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
TheStreet Open House

Cramer's 'Mad Money' Recap: Running the Gauntlet

Faraci said his company expected the Temple-Inland merger to take a full two years, but it has largely been completed in just nine months. He said next year will be about optimizing that acquisition, not about integrating it. International Paper expects to see far more than the $350 million in cost savings it initially projected.

Faraci also noted that International Paper is still seeing strong cash flows, which means it will likely continue to raise its dividend. That cash flow is being helped by the company's first price increase in over two and a half years, which gives a boost to its gross margins.

When asked about China, an important market for the company, Faraci said the China business is split almost in half between packaging for products that stay in China and those that get exported. The exported products are down 15% to 20%, he said, but internally they're strong, resulting in a 2% to 3% increase overall.

Turning to its U.S. business, Faraci confirmed that International Paper is benefiting from a transition from customers buying locally to buying online. He said his company's corrugated packaging business will be stronger this holiday season than it was last year. With input costs falling, Faraci said there will be lots of room for margin expansion in 2013.

Cramer continued his recommendation of International Paper.

Reinventing Itself

In his second "Executive Decision" segment, Cramer sat down with Chris Viehbacher, CEO of Sanofi (SNY), another company that's taking control of its own destiny by reinventing itself outside of traditional patented drugs. Sanofi has delivered a 39% return, including dividends, since Cramer got behind the company in September 2011.

Viehbacher explained that Sanofi decided a few years ago that it wanted to get off the "patent treadmill" where the company needed to constantly invent drugs to replace older ones losing patent protection. In fact, nearly 25% of Sanofi's sales came off patent between 2008 and 2012. That's why the company expanded into areas where there were still high barriers of entry but did not necessarily require patents.

2 of 4

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!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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