Jim Cramer's Mad Money Review

Emerging markets have an excellent potential to bounce back. Recall the BRICK countries. Cramer says that emerging markets are a smart play even with the FED rasing rates. However, he recommends be diversified around the globe, not within one region.

Cramer had 5 third world plays: (not in any particular order)
1. Tele Norte Lest (TNE) 13.12
2. Desarrolladora Homex (HXM) 32.58
3. America Movil SA (AMX) 32.66
4. Tata Motors Inc. (TTM) 16.80
5. Bancolombia SA (CIB) 27.00

He said Baidu (BIDU) is good but Yahoo (YHOO) is a cheaper play on China as well as Japan.

Lightning Round:
Bulls:
EPL
ICE
JPM but a better play is BAC or C
ACAD
CKFR
BP
COP
MA
SGP
PDC
HSY

Bears:
DNA
CCT
WB
WWY
URBN

He stressed that in the current market, it pays to be well diversified. A recommendation consists of: Defense contractor, bank, oil, technology.

He closed the show by having a guest appearance by the CEO of Staples. Staples still has room to grow and although it is already a huge company. Sales in 2005 reached $16.1 billion. They have 1,778 stores currently. Cramer also said he's not giving up on Starbucks.

Tonight Cramer started the show off by stating that the market is leaderless. GM and Walmart gave investors a false sense oof security. He claimed that investors should invest in commodity companies as well as recession stocks, however both these sectors can't go up at the same time. He referred to it as a seesaw.

He recommended Clorox (CLX) as having strong upside potential in the current environment.

Within the oil industry, he talked about Kinder Morgan (KMI) which jumped 18% today after their announcement of taking their pipeline company private. He also liked Enbridge Inc. (ENB). He said it was a good Canadian oil play. He claimed it was a similar company to Kinder Morgan except with upside potential.

Lightning Round:
Bulls:
Halliburton (HAL)
URS (URS)
ConocoPhillips (COP)
Cedar Fair (FUN)
Nektar Therapeutics (NKTR)
Hain Celestial (HAIN)
Anheuser Busch (BUD)
Pepsico (PEP)
Bank of America (BAC)
Citigroup (C)
Crystallex International (KRY)
Verifone Holdings (PAY)

Bears:
Maverick Tube (MVK)
Ebay (EBAY)
Marvell Technology (MRVL)
Oil States International (OIS)
Six Flags (PKS)
XM Satellite Radio (XMSR)
Sealy (ZZ)
Falconbridge (FAL)
SunOpta (STKL)
Marshall & Ilsley (MI)
IndyMac Bancorp (NDE)

He also talked about the upcoming boom of wireless routers at home. He likes Netgear (NTGR) which is the best of breed in this sector. NTGR parntered with Skype which will become a key ingredient to Voice over internet protocol (VOIP). NTGR has 100 internet accessible products and reached sales of $449 million in 2005.

Finally, he talked, once again, about Transmeridian Exploration inc. (TMY). He still think its a good stock, however a very speculative one. This is not a blue chip stock or something for your retirement. It should be watched with a close eye.

While the Fed continues to increase rates, a smart play is in the vices. In this case it's Alcohol, Tobbacco, and Firearms. Alcohol and Tobacco are counter cyclical plays and since congress gave firearm companies a pass on all lawsuits, this sector is very attractive. The growth for Alcohol and Tobacco is overseas and within the Firearm companies marginal expansion is a strategy.
Within the Alcohol industry, Diageo plc (DEO), is a best of breed company that has names with great brand recognition such as, Captain Morgan's, and Johnny Walker. They have huge growth potential in South America and bring in $10 billion annually. Another Alcohol play is Constellation Brands (STZ), which has over 200 beverage brands, mostly wine. There has been a trend toward drinking wine and imported beers such as Corona, which is one of its brands. They also have a lot of free cashflow growth.
Within the cigarette industry, the name Altria (MO) comes to mind. It's one of Cramer's favorite best of breed stocks. They are not only in the tobacco industry, they also own Kraft. It yields a hefty dividend and expects to seperate the two parts of the company, which will likely make the stock rise. The other Tobacco play is UST inc. (UST). They make moist, smokeless, tobacco products which is healthier. This means less litigation.
In order to play the Firearm industry, you should be in Smith & Weson Holding Corp. (SWB), which mainly deals with handheld guns. They personalize the guns and are making a killing off of it. They plan to expand into the rifle market as well as the military and law enforcement markets, which means growth. The final stock is a pure bullet play. Alliant Techsystems inc. (ATK) makes all bullets for the government's very popular M16.

Applied Micro Devices recently came out with a press release saying that Dell will now sell their chip in Dell's computers. This is going to have a major impact on the semiconductor market. Intel has had its day. It will now be classified as a play such as Microsoft. The company will be completely unable to grow their business enough to attract new investors. And now, because AMD will have their chips available in the computers of one of the world's largest computer manufacturers, this will slowly kill Intel's business. The $3 push that AMD is experiencing today is not the end of this stock's appreciation. Expect this stock to hit $40 by year end.

