Stocks discussed on the in-depth session of Jim Cramer’s Mad Money TV Program, Tuesday August 5.
Larry Robbins recommended both Flextronics (FLEX) and Monsanto (MON), partly because of their generous buybacks. Flextronics is the second largest manufacturing services company in the world. Companies outsource their manufacturing to Flextronics, and the company has four divisions. Wearable electronics and integrated network solutions are strong segments. This company is a “total cash cow,” which interests Robbins. Management plans to buy back 20% of its market cap, and until only recently, got hit by the 10% limit on buybacks in its native Singapore. The company managed to get an agreement with Singapore’s government to allow it to buy back more stock, and the sky is the limit. Robbins predicts the stock could go 20% higher, and Cramer thinks this amount is conservative.