Archive for the ‘AAPL’ Category

Bigger Role in iPhone 6 Seen for Avago Technologies

Friday, August 29th, 2014
Shares of Avago Technologies surged on Friday making it TheStreet's Move of the Day.

Jim Cramer’s ‘Mad Money’ Recap: 12 Stocks Even Better Than Google

Thursday, August 21st, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Investors who think Google has had a fabulous run over the past 10 years since its initial public offering need to think again, Jim Cramer said on Mad Money Thursday. Cramer highlighted a dozen stocks that have outperformed even Google. Make no mistake, Google is a fabulous stock, Cramer told viewers, which is why he owns it for his charitable trust, Action Alerts PLUS. But investors looking for real growth should've invested in Keurig Green Mountain or Monster Beverage , which were up 7,900% and 6,500% respectively over the past 10 years. Read More: 7 Stocks Warren Buffett Is Selling in 2014 Then there's Priceline , the Google of all things travel, up 6,200%, and Apple , another Action Alerts PLUS core holding, up 4,400%. Cramer said investors should just own names like these and forget about the circus that surrounds their earnings every 90 days. Next on the list was a cohort of biotech names, all of which have been Cramer faves for years. They include Alexion Pharmaceuticals , Regeneron , Celgene and Gilead Sciences . Cramer said he still recommends all of these companies. Rounding out the list is Netflix ,up 2,800%, along with Intuitive Surgical , Western Digital and Salesforce.com . Cramer said he'd buy these names as well with the exception of Intuitive Surgical, which is past its prime. Executive Decision: Marc Benioff For his "Executive Decision" segment, Cramer spoke with Marc Benioff, chairman and CEO of Salesforce.com, which just delivered an earnings beat of 1 cent a share. Benioff said that like Google, Salesforce just celebrated its 10th year as a public company. He said growth is accelerating, up 38% year over year, which led to $1.3 billion in revenue for the quarter. Benioff touted many successes during the quarter, including the company's marketing cloud powered by Exact Target, a partnership with Microsoft and strong sales in Europe. Read More: Housing Is Heating Up: Does This Change Fed's Thinking? When asked why Salesforce's stock is flat on the year, Benioff said he's not focused on the quarterly ups and down but rather on the running his company for the next 10 years. Cramer Cries 'Foul' When an analyst at Goldman Sachs downgraded the stock of semiconductor maker NXP Semiconductor , Cramer threw the red flag, calling the logic behind it ridiculous. Cramer said the same analyst first downgraded the company from buy to hold in January, missing a 50% move higher in the stock. But now it appears he's digging in his heels, doubling down on his earlier mistake, According to the analyst, NXP is in a low-margin, commodity business and the markets shouldn't value the company with a premium multiple. That would be true, Cramer argued, if NXP only sold commodity chips. In fact, that is only a small and declining portion of NXP's business. The analyst also didn't like NXP's exposure to the fickle mobile device market or the company's stock-based compensation plan. Here again Cramer argued that mobile devices is only a small portion of NXP's business and its stock compensation is more than made up for by its huge stock buyback program. With 50% gross margins and growing proprietary markets, Cramer said NXP is actually inexpensive, and the weakness created by these uninformed downgrades is certainly a buying opportunity. Emerge Energy In today's installment of his "Behind the Boom" series featuring America's oil and gas renaissance, Cramer spoke with Rick Shearer, CEO of Emerge Energy , the fracking sand provider that has seen its stock soar 600% since its IPO in May 2013. Shearer explained that the type of natural sand that Energe provides is the perfect material for 90% of the hydraulic fracture wells out there today. He said while ceramic materials are better in some cases, they cost $700 to $800 a ton as compared to just $60 to $65 a ton for sand. Shearer continued that Emerge is already doubling its capacity, bringing another five million tons online this year, making it the leading provider in the industry. The company is not stopping there, however, and already has another mine and plant in development. Emerge's biggest problem, though, is a lack of rail cars to ship the product, Shearer explained. He said while the company uses 4,600 rail cars today, nearly 8,000 will be needed to support the new mines being built. Read More: What to Expect From Jackson Hole: ‘Party On’ Cramer said Emerge has seen remarkable growth and he continues to like the company. Lightning Round In the Lightning Round, Cramer was bullish on Toll Brothers , Yelp , Royal Dutch Shell , Amazon.com , Canadian Pacific Railway and Union Pacific . Cramer was bearish on Chevron and Staples . No Huddle Offense In his "No Huddle Offense" segment, Cramer asked how a company can write a $17 billion check to the government and see its shares up 4% on the news. It's all about "normalized earnings power," Cramer explained, and that's how Bank of America , another AAP holding, will be valued now that its litigation is behind it. Read More: Trian Management Key in Dollar General’s War With Family Dollar Cramer said before the settlement with the U.S. government there was simply no way to know what Bank of America could earn, given the unknown legal fees and penalties. But now, he thinks the bank can earn $2 a share in 2016, possibly earlier, and that gives the stock the cheapest price/earnings ratio in the S&P 500. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Cramer’s ‘Mad Money’ Recap: Investing for the Long Term

