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NEW YORK (
) -- "Don't be greedy, take some profits," were Jim Cramer's words to the viewers of his
TV show on Friday.
He said the game plan for next week will be ringing the register, and keeping an eye on a few key names.
Cramer said to watch
for the latest reads on the tech sector and U.S. employment respectively.
He said to avoid
when it reports Tuesday, but consider
when it reports on Wednesday.
Also on Cramer's watch list, spice maker
, as well as the Case Shiller home price index, due out Tuesday, and the Chicago PMI number coming on Thursday.
Cramer said new week is also ripe with new IPOs, some good, and some to avoid. In the "stay-away" camp is a Liberty Mutual subsidiary set to trade as LMAC, and KEYW Holdings, a cyber security play trading as KEYW.
Some IPOs to consider include Campus Crest Communities, trading as CCG, the Chinese wind power company Ming Yang, which will trade as MY, and the speculative Amyris Biotechnologies, which will trade as AMRS.
Stock vs. Index
In his last "Chart Week" segment highlighting technical analysis, Cramer took the work of colleague Helene Meisler one step further, turning a good trend into a great trade.
Meisler posted a chart of the
Philadelphia Semiconductor Index
( SOX) versus the overall performance of the
. Her findings? Anytime the semiconductor index reaches these low levels versus the overall market, the stocks snap back quickly to the upside.
But Cramer posed the question: "Why own the index when you can own the best stocks in that index?" Cramer said based on his analysis of the stocks in semi index, he discovered
Cramer said Microchip is not the best of breed semi maker, but it is the cheapest, trading at just 12.5 times earnings with a juicy 4.5% dividend yield and $6 a share in cash on the books.
The company manufactures micro controllers for a host of products, and also has a solid power management chip segment. Cramer said the company posted a four cent a share earnings beat when it last reported, and has a strong backlog and great visibility.
Don't settle for just a good trade, said Cramer. When the charts show a strong trend, keep digging for the best way to play that trend.
Lure of Dividend Stocks
In a special "Chart Week" extra, Cramer welcomed Ralph Acampora, partner and portfolio manager at Altera, and someone Cramer dubbed "the best chartist I've ever worked with."
Acampora looked at a chart of the
Financial Select SPDR
, which tracks the banking stocks. He said the chart is worrisome, as the index has four failed rallies in the past four months. "I don't like that it has trouble following through," he said.
However, if the index breaks past $15, it will begin to peak the interest of many technicians, he said.
Acampora then looked at the
SPDR S&P Dividend
ETF, which tracks dividend stocks in the
. Here Acampora noted that this ETF moves up in the face of bad news, and it yields more than 10-year treasuries.
Both Cramer and Acampora agreed that the markets seem tired with the financial stocks, but they are becoming increasingly attractive, and they agreed that now is a great time to get into dividend stocks.
"No matter how hot the industry, if a company can't execute it's going to disappoint," Cramer told viewers. Such is the case of
, which reported a five-ent-a- share earnings miss on weaker-than-expected revenues.
Cramer said Finish Line's miss is puzzling since 62% of the company's sales are of products made by
, and Nike reported a blowout.
Cramer said simply that Nike knows how to execute, and Finish Line doesn't. He said Nike is now in a sweet spot, taking advantage of investments in marketing and infrastructure to break out to new highs. The company is the dominant player, but is still able to innovate.
If Nike's 13-cent-a-share earnings beat wasn't enough, the company's future orders, its key metric, were up 13% globally, 14% in North America and a stunning 23% in China. Cramer said even at 17 times earnings, Nike is still a buy and the estimates for the company are still way too low.
So what to make of Finish Line? Cramer said the company's miss was of its own making, and not a reflection of the industry. He said the quarter should have been a knockout, but instead Finish Line had too little inventory and was sold out of many popular items.
At 11 times earnings, Cramer said Finish Line should now be compelling, but after such a horrible miss, the company is in the penalty box until further notice.
Cramer was bullish on
He was bearish on
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was not long any stock mentioned.
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