For the week of January 14, Jim Cramer mentioned 67 companies, 14 of which were rated negatively. These companies are worth taking a closer look. These companies are either in a reversal of fortunes, or were covered by news outlets more than average.
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Here's the scoop:
1. Dell Inc.
): Provides integrated technology solutions in the information technology (IT) industry worldwide. Market cap at $22.31B, most recent closing price at $12.84.
was a bearish call. Dell may be privatized through a private equity (“PE”) firm or LBO (leveraged buyout). The company has an estimated $6.49 in cash per share and pays a dividend of 2.49%. The problem with Dell’s cash is that most of it is held overseas. Bringing the money back to America could result in taxes. Over its life as a public company, Dell
more money on share repurchases than it earned.
The current risk for buying Dell at this time is that no deal will materialize, or that the buyout price is at close to the current price of the shares.
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2. Herbalife Ltd.
): A network marketing company, sells weight management, nutritional supplement, energy, sports and fitness, and personal care products worldwide. Market cap at $4.7B, most recent closing price at $43.50.
Herbalife is ranked negatively. The company is a target of short-selling by a hedge fund manager. Additional hedge funds announced taking a bullish bet on the company. Herbalife shares are up 79.5% already, from its yearly low. In its quarterly earnings, the company forecast volumes rising 18.4% in the next quarter. Growth is expected in all geographic regions, at a double-digit rate. The company also plans to buy shares back, following an aleady-existing share repurchase authorization.