Lululemon to $100?
Lululemon Athletica could very well hit the century market, Cramer said during Friday’s “Stop Trading.”
The company reported a stellar quarter this week, beating the Street’s earnings estimates. But that’s not the only reason the stock is going higher. While it may look like there are 50 million shares outstanding, Cramer noted that a big chunk of that is held by mutual funds that don’t trade. The end result is a share base that’s so steady there’s only about 20 million shares for other investors who want to own LULU .
“And when you see something like that,” Cramer said, “a stock can go to $100 very quickly.”
For those who may doubt his position, Cramer was adamant.
“I’m watching the buyers, I know who’s trying buy it, I know how little stock there is, and I know how much they’re willing to use as a top,” he said. “And it’s not here.”
Peabody Energy is the play on the delay of new Environmental Protection Agency standards. The move was expected, Cramer said, because the Republicans took control of the House. But he was surprised BTU wasn’t higher on the news.
“This stock should be up 10 percent,” Cramer said. “I think Peabody should be [up] much bigger on the news, but I don’t think people put two and two together.”
With the recent news that Mexico is changing its drilling rules to allow outsiders access, Cramer said investors should consider Weatherford International , calling it “the Mexican play.” He complained that WFT, a “Mad Money” favorite, is down more than any of the other drillers.
“That makes no sense,” Cramer said. “I’m a buyer.”
When this story published, Cramer’s charitable trust owned Weatherford International.
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