Jim Cramer: J.C. Penney, First Marblehead, Garmin, Palm, Fluor
Stock Chart for JC Penney Co Inc (JCP)
J.C. Penney Co. and First Marblehead Corp. (FMD) will probably rise this week as they are snapped up by investment funds before the second quarter ends next week, CNBC host Jim Cramer said on his ``Mad Money'' television show on June 23.
The stocks are trading at or close to their 52-week highs and ``every fund out there wants to show investors that they own winners when the quarter ends,'' said Cramer, a market commentator and former hedge-fund manager.
J.C. Penney, the third-largest U.S. department-store company, ``is the most consistent retailer in the country,'' Cramer said. ``They've been introducing high-end concepts, they have mid-range offerings and had an 11 percent increase in same- store sales in May.''
J.C. Penney shares rose 64 cents, or 0.9 percent, to $68.14 in New York Stock Exchange after-hours trading. They've gained 21 percent this year.
First Marblehead Corp., which helps banks and universities provide student loans, ``has a terrific business model, no debt and are miles ahead of the competition,'' Cramer said. ``The student loan market is growing and this stock is still cheap.''
First Marblehead shares climbed 87 cents, or 1.5 percent, to $57.35 in extended trading. The stock has risen 72 percent this year.
Another stock that Cramer expects to rise in the next week is Garmin Ltd. (GRMN), a maker of satellite-navigation devices for cars.
Other stocks recommended by Cramer include Palm Inc., maker of the Treo e-mail phone, and Research In Motion Ltd. (RIM), maker of the Blackberry wireless e-mail device. Both companies report earnings this week. Cramer also recommended Sears Holding Co., the biggest U.S. department-store operator, and EarthLink Inc. (ELNK), the fourth-largest U.S. Internet service provider.
Devon Energy Corp. (DVN), the second-largest independent oil and natural-gas producer in the U.S., also was recommended. Cramer described the company as the ``best run domestic oil and gas play I know.''
His recommendation follows the announcement Friday that Anadarko Petroleum Corp. agreed to buy Kerr-McGee Corp. and Western Gas Resources in separate transactions totaling $21 billion.
Cramer recommended that investors hold a ``high-growth stock'' like Panera Bread Co. (PNRA), a ``steady-growth stock'' like General Mills Inc. (GIS) and a ``value stock'' such as Walter Industries Inc. in their portfolios.
``Panera Bread has had consistent growth. I like this high- growth story better than Starbucks,'' Cramer said. The company, which owns and franchises bakery cafes, was raised to ``sector outperform'' from ``sector perform'' by analyst John S. Glass at CIBC World Markets last week.
General Mills, the second-largest U.S. cereal maker, which also makes Green Giant frozen vegetables and Yoplait yogurt, is ``known as Generous Mills on Wall Street because of its bountiful dividend,'' Cramer said. The company is ``as close as you can come to a blue-chip stock in this volatile market.''
During the ``Lightning Round'' of responding to viewers' questions, Cramer recommended Boeing Co. (BA), Best Buy Co., Circuit City Stores Inc., Coherent Inc. (COHR), Newell Rubbermaid Inc. (NWL), Pantry Inc. (PTRY), Serologicals Corp., Rio Tinto Plc (RIO), BHP Billiton Ltd. (BHP), Basic Energy Services Inc. (BAS), Fluor Corp. (FLR), Foster Wheeler Ltd. and Schering-Plough Corp.
He told viewers to avoid Chipotle Mexican Grill Inc., Sirius Satellite Radio Inc., Pactiv Corp., AT&T Inc. (T), Sprint Nextel Corp. (S), Verizon Communications Inc. (VZ), Alliant Techsystems Inc. (ATK), Dell Inc. (DELL), Shaw Group Inc. (SHAW) and Merck & Co.
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