Jim Cramer's Mad Money Review

"If we ever want to see a sustainable rally again, we need dramatic action," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

He said that the systemic risks to the market have once again put the possibility of another Great Depression back on the table. "We are not done going down," he said.

Cramer unveiled his "tough love" plan for taking the risk out of the markets and restoring confidence in the U.S. economy. He called on President-elect Barack Obama not to wait until January to take action. "We need to act now," he said.

Here's his eight-point plan. First, Obama needs to hold a press conference and announce that the federal government will not allow any more big financial institutions to fail.

Second, we need to ensure the the safety of all life insurance and annuities. It may take another bailout or consolidation, but another AIG (AIG) scare cannot happen.

Third, the government must stem house price depreciation by issuing tax credits for home purchases and by reinstalling the TARP plan with changes that don't penalize the banks for taking aid.

Fourth, the government must insure the bonds of both Fannie Mae (FNM) and Freddie Mac (FRE) to allow those institutions to continue their work.

Fifth, the government must step in to buy up and stabilize some of the collateralized debt obligations, or CDOs, to stabilize that market.

Sixth, the government must providing financing for any auto company that files for bankruptcy and provide no relief for those that don't. Some must be saved, but possibly not all three.

Published By TheStreet.com

Labels: AIG, Fannie Mae, FNM, FRE, Freddie Mac, Jim Cramer, Mad Money, TARP

The administration has to present this as: If you vote against this, you want to kick people out of their homes, Jim Cramer said on Wednesday's Stop Trading segment on CNBC, referring to the government's proposed bailout plan.
Cramer offered his opinion on four financial stocks. AIG (AIG), he said, is a total loser. I think AIG would be down substantially if not for the reason you can't short.
He called Freddie Mac(FRE ) and Fannie Mae(FNM) interesting. Since you can't short them and since both companies - and particularly Fannie Mae - have portfolios that would benefit greatly from the government's plan, Cramer said, he can understand why some might see a rational for owning them and flipping them. But, he said, I don't want to buy any dollar stock.
People see potential for Washington Mutual(WM), too, he said. There's a lot of people who feel like the moment the plan gets in, there's going to be a premium bid for Washington Mutual. I think that's just ridiculous.
Moving away from financials, Cramer said that if the rules against offshore drilling are done away with and we actually open up our shores, Schlumberger's(SLB) a big win, not just Transocean(RIG). Transocean is the leader, he said, and Schlumberger will follow.
Published By TheStreet.com

Labels: AIG, American International Group, CNBC's Stop Trading, Fannie Mae, FNM, FRE, Freddie Mac, Jim Cramer, Stop Trading, Washington Mutual, WM

Fear, not facts or fundamentals, is what's driving this market, Jim Cramer told viewers. He warned that while the selling might not be over, investors will miss some opportunities of a lifetime if they stay too negative. The fear in the markets today reminded Cramer of the great market crashes on 1987 and 1990. However, citing President Franklin Delano Roosevelt, he told viewers that the only thing they need to fear, is fear itself. He said that while everyone is worried about the system and have no confidence in the system, ultimately the system will emerge again. In times like these, said Cramer, it's wise to return to the fundamentals and look for solid companies with good long-term outlooks. We are not a bankrupt country with bankrupt companies, he said. Keep your powder dry and wait for the opportunities to emerge. Cramer reminded viewers that after the crash of 1987, every stock on the most active list before the crash was higher a year later. He said that today is likely not the bottom for this market, but there will be a time to buy again soon. Don't stay negative forever, he said.
American International Group (AIG)
We are better off today than we were yesterday, Cramer told viewers. Despite the market's huge sell off, he took a moment to talk about what went right today. Cramer said that the surprise bailout of American International Group is big news for the markets. Yesterday, he said, we were worried AIG was going under. Today, we know it's going to be OK. Yesterday, we were worried about other banks failing as a result of AIG. Today, another one of the market's black holes has been filled and we don't have to worry as much. Now that the danger of AIG's failure is off the table, we don't have to worry about the mortgage insurance policies the company held. Cramer also said the SEC's announcement of new rules against relentless short selling is big news for the markets. He credited Chairman Christopher Cox with making a good first step to undo the damage caused by short selling and urged the Chariman to go one step further and reinstate the uptick rule, which requires a stock to tick up in price before it is sold short.
Published By SeekingAlpha

