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

On Thursdays show, Cramer talked about the confusion in the markets, and how you should be looking to invest in companies that can control their own destiny and have strong customers. Cramer thinks that Quanta Services (PWR) is a stock that fits this profile. He said it is an infrastructure play, they have a large backlog, and they bought one of their major competitors in August, so they have less competition now. Cramer does not think this is the time to make a trade into this stock, but he thinks it will make money over the longer term.
After that Cramer went to the phonelines. The first caller asked if now is the time to buy transportation infrastructure stocks, and Cramer recommended Chicago Bridge and Iron (CBI), plus told the caller to watch for another pick later in the show. The next caller asked about Mueller Water (MWA), and Cramer said that he likes Tetra Tech (TTEK) instead because he thinks Mueller is poorly run. Third caller asked about Shaw Group (SGR) since it has dropped so much recently, and Cramer said that it is a strong company that is coining money, so you should stick with it.
Cramer's other big infrastructure recommendation, Aecom (ACM). He has a bullish position on the stock since the stock is off $9 from his 52 week high. Its biggest customer is the federal government so it knows it will get paid, and one of its biggest competitors was just bought out. Cramer has been promoting the stock for several months now, and the stock has gone up since his initial recommendation.
Sell Block: Cramer started off by talking about private equity, specifically Blackstone (BX) and Fortress (FIG). Cramer said he does not understand how these companies work, therefore doesn't want to invest in them. He's putting the entire sector in the Sell Block, including companies like Cerberus that are not public, but are considering an IPO.
The CEO of California Pizza Kitchen (CPKI) was on the show to talk about their growth plans and how they plan to contain their costs. Cramer said that although the restaurant business is difficult, the stock is near a 52 week low and it is a well run company. He wants you to do some homework and take a look at the stock.
Sudden Death: He was bearish on every stock mentioned. They were Coeur d'Alene Mines (CDE), Tata Motors (TTM), Build a Bear Workshop (BBW), Gerdau Ameristeel (GNA), and Hansen Medical (HNSN).

Labels: BBW, CBI, CDE, CPKI, GNA, Jim Cramer, Mad Money, Mad MOney Recap, MWA, PWR, SGR, TTEK, TTM