Archive for the ‘HON’ Category

Jim Cramer’s ‘Mad Money’ Recap: Don’t Panic, Just Wait

Tuesday, July 22nd, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- There's no reason to panic and sell, Jim Cramer said on Mad Money Monday as the markets continued to process global worries. But there's also no reason to run out and buy either, Cramer continued, as he urged investors to wait for a better time to buy. So why haven't the markets been crushed by the threat of tougher sanctions on Russia? Cramer rattled off a laundry list of reasons including the fact that Europe, which is far more dependent on energy from Russia, isn't likely to let sanctions get out of hand. That means that some U.S. companies may get hit by a few cents a share in earnings, but nothing that'll really hurt their bottom lines. But the markets are also holding strong on the continued flight to quality in bonds, Cramer added, which is keeping interest rates low. Then there's what Cramer called "company self help," where companies like Allergan are cutting costs to fight off a hostile takeover. Other companies are turning themselves around thanks to activist investors, while still others, like Chipotle Mexican Grill are just delivering stellar earnings that sent their shares up a quick 9%. Don't forget the initial public offering market has been quiet, Cramer added, which also helps the supply and demand equation and helps keep things in balance. Add all these reasons together and its easy to see why the markets just aren't that concerned over Russia, at least not yet. Executive Decision: David Cote For his "Executive Decision" segment, Cramer sat down with David Cote, chairman and CEO of Honeywell , a stock that hit new all-time highs today and is up more than 8% since Cramer last checked in back in January. Cote once again talked about Honeywell's three-legged stool of success. He said it starts with the company's great portfolio of businesses, then is helped along by solid business processes to get the job done and a corporate culture that sustains and innovates. That's how the company can continue firing on all cylinders, Cote said. When asked about the Honeywell's portfolio of energy products, Cote explained his company offers a multitude of products that helps get more from every barrel of oil produced and does so in as eco-friendly a way as possible. But oil isn't even the most exciting part of Honeywell's energy offerings. Cote said his company can extract a drop-in replacement for diesel fuel from oil made with algae and seaweed. He said the cost is equivalent to processing a barrel of transitional oil, but the challenge is investing in the infrastructure to make it happen on a larger scale. Cramer continued his support for Cote and for Honeywell's shares, which he said still have a lot more room to run. That Other MMM It's time to rock and roll with Martin Marietta Materials , makers of the rocks, sand, gravel and aggregates that power our construction industry, Cramer told viewers. Cramer said Martin Marietta's $2 billion acquisition of Texas Industries closed just three weeks ago but it was a transformational deal for the company. Why? Because it gives the company exposure to the red-hot Texas market. In fact, Martin Marietta will now derive 34% of sales from Texas, which is booming thanks to the oil and gas revolution. Don't forget that consolidation is always good for gross margins, Cramer continued. Martin Marietta is no exception. The company expects to see healthier margins with the decrease in competition. Then there's the 2012 highway bill, where the funding is only now flowing into projects. Roads and bridges use a lot of aggregate, Cramer said, and he expects Congress to fully fund the highway bill before the August recess. Shares of Martin Marietta trade at a 30% discount to its rival Vulcan Materials , Cramer noted, but with the Texas Industries deal complete that should no longer be the case. No Huddle Offense In his "No Huddle Offense" segment, Cramer said while he's a big fan of GoPro's cameras and accessories, he's not exactly sure what the company's stock is ultimately worth. Cramer said GoPro remains on the cutting edge of content-enabling devices and has proven its market is a lot bigger than just surfers and other action sports enthusiasts. The company is also profitable. But how big can GoPro ultimately get? It's hard to say. That said, Cramer said he'd be a buyer of GoPro going into its earnings release, which should be stellar. Longer term, however, buyer beware. Lightning Round In the Lightning Round, Cramer was bullish on Sunoco Logistics Partners , Ambarella , Sanchez Energy , Reynolds American , GW Pharmaceuticals , American Airlines and America Movil . Cramer was bearish on Tumi Holdings . Executive Decision: Daniel Starks In his second "Executive Decision" segment, Cramer with Daniel Starks, chairman, president and CEO of St. Jude Medical , a stock that's up just 8% in 2014 after a stellar run in 2013. St. Jude reported a 2-cents-a-share earnings beat on a 3% rise in revenue while raising full-year guidance. Starks said that starting in 2015 St. Jude will begin benefiting from a stream of new products stemming from its recent acquisitions. He said some of those products aim to reduce hospital re-admissions for cardiac patients, something Medicare is rewarding providers for doing. When asked about rival Medtronic's decision to re-incorporate outside of the U.S., Starks said that he's both sympathetic and concerned by Medtronic's decision. He said there's no doubt the U.S. tax code is burdensome and puts U.S. companies at a disadvantage. That said, St. Jude have no plans to follow suit and is instead looking to reduce its taxes as much as possible while remaining in the U.S. Cramer said he thinks St. Jude looks terrific for 2015 and beyond. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Investors Look to Shrug Off Geopolitical Unrest to End Week Neutral

Friday, July 18th, 2014
U.S. markets are trying to put geopolitical unrest behind them and move higher. At midday, stocks look on track to finish the week roughly where they started.

