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Jim Cramer’s ‘Mad Money’ Recap: 5 ‘What If’ Scenarios That Could Change Markets

Tuesday, March 24th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Every good investor needs to challenge their investing theses by asking "what if," Jim Cramer told his Mad Money viewers Monday. That's why Cramer offered up five "what if" scenarios that could change the equation of the markets. What if... the U.S. dollar stops going up? The markets are acting as if the dollar is headed up in a straight line. But what if it doesn't and actually gets weaker? That would leave a lot of hedge funds on the wrong side of the trade. Must Read: 5 Stocks Warren Buffett Is Selling What if... Europe is getting better? It appears that Germany may be strong enough to pull the whole continent along with it and Greece, unlike 2011, isn't likely to spread a contagion to other countries in the EU. What if... oil has bottomed? Industry experts say oil doesn't belong at $43 a barrel. What if they're right and there really is a lot more demand than we think? What if... the Apple Watch is the real deal? Apple's new device is a lot more than just a watch, it could revolutionize health monitoring and fitness and be a real game changer. That's why Cramer owns Apple for his charitable trust, Action Alerts PLUS. And finally, what if... social media is once again taking share from traditional media? That would make the moves in Facebook and Twitter , two more Action Alerts PLUS names, only the beginning. If any, or all, of these "what if" scenarios are true, then the market's current pause will likely only be temporary. Stick With Semiconductors With semiconductor companies like Intel and Micron painting a bleak picture for the entire industry, is it time for investors to take a pass on the whole sector? It sure seems that way with shares of Sandisk , Western Digital and Seagate all down by double digits for the year. Not so fast, Cramer told viewers. PCs are indeed in decline, but PCs don't make up the entire industry. Cramer is still a fan of Skyworks Solutions , which makes chips for smart homes, smart cars, wearables, cellphones and more. He also gave the nod to Cypress Semiconductor , along with Avago Semiconductor and Qorvo , all of which have little to no exposure to traditional PCs. Cramer is also on record as being a big fan of NXP Semiconductor , also a one-stop shop for all things smart, thanks to its merger with Freestyle Semiconductor. So while PCs may indeed be fading away slowly, this next batch of semi stocks are only just beginning to become household names. Must Read: Jim Cramer Digs Into Dozens of Charts, Finds 7 Pillars of Health Care Strength Why I Like Williams-Sonoma Sometimes the market doesn't get it right and totally misjudges a company's earnings entirely. That was the case with Williams-Sonoma , Cramer told viewers, as the company delivered only in-line earnings with the slowest same-store sales growth it has seen in two years. Williams-Sonoma is not a troubled company, however, it's a fabulous company that encountered one big problem -- the West Coast port shutdown left much of its merchandise at sea. Cramer noted the underlying business, as all of Sonoma's brands including Pottery Barn and West Elm, are in great shape and the port problem is only a temporary issue. So while analysts fret over the company's lowered guidance, Cramer thinks the company is setting itself up to under-promise and over-deliver now that its merchandise is once again flowing into stores. The company's online sales, now 50% of its revenue, are on fire and West Elm in particular is growing its in-store sales by 19.6%. With shares trading at just 19 times earnings, still below where they were when the company reported its quarter, Cramer said they remain a steal for this terrific growth retailer. Executive Decision: Inge Thulin For his "Executive Decision" segment, Cramer spoke with Inge Thulin, chairman, president and CEO of 3M , a stock with a 2.5% dividend yield that's risen 28% over the past year, including reinvested dividends. Thulin said nearly a third of 3M's products didn't exist five years ago, a fact that helps his company maintain its 3% to 6% organic growth targets every year. He said that 3M continues to stay relevant with its customers thanks to its innovation. 3M currently has over 46 technology platforms, Thulin noted, and a platform like its woven materials is able to produce items as diverse as respirators, air and water filters and insulation for clothing, cars and planes. How does 3M manage a global organization so well? Thulin said by hiring people who were born and raised all over the globe, people who understand what's really happening on a local level. With all its innovation and its commitment to its dividend and share buyback program, Cramer said 3M remains a core holding that he will continue to recommend for all investors. Must Read: 5 Big Stocks That Want to Pay You More in 2015: Dividend Preview Lightning Round In the Lightning Round, Cramer was bullish on Lowe's , Home Depot , Northrop Grumman and Service Corp . Cramer was bearish on VipShop and Mobileye . Cramer's Homework In his "Homework" segment, Cramer followed up on several biotech names that stumped him over the past few weeks. Cramer said that while Intrexon has been on fire, up 57% so far this year, and has seen some positive Phase I data and a strong quarter, he cannot recommend shares until they've pulled back from these lofty levels. Cramer was not able to endorse Avalanche Biotechnologies , a stock that's down 20% in 2015, because this speculative stock is a long-term story whose time has not yet come. Finally, Cramer was especially leery of Northwest Biotherapeutics , an immunotherapy company that's too small, too risky and is losing money with only $13 million left in the bank. Must Read: 11 Promising New Drugs Expected to Make Billions in Sales 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.  

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Jim Cramer’s ‘Mad Money’ Recap: This Maddening Market Can’t Make Up Its Mind

Wednesday, March 18th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- The trend is not your friend in this market because there is no trend, Jim Cramer told his Mad Money viewers Tuesday after the markets reversed course following yesterday's rally. The market just can't seem to make up its mind as its many cross-currents collide. Cramer called the market action "maddening" because the earnings estimates for many companies are still too high. He noted that when Intel pre-announced a horrible quarter last week, the stock barely moved. Yet, Intel's slowing PC business has negative pin action for the likes of Micron and Hewlett-Packard , among a host of others. Outside of tech, currency woes are still weighing on the auto sector and the airlines fear losing tourism due to a strong U.S. dollar. But while those sectors weaken, biotech continues to roar, with Regeneron and Esperion Therapeutics leading the charge in today's session. Even in tech there are cross-currents, with Adobe Systems disappointing while Oracle remains strong. Leader vs. Laggard In a topsy-turvy market like ours, professional money managers are playing the game of leader vs. laggard, and you should, too. Cramer explained how the game works. First, you take a sector. In this case, Cramer dove into the retail and restaurants groups. Then you compare the leaders in the group to the laggards to figure out which is worth owning. Among the strongest in the retail group is Urban Outfitters , up 26% for the year after a stupendous transformation. Compare that to a laggard, Macy's , which is only up 2.5% in 2015. While Macy's may be the underdog, there's simply no catalyst or reason to own it. That's why Cramer chose to stick with Urban, as momentum often drives the retail sector. Then there's the matchup between Ross Stores and TJX Stores , two off-price retailers cashing in big on the recent West Coast port strike. Ross is up 13% while TJX is flat on the year. Here Cramer chose neither stock. In the restaurant group, there's Jack in the Box , up 22%, versus Chipotle Mexican Grill , essentially flat on the year. Here Cramer chose to stick with best of breed, Chipotle. These are the kinds of decisions money managers are making every day, Cramer concluded. Stick with the winners or trade down to the laggards and play catch-up. There's never an easy answer. Must Read: Warren Buffett Loves These 4 Tech Stocks Cramer's Brackets: Kentucky, Kansas  Continuing his week-long series looking at the stock market through a basketball-inspired March Madness lens, Cramer dove into the midwest region to see what stocks came to mind. When thinking about the ever-dominant team of Kentucky, Cramer said Apple , a stock he owns for his charitable trust, Action Alerts PLUS, was the right fit. Trading at just 13.7 times earnings, Apple remains a stock to own, not trade. Next is the Kansas Jayhawks, a chronically underestimated team that reminds Cramer of General Motors , another Action Alerts PLUS holding and a well-run company trading at just 7.6 times earnings. When thinking of Notre Dame, Cramer said Starbucks , yet another Action Alerts PLUS holding, is the best fit, as this company is also back in top form. Finally, there is Maryland, the luckiest team in the league, which reminds Cramer of Tesla Motors , the luckiest cult stock in the entire stock market. Executive Decision: Brett Saunders For his "Executive Decision" segment, Cramer spoke with Brett Saunders, CEO of Actavis , the biotech company that's up 25% since Cramer last checked in back in November. Saunders put to rest rumors that Actavis is not interested in research and development. He called R&D the lifeblood of the industry and said the company will continue to discover and bring drugs to market in areas where it has competitive advantages. He called Actavis one of the most productive companies when it comes to inventing new drug formulations. When asked about Botox, a drug recently acquired when his company bought Allergan, Saunders noted that Botox is now used more for therapeutic reasons than aesthetic, including for migraines and overactive bladder. Actavis is also in Phase II studies for using Botox to treat depression. Cramer told viewers there is so much more ahead for Actavis, especially after the Allergan acquisition. Must Read: 7 Big Energy Stocks You Should Buy to Get in on Oil's Eventual Rebound Lightning Round In the Lightning Round, Cramer was bullish on First Solar , JPMorgan Chase , Wells Fargo , Acorda Therapeutics and TG Therapeutics . Cramer was bearish on Zagg  , JinkoSolar and Caterpillar . Mad Tweets In the "Mad Tweets" segment, Cramer responded to questions sent via Twitter to @JimCramer. Cramer remains bearish on the battleground that is Herbalife and he wasn't positive on Whiting Petroleum either. Cramer does feel Box  is a good long-term story, and that Citigroup  is among the most attractive banks in a rising-interest-rate environment. Finally, Cramer is not a fan of Yelp after the company posted a quarter that was really not that great. Must Read: Dan Dicker on Why Shale Oil Is a Ponzi Scheme 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.  

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Three ETFs Billionaire Ray Dalio Loves and Why You Should, Too