Friday, August 15th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. This program last aired on Oct. 4, 2013. NEW YORK (TheStreet) -- If you're willing to put in the time and effort, anyone can make money in the stock market, Jim Cramer told his "Mad Money" TV show viewers as he dedicated the entire show to his principles of long-term investing. Cramer said that much of the conventional wisdom about long-term investing is totally bogus, but that doesn't mean investors can't make money -- it just means they must do it the right way. Read More: 4 Stocks Warren Buffett Is Selling in 2014 For many investors, the notion of "long-term investing" is an excuse for not paying attention and poor performance. Everyone must endure short-term pain in order to achieve long-term gain, right? Well, Cramer said short-term losses don't magically turn into long-term gains just by waiting a little longer, which is why long-term investing has nothing to do with excuses and everything to do with making boatloads of money for years and decades and even lifetimes. Long-term investing is not about owning stocks for a long time, Cramer continued, which is why he once again sounded off against the conventional notion of "buy and hold." Sometimes companies fall into secular decline and sometimes they screw up, he said, and in those cases, investors can't sit around and wait for a turnaround. Just ask the shareholders of BlackBerry and RadioShack how the "buy and hold" strategy is working. Saying that you're a long-term investor is not a license to be lazy. There are disciplines and rules that must be followed. Investors can't escape doing the homework and following the rules if they have any hopes of being successful. Get the Right Price Cramer's first lesson to investors: If you want to make money from stocks it's absolutely crucial that you buy them at the right price. Cramer said this notion is true whether you're a long-term or a short-term investor. If you pay too much for a stock, it's vastly more difficult to make money. Even the greatest of investment ideas will turn bad if you pay too much for the stock. Read More: 7 Stocks Jim Cramer Sees Ripe for Takeover So how will investors know when it's the right time to "pull the trigger" and buy? Cramer said there's never a perfect price for stocks, and those who claim to know when a stock has hit bottom are fooling themselve -- which is why he's always been an advocate of buying a stock in increments. Investors with a long-term horizon can afford to be patient, said Cramer. So for an investment of 400 shares of a $90 stock, he'd start by buying just 100 shares. If the stock fell to $85, he'd buy 100 more, and again at $81 and below $80. By using wide scales, investors can take advantage of the many selloffs the market has to offer and build a position at a price well below their initial entry points. What if the stock doesn't dip below $90? Cramer said that's a high-quality problem to have. Investors may not be able to get as many shares as they had hoped, but they're still making money on the ones they were able to buy at the good price. Cramer said he's not a fan of using smaller, strict scales, which dictate buying more as a stock falls every $1 to $2 a share. In today's market, stocks tend to be more volatile, and it would be a shame to miss out on that $8 decline because you bought all your shares just $3 lower. To use a baseball analogy, Cramer said that when it comes to buying stocks, investors need to keep the bat on their shoulder and wait for the right pitch. Knowing When to Sell Cramer's next lesson for long-term investing: Every stock comes with an expiration date. He said that knowing when to sell a stock is every bit as important as knowing when to buy it. Contrary to what the Hollywood movies may tell us, greed, is not good -- it's downright dangerous. Cramer said when you've got a big