Jim Cramer made the following calls on July 17th, 2013. What do you think about his picks?
Pepsico, Inc. (NYSE:PEP): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 16, 2013. The stock’s 52-week high is $85.51, and its 52-week low is $67.39.
As mentioned before, the suggestion from Nelson Peltz that Pepsi takeover Mondelez has speculators eager with anticipation. Cramer’s buy call for the stock came earlier in the week, though, making this news icing on the cake. The Mad Money host feels that there is opportunity for value because of the differing business model from competitor Coca-Cola (NYSE:KO). While Coke’s most recent quarterly report was disappointing, Cramer said, Pepsi’s diverse business operations including healthier snack foods make it promising for the future.
Mondelez (NASDAQ:MDLZ): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Sell on February 8, 2013. The stock’s 52-week high is $42.54, and its 52-week low is $24.50.
Money manager Nelson Peltz caught Cramer’s attention at the Delivering Alpha conference when he speculated that Pepsico (NYSE:PEP) could takeover Mondelez, prompting a buy recommendation from the Mad Money host. Peltz’s suggestion that Pepsi buy Mondelez has been dominating headlines surrounding the company. Such as sale would bring such brands as Cadbury and Doritos together in one company. Peltz has asked shareholders of Pepsi to write to the company in support of his proposed deal.
Occidental Petroleum Corporation (NYSE:OXY): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 26, 2013. The stock’s 52-week high is $95.57, and its 52-week low is $72.43.
During the lightning round, Cramer called the buy suggestion for Occidental, part of a larger bullish outlook on energy stocks. The U.S. has been in the midst of an energy boom for some time now, and yesterday’s Energy Agency Report showed that the supply of petroleum products continues to rise in the U.S., and the International Energy Agency is predicting greater global demand for oil next year as well. However, the only looming concern for oil investors is the possibility that supply could grow faster than demand in the next year, as well as sluggish Chinese growth, both of which could put a damper on prices.
Radian Group Inc. (NYSE:RDN): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 4, 2013. The stock’s 52-week high is $14.34, and its 52-week low is $2.65.
Cramer’s interview with hedge fund manager John Paulson made him a believer in a long term positive perspective on the housing market, looking to assets such as AAA-rated mortgage bonds as the proper exposure for this perspective. As a mortgage insurer, Radian made the cut for the T.V. host, although he warned against home improvement companies, since they are more subject to a short term decline in housing as the market adjusts to rising interest rates. Radian’s conference call is scheduled for July 24th, and the stock has been on the move upwards recently, up nearly 2 percent in pre-market trading today already.
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