Jim Cramer's Mad Money Review

Cleveland Cliffs (CLF), BHP Billington (BHP), Freeport-McMoran (FCX), Boeing (BA), Potash (POT), Deere (DE), Schlumberger (SLB), XTO Energy (XTO)
Tuesday saw the return of Cramer's five long-term bull markets: aerospace, minerals and mining, oil and oil service, agriculture and infrastructure, and those who believe that recovery is coming ruled the day. Aerospace was lifted by BA's news that, after several delays, the delivery of the long-awaited 787 Dreamliner may come on time. News of coal and copper shortages was good for BHP Billington and Freeport-McMoran. Cramer also recommended Cleveland Cliffs. Potash rallied after a bullish interview with CEO Bill Doyle. Cramer also mentioned his favorite ag stocks, Deere, and suggested investors buy more rather than worry about the sector on the next down day. Oil is well after Bear Stearns' upgrade of SLB and XTO's strong earnings. Infrastructure got a lift from Buffett's bid to rescue bond insurers, but Cramer warned that all of these gains could disappear, given how quickly the market has been moving.
CEO Interview: David Novak, Yum! Brands (YUM)
Cramer said Yum is one of the most pro-shareholder and pro-growth companies he has seen and is impressed by YUM's aggressive moves into China. In 2007, one new store was opened in China every day and three a day were opened in December 2007. Novak said the company's performance reminds him of how McDonalds began its initial expansion in the States. Domestic growth has not been forgotten, said Novak, adding the company will concentrate on desserts, healthier offerings and new beverages.
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Labels: BA, BHP, CLF, DE, FCX, Jim Cramer, Mad Money, POT, SLB, XTO, YUM

"We're in a huge rotation out of late-cycle stocks like Freeport ... and into early cycle stocks like banks," Cramer said. But the copper and gold mining company is "a layup to be bought out by a BHP (BHP) or a Rio Tinto (RTP)."
The short-term outlook for Freeport, however, is far less certain. Cramer urged investors to "forget about it for the next six months, because this cycle is over. ... The momentum guys have to get out of it like they're getting out of ag, like they're getting out of oil. ... Be respectful of the amount of money they run."
Cramer noted that investors are moving out of plays like Freeport and into the banks. "There are bailouts out there. These bailouts can occur. ... The move out to the banks makes a lot of sense."
If the fed funds rate comes down enough, Cramer says, the banks can mount a recovery.
Finally, of Google's (GOOG) recent decline, Cramer only offered, "Buy any retailer you want. I'm not talking about Google."
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Labels: BHP, GOOG, Jim Cramer, RTP, Stop Trading

On Tuesday's show, Cramer began by saying today is a perfect example of why you need to stay in the investing game. He said that Citigroup (C) went from a stock you must stay away from to a stock you must own after Abu Dhabi bought a large stake. It was also announced that they might buy into two more Dow stocks, so Cramer is looking for a way to profit from this trend. Cramer said focus on Halliburton (HAL) because it is trading at a large discount to other oil service stocks. He thinks that it could be worth $53 per share, and that these Arab states will invest in what they know, oil. One issue with the stock is that the company is hated by politicians in the U.S., but Cramer doesn't seem to think that Dubai or Abi Dhabi cares.
Then Cramer went to the phonelines. The first caller asked about opportunities in shale oil stocks, and Cramer recommended that people buy Suncor (SU) immediately. The next caller asked about the proposed takeover of BHP Billiton (BHP). Cramer is bullish on the stock and doesn't think it will be an issue.
Lighting Sector: One stock that Cramer likes is Acuity (AYI). It would be a good buyout target for Philips (PHG), and the stock didn't move up much on the news that Philips plans to buy several lighting companies to go with its buyout of Genlyte (GLYT). Also, this company will grow quickly with retro-fitting of old buildings that need to update their lighting. Another plus for AYI is it's a commerical building play, which is still going strong despite the problems in the residential housing market. Given the same valuation as Genlyte, it would be worth $57 per share.
Cramer came back fromt he lightning round and talked about a battle between two analysts over Starbucks (SBUX). FBR raised the stock to a buy, while CBIC lowered it to a sell on the same day. Cramer wanted to take a closer look at the stock, and after doing his homework, Cramer agreed with CBIC and is bearish on SBUX. He doesn't like the stock because the company has a lot of low priced quality competition, the stock has a contracting multiple, and growth is slowing. He thinks it would have to go well below 16 to be a buy.
The CEO of Aecom (ACM) was on the show, and announced quarterly earnings and guidance for 2008, and the stock dropped over 10% today. He said that the decreasing backlog is due to normal seasonal patterns in orders, and that they expect to continue their growth. He is bullish about the company and the stock. Cramer was disappointed and said that the company will have to show him that it is still on track next quarter before he will buy it again.