winner in your portfolio, you must take some profits -- period. Lock in the gains while you have them because winners can become losers in the blink of an eye. Read More: Bill Ackman Attacks 'Brazen' U.S. Conduct Over Fannie and Freddie Selling one's big winners may seem counter-intuitive but you have to at least trim your gains, said Cramer, if for no other reason than diversification. If a stock was 15% of your portfolio and then it doubled, guess what, it's now 30% of your holdings, and that's far too much for any one stock. Cramer reiterated his rule that no stock should ever account for more than 20% of a portfolio. Cramer also advocated his strategy of "playing with the house's money." He said by taking out your initial investment and leaving only the gains, investors can take more risks with what's left. That's the Holy Grail of investing, he concluded, because at that point you simply can't lose. How to Invest for Retirement A huge part of long-term investing is investing for retirement, said Cramer. But like all things, there's a right way and a wrong way to approach one's golden years. Cramer said that conventional wisdom says to simply park all your money into a 401(k) or IRA. While these types of accounts do have many tax advantages, unfortunately most 401(k)s offer options that, well, stink. That's why Cramer suggested investing in 401(k)s only to max out the company match, if there is one, and then into an IRA until those limits are reached. What should investors have in those IRAs? Cramer said he recommends five to 10 diversified stocks, including high-yielding names that are not master limited partnerships (MLPs) or real estate investment trusts (REITs). He said both MLPs and REITs are already tax-advantaged investments, thus putting them into IRAs invokes additional tax implications that can wipe out any gains. Instead, Cramer said he's looking for regular companies with great yields and long track records of raising their payouts year after year. Stocks for Every Portfolio Some winners are more lasting than others. That was Cramer's next lesson for investors. He said while no stock lasts forever, there are a select few secular growth names that should be in every portfolio. Cramer explained that most companies need a healthy economy in order to thrive, and that's called cyclical growth. But secular growers can deliver fantastic earnings even in a lousy economy and keep powering higher year after year. How can investors find these elusive winners? Cramer said by sticking with long-term trends, like the move towards healthy eating. That trend has worked well for names such as Hain Celestial , said Cramer, just as the smartphone revolution gave Apple years and years of unparalleled growth. Cramer said that investors can hold onto secular growers for as long as the story remains intact. That can be a very long time, he added. But investors need to realize that even the hottest of trends, like Apple, will eventually come to an end and investors need to be prepared for it when it comes. What's in a Name? Cramer's final thought for investors: Don't get hung up on nomenclature. He said there's nothing virtuous about being a "long-term" investor. In recent years, the notion of trading has become loaded with negativity, but in the end we're all here to make money. If that money happens to come in a hurry rather than taking the years you were expecting, take it! When you go to the bank, they don't ask whether you made your money short term or long term, they take it either way. If you need to take action with your investments on a more frequent basis, do so. Read More: 10 Stocks Carl Icahn Loves in 2014 Just always remember to stick with your discipline, do your homework and stay on top of your portfolio, he concluded. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Jim Cramer’s ‘Mad Money’ Recap: Controlling Your Destiny

