This Day On The Street
Continue to site
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

Cramer's 'Mad Money' Recap: Pros and Cons

Recession-Proof Abbott

Looking for a stock that's both recession-proof and doesn't have anything to do with the fiscal cliff? Cramer said investors need to consider Abbott Labs (ABT - Get Report), a stock he owns for his charitable trust, Action Alerts PLUS , which has not one, but two catalysts helping to drive shares higher.

Cramer reminded viewers that back in October 2011, Abbott Labs announced it would be splitting itself into two companies as of Jan. 1, 2013. Shares have already posted a 21% return since that news, but Cramer said there's more to come now that the split is only 53 days away.

It may seem counter-intuitive that two companies would be worth more than one, said Cramer, but in fact, Abbott's pharma business and its diagnostic and medical devices business grow at different rates and therefore appeal to different investors.

He said the future Abbott Labs will have faster growth with a lower yield, while the new pharma company will have slower growth but a juicy 4% yield. Add those two companies together and they're worth $74 a share, said Cramer.

But Abbott also has a second catalyst, and that's positive data on it's Hepatitis C treatment. That news will be relayed at an upcoming conference and should also help send shares higher.

Cramer said with Abbott Labs trading at just 12.2 times earnings with a 9% growth rate, he'd be a buyer through the end of the year, especially since shares have come down eight points off their highs.

Executive Decision

In the "Executive Decision" segment, Cramer once again spoke with Cheryl Bachelder, president and CEO of AFC Enterprises (AFCE), purveyors of the Popeye's Louisiana Kitchen chain of quick-serve restaurants. Shares of AFC are up 85% for the year and 14% since Cramer last spoke with Bachelder in August.

Bachelder said that Popeye's new flavorful menu is bringing excitement to the stores and is part of the reason the company delivered a an earnings beat of 2 cents a share on a 6.3% rise in same-store sales. She said the company's fourth annual crawfish festival is once again being well received and is proving that seafood should remain a mainstay on the Popeye's menu.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
AFCE $52.44 0.00%
ABT $44.14 -0.23%
HSIC $135.15 -0.17%
AAPL $110.37 -1.75%
FB $88.15 -1.94%

Markets

Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs