CVS Caremark Corp. (CVS)
Darden Restaurants (DRI) Nike Inc. (NKE) Research
In Motion (RIMM) Accenture Ltd. (ACN) ConAgra (CAG) J. M. Smucker
Company (SJM) Discover Financial Services
(DFS) Lennar Corp.
(LEN) Micron Technology Inc. (MU) Rite Aid Corp. (RAD)
JJC:
Before we get started on
my Game Plan, I want to
correct a misimpression...
Southwestern Energy Co.
(SWN*),
is really right now a play
in the Fayetteville
shale... I get my shales
all confused, but
Fayetteville seems to have
been obscured by
Haynesville and by
Marcellus... But SWN* is
pretty hot, and that's why
I've been buying it for
my charitable trust. Don't want to
get my shales confused
though...
. . . .
.
Okay, for next week, we're
reverting to our old
format for the Game
Plan...
Now the Game Plan is the
only time during the week
that I recommend trades on
Mad Money... That
somehow is a fact that
remains true despite
constant criticism from
the press...
So, next week is the
official start of the
Summer season on Wall
Street... I suspect
it to be quiet, unless oil
skyrockets or plummets...
So we're going back to an
individual stock Game
Plan...
. . . .
.
Monday...
Usually the market's down,
after expiration, we don't
care. What we're looking
for, is individual
stocks... And on Monday,
Walgreen Co. (WAG),
reports before the
opening. Here's the trade,
it's not WAG. That's done.
You had to do that on
Friday, the stock's going
to trade on how it opens
on Monday, and you'll
already have the news out.
If WAG is bad though, it
should pull down the whole
cohort. We think
that means you get a
chance to buy
CVS Caremark Corp. (CVS)
at a discount. It
seems like CVS is doing a
lot of right things,
wholesale pharmaceuticals,
the stores look great, and
remember, a drug store
chain is a pretty good bet
in the slowdown we're
having... Nah, but that's
not the main reason I like
this one. If WAG
gives us a good entry
point for CVS, I think you
do it because I think
Rite Aid Corp. (RAD)
is a rapidly diminishing
entity. I think RAD
is CVS' principle
competitor, is running out
of money and time.
What we could end up with
here is a potential
duopoly between WAG and
CVS, those guys are all
three going at it. And
that's a real possibility.
The only thing we like
more than a duopoly on
the show is a monopoly.
Given RAD reports next
Thursday, you won't have
long to wait to see if
this trade materializes.
Remember, we think, not
WAG... If WAG is
bad, buy CVS. If WAG
is good, there's nothing
we can do.
. . . .
.
Let's move to
Tuesday...
Here Darden Restaurants (DRI),
reports after the close.
You know we're giant fans
of the Olive Garden and
Red Lobster Seafood lover
in us... But
everyone keeps thinking
that this will be the
quarter that DRI blows up
because of high food
costs. I disagree.
If the stock, DRI is down
on Monday in anticipation
of a bad quarter, I think
you want to pick some up
on Tuesday... As we,
the royal we, think this
company will once again
deliver. DRI
reminds me of
Panera Bread Co.
(PNRA),
in that it offers enough
branded restaurants that
people will look forward
to going to that it can
still do well in this
environment. And
Panera last night, you
gave me two knives and one
fork, and my daughter was
all furious at me, okay,
so make my life easy,
please?
. . . .
.
Then Wednesday...
Two stocks reporting after
the close that I want to
focus on...
Nike Inc. (NKE)
and
Research
In Motion (RIMM).
First,
Nike Inc. (NKE).
I don't know if Nike will
report a good number or
not. And again, sometimes
the game plan is to know
the unknowable and
sometimes it is to say I
don't know. Now the best
opportunities often come
after a report, I think
NKE will be good. I don't
know. I do know this,
though. The next
quarter will include the
Olympics, which is a
worldwide showcase for
NKE's products, as well as
a fabulous NBC program. I
think NKE is a great
company that seems to be
growing consistently. So,
I want you to buy it on
weakness, if we get any
after the quarter. Now, if
the quarter is good, and
the stock goes up, we
don't get any weakness,
and then you pass. Nobody
ever lost money taking a
pass. All right now, how
about
Research
In Motion (RIMM)...
Blackberry...
I've already said I like
this one. I hope you would
have bought it already by
now. It's the only
horseman, of the four
horsemen, that I have
stuck with consistently in
2008. I raved about it on
Tuesday, when I talked
about the Ax, the
universally-acknowledged
best analyst in the stock,
Rob Sanderson, who also
happens to be a really
nice guy. He took
his estimates up well
above the others. He
became what's known as
street high. My
prediction is that RIMM
beats that Street's high
number, and they report a
great one... and all
the other analysts follow
Sanderson and boost their
estimates and either the
stocks marks time, as it
did the last quarter, and
then went higher, or it
goes higher immediately...
Those seem to be the two
options. Given the
run that RIMM has already
had, you should be aware
that it could even sell
off a little on a great
quarter... But
again, I want to buy it.
That's what
Goldman Sachs (GS*)
did. It opened at
$185 then sold down at
$179, you got a great
chance at them went back
to $185. If that
happens, if RIMM goes down
after the great quarter,
that's a great buying
opportunity. I want you to
keep some money on the
table for that, just in
case we get a dip.
. . . .
.
Thursday, unfortunately
is a whole different
story...
It's going to be a bad
day, I think. I'm
worried about Thursday.
