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Sunday, January 22, 2012

Jim Cramer's Lightning Round stock picks & Mad Money Fund Hot Stocks to Buy !

Lightning Round session of Jim Cramer's Mad Money TV Program, Friday, January 20.

Bullish Calls:

American Tower (AMT): "I like that stock so much. I've always been behind it... that is just one smoking good company."
Freeport McMoRan (FCX): "I like Freeport (better than Alcoa)."
American Express (AXP): "If you want to go with travel, I'd go with AXP... it was a really good quarter. The stock is down $1. I'd buy that one."
Trimble Navigation (TRMB): "That is a good company."

Bearish Calls:

Alcoa (AA): "Not a lot of upside...but if the world economy comes back...I'll buy Alcoa." (CTRP): "Way too risky."
Sprint (S): "Listen, the bonds are okay. I don't like the common stock. It's not going higher. They need too much money."
17 Things To Watch This Week: Haliburton (HAL), Texas Instruments (TXN), Dupont (DD), Kimberly Clark (KMB), McDonald's (MCD), Apple (AAPL), Conoco-Phillips (COP), Abbott Labs (ABT), Boeing (BA), Occidental Petroleum (OXP), Caterpillar (CAT), Nucor (NUE), 3M (MMM), Starbucks (SBUX), Honeywell (HON), Altria (MO), Procter&Gamble (PG) other stocks mentioned: American Express (AXP), Canon (CAJ), Schlumberger (SLB)


Haliburton (HAL) has disappointed in the past, and Cramer thinks it will be in danger of disappointing again, because it is too levered to natural gas. In spite of Schlumberger's (SLB) strong quarter, the oil and gas sector might suffer if HAL fails to deliver.

Texas Instruments (TXN) has become a darling of the new cycle in semis, but the stock has moved too much ahead of the quarter. Cramer would beware of holding semi stocks into TXN's report.


Dupont (DD) may be headed for a fantastic 2012 since what was ailing Dupont - autos and housing - is now turning around.

Kimberly Clark (KMB) could sell off because it is high, but it has a strong dividend so is worth buying low.

McDonald's (MCD) has the same issue as KMB; it might drop after a steady rise but is a buy on a decline.

Apple (AAPL) has run up ahead of the quarter on its groundbreaking news about its move into the textbook space and its iPhone 4, but Cramer thinks the company will report a blowout quarter. Since its last earnings were disappointing, some analysts have conservative estimates. Cramer says he can't recall seeing a company perform as well as Apple has in the last 30 days, and he is confident that the stock will deliver

Top stocks to buy now ! ( Mad Money Fund Picks )
Chimera Investment Corp. (CIM) is a diversified REIT with a $2.86 billion market cap. It pays a 15.83% dividend yield. The company's EPS grew 12.76% per annum over the last five years and is expected to increase by 2.75% per annum over the next five. CIM has a long term debt to equity ratio of 0.59 and has returned 10.76% year-to-date. It recently traded at $2.78 a share.

Frontier Communications Corp. (FTR) is a domestic telecom services company with a $4.93 billion market cap. It pays a 15.15% dividend yield. The company's EPS -16.13% per annum over the last five years and is expected to increase by 6.07% per annum over the next five. FTR has a long term debt to equity ratio of 1.71 and has returned -3.88% year-to-date. It recently traded at $4.95 a share.

Quicksilver Resources Inc

Specializing in the exploration, production and sale of natural gas and oil in the United States and Canada, Texas-based Quicksilver Resources Inc. has nearly 25 years of experience in the energy sector. The company has a market cap of $938.16 million, and is currently trading near the bottom of its 52-week range of $5.48 to $15.98. Now around $5.50, the company is expecting a share price increase this year, with its one-year target of $8.75 representing an increase of nearly 60%.

Although some indicators (such as its levered free cash flow of -441.01 million) point to Quicksilver as a questionable investment, a number of analysts are starting to see the potential of this small-cap. With several new properties to develop, interest in KWK is rising, with trade volume increasing by 10% over the past 10 days. The Quicksilver share price has pushed below its Price/Book valuation and is trading well below its moving averages, leading many to believe it is getting ready to climb.

