Jim Cramer on MannKind (MNKD), Visa (V), FireEye (FEYE), Linn Energy (LINE)

NEW YORK (TheStreet) -- MannKind  (MNKD) has doubled in value after a Food and Drug Administration panel recommended approval of its insulin drug Afrezza. The subsequent media coverage was extremely positive, but the stock dropped a bit after the FDA delayed its decision. 

TheStreet's Jim Cramer points out that when a stock such as MannKind doubles and approval comes, it tends to sell off and investors can get back into it.

Cramer also notes that Visa  (V) is "getting clubbed" and he needs to do some more research into why the credit card companies are getting hurt. He also calls FireEye  (FEYE) a "high-flyer" that has not been able to stop the decline, but that could change Monday as insider selling runs its course and investors come in to buy it off of several upgrades.

Finally, Cramer says it is unclear if Linn Energy's  (LINE) dividend, which it recently declared, is safe. He notes that Linn bought Berry Petroleum but has yet to demonstrate production growth. Linn has failed to execute in the last two quarters, which has been "dumbfounding" to Cramer.

Must Watch: Jim Cramer on Mannkind, Visa, FireEye and Linn Energy's Dividend

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Separately, TheStreet Ratings team rates VISA INC as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate VISA INC (V) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • V has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, V has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
  • VISA INC has improved earnings per share by 14.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VISA INC increased its bottom line by earning $7.58 versus $3.13 in the prior year. This year, the market expects an improvement in earnings ($8.89 versus $7.58).
  • The gross profit margin for VISA INC is rather high; currently it is at 69.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 44.59% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 154.56% to $1,541.00 million when compared to the same quarter last year. In addition, VISA INC has also vastly surpassed the industry average cash flow growth rate of 17.47%.
  • You can view the full analysis from the report here: V Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Separately, TheStreet Ratings team rates LINN ENERGY LLC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate LINN ENERGY LLC (LINE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 7.8%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $225.70 million or 9.31% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.34%.
  • LINN ENERGY LLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LINN ENERGY LLC reported poor results of -$2.78 versus -$1.86 in the prior year. This year, the market expects an improvement in earnings ($1.61 versus -$2.78).
  • Currently the debt-to-equity ratio of 1.56 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.43, which clearly demonstrates the inability to cover short-term cash needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, LINN ENERGY LLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: LINE Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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