Jim Cramer's Mad Money Review

Mad Money Man

There are certain patterns that the market goes through. You need to find yourself in relation to the current cycle. In the current business cycle, banks should be performing badly. However, Cramer is going against the rules and claiming banks are a good buy. Reason why banks should be bought:

• banks stopped issuing stock and are beginning to buy back
  
• government has allowed those in bankruptcy to be held liable for their debt
  
• banks are valued below market multiple of 16
  
• banks are relying more heavily on their fee based businesses as opposed to interest rates
  

Cramer received a tip on Amylin Pharmaceuticals (AMLN), which could pose a good buying opportunity on Monday after they announce earnings. However, Cramer is skeptical on tips. You can't just take a tip and buy based on that tip, you have to look into it and do some research. Bottom Line: Forget tips, homework pays.

Lightning Round

Bulls
SMDI
UTX
PFE
UL
CL
MO
PG
CHS
FUN
TRN
ZOLT
CWTR
WFMI
SBUX

Bears
MRVL wait for earnings

Concluding thoughts:

• Analysts don't have inside information
  
• Macro thesis generally wrong
  
• VF Corp (VFC) is a great company
  

Side thoughts:

• In the current market conditions, you needs to have a balanced portfolio. Cramer recommends having 1 oil stock, 1 food stock, 1 defense stock, 1 cash stock, and 1 gold stock. This will allow your portfolio to hedge risk.
  
• Look for a Google (GOOG), Microsoft (MSFT), and Amgen (AMGN) rally
  

posted by Stock Administrator @ 11:12 PM