Jim Cramer’s ‘Mad Money’ Recap: Clear the Slate for Earnings Season

Friday, July 11th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- It's time to wipe the slate clean, earnings season is upon us, Jim Cramer told his Mad Money TV show viewers Friday, as he laid out his game plan for next week's trading. Cramer said starting next week, stocks will only move higher if companies can beat on the top and bottom lines and raise guidance for the rest of the year. On Monday, Cramer said he'll be watching for news from the Farnborough Airshow, one of the few times a year when Boeing and Airbus give investors an update on their order book. Expect to hear good things from Boeing. Tuesday, it's earnings from JPMorgan Chase , a stock which Cramer owns for his charitable trust, Action Alerts PLUS, along with Intel and Yahoo! . Cramer said JPMorgan will likely have good things to say, as he expects from Intel. As for Yahoo!, investors will be looking to hear updates on the upcoming Alibaba IPO. Wednesday brings earnings from Bank of America , another Action Alerts PLUS name, and Kinder Morgan Energy Partners . Cramer said he wants Bank of America to just deliver a good, clean quarter with no mistakes, no restatements and no new lawsuits. If they can do that, this stock will have a chance to head higher. As for Kinder, Cramer said he wants to hear if oil is headed below $100 a barrel. If so, that's good news for the transports and retail. For Thursday, it's Snap-on Tools and PPG reporting, two stocks Cramer said are buys, along with Google , an Action Alerts PLUS holding that Cramer likes for the long haul, and IBM , a stock Cramer said could go either way. Finally, on Friday, it's General Electric , yet another Action Alerts PLUS position, and Honeywell in the spotlight. Cramer said he's hoping both these companies offer plans to reignite growth and boost dividends to spur their stocks.Sometimes unhealthy products can create healthy profits, Cramer told viewers, as he took a closer look at a tobacco industry  in the middle of a consolidation wave. Cramer said the just today we learned that Reynolds America , the number-two cigarette maker, is looking to merge with Lorillard , the number-three maker. That would give the combined company 42% market share in the U.S., just behind Altria , with just over 50%. Love them or hate them, Cramer said cigarettes are good business, and as we've seen with the airlines, semiconductors, beer and countless other industries, when there are fewer players, profits soar. In this case, just two companies will control over 90% of the market, Cramer noted, and that can only lead to higher prices and higher margins. Cramer said profits in Lorillard may be capped for the moment, but he's recommending both Reynolds, Altria and Phillip Morris Int'l .Continuing with his "Vice Night" theme, Cramer also took a look at the gambling stocks, offering viewers a fresh ranking of his favorites. Cramer said when it comes to gambling, it's all about China's Macau region, which has been struggling as of late as the sluggish Chinese economy and a crackdown on over-indulgent wealthy Chinese gamblers have weighed on the region. But Cramer said he thinks the downside has been overdone, which makes the casino stocks a buy. Cramer's new favorite was MGM Resorts , which has the least Macau exposure of the group, but a fabulous position in good ol' Las Vegas. Second on the list was Las Vegas Sands , which has more Macau exposure, but less exposure to the big VIP spenders that are getting squeezed. With a 2.7% dividend, Cramer said this stock is a buy at 17 times earnings with its 20% growth rate. Finally there's Wynn Resorts , Cramer's former favorite that he now says he'd avoid, as it has the most exposure to both Macau and the VIPs. "There are better casinos to own," he said bluntly.Off the Tape: Tom Maas, RumChata CEOIn his "Off The Tape" segment, Cramer sat down with Tom Maas, CEO, founder and master blender of RumChata, a blend of rum, cream, cinnamon and vanilla that has become the signature product of the privately held Agava Loco, LLC. Maas invented RumChata in his kitchen five years ago and his company has exploded to $75 million a year in revenues. Agava Loco currently has 20 contractors, but no full-time employees, working for it. When asked how he achieved his success, Maas explained that they only recently started advertising, instead focusing on YouTube and social media to reach out and talk directly to their customers. He said the feedback has been phenomenal, with fans of the brand creating all sorts of concoctions with RumChata. One such drink, which Cramer sampled, was an iced coffee RumChata consisting of three parts coffee, one part RumChata, served over ice. Cramer said that Maas proves that the American dream is still alive and well.Lightning RoundHere's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Friday evening: Southern Company : "If you want a utility, that's a good one. I like it." Core Labs : "This was a disappointing quarter, but its come down enough to own it. I think they'll do better next quarter." Starbucks : "I think you buy half now and if it comes in, you buy the rest." GenCorp : "Aerospace is terrific. I think all these stocks will be taken up next week." Cheniere Energy : "I'm no longer a big fan of the LNG stock, I prefer the partnership, Cheniere Energy Partners ." No Huddle Offense In his "No Huddle Offense" segment, Cramer offered viewers some tough love when it comes to investing in speculative stocks. He said that when you invest in a speculative stock there will be losses, sometimes hideous losses, but if you invest in these names, you need to take responsibility for those losses. Cramer noted that he got criticized for recommending Banco Santander from $6 a share to almost $10, after the stock got crushed earlier this week. He said obviously if you have almost a double in a speculative stock, you shouldn't need him to tell you to take profits and run. Likewise with GW Pharmaceuticals , the British-based medical marijuana drug maker that's been all the rage lately. Cramer said if you can't handle the volatility, you shouldn't invest in a stock like this. Speculate stocks can go to zero, Cramer reminded viewers, that's why they're not for the faint of heart and should never be more than 10% of your portfolio. If the story changes, you need to take the gains, or the losses, and run, he concluded, and you certainly shouldn't wait for him, or anyone else, to tell you to do so. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer’s ‘Mad Money’ Recap: Caution, Not Fear

