Jim Cramer: Buy Starbucks, Macy’s, and These 2 Stocks, Sell Millennial Media
Jim Cramer made the following calls on June 28th, 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 June 27, 2013. The stock’s 52-week high is $61.15, and its 52-week low is $43.04.
While Starbucks is in a bit of trouble in the U.K. over not paying taxes, the price of green coffee beans are at an all time low, padding the margins for coffee makers. Moreover, Starbucks increased prices last week in an attempt to bolster margins further, and presumably to help shore up its struggling position in the U.K., where it lost 30 million pounds in the last year.
Macy’s, Inc. (NYSE:M): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 27, 2013. The stock’s 52-week high is $50.00, and its 52-week low is $32.31.
Finish Line (NASDAQ:FINL), has teamed up with Macy’s, having opened 60 branded shops in Macy’s stores nationwide. The retailer hopes to have 180 stores in Macy’s by the end of the year. Macy’s also recently launched a digital business, which the company claims is doing well. Finish Line’s long-term goal is to reach $2.2 billion in sales within 4 years with Macy’s adding $250 to $300 million.
US Airways Group, Inc. (NYSE:LCC): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on May 31, 2013. The stock’s 52-week high is $19.70, and its 52-week low is $9.74.
According to Jim Cramer’s website, thestreet.com, reasons for the rating include the following: “The company’s strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.”
Wyndham Worldwide Corporation (NYSE:WYN): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on March 12, 2013. The stock’s 52-week high is $65.30, and its 52-week low is $47.74.
To quote Cramer from last night’s show, Wyndam is a “tremendous opportunity.” The company recently opened its first resort in Ecuador, in addition to receiving an award from TripAdvisor recently for its Waterscape property in Fort Walton Beach. The award is given only to establishments consistently receiving outstanding customer reviews on TripAdvisor’s website. The plans to launch in Ecuador represent a larger plan on the part of the company to expand its brand into Latin American markets.
Millennial Media Inc. (NYSE:MM): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on February 21, 2013. The stock’s 52-week high is $16.86, and its 52-week low is $5.87.
Millennial Media is in the process of rolling out new video advertising technology which will allow advertisers to add content which consumers can engage with, otherwise not available through other media mediums. Moreover, it’s being reported that Millennial has partnered with Mediahub/Mullen on the deal, according to the report, “Mediahub/Mullen and Millennial Media announced a mobile advertising partnership. As part of the deal, Mediahub/Mullen will gain early access to new creative units and other mobile advertising products from Millennial Media, with the option to serve as a beta partner and use the new technology to benefit their clients. In addition, Mediahub/Mullen will provide consulting and feedback to Millennial Media to help shape and evolve the products.”
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