Jim Cramer: National Beverage, Phillips-Van Heusen
(Corrects sixth paragraph to remove reference to Kenneth Cole.)
Cramer, a market commentator and former hedge-fund manager, said the Fort Lauderdale, Florida-based National Beverage's energy drink, Rip It, had room for wider distribution in outlets of Wal-Mart Stores Inc. (WMT) If that failed, the company was unlikely to fall far, he said.
Cramer said he expects the number of energy beverage brands to equal the number of coffee brands, as people who have grown up drinking Red Bull get older, giving this new drink room to grow.
Shares of National Beverage rose 92 cents, or 7.9 percent, to $12.53 in after-hours trading yesterday.
Tom Online, a Chinese company that provides instant messaging, ring tones and other wireless services, is the leader in a $20 billion industry and will grow at a 20 percent annual pace, Cramer said, citing unidentified analysts. He said Tom Online is likely to beat its earnings forecasts.
Tom Online American depositary receipts rose 79 cents, or 3 percent, to $27.34 in trading after the official close of U.S. exchanges yesterday.
Phillips-Van Heusen Corp., the biggest dress-shirt manufacturer, stands to profit from a trend toward more formal fashion, Cramer said, citing Brandweek. The owner of the Calvin Klein brand could increase its licensing opportunities with Tommy Hilfiger if its biggest shareholder, Apax Partners Ltd., succeeds at buying that clothing-maker.
Phillips-Van Heusen rose 59 cents, or 1.6 percent, to $37.84 in after-hours trading yesterday.
Cramer recommended Broadcom Corp. (BRCM), Marvell Technology Group Ltd. (MRVL), Level 3 Communications Inc. (LVLT), Garmin Ltd. (GRMN), Dynegy Inc., Conexant Systems Inc., Mindspeed Technologies Inc. (MSPD), Trump Entertainment Resorts Inc., Smithfield Foods Inc. (SFD), Microsoft Corp., NYSE Group Inc., Finisar Corp. (FNSR), Avanex Corp., PW Eagle Inc., Steak n Shake Co., Ruth's Chris Steak House Inc., Seitel Inc., Neurocrine Biosciences Inc. (NBIX), Applied Micro Circuits Corp. (AMCC) and Procter & Gamble Co. (PG) in response to questions during the show's ``Lightning Round'' segment.
He told viewers to avoid LSI Logic Corp., @Road Inc., Oplink Communications Inc. (OPLK), Chiquita Brands International Inc. (CQB), Johnson & Johnson (JNJ), St. Jude Medical Inc., Eli Lilly and Co., Bristol- Myers Squibb Co., Pfizer Inc. (PFE), Merck & Co. Inc., Southwest Airlines Co. (LUV), Continental Airlines Inc., AMR Corp. (AAMRQ), and Oil States International Inc. (OIS)
Cramer said his charitable trust owns shares of Microsoft Corp. (MSFT) and Procter & Gamble Co.
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