Archive for the ‘AAPL’ Category
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — Yes, there’s more pain ahead, Jim Cramer admitted to his Mad Money viewers Tuesday, but there is a silver lining. Stocks get cheaper as they head lower and every day we’re inching closer to a bottom. Cramer said there are still a lot of things not to like about our current stock market, none of which seem to be getting better any time soon. First, there’s the Federal Reserve and its camera-loving governors, who create more uncertainty by the day as they opine on when interest rates will be rising. Then there’s the political uncertainty created by our election cycle. Couple that uncertainty with the falling Chinese economy and the host of good news from Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS, Nike , Alcoa and the home builders don’t seem to matter. It’s easy to see when 117 of the 1,500 stocks that make up the various S&P baskets are down over 50% and why 600 of them have fallen over 20%. It doesn’t matter if you’re a red-hot natural and organic food stock, or a tech company or one of the many high-growth rollup names, your stock is likely worth a lot less than it was. But there’s hope – Eli Lilly , General Mills , Con Agra and McDonald’s , all of which have so many positive things going for them the markets are having trouble tamping these stocks down. Must Read: 5 Overvalued Health Care Stocks to Sell Now Executive Decision: Stanley Erck For his "Executive Decision" segment, Cramer spoke with Stanley Erck, president and CEO of vaccine maker Novavax , a stock that was trading at $13.65 a share when Cramer last sat down with Erck on Aug. 12, but has since fallen a stunning 53%. Erck said his team was not focused on the stock price but executing the five clinical trials to be completed by the third quarter of this year. He said those trials include vaccines for Ebola, flu and RSV, a far-too-common respiratory virus. Erck was happy to report positive results from the RSV trial for the elderly, which contract the disease some 2.4 million times a year, and also for new mothers and their newborns. Some 60% of all infections during a newborn’s first year stem from RSV, Erck noted, making it a serious issue worldwide. The RSV results were so positive that Novavax just received an $89 million grant from the Bill and Melinda Gates Foundation to continue development of the vaccine and help make it available globally. Cramer said it’s clear the decline in Novavax stock has nothing to do with the company and its remarkable progress. Hedge Funds Gone Wild There’s a battle brewing with some stocks, Cramer told viewers, but it doesn’t have anything to do with the companies themselves, but rather with hedge funds gone wild. It’s a typical predator versus prey situation, Cramer explained. Flailing hedge funds facing redemptions are forcing share prices lower, and the companies themselves are defenseless from stopping it. That was the case at Cramer’s own hedge fund in 1998, he said, and it’s the case now with the once-hot stocks of Valeant Pharmaceuticals , Energy Transfer Partners , Horizon Pharmaceuticals , Allergan , XPO Logistics and countless others. The only good news, Cramer noted, is that if you liked these stocks at higher prices, you should be loving them at these lower prices. With the quarter drawing to a close, the selling pressure may soon subside, allowing the rest of us to once again start buying. Must Read: Icahn Warns Americans Will ‘Get Screwed Again’ in Midnight Movie Off the Charts In the "Off the Charts" segment, Cramer went head to head with colleague Robert Moreno over the chart of Exxon Mobil to see if the oil patch may finally be forming a much-needed bottom. Looking at a daily chart of Exxon versus the S&P 500, Moreno noted the oil giant was leading the averages lower until about a month ago, when it began consolidating and trading sideways. He saw support building at the $71.75 level, which Cramer noted is about where the stock yields 4%. This bottoming pattern was bolstered by both the MACD momentum indicator, which has been trending higher, and the AROON indicator, which is a measure of changes in trend. The AROON correctly predicted the bullish move in Exxon this spring, as well as the bearish move in May, and just last week signaled another uptrend. Moreno also noted the Chaikin Money Flow, or CMF, has also been trending higher for the past month. Lightning Round In the Lightning Round, Cramer was bullish on Nucor , Hewlett-Packard , Icahn Enterprises and Rite Aid . Cramer was bearish on Enbridge , United States Steel , TrueBlue and Avon Products . Must Read: 5 Hated Stocks You Should Love Doctor in the House In a special interview, Cramer sat down with Dr. Eric Topol, head of the Scripps Translational Science Institute and author of the new book, The Patient Will See You Now, which chronicles the technological revolution in health care. Topol said the future of medicine will be patient-generated data. Things like the real-time streaming of blood heart rate, blood pressure and glucose are now possible with smaller, less expensive devices that connect to your smart phone. Topol showed off a small ring that monitors your sleep patterns and will one day replace a $4,000 overnight sleep study at a clinic. He also demonstrated a portable ultrasound device that also connects to a smart phone, and replaces a $350,000 machine at your doctor’s office. Tool also noted that companies like the privately held Theranos is revolutionizing lab tests, while Teladoc is transforming office visits. 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.Click to view a price quote on NVAX. Click to research the Drugs industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. Portions of this program were broadcast on April 27, April 29 and April 30, 2015. NEW YORK (TheStreet) — Smart investors can see the future before it happens, Jim Cramer told his Mad Money viewers Wednesday. How is that possible? By taking the time to learn about up-and-coming private companies, those "disruptors" that can take on their publicly traded peers like an oncoming train. Evaluating private companies is not always easy, Cramer said. Investors are never sure if, or when, they may come public, or the specifics about their financials. Must Read: 7 Stocks Warren Buffett Is Buying in 2015 But make no mistake, some of the hottest innovations are coming from smaller, private companies, he said, which is why investors need to not only know about them, but try out their products and services to see what may be the next big thing. TaskRabbit and Slack In his first interview, Cramer sat down with Leah Busque, founder and CEO of TaskRabbit, the mobile marketplace for services from handymen to moving help. Busque said TaskRabbit is redefining the nine-to-five job, offering their "taskers" the flexibility to set their own schedules and rates for their services. Taskers can also accept work on the fly, when it’s convenient for them. The freelance economy is growing, Busque continued, and TaskRabbit is helping college students, stay-at-home moms and even retirees meet their financial goals. TaskRabbit also supports its taskers by offering discounts of everything they need, from phone services to health care. In a separate interview Cramer sat down Stewart Butterfield, founder and CEO of Slack, the company redefining internal corporate communications. Butterfield explained that with Slack, all of your communications come in via one stream and users don’t have to waste energy filing or processing messages, as everything is instantly searchable. When asked about his company’s growth, Butterfield said he’s living the entrepreneurial dream, as users love their service and growth comes via word of mouth. That has led to almost viral growth for a service that now has 1.25 million active users. Must Read: 5 Dividend Stocks That Want to Pay You More in 2015 Theranos In his next interview Cramer sat down with Elizabeth Holmes, founder and CEO of the privately held diagnostics firm Theranos as well as the youngest self-made female billionaire in the U.S. Holmes explained that Theranos’ technology allows patients to receive medical tests with just a few drops of blood from a finger prick rather than from drawing multiple vials of blood as is done today. The system, now in a trial program at 40 Walgreens Boots locations, makes it far more affordable and convenient for patients to get the tests they need, thereby empowering them with the clinical information that drives nearly 80% of medical decisions. While the entrenched laboratory testing industry is less than enthused by the simpler and far less intrusive technology, Cramer said he’s betting patients around the world would embrace it with open arms. Instacart Cramer also sat down with Apoorva Mehta, founder and CEO of the privately held Instacart, the online grocery delivery provider that’s now operating in 15 markets around the country. Mehta explained that there’s a segment of the population willing to pay for grocery deliveries and Instacart caters to that segment. He said that with the proliferation of smartphones, services like Instacart can finally tap into the huge pool of crowd-sourced labor and have personal shoppers at the ready when you need them. Mehta said Instacart also sweats all of the intricate details, training shoppers on picking the right produce, packing items properly so your bread don’t get crushed and making sure everything arrives just as you expect. Cramer said Instacart is just another example of American innovation. Must Read: This Is Warren Buffett’s Favorite Beverage Company Postmates In his next interview Cramer spoke with Bastian Lehmann, co-founder and CEO of the privately held Postmates, the delivery service that is signing up big name partners including Starbucks and, most recently, Chipotle Mexican Grill in select markets. Lehmann explained that his company operates the largest on-demand delivery fleet in the country and gives restaurants a way to provide better service and retailers a way to fight back against online shopping. Why would you ship an item from a warehouse in another state when you can use your city as your warehouse and have the item sourced locally and delivered in less than an hour? Lehmann asked. When asked how a startup was able to win such big clients like Chipotle, Lehmann said Postmates is a people company and is creating America’s best part-time jobs for its drivers and messengers. Postmates even offers insurance for its people, even if they are only trying out the job for a short time. Cramer once again commended Lehmann for a job well done and some big wins with both Starbucks and Chipotle. HotelTonight In addition, Cramer spoke with Sam Shank, co-founder and CEO of the privately held HotelTonight, the mobile app that plays matchmaker for consumers looking to book a last-minute hotel room. Shank explained that HotelTonight allows its customers to book a room up to seven days in advance, allowing them to get a great last-minute deal while hotels receive incremental revenue for rooms that would otherwise be vacant. HotelTonight even has an app for the Apple Watch which will show users the five-closest hotels and allow them to book with just a tap. Shank said the company’s model allows customers to shop across multiple options, while hotels can update their inventory in real time. Some hotels can update their pricing as often as 15 times a day, he noted. Must Read: This Is Warren Buffett’s Favorite Beverage Company 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 Starbucks, Chipotle Mexican Grill, Under Armour , Google and Facebook . Cramer said this portfolio has overlap with Starbucks and Chipotle, and with Google and Facebook. The second portfolio’s top holdings also included Under Armour along with Apple , Jet Blue , Tetraphase Pharmaceuticals and Inovio Pharmaceuticals . Cramer said this portfolio had too much biotech and advised selling Inovio and adding an industrial like General Electric , which offers a little dividend yield. Must Read: George Soros’ Top 5 Dividend Stock Picks for 