Labels: AIG, American International Group, Jim Cramer, Mad Money

If ever there was an institution that's too big to fail, it's AIG, Jim Cramer told viewers of his Mad Money TV show Tuesday.
He said if the U.S. government allows AIG (AIG ) to fail, there could be a catastrophic deflation of assets around the world.
Cramer said the Dow could fall 1,000 points if AIG is not fixed correctly. He said the number of individuals and businesses that depend on the company is staggering and the effects of a failure would be felt worldwide.
Cramer cited AIG's Dec. 6 conference call, when the company said it had $500 million of exposure to risky loans in Europe. With bailout estimates for AIG now approaching $100 billion, Cramer argued the amount of European exposure would have to be substantially higher.
Cramer said a failure of AIG would easily cause European bank failures and possibly failures elsewhere in the world.
Cramer said Fed Chairman Ben Bernanke let us down with his decision to leave the federal funds rate unchanged earlier today. He said the move could really screw up the U.S. economy, adding the easiest way for banks to rebuild their assets is through a lower fed funds rate.

On the contrary, I believe that Bernanke made the correct decision. With all of these bank failures and job cuts (ex. HP is cutting 24,500 jobs), the last thing the average American needs to deal with are inflationary pressures that would be brought about by further rate cuts. The dollar is also finally gaining some momentum in the world markets, it would be a shame to disrupt this positive move.

Source: TheStreet.com

Labels: AIG, American International Group, Ben Bernanke, FDIC, Jim Cramer, Mad Money

AIG(AIG ) cannot fail, said Jim Cramer on Tuesday's Stop Trading segment on CNBC. It's the No. 1 institution in the world right now that must be saved. Everything else could go except for AIG.
Cramer said AIG needs to be saved in a pass-the-hat-around fashion, referring to what he sees as a worldwide investment in its success. The middle bank index is doing well, he said, but that doesn't matter. Frankly, I don't really care if my community bank is doing well, he said. I care about AIG and the fate of Western banks, all of which have relied on AIG at some point for a risk transfer.
As for Goldman Sachs(GS ), Cramer said: "Everybody hates them! They're the most hated group of guys I know. He said that it's as if no one who's talking about Goldman right now listened to its conference call.
Goldman will continue to flourish. They are too conected to the government with Hank Paulson as the Treasury Secrectary. They about the biggest problems in the country before anyone else. That is why Goldman has always been the best at predicting market conditions.
Source: TheStreet.com

Labels: AIG, American International Group, Goldman Sachs Inc., GS, Jim Cramer, Stop Trading

It was a brutal day on Wall Street. The fall of Lehman Brothers, Merrill Lynch and American International Group demonstrated once again the need for market transparency and the height of CEO arrogance and denial. Cramer singled out Richard Fuld, Lehman's CEO, who, he said, passed up opportunity after opportunity to save his company. He said Fuld hurt his company by being so self-absorbed, self-interested and so sure of his company's future. For his failings, Cramer removed Fuld from his Wall of Shame, noting the CEO wasn't being removed because he was ousted but because he drove his company to bankruptcy. By contrast, Cramer had kinder words for John Thain, Merrill Lynch's CEO. He said Thain did the most he could for his company, which has agreed to be purchased by Bank of America. Cramer said he had urged AIG to take action but said his advice fell on deaf ears. He said Robert Willumstad, the company's CEO, made the mistake of keeping silent on AIG's mortgage exposure and shunned the opportunity to sell when he had the chance. Cramer said the Securities and Exchange Commission complicated matters by not pushing for greater transparency as it did when it dealt with E-Trade's problems. Cramer called today's historic market collapse a disgraceful period in laissez-faire capitalism that was marked by poor government oversight.
Source: SeekingAlpha

