Cramer's 'Mad Money' Recap: Pay Attention
Of course there will be increased competition in the healthy, organic segment, he added, and that's something he welcomes as it will take more than just Hain to change the way the world eats. But increased competition is not stopping his company's Greek yogurt business from rising 39%, nor its organic baby food sales from growing 15%.
When asked about the company's UK acquisitions, which prompted some analysts to charge Hain bit off more than it can chew, Simon responded by saying that every acquisition has its challenges and some things simply cannot be known until you actually own a company. That said, Simon noted that in every acquisition Hain goes in and fixes prior management's problems and turns laggards into winners.
Cramer said that he continues to be a believer in Simon and Hain.
Adding Some Spice
Sometimes slow and steady really does win the race, Cramer told viewers, as he followed up on his favorite spice maker, McCormick (MKC), which recently sold off on what was widely viewed as a disappointing quarter.Cramer said that while McCormick did miss estimates by 3 cents a share and lowered its guidance - news that sent shares plummeting by 6% - McCormick is also a stock that has a history of falling on earnings, only to rebound handsomely. In fact, McCormick has had an incredible 10-year run, noted Cramer, and is far less risky than owning the S&P 500 as a whole. McCormick management cited valid reasons for its shortfall and tempered expectations, including supply disruptions from Hurricane Sandy and higher tax rates for 2013, but those factors won't undo the fact that McCormick still plans to grow by 8% to 10% this year. Cramer said this innovative company still introduced no fewer than 25 new products just last month alone and still remains the dominant player, with 50% market share, in the spice and marinade market. Shares of McCormick are indeed pricey, said Cramer, trading at 19.7 times earnings, Then again, shares of McCormick have always been pricey and are often a lot more expensive than they are today. That's why he suggested using this predictable selloff to buy, not sell, shares of McCormick.
Lightning RoundIn the Lightning Round, Cramer was bullish on Dynavax Technologies (DVAX), Cognizant Technology (CTSH), SAP AG (SAP), Lockheed Martin (LMT), Zoetis (ZTS), Pfizer (PFE), Molex (MOLX), Avnet (AVT) and Edwards Lifesciences (EW). Cramer was bearish on Coinstar (CSTR), BlackBerry (BBRY) and Skyworks Solutions (SWKS).
Am I Diversified?In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included: Mohawk (MHK), MasterCard (MA), iShares FTSE China 25 (FXI), Goldman Sachs (GS) and Gilead Sciences (GILD). Cramer advised selling MasterCard, because it's too similar to Goldman Sachs, and adding Timkin (TKR). The second portfolio's top holdings included: Visa (V), Apple (AAPL), SPDR Gold Shares (GLD), Facebook (FB) and Phillip Morris (PM). Cramer said this portfolio did not need any changes. The third portfolio had: Apple, Caterpillar, Home Depot (HD), Ford Motor (F) and Timkin as its top five stocks. Cramer also liked this portfolio and blessed it as diversified. The fourth portfolio's top stocks were: Ford, Green Mountain Coffee Roasters (GMCR), eBay (EBAY), Yelp (YELP) and Marathon Petroleum (MPC). Cramer said this portfolio was also terrific.
No Huddle OffenseIn his "No Huddle Offense" segment, Cramer said that while faith is usually not part of his investing strategy, when it comes to a select few CEOs he has total faith in their ability to deliver on their promises. Bob Iger, CEO of Walt Disney, is one of those select few. Cramer said that Iger provided answers to every single question that analysts had about the company, including its Lucasfilm acquisition, earnings at ESPN and attendance at its theme parks. Those answers made the recent selloff in Disney look like amateur hour, which is why Cramer looks past to the naysayers and continues to bet with Iger. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts