Cramer: Sell Family Dollar, Buy Boeing, Zynga, and These 3 Stocks
Jim Cramer made the following calls on July 11th, 2013. What do you think about his picks?
Family Dollar Stores Inc. (NYSE:FDO): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on January 16, 2013. The stock’s 52-week high is $72.54, and its 52-week low is $54.06.
Cramer was down on the dollar store last night, harping on their earnings as only being better than people were fearing them to be. As such, he didn’t feel they were impressive and told viewers to look at Dollar General (NYSE:DG) which is opening 650 new stores this year, and despite being up 26 percent this year so far, Cramer told viewers it was still worth owning. Family Dollar’s earnings per share were $1.05, $0.2 higher than estimates.
Boeing Co. (NYSE:BA): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 28, 2013. The stock’s 52-week high is $107.46, and its 52-week low is $69.03.
The airplane manufacturer has been in the headlines a lot this year, facing a plethora of problems with the Dreamliner 787 and just recently having a 777 crashed in San Francisco, although that was attributed to pilot error. Cramer was bullish on Boeing during the show’s infamous lightning round, and recently the company has been in the process of wooing the South Korean government as the country prepares to spend $7.3 billion on new fighter planes.
Zynga, Inc. (NASDAQ:ZNGA): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 2, 2013. The stock’s 52-week high is $5.25, and its 52-week low is $2.09.
Zynga continues to garner Cramer’s favor due to their new leadership. Simply put, he said that “I think the new CEO is a winner. It’s too late to sell and time to buy.” Zynga is following a path that sees it being less reliant on Facebook (NASDAQ:FB) for its user base. In 2011, 93 percent of Zynga revenue was being generated from Facebook’s desktop platform, compared to 76 percent today. New leadership Cramer has insisted, is exactly what the company needs to move forward competitively.
Five Below, Inc. (NASDAQ:FIVE): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 1, 2013. The stock’s 52-week high is $43.04, and its 52-week low is $25.00.
Five Below was the dollar store stock Cramer gave the most love, pointing to its 122 percent return since IPO last year. With the company growing at 31 percent this year, Cramer claimed that there is still substantial demand from institutional investors which will drive this stock higher.
Joy Global, Inc. (NYSE:JOY): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 28, 2013. The stock’s 52-week high is $69.19, and its 52-week low is $47.96.
Despite the mining industry taking a beating this year, highlighted by the plummeting price of gold, Cramer said that Joy could go up, speculating higher coal prices. Cramer’s website previously called the stock a hold, despite highlight some its stronger features, including a margin of “13.34% which compares favorably to the industry average,” as well as, “the current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels.”
Trius Therapeutics, Inc. (NASDAQ:TSRX): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Sell on July 1, 2013. The stock’s 52-week high is $9.87, and its 52-week low is $4.41.
While the Mad Money host did caution using limit orders to purchase this stock, after speaking with chief executive Cramer seemed convinced of the stock’s merits. Chief executive Jeff Stein pointed to the GAIN Act passed last year by Congress as a tool which has allowed them to partner with the Food and Drug Administration to bring their products to market quickly. The company is working on drugs that tackle infections untreatable by current antibiotics as well as getting patients better faster so they can get out of the hospital faster to lower exposure risks.
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