. IFF
is partnering with biotech companies to perfect its innovation. CEO
Doug Tough thinks the next quarter is going to be strong; "The
pipeline is as good as it has ever been."
CEO Interview: Tarek Sherif, Medidata Solutions
Medidata Solutions (MDSO) is a cloud play for pharma and biotech
companies. MDSO runs clinical trials on cloud-based software, and
can dramatically cut the time required for trials and save
companies money. The stock has risen 193% year to date and has a
large multiple of 70 compared to its 23% growth rate. While Cramer
doesn't usually like to recommend a stock with a valuation more
than double its growth rate, MDSO's addressable market is huge, and
it has accelerated revenue growth. The stock has risen 50% since
Cramer last spoke to CEO Tarek Sherif in July. Cramer thinks the
stock could go higher.
A Lesson From Adobe (ADBE)
Adobe (ADBE) reported a quarter that seemed like a huge earnings
miss, but those who know Adobe know that it trades off of cloud
orders and subscriptions and not earnings per share. Sure enough,
subscriptions were strong, the shorts had to cover, and the stock
gained $6.90, or 12%. The moral of the story; not all stocks trade
on earnings per share. Investors need to know what metrics move
their stocks the most.
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