Wednesday, March 11th, 2015

NEW YORK (TheStreet) -- "To make money in the markets, you have to think independently and be humble," writes Ray Dalio in a recent piece published by Institutional Investor. What he doesn't mention: He's heavily investing in ETFs. Just three ETFs comprise nearly 87% of Dalio's Bridgewater Associates public equity portfolio as of the end of the fourth quarter. In other words, one of the most analytical, mechanical minds in investing -- and the manager of the biggest hedge fund in the world -- is placing nearly all of his eggs in three exchange-traded baskets. Where does Dalio have so many of his chips stacked, and should you consider them, too? Vanguard Emerging Markets ETF The Vanguard Emerging Markets ETF tracks the FTSE Emerging Index. Comprised of upwards of 900 emerging-market stocks, it is an extremely diverse vehicle. And with a 0.15% expense ratio, it is also low-cost. As of January 31, the largest markets the ETF covers are China (24.8%), Taiwan (14.4%), India (12.6%), Brazil (9.8%) and South Africa (9.8%). Its top holdings are Taiwan Semiconductor Manufacturing, Tencent Holdings and China Mobile. One point worth noting with this ETF is the absence of South Korean companies from the mix. VWO divested from its substantial 15% South Korea allocation in 2013 as part of a transition to the FTSE index benchmark (it previously tracked the MCSI Emerging Markets Index). The Vanguard Emerging Markets ETF has been Ray Dalio's top holding since the fourth quarter of 2012 and as of his most recent regulatory disclosure comprises 37% of his public equity fund. Despite an unimpressive performance in recent months -- it's up about 1.5% over the past year -- the billionaire keeps betting on it and in the fourth quarter purchased an additional five million VWO shares. Must Read: 16 Rock-Solid Dividend Stocks With 50 Years of Increasing Dividends and Market-Beating Performance SPDR S&P 500 ETF Tracking U.S. market benchmark the S&P 500, the SPDR S&P 500 ETF is among the largest and most recognized exchange-traded funds in the world. Its components stretch across 25 sectors and are weighted by market capitalization. Its top holdings are Apple , Exxon Mobil , Microsoft , Johnson & Johnson and Berkshire Hathaway . Given the S&P 500's strong run in recent years, it's no surprise SPY has proven a solid bet as well, returning 13.54% in 2014 and 32.15% in 2013. But not every year has been stellar for the ETF, which lost 36.83% in 2008 and climbed just 1.96% in 2011. From its 1993 inception through February 28, the fund returned 9.39% a year. As for Ray Dalio, he's long been a fan of the SPDR S&P 500 ETF. Though he downsized his stake slightly in the fourth quarter, the ETF remains his number two holding, comprising 25% of his fund. Moreover, Dalio isn't the only billionaire with an eye on SPY. 3G Capital, run by Brazilian billionaire Jorge Lemann, holds 800,000 shares of the ETF, rendering it his top holding as of the end of the fourth quarter. It looks like this may be a bit of a hedged bet, however, as Lemann's second largest position is an S&P 500 put option. George Soros made headlines last year when he upped his put holdings in the SPDR S&P 500 ETF as well. He has since downsized that against-the-market bet significantly (his SPY position now comprises about 1.8% of his public equity portfolio, as opposed to more than 12% at the end of the third quarter of 2014). Must Read: 11 Dividend Stocks Buffett, Soros and Other Billionaires Love iShares MSCI Emerging Markets ETF The iShares MSCI Emerging Markets ETF tracks more than 800 large- and mid-cap emerging market stocks and uses as its benchmark the MSCI Emerging Markets Index. As with VWO, Taiwan Semiconductor Manufacturing, Tencent Holdings and China Mobile can be found among its top holdings. Its number one stake, however, is Samsung Electronics -- a South Korean powerhouse kept out of VWO following its 2013 benchmark switch up. In fact, South Korea plays an important part in the performance of the iShares Emerging Markets ETF. As of March 10, it has a 14.97% weight in the fund, coming second only to China, which has a 21.85% weight. EEM has declined about 2% over the past year. Comprising just under a quarter of Bridgewater Associates' public equity portfolio at the end of the fourth quarter, the iShares MSCI Emerging Markets ETF is one Dalio likes as well -- though perhaps not quite as much as the Vanguard fund. He pulled back on EEM slightly at the end of the year, downsizing his position slightly. Must Read: 11 Dividend Stocks Buffett, Soros and Other Billionaires Love

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Jim Cramer’s ‘Mad Money’ Recap: Here’s Next Week’s Game Plan

Saturday, March 7th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- Next week's game plan will be more about listening than trading, Jim Cramer told his Mad Money viewers Friday. Next week will likely be too dangerous to trade on the latest earnings news, Cramer continued, which is why he'll be mostly listening and learning all he can. On Monday, Cramer said investors will be focused on Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said regardless of what new goodies Apple unveils Monday, the stock should just be owned for the long term. Also on Monday, earnings from Urban Outfitters and United Natural Foods . Cramer said he's expecting good earnings from Urban, but still wants to use United Foods for a read on how Hain Celestial and WhiteWave Foods  are likely doing. Next on Tuesday, VeriFone will be reporting, but Cramer said he doesn't expect a blowout. He is expecting good things from Habit Restaurants , which reports after the close. Wednesday brings Shake Shack's earnings. While Cramer is a big fan of the restaurant and its founder, Danny Meyer, he said the stock is simply too expensive to own at current levels. Then, on Thursday, it's El Pollo Loco reporting. Cramer said he prefers Fiesta Restaurant Group over Pollo Loco, along with