Jim Cramer's Mad Money Review

Exxon (XOM), Conco-Phillips (COP), Schlumberger (SLB), Ultra Petroleum (UPL), Apache (APA), Anadarko (APC), XTO Energy (XTO), Arch Coal (ACI), Peabody Energy (BTU), First Solar (FSLR), Applied Materials (AMAT), MEMC Electronics (WFR), Mosaic (MOS), Deere (DE), CSX (CSX), Chicago Bridge and Iron (CBI), Jacobs Engineering (JEC), Shaw Group (SGR)
Contrary to popular belief, retail did not cause the rally in the Dow and the Nasdaq, but the culprit was oil, which is the umbrella that makes everything work. Not only did oil stocks like XOM, COP and SLB do well, but Cramer says oil will fuel other stocks the energy sector such as UPL, APA, XTO, ACI and BTU, as well as alternative energy plays FSLR (which reported a better-than-expected quarter and historically fabulous upside guidance), AMAT and WFR. Cramer considers ag stocks as members of the energy sector, given the development of ethanol, and would look at MOS, DE. He added rail such as CSX, and infrastructure, CBI, JEC and SGR will also rise with the oil umbrella.
Conviction Stock: FMC Corp (FMC)
A rally one day may spell a down day the next, and it is hard to know what a stock is really worth in this mad market, said Cramer. He was looking for a conviction stock which could give a little bit of certainty about what it was worth, and came up with FMC, a soda ash company in an underexposed sector which is currently enjoying a silent bull market. Soda ash is used to make glass, brick, water softener and most importantly, agricultural chemicals. Cramer says he feels certain that FMC will reach $70, a 30% upside.

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Labels: ACI, AMAT, APA, APC, BTU, CBI, COP, CSX, DE, FSLR, JEC, Jim Cramer, Mad Money, MOS, SGR, SLB, UPL, WFR, XOM, XTO

Looking at Mattel (MAT), Hasbro (HAS) and Jakks Pacific (JAKK), Cramer said, "This group is dirt cheap." Cramer pointed out that Hasbro is buying back a lot of stock, and said that Jakks is the cheapest on a momentum basis.
Referring to the headlines made over lead paint found in China-made Mattel toys, Cramer jokingly lauded Hasbro's business model. "What a great business. You gotta buy them -- their toys didn't kill anybody!"
For the energy market, Cramer recommended natural gas. "This is so the fuel of the future." He dismissed industry observers' claims that the fuel is unreliable, concluding, "This is a great play when oil gets to $100." He recommended XTO Energy (XTO), Apache (APA), Devon (DVN), and Anadarko (APC) as plays on the sector.
Cramer reiterated his recommendation of Cleveland Cliffs (CLF), reminding viewers, "I started with you at $77. I am still on the case, because it's an independent ... company that can't stay independent."
Of the agriculture boom, Cramer said he would sell the stocks after their upcoming trading move up. "They're too expensive," he said. He recommended viewers listen to Agco's (AG) recent conference call.
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Labels: AG, APA, APC, CLF, DVN, HAS, JAKK, Jim Cramer, MAT, Stop Trading, XTO

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

Abbott Labs (ABT): Cramer likes this stock because it has great drugs and diagnostics. He also recommended Baxter (BAX), Bard (BCR), and Becton Dickinson (BDX).
Infinera (INFN): Cramer doesn't want to be in this stock because he doesn't like the optical sector.
Southern Copper (PCU): Cramer is bullish on this stock, but he thinks Freeport McMoran (FCX) is better since it's cheap and he thinks it will be taken over soon.
Nordstroms (JWN): Cramer thinks this stock should go up to $36, so he would buy the stock here.
E*Trade (ETFC): Cramer thinks you will get hurt if you try to invest in this stock. He is bearish.
Anthracite Capital (AHR): This is a residential REIT, so Cramer is bearish. He recommended the caller buy Annaly Capital (NLY) instead.
Anadarko Petroleum (APC): Cramer thinks this stock is terrific, along with Apache (APA), Devon (DVN), and XTO (XTO).
Trane (TT): Cramer said he has been looking at this stock and was actually going to recommend it later tonight, but he has second thoughts about it because of its residential construction exposure. He still thinks it is a well run company.
Northern Trust (NTRS): Cramer thinks this and State Street (STT) are the best run financial institutions in the country, so he wants to recommend both of them.

