Jim Cramer’s Mad Money is one of the top watched TV shows on CNBC. Cramer is 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 bullish and bearish stock picks on his show is the starting point for many investments made by these folks.
Here are Jim Cramer stock picks on November 4th:
Priceline.com (PCLN): This online travel deal company reports their 3rd quarter Monday after the markets close. Cramer thinks this is one of the few high-flyers that haven’t been crimped. In order for the stock to continue flying high, Cramer said the market needs to see $1.42 billion in revenue along with proof that Europeans are still flying. Priceline trades at 35 times earnings and has a $25.55 billion market cap. Ken Heebner of Capital Growth Management reduced his position by 23%.
Amerigas (APU): This propane gas company recently acquired Energy Transfer Partners’ (ETP) propane gas unit, which Cramer thinks benefits Energy Transfer Partners more than it benefits Amerigas. Cramer said the propane business is quickly losing altitude and said other stocks like Inergy (NRGY), Ferrellgas Partners (FGP) and Suburban Propane (SPH) are also in the danger zone. Amerigas yields 6.6%, trades at 21.5 times earnings and has a $2.57 billion market cap.
Fossil (FOSL): Cramer said Fossil has a habit of going down dramatically after it reports its quarters, but climbs back higher by the end of the following quarter. Cramer thinks Fossil could make a decent trade if the stock gets hammered when it reports next week. Fossil trades at 24.2 times earnings and has a $6.15 billion market cap.
General Motors (GM): The auto-makers’ October sales were disappointing, but the company has good cash flow. General Motors has a $35.5 billion market cap and trades at 5.8 times earnings. Jim Chanos of Kynikos increased his position by 2%.
Ralph Lauren (RL): Cramer advised viewers to tread carefully with the retailer. Last quarter’s estimates were too low and Ralph Lauren reported a terrific quarter. As a result, Cramer feels expectations for this quarter may be too high. Ralph Lauren has a $14.55 billion market cap and trades 24.7 times earnings.
Cisco Systems (CSCO): Cisco has regained its momentum and Cramer thinks it could be worth owning in this season for rebounds in tech stocks. Cisco yields 1.3%, trades at 15.5 times earnings and has a $97.05 billion market cap. Jeffrey Tannenbaum of Fir Tree owns over 13M shares.
Green Mountain Coffee Roasters (GMCR): Cramer thinks Green Mountain’s quarterly reporting is a chance for the company to refute David Einhorn’s charges against it as well as to show shareholders how they’re going to respond to an increase in competitors when its patent for the K-Cup expires. Green Mountain Coffee Roasters trades at 66 times earnings and has a $10.82 billion market cap.
Both Kohls (KSS) and Nordstrom (JWN) report earnings on Thursday, but Cramer recommended paying attention to Macy’s (M), which reports on Monday. If Macy’s stock acts poorly after reporting a decent number, Cramer said sell retailers Kohls and Nordstrom before they report.
Disney (DIS): Cramer said Disney hasn’t been liked by analysts in the past two quarters because of beliefs that theme parks are too expensive for families. Cramer gave the stock a buy recommendation if it goes down $2-$3 after reporting.
D.R. Horton (DHI): According to Cramer, home-builders are at the bottom of the barrel; even below financials. Until the markets see positive numbers out of all 20 markets the Schiller index covers, Cramer wants to avoid home-builder stocks. D.R. Horton yields 1.3%, trades at 105 times earnings and has a $3.65 billion market cap.
KKR Financial (KFN): Cramer said KKR has good cash flow and their book value is honest. He also thinks the firm will have no problem covering the 8.8% dividend yield. KKR Financial trades at 3.9 times earnings and has a $1.46 billion market cap.
Whiting Petroleum (WLL): Whiting Petroleum’s production is up 7% and the popular belief among analysts is that Whiting doesn’t have prospects or cash flow, which Cramer thinks is wrong. However, with best-in-show stocks like EOG Resources (EOG) and Continental Resources (CLR), don’t fight the tape.
