Cramer's 'Mad Money' Recap: Game Plan for Next Week (Final)
Cramer said while the semiconductor business can be rocky from time to time, Rodgers has delivered in the past and Cypress pays a nice dividend while investors wait for the more lucrative back half of the year.
Upon Further ReviewIn the "Upon Further Review" segment, Cramer took a second look at the earnings of Kimberly-Clark (KMB) , a company that delivered a 7-cent-a-share earnings beat on a 4.2% increase in revenue.
Cramer said while Kimberly delivered great earnings on its own, those earnings were even more spectacular when compared to those of its peers, like rival Procter & Gamble (PG) , which disappointed analysts for its second quarter in a row. While P&G appears to have lost its way, said Cramer, Kimberly, the makers of Kleenex tissues and Huggies diapers, has been taking share and growing organically.
Kimberly executives were very upbeat on their conference call, noted Cramer, as the company continues to do well overseas. Latin America and Asia for example, now account for 35% of the company's sales and is growing rapidly. Increased sales, coupled with falling pulp and natural gas prices, are only adding to the company's success.
Better still is valuation, noted Cramer. While Kimberly trades at just 14.2 times earnings, P&G trades at 15.6 times earnings and Colgate-Palmolive (CL) trades at 19 times earnings. Given that Kimberly Clark is able to execute, is taking share and has a 3.75% dividend yield to boot, Cramer said the choice in the consumer staples arena is pretty clear.
Executive DecisionIn the second "Executive Decision" segment, Cramer spoke with Greg Lucier, chairman and CEO of Life Technologies (LIFE) , a biotech firm on the leading edge of DNA sequencing products.
Lucier said that his company's latest gene sequencers will allow patients who get diagnosed with cancer on a Monday to be able to review their specific mutants that Tuesday, all for around $1,000. That will allow doctors to match patients with one of the 500 or so oncology drugs on the market that will work best for them.
When asked what the market potential could be for this technology, Lucier said the market opportunity is in the billions for just cancer patients alone and Life Technologies expects to sell thousands of its new machines.
Lucier also responded to criticism that the company relies too heavily on government subsidies and research grants. He said those fears are largely overblown and even during times of budget cuts, the budget for this form of research will never fall to zero.