Game Plan For The Week – Cramer's Mad Money (11/17/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Friday, November 17.

The market’s rally on Friday was irrational and was not about earnings. Despite good earnings, the positive action in the respective stocks could be seen but the overall market was determined by external factors. Cramer expected the coming week to be similar. With that, he discussed the game plan for the week.

Monday

Agilent Technologies (NYSE:A): Agilent has been reporting upside surprises consistently. “It’s remarkable how consistent this company is, and the stock hit a new high today. I would not be surprised if it’s got more room to run,” said Cramer.

Urban Outfitters (NASDAQ:URBN): While the stock of the company has gone up as the earnings come close, Cramer is not sure if it can run after the report. It can rally due to short-covering, but Cramer said there are better stocks to buy.

Palo Alto Networks (NYSE:PANW): Though their last quarter was strong, Cramer is concerned that Cisco could be taking market share from them. “While I think the world of Palo Alto’s CEO, Mark McLaughlin, I want to watch this one and wait here, mainly because the stock was up so big today,” he said.

Intuit (NASDAQ:INTU): Intuit has been doing well and Cramer is bullish on it this time as well.

Tuesday

Lowe’s (NYSE:LOW): It’s a good stock but Cramer thinks it’s not worth buying going into the earnings as it hasn’t been performing as well as Home Depot (NYSE:HD).

Salesforce (NYSE:CRM): They have been a consistent performer. “Each time I’m blown away by all the new clients and all the business they’re doing around the world. I think Salesforce goes higher, as CEO Marc Benioff just keeps winning contract after contract, but please don’t buy the first tick of the trade if it’s up,” said Cramer.

Hewlett Packard Enterprise (NYSE:HPE): “I’m as negative on it as I am positive about HP. That’s the one that’s got the PC and the printers, and it’s continually blown away the numbers,” said Cramer. It has a lot of competition.

GameStop (NYSE:GME): The decline of brick and mortar will affect their earnings.

Cramer was bullish on the earnings of Dollar Tree (NASDAQ:DLTR) and Analog Devices (NASDAQ:ADI). However, he took a pass on Medtronic (NYSE:MDT) and Burlington Stores (NYSE:BURL).

Wednesday

Deere & Company (NYSE:DE): The agriculture stocks are in the middle of an up cycle. Cramer expects a good earnings report and thinks the stock is a buy.

“Here’s the bottom line: there are a lot of great earnings reports coming early next week, so pay attention before everyone goes away for Thanksgiving,” he concluded.

CEO interview – Applied Materials (NASDAQ:AMAT)

The stock of Applied Material went up on good earnings and is up 75% for the year. Cramer interviewed CEO Gary Dickerson to hear what lies ahead.

“There’s never been a better time to be an investor in the company’s 50-year history,” said Dickerson. He added that trends like big data and AI are changing the competitive landscape and Applied Materials is at the center of that growth. “We see this in retail today, health care, transportation, many, many, many different areas. And at the foundation of that technology is Applied Materials with materials innovation,” he said.

Companies are competing digitally by investing in smart devices and better displays and it benefits Applied Materials. “That is fueling our business. That’s something we’ve never seen in the history of our company,” added Dickerson.

With the growth in smart devices, the company’s sensor technology, memory power and data retention get a boost which is now in a multi-year growth phase. “The memory business is also growing at a rate we’ve never seen before. All of these smart devices are creating a tremendous amount of data. Data’s exploding. The profitability of memory companies is better than we’ve ever seen. And also, to really capture the value, you have to take the data and process it with high-performance computing. And the fundamental technology for high-performance computing and A.I., those materials come from Applied Materials,” he said.

Dickerson thinks big data and AI will transform the industry in the next 10 years and all these are multi-year growth drivers for the company.

Chinese IPOs

Cramer said investors should not put their money in a stock if they don’t know what the company does and especially if it’s Chinese. The IPO market is getting hot.

There have been 149 deals in 2017 which is more than 50% up from last year. Eleven of these are Chinese IPOs and of those, nine were in the last nine weeks. This is a serious red flag.

Six out of the eleven deals are up from where they went public and five are down. “There’s been a great deal of justifiable skepticism surrounding many of these names,” said Cramer. China Rapid Finance (NYSE:XRF) had to lower its IPO range before going public but the stock has recovered. Best (NYSE:BSTI) had to reduce the number of shares being offered and slash its price range by 25%. Secoo (NASDAQ:SECO) also opened below its price range and the stock is going down.

Qudian has got too hot too fast. Investors had second thoughts after the IPO priced and the stock has gone down. “If you bought this thing when it started trading, you’ve been crushed,” said Cramer. “Looking at all of these deals from the People’s Republic, a couple of things jump out at me. For starters, four of the eleven Chinese IPOs this year have been education companies,” he added.

“This recent spate of smaller Chinese IPOs are not for homegamers like you. If you don’t understand a company, you shouldn’t be playing with its stock, which is why so many people have gotten burned on these deals,” concluded Cramer.

Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) are some stocks whose finances are like American companies.

CEO interview – Owens Corning (NYSE:OC)

Owens Corning reported a decent quarter and the stock is going up steadily after a brief down tick on the earnings report. It’s up 66% for the year. Cramer interviewed Chairman and CEO Mike Thaman to find out more about the quarter.

Thaman said that the company is seeing 10% revenue growth. As home equity rises, home owners are investing in roofing projects. “We’ve had all these years of very weak re-roof demand where storms were defining the marketplace. People are putting new roofs on their house, and as a result, we’re seeing that core roofing market, which is our bread and butter, really come back and sustain great performance,” he added.

Storms are still a major driver and the recent hurricanes in Texas and Florida have led to a growth in their business. The company has also been making inroads in the insulation business by making smart acquisitions. They are now a leader in insulation and have product offerings for different temperatures in the US, China and Europe. Their insulation is also produced with 100% renewable energy.

Amazon (NASDAQ:AMZN)

Amazon has become a powerful giant and it is affecting many industries. Not only do they have a lot of cash and incredible leadership, but consumers also love Amazon.

“As the legendary cable operator John Malone told David Faber yesterday, Amazon is a ‘Death Star’ moving in ‘striking range of every industry on the planet.’ For now, Amazon is indeed the Death Star,” said Cramer. That’s one of the prime reasons stocks like CVS Health (NYSE:CVS) and Walgreens (NASDAQ:WBA) have gone down in recent months because investors know that once Amazon enters the industry and starts offering same-day delivery for prescriptions, consumers will buy it.

Viewer calls taken by Cramer

Foot Locker (NYSE:FL): The stock is down for the year and Cramer thinks it has room to run up. Hold it.

Supervalu (NYSE:SVU): It’s not a great stock due to competition. Sell it.

MongoDB (NASDAQ:MDB): Cramer likes the stock although it could be a little expensive.

Twilio (NYSE:TWLO): Don’t sell it now. Let it get to $30 before selling some.

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