Labels: ACM, AYI, BHP, Citigroup Inc., CNBC, GLYT, HAL, Jim Cramer, Jim Cramer's Stop Trading, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, SBUX, SU

Chevron (CVX): Cramer said the recent rally was only a “dead cat bounce” for the financials and would sell stock in that sector and buy oil stocks, such as Chevron and minerals.
Rio Tinto (RTP) and BHP Billiton (BHP), CVRD (RIO), Freeport McMoRan (FCX): Cramer was critical of Citigroup’s downgrade of RTP and BHP. He expressed his bullishness on both stocks and included RIO and FCX which he says is not a falling knife but a stopping knife.
KHD Humboldt (KHD) and AECom (ACM): Cramer notes ACM is down and says it is a buy. He also likes KHD.
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Labels: ACM, BHP, CVX, FCX, Jim Cramer, RIO, RTP, Stop Trading

The Fed's 50 point cut on Tuesday sparked the stock market, and CNBC's "Fast Money" discussed why the bulls are running, and what it means for financial stocks:Najarian: Tuesday's actions all about the financials. Financial Select Sector SPDR, ton of volume in call options.Macke: Can't be short financials now.Adami: continues to like financials; Lehman Brothers(LEH), Goldman Sachs (GS) and Morgan Stanley (MS)All Clear on Wall Street? CNBC's Charlie Gasparino discussed whether brokers are a buy now. Gasparino feels confident about most of the brokers except Bear Stearns (BSC)--lease diversed and tied to credit markets.OIL: Crude oil hit another record touching $81.51 and gold traded to $735, its highest level in 27 years. Author Dennis Gartman: Shocked by feds decision. Thinks stock market will continue to climb.Housing Market: Adami: housing stocks are back for a trade. He likes Hovanian, (HOV), Toll Brothers (TOL) and Pulte Homes (PHM)Finerman: Still likes Home Depot(HD), which she owns for its cheap valuation.Word on the Street: Cummings (CMI) and Caterpillar (CAT) exploded higher on the Fed cut. Najarian: Thinks CAT has much more upside to come.Global: China and Brazil's markets soared on the rate cuts. Tim Seymour, Principal at Red Star Asset Management, joined the crew to discuss the emerging markets. Seymour likes gold and Brazil ETF (EWZ)Face 2 Face:Viewer writes: "What happened to the recommendation to get out of gold if the Fed dropped its rates?" Adami reiterated his bearish stance on gold.Viewer writes: "Should I sell my October $195 call options on Goldman Sachs (GS) now or is there still more upside?" Najarian- feels strong about GS, but you should take half the position off before earnings.Viewer writes: "What is your outlook for Tiffany's (TIF) as the holiday season approaches?" Macke is positive about Tiffany's and Blue Nile (NILE)Pops & Drops:Pops: Macke-Caterpillar (CAT), Finerman-Target (TGT), Adami-Alcoa (AA)-could be bought out by Najarian's pick-Billiton (BHP), and Finerman-Wendy's (WEN)Drops: Najarian-E*Trade (ETFC), Macke-Hovnanian(DOG), Adami-Boeing(BA)Final Trade:Macke- Macy's (M)Finerman- Altria (MO)Adami- Nucor (NUE)Najarian- Companhia Vale do Rio Doce (RIO)

Labels: BHP, BSC, CAT, CMI, CNBC, ETFC, EWZ, Fast Money, GS, HD, HOV, LEH, MS, NILE, PHM, SPDR, TGT, TIF, TOL, WEN

HMS Holdings (NasdaqGS: HMSY - News): 'We've always liked this. This is one of those companies ... that do cost control for medical.'MedcoHealth Solutions (NYSE: MHS - News)Cardinal Health (NYSE: CAH - News)AT&T (NYSE: T - News)EMC (NYSE: EMC - News): 'I think that EMC is a better way to play VMware right now.'Intuitive Surgical (NasdaqGS: ISRG - News): Freeport-McMoran (NYSE: FCX - News): 'This is a gold company and a copper company in a deflationary spiral mandated by the Federal Reserve. ... Am I backing away from it? No. ... I will say bull to Freeport.'First Solar (NasdaqGM: FSLR - News)Exelon (NYSE: EXC - News): 'Well-run ... can do well. ... I say two thumbs up to Excelon/'Hawaiian Electric (NYSE: HE - News): 'I like the utilities here. This one's got a very high yield. It's in a growth market. ... I stick with Hawaiian Electric.'
Bearish calls:
J.C. Penney (NYSE: JCP - News): 'I have been doing some work on J.C. Penney. 52-week low ... retail very hard to own ... I like to wait and see the quarter.'Posco (NYSE: PKX - News): 'It's not a House of Pain anymore. It's literally a Nation of Pain ... Don'tBuy, because it can go lower.'One National Banc (NYSE: ONB - News): 'Every bank is for sale here. ... I cannot recommend a bank on this show. I can't because I like other sectors so much more. Don'tBuy Don'tBuy Don'tBuy.'BHP Billiton (NYSE: BHP - News): ' I am not going to walk away from these, but you have to understand, these stocks are in the crosshairs of the Fed, and they are going to go down.'Fuel-Tech (NasdaqGM: FTEK - News): ' ... is so speculative in this environment.'Downey Financial (NYSE: DSL - News): 'Downey is a stock that will fly up 20 points when the Fed decides to blink. ... I think Downey's book value is pretty clean. I am surprised it got down to $47. I can't back away here.'VMware (NYSE: VMW - News): '$60 is my target, and we're already up another $7 today.'Accuray (NasdaqGM: ARAY - News): 'Accuray, frankly, is not a stock that I can pull the trigger on.'Akamai (NasdaqGS: AKAM - News): 'We know that Akamai's the wrong thing.'
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Labels: ARAY, BHP, CAH, DSL, EMC, EXC, FCX, FSLR, FTEK, HE, HMSY, ISRG, JCP, Jim Cramer, Lightning Round, MHS, ONB, PKX, T, VMW

Corning (NYSE: GLW - News): ' ... you should be buying Corning (NYSE: GLW - News), which was unceremoniously dumped after a good quarter.'Lundin Mining (AMEX: LMC - News): 'All mineral stocks are getting hammered here... every single one of them ... There was just a huge amount of takeovers in this industry. Now they're dying down... You accumulate LMC... We like the combination copper, the lead... We like their product portfolio ... We have been right to buy. It will be no different this time.'NYSE Euronext (NYSE: NYX - News): 'I have been wrong so far... I believe fundamentally in the story. I can't change my view, because the fundamentals have borne me out... I am sorry, and I too am in the house of pain. I still believe though.'Prudential Financial (NYSE: PRU - News): 'They knocked it down $3 bucks... There were some concentrated raids on all the insurers ... they've got a gigantic portfolio... PRU is a great company. And it will not founder on subprime... one of the few financials I want to own!'Honeywell (NYSE: HON - News): 'There's a guy who runs that company... his name is Dave Cote. That man inspires a tremendous amount of confidence ... He's a transforming manager. He's generating a huge amount of cash... His order book is full. And I want to buy that stock right here.'Companhia Vale do Rio Doce (NYSE: RIO - News): 'This is a company that has a hammerlock on all the nickel in the world! I would not give up on these guys... As a matter of fact, any weakness ... Stocks that are up huge are getting register rung. It's the summer. That's what happens every year.'BHP Billiton (NYSE: BHP - News)Apple (NasdaqGS: AAPL - News): 'I think the raids are over. I think it's ready to resume its climb. I am not backing away from AAPL at $135. Now, when it got back to $145, please, let's do some schnitzelling (i.e., sell some).'Reliance Steel (NYSE: RS - News): 'I have been recommending Reliance Steel, which had a better quarter (than Nucor.'Chordiant Software (NasdaqGM: CHRD - News): 'They just reported a great quarter yesterday. It was great ... Let's ride that one a little bit more.'
Bearish calls:
Syntax-Brillian (NasdaqGM: BRLC - News): 'No, no! Don't buy, don't buy. Keep looking ... you should be buying Corning.'Kroger (NYSE: KR - News): 'Safeway, Kroger... They've not been recording good quarters. They've been hurt by food inflation... If it lifts, sell, sell, sell... I would trim it back.'Nucor (NYSE: NUE - News): 'I cannot get behind NUE. There are too many flies in the steel story now, with the potential slowdown in commercial real estate, if we don't get a Fed rate cut. 'Great Lakes Dredge & Dock (NasdaqGM: GLDD - News): ' ... that's one I can't go back to. That was a trade.'
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Labels: AAPL, BHP, CHRD, GLDD, GLW, HON, Jim Cramer, KR, Lightning Round, LMC, NUE, NYX, PRU, RIO, RS