Tuesday, June 17th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- The stock market has countless risks for investors right now, Jim Cramer told his Mad Money viewers Monday, and he can’t believe what he’s seeing. Yes, markets are still within in sniffing distance of all-time highs, Cramer said. But the pundits aren’t properly discussing how dramatic any upcoming correction might be. That's why it’s not time to go to cash. But investors need to keep that option available given the potential destructiveness of systemic risk in the markets, Cramer said. Just look at the 1930s and the recent financial crisis for example of what happens when investors lose faith in financial system. Cramer pointed to other systemic risk factors that underlie the markets. The impact of high-frequency trading is still unknown. Remember the flash crash? These kinds of risks and countless others are endemic in the market, something all investors must recognize and live with. The best protection against this risk, Cramer said, is investing in quality. Finding solid management and financials combined with a long-term vision for growth is the best thing stock pickers can do to protect against systemic risk. The ongoing situation in Iraq is troubling, Cramer said, and it’s possible that the impact on oil prices could jar the markets. But that's why caution is reasonable and panic about an oil-driven correction is excessive right now. More Tax-Haven Acquisitions Forget tax evasion. Cramer thinks it's time to learn about tax inversion after Medtronic announced a $42.9 billion buy of Covidien Sunday. Tax inversion is when companies based in the United States moves headquarters to an overseas tax haven to avoid high taxes. Covidien is a great example of this practice, headquartered in Massaschusetts but domiciled in Ireland to take advantage of a relatively low tax rate. So what other companies might provide a way to capitalize on tax inversion? Cramer thinks Eaton , an industrial manufacturing company, is an American company domiciled in Dublin. Cramer thinks Emerson Electric or Honeywell could save themselves a huge chunk of their tax bill by acquiring Eaton, which Cramer said is “a terrific company.” Other possibilities are TE Connectivity , Pentair , Chicago Bridge and Iron and Ensco , a holding in Cramer's charitable trust, Action Alerts PLUS. Yes, it’s ridiculous, Cramer admitted. But companies have figured out a way to make a bunch of extra money through virtual globetrotting without ever having to leave home except to check the mail. Unilever Is a Winner Feeling some World Cup fever, Cramer kicked off a week-long look at good companies located in countries favored in the quadrennial soccer championship. Cramer says there's a lot to like in the Netherlands, which beat Spain recently. There's even more to like about Unilever , which trails only Procter & Gamble and Nestle for market share control of the consumer goods industry. Cramer likes Unilever’s "iconic" brands, reliable dividend and emerging markets exposure. The company counts Lipton, Breyer’s, Knorr, Dove and Vaseline among its roster. Unilever is looking to pull back from its food business, selling low-growth assets and weaker performing brands. Not only does the Netherlands have a decent chance at winning this year’s World Cup, Cramer said, but it’s also home to some pretty fantastic companies. Unilever, with its "amazing emerging markets exposure," is a true standout. Lightning Round In the Lightning Round, Cramer was bullish on Moody’s and Magnum Hunter . Cramer was bearish on Molycorp , Pandora and Coupons.com . No Huddle Offense During his "No Huddle Offense" segment, Cramer discussed Starbucks’ announcement Monday that it would provide discounted online college education for its employees through an agreement with Arizona State University. Cramer called it “revolutionary.” Many of his Wall Street colleagues thought it was a public relations ploy, Cramer said. It’s good publicity, no doubt. It’s a great idea. People do better with college degrees. He thinks it’s one of those occasions where doing good is good for everybody involved: customers, employees and stockholders. A company with a conscience does better at creating value, Cramer said. Given the performance of Starbucks’ stock vs. its peers, that’s empirically true. Educational benefits for employees can help a company hang on to its best and brightest. That comes back to its shareholders in the long run. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Cramer: A ‘Who’s Who’ of Tax-Domicile Targets

