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NEW YORK (TheStreet) -- More listening and less buying. That's what Jim Cramer told his Mad Money viewers they should be doing during next week's trading. Cramer said as global tensions ratchet up the worry, investors need to raise cash and stay largely on the sidelines.
On Monday, Cramer said he'll be watching Cummins (CMI) and Herbalife (HLF). He said Cummins is problematic as investors flee the industrials, while Herbalife needs to response to activist Bill Ackman's latest allegations.
Tuesday brings earnings from UPS (UPS), Twitter (TWTR), Bullafo Wild Wings (BWLD) and Panera Bread (PNRA). Cramer said UPS will offer a great read on global commerce while Twitter is likely to wither in Facebook's (FB) shadow. He was bullish on Wild Wings but expects Panera to continue lower.
In other news, non-farm payroll numbers will be released on Friday. Cramer said he expects employment to be strong. He also suggested picking up shares in Synchrony, the General Electric (GE) spinoff that will see its initial public offering at some point next week.
Amazon vs. Starbucks
What should happen is not always what does happen, Cramer reminded viewers as he examined the earnings from Amazon.com (AMZN) and Starbucks (SBUX). Cramer owns Starbucks for his charitable trust, Action Alerts PLUS.
Cramer said both stocks got hit hard after they reported earnings. Amazon told analysts that it's doing what its always done: spend, spend, spend in the name of world domination. With losses widening to 2012 levels, some analysts abandoned ship, a move Cramer said was totally justified for a company that doesn't seem to care what analysts think anyway.
But then there's Starbucks, a company that's focused on world domination and profitability. Starbucks delivered a 7% increase in same-store sales, expanded in China and was still able to deliver profits for shareholders. Trading at 28 times earnings with a 22% growth rate, Cramer said the selloff in Starbucks, unlike Amazon, is a buying opportunity.
There are two things that are important when analyzing a company's quarterly report, Cramer told viewers: the earnings and the company's credibility. That's why when chipmaker Advanced Micro Devices (AMD) delivered hideous numbers and guidance well below estimates but management declared everything was coming up roses, Cramer threw the red flag.
Cramer said when a company's management refuses to acknowledge reality, that's a really big problem. So when rival Intel (INTC) delivered incredible numbers, including an uptick in PC market share, Cramer was expecting AMD to deliver an apology and a plan to turn things around.
Yet, AMD management patted itself on the back, noting the company is executing on its strategy to deliver consistent performance. Consistent performance? Cramer said AMD disappointed on all five of its last quarterly reports.
The company also touted strong demand for video game consoles as a big win, but Cramer noted that's a bad thing if AMD's whole strategy rests on video game consoles. AMD also noted that 40% of sales is now stemming from high-growth areas such as video games, but Cramer said "high-growth" sales are only increasing as a percentage because the company is losing PC market share so quickly.
Cramer said it's time AMD's management seriously examines its prospects and investors seriously examine why they own this troubled company.
After years of being lost in the wilderness, Cramer said Citigroup finally has a clear path to a higher valuation. That's a good thing as the bank currently trades at just 0.85 times its tangible book value, making it the cheapest bank out there. Thanks to continued cost cuts, Cramer said he agrees with Cooperman's price target of $60 a share or a 20% premium to where it trades today.
Cooperman's other idea: Gaming & Leisure Properties, a real estate investment trust that invests in, you guessed it, casino and hotel properties. The stock currently yields a hefty 6% but management feels it could double the payout because there are still $40 billion worth of casino properties the company could acquire. The company's business model is simple -- buy the land a casino sits on, then lease the property back to the casino. Cooperman's price target on Gaming & Leisure was $45 a share, for a 29% gain.
In his "Homework" segment, Cramer followed up on some stocks that stumped him during earlier shows. He said that he can't recommend Builders FirstSource (BLDR) with the housing market spotty. Cramer was more optimistic on Omeros (OMER), an early-stage biotech company that he called "super-speculative."
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt