- Friday's selloff;
- why Home Depot may be primed to rise; and
- why Google's conference call was so unsatisfying.
This Selloff Is Just Profit-Taking Posted at 3:48 p.m. EDT on Friday, April 13. The darlings of banking and tech, JPMorgan ( JPM), Wells Fargo ( WFC), Google ( GOOG) and Apple ( AAPL), have done their best to join Spain in wrecking the day. But there is so much power in this market, particularly the rotation to the high-growth stocks, that you have to be amazed at how we've been able to hold up.
Home Depot's Ducks Are All in a Row Posted at 10:47 a.m. EDT on Thursday, April 12. Sometimes you can take clues and build them into something that adds up to a potentially good stock pick. This morning, Tractor Supply ( TSCO) reports a number that's almost double what people are looking for. You browse the aisles for Tractor Supply, you see a lot of merchandise related to building and home improvement. Earlier this week, we got a number from Titan Machinery ( TITN), a distributor of CNH farm and construction equipment. It was stellar, so stellar that the company had to let people know ahead of time, just like Tractor Supply. And then there's Sherwin-Williams ( SHW). Business is up 20%, just a fantastic number, once again precipitating the need for a press release, because the analysts were looking for a number materially lower than what most other people were looking for. These remarkable preannouncements at a time when employment is weak and small businesses are getting less optimistic tell me that you can separate, for now, employment growth from earnings. Which brings me to the idea of buying Home Depot ( HD). Yep, Home Depot. Even up here. The goods it sells are very complementary to what Tractor Supply and Titan sell. If paint is booming at Sherwin-Williams, and we know the paint is being bought for both interiors and exteriors, then the home-improvement aisles must be booming, too. If you go back to the last few Home Depot conference calls, you will hear that the company has been beating the numbers without housing tailwinds. Tractor Supply, Titan and Sherwin Williams tell me that the tailwinds might be in place. That augurs so well for Home Depot that I believe it is worth buying, even after this terrific run. The growth is back, and Home Depot could be heading nicely higher. Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in stocks mentioned.
Unasked Questions on the Google Call Posted at 6:52 a.m. EDT on Friday, April 13. It's not an interrogation, it's not an official inquiry, it's not even a press conference. And that's why I was so unsatisfied with Google's ( GOOG) call last night. Sure, the stock is very cheap, really at about 11.5 times next year's earnings, so the risk isn't there. It is also exciting. Say what you want, I read enough Twitter and talk to enough people that I know a 2-for-1 split does matter (even though it shouldn't). This stock is going to get some retail acclaim.