Cramer Says Go for Sprint, Joy Global, and This Stock; Says Sell Rackspace
Jim Cramer made the following calls on July 18th, 2013. What do you think about his picks?
Sprint Nextel Corp. (NYSE:S): 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 $7.14, and its 52-week low is $5.91.
“I like Sprint. CEO Dan Hesse, please come on the show and talk about the national plan.” So said Cramer last night, trying to get another executive to come on his “Executive Decision” segment. John Paulson, a hedge fund manager, and someone who has Cramer’s ear on real estate, likes competitor T-Mobile on the bet that Sprint could take them over. In a letter to clients he noted that, “While the merger closed, we continue to hold the stock as we believe that T-Mobile remains a potential takeover target for either Dish or Sprint.”
Joy Global (NYSE:JOY): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 11, 2013. The stock’s 52-week high is $69.19, and its 52-week low is $47.96.
Mike Sutherlin, chief executive officer of Joy, sat down with Jim Cramer last night to discuss the poor performance of a stock Cramer himself owns in his charitable trust. On top of fears of the slowdown in China, Sutherlin chalked it up to a larger misperception about Joy Global, with people assuming they are more in the capital supply business than they actually are. Nearly 60% of Joy’s business comes from service and support services in the after-market, an area which Sutherlin says is on more solid ground. Joy’s second quarter financials were released at the end of May and showed an overall decline in revenue since this time last year.
Opko Health Inc (NYSE:OPK): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 17, 2013. The stock’s 52-week high is $7.83, and its 52-week low is $4.00.
Opko health made it into Cramer’s good grace during the lightning round, when he told viewers that, “”I think you hold it. I think you let it come in a little bit. I’ve been recommending it, I like the stock. I want to see it come in.” Perhaps a bit more tentative than some of his other recommendations, share’s are already up over 50 percent on the year, complete with a notable amount of insider buying. Frost Phillip Md Et Al, chief operating officer, bought 20,000 shares worth of the company, or $138,000 worth earlier this month.
Rackspace Hosting, Inc (NYSE:RAX): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on June 13, 2013. The stock’s 52-week high is $81.36, and its 52-week low is $33.91.
One of few sell calls on the show last night, Cramer was not thrilled over Rackspace. “Too commodity. That is the wrong place to be,” he said, while promoting fellow cloud competitor SAP AG (NYSE:SAP). Second quarter financial results are scheduled for August 8th, and the stock is currently trading slightly more than half its 52-week high. On July 10, Cramer’s website noted that the stock was trading at unusually high volumes and issued a ‘hold’ rating, saying that, “The company’s strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.”