crm Saleforce.com is helping companies move into next generation technology, and Nestle has been their newest, largest account

Mad Money Play-by-Play Recap: Salesforce.com, Sprint, and Hain Celestial Lookin’ Good on Executive Decision

Posted by Kyle Nofuente on Thursday, August 23, 2012 · Leave a Comment

Cramer opens up Mad Money talking about two shortages – in housing and in gold – that are defining this market. In fact, Cramer points out, the market can’t interpret these shortages, and moroever, it doesn’t know how to interpret them positively. Despite the huge selloff that occurred today (which Cramer believes was completely unjustified), Jim believes that the market is still headed in the right direction as housing and gold are still going strong.
Cramer takes a few calls:

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• Chris from WV on Microsoft (MSFT): It’s an expensive stock, but it’s still not one he’d buy $30.
• Jude in NJ on Manchester United (MANU): No, this is not a good investment, Cramer says. It’s terrific to watch, but not terrific to buy.

Executive Decision:
Coach Cramer now talks about the “King of the Cloud”, Salesforce.com (CRM). He speaks with CRM’s CEO, Marc Benioff. Cramer wants the inside scoop and asks Benioff who they’re talking business from. Benioff replies that Saleforce.com is helping companies move into next generation technology, and Nestle has been their newest, largest account. Salesforce.com’s customers are seeing at least 27% increases in revenue on 47% growth. This year alone, Saleforce.com has increased their guidance by over $100 million. Their services and products include: Chatter, Sales Cloud, Service Cloud Heroki, Rypple, Force.com, and Radian6. Cramer and Benioff now talk about social media and marketing, focusing specifically on the Facebook fallout. Benioff says social media is the future of business. Though ignoring much of the topic about FB, Benioff mentions the Co.’s next product, Marketing Cloud, which is taking up 10% of Facebook’s marketing spend. Cramer’s final words: He says Salesforce.com is looking great.
The Coach moves on to talking about the “greatest comeback ever” with Sprint Nextel Corp. (S). Cramer thinks its showing “tremendous strength and growth”, and for us nerds, points out that it is the only company that’s offering the iPhone with unlimited data. Sprint’s CEO, Dan Hesse, talks about the company’s turnaround. Customer service, he says, has been very important to Sprint’s balance sheet and growth. Customer service was the first phase of Sprint’s turnaround, and it took them four years. Now, they’re heading into the second phase – investement. They’re putting in money on new technologies like 4G LTE, but Cramer points out that Sprint doesn’t have the firepower as its competitors. Also, Cramer asks: Did Sprint overpay to get Apple? Hesse disagrees as the partnership has increased volume, brand awareness, new customers, and of course, revenue. Cramer’s final words: He says they’ve got a winning strategy, and it’s not over. Right now, is a pretty good level to buy in on Sprint.
Lightening Round:

• Ronald in LA on American Intl. Group (AIG): SELL – though just a little bit, Cramer advises.
• Mike in NY on Mercadolibre Inc. (MELI): Cramer isn’t too “keen” on this one and prefers Ebay instead.
• Steve in FL on Forest Labs (FRX): BUY.
• OD in AL on Altria (MO): BUY.

Cramer now talks about one of his faves, Hain Celestial (HAIN). This is not just another food company, Cramer says, as you can now find HAIN’s food not just in Whole Foods but at Wal-Mart and many other foods. Coach speaks to HAIN’s CEO, Irwin Simon. Simon talks about the Co.’s growth. Three years ago, HAIN was all about Whole Foods. They’re still about Whole Foods but now you can find them at Wal-Mart, Kroegers, and even Amazon. HAIN’s most recent acquistions are not in America, and Cramer asks about HAIN’s strategy. HAIN wants to be a global company. That’s their goal, Simon points out. In fact, HAIN has about 11 brands that are up double-digits, and their consumption is up 14%. The conversion from organic and healthy food is the next big thing and HAIN is ready to take over it. Cramer’s final word: “Wow….It continues to do the right thing.”