Cramer: Sell J.C. Penny, BHP Billiton; Buy Google, This Stock Instead
Jim Cramer made the following calls on July 12th, 2013. What do you think about his picks?
J. C. Penney Company, Inc. (NYSE:JCP): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on April 9, 2013. The stock’s 52-week high is $32.55, and its 52-week low is $13.55.
Commenting that, “I like the new CEO but that’s not a reason to own the stock,” Mad Money host Jim Cramer warned his viewers from buying J.C. Penny during the lightning round. The company has struggled in the wake of tepid economic growth. In telling people to sell, Cramer’s website points out that, “its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow,” make the reasons to own this stock few and far between.
BHP Billiton Ltd. (NYSE:BHP): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on September 12, 2011. The stock’s 52-week high is $80.54, and its 52-week low is $55.66.
“This one is going to keep going down with China. I would still ring the register. I don’t want you in there.” That is what the Mad Money host had to say about BHP, pointing to recent worries about Chinese economic slowdown as a main reason to sell. Chinese growth is expected to be at 7.5 percent this year, its slowest rate in 23 years. As Chinese consumption slows, companies dependent on rapid expansion there are apt to find themselves in a tough situation, particularly in Australia where commodities are exported to energy-hungry China.
Epizyme, Inc. (NASDAQ:EPZM): Jim Cramer ranked this stock a Buy. The stock’s 52-week high is $39.66, and its 52-week low is $18.60.
Cramer felt that this stock, despite being up 140 percent since its IPO six weeks ago, still has promise for investors. With the company’s chief executive Robert Gould on Friday’s show, the two explored the ways in which Epizyme’s understanding of the human genome has led them to target cancer in a new way. Epizyme hopes to target the factors that make cells cancerous in each individual, while avoiding so0called “carpet-bomb” treatments like marrow transplants and the like. While their drugs are still in phase I testing, Cramer noted the room for growth when the products head to market.
Google Inc. (NASDAQ:GOOG): 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 $923.00, and its 52-week low is $568.40.
Google is likely to see an upgrade from analysts, according to Cramer, who rated the stock a buy for his viewers. Google has recently found itself trading at its 52-week high, with healthy metrics to boot. According to Cramer’s website, “The company’s strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels.”