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.Click to view a price quote on CMG. Click to research the Leisure industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. This program last aired July 17, 2015. NEW YORK (TheStreet) — What makes a good investor? Knowing to expect the unexpected, Jim Cramer said on Mad Money as he opened his investing tool box to help viewers become better investors. Diversification is still the only way to invest, said Cramer, admitting he occasionally gets it wrong. Sometimes his stock picks just simply don’t work out. That’s investing. Any investor putting together an investing portfolio needs to be prepared, said Cramer, because sooner or later something won’t work out. Must Read: 7 Stocks Warren Buffett Is Buying in 2015 But how should investors prepare for the next market catastrophe or stock pick gone bad? Not by being bearish but by being smart, Cramer said. Being a bear means shorting stocks, hoping they go down. That’s a valid investing strategy but it limits one’s profit potential since the lowest a stock can go is zero. However, Cramer said, compare that to bullish investing, betting that stocks go higher. Their potential profits are limitless, he said. Investors who invested in Action Alerts PLUS holding Apple in 2009, for example, realized a 580% gain over the next three years. Beyond having a positive outlook, Cramer said the most important rule to managing your money is diversification. That means not having all your eggs in one sector basket. A portfolio with five stocks must have only one technology company, one health care name, one energy company, one industrial, etc. Two or three of a kind is a quick way to get caught off guard, so no more than 20% of a portfolio can be in a single sector. Being diversified is more than just investing in different sectors, however. Cramer said the new rules of diversification also require owning some gold in your portfolio along with a high-yielding dividend stock, a growth stock, a speculative stock and one that’s firmly rooted in a healthy geography. Check the Dividends Cramer said the most important category of stocks that must be in a diversified portfolio is a high-yielding dividend stock. He said that every portfolio needs at least one, possibly more, dividend payers. While dividend stocks might not seem sexy, dividends make money. In fact, nearly 40% of the total gains from the S&P 500 since 1926 have come in the form of dividends. Over the past decade, that percentage is even higher, he said. Dividends aren’t merely safety plays for retirees and cautious investors, said Cramer. They are a smart strategy for making money. He explained that as a stock price falls, its dividend yield increases, which, in turn, makes it more attractive to investors. Stocks that hit a 4% yield represent terrific long-term bargains, he noted, which is why stocks typically stop going down once they hit 4%. But beyond making money, Cramer said dividends – and especially dividend raises — are management’s way of telling investors that things are going well at a company. A solid, steady dividend that gets raised regularly is a hallmark of a company that’s stable and doing well. Not all dividends are created equal, however, cautioned Cramer. He said dividend yields that are not sustainable are red flags. Just look at what happened to Radio Shack and supermarket SuperValu in early 2012 for a lesson in dividends gone awry. Cramer said a company’s earnings per share should be at least twice that of its dividend payout to be considered safe. For companies with high capital needs, like telcos, he said investors can look at the cash flow as another metric to see whether the dividend may be in jeopardy. Must Read: 3 Main Factors the Federal Reserve Is Watching Secular Growth Stocks Next in Cramer’s toolbox of investing tips: secular growth stocks. Stocks like AAP holdings Apple, Google and Facebook all fit this category, said Cramer. So do many biotech names including Regeneron and Celgene . Growth stocks will hit new high after new high as long as their growth continues. That’s because stock prices represent what investors are willing to pay for future earnings, he said. So as a company’s earnings grow, so, too, does its share price. Cramer said as a rule, he’s willing to pay up to two times a company’s growth rate. So for a company growing 20% a year, he’s willing to pay up to 40 times their earnings. Growth stocks typically won’t trade below one time their growth rate unless something is going wrong. Cramer told investors to pay close attention to the direction of the earnings estimates anytime they’re investing in growth names. "When you’re playing with momentum, you’re playing with fire," Cramer continued. When earnings have momentum, companies can see their stock double in just a year, but if the earnings begin to slow, they will fall sharply — as Chipotle Mexican Grill saw in July 2012 when shares tumbled 100 points on the mere suggestion that the company may be vulnerable to a weakening U.S. economy. U.S.A. All the Way Back in the old days, part of diversification used to mean owning a foreign stock, Cramer told viewers, one with exposure to the red-hot emerging markets. But with fiasco in Europe and a slowdown in China crushing all things international, the tables have turned, making stocks firmly rooted here in the U.S. pretty good by comparison. That’s why part of the new diversification requires one stock that offers domestic security, anything that is U.S.A. all the way. Cramer said that could be a phone company such as AT&T or Verizon or a utility such as Consolidated Edison or Duke Energy , all of which are also high yielders. But investors could also choose a regional to national restaurant chain such as Popeye’s Louisiana Kitchen or a real estate investment trust such as Federal Realty Trust or Tanger Factory Outlets . Cramer said his bottom line is that investors need to be thinking about all-American companies for the foreseeable future. Must Read: 5 Big Stocks That Are Showing Strength in a Volatile Market Remember the Gold Cramer’s last tip for investors was to always include some gold in their portfolios. Gold, he said, has a special property that makes it precious. Gold goes up when everything else is going down. It’s insurance against economic uncertainty, geopolitical chaos and inflation. Cramer said to think of gold as stock insurance, just as valuable as homeowners or auto insurance. Gold has been the best-performing asset class year after year for the past decade, racking up gains consistently at a time when just about everything else has been disappointing. Owning gold is not just about the upside, however — it’s also about minimizing the downside. Cramer once again heralded the SPDR Gold Shares exchange-traded fund as his favorite way to invest in gold. For investors who can afford to buy larger quantities of gold, owning gold bullion or gold coins is also a wise choice, he added. But beware of the gold mining stocks, Cramer cautioned. While these companies benefit from the increasing scarcity of the precious metal, they also encompass countless ways to screw things up, costing investors dearly. "If you want exposure to gold," Cramer concluded, "do the easy thing and buy the GLD." Must Read: Stock Market Today – Focus on ECB President Draghi’s Comments 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.Click to view a price quote on AAPL. Click to research the Consumer Durables industry.
NEW YORK (TheStreet) – On "Black Monday," Aug. 24, the Financial Select Sector SPDR Fund , the Health Care Select Sector SPDR Fund and the Technology Select Sector SPDR Fund had flash-crash opens that were down by an unreasonable percentage of 21%. These exchange-traded funds also suffered from the negative influence of holding components of the Dow Jones Industrial Average. Here’s what happened and how to trade the continued bungee-type volatility among these three ETFs, plus seven other sector exchange-traded funds. The implementation of Rule 48 by the New York Stock Exchange provided a double-whammy for ETF pricing. Without bid and ask prices before the opening bell, for both the ETFs and for their components, it was even more difficult to judge prices. This contributed to the panicked trade executions associated with flash crashes. The table below shows 10 sector ETFs, along with their ticker, date and time, opening price, high price, low price, last price, and volume for the first and second five-minute intervals. Courtesy of MetaStock Xenith This data clearly shows that when market orders to sell could not find fair prices of execution, the high-frequency trading platforms executed orders at flash-crash panic levels, as the order book was virtually unknown. Must Read: What Investors Should Do If They Sold on Black Monday For these sector ETFs, the table below shows the July 31 closes, the percent changes month to date, the Aug. 21 closes, the Aug. 31 closes, the percent change since Aug. 21, the Aug. 24 crash low, the percent crash from Aug. 21 close, the Aug. 25 secondary low, the percent change from Aug. 24 low, the percent change from Aug. 25 Low, and the percent difference between the Aug. 25 low and the Aug. 24 low. Let’s look at the three ETFs with the largest flash crashes and their weekly chart profiles. (And here’s a link to a table of flash crash data for 15 components of the Dow 30. Nine of these are major holdings of these three ETFs.) The Finance Sector ETF had a close of $22.67 on Sept. 1, down 10.1% since July 31. The ETF experienced a flash-crash plunge of 21.7% from the Aug. 21 close of $23.64 to the flash-crash low of $18.52, set within the first five minutes of Aug. 24, when 5.16 million shares changed hands. JPMorgan Chase represents 8.15% of this ETF. The range for the first 10 minutes of trading was from $18.52 to $22.98, a spread of 24% for a benchmark sector ETF. This range more closely resembles a normal annual range, not a 10-minute window. The secondary low for XLF was set at $22.25 on Aug. 25. The difference between the Aug. 24 low and the Aug. 25 low was an unrealistic spread of 20.1%. The weekly chart for the finance ETF shows the Fibonacci Retracement of its crash of 2008. The flash crash low was above the 38.2% retracement of $18.20, and last week’s close was above its 50% retracement of $22.02. This ETF has not been able to recover the 61.8% retracement of $25.83. The weekly chart is negative, with the ETF below its key weekly moving average of $24.17. Investors looking to reduce holdings should place a good till canceled limit order to sell the ETF if it rises to $23.41 and $25.00, which are key levels on technical charts until the end of September and 2015, respectively. Courtesy of MetaStock Xenith Must Read: Bank of America’s 10 Best Stock Ideas for the Third Quarter The Health Care ETF had a close of $68.64 on Sept. 1, down 10.4% since July 31. The ETF experienced a flash-crash plunge of 21% from the Aug. 21 close of $71.70 to the flash crash low of $56.53, set within the first five minutes of Aug. 24, when 1.4 million shares changed hands. The weightings include 9.83% for Johnson & Johnson , 7.43% for Pfizer , 5.71% for Merck and 4.16% for UnitedHealth . The range for the first 10 minutes of trading was from $56.63 to $68.30, a spread of 20.6% for this popular ETF. The secondary low for this ETF was $67.86, set on Aug. 25. The difference between the Aug. 24 low and the Aug. 25 low was an unrealistic spread of 19.8%. The weekly chart is negative, with the ETF below its key weekly moving average of $73.01. Investors looking to buy the Health Care ETF should place a good till canceled limit order to purchase the ETF if it drops to $53.44, which is a key level on technical charts until the end of 2015. Investors looking to reduce holdings should place a good till canceled limit order to sell the ETF if it rises to $74.16, which is a key level on technical charts until the end of 2015. Courtesy of MetaStock Xenith The Technology ETF had a close of $38.94 on Sept. 1, down 8.4% since July 1. The ETF experienced a flash-crash plunge of 20.8% from the Aug. 21 close of $39.56 to the flash crash low of $31.32, set with the first five minutes of Aug. 24, when 1.9 million shares changed hands. The weightings include 16.36% for Apple , 4.85% for Verizon , 3.51% for Visa and 3.37% for Cisco Systems . The range for the first 10 minutes of trading was from $31.32 to $37.52, a spread of 19.8% for the tech sector. The secondary low for the tech ETF was $37.66, set on Aug. 25. The difference between the Aug. 24 low and the Aug. 25 low is a ridiculous spread of 20.2%. The weekly chart is negative, with the ETF below its key weekly moving average of $41.07. Investors looking to buy the tech ETF should place a good till canceled limit order to purchase the ETF if it drops to $35.17 and $33.51, which are key levels on technical charts until the end of 2015. Investors looking to reduce holdings should place a good till canceled limit order to sell the ETF if it rises to $41.94 and $43.60, which are key levels on technical charts until the end of September and 2015, respectively. Courtesy of MetaStock Xenith Must Read: How to Invest in Dividend StocksClick to view a price quote on XLF. Click to research the Financial Services industry.
NEW YORK (TheStreet) — This morning my big idea focused on the call-back spread tactic, and now we will employ that strategy. The Technology Select Sector SPDR ETF’s top holdings include Apple , Microsoft , Google , Facebook , Verizon , IBM , Visa and Cisco . XLK has traded between $31 and $44 over the past 52 weeks. It has a current year-to-date gain of approximately 4%, which given what has occurred so far in 2015 is an "OK" return. And there could be more upside over the next several quarters.Must Read: Warren Buffett’s Top 10 Dividend Stocks The CBS tactic fits this ETF primarily because of the premium bids/offers in terms of risk/reward potential and liquidity. The holdings of XLK are loaded with quality stocks that have upside potential, especially if the tech sector is finally about to find new buyers combined with less sellers! The CBS expiry for this trade is January, which is a relatively long term for any premium buyer. The CBS is a combo of premium buying and selling, the buying being done with the capital provided by the selling of the deeper call. Thus, capital required is "paid for" by that short call side of the trade relative to buying the out-of-the-money calls for the trade. This capital tactic is what I call OPM (Other Peoples’ Money!). If set up the way I prefer, the shorted side call (literally) pays for the long-side calls. And if that does not set up then I pass on that trade. Trades: Sell to open 1 XLK January 40 call at $2.20 and buy to open 2 XLK January 42 calls for $1.10. The total risk for the trade is $2.00. The suggested target to close the trade is for a credit of 50 cents and the suggested stop is a debit of 50 cents. AS ALWAYS, this is a guideline and you should stick to your trading plan and what’s best for your risk/reward tolerance. Now if your broker can take a CBS order, you might enter the trade using this lingo: Sell 1 XLK January 40 call and buy 2 XLK January 42 calls for "even money". That verbiage allows for the broker to execute the trade with whatever numbers/prices they can in order to get the trade opened for you at, once again, even money. In other words, you will not put up any capital other than margin money that the broker will require. Paper trade this set up if you have ANY doubts about it. Know that I paper-traded for five years before taking my first capital at risk trade many years ago. Of course back then nobody knew what CBS was! Oh, my. Must Read: 10 Stocks George Soros Is Buying in 2015Click to view a price quote on XLK. Click to research the Financial Services industry.
NEW YORK (The Deal) — With activist investing on the rise among hedge funds — almost 200 campaigns of various stripes are taking place annually now — it was only a matter of time before someone would try to capture the promised returns for the retail investor. It sounds good on paper. Activists have become more prominent players in the markets and can cause significant swings in valuation. But the somewhat idiosyncratic nature of activist investing makes it a difficult model to replicate. Must Read: Top 10 New Stocks to Trade Like Hedge Fund Renaissance Technologies Nonetheless, several market-savvy entities have tried to make activism more accessible to a wider group of investors. The latest into the field is Standard & Poor’s, owned by McGraw Hill Financial . The ratings agency recently introduced an index that seeks to track activist campaigns through their Schedule 13D filings with the Securities and Exchange Commission. Investors are required to file 13Ds within 10 days of their stakes going over 5% where they seek to materially influence the company. The U.S. Activist Interest index, formally launched earlier this month, tries to set a benchmark against which to measure the performance of companies that have been targeted by13D campaigns for a period of time after the stake is revealed. S&P hopes to license out the product to some exchange-traded funds, or ETFs, specializing in activist investors. "We’re seeking to find out whether activists, when they take a stake, add shareholder value over a period of time," said Vinit Srivastava, senior director at S&P Dow Jones Indices. "We are trying to capture the performance of companies that have seen some activist campaigns." The current index is a snapshot of 67 companies targeted by activists and includes some of the biggest names in the field going up against billion-dollar companies including Carl Icahn’s sally at Hertz Global Holdings , Bill Ackman at Zoetis , Dan Loeb’s proxy fight with Sotheby’s and Jeff Smith’s engagement with Darden Restaurants . But the list also includes activist campaigns launched by firms known mostly to Wall Street cognoscenti, such as Clifton Robbins’ Blue Harbour Group at Investors Bancorp and Daniel Lewis’ Orange Capital at casino operator Pinnacle Entertainment . The targeted companies on the list must be members of the S&P U.S. Broad Market Index, or BMI, which covers most publicly traded U.S. companies. They also must have a three-month average daily trading value of $20 million to meet liquidity needs. Must Read: 3 Charts That Will Tell You When It’s Safe to Buy Stocks Again The activist investors come from a pool of 253 insurgent investors, as so classified by S&P Capital IQ, which considers a wide variety of fund managers as activists: from "non-confrontational" insurgents who seek to privately engage management, like Blue Harbour, to those that tend to launch proxy fights (Icahn, Ackman). Companies are removed from the index 24 months after the activist campaign is launched through a 13D filing. S&P spokesman Dave Guarino said that as of July 31, on a total return basis, the Activist Interest Index returned 20.5% annualized over 3 years and -7.45% over the past year. The ratings agency has back tested its index 10 years — as of Aug. 17, the annualized return stood at 16.51%, according to S&P’s Web site. compared to its benchmark index, the S&P 500, which had 10-year annualized returns of 5.59% as of the same date. The numbers sound good, but the structure of the S&P index itself illustrates the difficulty of trying to make money by following activists. The insurgency game changes quickly, and assumptions that seem valid now can become outdated before the index can adapt. And many activists operate under the radar, making it almost impossible to account for their activities. S&P was not deterred by the obstacles, but it’s not clear that it overcame them. The company settled on the two-year period for its index was based on an assumption "that a 24-month holding period was reasonable to be able to capture that effect [of shareholder activism] — it is neither short nor very long," Guarino said in an email. He noted a 2008 study, The Returns to Hedge Fund Activism, found that the "median holding period of funds is close to a year with most approaching about 20 months." That study looked at data on activism from 2001 to 2006 and concluded that the insurgent funds outperformed the S&P 500. The two-year period, however, might not take into account the more sophisticated analyses performed by activists these days. In addition, some of the firms — whether through sensitivity over accusations of short-termism or for strategic purposes — will stay involved longer, especially when a company begins a complicated series of restructuring moves. For example, Manitowoc , which is included in the list, moved to split itself in two companies — one for its construction cranes business and the other for its foodservices unit — under pressure from Icahn. But Icahn has insisted that the new companies maintain shareholder-friendly governance standards, an indication he may eventually want one or both companies sold. That could come outside the two-year time period contemplated by the index. In fact, two of the authors of the 2008 article cited by S&P, Alon Brav of Duke University and Wei Jiang from Columbia University, together with Harvard Law School’s Lucian Bebchuk, focused on a longer time period in a 2015 paper — five years — to determine whether the positive results to shareholders and the targeted companies outlasted an activist’s efforts. S&P also launched a related U.S. Spin-Off index this month, which is designed to measure the performance of companies that have spun off divisions over the past four years. There is overlap between the two indexes as activists often push for a corporate breakup. Potentially, it would help ETFs capture the complexity of the modern activist investing environment. Must Read: A Popping Bubble in China and ‘Death Cross’ Patterns at Home Another anomaly not taken into account by the two-year time period is situations where a shareholder is exiting for reasons other than the end of a campaign. For example, oil and gas company Magnum Hunter Resources , also in the index, had been a target of Relational Investors, the fund where founder Ralph Whitworth had to step down for health reasons. Relational is gradually winding down its positions, but that has little to do with whether its targeted companies have performed or not. Guarino said S&P can’t comment on changes to the index because they are "market moving material" that has to be announced publicly. No index can reflect all aspects of equity trading. Because the Activist Interest index captures only 13D filings, it doesn’t include those situations where the investor has less than the triggering 5% stake. In these days of more campaigns at bigger companies that can include some very large activism efforts, including Icahn’s successful push at Apple to have the company use its huge cash pile to buyback more shares, Nelson Peltz’s epic proxy fight with E.I. du Pont de Nemours , which the fund manager ultimately lost, or Jana Partners and its insurgency at Qualcomm . The number of activists with sub-5% stake campaigns has been steadily rising over the past five years, according to FactSet. It rose to 85 campaigns or 34% of all insurgencies in 2014, up from 57 campaigns from investors with less than a 5% stake or 27% of all insurgencies in 2013. While the index has yet to be licensed for an ETF product, Srivastava said that is the plan "down the road." In the meanwhile, he said, S&P has licensed it for "structured products such as indexed-linked CDs for private wealth clients." There is at least one activist ETF in existence already, the Global X Guru Activist Index ETF , which was launched April 29. It identifies the top 50 aggregate stock holdings held by a pool of activist investors, after screening for certain liquidity and market capitalization requirements. ACTX holds 51 positions and, unlike the S&P activist index, many of the target companies include insurgencies launched by activists with smaller than 5% stakes, including Apple, DuPont and Microsoft . The ETF recently traded at $12.81, down 3.3%, down from its April open of $15.08. Neena Mishra, director of ETF Research at Zacks Investment