Jim Cramer's Mad Money Review

Shaw Group (SGR), ABB (ABB)
Infrastructure is one of Cramer's favorite bull markets, and nuclear energy, particularly for emerging economies like India and China, is the sweet spot. Cramer's pick in this sector is Shaw Group, which reported a "beautiful quarter" with a 40% increase in revenue and a backlog of projects which is up 57% since last year and is triple the size of the company. Cramer prefers Shaw to ABB and added, "Given its diminutive size, I would be shocked if it was independent a year from now. But anyhow we like this one for the long haul."
Good as Gold: Yamana (AUY) Barrick (ABX)
Cramer reiterated his two favorite gold picks, Barrick and Yamana, as insurance against inflation. He stressed these are stocks to hold onto and should not be sold if one doesn't see immediate results. He noted AUY has a large mine in China, and ABX succeeds finding and producing more gold when other companies in the sector have stalled.
Sell Block: Peabody Energy (BTU), Massey Energy (MEE), Arch Coal (ACI), International Coal (ICO), Apache (APA), XTO Energy (XTO) Andarko (APC), ConcoPhillips (COP)
King Coal has been dethroned by a recent bill in Congress which threatens to raise dramatically the costs of burning the fuel, and will render stocks in the sector as "untouchable." While investors have been "coining money" with BTU, Cramer would sell the stock, as well as MEE, ACI and ICO. At the same time, Cramer declared "2008 is going to be the year for natural gas," and recommended buying XTO, APC, APA and COP.
CEO Interview: Matthew O'Connell, GeoEye (GEOY)
Matthew O'Connell announced the launch of the company's third satellite, and mentioned Boeing, General Dynamics and ITT participated in the production and launch of the satellite. "We paid up to get a great team," said O'Connell. Cramer said GEOY is and will remain a great speculative stock.
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Labels: ABB, ABX, ACI, APA, APC, AUY, BTU, COP, GEOY, ICO, Jim Cramer, Mad Money, MEE, SGR, XTO

Merrill Lynch (MER): 'Last week Merrill had estimates cut by Golden Sachs and it's done going down. ... That's the bottom. ... I like Merril Lynch. Barrick Gold (ABX): 'Don't trade down to Northgate. Trade up to Barrick.' ValueClick (VCLK): 'My short-term and long-term outlook is the same. ... ValueClick at 24 is going to have to be acquired by someone. ... I do a triple-buy on ValueClick.' National City (NCC) Huntington (HBAN) Corning (GLW): 'Corning's got two businesses ... it's got the fiber business, which I like very much, and it's got the crystal liquid display business, which I also like very much. I'm looking for an upside surprise in Corning.' Cramer's Take – Enbridge (ENB): 'I think Enbridge is one of the great pipeline companies. ... I recommend Enbridge.' Intuitive Surgical (ISRG) Companhia Vale do Rio Doce (RIO) China Mobile (CHL)
Bearish calls:
Ruth's Chris Steak House (RUTH): ' …it's a very well-run company ... But there is nothing that is setting the table. ... I think you should sell Ruth's Chris. ... It's just nothing special.' Cree (CREE): ‘It's been way too hard to trade, way too many disappointments. ... I want you to stay away from Cree.' Brunswick (BC): 'You cannot own that stock going into a slowdown. You have to sell that stock going into a slowdown.' Northgate Minerals (NXG): 'I owned the stock. ... They crushed me, I got beaten up…' First Bancorp (FBP)
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Labels: ABX, BC, CHL, CREE, ENB, FBP, GLW, HBAN, ISRG, Jim Cramer, Lightning Round, MER, NCC, NXG, RIO, RUTH, VCLK

