Stock Picking In Fantasy Football Style – Cramer's Mad Money (8/31/17)

Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Thursday, August 31.

“It’s time for me to show my reality, not fantasy, but reality stock team, the one I drafted in my head last night while I was busily putting together what could be a championship Skidaddy Ski team, which, of course, competes in the Mad Money Schlumpadicka league,” said Cramer. He picked stocks in fantasy football style.

At the quarterback is Apple (NASDAQ:AAPL). It is one of the greatest consumer products company. For fleet-footed players who aren’t afraid of some traffic have equivalents as Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Nvidia (NASDAQ:NVDA). These three stocks are one of a kind. There is hardly any competition for Amazon, Netflix’s model is unique and Nvidia is red hot as it is present in video games, autonomous cars and AI.

For the running backs, he picked Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOG). These stocks might seem overvalued now but investors will not regret paying for them later. For the defense play, he picked the strongest stock in Dow Jones – Boeing (NYSE:BA). For the tight end he picked UnitedHealth (NYSE:UNH).

Kicker draft needs a consistent player like Visa (NYSE:V). For the bench, he’d pick Alibaba (NYSE:BABA) as a back-up quarterback, and Celgene (NASDAQ:CELG), Autodesk (NASDAQ:ADSK), 3M (NYSE:MMM) and Honeywell (NYSE:HON) as additional flex players.

“As you can see, this is a team that’s built for the ages, not just built for the season,” he concluded.

CEO interview – Ingevity (NYSE:NGVT)

Ingevity has a good last quarter. Their stock is up 150% since IPO. Cramer interviewed Michael Wilson to know what lies ahead.

Wilson said asphalt additives business will be at full potential during Texas rebuilding. Their products make road building faster and can be done at low temperatures.

Talking about purchase of

improvesthe pine chemicals business from Georgia Pacific, Wilson said they take byproducts from renewable raw materials and distill it which can be used in adhesives, cleaners, paints and more. Just like other deals, this will help the company grow organically.

Ingevity will get bigger when oil prices improve. “I mean, we’re only a $1B company today with about a $3B enterprise value, but we believe we’ve got a great, organic growth story, and on top of that, we do believe there are a number of acquisitions out there that can create a lot of value for our shareholders,” he concluded.


The stock of FMC is up 50% YTD. “From the beginning, ever since I started recommending FMC, I’ve argued that this is an overlooked company with a stock that simply doesn’t get the respect it deserves from Wall Street. Even after its recent run, that’s still true,” said Cramer.

They have two segments -agriculture chemicals business and a lithium business that makes materials for rechargeable batteries. The lithium business accounts for only 10% of overall business and yet the company is announcing a spinoff of by 2018.

For their agri business, they are swapping some assets with DuPont (NYSE:DD) which will be better for FMC. The stock trades at 17 times earnings despite the positives. “Just because FMC’s stock has climbed relentlessly higher, that doesn’t mean you’ve missed a thing. I’m not kidding. There’s a lot of value creation still to come. If you don’t already own FMC, I suggest waiting for the next big market-wide pullback, and then do some buying,” concluded Cramer.

Off the tape

Cramer went off the tape to review the privately held Informatica, a data management and service provider for the cloud computing. Cramer interviewed CEO Aneel Chakravarthy to know more about the company.

Chakravarthy said that Informatica brings all data to one place and in a format the companies can use. Using the data, they can answer basic questions and learn more about their customers with AI. “We partner very well with Salesforce, with Amazon, with Azure, with Google, so we partner really well with anybody who is in the analytics space. We don’t do that. We bring data to them. We like to call ourselves ‘from mainframe to the internet of things and everything in between,’ and that’s how agnostic we are,” he added.

They are also working on a voice enabled AI which is slightly different from Amazon. “We use artificial intelligence to find what data you have where. A lot of customers deal with so much data. They don’t even know basic answers to basic questions, like how many databases do I have? Where do I have customer data? What data is secure? And this is all over the place, in their own enterprises, in the cloud, and it’s growing every day. And AI is a great way of answering those basic questions,” said Chakravarthy.

Viewer calls taken by Cramer

Enbridge (NYSE:ENB): Cramer prefers Magellan Midstream Partners.

Valeant Pharma (NYSE:VRX): It’s getting better but has limited upside for some time.

Ferrari (NYSE:RACE): “If they do the numbers, it’s not that expensive.”


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