Research, expects more activist fund-focused ETFs to emerge as investors look for strategies that can outperform the broader market. She expects S&P to succeed at licensing its activist index to ETFs. "Following smart money like activist funds has been one of those strategies as broader market returns are expected to be lackluster," she said. However, Mishra cautioned that investors should wait until there are more activist-focused ETFs, or at least until ACTX — with $2.8 million in assets — accumulates more investors. She argues that small ETFs such as ACTX inherently face the risk of closure due to low asset volume. "Any ETF with less than $50 million in assets under management faces closure risk," she said. "Thus, investors should wait for some time before investing in newly minted ETFs. Low AUM for ACTX shows that this strategy is not popular with investors as of now." Must Read: How to Keep Your Gains From the Bull Market in Stocks Selloff S&P’s move to include a three-month average daily trading value of $20 million for targeted companies is critical, Mishra argues, because it enables potential ETFs to obtain the liquidity they need to buy and sell shares in the bundle. But it means that investors won’t gain access to less-liquid activist targets that could ultimately generate significant returns. Mishra says that an ETF following the index would give investors a low-cost diversified way of following the activists. Beyond ETFs, there is the 13D Activist Fund , a mutual fund that also offers retail investors exposure to shareholder activism. DDDAX recently traded at $16.50, down 2.5%, and has a three-year annualized return of 24% as of Dec. 31. According to a June 30 report, the fund held stakes in activist targets Darden, Juniper Networks and Canadian Pacific Railway , as well as several others. Admire Capital, primarily a quantitative hedge fund focused on activist and value investments, is another option restricted to high net-worth accredited investors. Armen Karamanian, the fund’s managing director, said he uses 50 quantitative factors to identify the most promising companies from activist and value investor portfolios. One of the factors, Karamanian said, is based on a 2014 paper by Harvard Ph.D. candidate, Jonathan Rhinesmith, which suggested that when investment fund managers "double down" on positions that drop in value, those stock later outperform. "We do a lot of predictive analysis on hedge fund behavior," Karamanian said. The effect of the interest in investment products that track the campaigns mounted by activists are not likely to be used to actually back those insurgencies for some time. Mishra contends that ETF managers are likely to back activist campaigns down the road, for example at target-company proxy fights, but their assets haven’t gotten to the point where it could make any impact. "If interest picks up you will see ETFs through their votes aiding the activists and be a force for change," Mishra said. "But that’s not going to happen any time soon." Must Read: 8 Stocks Warren Buffett Is Selling Read more from:Click to view a price quote on MHP. Click to research the Diversified Services industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. A version of this program last aired July 6, 2015. NEW YORK (TheStreet) — Let the overseas markets create some bargains before you pull the trigger and buy your favorite stocks, Jim Cramer told his Mad Money viewers Friday. These days, it’s just too crazy to start swinging at every pitch, that’s why next week’s game plan is a cautious one. Cramer said his week starts with China, where the Shanghai Composite must hold above 3,500. That’s the critical level everyone is worried about. Next, on Tuesday, we hear from Best Buy , which will provide data on GoPro sales, cellphone sales and sales of the Apple Watch. Apple remains a stock Cramer owns for his charitable trust, Action Alerts PLUS, and one he still recommends owning for the long term. Also on Tuesday is Toll Brothers , where Cramer expects to hear good things. Next, on Wednesday, Cramer’s betting on Brown Forman to have a strong quarter, but not on semiconductor maker Avago Technologies , which is levered to China. Cramer is bullish on Williams-Sonoma and expects to hear how back-to-school is shaping up from PVH . Thursday brings a slew of earnings from J. M. Smucker , Tiffany and Cramer faves Dollar General , GameStop , Ulta Salon and Zoe’s Kitchen . Cramer said he’d pounce on any of his faves if there is any weakness in the markets, and he’s still positive on Smucker. Tiffany is a tough one, however, after a tough quarter last time around. Finally, on Friday, it’s the latest personal income and spending metrics. Cramer said these numbers must be moderate to keep the Federal Reserve at bay. Must Read: 5 Toxic Stocks You Should Sell Now Why Markets Don’t Make Sense When you have days like today, the markets don’t always make sense, Cramer said. It’s important to know how the market works behind the scenes so you can deal with market market selloffs. First thing to remember: The stock market isn’t always rational, Cramer told viewers. In fact, a stock, a sector and even the entire market can move for the most stupid reasons. The media try to do their best at finding logic and reasons for these moves but often even they are just connecting dots that aren’t really there. There are many reasons why the markets can sell off. Often hedge funds need to sell stocks to raise cash while other times mutual funds may need to sell some holdings in order to make room for the next hot initial public offering coming to market. But despite these rather benign reasons to sell, regular investors often see these moves and panic. It’s not just stocks that get caught up in irrational thinking. Remember oil at $147 a barrel in 2008? That was caused by hedge funds caught on the wrong side of the trade, which is why oil fell in almost a straight line to just $33 a barrel a year later. Our complex system of futures and exchange-traded funds don’t make things any better because they cause stocks to trade even more in lockstep when they otherwise wouldn’t. Just because a stock or commodity trades at a certain price, it doesn’t mean it deserves to, Cramer stressed. Know the Broken Companies So what should investors do when the markets sell off big? First, remember that not everything that does go down deserves to go down. There are broken stocks and there are broken companies, Cramer said. There’s a big difference between the two. Look for the companies that caused the selloff and you’ll often find the broken companies. In 2007, that was decidedly anything having to do with a mortgage. But investors also need to steer clear of anything related to the primary blast zone. In 2007, that was anything related to housing, from home builders to everything that goes into a home. But beyond those broken companies, the rest of the markets weren’t all that bad. For instance, the oil stocks fell alongside everything else in 2007, but the oil boom was only just getting started. In 2011, Cramer said, investors were presented with more buying opportunities in companies that had very little to do with the worries over the potential default of the U.S. government. In 2012 domestic companies brought down by European turmoil. How can a Mexican restaurant chain like Chipotle get hit off of Italian bonds. Well, it happened. The stocks went down because all stocks were going down, he continued, but there often wasn’t a connection to the causes of the selloff. Cramer calls this the "Bristol-Myers syndrome," as in "What does that selloff caused by Cyprus bank failures, or a mess in Ukraine, or a federal shutdown, or an endless Greek crisis have to do with the price-to-earnings ratio of Bristol-Myers"? Most likely nothing, he said, which is why it is probably time to buy that quality, blue-chip drug company. What to Own Now Continuing with his lessons for handling a market selloff, Cramer offered viewers two tips for picking which stocks to have on their shopping list when the next big decline hits. First, look at the 52-week high list. Stocks don’t end up there for no good reason, he quipped, and these stocks are terrific buys when their share prices fall by 5% to 7% along with the rest of the markets. The second group of stocks are the big dividend payers. Yes, dividend stocks aren’t sexy or overly exciting but as their share prices fall their yields rise, making them even more attractive as income vehicles. These "accidental high yielders," as Cramer often calls them, are among the first to rebound after a decline. Must Read: These 5 Momentum Stocks Are the Keys to Stabilizing Tech Sector There is one caveat to investing in dividend stocks, however, and that’s the dividend must be safe. A company must have earnings that are at least twice the dividend payout, Cramer said, and have a solid track record of paying it out. Fueled by Cash Now that investors have an idea to how to handle a selloff, how will they know when it’s over? Cramer said stocks need fuel to head higher and that fuel is cash. Whether it’s retail investors pouring money into mutual funds or hedge funds putting their money back to work, as long as there’s money coming into the markets, buying the dips will always be a smart investment. Without new money, the markets will only see a rotation, where money from one sector flows into another, ultimately leading to a zero-sum game. That’s why investors need to be cautious when they see defensive stocks, like beverage or drug names, heading markedly higher without new money inflows to help keep the markets afloat. 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.Click to view a price quote on BBY. Click to research the Retail industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — Many of the stocks the bulls wanted to rally actually rallied today, Jim Cramer told his Mad Money viewers Thursday. As the winners in this market came roaring back, there was a lot to like. Among the notable names were the "cult stocks" Amazon.com , Netflix and Tesla Motors , all of which continue to disrupt their industries. Must Read: Goldman Sachs Says You Should Buy These 9 Financial Stocks In the case of Amazon, what’s good for them must be bad for brick-and-mortar retailers like Kohl’s , down 8.5% today, but not Wayfair , the online retailer that was up another 9.4%. Apple was able to eek out some gains as investors are learning this Action Alerts PLUS holding is pretty well hedged against Chinese currency risks. Autos continue to be a strong theme, with Advanced Auto Parts reporting a monster quarter that propelled shares up 9.1%. Home improvement also continues to shine, with Home Depot hitting all-time highs, and the fitness craze continues with Under Armour up a quick 1.6%. These are just a few of the many stocks that are working, Cramer concluded, at least when the bulls are in charge. Executive Decision: Strauss Zelnick For his "Executive Decision" segment, Cramer once again sat down with Strauss Zelnick, chairman and CEO of Take-Two Interactive , the game maker that’s seen its shares rise 9% since Cramer last checked in back in May and 32% over the past 12 months. Zelnick said the big change at Take-Two over recent years is his company’s earnings are no longer hit-dependent, as the company is now profitable every quarter and can project profits into the future. When asked about his company’s NBA game franchise, Zelnick said the business is growing steadily and has the potential to be a big business, especially in China where Take-Two is still in its early days. Zelnick said the appeal of video games is not only the immersive story element of their titles, but also the ability for gamers to create their own experiences within those worlds. That’s something TV and movies simply cannot deliver. Cramer agreed and continued his support for Take-Two. Howard Schultz on Opportunities In a special interview, Cramer spoke with Howard Schultz, the outspoken CEO of Starbucks that today was in Chicago hosting an event called 100,000 Opportunities, which is dedicated to helping young people