Labels: ABT, AHR, APA, APC, BAX, DVN, ETFC, FCX, INFN, Jim Cramer, JWN, Lightning Round, Mad Money, NLY, PCU, STT, TT NTRS, XTO

On Monday's show, Cramer started with his reasons that the market has not hit a bottom yet. He does not think that the Fed will continue to cut rates, and that mortgages and weak consumers will hurt stocks. Cramer thinks this is a time to preserve capital, not go on the offensive in this market.
Cramer then went to the phone lines. The first caller asked whether options expiration will cause the market to fall further, and Cramer said that he thinks tomorrow is the time to pick up some of the good stocks that have been hit the hardest over the past few days. Second caller asked Cramer how a weak dollar helps the economy, and what companies are in the best position to take advantage of it? Cramer said that he thinks the dollar is about to bottom, so he doesn't want anyone to try and profit off of a weak dollar now. The next caller asked if now is the time to buy a stock like Sandridge (SD), and Cramer said that he wants you to buy high quality oil stocks that pay high dividends before looking at a stock like that one.
Cramer then gave his pick for a stock that could give a cautious portfolio a boost when the market turns around and that stock was Apache (APA). Cramer has been pushing this stock since July, and he is still behind it because it can maintain its earning multiple. The CEO of the company was on the show to talk about the company's plans for the future, and his opinion on the price of oil.
Cramer came back fromt he lightning round and reviewed a duel between two analysts over Wyeth (WYE). One analyst upgraded the stock, and another analyst downgraded it at the same time. Cramer agrees with the analyst who upgraded the stock since he is bullish at this time. Cramer likes WYE because it is a defensive stock, people will want to own it if a recession hits, and they are buying back stock.
Mad Mail: The first email asked about E*Trade (ETFC), and Cramer said he wants people to stay away from it. The next email asked about Foster Wheeler (FWLT), and Cramer said that although it is a great company, the stock is losing momentum in this market. The next email asked about Cramer's Dow prediction, and he said that his prediction was based on the Fed cutting rates further, which they seem unwilling to do. The next email asked about NRG's (NRG) storage of spent fuel rods, and Cramer said that he should have asked the CEO that question when he was on the show. The last emailer asked about ways to profit from the reduction of the crack spread as oil prices decline, and Cramer said he thinks the best play on that idea is Marathon (MRO).
Sudden Death. In sudden death Cramer was bullish on Sirius (SIRI), Nordstrom (JWN), and Aecom (ACM). Cramer was bearish on Acadia Pharmaceuticals (ACAD).

Labels: APA, ETFC, FWLT, Jim Cramer, Mad Money, Mad MOney Recap, NRG, WYE

Chesapeake Energy (NYSE: CHK - News): 'The whole complex of natural gas is so ridiculously too low. Just because we had a couple of months stored... CHK is a great driller. It's got great assets. I believe that natural gas will come back in vogue.'Wynn Resorts (NasdaqGS: WYNN - News): 'Look, Macau gambling is for real! I've been behind the Macau gambling... I still like Wynn.'Las Vegas Sands (NYSE: LVS - News)Apache (NYSE: APA - News): 'I like APA. It has oil, it has gas, and it's right. It's beaten down, and I would pull the trigger today! 'Schlumberger (NYSE: SLB - News): 'Do you know that Schlumberger is selling at 17x next year's earnings?... This is just a very inexpensive stock... how could I not recommend that unbelievable best-of-breed?...'Helix Energy (NYSE: HLX - News): ' ... as much as I like the HLX... If SLB's selling at 17x earnings, I mean, how could I not recommend that unbelievable best-of-breed?... 'Shaw Group (NYSE: SGR - News): ' ... don't hold me to it, but I think that's going to be good. And SGR is on a remarkable run!... Now, look, understand... We had that horrible bridge tragedy, but all of us know the infrastructure is woefully needing repair. It's SGR. The infrastructure bull market is probably the strongest market on earth!'Fluor (NYSE: FLR - News)McDermott (NYSE: MDR - News)DaimlerChrysler (NYSE: DCX - News)Boeing (NYSE: BA - News): ' ... but I am reiterating absolutely that Boeing is a buy, and the orders will trickle down. It's just that we don't have them right now.'Cisco (NasdaqGS: CSCO - News): ' ... reported a blowout quarter tonight - as we've been predicting endlessly, and finally it happened... Remember, he did announce the $5 billion buyback at the end of his last quarter... buy, buy, buy - CSCO, even above $31. 'Level 3 Communications (NasdaqGS: LVLT - News)Garmin (NasdaqGS: GRMN - News): ' ... conference call for GRMN was amazing. The guide up was huge... GRMN's a keeper! Stay with GRMN - buy, buy, buy! 'Crocs (NasdaqGS: CROX - News)Under Armour (NYSE: UA - News)Temple Inland (NYSE: TIN - News): ' ... Temple Inland remains my favorite, courtesy of Carl Icaan and his restructuring. '
Bearish calls:
Zebra Technologies (NasdaqGS: ZBRA - News): 'I personally think that the bar code business has peaked. It's just not exciting to me. I don't want to be in it. Don't buy, don't buy.'Haynes International (NasdaqGM: HAYN - News): '... didn't report a good quarter..., is the aerospace bull market caput?... I think that there's a big lag between when the (Boeing) Dreamliner gets built, and all of these stocks blow away their numbers... Now it's still painful ... I think this group is going to be on hold, and the better side is the defense stocks right now..'.Starbucks (NasdaqGS: SBUX - News): ' ... I want good, solid growth... and consistent growth... and SBUX can no longer give that to me. Don't buy, don't buy. At $23, I'll pull the trigger.'Juniper Networks (NasdaqGS: JNPR - News): 'I believe that CSCO is better than JNPR. I am telling you - sell, sell, sell - JNPR.'Weyerhauser (NYSE: WY - News): 'They can't deliver.'
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Labels: APA, BA, CHK, CROX, CSCO, DCX, FLR, GRMN, HLX, Jim Cramer, Lightning Round, LVLT, LVS, MDR, SBUX, SGR, SLB, TIN, UA, WYNN

