3 stories to combat the gloom

There is another economy, one that's robust and not seeing a slowdown, and these names showcase it.

By Jim Cramer Aug 2, 2012 9:54AM

There are three companies, all at or near 52-week highs, whose stories tell you exactly what's really happening in the areas that are making you money.

 

I'm talking about Dominion Resources (D), American Tower (AMT) and Kimco Realty (KIM). We selected these companies last night to come on "Mad Money" in order to give a sample of the other economy, the one that's robust and not seeing a slowdown. It's the economy that's seeing an uptick, and I don't think it's all that ephemeral.

 

Let's start with Dominion. Here's a power company that has connected 20% more lines than it did last year, one of the best year-over-year comparisons it has ever seen. It's a company that, despite weather that's unfavorable to power use, has still achieved that number basically because of growth in lines to people and small business. The company has got a data center business that's the strongest in the U.S. because it is known for its cheap and reliable power. It has a network of pipelines to bring cheap natural gas in from Pennsylvania and Ohio, the Marcellus and the Utica Shales.

 

Plus, it's getting permits to convert an inbound import facility for natural gas to an export facility, as Cheniere (LNG) is doing. Dominion will put 5,000 people to work after it gets the approvals.

 

To me that's just a growth story, plain and simple -- from a utility. That's not to mention its 3.9% dividend yield that gets raised year over year. If people thought of Dominion instead of Abercrombie & Fitch (ANF) or Zynga (ZNGA) or Facebook (FB) or Bank of America (BAC), they would love the stock market.

 

Now let's turn to Kimco. Here's a shopping center company that was supposed to be left for dead by Amazon (AMZN). Instead, not only has that moment passed, but the retailers in its centers all embrace the Web. It augments their brick-and-mortar businesses. Kimco is actually in a position wherein it has very few empty spaces, less than 6%, and is very close to pre-recession levels. It raises rates regularly. Kimco is a nationwide real-estate investment trust, and it encompasses all levels of commerce. Plus, it, like Dominion, has been able to refinance debt at low coupon rates. That alone has enhanced cash flow.

 

Kimco is simply a great American story, and it yields at 3.8%, even at the stock's 52-week high.

 

Finally, there's one of the greatest long-term growth stories out there, American Tower. By the way, this is the only company I follow that is moving aggressively into international markets because it is taking advantage of weakened competitors and sewing up gigantic markets such as Brazil and India.

 

The tower market is fabulous. Once you have a tower, you can load it up with as many transponders as you want, making it so that the gross margins fly on all the additional revenue. Every iteration of G -- 3G, 4G and now 5G -- requires more transponders, and you get more rent. It's a constant stream worldwide that's is growing, and I can't see any end to it.

 

With gigantic cash flow, an ability to grow and return capital, and a domestic oligopoly with CrownCastle (CCI) and SBA Communications (SBAC), American Tower has more runway here than it can handle. But that's nothing compared with its international opportunities. Oh, and by the way, while India's power went out, American Tower didn't go down. It has a generator with every tower. It was probably the only thing that worked there!

 

So, there they are, right in front of you, three stories to combat the gloom of Coach (COH) and Starbucks (SBUX) or Abercrombie and Chipotle (CMG).

 

 

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and has no positions in stocks mentioned.

 

 

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8Comments
Aug 2, 2012 2:18PM
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This is all just market manipulation by "Inside Traders." It really has nothing to do with what is going on in the world.
Aug 2, 2012 12:01PM
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american tower another aa? another chipotle? another men's warehouse?

ANOTHER PUMP AND DUMP?

Aug 2, 2012 2:33PM
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Anything Jim "sell-side, sellout, shill-boy" Cramer recommends, you should run, (not walk), away.  That goes for the "corporate network" he works for as well.
Aug 2, 2012 5:27PM
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Crammer is an idiot. He is very wishy washy. He is a pawn on MSNBC morning show. All he is is for show. Take his advise and you will lose. Always check what he is saying as most of his calls are losers. His show is full of BS. If you watch then play back after stocks day you will find him very back and forth. Example, Facebook he was on in the morning of IPO telling everyone to buy due to build up then next day he is bad mouthing and saying he did not buy and it was a good thing. MSNBC needs to find someone else to lead people in the wrong way, oo I mean right way. What a joke!
Aug 2, 2012 4:52PM
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... MSNBC had a story on today the true unemployment rate for California is over 20% ... yeaaa let's all feel good ... I like Obama he's swell ... let's give him 4 more years
Aug 2, 2012 5:13PM
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    The stock market is little more than a collection of computers  making large scale algorithmic automated trades with  each other at virtually the speed of light.  It is completely manipulated.   They- the banks and major financial institutions- can make the market go up, down or side ways with these computers.  Bobo's stock market cheerleading is absurd.  The whole market lacks any integrity because of this blatant manipulation.
Aug 2, 2012 4:33PM
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''If people thought of Dominion instead of Abercrombie & Fitch or Zynga or Facebook  or Bank of America, they would love the stock market.''

 

Cramer is absolute scum. Is this guy for real? Maybe if you didn't recommend people buy FB on it's IPO only to watch it lose 50% people would love the stock market. And by the way for any thumbs down I have never taken any advice from this fool and am not in any way venting about poor investment decisions. He is just absolutely disgusting giving the advice he does and then making a comment like this. I feel sorry for anybody who takes his advice and really MSN, why do you allow this snake oil salesman to write articles on here? Have some integrity for crying out loud!

 

Aug 2, 2012 4:48PM
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Cramer is a joke, two recommendations today came out. Hold CRM and buy LULU. really? What Cramer was saying is please buy and hold so I can exit.

 

It's joke that retail investors are being told by the so called experts to buy stocks like FB, LULU, CRM, AMZN and the list goes on and on.

 

AMZN 280 times earnings. Really? Only a crock can recommend a stock that these prices.

 

Retail investors should take their money out of the market and start investing in companies that look good and trade at 10 times earnings. If they are luck some of those companies will grow which will cause the price to go up. But right now the companies don't make money, they sell you higher and higher multiples of earnings. Nope.

 

Cramer is a crock. It's too bad that people make money stealing from had working people.

 

 

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