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

Jim Cramer's 'Mad Money' Recap: 12 Stocks Even Better Than Google

Cramer Cries 'Foul'

When an analyst at Goldman Sachs downgraded the stock of semiconductor maker NXP Semiconductor (NXPI) , Cramer threw the red flag, calling the logic behind it ridiculous.

Cramer said the same analyst first downgraded the company from buy to hold in January, missing a 50% move higher in the stock. But now it appears he's digging in his heels, doubling down on his earlier mistake,

According to the analyst, NXP is in a low-margin, commodity business and the markets shouldn't value the company with a premium multiple. That would be true, Cramer argued, if NXP only sold commodity chips. In fact, that is only a small and declining portion of NXP's business.

The analyst also didn't like NXP's exposure to the fickle mobile device market or the company's stock-based compensation plan. Here again Cramer argued that mobile devices is only a small portion of NXP's business and its stock compensation is more than made up for by its huge stock buyback program.

With 50% gross margins and growing proprietary markets, Cramer said NXP is actually inexpensive, and the weakness created by these uninformed downgrades is certainly a buying opportunity.

Emerge Energy

In today's installment of his "Behind the Boom" series featuring America's oil and gas renaissance, Cramer spoke with Rick Shearer, CEO of Emerge Energy (EMES) , the fracking sand provider that has seen its stock soar 600% since its IPO in May 2013.

Shearer explained that the type of natural sand that Energe provides is the perfect material for 90% of the hydraulic fracture wells out there today. He said while ceramic materials are better in some cases, they cost $700 to $800 a ton as compared to just $60 to $65 a ton for sand.

Shearer continued that Emerge is already doubling its capacity, bringing another five million tons online this year, making it the leading provider in the industry. The company is not stopping there, however, and already has another mine and plant in development.

Emerge's biggest problem, though, is a lack of rail cars to ship the product, Shearer explained. He said while the company uses 4,600 rail cars today, nearly 8,000 will be needed to support the new mines being built.

Read More: What to Expect From Jackson Hole: ‘Party On’

Cramer said Emerge has seen remarkable growth and he continues to like the company.

2 of 3

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 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

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