Jim Cramer's Mad Money Review

Jockeying for Position: Dynegy (NYSE: DYN - News), Brocade Communications (NasdaqGS: BRCD), Qwest (NYSE: Q - News)
Cramer suggested three "horse racing stocks" under $10 to keep investors interested. These are just temporary plays and should be sold when they reach $12. He notes DYN was "trashed" because of its former CEO Chuck Watson, but has been rescued by current CEO Bruce Williamson. He notes that DYN could be an attractive takeover target. "Brocade has momentum but is scary -- which is exciting," Cramer said about his second-favorite pick, which recently bought out its competitor and is in a position to raise prices. Cramer's favorite "horse" is Qwest which is around $9, but should be the first to reach the finish line at $12, because of its big federal contract.
Blue Stocking Stocks: Walgreen (NYSE: WAG - News), Grainger (NYSE: GWW - News) and Automatic Data Processing (NYSE: ADP - News)
Cramer discussed his favorite "aristocrat" stocks which pay solid dividends and provide protection when the economy is rough. He considered three "aristocrats," and eliminated WAG because it might have to stop raising its dividend to buy Express Scripts. While he expects GWW to boost its dividend, Cramer thinks the stock is too cyclical. Cramer's favorite artistocrat stock is ADP; "If there is such a thing as a blue chip, ADP is it." First, by spinning off its unprofitable brokerage service business, ADP may see 12-13% revenue growth. Secondly, Cramer likes ADP's "gigunda" $750 million buyback, and comments that ADP doesn't just have the history of raising its dividend, it has the money to continue dividend increases.
Mad Mail: Lundin Mining (AMEX: LMC - News), Dean Foods (NYSE: DF - News), Incyte Corporation (NasdaqGM: INCY)
Cramer told a viewer not to get discouraged with LMC because it is buying up mines. He would pick up more LMC on any pullback. He commented DF is "going back to where it was before it paid the dividend" of $15, and says the company is well-managed and pro-shareholder. When asked to defend his recommendation of INCY, which has no phase III drugs, over a company like Osiris Therapeutics with products in the pipeline, Cramer responded the best strategy for dealing with biotech is to avoid companies in the headlines and to find a biotech like INCY which has " its whole future ahead of it."
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Labels: ADP, DF, DYN, GWW, Hot Stocks, Jim Cramer, LMC, Mad Money, Q, WAG

Game Plan for Next Week: Brocade (NasdaqGS: BRCD), Apple (NasdaqGS: AAPL), Hewlett-Packard (NYSE: HPQ - News), Phillips-Van Heusen (NYSE: PVH - News), CarMax (NYSE: KMX - News), Accenture (NYSE: ACN - News) and DSW (NYSE: DSW - News), Movado (NYSE: MOV - News)
Cramer suggested buying Brocade ahead of an analysts meeting on Thursday during which it is expected to raise its estimates. Although Cramer does not usually recommend Cisco's competitors, the stock should rise after the meeting and he predicts Cisco might buy BRCD. While he likes BRCD as a trade, the only tech stocks good for investments are AAPL and HPQ. Cramer expects strong earnings reports next week from PVH, KMX, ACN and DSW. Cramer's top stock next week is MOV which he thinks will deliver a "substantial upside surprise."
Good and Bad IPOs Photowatt, eTelecare with stock First Solar (NasdaqGM: FSLR)
Cramer discussed two companies which are going public next week, one to pay attention to and one to avoid. Concerning Photowatt, which will trade under PHWT, Cramer says "We have had way too many solar stocks come public and there's not enough demand, even with the hype that surrounds solar... Avoid it at any price." He suggested FSLR for those who want a solar stock. However, Cramer thinks eTelecare, an outsourcing company based in the Philippines "the next great, outsourcing center," might be a good stock. It is expected to trade under the symbol ETEL from between $12.50 and $14.50. Cramer would not pay more than $15 and urged, "please buy it carefully."
Freeport-McMoRan (NYSE: FCX - News)
FCX is now a "happy oligopoly" after having merged with Phelps Dodge and has cornered copper, comments Cramer, who says its a "screaming" buy. FCX is a "terrific hedge against inflation" and is in "tremendous demand." Its secondary offering was priced at 41 million shares and FCX rose $1. Cramer notes that FCX is a well-liked stock which will continue to go up. While analyst estimates are not high, Cramer predicts FCX will provide "blow away" numbers. He adds that while demand for copper has declined in the U.S., it is a sought-after mineral in China. Cramer sees this $62 stock going to $100.