Labels: AIG, American International Group, Jim Cramer, LEH, Lehman Brothers, Mad Money, MER, Merrill Lynch

Jim Cramer said Monday on CNBC's Stop Trading that it would be a tragedy if the government lets troubled AIG(AIG ) fail.
I would radically have to change my view of where the market goes if it fails, Cramer told Erin Burnett. This one needs to be stopped. I don't know how to stop it.
AIG will be allowed to use $20 billion in assets held by subsidiaries to help stay in business, New York Gov. David Paterson said in a news conference Monday. The insurer, which has already raised $20 billion in fresh capital in 2008, on Sunday turned down an offer from private equity firm J.C. Flowers & Co. that would have allowed the investor to acquire AIG for $8 billion under certain circumstances, The Wall Street Journal reported.
This is not Bear, or Lehman(LEH) where all they have is Neuberger.
The other, riskier group includes AIG, MBIA(MBI ), PMI(PMI ) and Ambac(ABK ).
AIG is so opaque; they never disclosed what they own, Cramer said.
If you could just call a timeout, AIG would be able to sell a lot of different things, Cramer said. If it's in free fall and beaten down by the shorts, and we don't change the uptick rule, AIG must not fail.
Published By TheStreet.com

Labels: ABK, AIG, American International Group, J.C. Flowers, Jim Cramer, LEH, Lehman Brothers, MBIA, PMI, Stop Trading

Buy Ralph Lauren (RL), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"I like it because of the J.C. Penney (JCP) tie-in," Cramer said. He said today's move "seems like a bit of a short squeeze," he said, but "I think it can go higher from here."
Elsewhere in apparel, Cramer said that VF Corp. (VFC) "is the analogue of Ralph Lauren. ... If Ralph Lauren's good you don't leave this stock."
Cramer went on to praise management at Eaton (ETN). He said the company is "part of my new-tech world," and predicted it would hit a 52-week high. He said he also likes Emerson (EMR). "These companies are on fire," he said.
Of Nucor (NUE), Cramer said the company's secondary offering is an entry point. He advised more caution on Cleveland-Cliffs (CLF). "Let it cool off before you buy it here," he said.
Cramer was less bullish on AIG (AIG) and Wachovia (WB). "These are serial needers of capital," he said. He said firing AIG CEO Marty Sullivan would cause the stock to go up, and chastised Wachovia for its acquisition of Golden West. "This was one of the dumbest acquisitions ever and they're paying for it," he said.
"If they knew what they owned I would be more comfortable," Cramer said of AIG and Wachovia. "They're like Citigroup (C)." He said that when the companies claim to know what they have, "they're being wishful."
Published By TheStreet.com

Labels: AIG, C, CLF, EMR, ETN, JCP, Jim Cramer, NUE, RL, Stop Trading, VFC, WB

Altria (MO), Bank of America (BAC), Chevron (CVX), Honeywell (HON), Conco-Phillips (COP), Freeport-McMoran (FCX), Schlumberger (SLB), American International Group (AIG), Pfizer (PFE), Cisco (CSCO)
Cramer was disappointed with Dow Jones' facelift which involved getting rid of Altria, and Honeywell, and adding Bank of America and Chevron. Three economic themes Cramer thinks should have been expressed in the Index changes are the growing importance of natural resources, the dwindling power of the financial sector and international growth. None of these themes were reflected in today's choices, Cramer commented. He said a financial should have been removed rather than added to the Dow, COP would have been a better choice than CVX, and would have considered including FCX or SLB in addition to keeping HON. He would have dropped AIG which is a travesty masquerading as an insurance company whose CEO, Martin Sullivan, was recently added to Cramer's Wall of Shame. He would also give Pfizer the pink slip, and would consider adding CSCO, since it is diversified.
Raytheon (RTN)
In spite of Goldman's Sachs note of Early indications of slowing growth in defense spending..., the military budget keeps growing; President Bush is asking for a $515 million for 2009 which is a 7.5% increase. Cramer likes RTN in this space because it has strong international sales, and is up 25% since Goldman's downgrade last March, but he would wait for a pullback before buying.
McDonald's (MCD), Darden (DRI)
One month of data does not justify a bearish position on a restaurant stock, said Cramer, noting McDonald's $6 rise since Bear Stearns hastily downgraded the stock for weak December same store sales (January same store sales increases 5.7%) An even faster kneejerk (or, rather, prejerk) occurred when Darden was downgraded only a few minutes before its better-than-expected guidance was released. The moral of the story, according to Cramer, is that when analysts unfairly downgrade stock on scant data, it is time to buy. Cramer would buy MCD now even though it has risen a bit.
Published By SeekingAlpha

