Game Plan For The Week – Cramer's Mad Money (5/11/18)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Friday, May 11.

The last week gain was the largest since March. Can this optimism with US-China relations continue? “To some degree, I think that’s wishful thinking. But, hey, wishful thinking worked when it came to the unlikely progress between North and South Korea, so maybe this optimistic spin on trade makes more sense than the pessimistic one,” said Cramer. With that, he discussed the game plan for the week.

Monday

Earnings: Mazor Robotics (NASDAQ:MZOR)

“I like to think of Mazor as the son of Cramer-fave Intuitive Surgical, which has had a multi-year move,” said Cramer. He thinks the stock has become expensive and investors should wait for it to come down.

Tuesday

Earnings: Home Depot (NYSE:HD)

Cramer expects the company to have a blowout quarter yet again.

Wednesday

Earnings: Macy’s (NYSE:M), Take-Two Interactive Software (NASDAQ:TTWO) and Cisco Systems (NASDAQ:CSCO)

Macy’s stock went down after an analyst downgrade on potential sales weakness and the idea that profits from real estate are behind them now. Cramer doesn’t agree with either view. “Gennette still has plenty of optionality with real estate and he’s just beginning his overhaul of the chain, with an emphasis on local neighborhoods and much more curated fashion,” said Cramer.

Cramer expects good numbers from Take-Two that will launch a new game in its Red Dead Redemption franchise later this year. On the other hand, Cisco has transformed itself from software development and the IoT company from which Cramer expects a nice quarter.

Thursday

Earnings: Walmart (NYSE:WMT), J.C. Penney (NYSE:JCP) and Nordstrom (NYSE:JWN)

Cramer thinks the acquisition of Flipkart (FPKT) was a good move by Walmart. “At this point, the stock is so low that I have to believe a weak earnings number will get ignored, and a number that’s even just a little bit positive gets this stock moving higher again,” he added.

J.C. Penney hasn’t been able to deliver in the last few years and a good earnings report can push the stock higher. The company has no differentiating factor though. Nordstrom, on the other hand, is a low-risk stock due to the comeback of retail. “I expect they’ll talk about how strong the spring will be,” said Cramer.

Friday

Earnings: Deere (NYSE:DE) and Campbell Soup (NYSE:CPB)

“Deere’s been a long-term winner as farmers around the world are pretty flush right now with cash and can afford to spend on new machinery,” said Cramer. They will rise after a good earnings report.

Campbell Soups is a part of a beaten down sector. “The company’s worked mightily to become more natural and organic, but its older products are still what define the business,” he added.

CEO interview – Prologis (NYSE:PLD)

Prologis acquired DCT Industrial (NYSE:DCT) for $8.4B. Cramer interviewed CEO Hamid Moghadam to find out more about the deal.

Moghadam said that DCT’s strategy and portfolio were closest to that of Prologis. The combination will allow the company to have a better platform to serve their customers and create scale which will reduce costs in the long term.

Roughly 2% of the world’s GDP moves through Prologis’ buildings and the new company will be able to leverage data to boost its prospects. “We haven’t even started to scratch the surface on the information side and the information opportunity of the business,” he added.

The combined entity will have 750M sq ft of space in well-located properties.

CEO interview – Nice Systems (NASDAQ:NICE)

The data and analytics provider Nice Systems reported good earnings and revenue growth. Cramer interviewed Barak Eilam to hear more about the quarter.

Eilam said the company uses its analytics tools to improve customer experience and fight financial crime. They monitor financial transactions in real-time by connecting with financial institutions and identify illegitimate transactions.

The company is using the cloud and AI to grow. “The beauty of our cloud story is that we are not cannibalizing our own base. We actually use cloud in order to grow our total addressable market fivefold,” added Eilam. Their flagship platform CXone has enabled the company’s ability to grow into the cloud on a rapid basis.

Michael Kors (NYSE:KORS) and Molson Coors (NYSE:TAP)

Cramer reiterated that investors should know the difference between broken stocks and broken companies. He compared two companies with similar names – Michael Kors and Molson Coors.

Michael Kors was a fast growing handbag maker which saw weakness in 2014. Its growth slowed down for the next two years, after which it acquired Jimmy Choo for $1.35B. Since then, the stock has rallied on a great outlook for 2018. Michael Kors was a broken stock which found its way back.

On the other hand, high-flying company Molson Coors acquired MillerCoors from Anheuser Busch InBev (NYSE:BUD), which was thought to be a great deal that would be accretive to earnings. However, the deal turned out to be ill-timed as beer sales fell in the states where cannabis is legal and mass market beer sales were going down in favor of craft brews.

Kors trades at 13 times earnings and Coors at 12. Cramer prefers the former.

Viewer calls taken by Cramer

Control4 Corp. (NASDAQ:CTRL): It’s off the highs due to fear of competition from Amazon in home automation.

US Concrete (NASDAQ:USCR): Cramer is surprised this stock is down. Stick with it.

Weibo (NASDAQ:WB): Cramer likes Baidu (NASDAQ:BIDU) as a social media play.

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