Monday, June 16th, 2014

NEW YORK (Real Money) -- That's it, I have had enough. With today's Medtronic -Covidien tie-up, it pays to just explore the lunacy of what's known as tax inversion and come up with a "who's next" list of takeover targets. Even though Covidien is ostensibly located in Mansfield, Mass., its principal executive office is listed as 20 Lower Hatch Street, in the fine city of Dublin, Ireland. While I have been recommending Covidien ever since the breakup of Tyco , in part because of a series of terrific patient-monitoring and blood-flow devices, it appears that Lower Hatch Street address in Dublin was the main reason it got a bid from Medtronics. Why not? As long as 20% of the new shares go to the acquired company, a huge amount of taxes are saved, and overseas cash can be deployed in a much more tax-efficient manner, given the high U.S. corporate tax rate. So let's figure out, using that pattern, what's going to happen next. Located not too far down the road from Covidien is Eaton , a terrific electronics company that's known for fantastic products in everything from lighting and the electric grid to aerospace and trucking. Yep, you may have thought that Eaton was the corporate pride of Cleveland, Ohio, not unlike the Cleveland Browns, Cavaliers or the tribe itself. Wrong! Eaton is located at Fitzwilliam Hall, Fitzwilliam Place, Dublin 2, Ireland. I stayed at the Four Seasons in Dublin once. Had I timed it better, I could have gone to Eaton's annual meeting, which gets held there. I think Emerson or Honeywell could save themselves a heap of taxes by buying Eaton. It has the added advantage, like Covidien, of being a terrific company, too. Covidien is a function of a spin-off from Tyco, not unlike TE Connectivity , the old AMP. You know AMP, don't you? It's the proud Pennsylvania connector company that was purchased by Tyco for $11 billion back in 2003, during the heyday of convicted felon Dennis Kozlowski. Did you know that TE Connectivity is actually located on Rheinstreasse 20, CH 8200 in Schafhausen, Switzerland? I can't think of a better place for Washington, D.C.-based Danaher to relocate to, can you? The fit is pretty darned perfect, too, given all of that instrumentation that Danaher has. Or would it be better if it bought Pentair ? That's another Schafhausen, Switzerland company that also has a U.S. presence in Minneapolis, Minn. That fluids-control business of Pentair's is a difference-maker, although it doesn't make as big a difference as the tax domicile does. The old joke about Chicago Bridge & Iron is that it doesn't make bridges or iron and isn't located in Chicago. You might have thought it was located in Houston, Texas, at One CB&I Plaza. Looks like the punchline of that old joke is wrong, too, because CBI is located in The Hague, Netherlands. How convenient is that for a company such as Fluor ? That firm is ostensibly located right down the road, in Irvine, Texas, and could certainly pick up this competitor. This game can and will go on and on. Tyco, now a fire-and-prevention company, would fit well into the stable of Honeywell or DuPont fire-and-safety divisions, and Tyco is headquartered in Neuhausen, Switzerland. How about Alkermes ? This is the terrific drug company that is working on a ton of amazing treatments for mental illnesses, and it happens to be located on Burlington Road in Dublin, unless you are counting the Waltham, Mass., facility. There are lots of U.S. companies that could save a boatload giving 20% of a combined entity to that $6 billion company. Furthermore, please don't forget those fabulous Geneva- and London-based oil-services companies, Weatherford and Ensco . Do you think it matters that Weatherford is named after Weatherford, Texas, where the company was founded, or that its operational office is currently located in Houston? Do you think it matters that Ensco is a Dallas company that has said it will put "a large number" of people in London? Yep, we could go on and on. All I can say is that every one of these "real" American companies is now a candidate to be bought because of the tax-code ridiculousness and the seriousness of avoiding taxes. If Pfizer had wanted AstraZeneca , and if Medtronics has gotten Covidien, you can bet that any one of these companies could be next. I know it is silly, but there is some truly nonsilly money to be made going virtual globe-trotting while never having to leave home, except to pick up the mail. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long ESV. Editor's Note: This article was originally published at 7:32 a.m. EDT on Real Money on June 16 Fusion-io Soars Following SanDisk Buyout 3 Big Stocks on Traders' Radar