Labels: AIG, BAC, COP, CSCO, CVX, DRI, FCX, HON, Jim Cramer, Mad Money, MCD, MO, pfe, RTN, SLB

Capital One Financial (COF), American International Group (AIG), CIT (CIT) Cramer said AIG and COF are not transparent enough to own, because no one is sure about their assets and liabilities. While a bigger interest rate cut might have saved these companies, Cramer said after the Fed's small cut, the two companies look "too darn bad" to hold. While he did like both of these companies at one time, unlike CIT which makes all pertinent information known to investors, COF and AIG have closed books. In addition, COF recently commented on rising delinquency with credit cards, wasted its capital buying back stock at a high price and has "virtually no yield support." While AIG insists it is not being affected by bad loans, it is not providing evidence to support this claim, and Cramer says its yield is insufficient.
CEO Interview: James Hackett Anadarko Petroleum (APC)
"I believe 2008 is going to be the year for natural gas," Cramer said. "It's leaner, meaner and cleaner than coal." APC is a Cramer's natural gas growth pick, since it has raised its production guidance and is actively drilling. Cramer asked James Hackett why the presidential candidates weren't discussing natural gas, and Hackett replied the fuel is unjustly overlooked. Hackett added the company is drilling ambitiously and has made acquisitions to facilitate working overseas. While it is a challenge to drill in the Gulf of Mexico because of federal regulations, Hackett said people who manage to drill in the region should be encouraged. Cramer called Hackett a "hero" who is "making you money."
Mercadolibre (MELI)
Cramer says MELI which processes e-commerce transactions and is based in Latin America has a similar story to Google and Baidu and will continue to run. While he would usually suggest waiting for a pullback, Cramer wouldn't wait too long to buy MELI
Published By SeekingAlpha

Labels: AIG, APC, CIT, COF, Jim Cramer, Mad Money, MELI

Trish Regan started the show by stating that financials are up today, leading stocks to trade higher. The DOW is down about 5.3% for November. Nasdaq down 7.4% for November. Stocks are on pace for first 2 day winning streak this month. Next, the economy was discussed with Steve Liesman. He says the FED needs to take into account the market, despite dips in the credit institutions; flexible policymaking is required when dealing with volatility within the financial sector. AIG, American Express and IBM are the leaders in the financial sector today. Crude Oil reaches a two week low with a drop of almost 3%; at under $92/barrel. Freddie Mac and CITI Group are among the leaders for finances. The U.S currency index is up almost a point. Next, shareholders vs. the sec; Dan Pedrotty says that the sec is not following through to protect investors. Among these proxy proposals is the stipulation that shareholders, owning 5% or more of the company, can elect new company directors. The objective is to provide opportunities for involvement among the shareholders. Merrill Lynch is expected to have a good day. Next was the real estate market. Steve Liesman of CNBC says mortgage and interest rates are very tight. The mortgage lenders are demanding high equity loans, and those consumers who are aggressive can find the money they need, in the upcoming months. Next, David Fondrie of Heartland Investors says that Cimarex Energy (XEC) and Conocophillips (COP) would be good choices for buying today. Allan Hubbard resigns from his position as economic advisor to the Bush Administration. Keith Hennessey will be replacing him. Hubbard says he is leaving so he can spend more time with his children.