Southwestern Energy Co

Southwestern Energy is another company that looks prepared for a breakout. This $10.31 billion Texas company specializes on oil and natural gas reserves in the United States. At $29.68, the company is trading near the bottom of its $28.72 to $49.25 range, although it is aiming at a one-year estimate target of $41.54. Like Quicksilver, SWN is trading below both its 50-day ($33.81) and its 200-day ($38.27) moving averages.

At -532.31 million in levered free cash flow, the company is stretched thin, but back itself up with a return on assets of 10.10% and a return on equity of 19.38%. The company's trailing P/E of 16.49 and its forward P/E of 16.13 are virtually identical, suggesting stability going forward. In spite of the projections, it is difficult to get behind a cash-tight oil & gas when there is an overabundance of natural gas reserves. Holding on any existing positions is probably best at the moment, as investors wait to see if the share price can resume itself and start climbing again.

Anadarko Petroleum Corp

Anadarko Petroleum is another oil & gas company that has been on a wild ride. Trading within a huge 52-week range, ($57.11 to $85.50) this $39.96 billion market cap company from The Woodlands, TX appears poised to take another big leap this year and blow past its $85.50 high. Possessing very solid numbers, this appears to be an excellent time to consider taking a position in APC.

Anadarko stock surged past both its 50-day and 200-day moving averages, making a share price increase from its current $80 range toward its one-year target of $100.15 seem believable. With market stability in the Middle East a concern due to the nuclear conflict with Iran, reports of oil abundance in the United States could help increase demand for domestic crude. With a hefty forward P/E of 23.67, picking up some shares of APC at its current range would likely be a very smart move.

Sirius XM (SIRI)

As frustrated as investors may feel regarding the stock, the reality is, for the week Sirius was only down 4 cents after it closed down 6 cents on Friday on average volume. Investors decided that it was time to take some profits and I think this is understandable considering the run that it has been on since its $1.82 close at the end of the year. It has been suggested to me that I follow the stock either too closely or too much on account of my recent article that asks investors to consider that (just maybe) the current good news has already been priced in. Being a trader's haven that Sirius is known to be, I felt it was appropriate to look at things from a trader's perspective.

Those that have been reading my articles over the past year know how I feel about the company as well as my ability to distinguish between its performance and that of the stock. That is to say, they are not the same. The fundamentals of the company are indeed improving, but the stock is still a money making vehicle and something that I encourage all investors to appreciate. My stance on this will not change nor will my demands of the stock to perform in accordance to the company's execution. Until then, there are still premiums to be made on the ups and downs - as have been the case for several years. But somehow, (to some) it has become offensive to discuss that which is already known. Get real!

Cisco (CSCO)

For the week Cisco gained 4.5% to reach a price of $19.92 on approximately 200 million shares traded. The stock just missed hitting the $20 mark for the first time in almost one year. As hard as I have been on the company, I continue to marvel at what a fantastic job that management, specifically John Chambers, has done with getting things back on track. The company is on strong fundamental standing. With a P/E of 10, it seems the Street is not expecting a whole lot of growth from the company. On Thursday, I talked about why I think the stock is to $30 ? and I feel that this is a very realistic target.

The fact of the matter is, when you consider the company's existing cash positions and even some conservative assumptions of 5% - 7% free cash flow that is compounded annually, you can see that the $30 projections were not too farfetched after all. The summer doldrums and $13 price that the company experienced was a wake-up call to management that there were some execution flaws that needed to be corrected. By both the company as well as the stock's performance of late, management has shown that it is awake and alert at the wheel and will continue to steer Cisco back toward prominence.

Hatteras Financial Corp. (HTS) is a REIT with a $2.08 billion market cap. It pays a 13.28% dividend yield. The company's EPS grew 5.72% per annum over the last five years. HTS has a long term debt to equity ratio of 0.00 and has returned 2.81% year-to-date. It recently traded at $27.11 a share.

Thoughts ?
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