enter and thrive in the American workforce. Schultz recently voiced his opinion in a New York Times editorial that America has become devoid of servant leadership, where corporations strike a balance between profits and social conscience. Meanwhile, in Washington, polarization and in-fighting prevents our government from asserting itself as America’s social barometer as well. But Schultz contends that corporate America can do more for our country and society, as his event today has proven. He said many young people feel disconnected from the American dream, but still have a desire to succeed if only given a chance and some direction on how to do so. Must Read: 5 Big Dividend Stocks That Want to Pay You More Executive Decision: Kevin Sayer In his second "Executive Decision" segment, Cramer sat down with Kevin Sayer, president and CEO of DexCom , the medical device maker with a stock that’s up 76% so far this year because the company’s glucose monitoring systems continue to outpace the competition. Sayer said DexCom is the world-class leader in glucose monitoring technology and is a lifesaver for the 1.5 million people diagnosed with type-1 diabetes. DexCom’s products not only continually monitor a patient’s glucose levels, they can also provide alerts and notifications to family or physicians and even pop-up notices on an Apple Watch. That’s why the company caught the attention of Google’s life sciences arm, which has partnered with it to help make the technology small enough and affordable enough for millions around the globe. Cramer said it’s no wonder shares of DexCom hit all-time highs today. Lightning Round In the Lightning Round, Cramer was bullish on Stryker , Salesforce.com , PNC Financial Services and RR Donnelley . Cramer was bearish on Navigator Holdings , Veeva Systems , SeaDrill Limited , Axovant Sciences and Enbridge . Must Read: Should You Be Shorting the Dow and S&P 500? Executive Decision: Ward Nye In a third "Executive Decision" segment, Cramer sat down with Ward Nye, chairman, president and CEO of Martin Marietta , the aggregates maker with shares up over 55% in 2015. Nye explained that when it comes to the aggregates business, where you are matters. That’s why his company, with exposure to the southeastern and southwestern U.S., is doing quite well. Nye said that state spending on infrastructure is finally starting to make a comeback, with states like Iowa, Texas and Georgia all opting to spend more to make their states better. Meanwhile, Nye was also optimistic Congress may actually pass a federal highway bill by the end of the year. In addition to roads and bridges, Nye noted that non-residential construction is beginning to pick up in a meaningful way. That’s why Martin Marietta remains committed to both making more acquisitions and continuing to buy back its own shares. 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.Click to view a price quote on TTWO. Click to research the Computer Software & Services industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — Never forget what the market is truly craving, Jim Cramer told his Mad Money viewers Wednesday. The markets go higher on a weaker U.S. dollar, lower interest rates, a quiet Federal Reserve and higher oil prices, Cramer reminded viewers. When we see those signs, as we did today, a market rally ensues. The strong dollar has been capping the markets for weeks, Cramer noted, but today it declined a bit, which was welcome news. China’s shocking currency devaluation should keep the Fed, and higher interest rates, at bay, which is another big plus. Must Read: 7 Stocks Jim Cramer Has Found Amid the Stock Market Rubble Then there’s oil. The consensus continues to be that oil must be plummeting to near zero. But as Cramer detailed in last night’s "Off the Charts" segment, the technicals are pointing to a bounce in the oil patch, which is exactly have happened today. Couple all these positives with the news that Apple’s Watch might not be the flop that some outlets are claiming — both Fossil and Macy’s , which don’t sell Apple’s Watch, noted slowing watch sales in their earnings — and the market was able to get its groove back. That’s why Cramer continues to own Apple for his charitable trust, Action Alerts PLUS. Cramer also continued to recommend high dividend-paying stocks including General Mills and even Procter & Gamble . Executive Decision: Stanley Erck For his "Executive Decision" segment, Cramer sat down with Stanley Erck, president and CEO of Novavax , the vaccine maker that’s roared 120% since Cramer featured the company in mid-January. Erck explained that drug companies have been working on vaccines for viruses like Respiratory Syncytial Virus, or RSV, for over 50 years, but Novavax took a new approach to engineering a nano-particle that invokes a powerful immune response in the body that it showing promising results. RSV affects mainly babies, children and the elderly, Erck noted, and is a big issue. Novavax is also working on vaccines for pandemic flu. Erck said Novavax’ platform allows the company to react quickly, as it did with the avian flu outbreak and last year’s Ebola outbreak. In the case of avian flu, Novavax had a vaccine in clinical testing just 91 days after the flu was identified. When asked how a small biotech company can outpace the biggest of drug companies, Erck said, "That’s what biotechs do, they disrupt," noting smaller companies can think up all sorts of non-traditional ways to make drugs that bigger companies can’t. Macy’s Problems Retailer Macy’s has always been known for having everything, but is that really what shoppers want? Apparently not, if the company’s most recent quarter is any indication. Macy’s surprised Wall Street with an extremely disappointing quarter that sent shares reeling down over 5%. It turns out Macy’s has too much of everything, Cramer noted — too much apparel, too many accessories and too much real estate.Must Read: 3 ‘Back-to-School’ Stocks to Buy Cramer said Macy’s has some real structural problems it needs to solve, including its ill-timed expansion in Puerto Rico and China and its slow response to online-only retailers like Amazon.com . Even in furniture, an area Macy’s said did well this quarter, the company is seeing online rivals such as Wayfair shoot the lights out, with shares roaring over 28% today on an exceptionally strong quarter. Cramer said he still has faith that Macy’s can fix all of its problems, but in the short term the company has clearly lost its way. Executive Decision: Chuck Robbins In his second "Executive Decision" segment, Cramer also spoke with Chuck Robbins, the new CEO of Cisco Systems , which today posted a 3-cents-a-share earnings beat with robust guidance. Cisco is currently in Cramer’s Action Alerts PLUS portfolio. Robbins said he’s very pleased with the quarter, which included record revenue and a 20% rise in deferred revenues as Cisco moves more into subscription and software services. Robbins said Cisco is also aligning its product portfolio to better meet the needs of its customers, partners and shareholders, which means certain segments, like set-top boxes, are no longer a priority. When asked about sales overseas, Robbins noted that China only represents 3% of sales currently but Cisco remains committed to that country over the long term. In Europe, sales were actually up slight, Robbins said. Lightning Round In the Lightning Round, Cramer was bullish on Nucor , Taser International , The Blackstone Group , Wells Fargo , iRobot and Paychex . Cramer was bearish on Timken , Petrobras , Banco Santander , LendingClub and Automatic Data Processing . Must Read: Why China’s Yuan Devaluations Won’t Help Its Economy Executive Decision: Richard Thompson In a third "Executive Decision" segment, Cramer sat down with Richard Thompson, CEO of Freshpet , the all-natural pet food maker that’s seen its shares tumble 20% so far in 2015 as investors question the company’s path to profitability. Thompson said Freshpet will get to profitability, but for now it’s a growth company disrupting a big industry and is spending to take market share. He said his company continues to execute the plan it came public with and has a great team and great products in place. In addition to the company’s current offerings, Thompson said Freshpet is also entering the $17 billion dry pet food market, and continues to test and refine its cat food line at select retailers. Cramer said Freshpet is delivering on the growth it forecast, and perhaps some investors expected too much too soon from the company. 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.Click to view a price quote on NVAX. Click to research the Drugs industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — Stay skeptical, not negative; practical, not bearish. That was Jim Cramer’s advice to his Mad Money viewers Monday, as he recapped the 10 reasons why the market was able to stage at least a one-day rally. 1. The markets were oversold, down for seven days in a row. Must Read: Warren Buffett’s Top 10 Dividend Stocks 2. Things in China are so bad, it’s clear the Chinese government will soon need to do even more to help things along. 3. Warren Buffett’s acquisition of Precision Castparts proved that the aerospace business is doing just fine. 4. Europe is rallying behind getting a Greek aid package passed, despite interference from Germany. 5. The strong U.S. dollar finally showed some weakness. 6. Inflation remains tame, making it silly for the Federal Reserve to raise interest rates in the near term. 7. Oil was able to bounce off its lows. 8. The rotation is for real, and investors snapped up the recession-proof stocks as they headed lower. 9. The media stocks were able to stage a comeback, bolstered by Google , which Cramer owns for his charitable trust, Action Alerts PLUS, which announced a restructuring. 10. Apple , another Action Alerts PLUS core position, was also able to rally. Cramer reiterated his buy on Apple. Do any of these reasons mean the market can extend its rally tomorrow? Probably not, Cramer admitted, but it’s good to know that if conditions are right, stocks still can head higher. What to Buy Next Even on up days like today, it’s always prudent to do some thinking about what will rally next, Cramer told viewers. That’s why he always circles back to the new highs list for ideas. Among last week’s big winners, Cramer identified eight themes investors should take notice of. First are the food and beverage stocks, which prosper from cheaper commodity prices. Among the group, Cramer called out Whitewave Food , an Action Alerts PLUS name, and General Mills as favorites. Next are medical devices, where Henry Schein is offering a rare buying opportunity. Home builders also made some new highs last week, with Lennar catching Cramer’s eye. Meanwhile, over in the travel and leisure space, Cramer said to keep an eye on the cruise lines. Information technology and insurance also topped the list last week. Cramer said Chubb continues to shine in the insurance space. Athletic apparel stocks also rallied last week, but Cramer advised waiting for a pullback before pulling the trigger on this group. Finally, Cramer identified what he called "special situations" such as Snap-On Tools helping our aging autos, and Netflix changing the way we consume media. All of these areas are big trends that can be bought on the next market downturn. Must Read: Must-See Charts for Bond Yields, and ETFs Representing U.S. Bonds, Gold, Oil and the Dollar More on Cramer’s Watch List Just as the new high list can offer investors ideas, so, too, can the new low list. While most of the rubble on this list centers around oil and gas, Cramer identified seven stocks he said are worth nibbling at, assuming investors can take a little more pain before they begin to turn around. First is Alcoa , a stock levered to China that ultimately won’t be. Second is Applied Materials , also suffering from a summer tech slowdown. Third ias Entergy , a great utility with a hefty 4.8% yield. Also catching Cramer’s eye is Loews , the conglomerate that’s now trading below book value due to its