Chipotle Mexican Grill and Jack In The Box . Also on Thursday, Dollar General and Ulta Salon . Cramer said he's been selling some Dollar General for Action Alerts PLUS, but the stock can still head higher. He is also bullish on Ulta, saying this stock can be bought ahead of its earnings. Finally, on Friday, Cramer will be listening to Ann for a read on women's apparel, and Hibbett Sports to see how Nike and Under Armour are faring. What Makes Winners What makes for a winning stock? When should investors say, "Whoops, I missed the move?" These are both important questions, Cramer told viewers, especially after the market has had such a stellar big higher.Cramer said that if a company's product cycle has run out, or a competitor has built a better mousetrap, then obviously it's time to move on. But if the company continues to innovate and outpace the competition, maybe the stock's big move is just the beginning. Must Read: Credit Suisse: 7 Best Industrials Stocks for Your Portfolio That's certainly the case with Honeywell , Cramer continued. He said after interviewing Honeywell's CEO, Dave Cote on Wednesday, it's clear that this is one company that's not standing still. Honeywell has tons of divisions, from aerospace to climate control, health and safety to turbochargers, but unlike many conglomerates that are better off splitting up into pieces, Honeywell is a diversified industrial that works, as every division borrows technology from the others and is better off for it. Innovation is so strong at Honeywell that most of the products the company introduces weren't even invented just a few years ago. That's why Cramer said Cote, who also happens to be Cramer's next door neighbor, remains a winner in his book. Protect Yourself Nobody likes to play by the rules, but with investing rules can protect you from your own bad judgment. Cramer said people are always asking him whether he worries about the stocks he owns. The answer is, of course, absolutely. He said that everyone worries about their investments, especially when your investments are heading lower in an up market. But that's why Cramer said he believes in active money management, saying nimble and flexible to always keep your money working for you and not against you. The first step in that process is finding out why your stocks aren't performing as you expected. Cramer said you need to do your homework because you can't be informed if you don't inform yourself. Once you know what's gone awry with your favorite stock, what do you do next? Cramer said investors typically make two mistakes at this point. First, they end up owning too much stock so they don't have any cash left to buy into the decline. Or they like all of their stocks equally so have no inclination to sell. Cramer said investors should always have cash on hand to buy more if that's what they deem necessary and they should always rank their stocks from best to worst. That way if your best stock is going down you automatically know to buy more, but if the worst one is dropping you can cut your losses early. Discipline trumps conviction, Cramer concluded. This is the manta all investors should follow. Accept the fact that something may happen that you didn't foresee and have a plan to deal with it when it does. Must Read: Warren Buffett Just Bought 5% of This Farm Equipment Company -- Should You Buy in, too? Trades vs. Investments Never turn a trade into an investment. That was Cramer's next rule for investors. What does it mean? Cramer explained. Cramer said when you invest for a trade, you're expecting an event, a catalyst, to take that stock higher over the short term. An investment, on the other hand, is not news driven, it's something you want to own over the long haul. How are these two different? Cramer said with a trade he wants to buy all up front, taking maximum advantage of the event when it occurs, so he can then take his winnings and run. Investors, however, are different. With an investment, Cramer said he buys only a portion up front, buying more on weakness and market pullbacks. Why? Because the ultimate goal is to build a position at the best possible price, and unlike a trade, there's no hurry. Cramer said investors should never turn a trade into an investment because if the catalyst they were waiting for doesn't happen, there's a good chance that stock is heading lower. The reason is simple: You're probably not the only one who is waiting on the catalyst. Too often investors make the mistake of doubling down at this point, but Cramer said the odds are against you. Market Corrections Cramer's last lessons for investors dealt with market corrections. He said that all too often investors are lulled into the markets during the good times and then panic during the bad times. Corrections are to be expected and are a normal part of a healthy market. Corrections are actually great opportunities, but only if investors are prepared. Investors that are always fully invested, that is, they don't have any cash on hand, will never be able to buy more of their winners when the markets put them on sale. Cramer said that cash is the most under-rated of investments, but when the market is tanking there's nothing better. That's why he invests by "trading around a position," that is, selling a percentage into strength only to buy it back into weakness. By selling into strength, Cramer said investors will always have cash on hand to take advantage of the corrections. Trading around a position does come with one caveat, however: Don't subsidize your losers with the gains from your winners. Cramer said all too often investors will take gains from their winners to shore up their positions in their losing stocks. But that's a bad idea, he said. The losers are likely falling for a reason while your winners were likely gaining for a reason. Better to stick with the winners. Must Read: 3 Hot Restaurant Stocks You Should Consider Buying Now 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.  

