Jim Cramer's Mad Money Review

On news that EnCana (ECA) would be splitting into a natural gas firm and an integrated oil company, Cramer said several other companies might make a similar move. He pointed to Anadarko (APC) and ExxonMobil (XOM).
"My urging is you go over these companies," Cramer said. "They all have oil, and they've all got gas businesses." He advised against chasing the stocks higher, but said that inventory numbers could send these stocks down, creating a buying opportunity.
Cramer also discussed Toll Brothers (TOL) CEO Bob Toll, who will be appearing on "Mad Money" tonight. Cramer praised Toll for always being "straight with me." He said the homebuilding CEO is "not bullish at all." Cramer said he would ask Toll why he is talking about buying more land, a move of which Cramer is skeptical.
Published By TheStreet.com

Labels: APC, ECA, Jim Cramer, Mad Money, TOL, XOM

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.

Published By SeekingAlpha

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

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

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.
Published By SeeingAlpha

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

Electronic Arts Inc. led the Standard & Poor's 500 Index higher in midday trading Tuesday after Barron's magazine said the recent launch of three video game consoles is sure to help the video game publisher's sales.
Barron's said the releases of PlayStation 3, Xbox 360 and Wii are good for Electronic Arts because the people who bought the consoles will buy new games.
Shares of Redwood City, Calif.-based Electronic Arts rose $2.06, or 4.1 percent, to $52.08 in midday trading on the Nasdaq.
The S&P 500 index was up 2.12, to 1,457.66 in midday trading.
Shares of Temple Inland Inc. rose after a Banc of America Securities analyst upgraded the stock, saying investors are revisiting how to value the Austin, Texas-based packaging maker.
Temple Inland gained $1.68, or 3.2 percent, to $54.84 on the New York Stock Exchange. The stock hit as high as $55.45, breezing past the previous 52-week high of $53.18.
Also among leaders was Polo Ralph Lauren Corp., a New York-based clothing marketer. Polo Ralph Lauren partnered with Kohl's Department Stores to market the Chaps Home collection a few days after announcing a deal with J.C. Penney Co. to create a new brand called American Living. Polo Ralph Lauren added $2.45, or 2.8 percent, to $88.24, after earlier hitting a new all-time high of $88.45.
Among laggards, Anadarko Petroleum Corp.'s stock fell after a Prudential Equity Group analyst lowered his price target on the company. He said the stock isn't cheap enough to compensate for the energy company's risk.
Anadarko's stock fell $1.16, or 2.8 percent, to $40.17 on the Big Board.
Shares of Baker Hughes Inc. continued their plunge for the third session after the Houston-based oil services provider reported disappointing fourth-quarter earnings.
The stock fell $1.40, or 2.2 percent, to $63.65.
Also among laggards was Nucor Corp., a Charlotte, N.C.-based steel producer. An industry report showed inventories aren't clearing as fast as investors hoped.
Nucor's stock fell 83 cents to $63.89 on the NYSE.
Published by AP

