OPEC, HP, Ulta Salon and Lululemon: Jim Cramer's Views - TheStreet

Don't Count on OPEC Freezing Oil Production.

Editors' pick: posted at 11 a.m. EDT on Friday, Sept. 23, 2016

Investors shouldn't take the OPEC meeting seriously, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said Friday from the floor of the New York Stock Exchange.

Here's the pattern, Cramer says: Crude oil falls to the low $40s. Rumors arise over a potential OPEC production freeze or a cutback, which would diminish supply and therefore send prices higher. This causes oil to rally. Then the OPEC meeting occurs, no cutback plan materializes and the price of oil falls back to the low $40s.

OPEC countries desperately need oil prices to move higher. But because the U.S. has become so good and efficient at pumping its own oil, countries such as Saudi Arabia and Venezuela don't dare cut production for fear of losing U.S. market share -- where a lot of their oil is imported -- to U.S. companies, Cramer explained.

These countries have a very low cost of production, he added, and they will continue to flood the U.S. with oil. investors shouldn't believe the hype when it comes to a potential production freeze. In fact, investors would be smart to consider trimming their exposure to the commodity, he concluded.

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HP, Ulta Salon, Lululemon Athletica

Posted at 9 a.m. EDT on Saturday, Sept. 24, 2016, and written by Scott Rutt

Here are Jim Cramer's top takeaways for last week's trading from "Mad Money" on CNBC.

HP (HPQ) - Get Report: Believe it or not, personal computers are making a comeback, Cramer told viewers, and that's great news for HP, the PC and printer spinoff of the faster-growing Hewlett Packard Enterprise (HPE) - Get Report.

HP saw its shares decline over 25% in the first three months as an independent company, which made perfect sense, as PC sales peaked in 2011 and have been declining from 365 million units to just 288 million last year.

But since making its lows, shares of HP are now up over 65%, coinciding with a bottoming in PC sales. Chipmaker Intel (INTC) - Get Report noted improving demand for PCs when it last reported and HP followed suit, posting its first positive sales number in six quarters.

Then there are printers, which like PCs were in decline until the second quarter of 2016. Add to that HP's purchase of Samsung's (SSNLF) printer business, and Cramer said there will finally be less competition for printers.

Cramer was also bullish on HP's 3.3% dividend yield, which makes it the perfect stock to own in a low-interest-rate environment. Trading as just 9.4 times earnings, Cramer said HP is still cheap, even after its 65% rally from the bottom.

Ulta Salon (ULTA) - Get Report : What happens when a high-flying momentum stock misses the mark? Look no further than Cramer fave, Ulta Salon. After the company reported strong earnings in August, shares immediately plunged 6%, and are now down over 12% in less than a month's time.

Was there something wrong with Ulta's earnings? The company delivered a 3-cents-a-share earnings beat on a 22% rise in revenue year over year. Same-store sales popped 14.4% and Ulta's gross margins also expanded. To top it off, Ulta's management gave robust guidance.

In fact, Cramer said every single metric Ulta Salon reported was absolutely fabulous. The problem? They weren't fabulous enough for a company that typically beats numbers by an even wider margin.

Analysts assumed Ulta would post epic numbers forever, Cramer said, and even the slightest of disappointments is enough to send some of them for the exits.

But trading at 33 times earnings with a 20% long-term growth rate, Cramer said he's still a huge fan of Ulta, which remains one of the best, if not the best, story in retail at the moment.

Lululemon Athletica (LULU) - Get Report : For his "Executive Decision" segment, Cramer offered up part two of his exclusive interview with Laurent Potdevin, CEO of Lululemon Athletica. Part one aired on during a previous show.

When asked about his company's latest same-store sales number, which disappointed analysts, Potdevin said the metrics need to change to keep up with the evolving face of retail. He said Lulu keeps a very light retail footprint, and has augmented that with a strong digital presence. Guest engagement, not same-store sales, is the more important metric, he added.

Potdevin also commented on Lulu's growing line of mens apparel, noting that like women, men also appreciate the antibacterial fabrics as well as the on-site tailor, which can make alterations and provide the perfect fit and instant gratification.

Potdevin concluded that after a few years of playing defense, Lulu is now back on offense. As long as his company produces superior products, he said, they're seeing very little price resistance.

To read a full recap of "Mad Money" on CNBC, click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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'Mad Money' Lightning Round: Buy, Buy, Buy Advanced Micro Devices

Posted at 9 a.m. EDT on Saturday, Sept. 24, 2016 and written by Scott Rutt

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Here's what Jim Cramer had to say about some of the stocks during the Mad Money Lightning Round Friday evening:

Advanced Micro Devices (AMD) - Get Report : "I think they fixed the balance sheet and I'm a buyer, not a seller."

Bluebird Bio (BLUE) - Get Report : "That's speculative. If they don't get a takeover, you're going to lose that gain."

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Enterprise Products PartnersEPD: "I like EPD. It has a steady dividend and good management."

Baozun (BZUN) - Get Report : "No, that's too speculative for me."

Silver Wheaton (SLW) : "No, I prefer the SPDR Gold Shares (GLD) - Get Report  or Randgold Resources (GOLD) - Get Report ."

Impinj (PI) - Get Report : "I like it."

To read a full recap of "Mad Money" on CNBC, click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.