Includes: AZO, BLOX, COG, CRM, DLTR, DRI, FDX, FL, FSLR, GGP, GIS, ICE, LUV
Summary
- Cramer's game plan for the week.
- Salesforce.com's CEO interview.
- Reviewing performers of the last 10 years.
Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday, March 13.
Cramer is frustrated with the intra-day market volatility and swings. According to him, the worst part is that the swings are not even related to the U.S. economy, but a strong dollar. Most money managers have been caught off-guard with the currency move. It is not that they did not expect currency headwinds, but the speed at which the U.S. dollar gained strength was most surprising.
Cramer said that foreign companies with U.S. denominated debt will see most pain as they will be paying higher interest due to their weak local currency. One such company is Petrobras (NYSE:PBR) (NYSE:PBR.A), that is suffering due to a weak Brazilian Real. The lower price of oil is like salt to wounds which makes it even harder for the company to pay off its debt.
Cramer gave his game plan for the coming week.
Monday
Regeneron (NASDAQ:REGN): Cramer will be watching Regeneron on Monday as the company will be presenting data at a cardiology conference. Even if the data is good, the stock might open down on Monday due to the strength of the dollar.
Foot Locker (NYSE:FL): Foot Locker has its analyst meeting on Monday and Cramer will be watching what the company has to say about Nike (NYSE:NKE) which reports on Thursday.
Tuesday
Oracle (NYSE:ORCL): Cramer said that Oracle is going aggressive against its competitors. The company has a hefty business overseas, so investors should be prepared for estimate revisions based on the strong dollar. Oracle reports after market close on Tuesday.
Wednesday
FedEx (NYSE:FDX): "FedEx is one company that is as global as it gets. If there is one company that can tell the pulse of currency around the world, it's FedEx," said Cramer. He will be watching the conference call closely to know what the company has to say on the currency headwinds.
Other companies that Cramer will be watching over the week are General Mills (NYSE:GIS), Urban Outfitters (NASDAQ:URBN), Williams-Sonoma (NYSE:WSM) and Darden Restaurants (NYSE:DRI).
Cramer thinks that stocks might decline slightly based on the strong dollar, which will be an opportunity to buy. He said, "We are very concerned about the impact of the strong dollar on so many of our stocks, not just the exporters, so I say be careful and wait until stocks come to you, especially the domestic companies."
CEO interview - Salesforce.com (NYSE:CRM)
Cramer said that corrections in the market should be viewed as an opportunity to buy high quality stocks. One such stock is Salesforce.com, which has given a massive return since 2008. Cramer interviewed CEO Marc Benioff to hear more about the prospects of the company.
Benioff mentioned how Apple watch is shaping the future and that Salesforce is taking advantage of this opportunity by offering their app for the watch. He also spoke about artificial intelligence and data science helping people make critical decisions. Benioff talked about how Salesforce is helping companies interact with their customers better by providing analytics which helps them know what the customer is looking for.
Cramer thinks the company will be the fastest to reach $10B in revenue.
Profiting from a nasty winter
Cramer said that the winter season has given rise to the potholes problem. Very often, a car gets stuck in the pothole leading to repair costs. "Everybody needs a new rim, which means all these potholes aren't just a problem, they are an investment opportunity," said Cramer.
One angle to this is buying stocks of companies like Vulcan Materials (NYSE:VMC) and Martin Marietta, as both the companies are involved in making asphalt and cement that is used in repairing roads. However, road repairs are a small part of the overall business of both companies.
Another angle is to buy stock of AutoZone (NYSE:AZO) which is an auto-part retailer. As most cars would need new parts for their vehicles, companies like AutoZone come into play. AutoZone in their conference call last week said that the company saw a spike in sales from a rough winter. Cramer said that AutoZone is one of the most well-run businesses and is a shareholder friendly company based on their aggressive stock buyback over the years.
10 performers of the last 10 years
Cramer took a look at the 10 best stocks of the last 10 years. These stocks which had a good run still continue to make money because they are high quality companies.
2005: The best performer of the S&P 500 was Monster Beverage (NASDAQ:MNST) which was known as Hansen Natural back then. Cramer thinks the stock has more room to run.
2006: The best performer of 2006 was Intercontinental Exchange (NYSE:ICE), which was a commodities trading powerhouse. Cramer thinks the stock is still strong.
2007: First Solar (OTCQB:FLSR) was an innovative solar company in 2007, and had rallied massively. However, the stock has been laggard with the oil price near its lows. Cramer still thinks it's a good company, if not the best.
2008: Dollar Tree (NASDAQ:DLTR) was the best performer of 2008, and has gone up 4 times since then. Cramer thinks the company has a bright future.
2009: General Growth Properties (NYSE:GGP) did well in 2009, thanks to restructuring. XL Group (NYSE:XL) also did well with the recession, and is a steady player now.
2010: This was the year of Netflix (NASDAQ:NFLX). Cramer said that this cult stock just does not stop winning.
2011: Cabot Oil & Gas (NYSE:COG) was the top performer of the S&P 500 with the cheapest gas in the world. Lately it has been out of shape and Cramer wants investors to stay away from this stock.
2012: This was the year of Cramer's favorite stock RegeneronPharmaceuticals. Cramer said that the stock has more room to run. He also said that if Regeneron falters, Sanofi (NYSE:SNY) might buy the company outright.
2014: The biggest winner was Southwest Airlines (NYSE:LUV), mainly due to the price of oil. Cramer thinks that prices of jet fuel will stay down for some more time.
"Bottom-line, if this list teaches us anything, it's that when you find a truly incredible company, don't get scared away when its stock shoots through the roof," said Cramer. He added that the best run companies continue to give gains and create wealth for the shareholders.
Viewer calls taken by Cramer
Infoblox (NYSE:BLOX): "Those guys delivered while I did not think they would."
O'Reilly Automotive (NASDAQ:ORLY): Cramer thinks the stock has had a good run and is worthwhile to still hold it.
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