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Apple, Amazon, Netflix, Costco, Starbucks Will Help Nasdaq Top 5000

Tuesday, February 24th, 2015

NEW YORK (TheStreet) - The Nasdaq Composite is about 40 points shy of the 5000 milestone and a rally of just 3.5% will result in a test of the 5132 all-time high set in March 2000. While the Nasdaq Composite is in the headlines, beware that the Nasdaq 100 has to gain 8.2% to reach its March 2000 high of 4816, and that the PowerShares QQQ Trust ETF is up 5.1% year to date and has 10% to go to reach its March 2000 high at $120.00. Investors shouldn't consider a new high for the Nasdaq as a technical breakout until the Nasdaq 100 and QQQ also set new highs. Here are five of the companies leading the Nasdaq to new highs. Apple Inc ($133.00) is up 21% year-to-date and is the key stock to drive the QQQ Trust ETF to new highs, as the stock's weighting in the ETF is 15%. Apple's market cap rounds up to an all-time record high for any publicly-traded company at $775 billion and its 12-month forward price-to-earnings ratio is a reasonable 14.5. Amazon.com ($380.14) is outperforming Apple with a year-to-date gain of 23%, but its weighting in the QQQ Trust ETF is 3.5%. Amazon has a market cap of $177 billion and its 12-month forward P/E is extremely elevated at 171.2. Netflix Inc ($471.84) is also outperforming Apple with a year-to-date gain of 38%, but its weighting in the QQQ Trust ETF is just 0.6%. Netflix has a market cap of $29 billion and its 12-month forward P/E is elevated at 84.6. It's more than tech stocks that are driving the Nasdaq and Nasdaq 100 to new highs. Costco ($148.39) is outperforming the Nasdaq 100 with a year-to-date gain of 8.2%. Costco has a weighting of 1.3% in the ETF with a market cap of $65 billion and a 12-month forward P/E of 26.1. Starbucks ($93.58) is outperforming the Nasdaq 100 with a year-to-date gain of 14%. The stock has a weighting of 1.4% in the ETF, has a market cap of $70 billion and a 12-month forward P/E of 25.4. Let's look at the daily chart for the QQQ Trust ETF then outline trading guidelines for the five Nasdaq stocks Courtesy of MetaStock Xenith The daily chart for the QQQ Trust ETF ($108.52) shows the ETF's performance since the end of 2012. The ETF began 2013 with a price gap above its 200-day simple moving average (green line), then at $65.34. Note that the up trend was interrupted by consolidations between May 22, 2013 and June 24, 2013 then between March 7, 2014 and April 14, 2014. The only correction came between Sept.19, 2014 and Oct.15, 2014 when the ETF traded below its 200-day SMA then at $91.89. The ETF set a multi-year intraday high of $108.55 on Monday well above its 50-day (blue line) and 200-day simple moving averages at $103.37 and $98.45, respectively. Must Read: 5 Stocks Warren Buffett Is Selling Apple ($133.00) is up 21% year to date and is 27% above its Jan. 6 low of $104.63. Apple set an all-time intraday high of $133.00 on Monday, well above its 50-day and 200-day simple moving averages at $114.93 and $103.19, respectively. Investors looking to buy Apple should enter a "good 'til canceled" limit order to buy weakness to semiannual and annual technical levels at $112.97 and $110.43, respectively. Investors looking to book profits should consider a sell stop given a weekly close below its key weekly moving average at $121.66, which will be rising each week. Amazon.com ($380.14) is up 23% year to date and is 35% above its Jan. 20 low of $285.25. The stock gapped above its 50-day and 200-day simple moving averages on Feb. 2 and traded to a multiyear intraday high at $384.54 on Monday. The 50-day and 200-day SMAs are now at $324.82 and $322.79, respectively. Investors looking to buy Amazon should enter a "good 'til canceled" limit order to buy weakness to semiannual technical level at $370.84. Investors following my Feb. 11 post booked profits at an annual technical level at $383.18. Investors looking to sell additional shares should enter a "good 'til canceled" limit order to sell strength to a quarterly technical level at $384.84. Investors should also consider using a sell stop given a weekly close below its key weekly moving average at $354.18, as the weekly chart is positive but overbought. Netflix ($471.84) is up 38% year to date and is 52% above its Jan.12 low of $316.83. The stock gapped above its 50-day and 200-day simple moving averages on Jan. 21 traded to a multiyear intraday high at $481.00 on Feb. 19. The 50-day and 200-day SMAs are now at $387.98 and $412.56, respectively. Investors looking to buy Netflix enter a "good 'til canceled" limit order to buy weakness to its 200-day simple moving average rising from $412.56. Investors should also consider using a sell stop given a weekly close below its key weekly moving average at $432.42, as the weekly chart is positive but overbought. Costco ($148.39) is up 8.2% year to date and is 14% above its Jan.16 low of $133.79. The stock set an all-time intraday high of $151.82 on Feb. 4 well above its 50-day and 200-day simple moving averages at $140.08 and $125.00, respectively. Investors looking to buy Costco should enter a "good 'til canceled" limit order to buy weakness to semiannual technical level at $142.31. Investors should consider using a sell stop given a weekly close below its key weekly moving average at $143.24, as the weekly chart is positive and nearly overbought. Starbucks ($93.58) is up 14% year to date and is 20% above its Jan. 6 low of $78.45. The stock set an all-time intraday high of $93.93 on Monday, well above its 50-day and 200-day simple moving averages at $84.87 and $78.53, respectively. Investors looking to buy Starbucks should enter a "good 'til canceled" limit order to buy weakness to its 50-day SMA at $84.87, and rising each day. Investors looking to sell additional shares should enter a "good 'til canceled" limit order to sell strength to quarterly and semiannual technical levels at $94.85 and $96.28, respectively. Investors should also consider using a sell stop given a weekly close below its key weekly moving average at $88.54, as the weekly chart is positive but overbought. Follow @Suttmeier Must Read: 10 Stocks Carl Icahn Loves for 2015: Apple, eBay, Hertz and More

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Jim Cramer’s ‘Mad Money’ Recap: Calm Down, There’s No Nasdaq Bubble

