Cramer goes for Jones Soda and loves Eddie Lampert and Julian Day

Posted Mar 30th 2007 7:28PM by Jon Ogg
Filed under: After the Bell, Analyst Reports, Coca-Cola (KO), PepsiCo (PEP), Hansen Natural (HANS), Penney (J.C.) (JCP), Sears Holdings (SHLD), Jones Soda (JSDA), RadioShack Corp (RSH)

On tonight's MAD MONEY on CNBC, Cramer said he wanted to find the next speculative stock that ends up with exponential growth similar to what a Hansen Natural Corp. (NASDAQ: HANS) had in the last few years. Cramer thinks that Jones Soda Co. (NASDAQ: JSDA) is the next big player. This one has gone from $0.81 to $20.00, but it pulled back today. Cramer thinks that the story is far from over (now has a $519 million market cap). Its profits and revenue growth haven't reached the peak because it hasn't gone across all of the distribution channel. It may get a larger channel by Memorial Day. This one was up 7% in after-hours after Cramer touted it, and with a $500+ million market cap he even wonders why a Coca-Cola Co. (NYSE: KO) or PepsiCo Inc. (NYSE: PEP) hasn't bought it for the growth engine. HANS is now $3.4 billion in market cap, so it's now too large to buy.

Cramer also noted that he has two more retailers whose CEOs deserve the benefit of the doubt -- the end of this week's series. He noted J.C. Penney (NYSE: JCP) as one that just upped their dividend and their share buybacks, and Cramer said he thanked the CEO. He thinks that some CEOs don't get respect from Wall Street if they won't grow territory and grow store count.

Tonight Cramer said that he is featuring Eddie Lampert and Julian Day. Lampert is for Sears Holdings (NASDAQ: SHLD) and Julian Day is for RadioShack Corp. (NYSE: RSH). He has been positive on both of these names. RadioShack is a fairly new one for Cramer, but he has been sticking behind Sears and Lampert since the dawn of Lampert running the stock up. RadioShack is actually generating cash while still trying to turn itself around. Cramer said that Julian Day is getting no respect from The Street. On Eddie Lampert, he is fixing Sears brick-by-brick even if the analysts keep panning him. Cramer thinks that Sears Canada will be resolved soon and he thinks the value of his land holdings has gone up.

Jon C. Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

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Reader Comments (Page 1 of 1)

3-31-2007 @ 8:28AM

Michael Schneider said...

Jones Soda always seems to trade at a high price though that has been true of some of the greatest growth stocks like Wal-Mart and Microsoft when they were running up. Jim Cramer just says that there is more to go with Jones but he doesn't explain why he thinks that ither than that it has had a great run.

A free list of 59 Jim Cramer Food and Restaurant Stocks from all 3 years of his Lightning Rounds on Mad Money is available at http://www.Barreloworld. The list is pretty much in order so you can see that Jones Soda was a very early Cramer thumbs up- a good pick for him.

3-31-2007 @ 8:31AM

Michael Schneider said...

Link above for the free list of 59 Jim Cramer food and restaurant stocks should be http://www.Barreloworld.com.

4-08-2007 @ 7:40PM

John said...

JSDA is overbought right now. It's been hyped intensely for a month now but $25 is not sustainable. Look for short term speculators to take gains and for the stock to settle below $20 by summer. Im shorting, with a target of $18.

4-25-2007 @ 5:03AM

Jon Scott said...

Cramer's newfound love for RSH is misguided.
Nobody, not even Julian Day, can take a pile of ashes and return it to a fruit tree.

Radio SHack is old news. They have nothing but thousands of leases and employees with no morale. Their small stores, many in malls that are subject to the fate of the consumer led economy, just can't compete. What can the shack offer that you can't get from BBY, CC, WMT or many other outlets?

These stores are already straining and growing cautious of the future. TV prices dropping and margins are thin. The shack was cut off of any hopes of handling the Apple phone and competition is already intense with cell phones.

RSH has nothing but a stock price that's at least twice what it should be