Tuesday, August 12th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- What's the best way to reignite growth when growth gets hard to come by? Jim Cramer told his Mad Money TV show viewers Monday that takeovers are the natural place to look, which is why this market has them in spades. Cramer said today's deal by Kinder Morgan to bring all its master limited partnerships under one roof -- orchestrated by none other than Richard Kinder himself -- is just one example of spurring growth and rewarding shareholders with a quick 9% gain. Cramer said the new Kinder Morgan must be owned as the North American Energy revolution rages on. Read More: Warren Buffett’s Top 10 Dividend Stocks Who else should be looking to make acquisitions to spur growth? Cramer said Coca-Cola's growth has stalled, and he thinks the company should consider bring either Kraft Foods or Mondelez to get the growth engine started again. Then there's Darden Restaurants , the purveyors of Olive Garden and Red Lobster, and a company that's clearly lost its way. Cramer suggested Darden buy a red-hot IPO like Del Frisco's Restaurant Group or El Pollo Loco . Cramer said companies don't just need to rely on the economy for their growth. They can take control of their own destinies, like Richard Kinder, and get their growth back on track. Buy Priceline When it comes to Priceline.com , the analysts tend to have very short memories, Cramer told viewers. Every quarter the company reports its earnings and sees its shares get slammed. Then shortly thereafter, every quarter, they rebound sharply. Cramer said Priceline practices a philosophy he calls "UPOD," or under-promise, over-deliver. Every quarter the company blows away its earnings, but offers conservative guidance that analysts almost always perceive as "disappointing." But after speaking with management on the conference call, confidence is restored and shares immediately spike back to their historical levels. In today's session, investors could have caught a $60 swing from the time Priceline's earnings hit the tape until 80 minutes later when the conference call ended.Read More: 10 Stocks Carl Icahn Loves in 2014 Cramer said Priceline represents a real opportunity for investors four times a year, but it's not alone. He said Apple , a stock he owns for his charitable trust, Action Alerts PLUS, also practices "UPOD," as do Johnson & Johnson , Celgene and Starbucks . Boardwalk Empire Kinder Morgan isn't the only pipeline company making bold moves to take control of its destiny, Cramer told viewers. Boardwalk Pipeline Partners is another pipeline play that needs to be on investors' radar. Cramer explained that back in February Boardwalk did the unthinkable -- it cut its dividend by 80% in order to accelerate its own organic growth. That news was not received well by investors, however, and the stock lost 46% of its value in a single day. But cutting its distribution was exactly what the company needed, Cramer continued. Boardwalk already transports nearly 12% of America's natural gas supply, and has the ability to do a lot more thanks to its connections to all the major shale gas regions of our country. Cramer said Boardwalk has already spent $1.2 billion on smart acquisitions to help it grow and has major projects under way as well, including reversing the flow of its Ohio-to-Louisiana pipeline to send gas from the gas-rich Ohio shales down to Louisiana where power companies and manufacturers just can't get enough natural gas. Cramer said Boardwalk is small enough that all of these projects and acquisitions can still move the needle for the company's earnings, and it's small enough that it's a ripe takeover target for the likes of the new Kinder Morgan or other players in the gas space. Boardwalk gets 81% of its revenue from fixed-fee contracts, making it a company with excellent earnings visibility. Who's Merging? After today's Kinder Morgan restructuring news, could more consolidation be headed for the group? Cramer said he thinks so, and laid out a number of options for getting in on the actions. Cramer explained that with prices for new pipeline projects now tallying in the billions of dollars, he's not surprised to see innovators like Richard Kinder abandoning the master limited partnership, or MLP, structure he pioneered decades ago. By consolidating into larger entities, securing financing simply gets easier and the new non-MLP entities can better use their cash. Cramer said Enterprise Product Partners is his favorite in the group, behind the new Kinder Morgan and Boardwalk Pipeline Partners, mentioned earlier. Enterprise offers a 3.8% yield and has a solid balance sheet and management teem committed to growth. As an added benefit, the company was also awarded the first permit to export oil condensate, which will be a game-changer for the industry. Read More: 8 Stocks George Soros Is Buying in 2014 Cramer also said that Enter Transfer Equity , with its 2.7% yield, and Atlas Energy , yielding 4.2%, are also terrific opportunities to play the pipeline space, as more MLP to non-MLP conversions are likely. Lightning Round In the Lightning Round, Cramer was bullish on Arista Networks , Stonemor Partners , Energy Transfer Partners , Fiesta Restaurant Group , Trinity Industries and Gilead Sciences . Cramer was bearish on El Pollo Loco . 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 Eaton , SunTrust Banks , United Technologies , Boeing and General Motors . Cramer said this portfolio was heavy on aerospace and suggested selling United Technologies and adding a healthcare name. Read More: 4 Stocks Warren Buffett Is Selling in 2014 The second portfolio's top holdings included Kate Spade , Qualcomm , Under Armour , Sangamo Biosciences and Buffalo Wild Wings . Cramer said this portfolio had too much retail and needed to sell Kate Spade and add a stock like Boeing. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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U.S. Markets Close Flat; S&P 500 Near 2-Month Low

