Archive for the ‘APC’ Category

Jim Cramer’s ‘Mad Money’ Recap: A Dazzling Market

Wednesday, July 16th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Sometimes there’s so much good happening that you can’t even comprehend it, Jim Cramer said on Mad Money Wednesday. You’re just dazzled by all the ways this market gives you to make you money. The gains in this market have been extraordinary, Cramer said. Why? It’s simple. Managements will not let up about their stocks being too cheap. They hate it and keep doing something about it. Look at Time Warner , which turned down an $80 billion takeover offer from 21st Century Fox . Time Warner stock jumped 17.1% on the news. Everyone knows the cable companies have been consolidating, Cramer said, creating turmoil among content providers who need heft for their products to compete among a smaller amount of cable operators that are increasingly powerful. This deal makes so much sense, Cramer said he’s kicking himself for only recommending Time Warner for its excellent fundamentals and buyback and not because it’s also a takeout candidate. With the market where it is, what plays are left in this sphere that can benefit from the need to consolidate to compete? Cramer says you want to look for aggressive buybacks, the value of entertainment and the importance of a simplified pure play. Look at CBS , Cramer said. Cheap still, good product, making itself easier to understand. Disney went down today because analysts thought it might bid for Time Warner. Cramer doesn’t think that’s going to happen. But buy Disney; it can’t be taken over and traded softly Wednesday, he said. Then there’s "Old Tech." Cramer has been pushing low-price, high-reward tech names like Intel for quite some time. Intel was up 9.2% at Wednesday’s close. Cramer would also recommend Cisco and Hewlett-Packard . Finally, there's the oil sector beginning with Whiting Petroleum , which bought Kodiak Oil & Gas . Cramer thinks we’re about to see a consolidation trend in the oil and gas group and said the best plays are EOG , Occidental Petroleum , Anadarko , Marathon and Pioneer Natural Resources . Seeking New Ideas Cramer said he's always searching for new ideas. That's why when he got the opportunity to host a panel with fund managers Lee Cooperman, Larry Robbins and Mike Novogratz at CNBC's Delivering Alpha conference, he kept his ears open. First on the list was a pick by Mike Novogratz, a contrarian investor who is running towards Brazil on the hopes that the country's failed government will be replaced soon by a pro-business administration. Novogratz said he liked Petrobras on the strength in oil drilling around the world. Also on the list, Thermo Fisher Scientific , a company that's always bringing value to shareholders, and National Oilwell Varco , another company that's benefiting from more oil drilling and is aggressively retiring stock. The three managers also gave the nod to Citigroup , which still trades below book value even as the company puts its troubles behind it. Finally, there was Flextronics , the contract assembler of electronic goods that trades at just nine times earnings and has pledged to retire 20% of its stock annually. Speculation Wednesday In a special "Speculation Wednesday," Cramer looked at Fiesta Restaurant Group , a stock that stumped him during an earlier show. Cramer said that it turns out Fiesta Group is a regional to national growth story that fits perfectly as a speculative play in your portfolio. Fiesta Group currently has two concepts, the Miami-based Pollo Tropical and the Texas-based Taco Cabana. Pollo Tropical is the company's shining star, with 6.3% same-store sales growth and plans to grow the chain by 17% a year. Taco Cabana is struggling at just 0.5% same-store comps, but the company has plans to turn that chain around with store remodeling and online ordering initiatives. Shares of Fiesta Group are up 25% over the past one year but are also down 15% so far in 2014. Trading at 29 times earnings with a 20% growth rate, Cramer said Fiesta Group isn't cheap, but with a good balance sheet and solid management, this little-known company is worth the speculating. Executive Decision: Michael Mears For his "Executive Decision" segment, Cramer spoke with Michael Mears, chairman, president and CEO of Magellan Midstream Partners , the master limited partnership with over 9,500 miles of pipelines that transports mainly refined products across the U.S. Shares of Magellan are up 33% so far this year. Mears said Magellan continues to grow in the Permian Basin as production there ramps higher. He said his company is in the sweet spot, with lots of capacity running from the Permian into the Gulf of Mexico. Magellan is also doing well in Eagle Ford shale because its new pipeline splitter in Corpus Christi, Texas, can take multiple products and separate them quickly to get them where they need to go. That pipeline, he noted, is 100% fee-based and is not tied to the price of oil. When asked about our country's biggest oil challenges, Mears said it's access to bigger markets. He said the current ban on crude exports limits how much can be produced as there's only so much refining capacity available. Cramer said Magellan is the great growth stock for this point in time. If the U.S. does allow crude exports, Magellan is the best-positioned player to make that happen quickly and with huge profits. Lightning Round In the Lightning Round, Cramer was bullish on Caterpillar and Kroger . Cramer was bearish on AOL , CYS Investments and Sprouts Farmers Market . Stock Photography In his inaugural edition of "Stock Photography," Cramer opined on photos sent in by viewers with the hashtag #stockpics, turning photos into sage advice. Cramer said he's still a fan of Sirius XM Radio and thinks the stock runs to $4 a share. He's also a fan of Pepsico and Halliburton , a company he thinks of as technology rather than oil service. Cramer is no fan of battery maker Polypore International , Arcos Dorados or McDonald's . 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. Chris Sahl in Boston contributed to this report. 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: Hunting for Bargains

