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"These are heady times on Wall Street, some would say giddy times," TheStreet's Jim Cramer told his Mad Money viewers on Friday. That's why his game plan follows U.S. stocks and world events.
On Monday, Cramer said, investors should keep an eye on Banca Monte Dei Paschi, Italy's oldest and third-largest bank. A bailout seems completely warranted given its size and capital restraints. At other times this would be on the front page of every newspaper, but not in this environment. Still, he said, it's worth watching.
On Tuesday, 3M (MMM) will host its analyst meeting. The company will benefit from a Trump administration and Cramer said it is a solid core holding for investors. He expects to hear good things for 2017.
On Wednesday, the Federal Reserve will meet. The expectation is that it will raise interest rates. If it doesn't, bank stocks will see a nasty selloff, Cramer warned. Investors are prepared and the economy has improved, so the Fed should hike, Cramer said. General Electric (GE) , a holding in Cramer's charitable trust, Action Alerts PLUS, will also host an analyst meeting. Cramer said investors need more positive catalysts to push the stock higher.
On Thursday, Delta Air Lines (DAL) hosts an analyst meeting. The stock hasn't rallied with its peers but it should on positive commentary, Cramer said. CVS (CVS) and Danaher (DHR) will also host an analyst meetings. CVS is oversold and looks like a buy, while Danaher will likely tell another "amazing story."
On Friday, Agco (AGCO) will hold an investor conference. Although management is unlikely to throw cold water on the story, investors are likely too late to the scene after the stock's big rally.
The market's an Energizer bunny and it's been a remarkable five weeks, Cramer said. But keep things in perspective and don't get too giddy.
Running With Marathon
A few weeks ago, activist investor Elliott Management sent a letter to Marathon's management suggesting a "full strategic review." But let's not jump to conclusions and say Elliott's suggestions should be taken without question, Cramer said.
He dug through the files and pointed to a recent energy play Elliott was involved in: Hess (HES) . This didn't work out so well, Cramer noted. There were open letters in the press from both sides, a proxy fight and plenty of disagreements. However, Hess ultimately gave in and Elliott ended up with three board seats and was seemingly steering the ship.
Hess made a series of untimely asset sales, became more of an exploration and production company at the worst time and then bought back a ton of stock at terribly high prices. The end result? Because it was suddenly lacking diversification thanks to its asset sales, the stock was pummeled more than 70% from peak to trough.
And after buying more than 62 million shares at an average price of $84 between August 2013 and the end of 2014, the company had to sell 25 million shares at $39 in a secondary offering to raise capital.
So here's the bottom line: While activists are smart investors with good ideas, not all of their ideas are reliable. Don't blindly buy into the what they're selling, Cramer said.
Cramer's Shopping List
While the Dow Jones Industrial Average and a number of individual sectors, such as banking, industrials and energy, have been doing incredibly since the election, there's been a number of laggards. In particular, tech has struggled Cramer said.
As a result, he's busting out his "personal shopping list" of down and out but still high-quality tech stocks.
First up? Salesforce (CRM) . The company reported great earnings a few weeks ago, but no one seems to care. Regardless of who's in office, Salesforce will keep growing like crazy. With the stock $13 per share off its highs, it's shaping up to be a buy.
Next up is Adobe. The company's cloud-based software as a service subscription model continues to impress and Cramer expects good earnings next week. Investors looking to buy should buy some now, and then some more if it declines on the results.
At No. 3 is Facebook (FB) , an Action Alerts PLUS holding and a long-term growth company. Given its sizable earnings, the stock is actually cheap on a valuation basis, Cramer reasoned. Investors have backed away from Facebook after its recent conservative guidance, but it's not like it was bad guidance, he explained. There's still plenty of growth left on the table for Facebook, plus its $6 billion share buyback.
Finally there's video games, which are in a long-term secular growth trend. While Cramer likes Take-Two Interactive Software (TTWO) , the stock is still up too much, so he prefers Electronic Arts (EA) .
Executive Decision: Thomas Jorden
For his "Executive Decision" segment, Cramer met with Thomas Jorden, president and CEO of Cimarex Energy (XEC) .
Different companies have different timelines and goals, Jorden said. But at Cimarex, the company has a long-term outlook and is constantly looking to create long-term value. That's why investors willing to stick around for a while are best fit for Cimarex, because over time they will realize that value.
The company is "golden" with $45 oil prices and $2.50 natural gas prices, he added. Just a few years ago, these prices would have seemed fatal. Thanks to innovation, technology and increased productivity though, Cimarex is able to do much better than management or investors would have thought.
It would nice to see regulators working more closely with energy companies, Jorden said. That doesn't mean deregulating necessarily, but working more closely with the companies to make sure transparency and clarity are properly communicated.
Jorden is optimistic on the industry; in particular with Cimarex, he believes the company has the right productivity and innovation to further drive gains.
Cramer said this company has a good balance sheet and impressive technology so he's optimistic on the company's future.
On the show's "Lightning Round" segment, Cramer was bullish on AT&T (T) , Paychex (PAYX) , Wendy's (WEN) , McDonald's (MCD) , Panera Bread (PNRA) , PayPal (PYPL) , Petrobras (PBR) and TransCanada (TRP) .
He was bearish on BP (BP) .
Return to Pratt & Whitney
In his final "Executive Decision" segment, Cramer went on site with Chairman and CEO Greg Hayes at United Technologies' (UTX) Pratt & Whitney jet engine facility in Connecticut.
Earlier this week, Cramer spoke with Hayes at the same facility about jobs in the U.S. and the decision to keep some of UTX' Carrier unit's jobs in Indiana rather than move them to Mexico.
Hayes said the new Pratt & Whitney engines are easier to work on and assemble, therefore increasing productivity. While this results in the company needing fewer employees, more highly skilled workers are needed.
The new jet engines are more energy efficient and leave a smaller carbon footprint than the previous generation of engines. This is important for customers and governments alike, Hayes explained.
It's also important for Millennials. They don't want to work with companies that don't adapt and still operate by the old ways of business, Hayes said.
These jet engines obtain between 16% and 18% better fuel efficiency, which makes up nearly one-third of an airline's costs, Hayes said.
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