Jim Cramer: Sell Coke, Deluxe; Buy Amazon and These 2 Stocks
Jim Cramer made the following calls on July 16th, 2013. What do you think about his picks?
The Coca-Cola Company (NYSE:KO): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on April 17, 2013. The stock’s 52-week high is $43.43, and its 52-week low is $35.58.
After a recently quarterly report which told investors that net revenues declined 3% in the second quarter and 2% year to date, Cramer was frustrated with the stock and told viewers that, “I’m not buying the excuses.” Coke indicated that macroeconomic woes and bad weather have been reasons for the slowdown, but the Mad Money host wants nothing to do with that, and told viewers to get in Pepsico (NYSE:PEP) instead, pointing to a stronger more diverse business model as a catalyst for growth.
Deluxe Corp. (NYSE:DLX): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on February 29, 2012. The stock’s 52-week high is $42.50, and its 52-week low is $25.91.
Cramer shot down Deluxe Corp. during the lightning round, one of several stocks he wasn’t enthusiastic about. The show’s host was honest in his reasoning for selling Deluxe, saying that, “It’s a great company but it doesn’t have the growth. I’m not going there.” Growth aside the company certainly has some interesting products. Deluxe recently made an app available via its Facebook page that attempts to profile American small business owners to learn more about the reasons for entrepreneurship and risk taking in the United States. Its quarterly results are due to come out next Thursday, July 25.
Amazon.com Inc. (NASDAQ:AMZN): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on June 25, 2013. The stock’s 52-week high is $309.39, and its 52-week low is $214.95.
Cramer liked Amazon, pointing to its strong performance despite trading at such high levels. His bullish outlook on Amazon was a part of last night’s larger message, which was to get viewers to stop worrying. Cramer was negative on negativity, and told viewers that Amazon was still worth buying. He was referring to negative outlooks generated by fears of higher interest rates, expensive gas, overvalued stocks, but didn’t see this as a deterrent to investing, rather, he viewed the quarterly reports and a company’s performance as the only thing that matters. Amazon’s quarterly results will be webcast next Thursday, July 25.
Advanced Micro Devices, Inc. (NYSE:AMD): 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 $5.07, and its 52-week low is $1.81.
Cramer has advocated AMD for a while now, and when he came up again on last night’s lightning round, he hadn’t changed his tune. He thought the stock was cheap enough previously, and told viewers last night that, “I’ve been recommending this one.” However, reality might not match Cramer’s outlook, with the quarterly report tomorrow predicted by analysts to show a loss. AMD has seen revenue drop 23 percent and 32 percent in the last two quarters, respectively.
Exelixis, Inc. (NASDAQ:EXEL): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on November 26, 2012. The stock’s 52-week high is $6.95, and its 52-week low is $4.19.
Calling this a speculative play, Cramer liked it for those with an apatite for risk. Cramer’s website was quite bearish on the stock in February, saying that its a sell due to “its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.” However, since then the company has been testing a drug for Thyroid cancer which showed positive results in its phase 1 trial, perhaps a catalyst to turn the companies fortunes around.