Homework: What Does Cramer’s Research Reveal?
If you watch Mad Money regularly, you know that sometimes when a caller asks about a stock Jim Cramer tells them quite honestly he needs to do more work before he can form a thesis.
And he means it. Following is research and Cramer's resulting conclusion sparked by viewer questions about stocks.
On December 18th, Tom in Minnesota inquired about Natus Medical (TICKER:BABY).
"This company is a pure play healthcare diagnostics company but its speculative due to its baby sized market cap at just $355 million," explained Cramer.
"While the company has made smart acquisitions, the company legacy products have shown no organic growth recently. Headwinds include uncertainties over the new medical device tax increase, and weak orders due to tight hospital budgets."
"I suggest waiting on the sidelines for more clarity on the new tax rates and wait for organic revenues to improve. It's just too risky right now," counseled Cramer.
On December 21st, Gregory in Mississippi called about W.R. Grace (TICKER: GRA)
"WR Grace is a global specialty chemical manufacturer with products ranging from building materials to industrial catalysts," said Cramer.
"The stock is up 46% in 2012 due to indications that its over a decade long bankruptcy protection ruling from asbestos claims should be fully resolved in 2013. Feels like we missed a big move here, as the black cloud has lifted."
"However, I have concerns - estimates seem too high for 2013," added Cramer. The global GDP contraction may push Grace to lower estimates for 2013.
"My strategy would be to wait for the Q4 report on February 6th and see what the company says for 2013 guidance."
Back on October 30th , Mark in Missouri asked Cramer about Taser international (TICKER: TASR).
"This is a speculative name that I needed to give close attention before opining. Taser manufactures and distributes electronic control devices aka stun guns for primarily military, law enforcements and special defense," Cramer said.
"The stock has run 53% over the last 3 months due to their add on video products, improved state government budgets and a new upgrade cycle. On Thursday of this week, Taser announced new orders from various municipalities and said it expected Q4 revenues to exceed $30 million which will exceed consensus estimates of $28.7 million."
"However with fears of tighter gun control laws in the future, I'd wait for a pullback before entering. Although I favor the long term fundamentals, I suggest patience. Around $8, I'd be a buyer," said Cramer.
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