Labels: AIG, Citigroup Inc., CNBC, CNBC's The Call, COP, Fed, IBM, MER, The Call, trish regan, XEC

Erin Burnett started the show today asking if CITI Group's decision to sell almost 5% of their company to the Arabs was such a good one. Also that crude oil is down about 3%. Steve Leisman says that focus is being taken off the weak dollar and on to the weak economy. Future plans are in effect for the improvement of consumers concern with the state of the economy and risk of recession. Abu Dhabi has paid over $7 B (The biggest purchase of an American Company buy a foreign) to make part of CITI. Arabs are looking for financials, homebuilders and hotels. Anything from actual buildings to stock equity sharing on the financial sector side are up for grabs. Sen. Chuck Schumer of New York shows concern for a continuing opportunity for American investments. As a democrat, free trade is not a top priority for him, and he wants to avoid building walls in between Americans and business buy giving power to foreign investors. The Arabs say they have no interest in board or managerial roles, only to play as a passivist support group who believes in the potential of American companies. David Weber says MasterCard (MA) and Research in Motion (RIMM) are his picks for the day. Next, there was the real estate market. David Blitzer of Standard and Poor's says that prices are driving foreclosures, resulting in a 524,000 fewer jobs and $6.6 billion lost in taxes. Also that a mass amount of foreclosures are driving the prices of surrounding homes down. The worst hit is New York at a loss of over $10 B. You can keep updated by visiting; realtycheck.cnbc.com. Next, Russia will be electing a parliament on Sunday, Dec 2nd. Julian Mayo of U.S Global Investors Eastern Europe Fund says that increased certainty is acknowledged for the outcome, being in supporters of Vladmir Putin's favor. The Russian market is leading the world. Utilities and Telecomm are the top performers in Russia. An update for CITI Group says that the company has not closed off opportunities for foreign purchase and investment. Rick Santelli of CNBC says that apparently CITI is looking for more than $7.5 B. and a loss of ownership by more than 5%. David Faber of CNBC says that raising capital will be the main concern for financial institutions as a result of CITI's decisions. More write-downs to come for consumers, and more capital to be raised will likely come from Arab investors and foreign petroleum dollars. Jim Cramer with Stop Trading was next. American International Group (AIG), and JP Morgan (JPM) are among his choices for likely candidates for middle eastern investors. He says that more capital for the corporations should be a positive thing for consumers. Jim Goldman of CNBC says that Verizon (VZ) announced that they will promote unrestricted access. This makes Verizon a much stronger competitor in the future. With 64M wireless customers in the U.S, Verizon will cause even more problems for companies such as Sprint and Nextel.

Labels: abu dhabi, AIG, Citigroup Inc., CNBC, CNBC's Stop Trading, Erin Burnett, Jim Cramer, Jim Cramer's Stop Trading, JPM, MA, RIMM, Sprint Nextel, Street Signs, street signs recap, VZ

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

Yamana Gold (NYSE: AUY - News): Cramer urged viewers to hang on to gold stocks, especially AUY which had a great quarter, but is down 3% because "gold is selling off in a deflationary spiral."
AIG (NYSE: AIG - News): This company is a buy because it has the right bonds, and not those associated with sub-prime mortgages. In addition, AIG is aggressively buying back shares, Cramer said.
Fannie Mae (NYSE: FNM - News): While Cramer thinks FNM could provide a help limit the damage from the housing crisis, he laments the lack of political will to mend the situation.
Published by SeekingAlpha

