Jim Cramer's Mad Money Review

Stocks ran up big gains Friday as investors took comments from President Bush and Federal Reserve Chairman Ben Bernanke as reassuring signs Wall Street wouldn't be left to deal with problems in the mortgage and credit markest on its own.
Investors initially balked early in Friday's session when comments from Bernanke didn't indicate a cut in the benchmark federal funds rate was imminent. However, investors seemed to move past some of their initial disappointment and concenrate on comments that the Fed would step in if needed.
Bernanke, speaking at the Fed's annual conference in Jackson Hole, Wyo., said the central bank will "act as needed" to prevent the credit crisis from hurting the national economy.

Labels: Ben Bernanke, President Bush, Stocks, Wall Street

Don't Buy and Hold
In spite of the fact that Cramer was a money manager "with a terrific track record" he admitted to having made every mistake he describes in his book, Jim Cramer's Real Money, Sane Investing in an Insane World, as well as every faux pas mentioned in his new publication, Jim Cramer's Mad Money: Watch TV, Get Rich. Cramer identifies the single worst and most common mistake as adopting a "buy and hold" strategy, which is disastrous because "it's just not true that your stock will necessarily bounce back." Just hanging onto a stock might have worked 30 or 40 years ago when "taxes were high and commissions were even higher," but in today's world, investors need to do homework on their stocks, and investors who don't have the time to research their investments on a weekly basis should go into mutual funds. Don't Dwell on Regrets
Although Cramer says he is the worst offender when it comes to this vice, he urges investors not to waste precious time grieving over past mistakes, since one "cannot afford to get thrown off their game." Instead Cramer emphasizes the importance of going forward and not losing confidence.
Tips are for Waiters not for Traders
"You have to discipline yourself so that you never, ever take a tip seriously," Cramer said, and he discussed the non-existence of real stock tips. For instance, if someone would say that Nokia is about to buy Research in Motion, the only way he would know is if he were an insider, and taking a tip from an insider is illegal. Cramer emphasized the importance of avoiding temptation in such a case: "Having the Securities and Exchange Commission investigate you is pure hell even if you haven't done anything wrong," he said. "Imagine how bad it would be if you were actually guilty of something." However, A non-insider who would tell an investor about a potential, unpublicized merger would have no basis for knowing, and should also be ignored: "If you get a tip, it's either illegal, incorrect or straight-up manipulative."
Diversify, Diversify
"I like to think that I'm universally loved, but people really tend to hate me when one sector is en fuego and I tell them to take some money out of it and spread it around because you can't keep all your eggs in one basket," Cramer said. However, once the "hot" sector falls out of favor, people thank Cramer for telling them to stay diversified. Cramer warns investors not to have more than 20% of their money invested in a single sector. "You absolutely must stay diversified, and this rule can't be bent, broken or spindled."
Don't Buy an Entire Postion at Once
"The single most arrogant thing you can do as an investor is buy your whole position in a stock at once," Cramer said. Investors who buy incrementally make more money and do not have the regret of having jumped hastily into a stock. Cramer suggests looking for opportunities to buy gradually.
Published by SeekingAlpha

Labels: Hot Stocks, Jim Cramer, Lightning Round, Mad Money

Bullish calls:
Herbalife (HLF): 'I have switched to Herbalife (HLF) and I am much thinner!' US Bancorp (USB): 'at 4.8% yield, USB... I'd pull the trigger right here! I think they're going to own the mortgage market.' Wells Fargo (WFC) Southern Copper (PCU): 'Skee Daddy likes PCU... no doubt about it.' Freeport McMoRan (FCX): ' if you want a cheaper stock that is off more, because the hedge funds kept dumping it all over the place... it is Freeport McMoRan, which is down a quick $15.' Novartis(NVS): 'Novartis is the play.' Cal-Maine Foods (CALM): 'Yeah, that stock is still cheap. And people don't understand... it's like the only egg producer around there.' Kraft Foods (KFT): 'That's the big dairy play that I like very much, and I'm reiterating that everybody's circling around KFT. Irene Rosenfeld's going to sell some brands. That stock goes from $32 to $35.' Dell(DELL):'It reports later this week. I think it's going to have an upside surprise … I think it reports $30 by the year's end.' Coca-Cola Enterprises (CCE) PepsiCo(PEP): 'PEP, at $68, has still got more upside. Great international growth. Frito Lay turned. Brand new sugar-free Gatorade coming, and great ads last night on Sunday Night Football on NBC.' Toll Brothers (TOL): 'I think is going to bottom, ahead of all the other homebuilders - the only area in this whole country with real estate that is not falling off a cliff.' CACI International (CAI) Raytheon (RTN): 'I like Raytheon more than CAI.' Lockheed Martin (LMT): ' … broke out today.' General Dynamics (GD) American Standard (ASD): 'ASD, in the end, is an inexpensive stock. You know I like the management. But it's got a new CEO. It's no longer going to be Fred Poses. I've got to stick by ASD!' Hudson City Bancorp (HCBK)
Bearish calls:
Blackstone Group (BX): 'I think BX is just the quintessential wrong stock to own.' Fortress Group (FIG) Alvarion (ALVR): 'It's an Israeli wireless company. I really like it…. Let it pull back under $10.' NutriSystem (NTRI):' It's controversial, because there's a very big short position … There are some people who think that NTRI's stuff is not that tasty.' Sanofi-Aventis (SNY) CPI (CPY) Pre-Paid Legal Services (PPD)

Published by SeekingAlpha

Labels: ASD, CALM, CCE, Dell, FCX, GD, HCBK, HLF, Jim Cramer, KFT, Lightning Round, LMT, NVS, PCU, PEP, RTN, TOL, USB, WFC

Fall into the Gap (GPS)
Although Cramer admits he has disliked retail lately, the sector will be a hot area when the Fed continues to cut interest rates. What was once the worst of the worst, Gap, is now best-of-breed, with a better balance sheet, new CEO Glenn Murphy, $2.7 billion in cash and investments and a revenue of $151.9 billion. In addition, this "great turnaround story" is buying back stock aggressively and is polishing its Banana Republic Brand. Cramer would wait about 5 days before buying.
Old King Kohl's: Limited Brands (LTD), Tween Brands (TWB) and Kohl's(KSS)
Unlike LTD and TWB, retailers Cramer thinks deserve to be doing badly, it is a mystery that people seem not to like Kohl's, which has "dropped like a rock;" a full 28% since April. Cramer likes the fact no one is paying attention to Kohl's which sells at 13x forward earnings and has a growth rate of 18%. He also noted the store is focusing on high-end designer brands, such Vera Wang's label. Cramer concluded KSS has the best risk-reward if the Fed keeps cutting and "deserves to be bought."
Fly Like an Eagle: American Eagle Outfitters (AEO)
Cramer suggests looking for retail stocks with vigorous insider buying and low evaluations; these factors characterize AEO, which is "worth buying." AEO's sales increased 17% year over year and is currently selling at 12 times next year's earnings. Craner would wait until the stock dips to between $22 and $25 before buying.
Mad Mail: Crocs (CROX), American Eagle Outfitters (AEO) Although Cramer still believes CROX has further to climb, he admits concern over the company's insider selling; "I will temper my enthusiasm a tad," he said. Cramer added AEO is a good stock for a 7th grader, and is an investment that can be held onto for a few years.

Published by SeekingAlpha

Labels: AEO, CROX, GPS, Hot Stocks, Jim Cramer, KSS, LTD, Mad Money, TWB

Stocks to watch for Monday, August 27, 2007:
Citigroup (C) pulled together its emerging-markets credit group and its global credit-trading business. The combined group will be headed by Carey Lathrop, a nearly 20-year veteran of the bank who led the emerging-markets business.
Crocs (CROX), in an attempt to diversify its product line, will introduce a line of apparel for men and children. The apparel line, which Crocs intends to unveil today, will feature regular fibers, such as cotton, interwoven with a lightweight derivative of the pliable, plastic resin used to make Crocs' shoes. It will make its debut in stores in October.
Home Depot (HD) agreed to cut the price in its supply division sale to buyout firms by $1.8 billion, sources said on Sunday, as a housing market drop and a credit crunch forced all sides to renegotiate.
Marsh & McLennan (MMC) said it has agreed to buy back $800 million worth of its outstanding shares in an accelerated share repurchase transaction. The company said it will fund the transaction with proceeds from the recent sale of Putnam Investments and that it will conduct the purchase under the $1.5-billion share buyback authorization announced on Aug. 7.
Rambus (RMBS) said the special litigation committee established by the board has finished its review of stock options practices and submitted a final report to court. The special litigation committee was composed of two independent directors, J. Thomas Bentley and Abraham Sofaer, and it conducted its review with the assistance of independent counsel, the company said.
United States Steel (X) said it will buy Canadian steelmaker Stelco for $1.1 billion in a cash deal, including X paying $36.59 per share of Stelco.
Wal-Mart (WMT) is considering acquisitions in its home market as it seeks to open smaller stores and limit its reliance on giant supercenters for growth, the Financial Times reported.
Published by Minyanville.com

Labels: C, CROX, HD, Hot Stocks, MMC, RMBS, WMT, X

Buy Lehman Brothers (LEH), Jim Cramer said Wednesday on CNBC's Stop Trading! segment.
Cramer said the firing of 1,200 workers at the broker's BNC mortgage unit is good because they weren't making the company any money anyway.
Cramer said additional firings will be good at other struggling mortgage players like Countrywide (CFC), which he said will also benefit from reduced competition from marginal players going bust.
Published by thestreet.com

Labels: CFC, Jim Cramer, LEH, Stop Trading

Crocs (NasdaqGS: CROX - News): ' ... is stalled right here. I saw it go down a little. Understand: The short position remains huge ... When we have four major analysts covering it, only then will I say Don'tBuy.'Yamana Gold (NYSE: AUY - News): ' ... it is the only growth gold stock out there. It is making an incredible amount of money. ... It also produces copper at the same time.'Precision Castparts (NYSE: PCP - News): 'The bull market in aerospace and defense is back. Precision Castparts had a better quarter than almost every other supplier to the major airline companies.'Goodyear Tire (NYSE: GT - News): '... has had a major pullback ... Goodyear Tire is one of those companies ... best of breed. I think I like the stock up to the $32, $33 level.'InterContinental Exchange (NYSE: ICE - News): 'I like derivatives. I like commodies trading. ICE is good.'CME Group (NYSE: CME - News)NYMEX Holdings (NYSE: NMX - News): 'I am hopeful that the Nymex merges with the New York Stock Exchange. It would be a terrific deal.'NYSE Euronext (NYSE: NYX - News):'The only one of those that's done really badly is New York Stock Exchange, but I'm stickin' with it.'Vector Group (NYSE: VGR - News):Amazon.com (NasdaqGS: AMZN - News)Apple (NasdaqGS: AAPL - News)Google (NasdaqGS: GOOG - News)Research In Motion (NasdaqGS: RIMM - News)Reynolds American (NYSE: RAI - News)Altria (NYSE: MO - News): ' ... those dividends are for me, and that's why I stick with tobacco.'
Bearish calls:
CyberSource (NasdaqGM: CYBS - News)True Religion Apparel (NasdaqGM: TRLG - News): ' ... gotta tell you. I don't know if that swimwear line can move the needle. ... This group is very hard.'Superior Offshore (NasdaqGM: DEEP - News): 'Worst oil-service stock I have ever seen. I mean, it's unbelievable. ... This stock feels almost cursed. ... I can't abandon it at $10... Wait until the end of the month ...'

Published by SeekingAlpha

Labels: AAPL, AMZN, AUY, CME, CROX, CYBS, DEEP, GOOG, GT, ICE, Jim Cramer, Lightning Round, MO, NMX, NYX, PCP, RAI, RIMM, TRLG, VGR

Fun and GameStop (NYSE: GME - News)
Ahead of "the biggest video game event of the year," the September release of Halo 3, the flagship enterprise of Microsoft's Xbox video game system, Cramer would buy GME rather than Microsoft, since he thinks Halo 3's success will barely move MSFT's needle. GME is up 33% since Cramer recommended it in March. Cramer thinks of video games as a staple comparable to consumer goods, since they will always be bought in lean times, but cautioned viewers to buy GME only on weakness after Thursday's conference call, and advised against making the trade if the company misses estimates of between 9 cents and 13 cents. He would sell GME after Halo 3's release.
Penny Pinching: Dollar Tree (NasdaqGS: DLTR - News), Dollar General and Family Dollar (NYSE: FDO - News)
Although there is room for confidence that stocks will rise, the consumer is likely to cut down on spending by shopping at low-end stores. Cramer calls DLTR best-of-breed of inferior goods, since it has increased traffic for the sixth consecutive quarter, is accepting food stamps and debit cards and is increasing profits by selling merchandise that costs more than a dollar. In addition, DLTR should outperform rival Dollar General, which was recently taken private and is closing stores and FDO, which has double the stores of DLTR and may be facing saturation. Cramer would wait five days before buying DLTR, which has a sales growth of 4%.
CEO Interview: David Snow, Medco Health Solutions (NYSE: MHS - News)
David Snow reported $60 billion worth of brand drugs are "going generic between now and 2012," which means greater sales volume. The largest mail-order pharmaceutical distributor is averaging 6% growth yearly and is looking ahead with a "straight line of sight." Cramer would buy MHS on any decline.

Published by SeekingAlpha

Labels: DLTR, FDO, GME, Jim Cramer, Mad Money, MHS

Playing it Safe with Procter & Gamble (NYSE: PG - News)
As interest rates go lower, dividends will rise in value, and Cramer recommends PG as a "money in the bank" dividend stock. While at first glance, few would be impressed by a $64 stock with a 2.2% yield, Cramer reminded viewers that PG was at $30 in 2000. Reinvesting PG's dividend is like having "compound interest" said Cramer and he lauds PG for its "mega buyback." He predicts PG will reach $90 and is a good way to "Fed-proof your portfolio."
How Much is that PetSmart in the Window? VCA Antech (NasdaqGS: WOOF - News), PetMed Express (NasdaqGS: PETS - News) and PetSmart (NasdaqGS: PETM - News)
The heated discussion over NFL star quarterback Michael Vick's upcoming trial shows "people won't stand for cruelty to animals," said Cramer who unveiled some of his pet picks and peeves. One pet peeve was WOOF's "piled-up debt," but he liked discount pet pharmacist PETS for its personalized care. However, his best pet pick was PETM, which is up $3 from where he recommended it in January. PETM is known for selling "high-class premium" items and has $245 million cash on hand. PETM will remain the victor as its main rival, Petco, will probably close stores after being taken over by a "debt-ridden" company.

Everybody out of the Poole: Bear Stearns (NYSE: BSC - News), Countrywide Financial (NYSE: CFC - News), Goldman Sachs (NYSE: GS - News)
Cramer defended his vigorous criticism of St. Louis Federal Reserve President William Poole, who said interest rates should be raised, not lowered. Cramer accused Poole of "single-handedly attempting to destroy" the market and said he should put in his resignation. Senator Kent Conrad (D, N.D), chairman of the Budget Committee, was Cramer's guest caller and said Poole's proposal was "reckless and irresponsible" and would cause a calamity. He added difficulties at BSC, CFC and GS speak for themselves. Conrad added Poole' s statements showed a "lack of confidence" in the market, and Cramer concluded the segment with his hope that " people on Wall Street are as considerate as those in the Senate."
Mad Mail: Altria (NYSE: MO - News), Melco PBL Entertainment (NasdaqGM: MPEL - News), Las Vegas Sands (NYSE: LVS - News) and Wynn Resorts (NasdaqGS: WYNN - News)
Cramer says there is "good news coming" at Altria with a rise of 5 points to the 70s but not the 80s, since it is a stock "everybody already owns" and has limited upside. Atlhough he liked the IPO, Cramer says MPEL is now worst of breed and prefers LVS or WYNN.
Published By SeekingAlpha

Labels: BSC, CFC, GS, Jim Cramer, LVS, Mad Money, MO, MPEL, PETM, PETS, PG, WOOF, WYNN

Billionaire investor Warren Buffett may buy parts of beleaguered mortgage lender Countrywide Financial Corp (NYSE:CFC - News), some investors are speculating, according to The Wall Street Journal.
Countrywide's debt-servicing business and its portfolio of mortgages and mortgage-backed securities may be attractive to Buffett, the Journal reported on its Web site on Monday, citing unnamed investors.
Like many mortgage lenders, Countrywide has struggled with rising delinquencies and foreclosures, and an unwillingness among bankers to extend credit, and among investors to buy the loans it makes.
Countrywide, which is being closely monitored by U.S. regulators, sought to reassure investors earlier on Monday that it is safe to do business with the company.
Buffett has been increasing his stake in financial services companies, including those with significant exposure to the mortgage market.
Earlier this month, Buffett's investment company Berkshire Hathaway Inc (NYSE:BRK-A - News; NYSE:BRK-B - News) disclosed an investment in Bank of America Corp (NYSE:BAC - News), one of the six largest U.S. mortgage lenders, in a regulatory filing.
Berkshire is also a long-time shareholder in Wells Fargo & Co (NYSE:WFC - News), the second largest U.S. mortgage lender after Countrywide.
Wells Fargo has largely been spared the subprime mortgage-related woes afflicting smaller rivals, helped by its conservative underwriting standards.
Buffett told TV network CNBC last week that the worsening credit and housing markets may present some "real" investment opportunities.
Berkshire officials were not immediately available for comment. Buffett does not discuss what Berkshire is presently buying and selling.

Published by Reuters

Labels: BAC, BRK-A, BRK-B, CFC, Warren Buffett, WFC

Fannie Mae (NYSE: FNM - News): Cramer would stay off the Fannie Mae bandwagon, since the Bush administration and the FNM's top regulator, James Lockhart of the Office of Federal Housing Enterprise Oversight, have a "chokehold" on the company's mortgage portfolio. Cramer would not make a move unless this changes.
Countrywide (NYSE: CFC - News): Cramer says he needs to see evidence to back up the bank's bullish comments.
Lamar (NasdaqGS: LAMR - News), Celgene (NasdaqGS: CELG - News) and PDL BioPharma (NasdaqGS: PDLI - News): Lamar's video billboards may be too "eye-catching" and may be limited due to safety regulations. He is not sure about CELG, because it should be working but isn't. He sees PDLI as a possible takeover target after the departure of CEO Mark McDade.

Published by SeekingAlpha

Labels: CELG, CFC, FNM, Jim Cramer, LAMR, PDLI, Stop Trading

Under Armour (NYSE: UA - News): 'I know the stock is up a lot ... but you know what? I am sticking by it.'Crocs (NasdaqGS: CROX - News)Texas Instruments (NYSE: TXN - News): 'I'd rather see you in Texas.'Analog Devices (NYSE: ADI - News)Intel (NasdaqGS: INTC - News): ' ... and more important, I would rather see you in Intel.'Consolidated Edison (NYSE: ED - News)Deere (NYSE: DE - News)Agrium (NYSE: AGU - News)Monsanto (NYSE: MON - News)Seaspan (NYSE: SSW - News)Eagle Bulk Shipping (NasdaqGS: EGLE - News)General Maritime (NYSE: GMR - News)Integrys Energy (NYSE: TEG - News): 'High-quality electricity and natural gas distributor with a 5% yield ... That one I particularly like.'NYSE Euronext (NYSE: NYX - News): 'The estimates are too low. The volume's been great. ... That's why I like the New York Stock Exhange.'Air Products & Chemical (NYSE: APD - News)
Bearish calls:
Atmel (NasdaqGS: ATML - News)Hansen Natural (NasdaqGS: HANS - News): 'I have to give it a Don'tBuy, because I can't figure out why it was up today.'Terra Nitrogen (NYSE: TNH - News): 'I'd rather see you in Deere or Agrium or don't forget Monsanto. Those are better.'American Electric (NYSE: AEP - News): 'I think it's a well-run company, but I've got ConEd.'Akamai (NasdaqGS: AKAM - News)GrafTech (NYSE: GTI - News): ' ... At $14, it's too high for me. I'm going to tell you not to buy it.'
Published by SeekingAlpha

Labels: ADI, AGU, APD, ATML, CROX, DE, ED, EGLE, GMR, HANS, INTC, Jim Cramer, Lightning Round, MON, NYX, SSW, TEG, TXN, UA

