For the week ending April 5 2013, Jim Cramer was highly bullish on the companies mentioned. Out of the 49 companies covered, 43, or 88% of the calls were favorable. The average change from the 200-day moving average for the 43 calls is positive 18.2%. An astute investor may be skeptical that stocks will move much higher. Other than pockets of risks emanating from Europe and in particular, Cyprus, aggressive monetary easing now in Japan suggests stocks have nowhere to go but up.
Investors looking for a leading indicator for stocks should look at the technology companies Cramer mentioned. For 2013, the equal-weighted Nasdaq 100 is up 12.6% so far, as measured by the Nasdaq Direxion ETF (QQQE). All of the companies in the table below were bullish calls:
Companies in Focus
1. Micron Technology Inc. (MU, Earnings, Analysts, Financials): Buy. Since peaking at $10.27, Micron shares succumbed to profit-taking and were recently $9.40. Despite strong Q2 earnings that were supported by NAND flash sales growth, investors sold shares down to $9 in April. Micron is finalizing its purchase of Elpida, but could face a delay if Elpida creditors receive approval in appealing the purchase. If successful, the appeal process will take around 4 months.
2. Netflix, Inc. (NFLX, Earnings, Analysts, Financials): Buy. Netflix provided investors a doubling of their money, despite shares sharply below a $197.62 high. Aversion to risk is driving Netflix shares lower, but the bullish thesis is supported by Carl Icahn holding a position in the company. On May 26, new episodes of Arrested Development will be available for Netflix viewers. Netflix viewers previously enjoyed House of Cards.
If binge-watching of a single show keeps viewers content and draws new viewers, then Netflix could grow its subscription base. Otherwise, rising costs and a decline in viewers will negate the bullish thesis.
3. LinkedIn Corporation (LNKD, Earnings, Analysts, Financials): Buy. Cramer liked LinkedIn. Similar to Netflix, shares appear to facing profit-taking after failing to break past a 52-week high. The job search site has a recognizable brand, so much so that the company’s name is also a verb to many people. Jefferies, a financial firm, upped its target price for LinkedIn from $175 to $215.
4. priceline.com Incorporated (PCLN, Earnings, Analysts, Financials): Buy. Priceline.com is trading with a pattern similar to the above-mentioned company. Shares peaked at above $720 in early March, and closed recently at $696.53. In March, Morningstar issued a report that was positive for online travel. The company reports quarterly earnings on May 6, 2013.
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Written by Chris Lau, Kapitall Contributor
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Dig Deeper: Access Company Snapshots, Charts, FilingsMicron Technology Inc. (MU, Chart, Download SEC Filings) Netflix, Inc. (NFLX, Chart, Download SEC Filings) LinkedIn Corporation (LNKD, Chart, Download SEC Filings) priceline.com Incorporated (PCLN, Chart, Download SEC Filings)
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