Cramer: Buy Microsoft, Netflix, Pepsi, and These 2 Stocks
Jim Cramer made the following calls on July 16th, 2013. What do you think about his picks?
Microsoft Corporation (NASDAQ:MSFT): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 18, 2013. The stock’s 52-week high is $36.43, and its 52-week low is $26.26.
Microsoft came up during the lightning round last night to which Cramer told viewers to buy. While Microsoft is trading just off its 52-week high, the company was nevertheless still a bull for the Mad Money host, and has been recently selected by the city of San Jose, CA for a rather expansive deal. Microsoft will expand the productivity of 5,000 city employees through various software, and offer improved services near nearly 1 million people in the area mainly through its Office 365 suite.
Netflix, Inc. (NASDAQ:NFLX): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 21, 2013. The stock’s 52-week high is $266.37, and its 52-week low is $52.81.
Netflix is also nearing its 52-week high, trading within 3 dollars of 266 in pre-market activity this morning. Cramer noted the success of such high trading stocks while sounding optimistic of the video watching service’s chances to go higher. Netflix has recently finalized a deal with CBS to continue licensing shows from them to offer its subscribers, including “CSY:NY” and “L.A. Complex.” It has made a similar deal with PBS as well, procuring the rights to an array of documentaries and children’s shows.
Pepsico, Inc. (NYSE:PEP): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on April 26, 2013. The stock’s 52-week high is $84.92, and its 52-week low is $67.39.
Pepsi is trading just 90 cents off of its 52-week high, but Cramer sees 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. With regards to Coke, Cramer said that, “I’m not buying the excuses,” referring to claims made by Coke that macro-economic conditions and poor weather were responsible for their weak performance.
Petroleo Brasileiro (NYSE:PBR): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Sell on February 7, 2013. The stock’s 52-week high is $24.83, and its 52-week low is $12.03.
Petrobas, Brazil’s flagship oil company, has been struggling for some time now, in part due to the way the government handles fuel prices within the country. However, Cramer discussed the stock with colleague Tim Collins last night who felt that it could return investors some cash before the end of the year, specifically 10 to 20 percent. Petrobas is down 80 percent from its 2008 high, and Collins felt that if the stock were to break through its current $14 threshold, there’s no limit to how far it might run.
Valero Energy Corp. (NYSE:VLO): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 10, 2013. The stock’s 52-week high is $44.76, and its 52-week low is $22.54.
Valero also made it into Cramer’s good grace, going so far as to say that Valero is trading “ridiculously cheap.” Pointing to a higher stock price on bad news, Cramer thought this was revealing that sellers had already gotten out, leaving room for higher movements in the price. Valero went up 3.8 percent on news it announced indicating a quarterly loss. Mad Money’s host says that once the company spins off more of its businesses to maximize efficiency, good things could happen when the news turns positive.
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