This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Now, the Focus Is Earnings

Stocks in this article: CELG AAPL RIMM CAG BBBY VIV WTW ARIA IRWD LQDT PBR MAV MU BCS CPWM VZ MOS SID COP

Cramer said yes, it is. The selling have been overdone and the outlook for the company remains strong. He noted that in the three months leading up to the news, shares of Celgene fell by 16%, making the stock cheap even before the news. Shares now trade at less than 11 times earnings, despite the fact management reaffirmed its guidance.

Over the long term, Cramer said the Revlimid news simply isn't that bad. It has delayed, but not killed, the drug's approval in Europe by about 18 months. Celgene still has a healthy stable of other drugs in the pipeline to help it grow. In fact, Celgene has nine drugs in phase two and phase three clinical trials.

Cramer said shares of Celgene are now way too cheap, but still could get cheaper. He advised buying half a position now and waiting until after the quarter ends Friday to pick up the other half.

Still a Growth Story, But...

So what does a broken company look like? Cramer said that it doesn't look like Bed Bath & Beyond (BBBY), a best-of-breed growth stock that was up 27% for the year before the company stumbled last Wednesday when it delivered slowing same-store sales and tepid guidance. Shares of Bed Bath and Beyond fell 16% on the news.

Despite popular belief, business at Bed Bath & Beyond is not falling off a cliff, said Cramer, as management is simply under-promising and over-delivering as they have many times in the past. The company sells housewares, he said, not the kind of items consumers are likely to buy online. With gas prices falling, consumers have more money in their pockets to spend.

Cramer said the growth story remains intact at Bed Bath, as the company looks to acquire Cost Plus (CPWM), an acquisition that will offer many synergies to its current business. The company also has a $600 million stock buyback program.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs