Cramer’s Execution Face-Offs (DPZ, PZZA, WAG, CVS)

Tonight’s MAD MONEY on CNBC was a different section than the normal stock picking.  Jim Cramer wanted to cover execution of a business model (or business plan):

• Cramer’s first face-off was in the pizza group of food and restaurants between Papa John’s International (NASDAQ:PZZA) and Dominos Pizza Inc. (NYSE:DPZ). 
• Secondly, Cramer compared CVS Caremark (NYSE:CVS) to Walgreen’s (NYSE:WAG).

In the pizza face-off, Cramer noted how Papa Johns (NASDAQ:PZZA) was confident on the conference call, how they were positive about the environment despite rising food and energy prices and more, while Dominos (NYSE: DPZ) was apathetic and not positive.  He also noted how this will bring about a company that deserves a higher multiple.  Papa John’s fell 2% to $22.64 today but rose almost 1% to $22.80 on his call (52-week trading range $21.76 to $34.86.  Dominos fell 1.5% today to $12.75 and fell another 0.5% to $12.69 in after-hours trading (52-week trading range $12.25 to $35.67 per-dividend).  We noted in the past how Dominos had looted its books to make that one-time shareholder pay-off.

In the second execution comparison for competitors, Cramer noted how Walgreens (NYSE:WAG) used to be the GO-TO stock in the group but has fallen off track.  CVS Caremark (NYSE:CVS) has started executing better and changed its weakness with the Caremark cost containment company to win as patents go from label to generic in the coming years.  Walgreens is a good pharmacy according to Cramer, but CVS now is winning because of execution and now has an extra edge.  CVS is also adding stores more strategically and more thought out.  In the past Cramer noted this as a MAJOR BULL MARKET PICK.

CVS shares closed up almost 1% today at $39.49 and rose another 0.5% to $39.68 after-hours (52-week range $29.44 to $42.60).  Walgreens hasn’t traded in after-hours to speak of and closed down 2.3% today at $36.38 (52-week trading range $35.80 to $49.10).

For those of you always looking for "CRAMER PICKS TO MOVE" you’ll want to count tonight as  "more educational rather than bold stock picking."

Jon C. Ogg
December 19, 2007

Jon Ogg can be reached at [email protected]; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.