Mad Mail: Altria (NYSE: MO - News), Kraft Foods (NYSE: KFT - News), Dean Foods (NYSE: DF - News)
When asked how MO holders can lessen the risk of a downside from KFT after it is spun off, Cramer suggests buying MO's "when-issued shares।" However, he added, "Kraft will be added to the S&P 500 so there's a very good chance it won't go down at all." Cramer would stay with DF which should go up again.
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Labels: AAPL, ACN, BRCD, DF, DSW, FCX, HPQ, Jim Cramer, KFT, KMX, Mad Money, MO, MOV, PVH

Bullish Calls:
FedEx (NYSE: FDX - News): 'Now, this number wasn't that great, and the commentary wasn't that great but, you know what? I still think that FDX is a company worth owning long term, because it does not have a multiple on its growth rate, and because the management is superior to everyone else in the industry...'Bear Stearns (NYSE: BSC - News): 'You're still down 20 points from the high. Jimmy Kane is a great CEO... BSC... sells at a ridiculously low multiple to book. How can people not understand that this man knows the mortgage market nine ways to Sunday, and yet they still try to slam it. They're wrong ... that stock goes higher. I say 'all aboard!'Flow International (NasdaqGM: FLOW): 'FLOW is the best in show. Ultra-high water pressure, water jet... I think FLOW goes higher.'XTO Energy (NYSE: XTO - News): ' ... you move into my favorite, XTO!... 52-week high.'Dean Foods (NYSE: DF - News): 'I think the world of DF... I believe that you get long, you get that dividend, and then the stock goes right back up. DF - pull the trigger right now, ahead of the dividend! I want people in D.'Clearwire (NasdaqGS: CLWR): 'I am telling people to buy more CLWR... I have tremendous, tremendous faith in the management. And, if they hadn't priced it [the IPO] so darn high, I think we'd already be making money on the darn thing. So I say stick with it.'Nastech Pharmaceutical (NasdaqGM: NSTK): ' ... go into that NSTK. They have got a better chance of hitting it out of the park...'Chipotle Mexican Grill (NYSE: CMG - News): ' ... the highest hospitality quotient of any company I deal with...'Heinz (NYSE: HNZ - News): ' ... offering you both capital appreciation and capital protection Two thumbs up for HNZ. It's a reinvented company with 200 new products. HNZ rocks!'Garmin (NasdaqGS: GRMN): 'There'll be a selloff in the market, and you'll be able to buy GRMN cheaper than it is... I happen to like the stock, but I'm not paying $55 for it... It's too high. I like it. Let's be patient.'Mosiac company (NYSE: MOS - News): 'The way you buy a MOS is you wait for a big selloff. MOS happens to be my favorite fertilizer company. MOS can go back to $25 in a pullback and, only then do I advise that you pull the trigger!'Crown Castle (NYSE: CCI - News): 'CCI's my favorite; that's best of breed.'SBA COM (NasdaqGS: SBAC): 'SBAC is a good stock too.'
Bearish calls:
Usana Health Sciences (NasdaqGS: USNA): 'I wouldn't want to own USNA... 'Cabot Oil & Gas (NYSE: COG - News): 'COG is a really good company ... You've had a big run in COG. You ring the register, and you move into my favorite, XTO!... 52-week high.'People's Bank (NasdaqGS: PBCT): 'This is actually a tough one ... even though I know it's a well-run bank, I am going to have to put yours in the 'don't buy, don't buy' camp.'Empire Resorts (NasdaqGM: NYNY): ' ... I am saying don't buy, don't buy, to NYNY.'Fuel Tech (NasdaqGM: FTEK): 'I believe in this company, but I cannot get behind a company that sells at a 90x multiple. It's too rich for me.'Applebee's (NasdaqGS: APPB): 'I think APPB is going to be put for sale ... But, you know what? APPB is not that great a company ... swap out of APPB, and get into CMG.'Acadia Pharmaceuticals (NasdaqGM: ACAD): ' that is a dice-roll company - I am going to say ix-nay on the ACAD.'SBA COMM (NasdaqGS: SBAC): ' I like CCI more, but your SBAC is a good stock too.'