On the Runway: KBW Regional Banking ETF (AMEX: KRE - News), National City (NYSE: NCC - News), Comerica (NYSE: CMA - News)
If Wall Street is a "gigantic fashion show," the next fashionable item will be regional banks, said Cramer, since they will make a profit from the Fed rate cut. He prefers KBW Regional Banking ETF to NCC and CMA because the ETF spreads the risk and is a good place to be if a regional bank is taken over. KBW has 50 holdings and a five-year earnings growth over 9.4%. In addition, the ETF has a "weighted average market cap" of over $2 billion. Cramer suggested waiting for the ETF to come down a bit before buying.
All About Advertising: eBay (NasdaqGS: EBAY - News)
While Cramer would wait to buy eBay, he discussed many reasons to like it; Ebay sells at 21 times next year's estimated growth, it has a "pristine balance sheet," it has over $3.6 billion in cash, it has 100million people buying and selling on the site and it owns Skype, Paypal and 25% of Craigslist. However, the next big thing for eBay is advertising; Ebay's revenue from ads increased 96% year over year in the second quarter, and Cramer thinks the estimates that the company will earn 32 cents a share on advertising are too conservative. He recommends this "long term investment" and "digitalization of commerce" play under $34.
The Parent is Alright: United Online (NasdaqGS: UNTD - News)
Cramer says internet provider United Online, which reaches 20% of the online population, is "too cheap to ignore." While it plans to spin off Classmates.com, Cramer prefers the parent to the IPO, because UNTD has a 6% yield, is debt-free and swimming in cash. He approves of the company's cost-cutting strategies in its dial-up operations, since a third of internet users in the U.S. still use dial-up. Cramer would wait for the stock to drop to $14 and says it is a good investment for those who like both safety and risk.
CEO Interview: Jerry Kennelly, Riverbed Technology (NasdaqGM: RVBD - News)
Tech thrived during the last major credit crunch in the 1990s, and Cramer thinks history is repeating itself. Cramer invited RVBD CEO Jerry Kennelly onto the show to discuss the laptop version of the company's Steelhead Mobile product. Kennelly said since workers are now on the job around the clock all over the world, the product will be in demand, since users can do "remote work at the same speed" as they would at the office. Cramer noted there are expected to be 543.1 million mobile office workers by 2009, and would buy the stock under $40.

Published by SeekingAlpha

Labels: CMA, EBAY, Hot Stocks, Jim Cramer, KRE, Mad Money, NCC, RVBD, UNTD

Schlumberger (NYSE: SLB - News), Texas Instruments (NYSE: TXN - News), Google (NasdaqGS: GOOG - News), Cisco (NasdaqGS: CSCO - News), Intel (NasdaqGS: INTC - News), RIM (NasdaqGS: RIMM - News), EMC (NYSE: EMC - News): With the Fed's rate cut, Cramer says people are now focused on what to buy, and sees SLB as a likely candidate, since it is trading at 17 times earnings estimates. Currently SLB is at 88, and Cramer thinks it may rally to 95. He also would buy TXN which has "the most aggressive buyback on the NYSE," and would pick up other quality tech names such as GOOG, CSCO, INTC, RIMM and EMC.
Published by SeekingAlpha

Labels: CSCO, EMC, GOOG, INTC, Jim Cramer, RIMM, SLB, Stop Trading, TXN

Bullish calls:
Honeywell (NYSE: HON - News): [CEO Dave Cote} '... is just the master of Honeywell. He's buying back stock hand over fist. He's doing a great job. ... Honeywell is absolutely a Triple Buy.'UBS (NYSE: UBS - News): 'Has been spindled, mutilated, crushed, whipped, and you know what? It's a great franchise, and it's going to come back. ... The stock is way, way off its 52-week high. ... Let's pull the trigger if we can around here and buy some UBS. ... It's going to start rallying.'Caterpillar (NYSE: CAT - News): ' ... is now down ... 16 straight points.'The Travelers (NYSE: TRV - News): 'I've got to send you to Travelers. I know that they've got great cash flow, and they take advantage of the absolute chaos.'Ingersoll-Rand (NYSE: IR - News): 'Warren Buffet has been buying this stock almost as aggressively as the company has itself ... is a buy.'Ametek (NYSE: AME - News): 'Precision instruments is a good business. ... I like Ametek.'American International Group (NYSE: AIG - News) ' I think that AIG may be a better bet now that the Fed has blinked.'Goodyear Tire (NYSE: GT - News): 'They did the restructuring, and the stock has been knocked down like every industrial company has ... I think you've got to stick with Goodyear.'US Bancorp (NYSE: USB - News): 'I think Warren Buffet has just bought a ton of USB. Very little exposure to the mortgage market. ... US Bankcorp is fine with me. I would stick with US Bancorp.'
Bearish calls:
Dynamic Materials (NasdaqGS: BOOM - News): 'It has been a stalled stock. Metal-working, welding -- you need a stronger economy for it. ... Don'tBuy Don'tBuy. I say be careful.'Life Partners (NasdaqGM: LPHI - News): 'I frankly don't understand what part of the life insurance business they're really in. ... That's a hard business to understand.'
Published by SeekingAlpha

