Jim Cramer’s Mad Money is one of the top watched TV shows on CNBC. Nearly two hundred fifty thousand people watch Mad Money 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 Mad Money is the starting point for many investments made by these folks. During the October 27th Mad Money, Cramer discussed the following stocks:
Manitowoc (MTW): A superb sales increase and solid business model makes Jim Cramer thinks this multi-industry capital goods maker can go higher. Cramer recommended buying if the price falls to $10 per share. Manitowoc has a $1.56 billion market cap.
Titan International (TWI): This tire, wheel and mining company is a significant part of the auto industry, which is one of the sectors currently driving the economy. Jim Cramer told an investor that Titan International is okay to own. Titan has a $924 million market cap and trades at 89 times earnings.
Starwood Hotels (HOT): The owner/operator of multiple high-end hotel brands delivered an excellent quarter, which made the stock rise 6% on the day. The company has experienced significant growth outside the United States and switched to a higher margin business of managing hotels for others over owning their own. Cramer’s charitable trust owns shares of the hotel operator and he gave Starwood a buy recommendation. Starwood trades at 19 times earnings and has a $10.28 billion market cap. Louis Navellier of Navellier & Associates owns a position in Starwood.
Groupon (GRPN): The much-hyped local-deal service company expects to price its IPO next week and Jim Cramer told viewers to get it on the deal and sell into the 1st-day pop. Cramer said this is not the stock to own or buy in the aftermarket. In Cramer’s opinion, the company’s IPO has been engineered specifically for first day profits, hence the limited release of only 5% of its shares to the public. Competition from Amazon (AMZN), Travelzoo (TZOO) and Google (GOOG), paired with the fact that the company has yet to turn a profit, makes the case to own the stock difficult.
Salesforce.com (CRM): The cloud business is stronger than many give it credit for. As a company that continues to make their numbers, Jim Cramer told a viewer he’d rather bet with Salesforce.com than against them. Salesforce.com trades at 681 times earnings and has a $18.07 billion market cap.
Ancestry.com (ACOM): Cramer doesn’t think the family heritage website has the big earnings ramp it once had, and that it had peaked. Ancestry.com trades at 23.7 times earnings and has a $992.68 million market cap.
Travelzoo (TZOO): Cramer thinks the travel-deal service screwed up on its last commercial attempt and advised investors to sell it if it bounces down to $40 per share; citing too much competition in the market. Travelzoo has a $514.42 million market cap and trades at 729 times earnings.
Rangold Resources (GOLD): While Rangold would be the gold-miner Cramer would buy if he had to, he advised a viewer not to buy it and go with the SPDR Gold Trust ETF (GLD) instead. Rangold Resources has a $10.09 billion market cap and trades at 49.4 times earnings.
GameStop (GME): Jim Cramer doesn‘t like the long-term prospects because game-maker Electronic Arts (ERTS) didn’t report the numbers he’d hoped for and increasing competition from social media sites. However, Cramer recommended the stock on a short-term basis and advised ringing the register when the stock reaches $30 per share. GameStop trades at 9.5 times earnings and has a $3.6 billion market cap.
Spirit AeroSystems (SPR): With Goodrich (GR) doing good numbers, Cramer understands why people want to play the 787 with Spirit AeroSystems. However, Cramer prefers Honeywell (HON), which also operates in aerospace and offers dividend protection. Spirit AeroSystems trades at 13 times earnings and has a $2.52 billion market cap.
Devon Energy (DVN): Jim Cramer likes Devon Energy very much and gave it a buy recommendation. Cramer also likes competitor EOG Resources (EOG), and thinks Devon Energy needs to get its stock price higher or risk being taking over from a company like Statoil (STO). Devon Energy yields 1%, trades at 13.5 times earnings and has a $27.64 billion market cap. George Soros of Soros Fund Management reduced his position by 5%.
Macquarie Infrastructure (MIC): Cramer gave Macquarie a sell recommendation saying the price is too high and he didn’t like the company’s outlook. Macquarie trades at 52 times earnings, yields 3.15% and has a $1.2 billion market cap.
American Axle & Manufacturing (AXL): Although it was a good week for the auto industry, American Axle‘s stock hasn‘t performed well and Cramer recommends being in Cummins (CMI) instead. American Axle trades at 4.4 times earnings and has a $756.36M market cap.
Bank of America (BAC): Cramer told a viewer that it is “way too late to sell” Bank of America shares, but that the stock just might be done going down. At $7.20, the stock is back to levels where Warren Buffet bought into it. Bank of America has a $73.17 billion market cap. Bruce Berkowitz’s Fairholme owns over 99.5M shares.
Tibco Software (TIBX): Tibco Software develops business integration software and operates in the cloud, mobile and social space. Recently hired by the U.S. government’s defense organizations to design a secure infrastructure, Tibco specializes in helping businesses improve operations within real-time.
Alcoa (AA): Cramer used this embattled steel company to prove that this week’s rally has lifted all boats. Alcoa, which Cramer’s charitable trust owns, was the only company to report a truly bad quarter this week is now up 10% since reporting. Alcoa has a $12.07 billion market cap, yields 1.15% and trades at 11 times earnings. John Paulson of Paulson & Co. owns close to 170M shares.