Cramer Says Sell Smithfield, These 2 Stocks; Buy Petrobras, Radian, Instead
Jim Cramer made the following calls on July 24th, 2013. What do you think about his picks?
Smithfield Foods Inc. (NYSE:SFD): Jim Cramer ranked this stock a Sell. The stock’s 52-week high is $33.96, and its 52-week low is $17.55.
There was no lack of wit during the lightning round either, when Mad Money’s host told ‘Cramerica’ that, “You should take that one off the table.” Smithfield has been treading a tricky path to sell itself to a Chinese company and it is not clear how to deal will pan out. Health and safety concerns loom as well as how the Chinese company will deal with the union representing many of Smithfield’s employees.
RetailMeNot, Inc. (NASDAQ:SALE): Jim Cramer ranked this stock a Sell. The stock’s 52-week high is $29.60, and its 52-week low is $26.12.
RetailMeNot became BuyMeNot during the lightning round, and Cramer told his audience to stay away. Instead, he liked the stock when he could pay less for it, saying, “I can’t recommend it up here. We liked it at a lower level.” The company spiked 32 percent on its IPO, and has a gross margin of 94 percent.
VirnetX Holding Corp (AMEX:VHC): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on April 11, 2013. The stock’s 52-week high is $37.65, and its 52-week low is $16.10.
Virnet was a speculation pick made earlier in the year by Cramer, and it has not performed as the host hoped. Virnet is down 48% since he recommended it to viewers, and the company is currently in the midst of trying to win an appeal for over $300 million dollars worth of compensation it received from Apple (NASDAQ:AAPL) for violating its trademarks.
Petroleo Brasileiro (NYSE:PBR): 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 $24.83, and its 52-week low is $12.03.
Cramer told viewers to buy Petrobras last night during the lightning round, reiterating his bullish outlook on the stock. Petrobas has struggled over the last few years, and continues to be subject to a Brazilian government that distorts its business model. However, Cramer was undeterred, saying that, “I want to own it. It is down from its highs.”
Radian Group Inc. (NYSE:RDN): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 23, 2013. The stock’s 52-week high is $14.62, and its 52-week low is $2.65.
Radian has been previously suggested by Cramer, appearing on the show earlier this week based on his bullish view for the housing market, as well as the little competition he feels Radian has in the mortgage insuring space. The road the the housing recovery isn’t without bumps though, and Radian reported a loss for the second quarter of the year.
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