Wednesday, June 16

Forecasts are more important than earnings

Comcast: The NBC and CNBC parent will report earnings Wednesday as it waits for its deal to buy a majority stake in European television network Sky to close.

“I think the deal’s terrific because Comcast has grown so large that the regulators frown on them making more acquisitions here in the U.S.,” Cramer said. “The stock has flatlined, though. Maybe this conference call can get it off the schneid.”

Procter & Gamble: Consumer goods giant Procter & Gamble will also share it quarterly results, and Cramer “can’t wait.”

“Once again, there’s currency risk, but management has a laser-like focus on growing this company again and I think they’ll be successful this quarter,” he predicted. “Remember that last quarter was the beginning of Procter’s outperformance. I bet it continues.”

Abbott Laboratories: Investors who want consistency should consider buying into the stock of Abbott Laboratories, said Cramer, who owns shares for his charitable trust.

“[CEO Miles White] is money, and the company’s medical devices, particularly its glucose monitoring device — a less expensive version of Cramer-fave Dexcom’s — is selling very well,” Cramer said. “I bet Abbott tells a very compelling story.”

Texas Instruments and Lam Research: Shares of these two “quality” companies that report Wednesday have been slammed, Texas Instruments’ from ties to Apple and Lam Research’s from the “downturn in flash and memory prices,” Cramer said.

As for Lam Research, “I think the quarter will be weak, and there’s a new CEO,” he said. “But with the stock down almost 100 points, I also think you can start buying Lam Research, betting that we’re near a bottom. […] While it won’t happen all at once, you need to be ready to pick some up if the stock gets hit.”

Bristol-Myers Squibb: This biotechnology company’s CEO, Giovanni Caforio, made Cramer “a believer” in Bristol-Myers’ acquisition of Celgene when he spoke at J.P. Morgan’s recent Healthcare Conference.

“When Bristol Myers reports on Thursday, I expect he’ll talk about how additive this deal is for the company’s earnings,” the “Mad Money” host said. “I think that, after Thursday, people are finally going to embrace this deal.”

Leave a Reply

Your email address will not be published. Required fields are marked *