"Mad Money:" Cramer Lists AXP, XOM, IBM, KO, PFE, MSFT, T, AA As Laggards
In his "Mad Money" TV show, Jim Cramer said that the markets would be able to breach the highs reached in January only if “laggards start pulling their own weight.” Cramer listed 10 worst performers in the Dow Jones Industrial Average, starting from American Express (NYSE: AXP), which has lost 2% since the start of the year. Cramer pointed out that AXP is now on the path to recovery and may reach $45 a share.
Next on Cramer’s list of problematic companies was Exxon-Mobil (NYSE: XOM), which is down 2% so far in the year. By contrast, Cramer believes that Chevron (NYSE: CVX) is safe for investment purposes and is set to reach $80 a share. CVX is owned by Jim’s charitable trust.
Cramer next named IBM (NYSE: IBM) and Coca-Cola (NYSE: KO), which are down 4.1% and 4.9%, respectively. He expects IBM to post impressive results for the current quarter, when it releases its figures after a month. However, Jim does not believe that KO can be relied on till its bottling deals are concluded.
Jim also included Pfizer (NYSE: PFE) in his list. He asked investors to forget PFE, which has already lost 5.3% year to date. Conversely, Jim does not believe that Microsoft (NASDAQ: MSFT) will remain low for much longer.
Also included in Jim’s list are telcos, AT&T (NYSE: T) and Verizon (NYSE: VZ), both of which have slipped about 10% so far in the year. However, he still believes in these stocks. The last stock in the list was Alcoa (NYSE: AA), which has performed the worst, losing 15.2%. Cramer mentioned that although he likes cash flows generated at AA, he is not the company’s fan.
In the "Executive Decision" segment, Cramer invited Steve Tanger, president and CEO of Tanger Factory Outlet Centers (NYSE: SKT) to get his views on the state of commercial real estate amid speculation of pending collapse. After Steve Tanger laid down his point, Cramer commented that SKT is a winner, given the company’s growth prospects and history of hiking dividend annually since 1993.
When asked, Cramer said that his two favorite utility companies are Dominion (NYSE: D) and Excelon (NYSE: EXC). He informed viewers that the government will soon be selling its stake in Citigroup (NYSE: C) and he will be a buyer when the stock gets hit. Finally, Cramer mentioned that he is bullish on discount stores Ross Stores (NASDAQ: ROST) and TJX Companies (NYSE: TJX), as both of them were performing well.
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