Labels: APC, BHI, ERTS, Hot Stocks, JCP, NUE, RL, TIN

Wall Street eked out a modest advance Tuesday after investors found little motivation in remarks by Federal Reserve officials and also shrugged off a warning from chip maker National Semiconductor Inc.
Major indexes squeaked by with gains after spending most of the session extending Monday's losses. Investors have been left looking for direction after the Fed held interest rates steady last week, and as corporate earnings season winds down.
Fed Chairman Ben Bernanke did not address interest rates when he spoke before the Omaha Chamber of Commerce. Similarly, speeches by two other central bankers and Treasury Secretary Henry Paulson also had little news to sway investors.
National Semi warned that sales will fall steeper than expected; the news initially cast a shadow across the market, but by the close of trading, even the tech-dominated Nasdaq composite index had recovered.
"I get the sense investors are waiting to see what the market is going to do next, and aren't entirely convinced that a slight pullback is going to manifest itself," said Mike Malone, trading analyst at Cowen & Co. "There really wasn't any expectation that something would come from Bernanke. But the fact its over leaves investors looking around for what's next."
According to preliminary calculations, the Dow rose 4.57, or 0.04 percent, to 12,666.31.
Broader stock indicators finished narrowly higher. The Standard & Poor's 500 index added 1.01, or 0.07 percent, to 1,448.00, and the Nasdaq rose 0.89, or 0.04 percent, to 2,471.49.
Stocks got some support from a decline in bond yields as fixed-income investors place bets on where interest rates are headed. The bond market had hoped to glean more from speeches by Bernanke and Treasury Secretary Henry Paulson.
The yield on the benchmark 10-year Treasury note fell to 4.77 percent from 4.81 percent late Monday. The dollar was lower against other major currencies, while gold prices advanced.
Oil prices continued to climb on concerns that a blast of arctic weather in the Midwest and Northeast might linger, and drive up demand for heating fuel. A barrel of light sweet crude rose 14 cents to $58.88 on the New York Mercantile Exchange.
A jump in demand could lead to higher energy costs, but also greater profits for energy producers. However, any benefit to big oil companies was offset by disappointing results from BP PLC.
Britain's biggest refiner fell 54 cents to $63.25 after reporting fourth-quarter profit slipped 22 percent, and slashed its growth targets for this year. Anadarko Petroleum Corp. shares fell 48 cents to $42.47 after it said fourth-quarter profit doubled due to a one-time gain on the sale of a Canadian unit.
Exxon Mobil Corp., a component of the Dow Jones industrials, fell 21 cents to $75.46, while Chevron Corp. shed 41 cents to $73.37.
Matt Kelmon, portfolio manager of the Kelmoore Strategy Funds, said investors will be looking at further fluctuations in the energy sector as one way the market might pick a direction. He also said there will be continued scrutiny over corporate earnings, although many major companies have already reported.
"The market is not expensive, it's not dirt cheap, and the catalyst over the past few weeks has been earnings," he said. "Everything is really on hold until the market finds something else to talk about, but there's still no huge sign of an imminent pullback."
Technology stocks were among the market's biggest decliners, led by the semiconductor sector. National Semi fell 64 cents, or 2.8 percent, to $22.68 after it predicted lower-than-expected sales in the third quarter because of lower shipments to the Asia Pacific region.
Rival Advanced Micro Devices Inc. fell 28 cents to $15.32, while Texas Instruments Inc. shed 37 cents to $31.22. Intel Corp., the worlds largest chip maker for personal computers, rose 3 cents to $21.31.
In other corporate news, Avon Products Inc. rose $3.38, or 9.8 percent, to $38 after the maker of beauty products said its fourth-quarter profit edged up from a year ago as the company struggled with restructuring costs.
McClatchy Co., the nation's second-largest newspaper publisher, rose 53 cents to $39.29 after its operating earnings surpassed Wall Street projections.
Las Vegas Sands Corp. fell $3.41, or 3.3 percent to $100.68 after the casino company reported fourth-quarter profit was boosted by an unexpected $30 million gain from its high-rollers table. Advancing issues outnumbered advancers by about 2 to 1 on the New York Stock Exchange, where volume came to 1.47 billion shares.
The Russell 2000 index of smaller companies rose 3.34, or 0.41 percent, to 810.03. The index surpassed 800 for the first time last week, and reached an all-time high of 810.49 in the previous session.
Overseas, Japan's Nikkei stock average closed up 0.36 percent. At the close, Britain's FTSE 100 was up 0.45 percent, Germany's DAX index added 0.02 percent, and France's CAC-40 fell 0.08 percent.
Published by Joe Bel Bruno, AP Business Writer

Labels: APC, AVP, Ben Bernanke, BP, CVX, Hot Stocks, INTC, LVS, MNI, TXN, XOM