investment in Diamond Offshore . Also in the oil patch, Spectra Entergy , with a 5% yield, and Exxon Mobil , which also will likely trade lower, but is a buy with a yield over 4%. Finally, Cramer said Procter & Gamble is also attractive with a dividend yield over 4%. Executive Decision: Bob Ward For his "Executive Decision" segment, Cramer sat down with Bob Ward, president and CEO of Radius Health , a development-stage biotech with a stock that’s up 69% so far in 2015. Ward touted the addition of Dr. Lorraine A. Fitzpatrick as Radius’ chief medical officer as a big win for the company’s osteoporosis developments, noting that she will be giving the marquee presentation at an upcoming conference. Ward was also not worried about a recent denial for fast-track approval from the Food and Drug Administration. He said that fast-track applications are often denied, so this denial was not unexpected and a regular approval process suits Radius just fine. Finally, when asked about the company’s recent secondary offering of stock, Ward said Radius now has ample cash on hand for the continued development and launches of their upcoming pipeline. Radius is also seeking partners in some cases to also help offset costs where it can. Cramer said that Radius remains a great story and offers investors multiple ways to win. Must Read: Stronger Economic Growth Isn’t Improving the Employment Situation Lightning Round In the Lightning Round, Cramer was bullish on Enterprise Products Partners , Dave and Busters , Helen of Troy and MGM Resorts . Cramer was bearish on MiMedx Group . Executive Decision: J. Joseph Kim In his second "Executive Decision" segment, Cramer sat down with Dr. J. Joseph Kim, president and CEO of Inovio Pharmaceuticals , a stock that’s roared up 26% over the past two days on the news of a partnership with AstraZeneca that could yield up to $700 million in milestone payments for the company. Kim explained that Inovio’s immunotherapy platform generates T-cells in the body that act as "Navy Seals" to seek out and eliminate cancer cells in the body. What makes their platform unique is Inovio’s platform can target specific types of cancers better than anyone else. Kim continued by noting that the same synthetic DNA technology can also be applied to everything from Hepatitis-C and HIV to influenza and Ebola. When asked about their partnership, Kim said there were multiple suitors, but Inovio chose the best candidate that will allow them to grow and expand their pipeline even faster. Must Read: Why Aren’t We Getting Chip and PIN Credit Cards? 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.Click to view a price quote on INO. Click to research the Drugs industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — Not every falling stock is a bargain, Jim Cramer warned his Mad Money viewers Thursday. Some are falling knives that will only lead to bright red losses. Cramer explained that all throughout the market’s incredible run over the past few years, buying the dips has always been a winning strategy. Waiting for a stock you love to fall to a bargain price and then pulling the trigger has served investors well for a very long time. But with over 60 stocks in the Dow Jones Industrial Average making new lows and entire sectors faltering, that strategy may be a thing of the past. Must Read: 10 Stocks Billionaire John Paulson Loves The weakness that started in coal and quickly spread to iron ore and copper and the railroads has now claimed much of the oil patch, from the highly levered firms to the mid-tier companies and, most recently, even the major oil stocks. There’s weakness in the industrials and technology and, yes, even Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. But while the selling may be over in stocks like Walt Disney , which saw sharp declines earlier this week, for many stocks, trying to catch a bounce remains illusive. In fact, Cramer said the only market leader appears to be Netflix , and that stock isn’t taking anyone else along for the ride. That’s why Cramer told viewers to have some cash on hand and remain on the sidelines because it’s still not safe to go back into the water. Executive Decision: Brent Saunders For his "Executive Decision" segment, Cramer sat down with Brent Saunders, president and CEO of Allergan , the biotech that delivered a 3-cents-a-share earnings beat on better-than-expected revenue thanks to a terrific pipeline with over 70 products under development. Allergan is an AAP holding. Saunders first addressed a Department of Justice inquiry into Allergan for its pricing of generic drugs, a division which the company is now selling to Teva Pharmaceuticals . Saunders said the investigation is a non-issue as the price increases in three of its generic drugs were simply supply and demand issues. When asked about his plans for Allergan’s war chest of cash on hand, Saunders said Allergan is known for making bold acquisitions and he continues to tell his staff to be bold in their thinking. Allergan will always deploy its capital for long-term growth, he added. Finally, Saunders commented on Allergan’s new Alzheimer’s drug, which he said should be eligible for reimbursement from Medicare in the beginning of 2016. He also noted that Allergan’s efforts in creating a breakthrough for depression continues to go well, although it remains in the early stages. Must Read: Warren Buffett’s Top 10 Dividend Stocks Is It Disney’s Time? With the media stocks continuing their free fall, is it time to start picking up shares of Disney? Well, almost. Cramer said Disney remains the best integrated media stock in the universe, but when big institutions begin selling and adjusting their models for slightly lower growth, it can take at least two days for the selling to subside. While it’s true that Disney’s cable subscription business is beginning to slow, Cramer said it’s stupid to think that management doesn’t have a plan to combat the weakness. Disney’s sports content easily transitions to a streaming model after all, far better than any other media company’s content. That’s why Cramer said Disney remains a buy over the long term and why his "buy on day three of a selloff" rule still applies. Institutions will complete their selling tomorrow, he said, and that’s the time to start nibbling at the bottom. Executive Decision: Benno Dorer In his second "Executive Decision" segment, Cramer also sat down with Benno Dorer, the new CEO at Clorox , which reported a 7-cents-a-share earnings beat when it revealed earnings on Monday. Shares of Clorox are up 14.5% for the year, leading many of its rivals that have more international exposure. Dorer said his goal at Clorox is to continue profitable and consistent growth with products like Burt’s Bees, which is currently seeing 11% growth. He said Burt’s Bees in particular has lots of opportunities to gain more exposure, expand into new product categories and grow internationally. Burt’s Bees is also representative of Clorox’s focus on younger consumers, as it appeals to those looking for healthy and organic products. That’s why Clorox has partnered with Google to drive more of Clorox’s advertising online. Clorox also continues to monitor social media to identify flu outbreaks, helping to get disinfecting wipes to local retailers just when they’re most needed. Dorer cited wipes in particular, as a big product for Clorox, as consumers today want quick cleaning products. Finally, Dorer commented on Clorox’s exit from Venezuela, a country it was losing money in. He said that clearly leaving Venezuela was the right move for Clorox and shareholders are reaping the rewards as a result. Must Read: George Soros’ Top 5 Dividend Stock Picks for 2015 Lightning Round In the Lightning Round, Cramer was bullish on Voya Financial , Salesforce.com , Dynavax Technologies , Cheniere Energy Partners , Box , Andersons and Monster Beverage . Cramer was bearish on Cheniere Energy and Juno Therapeutics . Executive Decision: Juan Ramon Alaix In a third "Executive Decision" segment, Cramer sat down with Juan Ramon Alaix, CEO of Zoetis , the animal health company with a stock that’s up 10% since Cramer last checked in back in November. Zoetis last reported a 5-cents-a-share earnings beat. Alaix said the world needs technology and medicines in order to feed its growing population, and recent outbreaks in poultry and cattle are simply a part of that business that will remain a constant issue from now on. Alaix added Zoetis’ companion animal products continue to grow in popularity along with spending on pets in the U.S., which is at 15% a year. Alaix had positive things to say about activist investor Bill Ackman, who’s taken an interest in the company. Alaix said the relationship is only just beginning but so far has been a productive one. Must Read: Top 10 New Stocks to Trade Like Hedge Fund Renaissance Technologies 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.Click to view a price quote on AGN. Click to research the Drugs industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — When we try to hide from China we can get whacked upside the head, Jim Cramer told his Mad Money viewers Tuesday. The pain was excruciating for many stocks today, including some big U.S. names. Look at Action Alerts PLUS holding Apple’s three million-phone sales miss in the second quarter. It coincided with the peak of the Shanghai composite in mid-June and the freefall through the end of the month. The stock was down 3.21% at today’s close and off almost 15% from its record high in April. So Apple is not for the squeamish right now. There may be too many analysts recommending it and institutional investors may be overweighted in it. And, of course, Apple isn’t an island. The supplier companies riding its coattails — including Skyworks Solutions , NXP Semiconductors , Avago Technologies and Qorvo — have been pounded relentlessly, Cramer said. Must Read: 6 Startups Venture Capitalists Are Betting Will Be the Next Facebook CVS reported earnings today, showing pharmacy results that rocked, Cramer said. But results in other segments were poor now that the company doesn’t sell tobacco. Pessimistic market reaction to news out of CVS Health and even Disney – down over 6% in late trading — suggests the best places to hide in today’s market are in stocks with the highest risk — such as Netflix , up nearly 8% at the close. Executive Decision: Dusty McCoy In the "Executive Decision" segment, Cramer welcomed Brunswick CEO Dusty McCoy, whose company’s stock has been relatively muted this year and tumbled after reporting strong second-quarter earnings. Its brands include Attwood, Boston Whaler, Quicksilver, Mercury Racing and LifeFitness. Last week, BC reported earnings of $1.05 per share, beating estimates by 3 cents. McCoy said that there’s been a trend of the stock going down after second-quarter earnings are announced, and then seeing a bounceback after third-quarter numbers. That’s because most people see it as a primarily marine company. The used boat market has really come under a lot of supply pressure ever since the Great Recession, which is why McCoy is "comfortable" about the new boat market coming back. He has a positive outlook for the second half of the year. McCoy also discussed a new initiative that finds the company focused on the 75% of the population who don’t exercise regularly but want to be well and healthy. Brunswick is launching new business centered around walking treadmills and standing desks. Cramer’s Homework In the "Homework" segment Cramer said it was time to address some of the biotech questions from viewers that stumped him earlier this year. Cramer said Uniqure "seems like a good stock to me." Uniqure is a leading gene therapy developer whose lead drug has been approved in Europe for treating patients with LPLD, a rare genetic disease that can lead to pancreatitis. Shares are up 78% for the year having maintained a huge jump after meeting significant milestones earlier this year. La Jolla Pharmaceuticals is a small biotech focused on attacking life-threatening orphan diseases. Its signature drug treats patients with