30 Days Later: 5 Jim Cramer Picks 10/24/11

 

Jim Cramer2 30 Days Later: 5 Jim Cramer PicksThirty days ago Jim Cramer made some recommendations on these five stocks and I thought I’d take a look at how they have performed since then.

Allergan Inc. (AGN): Last month Jim Cramer recommended that you buy Allergan as the stock was nudging against the $80 mark on its approach to its 52 week high of $85.74. Allergan had just reported its second quarter results and the implications were that the company was clicking on all cylinders. The mean estimate for adjusted net income was $.95 and the company reported $.96, beating it by a penny. Net income rose to $246.6 million or $.79 per share versus $240.1 million or $.78 per share a year earlier, a rise of 2.7%.

This was the second quarter in a row that the company beat estimates and though it may not seem like much, it warrants a closer look. Revenues also rose by 13.6% and have consistently risen over the past four quarters; but more importantly, gross margins have been expanding over the last five consecutive quarters: the company reported a gross margin expansion of 1.6%, having grown on average by 1.4% on a year to year basis. So how did Jim do it? Technically speaking it looks like Jim caught the tail of a classic head and shoulders configuration and the stock has been trending higher ever since. It is currently showing a little resistance at its 52 week high but when the profit takers clear out, it should move even further up. To continue reading, click here


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