Avoid Private Equity: Blackstone (NYSE: BX - News)
Cramer would not buy private equity firms and suggests staying away from the Apollo and KKR IPOs. A former hedge fund manager, Cramer says he knows a thing or two about private equity. He believes the stocks are too expensive and investors would be catching these names at the end of the trend. In addition, if a Democrat wins the White House, he or she will propose taxing "the heck out" of private equity and squeezing the firms dry. Cramer added there are "too many people with too much money trying to get a piece of the action." Finally, companies are taken public at the end of a cycle, and "coming public means they're selling, not buying," Cramer said.
That 80s Show: Apache (NYSE: APA - News)
This week, Cramer has been discussing his theory that once the $80 threshold is broken, a stock becomes "annointed," rises to $100 and eventually reaches $120. He added once a stock hits $100 it will only go down again if it splits. Apache is a name Cramer believes will provide support for this theory because "people will keep buying it." Oil is one of the sectors driving the market, and Apache's advantage over other oil companies is its ability to thrive in challenging areas because of its low production costs and to improve on cheap products it purchases from its rivals. Cramer adds APA is trading at only 1o times earnings; "This stock is mispriced!" Most of APA's oil reserves are in the U.S., and the company has raised its product guidance. "I would buy APA before it gets away from you," Cramer said.
Overcoming Soros: Bon-Ton (NasdaqGS: BONT - News), CVS (NYSE: CVS - News), Rite Aid (NYSE: RAD - News), Qualcomm (NasdaqGS: QCOM - News), Texas Instruments (NYSE: TXN - News), Gen-Probe (NasdaqGS: GPRO - News)
Cramer says he doesn't want people to invest like George Soros, "I want to be better than Soros!" For instance, Soros owns BONT which Cramer thinks is alright for the long term, but "short term it really stinks." Although Cramer likes Soros pick CVS after its Caremark acquisition, he prefers RAD. He would also swap Soros' QCOM for his choice, TXN. However, Cramer agrees with Soros about buying GPRO because the stock is "instant growth" with 40% market share for blood screening tests and 58% market share for chlamydia and gonorrhea tests. The company is also making deals with industry leaders such as General Electric, 3M and Millipore.
Mad Mail: Manitowoc (NYSE: MTW - News), Costco (NasdaqGS: COST - News), Casey's (NasdaqGS: CASY - News), Rite Aid (NYSE: RAD - News), Cemex (NYSE: CX - News)
Cramer agreed with a viewer that MTW fits his $80-$100-$120 theory. Since COST is a gas station as well as a retailer, he considers it a viable alternative to CASY. Cramer added he isn't concerned about RAD after the Medicaid ruling, but would let the "good times roll." Being locked in by the housing cycle is not a bad thing for those who hold CX, he said, because the company is "growing like a weed."
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Labels: APA, BONT, BX, CASY, COST, CVS, CX, GPRO, Jim Cramer, Mad Money, MTW, QCOM, RAD, TXN