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Even when FANG shares go bad, they're still incredible companies, "said Jim Cramer at his Crazy money viewers on Wednesday. The real question is how high can their stocks be if they start coming back.
Cramer said that after several price cutbacks, Facebook (FB) is still the only game in town if you want to sell your products to the millennial generation. That's why the stock closed up 3.8% despite the negativity that surrounds it.
Amazon's shares (AMZN) have risen from $ 2,000 to $ 1,600 as a result of many fears, including competition from IBM (IBM) following the acquisition of Red Hat (RHT); Walmart Competition (WMT), which now pays its workers less than Amazon's new minimum wage; and yes, the profits of the company, which missed a dime of revenue. Cramer said that he was not worried about any of these issues.
Netflix (NFLX) had a fabulous quarter but still sold. This means that investors can buy the stock and get free last quarter results, and even more.
Finally, there is Alphabet (GOOGL), which lacks both profit and income, but remains incredibly attractive. Cramer said the company was only beginning to monetize Waymo and that growth would be even bigger.
What do all these stocks have in common? Just their FANG acronym, which Cramer now says he would have never invented. Now that the ETFs have linked these four stocks together, they are trading equally, even if they are all fabulous in their own way.
Cramer and the AAP team add to their position in Schlumberger (SLB), but reduce PayPal (PYPL). Find out what they say to their investment club members and join the conversation with a free trial subscription at Action Alerts PLUS.
Executive decision: Clorox
For its "Executive Decision" segment, Cramer has been meeting with Benno Dorer, Chairman of the Board of Directors and CEO of Clorox (CLX), who has just released mixed quarterly results, announcing a decline shares of 2.8% that day.
Dorer said that Clorox continues to perform well and that its brand portfolio remains strong. The company has grown 4% over the past year and only charcoal and supplements are currently of concern.
When asked about the supplement category, Mr. Dorer explained that Renew Life had experienced irregular orders from its major customers during the quarter, which is normal for the supplements, but new in their forecasts. Clorox remains committed to the growth of Renew Life and will have product innovations, new packaging and a renewed value focus to facilitate customer penetration.
Regarding logistics, Mr. Dorer said that the United States lacked 50,000 truck drivers at the moment, which means that there are seven loads for each truck to be shipped. This ratio is about twice as high as normal, but Clorox continues to mitigate these problems.
Finally, questioned about the rates, Dorer reminded viewers that Clorox is an American company and that most of their items are made here. Fares are not a big issue for Clorox, he said.
Executive decision: Wingstop
In his second Executive Decision segment, Cramer also met with Charlie Morrison, President and CEO of Wingstop (WING), the restaurant chain that recently posted a 6.7% gain in same-store sales. .
Morrison said Wingstop had positive sales in comparable stores for 14 consecutive years and was working towards the completion of their 15th year. The company has also regularly recorded annual growth of 10 to 12% in the number of stores.
Wingstop franchisees love the company's average $ 1.1 million unit sales, which represents a 3: 1 ratio of sales to investments. In fact, most of the company's new franchises are with existing franchisees.
Morrison also quickly noticed that 25% of sales are now digital and Wingstop is extending delivery to selected markets while expanding internationally, where they currently have 130 sites.
Finally, Morrison noted that Wingstop has always been supportive of shareholders and is no stranger to special dividends for shareholders.
Executive decision: American Electric Power
In a third segment entitled "Executive Decision", Cramer has been meeting with Nick Akins, President and CEO and President and CEO of American Electric Power (AEP), the electricity supplier with a dividend yield of 3.6% at the shelter of the recession.
Akins said AEP had a solid plan to increase its profits by 5% to 7% in the near future, and that their dividend up 8.1% is a sign of confidence in their business.
When asked to read about the economy, Akins said this quarter that it has seen some slowdown in growth in residential and commercial applications. He attributed this weakness to a strong dollar and the introduction of tariffs.
Addressing the production activities of his company, Akins said he did not see the return to coal-fired power plants. He added that utilities are expanding their investments in natural gas, renewable sources and their transportation infrastructure. The network will need investments to support the growing tide of renewable sources, he said.
Cramer said that he remained a buyer of American Electric Power.
Prohibited offense
In his "No Huddle Offense" segment, Cramer said when a company reports bad numbers and that stocks are recovering, it's at that point that you have to get up and take note of it. That's what happened yesterday with Masco (MAS), the maker of kitchen and bathroom accessories, which has grown more than 7% after reducing its forecasts for any l & # 39; year.
Cramer said Masco had reached an inflection point this week, a point where the bad news of rising costs, tariffs, rising interest rates and slowing housing market have all been integrated at the price of the action.
Masco is a well-managed company, but was one of the worst performers at the end of the quarter, as investors became part of the housing slowdown. But Masco told a different story. Commodity costs have peaked and the remodeling business remains buoyant due to the strength of the job market. The company said that rates are not a factor and represent less than rising revenues.
Cramer said that this stock has more space to work.
On the subject of real money, Cramer says that Masco (MAS) shows how a company can announce bad news. Get more of his ideas with a free trial subscription to real money.
Lightning Tower
In the Lightning Round, Cramer was optimistic about Tellurian (TELL), Costco (COST), Kohl (KSS), Walmart (WMT), Target (TGT), Exact Sciences (EXAS) and XPO Logistics (XPO).
Cramer was bearish on Align Technology (ALGN).
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