Labels: AIG, AUY, FNM, Jim Cramer, Stop Trading

Dow but not Out: JPMorgan Chase (NYSE: JPM - News), General Motors (NYSE: GM - News), Citigroup (NYSE: C - News), AIG (NYSE: AIG - News), Honeywell (NYSE: HON - News), DuPont (NYSE: DD - News) and Hewlett-Packard (NYSE: HPQ - News), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Pfizer (NYSE: PFE - News) and Merck (NYSE: MRK - News)
After its mid-week drop, the Dow's rally on Thursday inspired Cramer to express confidence in the market and to repeat his prediction that the Dow will reach 14, 548 by the end of the year. He notes only four Dow stocks, JPM, GM, C and AIG are levered to current problems and only JPM and C are directly connected to mortgages. However, he commented HON, DD and HPQ have "beautiful" balance sheets and T, VZ, PFE and MRK will be able to survive the current market. Because of the strength of these stocks, the Dow wasn't crushed yesterday like it was "supposed to be," Cramer said.
The Windy City Merger: CME Group (NYSE: CME - News)
A good way to profit from the vicissitudes of the current market is to invest in CME, which Cramer recommends following its acquisition of the Chicago Board of Trade. Cramer likes the merger so much he thinks the Justice Department should never have allowed it to happen, since CME now has its "hands into everything" and can charge whatever it wants. While CME is trading at 30 x earnings, it is growing at a 20% clip this year, and its growth rate should reach 30% in 2008.
Sell Block: Buffalo Wild Wings (NasdaqGS: BWLD - News), General Cable (NYSE: BGC - News), Mastercard (NYSE: MA - News)
Since BWLD, BGC and MA got crushed after reporting better-than-expected quarters, Cramer explained "why bad things happen to good stocks." First, since all three had been rising rapidly, the bar was raised and "better-than-expected" just wasn't good enough for The Street. Second, there was a "hair" on each quarter, which is Wall Street jargon for a small flaw, or "hair" on a better-than-expected number. It was alleged that MA experienced domestic slowing, BWLD had slightly lower same-store sales and BGC had a downbeat outlook. However, Cramer said the main trick is knowing when to get rid of stock; "You can't count on me to tell you when to sell," he warned listeners, adding he can't always call a top. He said it is safe to sell the stocks now, since they are still high.
CEO Interview: Gregory Milzcik Barnes Group (NYSE: B - News)
Gregory Milzcik says his company is in the "sweet spot" of the current cycle; "We focus on difficult-to-manufacture parts but are also positioned great on high-volume, high-growth platforms, like that of the 787." He adds analysts are not really disappointed with the company, but want to see sales and margin growth, which Barnes Group can deliver. The company has expanded into Europe's "booming" market. Cramer commented; "Let the downgrades come, and then I would buy some. This stock's just way too cheap when it gets down to $20."
Published by SeekingAlpha

Labels: AIG, B, BGC, BWLD, C, CME, DD, GM, HON, HPQ, Jim Cramer, JPM, MA, Mad Money, MRK, pfe, T, VZ

Alcoa Inc. (NYSE: AA - News), Altria (NYSE: MO - News), American Express (NYSE: AXP - News), American International Group (NYSE: AIG - News), AT&T (NYSE: T - News), Boeing (NYSE: BA - News)
Cramer predicted another 1,000 points for the Dow by the year's end and dedicated the week to discussing the 30 Dow stocks. He noted AA has been up 30% and predicts it will reach $42-$45. If it combines with Alcan, Cramer says AA could be part of a "delicious aluminum oligopoly." Cramer comments MO's 10% rise is not enough, especially given its 4% yield. Since it has spun off Kraft, Cramer envisions MO dividing into International and American divisions, one with a big dividend and one with growth potential. Cramer says AXP is "deceptive," since it quietly delivers but is up only 5% this year and is trailing behind Mastercard in valuation. He predicts AXP will climb up to $72. AIG doesn't get the respect it deserves, according to Cramer who says Metlife should not be worth more than AIG, which has a gigantic business in China. He says AIG has been held back by the massive selling of deposed head Maurice "Hank" Greenberg, and is a $81 name masquerading as a $71 stock. AT & T surpassed Cramer's expectations, since it has risen 13% after he predicted a mere 6 point rise. His new prediction is T will inch its way to $45. Cramer also revised his target for BA from $100 to $105 because of its excellent earnings.
Give Some Credit to Total System Services (NYSE: TSS - News), Automatic Data Processing (NYSE: ADP - News)
Cramer would buy TSS, a debit and credit card information card processor, which is a subsidiary of Synovus Financial. Although in similar situations, Cramer usually prefers a parent company, he feels that TSS could get taken over by a private equity firm. In addition, TSS has solid fundamentals, double-digit growth and is debt-free. While ADP may also be a takeover target, Cramer feels TSS is a better option because it is cheaper.
CEO Interview: John Sztykiel, Spartan Motors (NasdaqGS: SPAR)
John Sztykiel discussed the "tremendous amount of profitable growth ahead for the company," and explained the company is focused on three growth opportunities; mine-resistant ambush-protected vehicles, recreational autos and emergency vehicles. While Cramer comments SPAR has paused for a bit, he likes its story and says it is in "bull-market" mode.

