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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.
Chegg (CHGG) - Get Report : In his first exclusive interview, Cramer sat down with Dan Rosensweig, president and CEO of Chegg, the textbook rental and student services company that just posted a 2-cents-a-share earnings beat on a 19% decline in revenue with weaker-than-expected guidance that sent shares plunging 35%.
Rosensweig reminded viewers Chegg is in the middle of a transformation from being a paper textbook rental company to one of comprised of eTextbooks and digital services. Making transformations is hard, he said, especially as a public company and in a difficult market. That said, Rosensweig noted Chegg needs to do a better job of explaining itself to analysts.
Rosensweig said many of the accounting changes as part of the transition are revenue recognition issues and don't affect the number of students served or, ultimately, the bottom line.
It is Chegg's digital services, such as online tutoring and scholarship services along with eTextbooks, that will be the future of the company. Rosensweig said digital services have gone from zero to $120 million in revenue in just four years and are growing at 30%.
Cramer said that at just over $3 a share, Chegg has a good story to tell.
Covanta (CVA) - Get Report : In his second exclusive interview, Cramer sat down with Stephen Jones, president and CEO of the waste and energy company that posted an 11-cents-a-share earnings miss, but still delivers a 7.5% dividend yield.
Jones said the markets misunderstand Covanta, treating it as an energy stock even though 75% of its earnings stem from waste and only 25% from power generation.
Despite falling commodity prices, Jones said his company's dividend remains intact because most of its waste services are on long-term contracts with municipalities.
When asked about Covanta's power services, Jones explained Covanta generates enough power for one million homes. On the recycling side, the company has been able to reclaim over 500,000 tons of metals and one billion aluminum cans.
Cramer said Covanta remains an interesting company and stock.
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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.