Labels: AIG, AME, BOOM, CAT, GT, HON, IR, Jim Cramer, Lightning Round, LPHI, TRV, UBS, USB

Shorting Cramer
Summary: After analyzing infamous TV stock-picker Jim Cramer's picks using all available means, Barron's says the only way to make more money off his picks than buying a simple index fund or ETF is to short a stock's 'pop' the day after a Cramer mention. Based on YourMoneyWatch.com, a website run by a retired stock analyst and Cramer fan, Cramer's picks consistently underperformed the market, making 12% over the past two years (before commissions) -- vs. 22% for the Dow and 16% for the S&P 500. A database of Cramer's Mad Money picks maintained by his website (http://MadMoney.TheStreet.com) which covers picks over the last six months were flat to down compared to the broad market. It also showed no performance difference between Cramer's Lightening Round picks (in which he judges stocks mentioned by callers with no advanced notice) and his pre-prepared Mad Money picks, despite his insistence to the contrary.
CNBC, which airs Mad Money, told Barron's it was looking at the data incorrectly -- and that viewers should buy only the show's picks a week later. In an erroneous analysis, they say that Cramer's 'most-researched' stocks (about 12 a week) would have beaten the S&P by 0.8% over one month and 1.7% over two. The truth: They beat by 0.4% and 1.2% respectively, and fall short by 2.2% YTD. Barron's also questions how viewers are to know exactly which picks they should trade. His show's popularity, though, have been kind to Cramer's website, TheStreet.com: traffic, ad sales and shares have risen since Mad Money's 2005 launch, even as Cramer has sold off $4.6 million of his stake. When contacted by Barron's editor Bill Alpert, Cramer was belligerent. "I can show exact data, which says my picks are much better than the S&P," he insisted. Alpert spent weeks pursuing the not-forthcoming data.
Published by Bill Alpert at SeekingAlpha

Labels: Barron's, Jim Cramer, Mad Money

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Kensey Nash (NasdaqGS:KNSY - News) should report $0.09 EPS on Monday before the market opens. KNSY's PowerRating (for Traders) is 4.
Lowe's (NYSE:LOW - News) is expected to announce $0.61 EPS on Monday morning before the bell. LOW's PowerRating (for Traders) is 4.
Analysts are watching for Solarfun Power Holdings (NasdaqGM:SOLF - News) to report $0.04 EPS before the market opens on Monday. SOLF's does not have a PowerRating (for Traders) due to a short trading history.
Oplink Communications (NasdaqGM:OPLK - News) and Perry Ellis (NasdaqGS:PERY - News) both announce earnings after the close on Monday, so watch for heightened price action and volatility ahead of the close. OPLK's PowerRating (for Traders) is 4, and PERY's PowerRating (for Traders) is 4.
Countrywide Financial (NYSE:CFC - News) gained over 11% on Friday, after Banc of America gave the company a ratings upgrade, from Sell to Neutral. CFC's PowerRating (for Traders) is 6.
Nordstrom (NYSE:JWN - News) announced better than expected profit on Thursday, but said results were slightly lower due to the company's credit-card business. JWN's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CFC, Hot Stocks, JWN, KNSY, LOW, OPLK, PERY, SOLF