Labels: AA, ADP, AIG, AXP, BA, Jim Cramer, Mad Money, MO, T, TSS

Amgen (NasdaqGS: AMGN): 'Worst is over ... we've seen the stock go from 55 to 60 ... Let's buy some Amgen.'GOL Linhas Areas Inteligentes (NYSE: GOL - News): 'At 28, we got a gift here. ... Brazil is up 28% for the year. We had a little profit-taking. Pull the trigger. Make your move.'Bank of America (NYSE: BAC - News): 'Feels real good to me here. ... at 51 with a 4.3% yield, you are going to make money.'Jones Soda (NasdaqCM: JSDA): 'We have seen the stock triple. ... 20 it goes to 30. Down 4, do we start buying it again? Yeah, I would buy Jones Soda down here.'American International Group (NYSE: AIG - News): 'I own AIG, up nicely but not enough. Every day I go home and curse Hank Greenberg ... because he's constantly selling the stock. ... if he would ever stop selling, the stock would go to 75.'Flowserve (NYSE: FLS - News)Rigel Pharmaceuticals (NasdaqGM: RIGL)Nastech Pharmaceutical (NasdaqGM: NSTK): 'I would rather do Nastech.'Cemex (NYSE: CX - News): 'Cemex is going to have a monopoly on cement by the time they're done.'Homex Development (NYSE: HXM - News)PDL BioPharma (NasdaqGS: PDLI)United Online (NasdaqGS: UNTD)Vertex Pharmaceuticals (NasdaqGS: VRTX)Lundin Mining (AMEX: LMC - News): 'When that stock got to 10, once again the hate mail so thick that I was just swimming in it. ... I am just one first-class masochist. I backed the truck up to that name. And that's why it's at a 52-week high.'
Bearish calls:
First Marblehead (NYSE: FMD - News): 'Up 2 bucks in reaction to the big selloff yesterday, but SellSellSell.'Optium (NasdaqGM: OPTM): 'Like the high bandwidth, optical networking, but Don'tBuy. This group is too hard for me.'Peabody Energy (NYSE: BTU - News): 'Just went from 38 to 48. ... I think that BPU pulls back to 45, and that's where you do it .'
Published by SeekingAlpha

Labels: AIG, AMGN, BAC, BTU, CX, FLS, FMD, GOL, Hot Stocks, HXM, Jim Cramer, JSDA, Lightning Round, LMC, Mad Money, NSTK, PDLI, RIGL, UNTD

Wachovia (NYSE: WB - News), Washington Mutual (NYSE: WM - News), Prudential (NYSE: PRU - News), MetLife (NYSE: MET - News), AIG (NYSE: AIG - News) and Allstate (NYSE: ALL - News)
Cramer warns the shorts are going to make a comeback attack on financials and claim Tuesday's rally was merely a short squeeze. "That's the way to play it," said Cramer, who predicts the shorts may claim that WB will have to spend its dividend or WM is in "big trouble." However, Cramer likes insurance companies PRU and MET, but is a "little more concerned" about ALL because of sluggish growth. Although AIG had a "blowout quarter," he adds $70 is where former CEO Hank Greenberg "lives to sell the stock." Cramer would stay away from regional banks because of mortgage issues; "I could rumor down any of the regional banks right now," Cramer continued. They are easy to take down."

