4 Stocks from Jim Cramer’s Nov 17 Mad Money

Jim Cramer is the host of the wildly popular “Mad Money” show on CNBC. He is famous for making big bold calls, liking momentum stocks and preferring dividend yielding stocks. On his show November 17, Jim Cramer discussed several stocks. Here is a list of four of those stocks, discussed in detail:

Jim Cramer

Questcor Pharmaceuticals (QCOR) is a rapidly growing biotech company. It specializes in drugs for the treatment of multiple sclerosis relapses, infantile spasms and various kidney disorders. Cramer is very bullish about this stock. Unlike many of the stocks Cramer recommends, QCOR has a huge P/E ratio of 50.21 and does not pay a dividend, but scraping at the surface more deeply, we can see why the stock may be underpriced. For one, its forward P/E is just 22.16. QCOR also has quarterly revenue growth of 91.30%. On Thursday night’s show, Cramer explained, “Questcor’s most recent quarter was spectacular, causing the stock to pop 20 percent on the news,” he said. “Even though the stock has run, it’s still cheap here on a growth basis, selling for 23 times earnings with a spectacular 42 percent growth rate.” QCOR closed trading Thursday at $41.22. Analysts expect the stock will hit $45.75 in the next year. Robert Rodriguez and Steven Romick’s First Pacific Advisors likes QCOR.

Starbucks (SBUX) is a worldwide coffee and tea company that sells its products in its iconic Starbucks cafes, to restaurants and, online, to consumers. In his show Thursday night, Cramer explained SBUX with relation to one of its most frequently cited competitors – Dunkin Donuts (DNKN) – but, according to Cramer, it isn’t even a fair fight. Cramer used a analogy, explaining “Starbucks versus Dunkin is sort of like Tiananmen Square—it’s like soldiers with tanks rolling over a bunch of unarmed civilians,” where the tank is Starbucks. The issue is that the two companies have similar valuations – SBUX is trading at 1.3 times growth while DNKN is trading at 1.4 times growth – but SBUX is the better value because it has faster growth. “Starbucks wins the coffee wars hands down,” says Cramer. SBUX closed Thursday at $42.03 a share with one year expectations of 48.62, a forward P/E ratio of 19.10 and a 5 year growth estimate of 17.45%. SBUX is a favorite pick of Glenn Russell Dubin’s Highbridge Capital Management.

Salesforce.com (CRM) is a pioneering cloud computing company. On Cramer’s show Thursday, Marc Benioff, founder, chairman and CEO of the company explained, “They’re using our products as the heart and soul of how they manage their information systems,” he said. “Instead of buying the complex hardware and software from companies like Microsoft, Oracle and SAP, you’re seeing them acquire our technology at record rates to deploy a whole new infrastructure based on the cloud.“If we were a company only focused on earnings, we would not be growing our market share and revenue, which would be the wrong thing to be doing at this time in our life cycle.” Cramer wasn’t entirely convinced. He said it is “exorbitantly priced,” trading at 71 times next year’s earnings estimates, but he allowed that the company does look strong. “Understand these are high-revenue stocks,” explained Cramer. “It’s a revenue growth story. It is not necessarily the right story for this environment, but I think it’s a fabulous growth company.” CRM has a 5 year growth estimate of 23.60% compared to industry expectations of 15.78%. CRM closed trading on Thursday at $126.09 a share.  It has a one year target estimate of $153.59.

Chart Industries (GTLS) is a company that makes equipment to liquify natural gas. Most green companies are unattractive right now because of issues with government subsidies or being too sensitive to the economy. Cramer says, “We don’t know if the government is going to support the fuel, help it, or work against it,” but “If you’re looking for a stock that works regardless of whether we use natural gas or export it and you want to be a little green … then go for GTLS.” Cramer also thinks the timing is right for GTLS. It fell roughly $5 in trading on Thursday to close at $56.88 on a one-year target estimate of $66.66 a share. Jeffrey Vinik’s Vinik Asset Management likes GTLS.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!