Wednesday, July 9th, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- What's the secret to successful bargain hunting? Jim Cramer told his Mad Money viewers Wednesday that all they need to do is look at last quarter's winners. Cramer said Williams Companies was the top performer last quarter, and this oil and natural gas pipeline powerhouse is still a buy. Cramer was also bullish on the number two performer, Newfield Exploration , which is growing production at 28% a year. Other standouts from last quarter include Micron Technology and Sandisk . Cramer said both these stocks are buys on weakness. He was also bullish on Anadarko Petroleum , a stock he owns for his charitable trust, Action Alerts PLUS. Cramer told viewers to sell Iron Mountain because that story has played out, but he still likes Vertex Pharmaceuticals and Molson Coors as beer sales continue to rebound. Reinventing Alcoa Companies really can reinvent themselves, Cramer told viewers, sometimes even without a push from activist investors. That has certainly been the case with Alcoa , a stock that popped 5.7% today on another strong quarter, offering investors a 40% gain for the year. Cramer said Alcoa continues to reinvent itself: First by lowering costs, thanks to closing high cost plants and boosting earnings per share, but also by innovating, creating new metals and new uses for aluminum in everything from cars and aircraft to contraction and consumer products. Alcoa's transformation is only just beginning, Cramer concluded, which is why he continues to be a fan of the company and its CEO. Off the Charts In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang over the direction of the biotechs, namely Biogen Idec , Regeneron , Celgene and Gilead Sciences . Looking at Biogen Idec, Lang noted a series of higher highs and higher lows since the group bottomed in April. Lang felt this made the ideal place to buy given the stock's recent weakness. Shares have a ceiling of resistance at $334 a share but should see smooth sailing thereafter. Lang's research showed that Regeneron has heavy resistance at $315 a share but is showing strong positive trends. He felt there's plenty of upside in this stock up to $352 a share. As for Gilead, which just hit new highs, Lang noted an inverse head-and-shoulders pattern, one that has been historically very reliable. He felt the stock could see a 14% move higher to $102 as the MACD momentum indicator showed a bullish crossover in June. Lang did note the Williams oscillator showed an overbought condition, which made him recommend waiting for a pullback before buying. Finally, Lang felt Celgene was also a strong performer, with the Williams oscillator showing an overbought condition for the last six weeks in a row. Here, too, Lang felt waiting for a pullback would be prudent. Cramer said he agreed with Lang's research, although he felt the pullbacks may be very short-lived in these hot commodities. Executive Decision: David Pyott For his "Executive Decision" segment, Cramer sat down with David Pyott, chairman and CEO of Allergan , to discuss the takeover bid from Valeant Pharmaceuticals as well as the rest of Allergan's business. Pyott said Allergan has just begun a significant restructuring effort. He said investors wanted the company to do more to increase value and that's what it plans to do. He also noted Allergan's strong balance sheet, which the company plans on putting to use on a strategic acquisition to further bring value to shareholders. When asked what the criteria would be for such an acquisition, Pyott said the company must be specialized with differentiated technology and a growth profile that matches Allergan's. He said the company's tax benefits would not be a major factor, only the value the combined companies would create. As for the numerous efforts by Valeant to acquire Allergan, Pyott said Allergan seriously questions Valeant's long-term sustainability. He said the company has a pattern of heavy cost cutting that results in value destruction over the long term. In the case of Allergan, Valeant has proposed a 90% reduction in the company's research and development budget, something Pyott said is causing concerns among the physicians with whom the company works. Lightning Round In the Lightning Round, Cramer was bullish on SolarCity , Pfizer , AT&T and WhiteWave Foods . Cramer was bearish on Gogo . Executive Decision: Thomas Watjen In his second "Executive Decision" segment, Cramer sat down with Thomas Watjen, president and CEO of Unum Group , the insurer that Cramer called a slow and steady company growing at 8.5% a year but trades at just nine times earnings with a 1.6% dividend and a stock buyback to boot. Watjen said Unum provides shareholders with great franchises and has a history of returning its solid earnings to shareholders. Watjen said that while many fear the Affordable Care Act, in fact the new laws only deferred revenue. He said companies are back to doing business and there's still plenty of money to be made by offering accident and disability insurance to workers. Watjen noted Unum's business in the UK, as well as its legacy business, both continue to contribute to his company's success. Cramer said Unum offers investors lots of ways to win and he likes this slow but consistent 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. -- 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: How Stupid Can This Market Be?