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Labels: APPB, BSC, CCI, CMG, COG, DF, FDX, FTEK, HNZ, Jim Cramer, Mad Money, MOS, NYNY, XTO

Bullish calls:
Saks (NYSE: SKS - News): 'The company is en fuego. This is one of my favorite situations ... SKS is going up - I think - 4 or 5 more points.'Sprint Nextel (NYSE: S - News): 'I was impressed about that last quarter. I had been very negative about S ... They blew away the numbers. I think S is now a buy, buy, buy, particularly under $20. That stock can go much higher.'Transocean (NYSE: RIG - News): 'Take a look at the rates that RIG is now getting.'Halliburton (NYSE: HAL - News): 'HAL is on the move. I have said this is going to be one of my best stocks of 2007, and I am reiterating a triple buy. Buy, buy, buy!'Logitech International (NasdaqGS: LOGI): ' I'm actually surprised this stock isn't doing better. They make the fabulous peripherals we all use. They make great mice. They did miss the quarter. I think the stock is a buy. I'm not backing away from LOGI.'Dean Foods (NYSE: DF - News): 'That company is all about returning money to shareholders. That special dividend plan is brilliant. I really want to plug these guys.'Genzyme (NasdaqGS: GENZ): 'I think you've got to buy this company. I think that people are very worried about congressional action against biotech. That's not going to happen. GENZ's good.'Gilead (NasdaqGS: GILD): 'GILD's good.'Celgene (NasdaqGS: CELG): 'CELG's good. 'Walter Industries (NYSE: WLT - News): It shouldn't have been hammered. All aboard! ... There's a lot of value there, if they choose to bring it out.'Baxter International (NYSE: BAX - News): 'BAX is the one that is operating on every single cylinder. I applaud BAX for what it's done. That stock has been at or near the 52-week high list for about a half a dozen years. BAX's a winner!'Bard (NYSE: BCR - News)MasterCard (NYSE: MA - News): ' This is an 'among the rubble' stock that came down during the selloff that I want to tell you right now... you need to buy more MA! I would pull the trigger multiple times. That's how much I like MA here. All aboard!'Emerson Electric (NYSE: EMR - News): 'Right here, it's got a 2.5% yield. It's one of the best-run manufacturers in the country ... It's growing at almost 12%. It sells at 16x earnings.'Parker Hannifin (NYSE: PH - News)Illinois Tool Works (NYSE: ITW - News)Vail Resorts (NYSE: MTN - News): 'I'll tell you, it's had a big run ... You know what, that's a good stock. On a pullback, I would have to pull the trigger. Buy, buy, buy!'Regal Entertainment (NYSE: RGC - News): 'You want to be there! These companies - these cinema companies are good - it's got a nice dividend. I think that this group was bad before. They've fixed their balance sheets. You should pull the trigger. I would own RGC.'Ceradyne (NasdaqGS: CRDN): 'To tell you the truth, I'd rather be in CRDN.'Union Pacific (NYSE: UNP - News): 'Oh man, that stock is rocking ... I say it goes to $120.'Goldman Sachs (NYSE: GS - News)
Bearish calls:
Global Industries (NasdaqGS: GLBL): ' I would swap out of GLBL and go into GSF, RIG or HAL.'RF Micro Devices (NasdaqGS: RFMD): 'Yeah, this is one of those little stocks that has had a nice move ... I think that you are too late, but these always come back again. I would sell, sell, sell, and when it comes in, back to $6 - buy, buy, buy!'Acorda Therapeutics (NasdaqGM: ACOR): 'I've got to tell you, this is a very speculative stock. I'm reluctant to recommend it, with a lot of the great biotech stocks trading down so badly ... Don't buy, don't buy.'Research In Motion (NasdaqGS: RIMM): 'I was not happy with Jim Balsillie [ co-CEO] with the options stuff... I expected more of Jim than that. He's one of my favorite executives. I do think that RIMM is good place to be ... Don't buy, don't buy. It's just too, too hard.'ExpressJet (NYSE: XJT - News): ' Look, XJT is frankly a don't buy. I don't want to go there. Don't buy, don't buy.'Bristol-Myers (NYSE: BMY - News): ' Sunshine, I've got to tell you something... I think that BMY is just okay right here. Don't buy, don't buy. It's had a very big move. I liked it much lower ... Sell, sell, sell!'Pioneer Drilling (AMEX: PDC - News): 'You cannot go with this land drilling! ... Sell, sell, sell, sell, sell, sell. It won't work!'Take-Two Interactive (NasdaqGS: TTWO): 'I have been mad at myself. Yesterday, I looked at Steve Cohen's position in DE Shaw, and said to myself, 'These guys are going to replace management at TTWO. Maybe that's a reason to buy it.' That was a mistake. When I look at the core business, I don't know if there's anything there. I think I was too aggressive with TTWO ... I think Steve Cohen is a terrific guy. I totally respect his work. I think he might be wrong about TTWO.'Jefferies (NYSE: JEF - News): 'No, no. Missed the quarter. Missed the quarter.'Force Protection (NasdaqCM: FRPT) 'To tell you the truth, I'd rather be in CRDN.'