Tonight Cramer talked about how to play the retail game with his ten best of breed retail stocks. These stocks should not be picked up right away, they should only be bought on weakness. Following are Cramer's top 10 picks in the retail segment:

1. Best Buy (BBY)- They are the best hard goods retailer and they are unchallenged in this sector. Once this stock is no longer #1 get out of it.
2. Lowes (LOW)- They are the king of hardware stores, with more room to grow then Home Depot (HD). Should be bought only at a discount.
3. Costco (COST)- They are the cheapest and best run warehouse store. They have a lot more room to grow then Wal-Mart (WMT) and they just branched out into electronics.
4. Mens Warehouse (MW)- They are rolling out concept after concept and are the most creative national chain that Cramer follows.
5. Federated DEpartment Store (FD)- They made a merger in 2005 with May retailer chain, which included Macy's and Bloomingdales. The real story behind it is the high end, consumers want labels and brands not discounted no names.
6. Sears Holdings (SHLD)- They have a very smart CEO and they are the US's largest provider of home services.
7. JcPenney (JCP)- Sephora line was added to stores. They keep going higher and higher because they have great management and they pay attention to detail, delivering consistency.
8. Coldwater Creek (CWTR)- They are going from regional to national and have a lot of room to grow.
9. Starbucks (SBUX)- They were voted 2nd best company to work for. They are hoping to be the biggest cd store. They expect huge growth in China, 20% of sales within 2 years.
10. Commerce Bank (CBH)- CEO runs this bank like a retailer and is the only bank to do this. Once rates start to turn, stock will be like a coiled spring.

Here's a list of stocks falling on unusual volume.

Symb
Name
Last Trade
Change
Vol. % Change

STST
ARGON ST, INC.
30.75 1:03PM ET
2.03 (6.19%)
1,274%

CG
LOEWS CAROLINA GRP
50.08 12:57PM ET
2.47 (4.70%)
1,225%

FNM
FANNIE MAE
50.79 12:59PM ET
0.71 (1.38%)
942%

BSTE
BIOSITE INC
48.18 1:04PM ET
6.93 (12.57%)
863%

NURO
NEUROMETRIX, INC.
36.60 1:03PM ET
3.15 (7.92%)
800%

Bullish: EZM, BHP, AGI, FBC, KRY, NTAP, CNX, YUM
Bearish: RTI, SO, VECO, LU, PEP, RIO, GTW, JDSU

Tonight on Mad Money Cramer highlighted defense plays that make most of their money off of government contracts. Because these stocks will tick higher in the open, this article is to remind you to watch out for stocks in other sectors that are similarly situated in terms of government business. Watch out for announcements regarding epidemics such as Bird Flu vaccines or shields. Most likely the government will award several contracts to these companies to curb the effect of Bird Flu.

Cramer opened the show tonight explaining how the once secular stocks turned cyclical and the once cyclical stocks turned secular. The new secular stocks Cramer highlighted include: Foster Wheeler Ltd. (FWLT); Boeing Co. (BA); BHP Billiton Ltd. (BHP); Halliburton Co. (HAL); Nabors Industries Ltd. (NBR); Occidental Petroleum Corp. (OXY); Alcan Inc. (AL); and URS Corp. (URS). Cramer also featured two Iranian stocks that he thinks will beat Warren Buffets' newly acquired Iranian company, Nice-Systems Ltd. (NICE) and Ness Technologies (NSTC). NICE made $331.1 million in revenues in 2005. They are the next generation of voice over internet protocol (VOIP) with no debt and millions in the bank. They are a great counter terrorism play and expects $371 million in fiscal year 2006. NSTC operates in 16 countries and averages 23% in annual sales. These two companies are prime examples of capitalism. The final feature stock, Transmeridian Exploration Inc. (TMY), is said to be a good oil play. They have a 73 million barrel reserve that is expected to produce 10,000 barrels a day by the end of 2006. However, the most important reason to invest in this stock is because it has US support. It could become a leader in the oil pack.

The Lightning Round:

Bullish: GM, YHOO, GOOG, BWNG, LVLT, Q, RACK, FRG, RAD, RBC, UDSI, BRCD

Bearish: BSX, ADBL, NAT, AMAT, ERS, SWK

On today's Stop Trading, Jim Cramer expressed his interest for Fluor Corp (FLR). Fluor offers construction services for the petrochemical, manufacturing, power, and transportation industries. Cramer thought this stock would be a good long term play because it is involved with several power industries that are expected to boom in the future. The stock was down today for the majority of the day, but bounced back 35 cents to $93.75. FLuor has an A rating on Investor's Business Daily, with a earnings per share rating (EPS) of 78, a relative price strength rating (RS) of 80, an industry group relative strength rating of B+, a sales+profit margins+ROE rating of a B, and an accumulation/distribution rating of an A. Look for a slight pull back before you pull the trigger on this stock.

Bullish:
AARS
PALM
GM
BRCD
NXG
SIRF
ACAS
ADC
BUCY
Bearish:
HOM
KCI
BCRM

Today on stop trading, Cramer recommended NOV if you think oil is going back to $74. He also mentioned that Krystallex is getting nailed, but the stock is still a buy. He said it's still "good to go."

Stocks in play today include: HBHC, CTSH, SWSI, CBG, and ADM. Look for a slight pull-back to buy, than hold until close.