Wednesday, May 21st, 2014

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Can the market honestly be this stupid? That was the question Jim Cramer asked on Mad Money Wednesday after the markets once again rallied on an uptick in bond interest rates. Cramer called this new relationship between bonds and stocks "moronic," saying higher interest rates are bad for consumers and bad for the markets, not the other way around. Yet, those who fear recession continue to think low interest rates will take us there and thus were celebrating on today's rise in rates. Just as the markets took its cues Tuesday from the weak sales of Staples and Dick's Sporting Goods , today, as if with amnesia, the markets celebrated strong earnings from Tiffany and Target . Cramer said there's simply no data suggesting that a recession, or even a slowdown, is imminent. Lowe's confirmed what Home Depot said earlier this week -- sales have been robust in May, and that's a good sign for all. Cramer said the bears will eventually be trampled by the bulls. Until then, more upside-down days like today are likely. Spectacular Shale In what has become one of the most amazing moves he's ever seen, Cramer said the North American energy revolution continues to deliver. Fueled by rising oil prices and perpetually rising production, the oil shale renaissance has been nothing less than spectacular. Oil shale drilling has become more profitable than even the industry could have imagined just two years ago, Cramer continued. While it may only cost $2.5 million to drill a conventional oil well, the $7.5 million price tag of a horizontal well is averaging $8.4 million in cash flows in just its first year alone. Cramer said EOG Resources and Anadarko Petroleum , a stock he owns for his charitable trust, Action Alerts PLUS, remain his two favorites among the group. Anadarko in particular, he noted, is worth at least $120 a share on its production growth alone. The company is also a ripe takeover target for larger drillers. Executive Decision: Matt Maloney For his "Executive Decision" segment, Cramer sat down with Matt Maloney, CEO of GrubHub , the online takeout service that came public six weeks ago. For its first quarter as a publicly traded company, GrubHub posted a five-cents-a-share earnings beat on a 50% jump in year-over-year revenue.Maloney explained that GrubHub has a two-sided model. The company has over 30,000 restaurants in 700 cities on its platform and makes a commission on every order placed. He said that for restaurant owners and diners alike GrubHub is replacing the paper takeout menu. While the company's corporate business is picking up steam, Maloney said the consumer market is far and away the biggest opportunity, which is why the company continues to focus on the dining and is constantly optimizing its app to meet customers needs. Cramer said the GrubHub story remains compelling. Now that the stock has fallen from 28% off its first-day highs, it's worth doing some homework. Executive Decision: Steve Hazy In his second "Executive Decision" segment, Cramer sat down with Steve Hazy, chairman and CEO of Air Lease Corporation , the aircraft leasing company that posted a seven-cents-a-share earnings beat on a 28% rise in revenue when it last reported on May 8. Shares of Air Lease currently trade at 14 times earnings. Hazy said it's an exciting time for the airline business, a business that doubles in capacity every 15 years. He said with many planes lasting 25 to 30 years, there's a huge replacement cycle afoot and Air Lease is right in the sweet spot. Hazy explained that decades ago only about 10% of airlines' planes were leased, but today that number is closer to 50%. With new aircraft costing upwards of $150 million, many airlines are finding leasing to be an affordable and predictable model. Air Lease buys planes in bulk from the manufacturers at deep discounts, Hazy explained, which makes his company as much a marketing and distribution company as it is a leasing company. He said Air Lease is well capitalized, has high profit margins and is the fastest growing in its industry. Cramer said he really liked the Air Lease story because the company is a niche player not many people know. Lightning Round In the Lightning Round, Cramer was bullish on Consolidated Edison , STMicroelectronics and General Electric . Cramer was bearish on SodaStream , Amazon.com , Protein Design Labs , Yandex , Chart Industries and Galena Biopharma . 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 Apple , Under Armour , Marathon Oil , General Electric and General Motors . Cramer asked "what's not to like?" about this well-diversified portfolio. The second portfolio's top holdings included Caterpillar , Hasbro , Mallinckrodt , Avago and Line Energy . Cramer said this portfolio was also properly diversified. The third portfolio had Gilead Sciences , Paychex , Oracle , GT Advanced Technologies and Boeing as its top five stocks. Cramer said he'd consider GT Advanced Technologies a speculative stock and therefore would bless this portfolio as diversified. The fourth portfolio's top stocks were JetBlue , Bank of America , Apple, GT Advanced Technologies and J.C. Penney . Cramer ended the round by also blessing this portfolio as diversified. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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With Rising Oil Prices, Three Energy Funds to Consider

