3 Buys And 2 Bearish Calls From Jim Cramer As Markets Keep Rising
For the week ending March 14 2013, Jim Cramer covered 54 companies, while being bullish on 40 of them. The 74% bullishness reflects a similar market sentiment for the week. The S&P 500 index, as measured by the SPDR ETF (SPY) rose 0.25% and is up 9.42% for the year-to-date. [Related: Jim Cramer is Bullish on Tech: 4 to Watch]
Some of the most notable calls are listed on the table below and were selected based on having an average trading volume of over 5M shares:
Cramer made some negative calls that are worth investor caution. Groupon, Inc. (GRPN), whose shares are up 11% on the year and 107% from a November 2012 low is gaining buyers. An analyst at Legg Mason mentioned Groupon favorably. Groupon’s founder, Andrew Mason, was pushed out as CEO, and is also gone from the board. Investors are betting that Groupon will turn itself around. Investors should expect Groupon to first cut payroll, reduce costs, and to focus on profitable ventures.
In the retail space, J.C. Penny (JCP) was a sell. Cash flow is worsening: its lender, CIT Group, is adding a surcharge on short-term lending for JC Penny. Investments in shops and capital expenditure are hurting cash flow. If suppliers follow suit, the cash crush would exert negative pressure on the business. J.C. Penny shares bottomed at around $14 and are up 9% from a March 2013 low.