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Aerospace, Defense Funds Are Quietly Beating the Market in 2014

Tuesday, May 27th, 2014

NEW YORK ( TheStreet ) -- Aerospace and defense funds have been soaring lately although you'd think no one was noticing. During the past year, iShares Dow Jones U.S. Aerospace & Defense ETF returned 37.4%, compared with 17.6% for the S&P 500 Index. Another exchange-traded fund that gained more than 30% was PowerShares Aerospace & Defense (ETF). The big gains came as many companies in the sector reported surprisingly strong earnings. Defense stocks had been under a cloud because of the spending reductions caused by the sequester that went into effect in March 2013. But the Washington cutbacks did less damage than many Wall Street analysts expected. Worried about declining sales, defense contractors prepared for the sequester by laying off employees and cutting costs sharply. In addition, foreign sales remained strong. As a result, profit margins proved resilient. Can the sector continue climbing? Yes. Even if defense spending shrinks in coming years, some businesses seem likely to grow. Sales abroad should climb as countries such as Japan and Korea increase their defense budgets. The industry should also enjoy growing demand from civilian airlines. As the global economy expands, more people are flying. According to the International Air Transport Association, global airline traffic increased 5.2% in 2013. That growth should continue at a 5% rate in coming years. The gains should be even stronger in the emerging markets of Asia and Latin America. The positive outlook is causing many airlines to increase their orders for new planes. "Orders are at historic highs as many airlines are expanding or replacing aging fleets," says David Mazza, head of ETF investment strategy for SPDR ETFs. The strong demand is boosting Boeing, which is a big holding in all the defense and aerospace ETFs. The company's revenue increased 8% in the first quarter, while earnings gained 14%. Boeing's performance should remain robust for years. The company has a backlog of $440 billion worth of orders. The fuel-efficient 737 plane is proving especially popular and has recorded 2,000 orders. Strong sales from Boeing will help a host of parts suppliers, says Tobias Welo, a portfolio manager at Fidelity Investments. Fidelity Select Defense & Aerospace Portfolio, an actively managed mutual fund, holds stakes in a number of suppliers, including United Technologies and Honeywell International. "The revenue outlook is improving because of new orders and demand for spare parts," Welo says. Make no mistake, defense cuts will hurt some contractors. After peaking at $700 billion in 2010, the defense budget is likely to hit around $500 billion in coming years. The number of soldiers in the Army will drop from a recent high of 570,000 to 440,000. But some contractors can continue to thrive because the budget will still fund many weapons systems. Among the healthiest performers has been Lockheed Martin, the nation's biggest defense contractor. In the first quarter this year, sales rose 4%, while earnings climbed 23%. The company derives a big percentage of its revenue from the F-35 Joint Strike Fighter, a program that the Air Force is planning to continue. Besides weapons, Lockheed Martin is also a major supplier of information technology to many parts of the government. Demand for technology systems should continue to grow even if the number of military personnel drops in the future. Another stock that recorded big gains in the past year is General Dynamics. While the company is known for producing submarines and tanks, much of the growth has come from Gulfstream private jets. Some corporate customers are waiting four years to get their hands on models that sell for more than $60 million. Private jets should soon account for half the company's earnings. >>Read More: Bank of America Tries to Bounce Back From $4B Capital Blunder >>Read More: Best Buy: Dead and Dangerous Money >>Read More: Microsoft, Alliance Data Among Picks for a Rising Rate Cycle At the time of publication, the author had no position in any of the funds mentioned. Follow @StanLuxenberg // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]> This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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Smith & Wesson, PetSmart Report Earnings, Jim Cramer Takes Profit

Wednesday, March 5th, 2014
PetSmart will report earnings today, and while the share price has stalled recently it has been an outperformer during the global financial crisis.