Tuesday, February 24th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- It has taken 15 long, hard years for the Nasdaq to get back to its all-time highs set in 2000, Jim Cramer told his Mad Money viewers Monday. But despite the many strides the market has made since then, critics are once again calling the Nasdaq overvalued and in "bubble" territory. Cramer said it's easy for these pundits to be negative. No one ever got criticized for being too cautious. But while there are always pockets of overvaluation in every market, Cramer said today's markets are nothing like those in 2000. Back in 2000, Cisco Systems , a stock Cramer owns for his charitable trust, Action Alerts PLUS, led the Nasdaq with a valuation of 80 times its earnings. Today, Apple , another Action Alerts PLUS holding, leads the markets with a valuation of just 15 times earnings. In 2000, Cisco's customers were evaporating; Apple's are clamoring for the next big thing. The next largest stock in the Nasdaq is Google , another Action Alerts PLUS name. Google trades at just 19 times earnings. No bubble there either, Cramer said. In fact, as you continue down the list to Microsoft , Intel and Oracle , none of these stocks are overvalued; in fact, they're undervalued. Even in biotech, Gilead Sciences trades at just 10 times earnings, Amgen 16 times. Yes, Celgene trades at 24 times earnings, Cramer said, but in the "out" years -- 2016 and beyond -- that's still pretty cheap given the company's pipeline. Cramer said some sectors, like cyber security, have indeed gotten ahead of themselves, as CyberArk Software proved today -- down 16% on an analyst downgrade. Tesla Motors remains overvalued, he said, given the dismal quarter it just posted. But other than those outliers, Cramer said he's surprised the markets aren't trading even higher. Executive Decision: Andrew Liveris For his "Executive Decision" segment, Cramer sat down with Andrew Liveris, chairman, president and CEO of Dow Chemical , the Action Alerts PLUS holding that last posted a strong 16-cents-a-share earnings beat on steady volume growth that has shares just of their 52-week highs. Liveris outlined the transformation Dow Chemical has undergone over the past decade. He said 10 years ago, Dow was a one-product petrochemical company. Today Dow is a technology company, with over two-thirds of its products based on proprietary technology. The Dow of today is a consistent earner. Liveris was very bullish on Dow's partnerships in Saudi Arabia, saying the investments will help boost market share in China, India, Africa and throughout the Middle East. Turning to the U.S. economy, Liveris supports a balanced approach to exports of oil and gas, as America has the possibility to not only be energy independent but also to have oil and gas prices lower than the world price. This is a situation that could have incredible advantages. Cramer said Dow has reinvented itself into a cash machine and there's only more to come. Must Read: 15 Biggest Buys Buffett, Icahn and Other Big Investors Made Last Quarter Valeant Is Hot Cramer never recommends a stock after it pops 15% in a single day. But for Valeant Pharmaceuticals  he's making an exception because this company is now the hottest stock in the drug business. Valeant shot higher after the news it is acquiring Salix Pharmaceuticals for $10 billion. This means Valiant could earn $12 a share in 2015 as opposed to the $10 a share everyone thought the company could earn yesterday. But even without Salix, Cramer said, Valeant's growth is mesmerizing, having delivered 16% growth instead of the 12% analysts were expecting, and $2.3 billion in sales compared to the estimates of just $2.2 billion. Valeant's growth is strong both here in the U.S. and abroad, he noted. How high could Valeant's shares go? Cramer said having just crossed $200 today, he thinks shares are ultimately worth $240. Executive Decision: Tom Jorden  In his second "Executive Decision" segment, Cramer sat down with Tom Jorden, chairman, president and CEO of Cimarex Energy , the oil driller that's run $23 a share since oil prices bottomed in mid-January. Jorden said these are "tough times" for America's oil industry and Cimarex is fortunate to have great assets, a strong balance sheet and an organization that can weather any storm. He said Cimarex has already scaled back operations from 22 to 16 rigs, but the backlog remains strong and he expects production growth for 2015. When asked about oil prices, Jorden said he doesn't know where oil ultimately settles out, but it's clear that $90 a barrel for oil was too high and $50 a barrel is too low. Somewhere in the middle is where prudent companies with low development costs will be able to flourish. Cramer said some oil drillers have a solid plan and cash in the bank, and Cimarex is one of those drillers. Must Read: How U.S. Corporations Use Overseas Cash in U.S. Without Paying Taxes Lightning Round In the Lightning Round, Cramer was bullish on Blackstone Group , Regeneron Pharmaceuticals , Isis Pharmaceuticals , Enbridge Energy Partners , Xcel Energy , Wells Fargo and Yahoo! . Cramer was bearish on Apollo Global Management , BioCryst Pharmaceuticals , Kate Spade , Arris Group and JPMorgan Chase . Executive Decision: John Chisholm In a third "Executive Decision" segment, Cramer sat down with John Chisholm, chairman, president and CEO of Flotek Industries , a technology company in the oil business that helps drillers get the most out of their wells. Chisholm explained that Flotek's "nano fluids" use citrus from orange peels to create fracking fluids that penetrate the pores of hard rocks and help more oil escape. He said with data from over 80,000 wells, it has been proven that a lot of oil will be left in the ground if you don't use nano fluids from Flotek. So how is Flotek's business affected by the plummeting price of oil? Chisholm said that while lower prices does mean less drilling, Flotek currently only has 10% penetration in the market, so even with less activity there is plenty of opportunity to grow. Finally, when asked his opinion on oil prices, Chisholm said that he, and others in the industry, believe it will take until the end of summer before oil prices finally find their footing. Cramer said Flotek is not an oil company, it's a technology company and should be priced as one. Must Read: 4 Stocks on Traders' Radars: Salix Pharma, Ocwen and More 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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How U.S. Corporations Use Overseas Cash in U.S. Without Paying Taxes

Monday, February 23rd, 2015

NEW YORK (TheStreet) -- U.S. multinationals like Apple , Cisco , Microsoft and Oracle  have found a unique way to use some of the estimated $2 trillion in cash that is "trapped" overseas because of U.S. tax laws. Instead of bringing that money back to the U.S., which would make it subject to tax, companies are issuing debt to get the funds they need. "It's an overstatement to say that it's trapped," said Edward Kleinbard, a law professor at USC. Here's how it works: Apple has $124 billion in overseas cash, according to a Citigroup report last month. While it can leave the money overseas tax free, it is required to pay taxes on whatever interest it earns on that $124 billion The IRS refers to this money as "passive income." Because it is paying taxes on the interest income, Apple is allowed to bring it back to the U.S. Except that it doesn't pay taxes on that interest income either. Instead, it issues bonds in the U.S. As part of one offering last year, it paid an interest rate of 3.45% to borrow $2.5 billion over 10 years. Those 3.45% payments are tax deductible, so if Apple can earn an equivalent 3.45% on $2.5 billion of that overseas cash it can repatriate it tax-free. In other words, Apple has the same $2.5 billion it could have withdrawn from an overseas account, except it issued bonds to get it. But the bond issue was essentially free, because the 3.45% it pays is offset with 3.45% coming in tax-free from $2.5 billion invested overseas. It isn't just Apple. Microsoft, which has $76 billion in cash overseas, just sold $10.75 billion in bonds this month in the U.S. Oracle, with $31 billion in cash, raised $10 billion in bonds last year. Cisco, with $44 billion stashed abroad, sold $8 billion in bonds last year. "Firms have lots of liquidity in the United States. The credit markets are wide open. Interest rates are very low and firms in fact borrow like drunken sailors in the United States," Kleinbard says. While companies are unlikely to admit that they take advantage of tax rules in this way, Robert Willens, a longtime Lehman Brothers executive who president of his own tax and accounting service, says it is a virtual certainty. "It's inconceivable to me that this is not what they're doing," Willens said. Kleinbard is still a big proponent of corporate tax reform, and he argues in a paper this month it is more feasible politically than many believe. Still, those who expect repatriation of foreign cash (should that reform ever occur) to kick off a wave of corporate spending will likely be disappointed. That is a big reason why companies didn't increase spending when the U.S. had a repatriation "holiday" in 2004, according to Willens. "I don't believe there was any boost to the economy because the funds were not invested in the manner that Congress wanted them invested," Willens said. Congress intended for the funds to be spent on items such as hiring, advertising, R&D and new plants and equipment. "They forgot to take account of the fact that money is fungible so that the funds that were repatriated were simply replacing other funds that were going to be spent on the approved items." Email messages to spokespeople for Apple and Oracle weren't returned. A Microsoft spokesman declined comment. A Cisco spokeswoman was unable to provide a response in time for publication of this article. Read more: More Activists Are Fine With Management; They Just Want the Cash Follow @dan_freed

