Cramer's 'Mad Money Recap': America's New Tech Stars
Cramer said Heinz recently beat Wall Street's earnings estimates by a penny a share, with the company's international business the real highlight of the quarter. All of the company's businesses performed well, including ketchup, up 14%, snack foods, up 14%, and infant nutrition products, up 17%.
Johnson said that he wakes up every morning smiling at the opportunities for his company to grow. He said Heinz has powerful brands that have allowed it to raise prices in order to offset rising raw food costs, and is increasing productivity wherever it can to boost the bottom line. Johnson said the international markets are going "crazy" for not only the company's ketchup products, but also for its potato and infant products. He said that 13% of the company's sales are now derived from emerging markets and noted that the company plans to continue to grow overseas through acquisitions. Asked if a change in U.S. energy policy toward ethanol would help Heinz, Johnson confirmed that Heinz would benefit from lower corn prices. Cramer continued to stand behind his buy recommendation of Heinz back on March 20, 2007, despite that call being up just 1.4%. He said Heinz will debut over 200 new products this year and deserves every bit of the 30 multiple Wrigley received in its takeover. He also cited Heinz' 15 million-share repurchase program as yet another reason to love the company.Wind Power Blossoms
Cramer welcomed Dan Batrack, chairman and CEO of alternative energy supplier Tetra Tech (TTEK Quote) to the show to discuss what he called the company's "breakout quarter." Cramer last recommended Tetra Tech back on April 19, 2007 at $20 a share. Batrack said that his company had a very strong quarter, with net income up 30%, revenue up 35% and the company's backlog up 40%. He credited the company's growth to strong demand for wind power. Batrack believes the U.S. wind power market is growing faster than the consensus forecast of 25% growth. He said his company has booked over $170 million worth of orders for wind products in the past 90 days He called wind power the faster growing energy input in most states across the country. "Wind is ready to go now," he said, "without any trade offs." Cramer said viewers should "do some homework on wind power... I want you in a wind stock."Am I Diversified?
Cramer evaluated the portfolios of callers to see if they have what it takes. The first caller's portfolio included Raytheon (RTN Quote), Merck (MRK Quote), Anheuser-Busch (BUD Quote), Apple (AAPL Quote) and Schlumberger (SLB Quote). Cramer said he liked this portfolio, but would swap out of Anheuser in favor of Molson Coors (TAP Quote). The second caller's top five holdings included Apple (AAPL Quote), Google (GOOG Quote), Pfizer (PFE Quote), Wal-Mart (WMT Quote) and Allied Waste (AW Quote). Cramer suggested Schering-Plough (SGP Quote) instead of Pfizer and recommended swapping out of Google in favor of an energy company like El Paso (EP Quote) The third caller's portfolio included: Apple (AAPL Quote), ConocoPhillips (COP Quote), Mastercard (MA Quote), Foster Wheeler (FWLT Quote) and EMC (EMC Quote) in his portfolio. Cramer said this portfolio had two of a kind and recommended selling EMC in favor of a healthcare stock.Sudden Death
Cramer was bullish on Yum! Brands (YUM Quote) and Merck (MRK Quote). He was bearish on Red Robin Gourmet Burgers (RRGB Quote) and Delta Air Lines (DAL Quote).
Lightning Round
Potash (POT Quote), Halliburton (HAL Quote), Visa (V Quote), Mastercard (MA Quote), ConocoPhillips (COP Quote) and First Solar (FSLR Quote). Cramer was bearish on Capstead Mortgage (CMO Quote), Compagnie Gnrale de Gophysique (CGV Quote), La-Z-Boy (LZB Quote) and MEMC Electronics (WFR Quote). Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.- Loading Comments...
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