Jim Cramer’s ‘Mad Money’ Recap: Don’t Panic

Thursday, January 30th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- "I'm old. In most cases, that's a bad thing," Jim Cramer said on "Mad Money" Wednesday. But occasionally there are benefits to being old -- and today is one of those days. These are not normal times, even in earnings season, he said. Wednesday's weakness had nothing to do with earnings, which were predominately good. The weakness, Cramer said, is about emerging markets, and the impact on our own stock markets. Cramer said he's uniquely qualified to riff on this spillover because he's been around long enough to remember investing through other emerging markets panics just like we're having right now. Turkey hiked interest rates on Tuesday night, hoping that people would stop taking money out of the country, Cramer said. He remembers that 22 years ago, Turkey was supposed to be the next Germany. He couldn't resist investing there. Well, currencies declined and in a month his money was cut in half, and then halved again as international currencies spiraled out of control. The reason you hear so much concern over markets like Turkey, Cramer said, is the concern that its problems could spread. What about Mexico? In 1994, it was all the rage. Cramer learned to stick to his knitting after his Turkey experience and keep his money at home -- and gained. Don't let the discussion about emerging markets scare you off your game, Cramer said. Stay focused on what works. This isn't like the recent euro mess, which shellacked some of the world's most developed economies. Cramer said to be patient in the face of what could be a 5% decline. It's time to evaluate your timeline. If you're in for the long haul, get your shopping list ready. You might need it. Executive Decision: Dave Cote Even though everyone seems terrified about the global economy, let's not get too despondent, Cramer said. There are still plenty of high-quality companies that are executing fabulously. Consider Honeywell , a holding in Cramer's charitable trust, Action Alerts PLUS. Last Friday, it reported great results and strong headline earnings that were lost in the shuffle of a major market selloff. CEO Dave Cote said he is very bullish on aerospace. Honeywell's aerospace segment makes up about 32% of its total sales. He said he looks at macro trends such as what is likely to happen over decades. Cote doesn't see a future where planes aren't a bigger piece of the overall pie as the world becomes more wealthy, especially in GDP per capita. Families are more dispersed, businesses become more global, and cars can't get you to those places. His company is paying attention to China, Cote said. China became Honeywell's second-biggest country for sales in 2013. Economic statistics in China aren't wholly reliable, but Honeywell is bullish on the country, with organic growth of 13% in the fourth quarter of 2013. Cote also touted Honeywell's turbocharger business, which utilizes the company's technology in jet engines with fuel efficiency implications for automobiles. Executive Decision: Doug Parker Cramer has avoided recommending airlines until recently. But with just four carriers handling 80% of domestic flights, he thinks airlines are a great buy now, none more so than the new American Airlines Group . CEO Doug Parker said the airline industry is night and day different from a generation ago. Through a number of mergers, the industry can now provide a scale that makes sense and get passengers where they want to go efficiently. It's now a business that works for investors and customers. We can always fill airplanes, Parker said. The question is, can we fill the seat at a level that covers the cost of flying that seat around? Parker said that's what the company has done poorly in the past, and that's what it's trying to doing better now. Noting the company's $10.3 billion in cash, Parker said, "We're going to look ahead and if we feel good, we'll be paying down debt and eventually returning it to our shareholders." Lightning Round In the Lightning Round, Cramer was bullish on American International Group , American Airlines. Henry Schein and B&G Foods . Cramer was bearish on Jones Energy , JetBlue Airways and ConAgra . Executive Decision: David Demshur Core Laboratories President and CEO David Demshur spoke with Cramer on the heels of the company posting quarterly highs for EPS, net income and revenue. CLB reported revenue up 9% year over year, with EPS increasing by 22%. Cramer considers this stock to be the scientist of the oil and gas industry. Demshur attributed his company's strong quarter to some new technology and activities in domestic shale plays and the Golden Triangle in deepwater areas offshore in Brazil, West Africa and the Gulf of Mexico. It provided the company with its fifth consecutive record quarter in EPS, net income and revenue. Core Labs has about 1,200 reservoirs, with plans to add 50 fields per year. Demshur says its technology enables oil companies to determine reservoir quality to better estimate their profits. Every frack stage is an opportunity, Demshur said. "We are high on the Permian Basin assets," Demshur said, and think there are additional billions of barrels of oil to be recovered there over the next several years. Core Labs expects North American activity levels in the first quarter of 2014 to ramp up from the previous quarter. Cramer said that if you believe in the technology of oil, you believe in Core Labs. No Huddle Offense There used to be a time when the State of the Union was an event on which you could invest, Cramer said. It would be terrific if we could convince countries to take more of our goods while not taking more of our jobs, and polluting less with the jobs they do take. But the opposite is true, Cramer thinks, and the President's annual speech is not all that investible. The nod to natural gas? Cramer looked at the text of the 2012 text that said the exact same thing and nothing happened. Companies like Clean Energy Fuels and Westport Innovations jumped up temporarily before returning to previous levels. It was a very nice speech. Still, the President can't get anything through Congress, and Cramer said he certainly wouldn't invest as if he could. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Chris Sahl in Boston.

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Jim Cramer’s ‘Mad Money’ Recap: Where Have All the Sellers Gone?