catecholamine-resistant hypertension, which can cause blood pressure to plummet to dangerous levels. Phase III results are expected by the end of next year. LJPC is up nearly 60% year to date, and more than 800% over the past two years. Cramer thinks most of the upside is already baked-in here. As for Pacira Pharmaceuticals , it’s all about its pain-management products, particularly post-surgical pain. It has a proprietary delivery technology — DepoFoam — that encapsulates addictive drugs to release them over time, minimizing some addictive effects. PCRX is down 30% year-over-year. The stock is certainly cheaper but with no real catalyst and potentially serious legal overhang, Cramer sees no reason to own it. Cramer discussed blood-treatment company Karyopharm Therapeutics . Its stock is in a speculative developmental stage with its lead product Selinexor, and has experienced a more-than 40% drop year to date after a secondary offering in January. It’s a good entry point for investors who are prepared for what might be a rocky road ahead. Progenics Pharmaceuticals announced today it’s entering a licensing agreement with Johns Hopkins for its anti-constipation drug for patients taking opioid painkillers. Cramer likes the stock but recommends waiting for a bigger pullback. Finally, Array BioPharma , another anti-cancer biotech. It has six phase II studies in the mix right now. The stock is down 30% over the last six weeks, but Cramer sees it as a speculative bargain at this level, as long as you’re willing to bear some pain and volatility. Must Read: 5 Foreign Stocks to Trade for Gains at Home Executive Decision: Robert Abernathy In his second "Executive Decision" segment, Cramer sat down with Robert Abernathy, chairman and CEO of Halyard Health , the medical supply company spun off from Kimberley Clark last year and an Action Alerts PLUS holding. The stock was down 11.8% today on disappointing results and guidance cut on fiscal year 2015. Abernathy said it had been a tough quarter. The company’s medical device business performed very well last quarter, while its surgical and infection prevention segment struggled. Those divisions make up 31% and 69% of sales, respectively. Abernathy said he plans to continue to separate the company from KMB and expand its shift toward medical devices. Innovation and a stronger second half could allow Halyard to improve in the second half of 2015, Abernathy said. Cramer said he screwed up on this one because Abernathy has missed twice. Lightning Round In the Lightning Round, Cramer was bullish on Paypal and AmerisourceBergen . Cramer was bearish on NutriSystem , LinkedIn and Canadian National Railway . Must Read: GE Saves $3.3 Billion With Cuts to Retirees’ Life, Health Benefits No Huddle Offense Cramer has been pondering recent breakups, specifically health care outfit Baxter International , and print company RR Donnelley , which plans to split off valuable assets. Today, Shire made a $30 billion hostile bid for blood-franchise drugmaker Baxalta , which Baxter spun off on July 1. Baxalta soared, and once the deal closes its owners will be up 18%. Meanwhile, RRD announced plans to split into three companies. Cramer said it makes a lot of sense because the financial communications services, printing business and multi-channel communications management company didn’t belong under one roof. Cramer said the print services business is an especially good opportunity for RRD to make strategic acquisitions and consolidate the industry. Cramer said BAX and RRD are proof that breaking up doesn’t always have to be hard to do. It can be easy, and lucrative, over time. 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.Click to view a price quote on BAX. Click to research the Health Services industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — There are two sides to every coin, and investors looked at the negative side, drawing conclusions about the U.S. economy based on events happening in commodities and in global markets, Jim Cramer told his Mad Money viewers Monday.Cramer noted that oil tumbled another 3.5% on the day and is threatening to take out the recent low of $43. The decline feels “pretty darn nasty,” Cramer said. Investors are selling, fearing Iran may add production to an already oversupplied market. That hit shares of Exxon Mobil , Chevron and Royal Dutch Shell . But while oil prices may be headed lower, is that such a bad thing? Cramer looked at the other side of the coin, arguing that a decline in oil prices is good for airlines, restaurants and, most important, consumers. Then there’s China, which recently issued “horrendous” manufacturing data, Cramer said. China’s stock market gives investors the impression the Chinese consumer is under pressure, even if that’s not really the case. This hurts companies including Action Alerts PLUS holdings Apple and General Motors as well as Diageo . But on the plus side, the weakness in China could hold the Federal Reserve back from hiking interest rates come September. Make no mistake about it, we don’t want the Chinese economy to “fall off a cliff,” but it’s a big benefit to the market if the Fed postpones the inevitable, Cramer said. Finally, he looked at Europe after the Greek stock market opened for trading after being closed for more than a month. The major index fell about 20%, but the recent manufacturing data for the eurozone were “surprisingly quite strong,” he said. Must Read: 5 Rocket Stocks to Buy for August Gains It wasn’t just Germany leading the way higher either — Spain, Italy and the Netherlands all contributed to the gains. If the European economy can improve, it will help spur more global economic growth. European growth will also help slow the decline in the euro, which will weaken the U.S. dollar, which has been weighing on U.S. multinational companies. Executive Decision: Richard Gelfond For his “Executive Decision” segment, Cramer sat down with Richard Gelfond, the CEO of Imax . The ultra-big movie screen company has over 950 theaters, with a 400-theater backlog. Imax reported in-line earnings and beat sales estimates, but the stock has been tied to the price action in China, Cramer said, with shares down 15% from the highs. Gelfond explained his company does do business in China, but referred to the country as more of an opportunity than a risk. Because of its business there, the company plans to a do an IPO in China for its China-based locations. Gelfond explained that the company plans to go public on the Hong Kong stock exchange, a far less volatile index than the Shanghai Composite. Less than one-third of the company’s business is done in China. He said that over the long term China has proved to be very good for both the company’s business and shares. Gelfond added that every year the company aims to open anywhere from 110 to 125 new theaters, driving earnings and revenue gains along with it. Ultimately, Imax shows blockbuster movies in the best out-of-house fashion, he concluded. Blue Buffalo vs. Freshpet Cramer has long been a big advocate of organic and natural food companies because Americans are eating better and becoming more health conscious. Most people love their pets so it’s no surprise that the natural and organic food play is transcending to the world of cats and dogs. So what about two companies that recently went public: Blue Buffalo and Freshpet ? Despite the industry growing 62% since 2004, Cramer said there are problems with each of these companies. Blue Buffalo, while enjoying earnings growth of 30%, has sales that are stalling quite dramatically. In the first quarter of 2014, sales growth was 38%, slowed to 22% by the fourth quarter of 2014 and climbed just 10% in the first quarter of 2015. On the other hand, Freshpet has wildly accelerating sales growth — 35% in the first quarter of 2014 and a whopping 40% in the first quarter of 2015. But it is not yet profitable. Also, after the stock’s big rally from its $15 IPO to $25, it’s back down to $16.43 after a lousy earnings report, weak guidance and a secondary offering. Freshpet reports earnings later this week. If it fails to make up ground on profits, investors will likely sell the stock. “This one’s got to start showing some profit,” Cramer said. So which stock should investors buy, the profitable company with slowing sales, or the unprofitable company with impressive sales? According to Cramer, neither. He said both stocks fall short when it comes to his risk parameters and there is just too much uncertainty under current circumstances. However, if the much larger Blue Buffalo acquired Freshpet, then it would be a different ballgame completely. Must Read: Why the Fed Is Losing Control of Interest Rates Executive Decision: Michael Carroll For his second “Executive Decision,” Cramer sat down with Michael Carroll, the CEO of real estate investment trust Brixmor Property Group . Brixmor boasts a 3.6% dividend yield, while more than 70% of its 550 shopping centers are anchored by a high-quality supermarket such as Kroger or Wal-Mart . “First off, we’re an organic growth story,” Carroll said. With new leases coming to market and less shopping center space to offer, the company has plenty of pricing power to drive revenue growth, he explained. When retailers bring in more foot traffic, it allows Brixmor to rent out even more retail space in the surrounding area or in the same complex. The company also has a large scale, so leases are signed quickly — sometimes in as little as 30 days — so development can start very soon, Carroll said. Plus, the company just financed its old debt at a much more favorable rate, he added. Lightning Round In the Lightning Round, Cramer was bullish on Marriott International , Ambarella , Exelixis , VeriFone and Blackhawk Network . Cramer was bearish on CenturyLink . Must Read: Short- and Long-Term Outlook for Apple Stock Cramer on the Fed Eight years ago to the day, Cramer tried to warn the Federal Reserve that subprime mortgages were an enormous systemic risk to the entire financial system. Cramer got his research and data from people close to the industry and from those who ran big firms on Wall Street — research and data the Fed obviously didn’t have access to. Unfortunately, Cramer failed in getting the Fed to change anything and the financial market fell to its knees, with firms going out of business and people losing their jobs left and right. Fortunately, former Fed chair Ben Bernanke was able to prevent the Great Recession from repeating the Great Depression and kept the U.S. economy from falling off the face of the earth. Fast-forward to 2015 and we have a U.S. economy that has improved mightily from the dark days of 2008-2009, but has left many consumers shaken, frugal and risk-averse. Even the banks are refraining from risk. This suppresses economic growth and although the economy has recovered, it’s probably not as strong as it may seem on the surface, Cramer acknowledged. So as the Fed looks to tighten its fiscal policies by raising interest rates, let’s hope that this time around it has the proper data and research to make sure the economy can truly handle its next set of moves, Cramer concluded. 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.Click to view a price quote on BRX.