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Jim Cramer’s ‘Mad Money’ Recap: Get Ready to Profit on Europe-Induced Weakness

Thursday, February 12th, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- Lots of investors are worried about Europe, Jim Cramer told his Mad Money viewers Wednesday. But that's a good thing -- if they're worried, you don't have to be. There are only two outcomes in the standoff between Greece and Germany, Cramer explained. Either the two nations work out their differences or they don't. If they do, stocks will rally. If they don't, the worst-case scenario would be a quick 3% to 5% pullback in the markets, followed by a gigantic relief rally. Why isn't Cramer worried about this so-called "disaster scenario?" He said it's because Greece is a "known event," something that's already largely priced into the markets. When it gets resolved, good or bad, a relief rally will almost certainly follow. When that occurs, Cramer said investors will be clamoring for the stocks of well-run companies including Pepsico , which rallied over 2.4% today on strong sales. They'll also look towards Zoetis , up 4.2% today, because people care for their animals no matter what happens in Greece. Things will continue to look bright for Charles River Labs and Rite Aid , two more names that closed higher. Cramer said it's no accident that Apple , a stock he owns for his charitable trust, Action Alerts PLUS, crossed above a $700 billion market cap, or that Chipotle Mexican Grill is coming back to life. There are plenty of opportunities out there, Cramer concluded. Investors just need to be ready to snap them up on any European-induced weakness. Executive Decision: John Chambers For his "Executive Decision" segment, Cramer spoke with John Chambers, chairman and CEO of Action Alerts PLUS holding Cisco Systems , the networking equipment maker that today posted a 2-cents-a-share earnings beat on a 7% rise in revenue and a dividend boost, all news that sent shares higher by 5%. Chambers said that Cisco is no longer in the business of just selling routers and switches -- it sells "business outcomes" that companies are embracing around the globe. He said sales in Europe are rebounding as countries there are moving faster than the U.S. to embrace new technologies. Chambers said Europe, China and India all "get it" and understand that digitizing their world creates jobs, growth and opportunities. Meanwhile, the U.S. has fallen behind and is now lagging the rest of the world. In nearly every segment Cisco is seeing gains, from routing and switching to data centers, wireless and collaboration, Chambers continued. Companies today want mobility, video and cloud, and Cisco offers solutions for all three. Cramer said Cisco is a stock that's clearly heading higher. Must Read: Dicker and Cramer: Which Analyst's Wild Oil Price Prediction Is Right? What the CEO Knows "Sometimes, a stock is worth a lot more than you think," Cramer told viewers. Sometimes a company's CEO knows it but other times they don't. In the case of Apple, Cramer said CEO Tim Cook clearly know it because Apple is borrowing huge sums of money to buy back a ton of their own shares. Skeptics argue that Apple's market cap, which now bigger than Google and Microsoft , two more Action Alerts PLUS names, combined is simply too high. But Cramer argued Apple is clearly doing better than Google and Microsoft combined. But then there's a company like General Motors , also in the Action Alerts PLUS portfolio. Cramer said that CEO Mary Barra isn't being aggressive enough with GM's capital and should be following Apple's lead and buying back shares as fast as she can. GM has a lot of positives going for it, Cramer concluded, and GM shares are clearly worth a lot more than they trade for today. Executive Decision: Stanley Bergman In his second "Executive Decision" segment, Cramer sat down with Stanley Bergman, chairman and CEO of Henry Schein , which today posted a 6-cents-a-share earnings beat while reaffirming its full-year guidance. Shares of Henry Schein are up 9.5% since Cramer last checked in just three months ago. Bergman called the initial dip in his company's shares after the company reported an overreaction to just one part of the dental supply business. He reiterated that every segment of his company is growing better than expected. Bergman noted that Schein's animal health business continues to be driven by the growing middle class around the globe having more pets, while vaccines continue to be extremely important in keeping people safe against diseases like polio, measles and the flu. When asked about the importance of protection against diseases, Bergman said the U.S. is not ready for a true pandemic and got lucky when it came to Ebola and SARS. He said our country needs a better plan, with government and the private sector working together to stop such outbreaks at the border. Cramer called Henry Schein a "must own" stock for every portfolio. Must Read: These 5 Hated Stocks Could Pop in February: AT&T, Quest Diagnostics and More Lightning Round In the Lightning Round, Cramer was bullish on HomeAway , BB&T Bank , KeyCorp , SunTrust Banks , Acadia Healthcare , Time Warner , Boeing , Energy Transfer Partners , Kinder Morgan , Skyworks Solutions , Cypress Semiconductor , Amgen , Celgene , Regeneron Pharmaceuticals and Affymetrix . Cramer was bearish on Quanta Services , Viacom and Freescale Semiconductor . 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 Bank of America , Under Armour , Halliburton , Gilead Sciences and Facebook . Cramer called this portfolio "perfection." The second portfolio's top holdings included Alcoa , General Electric , Flextronics , Agios Pharmaceuticals and Xilinx . Cramer said this portfolio can't have two semiconductors and advised selling Xilinx and adding American Electric Power to get some yield. The third portfolio had General Electric, Amgen , Hewlett-Packard , Pfizer and Qualys as its top five stocks. Cramer advised selling Qualys and once again adding American Electric for some yield. The fourth portfolio's top stocks were Pepsico, Colgate-Palmolive , Intel , Apple and Exxon Mobil . Cramer said this portfolio can't have both Apple and Intel. He suggested selling Intel in favor of Bristol-Myers Squibb . Must Read: January Effect: What the Market's Wild Month Means for Rest of 2015 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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Why TrimTabs Float Shrink ETF Keeps Beating the S&P

Tuesday, February 10th, 2015
Increased corporate buybacks in recent months along with a low exposure to energy companies has enabled the TrimTabs Float Shrink ETF (TTFS) to outperform the S&P 500.