First
ConAgra (CAG)
reports... You know
I put that in the Sell
Block because of raw
costs. Then we saw
J. M. Smuckers (SJM),
which is a really good
company... We saw it
just get crushed on bad
peanut butter earnings.
I can't believe that
ConAgra's Peter Pan peanut
butter will be any better.
Don't forget, ConAgra is a
huge popcorn company.
It has so many foods that
are jacked up by
commodities pricing, that
I just don't trust it.
So again, I'm reiterating,
stay away. Thursday,
Discover Financial Services
(DFS)...
Discover card. The
way I figure it... Why own
it when you could own
Mastercard
(MA)?...
Oh, and then this day just
continues...
Lennar Corp. (LEN)
reports, the big
homebuilder. Lennar will
probably put some quarter
that is lipstick on the
proverbial pig, if you own
it... I think you should
get ready to sell it into
the inevitable hype.
Micron Technology Inc. (MU),
a semiconductor company,
reports Thursday...
It probably will award us
with another bad quarter
from "old tech"...
And then, to top things
off, oh my,
Rite Aid (RAD)
reports, which I've
already told you, I think,
is circling the drain...
The only saving grace on
Thursday, if the markets
down... Maybe pick up some
Accenture Ltd. (ACN).
I think that could be
terrific in a day
otherwise shrouded in
gloom.
. . . .
.
The Bottom Line!:
If
Walgreen Co. (WAG)
disappoints on Monday, I
think you buy
CVS Caremark Corp. (CVS).
I recommend you buy
Darden Restaurants (DRI)
if it dips on Monday,
ahead of Tuesday earnings.
Nike Inc. (NKE)
is buy after it reports,
only if it goes down...
And
Research
In Motion (RIMM),
which you should already
be in... If it comes
off, I want you to buy
some more. And
then, stay home, lock your
doors on Thursday, because
I expect things to be
pretty darn bad, with the
exception of
Accenture Ltd. (ACN).
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
Most popular
investing books ordered:
(click any book to see at
Amazon.com)
We need your help!
If you find our service valuable, your
donation is critically helpful to support
our operating costs and is
MUCH appreciated!
(click below to donate)
We are serving thousands
of
new visitors every day and our costs are
growing as well. Thank you for your
support & generosity!
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
Jim's comments BEFORE
the interview:
We often joke on Mad Money
that the wheels of
capitalism are greased by
the desire of people to
have wrinkle free skin...
Lately, the wheels of
capitalism have been a
little off track, because,
apparently, people aren't
spending as much as they
may have at another time
for elective surgery or
for various skin fillers
that make you look
youthful... But I think
this market comes back
when things get better.
It's in a little bit of a
secular upswing, but
cyclical decline...
And one of the companies
we've focused on, besides
Allergan (AGN),
that is in this business,
is
Medicis
(MRX).
MRX this week announced
this week something that I
thought was pretty
breathtaking... They
bought a company that does
ultrasound liposuction,
but not invasive. In
other words, what it
really does is it uses...
it's body contouring and
it doesn't require
surgery... And to me, it
made a lot of sense... But
almost immediately, right
out of the gun, it got a
Forbes article that the
company is making a wrong
move... Lack of data,
never get approved... And
I don't know, I felt like
the other side should be
presented by a man that
has been incredibly
forthcoming every time
he's ever been on our
show... who is Jonah
Shacknai. He's
chairman and CEO of
Medicis Pharmaceutical Corp.
(MRX)...
Jonah, welcome back to the
show...
. . . .
.
Jim's comments AFTER
the interview:
I'm not saying whether to
buy or sell the stock.
I am saying that the
criticism he's getting here
is very small minded. You
do the work, you make the
decision... But I thought
this acquisition made a
lot of sense to me.
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
Go to the SUDDEN:DEATH
SEGMENT from
tonight's showhere >>
See current quotes on Yahoo!
Finance from
tonight's show stocks
here >>
Symbol keys:
A Charitable Trust stock.
- An asterisk next to a
stock symbol indicates that
Jim mentioned it is a stock
that he manages within
his
charitable trust portfolio.
You can see the complete
portfolio
of stocks
here >>
Thumbs up - indicates
he would buy the stock or,
at the very least, not sell
the stock. We do our
best to interpret Jim's
opinion on stocks, as we
think it is indicated by his
comments during the show.
Please read his comments to
decide for yourself.
Thumbs down -
indicates he has said not to
buy or to sell the stock,
based on his comments
We do our best to interpret
Jim's opinion on stocks, as
we think it is indicated by
his comments during the
show. Please read his
comments to decide for
yourself.
Back up the truck -
indicated by Jim, when he
says the stock is so good,
that he would do a
'mon-back' on the stock...
In other words, this is the
sound someone would say to a
truck driver, "Come on
back... " as he is "backing
up the truck" to load up on
his cargo. Translation
for buying stocks:
This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
to opine on... He then
indicates he is stumped and
will have to come back to
it, after he does some
homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back...
Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you.
Definition:'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock).
Definition:'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
See more
"Cramerisms" & other
financial phrases
here >>
Helpful Websites:
See the stocks currently
known to be in Jim Cramer's
Charitable Trust at:
Stock Homework 101:
This is an excellent
upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
FastMoneyRecap:
This site will be a quick
summary of recommendations
made by the great Fast Money
TV show crew, that will
offer you a unique service,
to compare their picks to
Jim Cramer's past comments
about those stocks.