Cramer: Buy Starbucks, Student Transportation, and These 2 Stocks; Sell Smith & Wesson
Jim Cramer made the following calls on July 29th, 2013. What do you think about his picks?
Starbucks Corp. (NASDAQ:SBUX): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 25, 2013. The stock’s 52-week high is $73.52, and its 52-week low is $43.04.
Starbucks has been getting the green light from Cramer for a while now, and after remarkable earnings, continues to advocate the stock. Margin expansion, and a 13 percent year-over-year revenue growth drove the stock up, and Cramer doesn’t think it will stop there. He also noted the lack of complaints in the conference call about economic conditions weighing on the company, certainly something which bodes well for the stock as the global economy remains shaky.
Student Transportation, Inc. (NASDAQ:STB): Jim Cramer ranked this stock a Buy. The stock’s 52-week high is $7.12, and its 52-week low is $5.75.
Dennis Gallagher, president and chief executive officer of Student Transportation was another executive making an appearance on last night’s show, and talked to Cramer about the state of his business. Gallagher noted the increased room for privatization in the transportation of school students, and also highlighted the cheap capital the company has access to, at around 2 percent. Also benefiting the company is cheap natural gas, which has prompted the Student transportation to invest in natural gas-powered buses. Cramer liked it as a speculative play.
R.R. Donnelley & Sons Company (NASDAQ:RRD): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 24, 2013. The stock’s 52-week high is $16.30, and its 52-week low is $8.30.
Tom Quinlan, president and chief executive officer of R.R. Donnelley came on Mad Money last night to tell Cramer about his business. Quinlan highlighted diversification of Donnelley’s buisness strategy, moving from primarily phone book printing, to a more diverse array of print offerings for clients, including quarterly financial reports and insert materials for various products. Net sales grew modestly from the first quarter 2012, up 1.7 percent to $2.6 billion.
Silver Wheaton Corp. (NYSE:SLW): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on March 7, 2013. The stock’s 52-week high is $41.30, and its 52-week low is $17.75.
Cramer was most eloquent in telling viewers to stay away from this stock during the lightning round, gracefully saying, “No, no, no, no, no.” Silver Wheaton is not scheduled to post earnings until August 14th.
Smith & Wesson Holding Corporation (NASDAQ:SWHC): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on April 25, 2013. The stock’s 52-week high is $11.40, and its 52-week low is $7.40.
“No, if I want guns, I’m going to own Cabela’s (NYSE:CAB),” Cramer told viewers during the lightning round. Cabela’s has been showing a lot of growth, posting revenue gain of 20.7 percent year-over-year from the second quarter last year, and retail store revenue growth of 25.8 percent. Cramer felt this was a better exposure to the market than being involved in the iconic American gun brand.