Wednesday, January 29th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- "I like to buy stocks when they're on sale and sell them when they're overpriced," Jim Cramer told his "Mad Money"  viewers Tuesday as he pondered where all of the sellers have gone. Cramer said there were plenty of sellers sending shares of Google , a stock he owns for his charitable trust, Action Alerts PLUS, lower over the past two days. Shares fell $18 Friday and another $21 Monday -- Cramer said that was the time to buy, at the lows. Google shares rebounded nearly 2% in today's session. Netflix was another great stock that was put on sale, said Cramer, falling nearly $15 at its lows. He said Amazon.com is yet another stock that's perfect for buying on a pullback. And then there's Apple , another Action Alerts PLUS holding. Last quarter, Apple gave guidance and on Monday the company said it beat that guidance. Is it the company's fault it didn't sell the 56 million iPhones analysts were expecting? They never said they would. Apple also didn't offer guidance on China, or announce any new products, but is it their fault that analysts were hoping they would? Apple is still a great company, Cramer said, as are all of these names. Yet, all of these stocks were put on sale by the markets, and the time to buy them was yesterday at the bottom. Buying on weakness is how money is made, Cramer concluded. Executive Decision: Scott Wine For his "Executive Decision" segment, Cramer spoke with Scott Wine, chairman and CEO of Polaris Industries , makers of snowmobiles and ATVs. Shares of Polaris are up 51% since Cramer first got behind the company in October 2012, but are now off $18 on disappointing 2014 guidance and overall market weakness. Wine said Polaris had a great fourth quarter with sales up 20%, which translated to a penny-a-share earnings beat. He admitted the consumer is under increasing pressure, but Polaris plans to combat that pressure by continuing to innovate. Wine said Polaris never rests on its existing products and relies on innovation to continue its market leadership position. This year, Polaris will be introducing new products in every category, he noted. When asked about growing inventories at the dealer level, Wine explained that with a growing product line, dealers are carrying more inventory and, in many cases, wish they had more, not fewer, items in stock. That said, Polaris is still working hard to manage inventories better to make sure dealers have what they need when they need it. Cramer urged investors to read the reports Polaris puts out because the company lays out an honest depiction of its business, outlining both the good and the bad, making sure there are never any surprises. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleagues Carly Garner and Carolyn Boroden over the direction of the overall markets. Garner looked at a long-term monthly chart of the S&P 500 and noted that according to the RSI, or relative strength indicator, the index has been in overbought territory for quite some time, signaling the markets have moved too far, too fast. The last time the markets saw peaks this high were right before the 2007 and 2001 downturns. Ouch. Turing to a daily chart, the S&P has been consistently seeing a floor of support at its 100-day moving average, which is now $1755, or 2% lower from current levels. Garner noted if the S&P doesn't hold that level, things could get ugly, fast. Boroden offered a different take, noting that with the markets near a floor of resistance, the rally could resume soon. But, she also cautioned that the S&P must clear resistance at $1823 or that rally will vaporize. Boroden also looked at the Dow Jones Industrial Average, noting that the Dow could see a 900-point decline, while the tech-heavy Nasdaq is also signaling overbought conditions also not seen since 2008, 2001 and, yes, 1987. Cramer said these charts should tell investors the market technicians will be ready to sell at a moment's notice, so they need to be prepared for increased selling on the next down day. Lightning Round In the Lightning Round, Cramer was bullish on Pfizer , Bristol-Myers Squibb , Acadia Healthcare , American States Water , Aqua America , Agilent Technologies and SandRidge Energy . Cramer was bearish on Arena Pharmaceuticals and Windstream . Cramer on the Gridiron With the Super Bowl just days away, Cramer once sat down with Eric Grubman, executive vice president of the National Football League, to talk about the business of football. Grubman said that only the NFL, with its hundred of millions of fans around the world, is able to move the needle for its advertisers and partners. He said sponsors such as Procter & Gamble are seeing a lot of success with their NFL affiliations. Grubman said the rise of fantasy football has also helped to bring the sport to thousands of new families and is bridging generational gaps and appealing to the statisticians in all of us. When asked about charges the NFL doesn't pay its fair share of taxes, Grubman responded that the NFL does pay taxes, but it does so when the money is distributed to the teams. He also noted that everything the league does is fully audited. Finally, when asked whether there is any chance of a power outage at the game, Grubman said that the stadium is ready and the lights will be on. No Huddle Offense In his "No Huddle Offense" segment, Cramer told viewers that in today's market "lumpy" equals sell. Apple may have beaten its estimates but iPhone sales were, well, lumpy, and that led to shares selling off hard. Seagate has been doing everything right, buying back stock and boosting its dividend, but sales were also lumpy, plunging shares 11.5%. Cramer said investors have no tolerance for inconsistency, which is why shares of Ethan Allen have floundered because its sales are up one month, down the next. Then there's all of China -- no consistency there either. What has no lumps? How about United Technologies or Honeywell ? Cramer said momentum is building at both those companies. DR Horton is another standout, with its share up 9%, with no lumps to be found. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer’s ‘Mad Money’ Recap: The Market’s Wild Ride

