Hertz has been kept down by recent accounting issues, which in Cramer's playbook always equals "sell." But after reviewing the allegations, it appears Hertz' missteps were minor and have been resolved. That means Hertz, the largest of the three players that control a stunning 90% of the rental car market, may be poised to play catch up to its peers.
Cramer noted that Hertz now has pricing power and is no longer slashing prices in order to win over business. That's a very positive development. Hertz got a surplus of extra vehicles off its books, rightsizing the company for future growth. Finally, Cramer said Hertz is also a breakup story, planning to spin off its more cyclical equipment rental business.
Given all these catalysts and its very cheap share price, Cramer said Hertz has just become his new favorite in the group.
Waiting for Twitter
Sometimes it's just better to sit back and watch the action, Cramer told viewers as he prepared for Twitter's (TWTR) upcoming earnings. He said there are simply too many factors at play to predict what Twitter, the company, and Twitter, the stock will do when the social media firm reports.The market simply has no patience for companies that can't deliver the trifecta: better growth on both the top and bottom lines, plus raised guidance for the future. That'll be a tall order for Twitter, Cramer said, which makes the risk just far too great. Cramer said if you price Twitter shares at the same multiple as Facebook (FB) for its 2016 earnings, you get a price that's 44% lower than where they trade today. He said if Twitter is able to reaccelerate user growth, the stock may have a chance to pop; without that, a $30 price tag could be next for Twitter shares. Cramer reminded viewers that as much as Twitter's users love the service, it's the institutional investors that control Twitter's stock price. So unless there's something compelling on the company's conference call, shares could see some very rocky trading ahead.
Executive Decision: David BrainFor his "Executive Decision" segment, Cramer checked back in with David Brain, president and CEO of EPR Properties (EPR), a real estate investment trust that invests in movie theaters and shopping centers. Shares of EPR sport a 6.2% yield and are up 54%, with reinvested dividends, since Cramer last spoke with Brain in October 2011.
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