Bullish calls:
Total System (NYSE: TSS - News): 'I think Total System is worth much more than $27.'Crocs (NasdaqGS: CROX - News): 'will always keep some Crocs on hand ... I like the stock. It's had a nice pullback. It's having a nice quarter. ... I want to reiterate that Crocs is still in the growth phase. I'm not abandoning the story.'Nastech Pharmaceutical (NasdaqGM: NSTK - News): 'That's the one you want to be in.'Eagle Bulk Shipping (NasdaqGS: EGLE - News)General Maritime (NYSE: GMR - News): ' ... you know I like Gen-Mar.'Apple (NasdaqGS: AAPL - News): 'I think Apple's come back enough. I like it. It's one of my four horsemen. I know it's been crushed.'Terex (NYSE: TEX - News): 'Terex is an inexpensive company that over the next few months is going to go up big.'BioMarin Pharmaceutical (NasdaqGM: BMRN - News): 'That company is smoking. All the tests are good.'International Game Technology (NYSE: IGT - News): 'The way to play the big casinos. ... Great buybacks ... smart management. ... I think I'm gonna be right. I'm buying IGT. I'm sticking with IGT.'
Bearish calls:
QLogic (NasdaqGS: QLGC - News): 'They missed the quarter. We have so many tech stocks we like that are reporting great numbers. We do not need to go down the QLogic path.'Cepheid (NasdaqGM: CPHD - News): 'I still think the stock is too high. I want to ring the register.'Acadia Pharmaceuticals (NasdaqGM: ACAD - News)Knight Transportation (NYSE: KNX - News)WMS Industries (NYSE: WMS - News): 'I don't want you in that. It's not best of breed.'
Published by SeekingAlpha

Labels: AAPL, ACAD, BMRN, CPHD, CROX, EGLE, GMR, IGT, Jim Cramer, KNX, Lightning Round, NSTK, QLGC, TEX, TSS, WMS

Wells Fargo (NYSE: WFC - News), Countrywide Financial's (NYSE: CFC - News), Washington Mutual (NYSE: WM - News), Bank of America (NYSE: BAC - News), Wachovia (NYSE: WB - News)
Thursday's dash for financials may indicate the sector will be one of the "long-term beneficiaries" of Bernanke's position, but Cramer does not think they are safe. He tacked a double sell on WM but thought BAC and WB could survive. However, he reserved the lion's share of his praise for WFC, and said, "It is the great speculative play that should prosper." He believes WFC will "own the mortgage market" and will win with investors because it offers a great dividend. Cramer would wait for WFC to drop to the $32 - $34 range.
Sell Block: VMware (NYSE: VMW - News), H&R Block (NYSE: HRB - News), Capital One Financial (NYSE: COF - News), Friedman Billings Ramsey Group (NYSE: FBR - News) Lamson & Sessions (NYSE: LMS - News), Six Flags (NYSE: SIX - News)
Cramer urged investors to "stay the course" and added "no one ever made a dime panicking." However, he added it isn't too late to sell minerals and he feels tigher consumer spending will put pressure on retail. Cramer would sell VMW after its highly successful IPO, and would stay away from HRB, COF and FBR. He would also sell LMS as well as SIX because of low attendance due to the weather. He concluded it is better to invest in long-term stocks rather than quick trades in the current environment.
KKR Financial (NYSE: KFN - News), Thornburg Mortgage (NYSE: TMA - News) and Reynolds American (NYSE: RAI - News)
Not all high dividends are good dividends, Cramer declared and used KFN and TMA as examples. He added high-dividend names KFN and TMA aren't worth the investment because as their stocks fall so will the yields. Cramer likes RAI which has a dividend of 5.5% and is a "smart play" in this environment because "nothing is more defensive than cigarettes."
Mad Mail: Bear Stearns (NYSE: BSC - News), Jones Soda (NasdaqCM: JSDA) and Google (NasdaqGS: GOOG - News)
Cramer would avoid BSC and JSDA whose climb was "how to make a million" in the market. He adds GOOG is safe and likes the tech sector for its pristine balance sheets and great products.
Published by SeekingAlpha

Labels: BAC, BSC, CFC, COF, FBR, GOOG, HRB, Jim Cramer, KFN, LMS, Mad Money, RAI, SIX, TMA, WB, WFC, WM, WMV