Wednesday, August 6th, 2014
U.S. markets ended Wednesday close to where they started the day, pretty much flat.

Big Swing Trade Ideas for July 28: Apple, Goldcorp, Tower Group

Monday, July 28th, 2014

NEW YORK (TheStreet) -- Today's top swing picks are Apple , Goldcorp and Tower Group . 1. First, let look Apple, the mega-computer company. Apple traded up 0.66% on Friday, closing at $97.67. Friday's range: $96.64 - $97.84 52-week range: $62.89 - $97.88 Friday's volume: 43,533,519 Three-month average volume: 61,167,300 Apple is a great stock to swing trade. It has great volume and moves a lot. FDA Rejects AcelRx Painkiller Dispensing Device Last week, Apple reported positive earnings, and as a result, the stock continues to rise. The day after the earnings report, the chart formed a doji gap up, which is known as a trader's best friend. The sentiment is clear that when a doji gap up appears -- a doji shows a struggle between the bulls and bears -- the gap up shows the winner, and in this case, the bulls won. Following the doji gap up, Friday's candlestick was a bullish engulfing signal, which also implies that the stock will continue to rise today. The stock will likely reach the $100 level in the near future. Look for an entry anywhere above the t-line, which is at $95.99. I'd set my stop at Friday's low of $96.64, maybe a few pennies below that. Target the $100 level to start, and then add to the position on the dips. The next targets are $104, $108 and $110. Trading Apple is as safe as the computer the company has created. Stay long until you see a confirmed sell signal or a close below the t-line. GM Isn’t Alone in the Race to the 200-Mile Electric Car 2. Now, let's look at miner Goldcorp. Goldcorp traded up 3.52% on Friday, closing at $28.20. Friday's range: $27.15 - $28.24 52-week range: $20.54 - $32.15 Friday's volume: 4,951,942 Three-month average volume: 4,523,520 The mining sector has been working well. Take a look at SPDR S&P Metals and Mining , an exchange-traded fund. The chart implies continued bullish sentiment, which adds to the appeal of Goldcorp's chart. On Friday, Goldcorp formed a large bullish engulfing signal. The candlestick engulfed the previous seven trading days and closed above the 20-day simple moving average and the t-line. The price is up 23% in the last 52 days, and has been consolidating for the last month, and so now let's watch for another breakout. The breakout level is at about $28.88. The current trading level is a strong resistance level, and so I'd keep my stop tight. I'd like an entry above the 20-day simple moving average, at $27.75, and I'd set my stop just below that, at about $27.70, which is the t-line. I would target the most recent highs, starting with around the $30 level, and then $31.90-ish, which is 6% and 13% higher respectively. Stay long until you see a confirmed sell signal or a close below the t-line. 3. Lastly, let look at Tower Group International, an insurance and reinsurance company. Tower Group had a big bullish day on Friday and traded up 8.21%, closing at $2.11 Friday's range: $1.95 - $2.20 52-week range: $1.62 - $22.30 Friday's volume: 1,640,504 Three-month average volume: 1,239,570 Tower Group looks good technically, as it is a rounded-bottom breakout and has 42% potential to the upside. The chart appeared on my scanner on Friday when it closed above the 50-day SMA. We need to see some follow-through today, and continued trading above the 50-day SMA to remain interested in this chart. The rounded-bottom breakout is an attempt at catching a bottom that has turned around. This stock hasn't been above the 50-day SMA with any conviction since August 2013. With that, I would set my stop just below the 50-day SMA at $2, and move my stop up as the price action moves up. This is the way to secure profits and mitigate losses. There is overhead resistance at $2.41, $2.70, $2.85 and again at the 200-day SMA. So, I would use these levels as my targets. Ideally, I would stay long and shoot for the 200-day simple moving average, which is roughly 42% gain to the upside. Stay long until you see a confirmed sell signal or a close below the t-line. How Walmart Can Get the Well-Off Customers It Needs to Grow Come see me at my second home and sign up for the two-week trial. At the time of publication, the author held no positions in any of the stocks mentioned. Follow @aarongallaher // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]> This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate APPLE INC (AAPL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share. Although AAPL's debt-to-equity ratio of 0.26 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Computers & Peripherals industry and the overall market, APPLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500. 44.56% is the gross profit margin for APPLE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.69% is above that of the industry average. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 54.18% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AAPL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. You can view the full analysis from the report here: AAPL Ratings Report

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Walmart, Family Dollar, Coach Top Cramer’s Twitter Q&A

Monday, July 28th, 2014
Jim Cramer tackles viewers' Twitter questions from the floor of the New York Stock Exchange.








