In today's Daily Rundown, Jim discusses the quarterly earnings results of BP Plc (BP) , Alphabet (GOOGL) , and Viacom (VIAB) ; and talks about Anadarko Petroleum Corp (APC) , Johnson & Johnson (JNJ) , Amgen (AMGN) , Amazon (AMZN) , Apple (AAPL) , Disney (DIS) , and Goldman Sachs (GS) .
Katherine Ross: Good morning y'all, I'm Katherine Ross with the Action Alerts PLUS. I am here on the floor of the NYSE with Jim Cramer. Jim, let's kick this off with BP which we just talked about over on our Facebook live video.
Jim Cramer: I think it was an amazing quarter and they have increased the reserves, they've right-sized the company, they got this BHP property that we're writing about in the Permian. It was a remarkable quarter, they can raise their dividend even more when they want to next. The stock is dramatically undervalued, even for an oil company which you know I don't - kind of stubbed our toe on the oil. This one goes to forty-five. It's so funny because I'm looking at some companies that, like, Visa reported, the stock went down, it's now above it. Disney's going to report tonight, stock will go down, soon it will be above it. That's the trajectory and I look at BP and I think the stock has been going down, they report a good quarter and the stock's just going to keep going up because numbers are too low.
Katherine Ross: Anadarko is set to report after the bell tonight.
Jim Cramer: Anadarko is...if oil's up, that stock will be up. Anadarko is such a good company but it got victimized by first, the Colorado resolution which it then won. And then by the EMP collapse when oil went from eighty to forty-five. Anadarko's very well run and it goes down then up. If oil's up tomorrow, it doesn't matter, it will go up. That's how stupid the market is, just stupid. The market's stupid.
Katherine Ross: Were you surprised at all by Alphabet's wavering last night during the call?
Jim Cramer: No, I knew that Ruth would do her best but that they would spend a fortune, that's just their way.
Katherine Ross: And you called the headcount.
Jim Cramer: Oh my God, yeah. And you know, they hired this guy, Feinberg from Geisinger. And they would never have been able to attract him unless they wrote him a big check. I think they're hiring a lot of people and seeing which guys come through with big ideas. That's just their way and I really applaud them but the analysts don't because they say 'Where are the results? Where are the results? Where are...?'. I think the company's thinking a little further...they do need to monetize YouTube. Just put a small fee on it.
Katherine Ross: Which they mentioned. That they are working towards...
Jim Cramer: Well, they ought to. And I didn't think that they...you know they had a very bad period with cloud where they had some big clients but they have to spend to catch up to Amazon and to Microsoft and they didn't reveal the number of clients that they got. They were very opaque on that. So the long knives were out but I'm fine with it.
Katherine Ross: And what about Viacom? How was their quarter?
Jim Cramer: Viacom was good. I mean earnings were good. Bob Bakish is doing a good job. I mean the problem with Viacom is that people just think that any company that is cable is bad. And people feel that Comcast might be bad. Comcast is a lot of green field in Europe. Comcast, I think, is going to forty. I think Viacom goes to thirty-five. I'm very comfortable with it.
Katherine Ross: I was talking to Jeff Marks this morning and we were talking about how important - Action Alerts analyst - how important Viacom is. And one thing that he and I were talking about is why members should consider this an important stock. So I'm wondering, can you weigh in on that?
Jim Cramer: Viacom is going to merge with CBS, I believe. And it's going to create an entertainment power house that is going to have a good, over the top offering. It's going to have good subscription. It's going to cut costs which has not been the case with CBS. And it's going to have worldwide distribution. And Paramount, I think, is worth so much more.
Katherine Ross: He mentioned that too!
Jim Cramer: Paramount is worth a gigantic amount. Paramount's really what I call the last independent studio. Sony, if they want growth, should buy the combined Viacom and CBS. There's just so many ways to win here. But the analysts are thinking too small.
Katherine Ross: And Viacom's relationship with Netflix. I mean we've seen the Haunting of Hill House which Jeff said that he loved.
Jim Cramer: Yeah, no, Viacom is a tremendous producer of good stuff. By the way, their numbers are really not that bad in terms of how the actual TV stuff is.
Katherine Ross: And the movie stuff. They did the Bumblebee movie.
Jim Cramer: The movie stuff is very good. Now, they also did the Amazon Jack Ryan. And they've got a Top Gun coming out. And I think that people should recognize that Paramount is a hit producer. And that the company is quietly doing everything you would want for an entertainment company and the stock should be flying. Especially if they merge with CBS.
Katherine Ross: Alright Jim, we've covered a lot of topics. Is there anything that I've missed?
Jim Cramer: Well, I do think that there are certain stocks that...when I look at the way Eli Lilly's trading, I keep thinking J&J should be continuing to go up. I think J&J's a steal. Amgen, we sold, we almost bought all the stock back that we sold. Drug stocks are up. Remember, don't bite on Alphabet, I think it's going to come back down. Take a look at Amazon, people forgot about that, it's coming back up. Apple was at 147 when I went out to California, we meet with Tim Cook at 150, and now look at it. It looks like Warren Buffett's buying it or something. Do not be perturbed if Disney goes down initially because Disney, you know the worry is whether they're going to have an up year or not. And buy Goldman when it goes through book which is pretty close to where we are. I like that story. And there's just a lot to like for what we have on Action Alert. A lot. And I feel very good about it.
Katherine Ross: Alright, Jim. Thanks for joining me as always. We'll see you guys tomorrow.