Shares of cybersecurity firm Symantec have fallen nearly 30 percent this year, but CNBC’s Jim Cramer thinks that it’s worth taking a second look at the beaten-down stock.
In August, hedge fund Starboard Value invested $670 million into Symantec and nominated five new board members. Starboard Value has “a really consistent long-term track record,” Cramer said.
Starboard ended up appointing three board members, including Rick Hill, former CEO of Novellus.
Last week, Symantec reported quarterly earnings that beat Wall Street’s estimates. With these strong financial results combined with Starboard Value’s involvement, Cramer thinks “the stock will start getting more respect in the not too distant future.”
During volatile trading days with conflicting signals, investors need “some sort of totem that can help point us in the right direction,” said CNBC’s Jim Cramer.
The “Mad Money” host suggests that investors look out for large insider buying.
While insiders sell for all kinds of reasons, they only buy for one reason: “to make money,” Cramer said.
Five IBM board members recently bought shares in the company, including CEO Ginni Rometty who purchased over $3 million worth of stock. Rometty’s purchase, her first on the open market, signals “a real commitment,” Cramer said.
Read Cramer’s guide to insider buying here.
Oil prices may be taking a turn lower, despite strong performances by the major oil companies, according to CNBC’s Jim Cramer.
Exxon Mobil, Chevron and BP all released their quarterly earnings numbers last week, reporting “some of the best quarters I can recall in the oil patch,” the “Mad Money” host said.
Exxon and Chevron both reported their highest cash flows from operating activities in recent years. BP raised its stock dividend, and the CFO believes that oil will continue to trade above $70 for the next six months.
However, Cramer thinks that the major oil companies’ rosy outlook doesn’t reflect the economic reality.
Read Cramer’s full take here.
Although President Donald Trump frequently derides The New York Times as “failing,” his criticisms have given the newspaper a boost.
“This is one of those situations where all publicity is good publicity,” said CNBC’s Jim Cramer. “Every time Trump criticizes the Times, he’s making it more relevant, and I think that translates directly into more subscriptions.”
Last week, The New York Times reported quarterly earnings that beat Wall Street’s expectations, driven by strong digital subscription growth. The stock is up more than 50 percent this year.
The paper has bucked the downward trend in the print media industry by focusing on its online business.
Read more about how “The Gray Lady” has made a comeback here.
While Cramer admits he doesn’t know much about motorcycles or ATVs, he was impressed by the financials of Fox Factory, which manufactures shock absorbers.
The company beat Wall Street’s estimates on the top and bottom lines when it released its quarterly earnings report last week.
Fox Factory is also building a new manufacturing facility in Georgia. “That’s not something you do if you’re worried about a slowdown,” Cramer said.
While Cramer wouldn’t normally recommend companies in the auto parts industries, he believes that Fox Factory is an exception to the rule.
Click here to watch Cramer answer listeners’ questions.
In Cramer’s lightning round, he gave his take on callers’ favorite stocks at rapid speed.
WWE: “It’s got a great subscription business. It’s entertainment that Strauss Zelnick introduced us to that actually is a two thumbs up situation.”
Nokia: “Can it go up? Yes, absolutely. Is it a bad stock? No. Is it the highest quality? No. I do think you need high quality.”
Johnson Controls International: “JCI is not a great stock. I don’t want you on it. There’s so many other industrials that are doing well, and their stocks are struggling. Let’s stay away from that one.”
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