Jim Cramer’s ‘Mad Money’ Recap: A Week of Market Madness

Wednesday, July 23rd, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- There are four weeks a year when the markets become a mad house, Jim Cramer said Tuesday on Mad Money. This week, the height of earnings season, is one of those weeks. Cramer once again urged investors to steer clear of stocks during earnings week because they're up against terrible odds and the market's reactions to news can be totally out of sync with reality. Case in point: the battleground that is Herbalife . Cramer said the tennis match between activist investor Bill Ackman and company management has become totally unpredictable, with shares soaring 25% on "news" Ackman had thought would sink the company. Cramer said investors need to avoid battlegrounds like Herbalife at all costs. Then there's Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. Many investors are already "disappointed" with iPhone sales, but does that truly reflect the company's prospects with new, possible bigger, phones on the horizon, plus a new deal with IBM and potential wearable devices? And what do we make of General Electric , another Action Alerts PLUS stock? Company management proclaimed everything was great but digging into the details saw revenue misses in several key areas. So while the markets are running around guessing, second-guessing and reformulating their thoughts on earnings news, Cramer said home gamers are better off sitting on the sidelines and waiting for calmer seas next week. Good Taste vs. Good for You A battle is raging between what tastes good versus what's good for you. Nowhere can the rebellion be more clearly seen than between Chipotle Mexican Grill and its former parent, McDonald's . Cramer said the stark contrast in these two companies' earnings couldn't be more clear, with McDonald's suffering from not enough customers while Chipotle struggles to get its too many customers through its lines faster. McDonald's earnings were abysmal, Cramer said. Consumers are rebelling against cheap, non-organic food, even though that food has been engineered to be loved by all. This is not only a trend in the U.S. but is now spreading worldwide, he continued. Meanwhile, Chipotle, whose shares popped 11% on its huge 17% increase in same-store sales, appears to be resonating even more with its core audience of younger people. Even with food that's more expensive than McDonald's, Chipotle can barely keep up with demand. Cramer said this rebellion can also be seen in the earnings of Coca-Cola as consumers are increasingly eschewing sugary drinks for water and healthier alternatives. This move is still in its infancy, Cramer concluded, which is why he expects Chipotle to outperform McDonald's for many years to come. Executive Decision: Patrick Doyle For his "Executive Decision" segment, Cramer spoke with Patrick Doyle, president and CEO of Domino's Pizza , which saw its shares soar 3.7% in today's session as the company posted a 2-cents-a-share earnings beat on a 5.4% increase in U.S. same-store sales and a 7.7% increase in its international same-store sales. Shares of Domino's are up 715% since Cramer first recommended the company four and a half years ago. Doyle said Domino's is seeing a nice uptick in global momentum and has many things now pulling in its favor. He said the company's new iPad app has been very well received and Domino's is seeing a slow decline in the prices for corn, wheat and other commodities. When asked whether Pizza Hut, owned by Yum! Brands , is falling apart, Doyle said that the trend has been that the big guys are taking market share from the little guys, but he thinks the Yum! has the ability to still turn around Pizza Hut and make it more competitive. Turning to the company's social media initiatives, Doyle said that Domino's advertises where the eyeballs are, and that includes Facebook and Twitter.  He said unlike with other advertising, his company knows exactly what the return on investment is with these channels and it's working well. Cramer said that after lagging earlier this year, Domino's shares are "rested and ready" to resume their march higher. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the charts of the three biggest winners so far this quarter, according to Fitzpatrick, Kinder Morgan Energy Partners , Morgan Stanley and Honeywell . After peaking in April 2013, Kinder Morgan spent a long time trending lower, finally bottoming this past March before beginning to rebound. Since then, however, it has seen a higher low in May, crossed above its 200-day moving average and then most recently, saw its 50-day moving average cross over the 200-day. All these are bullish signs as Kinder has gone from hated to loved once again. Honeywell has been trading sideways for the past five months, Fitzpatrick noted, building a "high base" that is now the floor for its next uptrend. He noted that with the volume remaining low, it's clear the big holders of the stock are sticking with Honeywell. If shares can cross $100, the sky's the limit. Then there's Morgan Stanley, with a chart very similar to that of Honeywell. Shares have been consolidating, but now appear ready for another leg higher, with its 200-day moving average being the floor of support. Cramer said he agreed with Fitzpatrick and his analysis. All three of these stocks are looking very bullish. Lightning Round In the Lightning Round, Cramer was bullish on Huntington Bancshares , Entertainment Properties Trust , Activision Blizzard , Take-Two Interactive , Six Flags , Cedar Fair , Government Properties Income Trust and Petrobras . Cramer was bearish on W. P. Carey . Executive Decision: Michael Roth In his second "Executive Decision" segment, Cramer sat down with Michael Roth, chairman and CEO of Interpublic Group , the world's fourth-largest advertising agency, to discuss the state of the advertising industry. Roth confirmed that this quarter digital advertising surpassed network television spending for the first time. He said digital advertising makes it easier to measure a company's return on investment, but that doesn't mean that TV is not still a powerful force to be reckoned with. Diving deeper into digital advertising, Roth said digital is now embedded in everything the company does, with a large part of their advertising spend heading to Facebook . Where Interpublic shines, he noted, is in delivering fully integrated, global offerings to clients. When asked about the failed merger between the industry's largest players, Roth said that all eyes have been on Interpublic as a possible takeover candidate, but its focus remains clear -- build shareholder value. Interpublic doesn't need a merger, he said, but it will certainly consider any attractive offer that's presented. Cramer continues his recommendation of Interpublic Group. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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