That 80s Show: ConocoPhillips (NYSE: COP - News), Energizer Holdings (NYSE: ENR - News)
Continuing the series on his theory that stocks which reach $80 rise to $100 and then to $120 in a bull market, ConcoPhillips, Cramer's favorite integrated oil, was up to $84 on Tuesday, close to its 52-week high on the company's $15 billion buyback authorization. Although COP has jumped, Cramer says it is the kind of stock to buy high and sell higher. COP is an "anointed stock" which is down 3 points since the selloff, and will experience "smooth sailing" to $120. Energizer, just shy of $100 is headed to $120 because its iPod batteries will provide 46 more hours of playtime between charges, opined Cramer. In October, the company will introduce a charger that will revitalize "dead" iPod batteries. In addition, ENR is among the top 4 or 5 in share buybacks, and Cramer sees an ENR upgrade on the horizon.
Four Horsemen of Mining: CVRD (NYSE: RIO - News), BHP Billiton (NYSE: BHP - News), Rio Tinto (NYSE: RTP - News), Teck Cominco Ltd. (NYSE: TCK - News)
Cramer added TCK to his three wise men of metals: RIO, BHP and RTP to form the four horsemen of mining. In spite of TCK's smaller size, Cramer thinks it will perform as well as the others. Although its specialty is zinc which is not so hot, Cramer notes inventories of this essential metal which is used to make steel and batteries are dwindling. TCK is diversifying away from zinc and has made a bid for Auy Resources, an acquisition which will dramatically increase TCK's exposure to copper and to China, which consumes 30% of the tawny metal. Cramer adds, with the addition of Auy, TCK will be a great way to play China without the risk of owning a Chinese stock.
CEO Interview: Christopher Clement of Savient Pharmaceuticals (NasdaqGM: SVNT - News)
Christopher Clement discussed gout drug Puricase which in in Phase III of its trials before going to the FDA for approval. The drug is expected to launch in 2009, and Cramer calls Puricase "gigantic ... I think you stick with SVNT, and buy it down on any weakness."
Tears for Sears (NasdaqGS: SHLD - News)
Cramer remarked he was disappointed about SHLD's 17 point decline and added the company has to start selling real estate. However, he would hold it for at least another 18 months.

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Labels: BHP, COP, ENR, Jim Cramer, Mad Money, RIO, RTP, SHLD, SVNT, TCK

Aruba Networks (NasdaqGM: ARUN - News): 'Blowout quarter last week ... How about we wait for a pullback, before we back up the truck... If it goes below $20, you've got to be willing to pull the trigger.'Merrill Lynch (NYSE: MER - News): ' MER is not going to have any problem going over $100.00 ... Because MER is incredibly well-run. The sub-prime problems are in the past ... That stock needs to go higher right now. Buy, buy, buy!'Level 3 Communications (NasdaqGS: LVLT - News): 'I think this stock is going to finish the year - yes, and if I may be so bold... - at between $7 and $8. So any one of these declines is just another opportunity to load the boat up with LVLT.'Wal-Mart (NYSE: WMT - News): 'I got behind WMT in the mid-$40s, and I am not backing away now at $50. It's got much more upside.'Alcoa (NYSE: AA - News): ' I think Alcoa and Alcan are going to merge... You know I think that AA is not going to be public in a year if they don't get that deal...'Alcan (NYSE: AL - News)Dominion Resources (NYSE: D - News): 'I think that one may be a better diversified utility company than yours (Targa Resources). So let's make that switch.'Research In Motion (NasdaqGS: RIMM - News): 'That has the better fundamentals (than Palm.)'Freeport-McMoRan (NYSE: FCX - News)Qualcomm (NasdaqGS: QCOM - News): 'If you want to be in a semiconductor play that has to do with cell, I will send you to QualComm.'BHP Billiton (NYSE: BHP - News) CVRD (NYSE: RIO - News): ' ... among the cheapest mineral stocks ... It's just too darn cheap, too well-run and, ever since they were able to buy the largest nickel company ... this thing wreaks of monopoly!'Barnes & Noble (NYSE: BKS - News): 'I actually like very much the Barnes & Noble quarter, and they're buying back a lot of stock.'
Bearish calls:
Target (NYSE: TGT - News): ' ... sell, sell, sell... let's take a little off the table, and go into Wal-Mart.Aluminum Corp. of China (NYSE: ACH - News) 'The Chinese market is overheated. I liked this stock initially as a dividend play. Now that it only yields 2%.'Targa Resources (NasdaqGM: NGLS - News)Palm (NasdaqGS: PALM - News): 'You got lucky. I need you out of PALM. I would rather see you in Research In Motion ... You just lucky with that Elevation bid... I want to head to the hills, PALM. Sell, sell, sell!'Scholastic (NasdaqGS: SCHL - News): 'Oh, way too inconsistent. It's really hurt a lot of people.'Tesoro (NYSE: TSO - News): 'I want you to sell that. That move has peaked. Those margins cannot be sustained ... 'Valero Energy (NYSE: VLO - News): 'I want TSO and VLO sold.'RF Micro Devices (NasdaqGS: RFMD - News): 'I am not going to bless RFMD. Not on this show. No way ... I understand the speculative desire for RFMD, but I am not going to tell you to stay with it.'
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Labels: AA, ACH, AL, ARUN, BHP, BKS, D, FCX, Jim Cramer, Lightning Round, LVLT, MER, PALM, QCOM, RIMM, RIO, VLO, WMT

Bullish Calls:Ameriprise (NYSE: AMP - News): 'I continue to try to buy ... It keeps getting away from me. But it's still dirt cheap. I think this is a real winner.'AeroVironment (NasdaqGM: AVAV - News): 'I thought unmanned aerospace was going to be the next thing. ... I would actually pull the trigger right here. I would buy AVAP.'Portfolio Recovery Associates (NasdaqGS: PRAA - News): ' I remain bullish on Portfolio Recovery because anything that preys upon that weakened American consumer who needs help is a triple buy.'Spirit Aerosystems (NYSE: SPR - News): 'I think it's run too much. Can we put it in the Don'tBuy camp?'BE Aerospace (NasdaqGS: BEAV - News): 'the answer is bullish!'AAR (NYSE: AIR - News)Precision Castparts (NYSE: PCP - News)Barnes Group (NYSE: B - News): 'It's got railroads, it's got precision instruments; in other words, it's got bulls running with it. I like letter B.'Rio Tinto (NYSE: RTP - News)Companhia Vale Do Rio Doce (NYSE: RIO - News): [RTP, RIO BHP and FCX are the] ' four horsemen of another era, and you need to stay long these until I tell you otherwise.'BHP Billiton (NYSE: BHP - News)Freeport McMoRan (NYSE: FCX - News)Savient Pharmaceuticals (NasdaqGM: SVNT - News): 'You know this is one of my favorite stocks. Why would you leave it now?'Amazon.com (NasdaqGS: AMZN - News): 'I think Amazon's an up stock. ... I would continue to buy it.'Crocs (NasdaqGS: CROX - News): 'We're gonna get out of Crocs when we have four analysts recommending it. Right now we only have two. ... I'm staying long Crocs.'Bearish calls:Staples (NasdaqGS: SPLS - News): ' ... I have put people in this thing for a year now, and it hasn't moved. Sometimes you have to admit you're wrong and move on.'
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Labels: AIR, AMP, AMZN, AVAV, B, BEAV, BHP, CROX, FCX, Jim Cramer, Lightning Round, Mad Money, PCP, PRAA, RIO, RTP, SPLS, SPR

