Jim cramer New Stock Picks August 2011

Indonesia stock info Jim cramer New Stock Picks August 2011 ; The stock market has seen a sharp correction for the past couple weeks in spite of strong earnings. Most of the sell-off has been due to concerns over the debt ceiling but now that appears resolved and the market is offering some solid buying opportunities.

CNBC's Jim Cramer says, "Once we get the government out of the picture, you know what thrives? Individual stocks that can’t be pulled down by the S&P futures vortex,” and that investors should focus on “Individual stocks that aren’t constrained by the gravitational pull of mindless ETFs or by government handouts.” Those who watch Cramer on CNBC know that he likes "best in breed" companies, and he has recently turned his focus on Whole Foods Market (WFM), Deckers Outdoors (DECK), Chesapeake Energy (CHK) and Starbucks (SBUX).

Whenever Cramer talks about stocks they tend to rise and that's why it makes sense to wait a few days when better prices are likely. Here is a review of some of these favorite new Cramer stock picks:

Starbucks Corporation (SBUX) is a leading purveyor of premium coffee, tea and other food products. Coffee stocks have been very hot in this market. I would be careful right now and wait for this sector to correct and buy on dips only. This company is seeing strong growth in China and that appears likely to continue.

Here are some key points for SBUX:
Current share price: $39.80
The 52 week range is $22.50 to $41.11
Earnings estimates for 2011: $1.50 per share
Earnings estimates for 2012: $1.80 per share
Annual dividend: 52 cents per share which yields 1.3%
Book value: $5.77 per share

Chesapeake Energy Corporation (CHK) is one of the leading natural gas companies in the United States. It has interests in the Barnett Shale, the Haynesville and Bossier Shales, the Fayetteville Shale, the Marcellus Shale and the Eagle Ford Shale. A new report states that Chesapeake shares are trading at a substantial discount to their net asset value (NAV). Read more on that here.

Here are some key points for CHK:
Current share price: $34.35
The 52 week range is $19.68 to $35.95
Earnings estimates for 2011: $2.90 per share
Earnings estimates for 2012: $3.15 per share
Annual dividend: 35 cents per share which yields 1.1%

Whole Foods Market (WFM) is a leading food retailer specializing on organic and natural products for health conscious consumers. This is a "best in breed" company but the price to earnings ratio is far above the average for grocery stocks. It deserves to be higher than other stocks but I think it makes sense to wait for pullbacks.

Here are some key points for WFM:
Current share price: $66.34
The 52 week range is $34.04 to $68
Earnings estimates for 2011: $1.91 per share
Earnings estimates for 2012: $2.20 per share
Annual dividend: 40 cents per share which yields .6%
Book value: $16.06 per share

Deckers Outdoors (DECK) is a leading maker of popular shoe brands like Teva, UGG, Simple and others. This is another "best in breed" company and it has products that remain in demand even in a weak economy. This stock is trading near the 52-week high so I would be cautious in buying a large position now, but it is a good stock to consider on weakness.

Here are some key points for DECK:
Current share price: $101.81
The 52 week range is $43.20 to $101.87
Earnings estimates for 2011: $4.64 per share
Earnings estimates for 2012: $5.48 per share
Annual dividend: None
Book value: $17.37 per share

Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

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