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — You need to remove all emotion from the investing equation, Jim Cramer announced to his Mad Money viewers Thursday. Investing is about doing your homework, using key metrics and cold, hard facts to make informed decisions. Case in point: Procter & Gamble , which shed 4% today after the company announced that it’s just not delivering on the metrics that matter. Cramer said in the consumer packaged good space the metric that matters is organic growth, sales that stem from genuine home-brewed innovation. On that metric, Procter delivered only 1% this quarter while rival Mondelez delivered 4% growth, which is why Mondelez shares popped a quick 5%. Then there’s Facebook , a stock Cramer owns for his charitable trust, Action Alerts PLUS, and one that was clobbered for a quick 1.8% today. Cramer called the sellers of Facebook "uninformed." Facebook could earn $3.75 a share in 2017 and is growing at 30% a year. That means that Cramer, along with most money managers, would be willing to pay twice the growth rate, or 60 times those 2017 earnings, which puts a price on Facebook at $225 a share for what today the "morons" were selling for $95 a share. That’s emotion, Cramer said, not investing. Even at half that growth rate, Facebook is easily worth $112 a share. Must Read: Airlines Not Scared Off by China’s Steep Stock Market Declines Speaking of emotion, let’s talk about Whole Foods Market , which fell by 11.6% today as same-store sales decelerated to just 1%. Rival Kroger has accelerating same-store sales of 5%. Yet, Whole Foods still trades at 19 times earnings, compared to Kroger at just 18 times earnings. "That makes no sense," Cramer concluded. Whole Foods deserved to fall, and should fall even more. Executive Decision: David DeWalt For his "Executive Decision" segment, Cramer spoke with David DeWalt, chairman and CEO of FireEye , the cybersecurity company with shares that have rallied 10% since Cramer last checked in back in May. DeWalt said FireEye had another strong quarter with top line growth of 57% and was able to diversify its offerings both in different industries and geographies this quarter. The best is yet to come, he said. When asked about competition from rivals like Palo Alto Networks , DeWalt explained the two companies have different offerings and really don’t compete head to head. He said there’s plenty of room for both companies to do well. DeWalt also offered some clarity on FireEye’s recent certification from the Department of Homeland Security. He said the certification, which FireEye was the first company to receive, offers it legal protection from breaches caused by acts of terror. DeWalt said this is important because as the cybersecurity industry grows, it needs things like cyber-insurance and strong partnerships with companies and government agencies. Finally, DeWalt commented on FireEye’s recent CFO departure by saying the outgoing CFO had more startup and growth experience, and now that FireEye is maturing it is bringing in new board members and leadership with the experience needed for this stage of the company’s growth. Hung Up on Cell Phones The hot money was betting big on cell phones going into 2015, Cramer told viewers, but now that China is slowing, that money wants out in a big way. Cramer said there are a lot of moving parts to the Chinese slowdown and subsequent stock market crash. Everything from iron to steel to autos and liquor and even cell phones is now being called into question and no one really knows the truth. When it comes to cellphones, it appears that sales are indeed slowing down in China for everyone except Apple , another Action Alerts PLUS holding. But even for Apple the question may be when, not if, sales begin to slow. That’s why sales of Qualcomm have slid 13% in 2015 and why Qorvo , another semiconductor maker, fell by 14% today alone, as investors try and figure out the truth. But Cramer said he’s sticking by his former recommendation to just own Apple for the long term and not trade it, even if the road in the short term may get a little bumpy going into 2016. Must Read: 3 Systems Software Stocks to Buy Executive Decision: David Weinberg In his second "Executive Decision" segment, Cramer welcomed David Weinberg, COO and CFO of Skechers USA , the sneaker and apparel maker that blew away the estimates with a 54-cents-a-share earnings beat on a 36% rise in revenue and a 12.9% increase in same-store sales. Shares of Skechers popped 16% on the news and are now up over 443% over the past two years. Weinberg said that Skechers’ strategy is going exceptionally well, with new products, distribution and advertising firing on all cylinders. He said Skechers’ celebrity endorsements are also helping to drive demand as every one they’ve signed genuinely uses and loves their products and the celebrities are recognized worldwide. Speaking of worldwide, Weinberg said Skechers continues to build its geographic footprint and is gaining new territories around the globe. When asked about China, he said that Skechers is still a small player in China, but it’s starting to grow and has seen no problems in that country so far. Cramer continues to be a big fan of a stock he says is still not expensive, even after today’s monster move to the upside. Lightning Round In the Lightning Round, Cramer was bullish on Fitbit , Texas Roadhouse , Denny’s and Kinder Morgan . Cramer was bearish on Garmin , Linn Energy and TAL International . Must Read: Broadcast Television Is Doing Better Than You Think Executive Decision: Chuck Bunch In a third "Executive Decision" segment, Cramer sat down with Chuck Bunch, CEO of PPG Industries , the chemicals and coatings maker that posted a 3-cents-a-share earnings beat. PPG also announced that Bunch will be retiring later this year. Bunch explained that while he will be stepping down from day-to-day operations, he will continue to be actively involved in PPG’s organic growth and acquisition strategies. When asked about its acquisition of Comex in Mexico, Bunch said PPG had no exposure in architectural coatings in Mexico and Comex provided them a huge growth opportunity that is only building in momentum. Turning to growth in China, Bunch said that while auto sales in China were excellent in the first quarter, they did slow in the second quarter, and the company now expects 3% to 4% growth in autos versus previous estimates between 6% and 7% growth. Bunch said that even without him, PPG will remain committed to its dividend, which was increased by 7% last quarter. 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.Click to view a price quote on FEYE. Click to research the Computer Software & Services industry.
Search Jim Cramer’s "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) — All roads lead to China, Jim Cramer told his Mad Money viewers Wednesday. If a company has business in China, the markets have declared it in bear market mode, Cramer continued, but if not, then its stock is a buy, buy, buy. This mindset was clearly on display with Apple , a stock which Cramer owns for his charitable trust, Action Alerts PLUS. Apple reiterated that China will be a great driver of growth for years to come, but when it also mentioned there will be some "speed bumps" in that growth, the markets took shares of Apple down 4%. A similar story rang true with United Technology , which cited softness in its Otis Elevator division in China, and with BEA Aerospace , which mentioned slowing private jet sales in China, news that sent shares tumbling 12%. Cramer said he’s not worried about Apple, as the markets always overreact to the downside. He told viewers to sit back and wait until the panic subsides. Must Read: 5 Stocks Warren Buffett Is Selling In the meantime, Cramer was bullish on domestic restaurants, supermarkets and retailers, including Domino’s Pizza , as well as homebuilders and biotechs. He also reiterated his buy on Google , another Action Alerts PLUS name that just so happens to not do any business in China. Executive Decision: Michael Rapino, CEO Live Nation For his "Executive Decision" segment, Cramer sat down with Michael Rapino, president and CEO of Live Nation Entertainment , the live music production company with 158 venues in six countries as well as four of the top five music festivals in the U.S. Rapino said that Live Nation is all about the live concert side of the business. He said his company now has a complete ecosystem that provides everything from ticket sales to food and beverages and even live streaming of shows to drive digital advertising dollars. In a world where artists make 90% of their income from playing live, Live Nation is becoming increasingly important. Rapino continued by noting that Live Nation will produce over 25,000 shows this year, including 66 music festivals around the globe. Thanks to technology, artists are becoming known worldwide, he said, leaving Live Nation with lots of room still to grow. Live Nation is both a business-to-business company, attracting artists and venues, but also a business-to-consumer company, thanks to its acquisition of TicketMaster. Rapino said they now have the ability to know their customers even better and offer more personalized services. Look Closer at These Techs Stocks like Ambarella , Fitbit and GoPro might seem ridiculously expensive at first glance, but when you take a closer look at the numbers, Cramer said these companies actually make a lot of sense. The GoPro bears argue that this commodity hardware maker will soon lose its edge to knock-off competition, while the bulls continue to have faith in the company’s ability to innovate with new products. Who’s right? Cramer said GoPro is about more than just hardware, it’s also an ecosystem that includes software, sharing and a passionate fan base that’s not likely to go away overnight. Given that GoPro is growing revenue by 71% year over year, Cramer said this stock is a buy going into the holiday season, even at 31 times earnings. Then there’s Ambarella, the brains behind GoPro and a whole lot more. Shares trade at 35 times earnings, but given the company’s 200% revenue growth this year, this is also a stock worth owning on any weakness. Finally, there’s Fitbit, the leading wearable fitness tracking company. There’s no doubt Fitbit is expensive at 61 times earnings, but the earnings estimates are likely too conservative, Cramer said, and here again, 200% revenue growth is hard to argue with. He’d be a buyer on any 5% to 10% pullback in the company’s shares.Must Read: George Soros’ Top 5 Dividend Stock Picks for 2015 Executive Decision: Jeff Marrazzo, CEO Spark Therapeutics In his second "Executive Decision" segment, Cramer also sat down with Jeff Marrazzo, co-founder and CEO of Spark Therapeutics , a development-stage biotech company working on gene therapies to cure some rare genetic diseases. Marrazzo explained that gene therapy aims to correct the underlying causes of certain diseases by delivering the necessary genes to patients that need then. Spark’s first drug, which targets the RPE65 gene that causes blindness in some children, is thus far showing miraculous results. Marrazzo said that RPE65 is one of over 200 genes that can cause blindness, which makes his company hopeful that their therapy can be applied to other genes as well. When asked about the explosion in gene therapy treatments, Marrazzo said the growth is two-fold. First, there is better genetic testing available to discover and understand which genes are in play and second, there are new technologies available to attack the problem genes. Spark is also exploring treatments for hemophilia and other diseases. Cramer said this company is capable of amazing things. Lightning Round In the Lightning Round, Cramer was bullish on Kroger and TherapeuticsMD . Cramer was bearish on Twenty-First Century Fox , Exact Sciences , Kandi Technologies , Murphy Oil and General Electric . Must Read: George Soros’ 4 Favorite High-Yield Dividend Stocks No Huddle Offense In his "No Huddle Offense" segment, Cramer reminded viewers to stop jumping the gun when it comes to earnings releases. Case in point, Chipotle Mexican Grill , a stock that Cramer warned viewers about earlier this week as shares had run up ahead of its earnings yesterday. Just as Cramer predicted, Chipotle’s results were immediately reported as a miss, sending shares down $50 within minutes of its release. But then midway through the company’s conference call, after management indicated that July sales were very strong and the pork shortage that has been saddling growth would be ending at many locations. This, plus other positive news, caused shares to swing back into the black, ultimate ending up over $52 a share by the close today. That’s a $100 swing from bottom to top, Cramer concluded, a move that was easily predicted and could have been had by all. 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.Click to view a price quote on KR. Click to research the Retail industry.