Friday, July 18th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. A version of this program last aired Dec. 23, 2013. NEW YORK (TheStreet) -- With all of the global uncertainty, earnings alone will not be enough to guide you through next week's trading, Jim Cramer told his Mad Money TV show viewers Friday as he laid out his game plan. Cramer said that all eyes need to be on the U.S. and Russia and whether global uncertainties will send investors fleeing to safety or let them continue the rally that's already in progress. That said, Cramer will be watching Halliburton on Monday, saying that he'd be a buyer on any weekend weakness. He was less optimistic about Chipotle Mexican Grill and Netflix , both of which have run up ahead of their quarterly results. Tuesday brings Apple , a stock Cramer owns for his charitable trust, Action Alerts PLUS. When it comes to Apple, Cramer said to just "own it" for the long term. Next, on Wednesday, it's Boeing reporting. Cramer said he'd be a buyer on weakness in Boeing as this stock will certainly be higher two months from now. Also on Wednesday is Facebook , another stock Cramer said he'd just own for the long term. Then, on Thursday, it's American Airlines , a stock Cramer said is cheap, along with both Ford and General Motors reporting. Cramer said he prefers GM, another Action Alerts PLUS position, over Ford, but noted that both should report good numbers. Also Thursday, Caterpillar reports. Cramer said he's bullish on Caterpillar as well. Rounding out the week will be durable goods orders on Friday. Cramer said he's using this number to begin "Fed watch" to try and determine when the Federal Reserve is likely to begin raising interest rates. Investing Like a Pro Individual investors can not only invest like the pros, they can beat them, too, Cramer said, detailing the methods to his madness. Cramer said it doesn't take a lot of effort to invest one's own money, just a few hours a week for research, the "homework," as he so often calls it. But the results from that research will bear far more fruit than blindly dumping money into an index fund or, worse, a bond fund in a time of historically low interest rates. Where can investors find their research? Fortunately, it's practically everywhere, said Cramer, on sites like CNBC.com, TheStreet.com, Yahoo! Finance and others, as well as on the Web sites of every publicly traded company. When starting out, Cramer recommended using the 52-week high list. The new highs list shows stocks with true momentum, said Cramer, especially in a bad market. But that does not mean that investors should just blindly chase every stock on that list. Instead, research will still need to be done to separate the truly great stocks from the ones that are just lucky. After researching the new high list and picking out the true winners, Cramer said the next step is determining when to buy them. He said a pullback of at least 5% is usually a good entry point, especially when that pullback is caused by general market weakness. You should only buy stocks that have pulled back from the new high list if you're confident they'll make a comeback, he continued. Cramer said he always advises adding to a position on weakness, then trimming those positions into strength. A broad, market-wide sell off provides an excellent entry point for the former, he concluded. Look for the Insiders Cramer's next trick for investors, look for stocks with strong insider buying. Company executives are no dummies, explained Cramer. If they're buying their company's stock, then maybe you should, too.  Cramer said executives can sell company stock for all sorts of reasons. But buying, especially in large quantities, should be a clear signal that execs are highly confident in their outlook and are putting their own money on the line to prove it. This is especially true of stocks at or near the 52-week high list, said Cramer. If a stock is already at sky-high valuations, and insiders are still buying, that is a powerful endorsement. There is nothing more telling than when an insider backs up the truck for his own stock when its sitting at a high. Avoid paying too much attention to small, token purchases, Cramer cautioned. Look for only large, meaningful insider purchases. Sometimes execs want to make it look like they have confidence in their stocks. But when they actually do have conviction, that's the time to follow their lead. Short Interest Continuing on the insider buying theme, Cramer's next trick is to look for a special type of insider buying, one that involves a stock with a huge short