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
United Parcel Service July 75 Calls (NYSE:UPS - News). UPS' PowerRating is 4.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Sotheby's June 50 Puts (NYSE:BID - News). BID's PowerRating is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Inc. July 115 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Dendreon May 17.5 Puts (NasdaqGM:DNDN - News). DNDN's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Alcoa (NYSE:AA - News). AA's PowerRating is 5.
Cisco Systems (NasdaqGS:CSCO - News). CSCO's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
BHP Billiton Ltd. (NYSE:BHP - News). BHP's PowerRating is 4.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
None today
PowerRatings are courtesy of TradingMarkets.com

Labels: AA, AAPL, BHP, bid, CSCO, DNDN, Hot Stock Options, UPS

Alcoa (NYSE: AA - News), Alcan (NYSE: AL - News), BHP Billiton (NYSE: BHP - News), CVRD Rio (NYSE: RIO - News)
Cramer thinks AA bid for AL because it wanted to prevent rivals BHP and RIO from making an initial move. He comments AA has been desperately trying to raise its stock price by every means possible, including selling divisions, but it is still at $35 in spite of a great quarter. He added, "I think Alcan would put itself up for sale and have a real bidding auction rather than do a deal with Alcoa." If a deal does go through, Cramer says it is "worth watching" because it could spark an antitrust controversy.
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Labels: AA, AL, BHP, Hot Stocks, Jim Cramer, RIO, Wall Street Confidential

CVRD (NYSE: RIO - News), BHP (NYSE: BHP - News), Freeport McMoran (NYSE: FCX - News), Phelps Dodge (NYSE: PD - News): Cramer urges investors who "have walked away from the table" because of subprime lending to take a look at RIO and BHP, because most of the demand for copper and nickel is coming from China, and the "America-centric" view will lose investors money. He comments BHP has "really found a floor here at $42" and is"very, very interesting." Cramer adds "with copper right here, the FCX/PD combination would go up." RIO will benefit from the very strong nickle demand in China.
Global SantaFe (NYSE: GSF - News),Transocean (NYSE: RIG - News) and Hercules (NasdaqGS: HERO): Although an analyst predicted an 80% jump for HERO, Cramer was positive yet lukewarm on the company. "The day rates for shallow are going to go down .... the day rates for deep are all going to go up." For this reason, Cramer said he likes RIG and GSF, both of which have "gigantic buybacks" and the "motivation to make a deal."

Labels: BHP, FCX, GSF, Jim Cramer, Jim Cramer's Stop Trading, PD, RIG, RIO

Thornburg Mortgage (NYSE: TMA - News): Cramer comments some of the so-called "dirty dozen" which have been targeted by the shorts "didn't fall off the turnip truck." He points to TMA's CEO, Garrett Thornburg, who says the company is demanding more detailed documentation on the so-called Alt-A loans, which often don't receive enough scrutiny and which the bears say are often vulnerable to defaults and delinquencies. "Holy Cow!" Cramer exclaimed, "This guy is actually a legitimate lender!" He also found hope in strong insider buying.
Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), CVRD (NYSE: RIO - News), BHP Billington (NYSE: BHP - News): Cramer noted DOW rose 6% on rumors of an acquisition, and he would buy it at $43. Cramer predicts AA "won't be independent at this time next year, says BHP "really ramping" and rising nickel is good news for RIO; "That stock is just going nuts!"

Labels: AA, BHP, DOW, Jim Cramer, Jim Cramer's Stop Trading, RIO, TMA

Getting Defensive: Kroger (NYSE: KR - News), Safeway (NYSE: SWY - News), Supervalu (NYSE: SVU - News), Colgate-Palmolive (NYSE: CL - News), Kimberly-Clark (NYSE: KMB - News)
"Subprime is the only problem," Cramer reassured investors after the "absolutely brutal" downturn on Tuesday which affected the whole market. While mortgage lenders should be suffering from subprime lending woes for awhile, Cramer remarks, "It is wrong for the Street to be so indiscriminate ... before we damn the whole market, let's remember what were damning." However, this widespread decline provides a buying opportunity in defensive sectors, such as food, drugs and utilities, sectors which historically perform well when housing is doing badly. Cramer suggests looking at KR, SWY, SVU, CL and KMB, but only after three days, since "the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday."
Thank You for Smoking: Altria (NYSE: MO - News), Altria's When-Issued Shares MO-WI (MOWI), Kraft (NYSE: KFT - News), General Mills (NYSE: GIS - News), Kellogg (NYSE: K - News), Sara Lee (NYSE: SLE - News)
"There's nothing more defensive than cigarettes," says Cramer who recommends Altria's when-issued shares, MO-WI, which are comprised of pure Philip Morris stock without the Kraft spinoff. Cramer comments Philip Morris is best-of-breed and the MO-WI shares offer a higher dividend. He suggests buying before March 30th when MO-WI will rejoin Altria. Although Cramer doesn't dislike KFT, he prefers food stocks GIS, which has been "doing fabulously," K and SLE, which have more "consistent and exciting growth" than KFT.
Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), BHP Billiton (NYSE: BHP - News), and Companhia Vale do Rio Doce (NYSE: RIO - News)
Cramer admits he has been waiting since February for DOW and AA to dip after takeover rumors which were printed a British newspaper. While he discourages speculation on potential buyouts if the fundamentals are not strong, "the fundies for both DOW and AA are pretty good." According to the rumors, Dow could be purchased by private equity firms at $60 a share, a substantial premium from its present rate of $42.94. He notes the company has a 3.5% dividend yield, has been raising prices and cutting costs. There is talk that BHP and RIO are eyeing AA at $40 billion, or $40.68 a share, while its current price is $32. The companies need the extra smelting capacity, and Cramer comments aluminum should perform better than it has been. "Buy Dow and Alcoa because when there's smoke, there's fire."
CEO Interview: Brian Roberts, Comcast (NasdaqGS: CMCSA) with Verizon (NYSE: VZ - News)
Cramer asked Brian Roberts if Comcast raised its capital expenditure in order to compete with rival Verizon, and he replied, "We upped our spending because people are buying our new products in record numbers. We're selling 50,000 phone subscriptions a week." This 30% increase "costs some money," although Roberts added these expenses will not interfere with Comcast's buyback plan; "We have bought back almost 10% of stock in the last two-and-a-half years, and we're going to continue buying back stock," Roberts said. Cramer would pull the trigger on Comcast and referred to Roberts as "money in the bank."
Published by SeekingAlpha

Labels: AA, BHP, CL, DOW, GIS, Jim Cramer, K, KFT, KMB, KR, Mad Money, MO, RIO, SLE, SVU, SWY, VZ

Getting Defensive: Kroger (NYSE: KR - News), Safeway (NYSE: SWY - News), Supervalu (NYSE: SVU - News), Colgate-Palmolive (NYSE: CL - News), Kimberly-Clark (NYSE: KMB - News)
"Subprime is the only problem," Cramer reassured investors after the "absolutely brutal" downturn on Tuesday which affected the whole market. While mortgage lenders should be suffering from subprime lending woes for awhile, Cramer remarks, "It is wrong for the Street to be so indiscriminate ... before we damn the whole market, let's remember what were damning." However, this widespread decline provides a buying opportunity in defensive sectors, such as food, drugs and utilities, sectors which historically perform well when housing is doing badly. Cramer suggests looking at KR, SWY, SVU, CL and KMB, but only after three days, since "the future on the commodity that has captured stocks -- the S&P 500 -- expires Friday, so I expect very little upside in this group until Monday."

Thank You for Smoking: Altria (NYSE: MO - News), Altria's When-Issued Shares MO-WI (MOWI), Kraft (NYSE: KFT - News), General Mills (NYSE: GIS - News), Kellogg (NYSE: K - News), Sara Lee (NYSE: SLE - News)
"There's nothing more defensive than cigarettes," says Cramer who recommends Altria's when-issued shares, MO-WI, which are comprised of pure Philip Morris stock without the Kraft spinoff. Cramer comments Philip Morris is best-of-breed and the MO-WI shares offer a higher dividend. He suggests buying before March 30th when MO-WI will rejoin Altria. Although Cramer doesn't dislike KFT, he prefers food stocks GIS, which has been "doing fabulously," K and SLE, which have more "consistent and exciting growth" than KFT.

Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), BHP Billiton (NYSE: BHP - News), and Companhia Vale do Rio Doce (NYSE: RIO - News)
Cramer admits he has been waiting since February for DOW and AA to dip after takeover rumors which were printed a British newspaper. While he discourages speculation on potential buyouts if the fundamentals are not strong, "the fundies for both DOW and AA are pretty good." According to the rumors, Dow could be purchased by private equity firms at $60 a share, a substantial premium from its present rate of $42.94. He notes the company has a 3.5% dividend yield, has been raising prices and cutting costs. There is talk that BHP and RIO are eyeing AA at $40 billion, or $40.68 a share, while its current price is $32. The companies need the extra smelting capacity, and Cramer comments aluminum should perform better than it has been. "Buy Dow and Alcoa because when there's smoke, there's fire."
CEO Interview: Brian Roberts, Comcast (NasdaqGS: CMCSA) with Verizon (NYSE: VZ - News)
Cramer asked Brian Roberts if Comcast raised its capital expenditure in order to compete with rival Verizon, and he replied, "We upped our spending because people are buying our new products in record numbers. We're selling 50,000 phone subscriptions a week." This 30% increase "costs some money," although Roberts added these expenses will not interfere with Comcast's buyback plan; "We have bought back almost 10% of stock in the last two-and-a-half years, and we're going to continue buying back stock," Roberts said. Cramer would pull the trigger on Comcast and referred to Roberts as "money in the bank."

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Labels: AA, BHP, CL, DOW, GIS, Jim Cramer, K, KFT, KMB, KR, Mad Money, MO, RIO, SLE, SVU, SWY, VZ

Foreign Exchange: Companhia Vale do Rio Doce (NYSE: RIO - News), BHP Billiton (NYSE: BHP - News), Rio Tinto (NYSE: RTP - News)
Cramer sees solid growth potential in foreign stocks, especially since they free the investor from Fed obsession. He says that foreign stocks can safely comprise up to 20% of a porfolio, and that while emerging markets may be a rough ride, there is no reason to be afraid of them. Cramer likes Brazilian companies RIO, BHP and RTP with RIO heading the list because of its acquisition of Canadian-based Inco, giving RIO a "hammerlock" on the metal. Nickle is going up while most other commodities are sluggish, and Cramer says that RIO is an exception to his rule about Latin American companies and can be a keeper rather than merely a trade. He adds that RIO is "dirt cheap," and he sees "endless upgrades" on RIO's horizon.
Oil Services Holdrs (AMEX: OIH - News), Schlumberger (NYSE: SLB - News)
A fall in oil prices caused a decline for OIH along with the entire sector until SLB reported a "ridiculously good" quarter, raised its dividend by 40% and revived oil, even through prices kept going down, observed Cramer. SLB was able to "turn bears into buyers" by stating in its conference call that the need for oil service stock is strong in spite of the fall in oil prices, which will not return to the $30s and $40s. SLB added that it expects to see " consistent high growth through the end of the decade." Cramer declared that oil stocks are a buy on weakness, particularly foreign companies because he is concerned about domestic drilling.
Capital One Finance (NYSE: COF - News)
In spite of its worse-than-expected earnings guidance on Thurday, COF jumped from $73 to $79 on Friday, mainly because the number of delinquencies decreased, a factor which raised COF's multiple. Since delinquencies have been reduced, Cramer trusts COF's earnings, comments that the stock is cheapnow and is going to $100, and calls it a triple buy.
CEO Interview: Joel Moskowitz, Ceradyne (NASDAQ: CRDN - News)
Cramer asked Joel Moskowitz about the recent Friedman Billings' report that there would be a decreased demand for body armor. Moskowitz responded "We have more orders for armor going into 2007 than we've had in the history of the company." In addition, he expects additional orders for 2007 and 08 because of "extended conversations" with the US government. Cramer commented that he is adhering to his bull stance on CRDN which is a "moneymaker."
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Labels: BHP, COF, CRDN, Jim Cramer, Mad Money, OIH, RIO, RTP, SLB