Thursday, January 23rd, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- The markets are moving at lightning speed, Jim Cramer said on "Mad Money" Wednesday. That means in order to be successful, investors need to be able to navigate the crosscurrents in real time. That was the case with Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. Apple had been trading for weeks on expectations of sales in China. Today, activist investor Carl Icahn called the company "disgraceful" for not returning more capital to shareholders -- instantly, the markets forgot about China and started trading on Icahn. eBay posted in-line earnings today with miserable guidance, but all turned sunny when Icahn made a comment that he may get involved with the company and advocate a breakup. Another company that turned on a dime was Netflix , which saw shares surge 17% on huge earnings and subscriber growth. Meanwhile, IBM shares fells as its lofty goals and five-year plans appear to be faltering badly. In other sectors, from oil and natural gas to telco equipment, the trading has been fast and furious, Cramer concluded. That's why investors need to hold onto their hats and prepare for what could be a wild ride. Executive Decision: Moshe Gavrielov For his "Executive Decision" segment, Cramer spoke with Moshe Gavrielov, president and CEO of Xilinx , an Action Alerts PLUS holding that's proven Cramer's rule of never trading the headline. After shares plummeted on a penny-a-share earnings beat with weaker guidance, they quickly rebounded 2.2% as savvy investors looked at the key metric, Xilinx' new 28-nanometer chip sales, which were up 79% year over year. Gavrielov said that while Xilinx was only able to deliver at the low end of its revenue range for the quarter, its other metrics came out just fine. He said the company is still on track for 2% to 6% growth for 2014 and the company is still in the early stages of the new 28 nanometer rollout. When asked why 28 nanometers is so important, Gavrielov explained these new, smaller chips are necessary to bring features like video to cellphones. Video is very demanding on both phones and infrastructure, he noted, which is why we're seeing a surge in spending to keep wireless customers happy around the globe. Turning to the topic of gross margins, Gavrielov said that while margins came in lighter this quarter, he fully expects Xilinx' other, higher margin businesses to catch up later in 2014, returning margins to traditional levels. Cramer said pointedly that shares of Xilinx are headed higher. Diageo vs. Brown-Forman With the news that Beam is getting taken over at a 25% premium, there's no denying the spirits business is on fire, Cramer told viewers. But of the two remaining pure plays, Diageo and Brown-Forman , which one is the better investment? Cramer said while he likes both companies and both stocks he's giving the edge to Brown-Forman. Cramer said Diageo remains a terrific long-term investment, but in the near term the company derives 42% of its sales from the emerging markets, which have been spotty of late. The company does sport a 3% yield, but it also trades at 19 times earnings with an 11% growth rate. Given that shares are at their 52-week highs, Cramer said he needs to see a meaningful pullback before he'll find Diageo compelling. Brown-Forman, on the other hand, is the smaller of the two companies and has more room to grow. The company is levered to whiskey with its Jack Daniels brand and whiskey is outperforming the industry as a whole. Forman currently gets 45% of sales from the U.S., with far less stemming from emerging markets. The company's prospects in areas like Russia and Poland are sizable. Cramer said he'd also like to see a pullback in Brown-Forman as well, but even at current levels the stock is attractive. Lightning Round In the Lightning Round, Cramer was bullish on Boston Private , Tesla Motors , LinkedIn and Apollo Group . Cramer was bearish on Comstock Resources and Caterpillar . No Huddle Offense In his "No Huddle Offense" segment, Cramer reminded viewers that when it comes to trading around earnings season, it's all about expectations. Expectations determine whether a stock trades up or down and by how much.That's why a stock like Coach saw its shares crushed after it reported. The stock was well off its lows and investors were blindsided by same-store sales that were twice as bad as expected. That's also how a stock like Norfolk Southern saw its shares spike when it reported. Earlier in the week, the expectations were that Norfolk would follow its rival CSX lower. In the case of Intel , an Action Alerts PLUS name, Cramer said expectations had simply gotten so high, there was no way the company could ever meet them. Those were just three examples of why expectations are everything when it comes to earnings. Am I Diversified? In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included Royal Bank of Canada , Suncor , Coca-Cola , Altria and McDonald's . Cramer said this portfolio had too much food and beverage and needed to sell Coke and add a drug stock like Bristol-Myers Squibb . The second portfolio's top holdings included International Game Technology , Wisdom Tree , U.S. Ecology , Precision Castparts and Estee Lauder . Cramer said this portfolio was properly diversified. The third portfolio had Google , Gilead Sciences , JPMorgan Chase , Honeywell and Walt Disney as its top five stocks. Cramer said he seas a big fan of this portfolio and its diversification. The fourth portfolio's top stocks were Seadrill , NXP Semiconductor , Biomarin , American Railcar and International Game Technology . Cramer also blessed this portfolio as properly diversified. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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