Barrick Gold (ABX), Cramer: "the best gold stock to buy right now." Gold is breaking out because of the weak dollar, lower short-term rates and worries about inflation. Cramer prefers Barrick over other gold companies, because they have a lot of gold reserves and are "totally prepared for higher gold prices." The next call was about Freeport McMoran (FCX). Cramer thinks it will keep going up to $120.
Overlooked IPO's:
AthenaHealth (ATH). Cramer likes its subscription revenue and growth prospects. Athenahealth has 42% growth. He then took some more phone calls.
A caller asked about LDK Solar (LDK); Cramer doesn't like because he thinks there is a big sell off in China stocks coming. He also likes First Solar (FSLR) better.
Another caller asked about Blackstone (BX). Cramer thinks the stock has bottomed out and that there is a short term trading opportunity here.
Am I diversified?
First caller named the following five stocks: SAP (SAP), Annaly Capital Management (NLY), Nvidia (NVDA), BEA Systems (BEAS) and Honeywell (HON). Cramer said too many tech stocks. He said to keep BEA and consider buying a health care stock.
Second caller had Apple (AAPL), Trimble (TRMB), Xoma (XOMA), Freeport-McMoRan (FCX) and Goldman Sachs (GS). He suggested selling Trimble and, again, picking up a health care cost-container like Hologic.
The last player's five picks: Monsanto (MON), PepsiCo (PEP) Research In Motion (RIMM), U.S. Steel (X) and Exxon Mobil (XOM). Cramer blessed the portfolio as diversified.
Mad Mail: Responding to an email, Cramer called Walgreen (WAG) "still too expensive," and said he likes the cheaper CVS (CVS), which he owns for his charitable trust, better. He said, "Stay away from Walgreen."
Sudden Death: Cramer was bullish on Flotek Industries (FTK), Celgene (CELG) and Crocs (CROX).

Labels: AAPL, ABX, ATH, BX, FCX, FSLR, Jim Cramer, LDK, Mad Money, Mad MOney Recap, NLY, SAP

Wall Street traded mixed Tuesday, selling off large companies' stocks but buying up those of smaller companies, as investors cashed in gains from Monday's big rally and poked around for new bargains.
Investors were only slightly fazed by the National Association of Realtors' report Tuesday that its seasonally adjusted index of pending sales for existing homes fell 6.5 percent in August from July and 21.5 percent from a year ago. The data suggest sales of existing homes will probably keep declining in the coming months -- bad news for the economy, but good news for those hoping for another interest rate cut.
After the Federal Reserve lowered rates on Sept. 18, the stock market is hoping for a similar move again at the Fed's Oct. 30-31 meeting. That optimism drove the Dow Jones industrial average up nearly 192 points Monday to close at 14,087.55 -- a new high and its first foray above the 14,000 level since mid-July, right before a credit market squeeze triggered a stock selloff.
On Tuesday, the Dow fell as investors sold some of their large-cap stocks, such as Honeywell International Inc., ExxonMobil Corp. and United Technologies Corp., which have recently performed well. Also, with commodities prices retreating and the dollar rebounding, big oil and mining companies -- such as Exxon Mobil -- may see smaller profit margins.
"The economy is soft, you have this big run-up, and the fact is people are just taking some profit," said Scott Fullman, director of investment strategy for I. A. Englander & Co. "There's not a ton of news to trade on, and investors are also looking ahead to the unemployment report on Friday."
Meanwhile, small-cap stocks rose as investors returned to companies that were unattractive during the summer's tight credit environment and now appear cheap.
"Larger-cap companies don't need to do borrowing. After the rate cut, those who believe there will be another rate cut would want own smaller-cap stocks," said Matt Kelmon, portfolio manager of the Kelmoore Strategy Funds.
In late afternoon trading, the Dow fell 56.01, or 0.40 percent, to 14,031.54.
Broader stock indicators were mixed. The Standard & Poor's 500 index fell 2.52, or 0.16 percent, to 1,544.52, while the Nasdaq composite index rose 0.94, or 0.03 percent, to 2,741.93.
Source: Madlen Read, AP Business Writer

Labels: ABX, C, CBH, GM, HON, NEM, TD, UTX, XOM