Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of Mad Money and also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV and most of these are ordinary investors trying to understand what’s going on in the market. Jim Cramer’s stock picks on his show is the starting point for many investments made by these folks.
Here are Jim Cramer’s stock picks on November 3rd:
Qualcomm (QCOM): CEO Paul Jacobs said next year will be terrific for sales and earnings of the semiconductor-maker. Cramer said this is the most optimistic he’s ever heard Jacobs. Qualcomm yields 1.5%, trades at 21.4 times earnings and has a $94.25 billion market cap. Ken Fisher of Fisher Asset Management increased his position by 13%.
EOG Resources (EOG): The oil company with the largest position in both the Bakken and Eagleford shales rallied 14 points over the last 2 days. Cramer said the company’s assets in the Bakken Shale alone was worth the stock price. EOG Resources has a $26.89 billion market cap and trades at 25 times earnings.
PPG Industries (PPG): A diversified chemical/industrial play has risen off good news from Europe and continues to be a favorite of Cramer’s. PPG yields 2.6%, trades at 12.9 times earnings and has a $13.69 billion market cap.
Cummins (CMI): This Cramer-favorite announced an increase in demand for engines to be used in vehicles to transport newfound oil in America’s recent shale discoveries. Cummins yields 1.5%, trades at 11.6 times earnings and has a $19.91 billion market cap.
IBM (IBM): IBM went down when it reported its quarter, however good news out of Europe has the stock $3 away from its 52-week high. IBM has a $220.76 billion market cap, trades at 14.6 times earnings and yields 1.6 percent. Louis Navellier of Navellier & Associates reduced his position by 2%.
Alcoa (AA): This aluminum-maker reported the worst quarter for industrial companies and even it came back to above where it traded when it reported, proving to Cramer that consistent good news out of Europe will immensely benefit the market. Alcoa has a $11.57 billion market cap, yields 1.1% and trades at 11.3 times earnings.
Chesapeake Energy (CHK): Cramer used Chesapeake as an example of how it doesn’t matter if a company reports a strong quarter, it will go down if there is bad news out of Europe. Chesapeake reported after hours and is already up 10%. Chesapeake has a $19.18 billion market cap, trades at 20 times earnings and yields 1.2%.
Annaly Capital (NLY): Cramer said Annaly Capital will continue to make money in the mortgage-market, despite anything Bernanke says regarding mortgage-backed securities, and would not abandon the stock. Annaly Capital yields 14.6%, trades at 8 times earnings and has a $15.86 billion market cap.
Duke Energy (DUK): Duke Energy will merge with Progress Energy before the end of the year. Duke has a lot of coal, which Cramer doesn‘t like. While Cramer likes ConEd (ED) better, Cramer thinks Duke Energy is good to own. Duke yields 4.8%, trades at 13.3 times earnings and has a $27.71 billion market cap.
Avon Products (AVP): Cramer attributes this direct-seller’s botched quarter to CEO Andrea Jung. It wasn’t the direct-selling business because Herbalife (HLF) reported a spectacular quarter and it wasn‘t because Avon sells cosmetics. Estee Lauder (EL) reported a monster quarter and rallied $18 today. Avon Products yields 5%, trades at 10.5 times earnings and has a $7.87 billion market cap.
Penn Virginia Resource (PVR): This coal-based master-limited partnership distributes 70% of its cash flow with a 7.8% yield. Cramer said the company was better than its rival Natural Resource Partners (NRP) and that the dividend was safe. Penn Virginia trades at 18.3 times earnings and has a $1.81 billion market cap.
Ford (F): Cramer said raw material costs and heavy European exposure aren‘t helping Ford‘s stock, on top of the fact that automotive stocks are sold when people fear an economic slowdown. In Ford’s defense, however, Cramer said General Motors (GM) has been a tough stock to own for the same reasons. Ford represents 3.79% of Ken Heebner’s portfolio .
Priceline.com (PCLN): Cramer thinks the travel-deal company’s business model is solid and its European business is strong. Cramer didn’t recommend selling the stock before the quarterly reporting. Priceline has a $25.47 billion market cap and trades at 35 times earnings.
Wynn Resorts (WYNN): Although Wynn has been generating huge profits in Macau, the stock has been declining while volume is increasing. This can usually be attributed to institutional selling. Wynn Resorts announced a special $5 dividend to be paid in December and Cramer thinks Steve Wynn wouldn’t have done that if things were bad. Wynn Resorts yields 1.4%, trades at 31 times earnings and has a $16.7 billion market cap.
Cisco Systems (CSCO): After years of underperformance, there are signs of large, institutional buying. With the 4th quarter being the season for tech stocks, Cramer recommends buying Cisco on weakness. Cisco yields 1.3%, trades at 15.3 times earnings and has a $97.86 billion market cap. Jeffrey Tannenbaum of Fir Tree owns over 13M shares.
Callaway Golf (ELY): Cramer said Callaway golf is a no-growth business and advised viewers not to buy it. Callaway Golf has a $368.35 million market cap.
Vodafone (VOD): Owning over 45% of Verizon Wireless (VZ), a caller asked Cramer would it be better to own Vodafone over Verizon. Cramer recommended owning Verizon if you didn’t want as much exposure to Europe’s woes. Vodafone has a $141.71 billion market cap, trades at 11.5 times earnings and yields 6.9%.
Mercer International (MERC): Cramer recommended going with Schweitzer Mauduit (SWM) or PPG Industries (PPG) for a paper company. Mercer International trades at 2.2 times trailing earnings and has a $304.83 million market cap.
Westport Innovations (WPRT): According to Cramer, this company that makes engines capable of running on natural gas is in the right place at the right time. Westport has a $1.34 billion market cap.
Advanced Micro Devices (AMD): Despite reporting a strong 3rd quarter, Cramer gave Advanced Micro a sell recommendation and preferred Intel (INTC) instead. Advanced Micro has a $3.96 billion market cap and trades at 3.9 times earnings.
AT&T (T): Cramer thinks AT&T is cheap and is worth owning whether or not it is allowed to buy T-Mobile, primarily because of its cash flow. Cramer’s charitable trust owns AT&T. AT&T yields 5.8%, has a $174.46 billion market cap and trades at 14.8 times earnings. George Soros of Soros Fund Management increased his position by 7%.
Ameren (AEE): Ameren, a utility holding company that yields 5%, is an old favorite of Cramer’s. Ameren has a $7.72 billion market cap and trades at 85.6 times earnings.
Cellcom (CEL): Cramer distrusts this Israeli telecom’s extremely high yield, which is currently 24.5%. Cellcom trades 6.5 times earnings and has a $2.16 billion market cap.
American Capital Agency (AGNC): To Cramer’s amazement, this financial REIT always manages to pay its 20% dividend yield. American Capital has a $4.94 billion market cap and trades at 3.9 times earnings.
