3 Bullish And 2 Bearish Calls From Jim Cramer

For the week of January 14, Jim Cramer mentioned 67 companies, 14 of which were rated negatively. These companies are worth taking a closer look. These companies are either in a reversal of fortunes, or were covered by news outlets more than average.

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Table 1:

Jim Cramer Stock Picks

Here's the scoop:

1. Dell Inc. ( DELL): Provides integrated technology solutions in the information technology (IT) industry worldwide. Market cap at $22.31B, most recent closing price at $12.84.

Dell  was a bearish call. Dell may be privatized through a private equity (“PE”) firm or LBO (leveraged buyout). The company has an estimated $6.49 in cash per share and pays a dividend of 2.49%. The problem with Dell’s cash is that most of it is held overseas. Bringing the money back to America could result in taxes. Over its life as a public company, Dell spent more money on share repurchases than it earned.

The current risk for buying Dell at this time is that no deal will materialize, or that the buyout price is at close to the current price of the shares.

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2. Herbalife Ltd. ( HLF): A network marketing company, sells weight management, nutritional supplement, energy, sports and fitness, and personal care products worldwide. Market cap at $4.7B, most recent closing price at $43.50.

Herbalife is ranked negatively. The company is a target of short-selling by a hedge fund manager. Additional hedge funds announced taking a bullish bet on the company. Herbalife shares are up 79.5% already, from its yearly low. In its quarterly earnings, the company forecast volumes rising 18.4% in the next quarter. Growth is expected in all geographic regions, at a double-digit rate. The company also plans to buy shares back, following an aleady-existing share repurchase authorization.
 

 

3. Banco Santander-Chile ( SAN): Provides commercial and retail banking services to corporate and individual customers in Chile. Market cap at $88.35B, most recent closing price at $8.56.

Banco Santander was ranked favorably. The company is proposing to merge with Banesto unit Teavana. Previously, Banco Santander wanted to buy RBS branches, but backed down.
 

 

4. Krispy Kreme Doughnuts, Inc. ( KKD): Operates as a branded retailer and wholesaler of doughnuts, complementary beverages and treats, and packaged sweets. Market cap at $787.86M, most recent closing price at $12.08.

Krispy Kreme shares were ranked favorably. Shares are already at a 52-week high, rallying from around $7 in November 2012 and closing recently at $12.08. At an presentation, the company said that growth will come from expanding in the U.S. and globally. The goal is to have 900 international stores by fiscal 2017. The company also expects same store sales will be at a 4-year high, growing 6.8% in Q3/2013.
 

 

5. SolarCity Corporation ( SCTY): Engaged in the design, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. Market cap at $1.16B, most recent closing price at $15.92.

Cramer said “I was negative about SolarCity, but now I think it is an interesting play. I'm thinking this is a good company and a Buy.” In a separate analysis, SolarCity was previously evaluated as a stock that should not be short-sold at this time.
 

 

( Written by Kapitall's Chris Lau)

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