Jim's Daily Rundown

In today's Daily Rundown, Jim discusses his thoughts on a Cimarex (XEC) analyst upgrade, Eli Lilly (LLY) receiving positive attention, Microsoft (MSFT) and gaming, Facebook FB , and more! Jim also answers a club member's question regarding PepsiCo (PEP) , and what to look for in this stock.

Scott Gamm

Alright, you're watching Jim Cramer's Daily Rundown, an exclusive show only for Action Alerts Plus Club members. Jim, Cimarex catching an upgrade from Jefferies today. 

Jim Cramer

It's about time. I mean, Cimarex is just so cheap. I think what people should recognize is when Cimarex traded at $82 last, oil was at $26. I don't care what kind of bottleneck the Permian has. That's just stupid. And one of the things I'm going to review for our conference call Wednesday is the notion of giving up on value and how important not giving up on value matters. Cimarex is completely and utterly out-of-whack with every other oil company because there are some sellers who don't seem to understand what's going on. And the sellers are gravely misplaced, because the sellers are not looking at where oil was last when Cimarex was at these levels and maybe they're concerned with a short-term bottleneck. But it's very clear to me that the sellers don't really understand the company and haven't done as much work as we have.

Scott Gamm

Moving to Eli Lilly, seems to be coming back into favor with the JP Morgan note this morning.

Jim Cramer

I think that's entirely because Eli Lilly acts better. There are very few analysts who like to buy a stock, recommend a stock, when it acts poorly. Eli Lilly acted poorly for a very long time as worries about Trulicity, Jardiance came to the fore, and what this, this push, is about Trulicity and Jardiance. So, I mean, what I'm getting at is that you have analysts who aren't that keen on the company for exactly the reason why he is keen on it now. And it is going to move the stock.

Scott Gamm

Jim, I want to move to a member question. This one comes from Maiko. I've seen the team mentioning a few times about Pepsi bottoming around $100. But besides the stock showing a bit of support there for a few days, are there other factors - fundamental or technical - that you look for before having confidence about a stock's bottom?

Jim Cramer

You know, Monster put in a price increase and I thought immediately that PepsiCo would then go up to 108, 110. PepsiCo is historically not this bad, so to speak. PepsiCo has a number of levers. Lays is good. Gatorade is better. I think that they're spending to be able to move the needle for carbonated and that's what they weren't doing. I think that it could be an acceleration of the snacking business, a lot of people want to be in snacking, look at what Campbell's done. Look at what Conagra's done, Conagra doing quite well here. So, I think PepsiCo has gotten out of whack and is somehow trading with the losers - Campbell's, Hershey, and Kellogg - and not with the winner, which is Conagra. And that PepsiCo is probably one of the more compelling stocks that we own for Action Alerts and I urge people to buy it.

Scott Gamm

Jim, anything else you're watching on this Monday?

Jim Cramer

Well, you know, I'm looking at the some of the things that are being said about Microsoft and recognizing that gaming is very big part of the rally. Multiple companies are saying that the under-looked at, the under-followed, part of Microsoft is gaming and that matters tremendously. And I think that's going to be an issue. There was a piece out today about Facebook, I made some jokes. On my Twitter following, which is that I'm going to quit Facebook and go to Instagram. And there were a lot of I used to call them morons and idiots. But there are a lot of ill-advised people who didn't understand that I was joking and it's obvious that Instagram is doing incredibly well and might have more than a billion followers. That was the notion of the piece. And I think very strongly that people recognize that Instagram is the real asset here and many, many people have left Facebook to go to Instagram. But then I understand that Instagram is Facebook. But what I was trying to get at is that there are people who don't understand and that they should focus on it. And I just choose to be facetious. That is something I have to curb on Twitter, because there are many people who don't understand my humor. So, I will try to be more direct going forward.

Scott Gamm

Well, they should join the club.

Jim Cramer

Yes, they should.

Scott Gamm

Jim, thank you so much.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long XEC, LLY, MSFT, FB and MSFT.