Jim Cramer's Mad Money Review

Lear (NYSE: LEA - News), Time Warner (NYSE: TWX - News), WCI Communications (NYSE: WCI - News), Lennar (NYSE: LEN - News)
Cramer says that it is a good idea to piggyback off of financial wizards such as Carl Icahn who made good calls with Lear and TWX and is currently buying WCI. However, he stressed that it is important to understand why Icahn likes this upscale homebuilder which owns 86% of its properties. Cramer notes that WCI is sitting on a pile of real estate, is selling at below book value, and predicts that the stock will eventually be more valuable than the properties. While some are worried about Florida real estate, Cramer observes that Lennar recently made a successful Florida investment. An important rule in piggybacking, says Cramer, is to wait for the hype to pass before investing; Icahn bought WCI when it was four points lower, andit is now nearly $22.

Genentech (NYSE: DNA - News)
After enjoying a successful year, DNA is lower than it has been in the last 14 months, and Cramer attributes this to the market's subjectivity, especially since the company was expected to see 30% growth and it actually reported 70% growth. Cramer explained that the factors affecting the movement of a stock are its earnings and its multiple. Since DNA reported strong earnings, its multiple, or what people are willing to pay for the earnings, must have been a factor in its decline. A multiple is affected by three kinds of risk: political, earnings and inflation. Cramer eliminated earnings risks from the equation, said that inflationary risks affect future earnings and have peaked, and that worries about the Democrats hurting DNA have abated. Cramer concluded that DNA is heading back up to where it was 14 months ago, called it a best-of-breed biotech stock with a great pipeline. His conservative estimate is that DNA will go to $104 from $87.53 and his bullish figure is $140.

Sell Block:Guess? (NYSE: GES - News), XM Satellite Radio (NASDAQ: XMSR - News), Interpublic Group of Companies (NYSE: IPG - News), Deere (NYSE: DE - News)
Cramer would sell Guess after it rose 38.7% since his initial recommendation. He would get rid of XMSR because it has "run out of steam." Although IPG may have some upside, Cramer would take profits and sell it. He has liked DE for a long time, but Cramer says that it is time to say goodbye. Although it might go up an other 8 points, Cramer says that this $100 stock has given its investors substantial profits.Mad Mail: Apple (NASDAQ: AAPL - News)
Cramer disagrees with an Investors' Business Daily bullish call on tech; "I like IBD very much but think they are wrong here," he said. When asked who is selling Apple, Cramer says that the shorts are putting pressure on the stock, adding that it should not have risen 8 points on the release of iPhone and its negative guidance may be bringing it down. However, he would build a position on the stock as it declines.

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Labels: AAPL, DE, DNA, GES, IPG, Jim Cramer, LEA, LEN, Mad Money, TWX, WCI, XMSR

Treehouse Foods (NYSE: THS - News)-Cramer comments that although some public leveraged-buyout firms, such as KKR and AP Alternative Assets are down, Treehouse Foods is on the way up. THS is "an acquisition vehicle and a growth story" which has a "virtuous cycle," according to Cramer because it makes more acquisitions as it goes higher, and these deals put the company in a good position. Cramer would buy the stock now at its 52-week high because its "high share price is the currency it uses to buy other companies."Oregon Steel (NYSE: OS - News) Reliance Steel (NYSE: RS - News), Nucor (NYSE: NUE - News)-Hype over an article in the Wall Street Journal about a glut in the steel market caused many investors to miss out on "sweet" stocks like Oregon Steel. The article neglected to mention that these stocks were trading at five to six times earnings, and the glut was already priced in. However, it is not too late to pick up Reliance Steel, says Cramer, which may be taken over since there is a lot of consolidation going on the the steel industry, excluding Nucor, which Cramer thinks is doing too well to be bought. Reliance reported a great quarter, notes Cramer, and has strong fundamentals.Interpublic Group (NYSE: IPG - News)-Cramer likes this company because it is coming back after having been a "horrid disappointment" with its accounting problems, although this turnaround has not yet been reflected in the stock. Recently IPG "snagged a massive contract with GlaxoSmithKline" and is working with Wal-Mart, notes Cramer who adds that the company had a great quarter, is cutting expenses and is increasing revenue. Since none of its contracts are under review, IPG will not lose customers: "The bottom has been put into this stock, and opportunity is knocking. It is a triple buy," says Cramer.CEO Interview: Sylvester "Chip" Johnson of Carrizo Oil & Gas (NASDAQ: CRZO - News)-When Cramer asked Chip Johnson why investors should buy shares of his company which has natural gas exposure, he replied "Even in the near-term, gas storage is full, but is only about 4% higher than the highest level it reached a couple of years ago." He recommended taking a long-term view and said that his company had "one of the biggest anchorage positions" in Texas gas field BarnettShale. Johnson admitted that he wasn't sure why natural gas has hit bottom. "We had most of our gas hedged, so we weren't worried about it in the near-term, but the fact that it has bounced back now seems a little premature to us." Cramer suggested that while those who are bullish on natural gas should buy CRZO, he is not bullish.

Labels: CRZO, IPG, Jim Cramer, Mad Money, NUE, OS, RS, THS