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Labels: BAX, BCR, BMY, DF, EMR, GENZ, GILD, GS, HAL, JEF, Lightning Round, LOGI, MA, Mad Money, PDC, RGC, RIG, SKS, UNP, WLT

Bullish calls:
MGM Mirage (NYSE: MGM - News): '... Look, it's the 2nd-largest casino, it's very well-run, we know that the casino business is consolidating... but we're so worried about China now that the stock's had a pullback... You know what? It's had enough of a pullback. MGM works. I want to own the stock.'Blockbuster (NYSE: BBI - News): ' ... we have recommended - and continue to recommend - BBI as the play, because they're moving aggressively into NFLX's turf, and I think they're doing a great job.'Infosys Technologies (NasdaqGS: INFY): The stock has taken a hit here. Indian outsourcing is a powerful concept that is not going away ... I actually want to buy it here right now. It's ridiculously low. It's earnings are great. Let's put some on our sheets.'IAC/InterActive Corp (NasdaqGS: IACI): ' ... absolutely the biggest buyback I know.'Tyco International (NYSE: TYC - News): The company is worth more than $30 bucks! It's been just biding time ... I think the split-up will bring a lot of value. I think there's 25% upside, but you're going to have to wait for the split-up, because nobody's a believer except you and me.'Texas Roadhouse (NasdaqGS: TXRH): 'I like TXRH more [than SNS].'Sonic (NasdaqGS: SONC): 'I'm going to go with SONC.'Great Plains Energy (NYSE: GXP - News): 'It's got a great wholesale competitive business, it's got a 5% yield. It's hit my radar screen as something to buy. I'm going to encourage you to stay in that.'Apple (NasdaqGS: AAPL): ' Your fine in AAPL. It's meandering. It's biding time. It's making its way toward a great base of $83-87.'Google (NasdaqGS: GOOG): ' GOOG was up $16 yesterday. It's come down a little. It's meandering now ... Below $440, I think it's the price to pull the trigger.'Yahoo! (NasdaqGS: YHOO): 'GOOG is now anointed, along with EBAY, along with YHOO - I think both those stocks make a ton of sense.'eBay (NasdaqGS: EBAY)Bank of America (NYSE: BAC - News): 'I think BAC's incredibly well-run; it's got a big buyback. I think they've renounced the kind of acquisitions that have historically killed the stock.'Cognizant Technology (NasdaqGS: CTSH): 'This is another Indian company, although it's based in Teaneck [NJ] ... It has been a fantastic performer, and it will continue to be so.'Dean Foods (NYSE: DF - News): 'I like DF ahead of what I think is just a terrific buyback that they're doing for their company.'
Bearish calls:
Netflix (NasdaqGS: NFLX)Shutterfly (NasdaqGM: SFLY): 'SFLY's an okay dot-com. It does a little social stuff. I would rather see you in IACI.'Steak n Shake (NYSE: SNS - News): 'SNS is a not-great restaurateur ... I'm giving that a distinctive 'don't buy, don't buy.'First Marblehead (NYSE: FMD - News): 'It's had a big run. I would actually right here say let it go back under $40, before I want to buy it. Don't buy, don't buy.'Melco PBL Entertainment (NasdaqGM: MPEL): ' Macau is so close to China - like it is China - that MPEL - which has got the Chinese casino coming - is worrisome ... I'd rather fess up, be wrong than I would stick with something that I'm worried about.'Cal-Maine Foods (NasdaqGM: CALM): ' Uh, egg company. You know what? Just okay.'

Labels: AAPL, BAC, BBI, CALM, DF, FMD, GOOG, GXP, INFY, Jim Cramer, Lightning Round, Mad Money, MGM, MPEL, SNS, TYC