Monday, April 14th, 2014

NEW YORK (TheStreet) -- Energy stocks have been rallying lately on rising oil prices. So far his year, energy mutual funds have returned 3.9%, while the S&P 500 has lost 1.2%, according to Morningstar. A barrel of West Texas Intermediate crude sells for $103, up from $88 a year ago. Can the energy stocks stay afloat? Some fund managers think so. "Oil prices will stay high because there is resurgence in demand from Europe and other areas," says Brian Hicks, portfolio manager of U.S. Global Investors Global Resources Fund. Despite their recent upturn, energy stocks remain cheap, portfolio managers say. While the price-earnings ratio of the S&P 500 climbed in recent years, energy multiples trailed. During the three years ended in 2013, energy funds returned 5.7% annually, compared with 16.2% for the S&P 500. Leading blue chips, such as Chevron and Exxon Mobil command price-to-earnings ratios of 13 or less, compared with 18 for the S&P 500. Fund portfolio managers say that the energy stocks lagged in recent years because investors worried about softening oil prices. According to energy bears, markets seemed poised to face oversupplies as U.S. shale production rose. At the same time, demand was likely to remain stagnant as global economies struggled. But the excess supplies never materialized because of production slowdowns in foreign fields, including the North Sea and Iran. As a result, oil prices stayed firm. To bet that demand will remain healthy, consider an energy fund. Top choices include Fidelity Select Energy Portfolio and Ivy Energy Fund. For a broader portfolio, consider U.S. Global Investors Global Resources, a natural-resources fund that holds mining and precious metals along with energy. Fidelity portfolio manager John Dowd holds a mix that includes fast-growing smaller companies as well as some lumbering giants that may be undervalued. During the past five years, the fund returned 16% annually, outperforming 87% of its peers. Dowd holds some companies that are growing rapidly by exploiting shale fields. He is particularly keen on developers that have reduced costs through trial and error. "The companies that have figured out how to improve productivity are reporting better earnings growth than the industry overall," he says. One holding is EOG Resources, which produces oil and gas in the Marcellus Shale of Pennsylvania and the Permian Basin in Texas. EOG's return on equity has improved as the well costs declined. Another holding is Anadarko Petroleum. Besides working in U.S. shale fields, the company has proved to be an efficient operator in deepwater. Ivy Energy aims to overweight companies that seem poised to record strong growth. During the past five years, the fund returned 15.3% annually, outperforming 73% of its peers. Portfolio manager David Ginther favors companies that own pipelines and storage systems that service the gas shale fields. He says demand will grow as more manufacturers shift to low-cost gas. "We will need more pipelines and more ways to process gas," he says. One holding is MarkWest Energy Partners, a master limited partnership that operates storage and processing facilities in the Marcellus Shale. Its dividend yield is 5.4%. U.S. Global Investors Global Resources has about half its assets in energy stocks. Hicks, the portfolio manager, favors exploration and production companies that can grow rapidly. He looks for businesses that have the most promising acreage and lowest costs. One holding is Continental Resources, a leading producer in the Bakken formation of North Dakota. "They should increase production at a rapid clip over the next three years," Hicks says. Another holding is oil services giant Halliburton. The company assists drillers that are using hydraulic fracturing to develop shale fields. At the time of publication, the author held no positions in any of the stocks mentioned. Follow @StanLuxenberg // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]> This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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Jim Cramer Asks Dan Dicker: Where’s the Next Anadarko?

Wednesday, April 9th, 2014
Jim Cramer takes RealMoney's Dan Dicker on a victory lap for his positive call on Anadarko and asks him if there's another sleeper energy name out there ready to unleash that kind of quick value.

Dan Dicker Explains His Long-Term Oil Trading Plans

Tuesday, April 8th, 2014
RealMoney's Dan Dicker reveals why he shifted from short-term trading to a mid- to longer-term frame of mind when transitioning from trading in the oil pits to buying and selling stock.

Anadarko Removes Market Uncertainty with $5.15 Billion Settlement

Friday, April 4th, 2014
Shares of Anadarko are up despite the company announcing a $5.15 billion settlement. Investors are satisfied that all the problems of the past are now rolled into one big payoff.

Dicker: Barron’s Is Wrong About $75 Oil, Here’s Why Prices Will Climb

Tuesday, April 1st, 2014
Senior contributor Dan Dicker explains that oil prices have been supported by the technology enhancements in "unconventional" oil plays, which will continue.

Cramer & Dicker: Oil Under $100 Is an Opportunity

Thursday, March 13th, 2014
Chinese concerns, increasing domestic stockpiles and a release of reserves from the SPR have conspired to bring oil below $100 a barrel.

American Retailers Report, Cramer’s Energy Plays

Tuesday, March 11th, 2014
It will be a busy day for traders watching the U.S. retail sector with Urban Outfitters, Dick's, American Eaglereporting earnings. Jonathan Marino reports from the Nasdaq Marketsite.