Labels: AIG, ALL, Jim Cramer, MET, PRU, Wall Street Confidential, WB, WM

Marsh & McLennan Companies has announced the signing of a definitive agreement to sell Putnam Investments for $3.9 billion in cash to Great-West Lifeco, a financial services holding company controlled by Canada-based Power Financial Corporation. The deal is set to close by mid-year subject to regulatory and client approval. Putnam had $192b under management at the end of '06. Regarding the deal, MMC's president and CEO commented, "We will receive an attractive price for Putnam, strengthen our ability to focus on our core businesses, and significantly enhance our financial flexibility." He mentions the possibility of using the proceeds along with cash flow to further invest in core businesses as well as stock repurchases and debt reduction. The Wall Street Journal reported of a provisional MMC-Power Financial deal last month. Goldman Sachs and Merrill Lynch advised MMC on the transaction. MMC's shares lost 0.3% closing at $29.50 in normal trading yesterday.
Published by SeekingAlpha

Labels: AIG, AOC, Hot Stocks, ING, KIE, MMC

Four Dividend Gifts: U.S. Bancorp (NYSE: USB - News), National City (NYSE: NCC - News), Asbury Automotive (NYSE: ABG - News), and United Online (NASDAQ: UNTD - News)
Cramer listed four stocks that "keep on giving" with their great dividends. U.S. Bancorp has a 4.4% yield and a 35 year history of consistently raising its dividend, Cramer observes, adding that it has a good buyback program and a "pristine balance sheet." In addition to National City's 4.2% dividend and its "big fat buyback" Cramer applauds the company for getting rid of its low-margin mortgage business and setting up a position in Florida. ABG, which sells cars in the $30,000 to $35,000 range has good earnings growth, comments Cramer, and has the money to raise its 3.3% dividend. Finally, Cramer calls UNTD "the big one" with a 6.1% dividend and a "serious growth business."

Hot and Cool: Omniture (NASDAQ: OMTR - News), InnerWorkings (NASDAQ: INWK - News), Riverbed (NASDAQ: RVBD - News), DivX (NASDAQ: DIVX - News) and Acme Pocket (NASDAQ: APKT - News)
Last week, Cramer discussed "hot stocks" and said that OMTR, INWK and RVBD were not "too hot to buy," and are good for the next six to nine months, but on Friday he emphasized that he would sell DIVX. Cramer's fifth hot stock is APKT, which is a pioneer in the Internet telephony business and "hasn't even started to run yet." Cramer notes that it has reported good profits for four consecutive quarters, has "massive revenue growth" and, since it is covered by only five analysts, APKT has upgrade potential. Although those who hold the stock on the April 10th expiration of its share lockup will be hurting, Cramer assures investors that they have a few months to watch the stock rise and says ACME is "too cool not to handle, and it is far from being too hot."

Desperate Hedgies: Apple (NASDAQ: AAPL - News), Google (NASDAQ: GOOG - News), Goldman Sachs (NYSE: GS - News), Research In Motion (NASDAQ: RIMM - News), AIG (NYSE: AIG - News), Devon Energy (NYSE: DVN - News), Johnson & Johnson (NYSE: JNJ - News) and Halliburton (NYSE: HAL - News)
Hedge fund managers whose funds have not been doing well in the past year are frantically selling stocks such as APPL, GOOG and GS which are "symbolic of the market" to make it seem as if the performance of their funds is related to the health of the Dow. Instead of worrying, Cramer suggests investors use this "short-term, rumor-down market" to pick up some good quality stocks such as RIMM, AIG, DVN, JNJ and HAL at low prices; "After buying them on the cheap next week, take them in 2007 and enjoy it," he said.
CEO Interview: Bruce Williamson Dynegy (NYSE: DYN - News)
Bruce Williamson said that his company's deal with LS Power will increase assets under management by 70% and will add more cash flow. When asked how the deal will affect DYN's exposure to natural gas, Williamson replied, "With LS Power, it is going to to drop our exposure of a dollar move of natural gas down from 10% of EBITDA to a 4% move in EBITDA... It stabilizes the platform." Cramer applauded Williamson and called him a "winner."

Labels: AAPL, ABG, AIG, APKT, DIVX, DVN, DYN, GOOG, GS, HAL, INWK,