Starbucks (SBUX): Despite having competitors everywhere, the global coffee retailer has increased same-store-sales by 10% and revenues are up 40% over last year. On a damper day for the markets, the stock rallied $2.79 after their quarterly report. Starbucks yields 1.5%, trades at 27 times earnings and has a $32.97 billion market cap.
A caller asked Cramer if retailers HHGregg (HGG) or Best Buy (BBY) would be worth owning in the holiday season. Cramer said HHGregg may pay off, but told viewers to stay away from Best Buy. HHGregg has a $537.86 million market cap and trades at 11.6 times earnings. Best Buy yields 2.3%, trades at 9 times earnings and has a $9.89 billion market cap.
Allot Communications (ALLT): This Israeli tech company is Cramer‘s speculative pick and may be the way to play the next leg of the mobile internet tsunami. The stock has had a large run up, from $9 and change to $15 per share in a month’s time. Allot makes both the hardware and software that makes it possible for wireless carriers to get the most out of every dollar from data subscribers. The tech company received 60% of sales from Europe and saw a 25% increase from the quarter. Allot Communications has a $365.58 million market cap.
Frontier Communications (FTR): Cramer called Frontier a “wasting asset”. While they continue to pay the dividend, the company is shrinking and not growing. Frontier Communication yields 13.25%, trades at 35.8 times earnings and has a $5.63 billion market cap.
MIPS Technologies (MIPS): MIPS Technologies badly missed their quarter and Cramer said the stock deserves to be this low. Cramer advised selling the stock if it gets a pop in January. MIPS trades at 26.4 times earnings and has a $296.4 million market cap.
McGraw-Hill (MHP): Cramer gave McGraw Hill a buy recommendation, saying that investors could make money on the company’s split. McGraw-Hill will split into a separate textbook company and the index business (in partnership with the CME Group (CME)). McGraw-Hill yields 2.35%, trades at 15 times earnings and has a $12.47 billion market cap.
Iconix Brand Group (ICON): Cramer told a caller not to buy Iconix because of the stock’s recent run and the fact that licensing deals tend to work out better for the content creator than the licensor. Iconix Brand Group has a $1.33 billion market cap and trades at 11.6 times earnings.
Huron Consulting (HURN): Cramer said the stock has been red hot as of late and advised a viewer not to buy it because of the run up. Huron Consulting trades at 43.4 times earnings and has a $842.19 million market cap.
Windstream (WIN): This rural telecommunications provider’s stock fell 4% after reporting its quarterly results. Windstream missed earnings by $0.02 after shifting its business focus to broadband and business services. 70% of Windstream’s revenue will come from broadband and business services after their acquisition of Paetec. Windstream yields 8.4%, trades at 22 times earnings and has a $6.04 billion market cap.
Fusion-io (FIO): Fusion-io develops computer expansion cords and is a play on big data. Cramer recommended taking profits because the stock is up 90% in the last 30 days. VMWare (VMW) is a high-flyer with a reasonable valuation. Cramer recommended buying it or it’s parent company, EMC Corp (EMC), that is even less volatile. Fusion-io trades at 533 times earnings and has a $3.1 billion market cap.
Banner (BANR): This Washington-based regional bank is up 47% in the last 30 days so Cramer recommended selling shares and taking profits. Banner has a $290.23 million market cap.
Vivo Participacoes (VIV): This telecom company is the largest wireless operator in Brazil. Vivo pays a $2.31 annual dividend, but coverage looks tight. Cramer said the free cash flow can cover it for now, but with capital expenditures on the rise, he doesn‘t know how long it will last. Cramer doesn‘t understand why the risk would be worth taking on and recommended Verizon (VZ) or AT&T (T) instead.
Kodiak Oil & Gas (KOG): A viewer asked Cramer if Kodiak Oil & Gas, a small company operating in the Baaken shale, is a good buy. Cramer said Kodiak may be a takeover target at best, but when there is EOG Resources (EOG) and Continental Resources (CLR), investors should just buy the best and leave the rest. Kodiak Oil & Gas has a $1.49 billion market cap.
