Cramer's 'Mad Money' Recap: Cramer's Game Plan
Jack In The Box is a terrific turnaround story, said Cramer, as the company is refranchising its company-owned stores to franchisees. A full 73% of stores are now franchised, up from just 25%, meaning the company now has more stable cash flow and increased visibility in their earnings.
The company also blew away earnings when it last reported, delivering a 16-cent-a-share earnings beat, thanks in part to strength in its Qdoba chain. With shares trading at 17 times earnings with a 12% growth rate, Cramer said he'd be a buyer of Jack In The Box on any weakness.
Providing an Antidote
With all of the bellyaching over at Procter & Gamble (PG), you would think the entire consumer packaged good sector is fighting for its life. But that's not the case at rival Church & Dwight (CHD), said Cramer. The maker of Arm & Hammer, OxyClean and Trojan condoms is taking share and growing like crazy.
Cramer said that Church & Dwight has become the antidote to P&G, a North American-centric company that's committed to delivering for its shareholders. The company has a 1.8% dividend yield and a long history of under-promising and over-delivering.So how does Church & Dwight do it? By combining both value and premium brands under one roof, then using them all to out-innovate the competition while preserving terrific gross margins. With Church & Dwight delivering 8.4% organic sales growth, Cramer said this is one stock that should be in investors' portfolios.
Lightning RoundHere's what Cramer had to say about callers' stocks during the "Lightning Round": Hatteras Financial (HTS): "I like Hatteras but I'll give you Annaly Capital (NLY), which is better-run." United States Oil Fund (USO): "I don't want you in USO. Go get ConocoPhillips (COP)." AstraZeneca (AZN): "It has no growth. I want you in Eli Lilly (LLY)." Pengrowth Energy Trust (PGH): "Too levered to the price of oil. I'll send you to ConocoPhillips (COP)." Nuance Communications (NUAN): "That's too speculative for this guy. I don't want to touch it." Athenahealth (ATHN): "I'd rather be in Cerner (CERN). " Caterpillar (CAT): "I want to wait and see the quarter. They may guide down, which will be a better time to buy."
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