Cramer: Have faith in these 5 CEOs
Jim Cramer often says that a critical part of owning a stock is understanding who is in the corner office. The "Mad Money" host believes that strong leadership can make a world of difference for shareholders.
And on Tuesday's broadcast Cramer expressed great faith in the following 5 corporate executives.
Regeneron CEO Len Schleifer: Cramer believes that few executives are better at creating shareholder value than Schleifer. "Those who had lost faith in Len simply because the stock had stalled didn't understand that sometimes you just have to bank with someone who has repeatedly gotten it right."
On Tuesday shares shot higher after Regeneron announced that one of it's biggest drugs, Eylea, still had "plenty of room for growth" in both the United States and Europe through approvals for additional uses and other initiatives. "And Schleifer has repeatedly told me that there's much more to Regeneron than just Eylea," Cramer added, suggesting there may be more upside to come.
Allergan CEO David Pyott: Known for botox Allergan is also the marker of a drug for dry eye called Latisse. "Back in the summer of last year, with the stock flying high at $115, word spread among various brokerage firms that there could be a generic challenge to Latisse well ahead of when anyone expected it," Cramer said.
The stock immediately plunged to $85.
"David Pyott, without hesitation, came on Mad Money and told us that there would be real hurdles to any generic challenge and that a series of new patents would protect the franchise. Guess what? The generic challenge turns out to be very difficult and the patents unassailable which is why that stock has rallied almost six points to a new high of $120. You had to have faith that the mild-mannered Pyott wasn't blowing smoke.".
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Google CEO Larry Page: In this case investors had to have faith that Google would put its vast amount of cash to work strategically. "And last night Google did just that. It bought a company called Nest that makes thermostats that intuitively learn your schedule as well as smoke alarms that speak with a human voice.
The acquisition could allow Google to take a big step toward home automation in which appliances and the Internet merge.
"In the past I had been too skeptical of how Google's put its cash hoard to work. I've come to have faith that the company really does know what its doing. Google's a team you have to believe in. The record forces you to do so."
Hain Celestial CEO Irwin Simon: "Last night Hain spent $190 million to buy Tilda, a company widely credited with bringing Basmati rice to the western world."
Cramer thinks the move is nothing short of genius as Hain attempts to dominate the migration from processed to healthier foods.
"This is still one more brilliant acquisition by a company that's made a slew of them and the stock's up about $5 because the Simon didn't overpay," Cramer noted. "This is a CEO who proves doubters wrong on a serial basis."
Tesla CEO Elon Musk: Cramer understands that you may be surprised to find the Tesla CEO on this list. But Cramer also concedes that Elon Musk is generating a kind of cult with Tesla, in somewhat the same way Steve Jobs created one with Apple.
And fundamentals may be starting to reflect the broad enthusiasm for Tesla cars."Just today Musk also announced that revenues for the company will be sharply higher than expected," Cramer added. "Boy did he take people by surprise; no wonder the stock surged."
Although Cramer has said in the past cult stocks can be difficult investments, he feels compelled to acknowledge that Musk is rewarding those who have had faith in his endeavors.
"Here's the bottom line," Cramer said. The CEOs profiled above have demonstrated that they will reward you for your faith. "I'd bank on them when others cut and run."
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