Cramer’s 'Game Plan' for Next Week
What follows is “Mad Money” host Jim Cramer’s “Game Plan” for the week of Monday, Sept. 10.
MONDAY, SEPT. 10
To start, Cramer will look for earnings announcements from Palo Alto Networks and Five Below — two technology companies that both went public in July. Cramer says he recommended investors get in on both IPOs. Palo Alto has posted a 68 percent gain for investors who got in on the IPO, Cramer said. The stock has produced a 33 percent gain for investors who bought it in the aftermarket, he added. Five Below has more than doubled from its IPO price and investors who bought the stock in the aftermarket are still up 30 percent.
“These are two exceptional companies and I think that Five Below especially has tremendous growth prospects as it's in just 17 states,” Cramer said. “Palo Alto gives you exposure to cyber security — there's a ton of cyber arson out there — this is your protection. I think they'll both tell us good things.”
TUESDAY, SEPT. 11
United Natural Foods is scheduled to report earnings Tuesday.
The Providence, R.I.-based company distributes and sells natural and organic foods – a trend that Cramer says is not going away anytime soon. In fact, Cramer thinks United Natural Foods’ results could refocus investors to The Hain Celestial Group and Whole Foods Market. Like United Natural, both companies take part in the “healthy eating” trend. Neither stock is cheap, Cramer admits, but he thinks they represent great value and could go higher.
“I suggest you use some deep-in-the-money call option strategies as mentioned in his latest book, “Getting Back to Even,” to buy some Hain or Whole Foods if they're down again on top of today's losses because maybe UNFI brings them roaring back,” Cramer said, adding he would look at January 80 calls for WFM, or February 65 calls for HAIN. “Not a lot of premium and you get stopped out at a level that could be higher than where the stocks would go if they disappointed.”
WEDNESDAY, SEPT. 12
Apple is expected to unveil its new iPhone Wednesday, Cramer said. Typically, shares of the tech company climb going into new product introductions only to sell off shortly thereafter, unless, of course, the announcement is a game changer. Cramer can only guess about what kind of features Apple might add to its popular smartphone, though.
“A phone that has some sort of alternative power supply … that would send the stock flying. If it's just a better looking, slightly cooler phone, then get ready for a dive that allows you to buy into Apple if you never owned any,” Cramer said. “Remember, we don't trade Apple around here, we invest in it.”
Meanwhile, the U.S. Department of Agriculture will release its crop report Wednesday and Cramer’s advice here is simple: “don’t out think it.”
“We have had some rain,” Cramer said. “It's likely that things aren't worse, meaning that more crops could be produced.”
Some investors have used this report to buy and sell agriculture-related stocks, Cramer said. He suggests using any weakness to buy shares of Monsanto or DuPont, but only if you can stomach some amount of risk.
Also, Germany’s Supreme Court will consider the legality of the country’s moves to save Europe amid the region’s debt crisis.
“Let’s hope the court understands that it could crush the world's economies if it says that Germany can't legally participate in the periphery bailouts,” Cramer said.
(Read More: Nearly Half of Germans Don't Trust ECB's Mario Draghi)
THURSDAY, SEPT. 13
Home furnishings retailer Pier 1 Imports is slated to deliver earnings before Thursday’s opening bell. The retailer has sought to improve its ecommerce efforts and Cramer is interested to see how it did.
“I know some people are worried because the company did run some end of summer clearance sales, but I feel confident that the best is still ahead for this stock,” Cramer said.
When this story was published, Cramer's charitable trust owned Apple and DuPont.
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