interest. Cramer explained that short-sellers must have a lot of conviction in order to bet that a stock is heading lower. The downside of shorting a stock is infinite, while going long on a stock limits losses at zero. Short-sellers also risk a short squeeze, a bit of good news about a company that sends shares high enough that those short the stock are forced to cover their positions. The dynamics of short-selling makes insider buying all the more interesting, said Cramer. When lots of people are betting against a company and an executive starts buying, Cramer said that's like drawing a line in the sand and saying, "Our stock goes this low and no lower." Cramer said any time investors see a large short interest coupled with meaningful, not token, insider buying, they should perk up and start the research immediately. While short-sellers are smart people, they often know less than those in charge of running the company, noted Cramer. Cramer offered a caveat to betting against the short-sellers, however: Avoid hot-button stocks where the short interest is simply too large to overcome. At the height of the financial crisis in 2008, Cramer noted that short-sellers were able to overrun many bank stocks, thanks in part to the removal of protections like the uptick rule, which helped to slow these so-called "bear raids."  Homegamers can still find opportunities where the short-sellers have overreached, especially in stocks that pay a solid dividend. This often helps to deter short sellers which must pay the dividend on the shares they've borrowed, concluded Cramer. How to Trade Cramer's next tip for investors: Learn how to trade. He said learning how to trade stocks on a shorter-term basis will make homegamers better investors overall, as it will teach them many valuable lessons, especially in markets with large, volatile swings in every direction. Cramer said his normal investment strategy would dictate that if an investor wants to purchase 300 shares of a company, buy them in increments of 100 shares at a time over a period of weeks or months using broad-based selloffs as cues for the purchases. However, a trading strategy is a little different, said Cramer. Trading around a core position dictates that if an investor owns 300 shares, he or she sells 50 of them anytime the stock moves higher by 3%. Then as shares retreat by 3%, an investor can buy them back on the cheap. Cramer said that trading in smaller increments may not seem like much, but over time the profits can add up quickly. In today's markets, where stocks can soar one day and be thrown out with the bath water the next, it likely won't take long before homegamers begin to see their trading strategies pay off. When to Sell Cramer's last trick for investors involved the critical question of when to sell a hot stock. He said there's certainly a lot of money to be made by owning a hot momentum stock, but investors have to know when it's time to leave the table or risk losing it all. Such was the case with high-fliers including Chipotle and Intuitive Surgical , two long-time Cramer faves that fell from grace in spectacular fashion. So how can investors tell when a momentum stock has peaked? Cramer said one thing they can look for is the analyst coverage. For smaller, more speculative stocks, Cramer said the rule of thumb is that when a stock has a half dozen or so analysts covering it, the stock will begin to peter out because it's become too well known.  This was the case with Hansen Natural (HANS), one of the hottest stocks between 2004 and the first half of 2006, noted Cramer. The whole run higher, the skeptics were warning that the energy drink maker's momentum would fade. But with analysts still initiating coverage and touting the stock, it continued its run higher. That was until May 10, 2006, recalled Cramer, when Hansen stock split five-for-one, but was also picked up by Goldman Sachs, the fourth analyst to begin coverage. After Goldman brought Hansen into the spotlight, Cramer said the stock immediately started to cool off because it had hit that critical mass of analyst coverage. Small momentum stocks are worth owning, said Cramer,. But when investors see analysts jumping on the bandwagon, it's time to get out. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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Ukraine, Middle East and Earnings Set the Stage for the Week Ahead

Friday, July 18th, 2014
The Malaysia Airlines crisis is escalating tensions between Russia and Ukraine, and continued conflict in Israel and Gaza will dominate headlines in the Week Ahead.