Cramer's Earnings-Loaded 'Game Plan'
What follows is Cramer’s “Game Plan” for Monday, Jan. 23:
MONDAY, JAN. 23
Cramer plans to look for earnings results from Halliburton . The oil and gas company has disappointed many times before and unfortunately, Cramer expects more of the same. If it does disappoint, Cramer thinks the entire oil and gas space will go into a “tailspin.” The oil and gas industry is just too tethered to natural gas, he complained, adding the price of nat gas is way too low.
Texas Instruments will also report earnings on Monday. The Dallas-based company has become a favorite of analysts, who expect a new cycle in semiconductors. Cramer thinks the stock has run so much that it will almost have to disappoint. Ahead of its report, he recommends investors trim any non-Apple semiconductor suppliers.
TUESDAY, JAN. 24
DuPont will deliver its earnings results on Tuesday. It has a lot of exposure to two sectors that struggled last year, but are thriving in 2012, namely housing and autos.
Elsewhere in the market, personal care products maker Kimberly-Clark and fast food restaurant chain operator McDonald’s are also scheduled to deliver earnings. Cramer thinks both stocks have run so much, they could sell-off, giving investors an opportunity to buy, buy, buy.
After the bell, Apple will report earnings. To Cramer, it appears as though the technology company posted strong sales numbers over the holiday shopping season. In addition to its popular iPhone 4S device, the company has other new products and iterations on the way.
Earlier this week, the stock hit its all-time high, but Cramer isn’t sure that’s necessarily a good thing. If Apple simply announces a very good quarter, it won’t be enough. Then again, there are enough analysts with conservative numbers, so Cramer thinks Apple has some wiggle room.
“I think the last month of Apple's quarter may have been the biggest ever. I get that from listening to the conference calls of Apple suppliers and realizing that Apple couldn't order enough parts to fulfill demand,” Cramer said. “That's the best tell of a company's quarter I know of. I bet Apple will do the exact opposite of what Google did [recently] and blow away the numbers.”
WEDNESDAY, JAN. 25
“We have two breaking up is easy to do plays and I own both for my charitable trust because I think we're going to start hearing plans about the break-ups and we will love them,” Cramer said of ConocoPhillips and Abbott Labs . “Both extremely undervalued companies where the parts are worth much more than the whole.”
Cramer is also looking forward to an earnings report from airline maker Boeing . He expects Boeing will shed light on new plane orders and how much money it’s making from the older, established lines it’s still producing en masse.
Cramer’s also going to look for quarterly results from Occidental , which he says is among the “most aggressive and shareholder-friendly of any major oil companies.” He wants to hear about fracking operations in California. Most people forget that the Golden State has a massive amount of oil underneath it, he said. Occidental has the technology to get that oil out of the ground.
The U.S. Federal Reserve will meet on Wednesday, too. Cramer thinks the Fed will have to acknowledge that there’s more strength building than they originally thought given rising interest rates for long-term Treasurys.
THURSDAY, JAN. 26
Of the many companies reporting earnings on Thursday, Cramer plans to monitor 3M , Caterpillar and Nucor . 3M may be a hated stock, Cramer said, but the St. Paul, Minn.-based company will dispel the hatred. Cramer also thinks Caterpillar will tell a story about how the U.S. market is getting better. Nucor tends to be negative on the economy, but Cramer thinks this time could be different. CEO Dan DiMicco could actually say Nucor’s orders for non-residential steel and auto steel are strong, he added.
Starbucks will also report earnings, but Cramer’s only hope is that the stock sells off, so investors can buy shares at discount.
FRIDAY, JAN. 27
When Honeywell International reports earnings on Friday, Cramer thinks it will be very positive. If a down market takes HON with it, Cramer would buy shares.
Cramer will also watch for earnings reports from Altria and Procter & Gamble . There are whispers of an accelerated decline in smoking, Cramer said, which could negatively impact Altria. Procter & Gamble recently caught a downgrade because the analyst thought it was too expensive.
“I'm on listen only mode for both, but they're tempting choices if they get hammered because we aren't done being hooked on smokes and Procter uses a ton of plastic, which is made from ultra-cheap natural gas.”
When this story was published, Cramer’s charitable trust owned Abbott Labs, Apple and ConocoPhillips.
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