Jim Cramer’s ‘Mad Money’ Recap: New Month, New Rally in the Making?

Tuesday, February 3rd, 2015

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK ( TheStreet) -- The markets were broken in January, but the tone on Wall Street seems to have changed, Jim Cramer said on  Mad Money Monday. One day does not make a rally but things seem to have shifted in favor of the bulls. Cramer said the markets were able to do something remarkable today -- break the cycle of pain and end the day higher after a weak open. The asymmetrical selling seems to have abated, he added, which was welcome news for a host of sectors. Must Read: Warren Buffetts’ Top 10 Dividend Stocks in 2015 After getting slammed last month on stabilizing oil prices, Cramer said the airlines were one group that was able to rebound today. There were also stocks such as Microsoft , a stock Cramer owns for his charitable trust, Action Alerts PLUS, and American Express , which fell on earnings that weren't all that bad, but were able to eek out gains on the day. Cramer's on record as loving the quarters from Facebook and Apple , two more Action Alerts PLUS stocks, and both of those stocks also saw relief rallies today. Even stocks that truly missed the quarter, such as Qualcomm , saw strength, as did Costco , which announced a special dividend last week that no one noticed, and Amazon.com , which also gave investors positive news. For all of these names, February began as the exact opposite of January, Cramer concluded. Now we just need to see if this new outlook holds true again tomorrow. How Will Oil Recover? After a decisive two-day rally in oil prices, are the proponents of a snap back V-shaped rally right? Not so fast, Cramer said. A slower U-shaped recovery in oil prices is probably more likely. While it's true that several oil companies have announced cutbacks in drilling for 2015, Cramer said investors need to read the fine print because no company has forecast a cut in production for 2015. Once a well is drilled it's more costly to shut it down than it is to keep on pumping, Cramer said. That means there will likely be plenty of oil for the remainder of this year. Cramer also said the oil markets won't likely see any help from overseas markets, which will also drag on oil prices for the foreseeable future. So while reports indicate gas usage here in the U.S. is on the rise, Cramer said he's expecting $80 oil a year from now and not six months from now. Make no mistake, oil prices will be going back up, Cramer concluded -- just not as fast as some proponents claim. Must Read: Apple Becomes Top Luxury Brand Among China's Millionaires Tune Into Harman What can investors learn from some of last night's Super Bowl ads? Cramer said one takeaway is 2015 will be the year of the connected car, a trend that explains the huge rally in Harman International . Cramer spoke with Harman's CEO just a week and a half ago, but since then the company delivered a 51-cents-a-share earnings beat on a 19% rise in revenue. No whining about currency pressures on this conference call, only winning, Cramer quipped. Cramer reiterated that the connected car trend matters and Harman's connectivity, safety, entertainment and navigation technology is exactly what the trend is all about. Moreover, Harman derives 70% of its revenue from software, which is only solidifying its position as the market leader with differentiated technology. It's no wonder shares of Harman jumped from $101 to $125 in a single day and have just kept rising to $131 since reporting its earnings. Cramer said Harman is still inexpensive, trading at just 18.5 times earnings despite its 18.6% long-term growth rate. That makes Harman still worth buying. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of direction of the overall markets and of one stock in particular, United Rentals . According to Fitzpatrick, the daily chart of the S&P 500 is an ugly one, displaying a rare but deadly diamond pattern, one made by increasing volatility -- with higher highs and lower lows, followed by a decrease in volatility where the highs become an impenetrable ceiling. Fitzpatrick was also bearish on United Rentals, a longtime Cramer fave. He noted that after an 800% rally since 2011, the stock is now breaking down, falling below its 20-day moving average, which went from being a floor of support to a ceiling of resistance. It has now fallen below its 200-day moving average. Cramer disgreed with Fitzpatrick's doom and gloom, saying that United Rentals is a very well run company that's not as levered to the oil industry as many believe. He felt he stock was too cheap and is a strong buy on any weakness. As for the overall markets, Cramer said there, too, we may see some consolidation before resuming higher. Must Read: 5 Rocket Stocks to Buy for February Gains: Apple, Mallinckrodt and More Lightning Round In the Lightning Round, Cramer was bullish on Packaging Corp of America , International Paper , Illumina and Whirlpool . Cramer was bearish on Atlas Energy and Southern Copper . Executive Decision: Terry Gregg For his "Executive Decision" segment, Cramer sat down with Terry Gregg, executive chairman of DexCom , the glucose monitoring company whose shares have risen 40% since Cramer last checked in back in August. Gregg showed off some of DexCom's latest innovations including the latest wearable glucose monitoring patches that connect via Bluetooth to a smartphone for real-time monitoring. However, even more exciting is the company's new companion app that allows parents, loved ones and health care professionals to remotely monitor a patient's glucose levels, also in real time, sending alerts to any potential dangerous conditions. Gregg explained that the FDA approved this new technology in just 122 days, recognizing its groundbreaking nature. Gregg also touted DexCom's new deployment system, currently pending approval, which will deploy a monitoring patch in just four steps, down from the current 11 steps. While the company awaits approval for this fourth-generation system, it plans to submit its fifth-generation technology this quarter. Cramer told viewers this is what true innovation looks like. Must Read: Obama’s Proposed Tax on Foreign Earnings Would Hurt Retired Americans 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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