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With companies sending mixed signals about the state of the economy and a White House in the midst of political turmoil, Jim Cramer knows it is hard to tell where you stand in this market.
“I’m curious about a broader turn in dining out, versus the stay at home economy that we always rave about. Fortunately, Red Robin has an analyst meeting Tuesday. That could give us some perspective on this up and down group,” he said. “We need to know if the consumer’s starting to come out of her video-gaming-playing, Facebook-watching home.”
Minneapolis Fed President Neel Kashkari, a known dove, will speak on Monday to his vision of the economy. Cramer expects it to be cautious, but noted that the more hawkish Philadelphia Fed President Patrick Harker will also speak and is likely to express a more positive outlook.
“Will they cancel each other out?” Cramer wondered. “Who knows. All I can say for sure is their utterances will dominate the action next week now that the earnings season is indeed winding down.”
Along with Red Robin’s analyst meeting, Take-Two Interactive, the video game maker behind the Grand Theft Auto franchise, will also report earnings, and it’s no secret that Cramer loves how the rise of gaming correlates with the emerging stay-at-home economy.
He expects good things for Lowe’s because Home Depot’s earnings were so strong, positive trends for Tiffany because the dollar will no longer be a drag on its numbers and sales have been up, and a great story for PVH, which is dominating the hottest apparel market in the world: Europe.
Cramer dubs Costco “non-Amazon-able” due to its card membership fees paired with a discounted offering of bulk items. While the market may be bearish on its stock, Cramer likes Costco’s story, and is looking forward to its Thursday earnings report.
Since his company broke into big data, Foursquare’s new CEO, Jeff Glueck, finds the possibilities for big data companies to be endless.
“I think there is no limit to the industries that are going to be disrupted by mobile data,” Glueck told Cramer on Friday.
With about 100 million places in the world mapped on Foursquare’s servers, the company has made a powerful foray into the big data space, serving 50 of the 100 largest advertisers in the world and roughly 100,000 technology companies.
The refurbished platform allows Foursquare, No. 46 on CNBC’s Disruptor 50 list, and its array of customers to understand people’s movements across 200 countries, giving them an accurate sense of economic shifts and patterns across the globe.
Cramer also inspected a little-known name in the materials technology industry that could benefit from numerous red-hot trends: Versum Materials.
The company was spun off from Air Products, an industrial gas giant. Since the split, Versum’s stock has run up 30 percent, and the “Mad Money” host thinks it still has more room to run.
“I think it’s is a steal,” Cramer said. “At the moment, Versum’s selling for less than 16 times next year’s earnings estimates. That’s crazy when you consider that the company has 16 percent revenue growth and everybody else in that industry sells between 20 and 30 times earnings.”
Now that semiconductor chips are high in demand for an array of devices and chip designers are shifting toward making them three-dimensional, Versum’s business is positioned for profit.
“These 3D chips are made up of more layers, which requires more intensive etching in the manufacturing process — meaning more gases and chemicals from Versum,” Cramer explained.
Put it all together, and the “Mad Money” host blesses the stock as an innovative way to play semiconductors.
“Given the impressive record of recent runs in both chipmakers and, maybe more important, the semiconductor capital equipment stocks like Lam Research and Applied Materials, you know what? I think this little old Versum has got a lot more room to run,” he said.
When it comes to taking market share, Phononic founder and CEO Tony Atti is not scared to show competitors that his semiconductor company outperforms the rest.
“Direct sales and partnerships are key to our market penetration strategy,” Atti told Cramer on Friday. “To keep that momentum that you’re so excited about, and as are we, we need partners as audacious as we are.”
Phononic, No. 33 on CNBC’s Disruptor 50 list, is revolutionizing the mechanics of cooling with thermo-electric cooling technology, which uses semiconductor chips to power refrigerators and freezers.
The company’s newest partnership, announced Friday, is with Thermo Fisher Life Sciences for medical refrigeration. Atti touted it as being an equally “audacious” counterpart to his operation.
Finally, the third day after this week’s selloff, and Cramer saw the buyers coming out of the woodwork.
“Interest rates inched up, which satisfies those who own the bank stocks, gives you hope [that] maybe there are a couple rate hikes coming. Deere put up such good numbers this morning that anything related not just to agriculture but to construction equipment soared. The oils came alive with pleasure over OPEC short-selling badmouthing and natural gas garnered fans thanks to the heat,” he said.
But the “Mad Money” host cautioned eager investors to hold their horses before jumping back into the pool.
“On day three, you stand pat after a successful test. That’s what’s supposed to happen,” Cramer said. “The idea that this could be a win-win scenario for stocks is the kind of thing that terrifies the bears, so while you may have missed the buying opportunity over the last couple of days, I think it might be too early to start selling.”
In Cramer’s lightning round, he shared his take on some caller favorite stocks, including:
Tanger Factory Outlet: “I think [its recently announced stock buyback] is brilliant. I think that’s a brilliant move because I think that Steve Tanger is still going to make money for you because those are experiential malls. Why don’t people get that? It’s different from just a regular mall. It’s experiential outlets. I love it. I bring plenty of cash when I go there.”
Qorvo: “Yeah, Qorvo did break out, because Qorvo reported a not-great quarter and then the stock went up anyway. What does that tell you? It’s either under-accumulation or it’s going to continue to go higher. It is up 43 percent, so we do not want to be pigs. Remember, bulls make money, bears make money, pigs? They get slaughtered. But I do like the stock.”
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