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.

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

Six Bulls: John Deere (NYSE: DE - News), Monsanto (NYSE: MON - News), Sociedad de Chemica (NYSE: SQM - News), Caterpillar Inc. (NYSE: CAT - News), Terex (NYSE: TEX - News), Manitowoc (NYSE: MTW - News), Foster Wheeler (NasdaqGS: FWLT - News), McDermott International (NYSE: MDR - News), Jacobs Engineering (NYSE: JEC - News), Boeing Co. (NYSE: BA - News), Halliburton (NYSE: HAL - News), Royal Dutch Shell (RDS-A), Exxon Mobil (NYSE: XOM - News), Freeport McMoran (NYSE: FCX - News), Lundin Mining (AMEX: LMC - News)Cramer dedicated the program to discussing six bull markets and recommending stock picks for each sector.Agriculture: Cramer commented on a "disturbing" editorial in the New York Times which called for an end to agricultural subsidies, but he is confident the policy will never be enacted. Cramer calls Deere "money in the bank" and notes that it sells at 16x earnings and has a 12% growth rate. While Monsanto, which trades at 35 x earings "will never be cheap," Cramer says its 24% growth rate is worth the price at $60, and he would buy it up to $70. The Chilean fertilizer company, SQM, is the world's largest supplier of lithium which goes into batteries and will be in shorter supply as "the greening movement reaches its nauseating zenith."Machinery While he confesses amazement that CAT is stalled, Cramer says it is "preposterously cheap" trading at 13x earnings with 12% growth. He adds CAT has great international exposure, will benefit from the collapse of its Japanese competitors, and is a solid infrastructure play. While he also likes TEX and MTW, Cramer thinks CAT is still best-of-breed.Infrastructure: Cramer calls this the "wildest" bull market which will benefit from oil prices and the need to create alernative power plants and petroleum infrastructure. Even though Foster Wheeler and McDermott International have had "tremendous runs" Cramer notes FWLT sells at just 17x next years earnings with 34% growth, and MDR has 14% growth and sells at 17x earnings. He adds these stocks do not get enough coverage on Wall Street, and would buy them. Cramer gives Jacob's Engineering and honorable mention, although is more expensive than the other two.Aerospace:Boeing is up only 10% when the rest of the sector has risen 22%, and Cramer comments, "It's a laggard. It should be leading." Boeing sells at 20x earnings and has 18% growth. He thinks the company has a good future given the health of the sector, its international business, and some "amazingly-terrible problems at AirBus."Oil and Gas: After a run for this sector, it was down on Tuesday; "People are just thinking it's over, because oil is down 2 bucks," said Cramer and he expressed confidence that the sector would bounce back. In spite of its "giant" buyback, "robust" outlook for oil and gas and its international exposure, Cramer notes HAL is down 12% from last year. Cramer likes Royal Dutch Shell with 10x earnings, 8% sales growth, and a yield at nearly 4%. While Exxon Mobil was down on Tuesday, it is still "a go-name for big institutions."Minerals: Cramer says rumors of full copper inventories are "nonsense," because the Chinese need more copper. He likes copper play FCX and says its gold is a good hedge against inflation. He notes the company sells at only 9x earnings, but he predicts a 12x multiple. Cramer added the quarter was not good due to strikes and the cost of its Phelps Dodge deal, but predicts it will benefit from copper demand. He also likes Lundin which he thinks will go from $12 to $15 on the Tenke Mining deal in late June.Published By SeekingAlpha

Labels: BA, CAT, DE, FCX, FWLT, HAL, JEC, Jim Cramer, LMC, Mad Money, MDR, MON, MTW, SQM, TEX, XOM

Lockheed Martin (NYSE: LMT - News): 'I think LMT is incredibly cheap. It's got a huge buyback. A question whether it even needs to be public. I would buy that stock hand over fist, every time it gets hammered. It's been a big winner, and it will stay a big winner.'Reliance Steel (NYSE: RS - News): 'RS is the cheapest stock left in the group. I look at RS, in the mid-$40s, and I think it's a travesty... The stock deserves to sell in the $50s... 'Freeport-McMoRan (NYSE: FCX - News): ' There are very few stocks that I feel have created value by merging in this country... FCX has created a giant colossus of copper... As the Chinese continue to buy copper, you are going to coin money FCX... I typically don't like the cyclicals right here. FCX is a buy, buy, buy, and I want you to stay long it. FCX, you rock!'Jacobs Engineering (NYSE: JEC - News): ' It has reported two great upside surprises. And it does not get the respect ... JEC is best in show.... trades very difficult... I think $90 goes to $110. I like the infrastructure group. They're doing a great job.'Foster Wheeler (NasdaqGS: FWLT): 'I like FWLT.'Transocean (NYSE: RIG - News): 'I've got to go with best of breed RIG. Long Live RIG!'GlobalSantaFe (NYSE: GSF - News)
Neutral calls:
Riverbed (NasdaqGM: RVBD): 'It has now pulled back to $26. There is a sense that the stock is played out, and the reason is that there's been so much insider selling. I am now in 'wait and see' mode in RVBD.... I can't pull the trigger on RVBD, until I see the quarter...'
Bearish calls:
United States Steel (NYSE: X - News): 'Swap out of X and get into RS.'Southwest Airlines (NYSE: LUV - News): 'it was the once-great - because no one else had its recipe... and now everyone's got its recipe... and now, it's a don't buy ... LUV has got to come down before I can recommend it.'Advanced Micro Devices (NYSE: AMD - News): 'I've got to take the extraordinary step of pressing every single bad button there is! Sell, sell, sell! The house of pain... There is no reason for AMD to live! It has no purpose! It has nothing going for it! If you're in AMD, I give you permission right now to leave, and sell that stock!'GameStop (NYSE: GME - News): 'The new product's dried up a little, so I've got to tell you, I would not buy GME until we get closer to the Christmas season. I think it does nothing for now.'Diamond Offshore (NYSE: DO - News): 'No. DO does not have the leverage to the world that RIG has. It has a little too much Gulf of Mexico for me ... I cannot bless that stock.'
Published by SeekingAlpha

Labels: AMD, DO, FCX, GME, GSF, JEC, Jim Cramer, Lightning Round, LMT, LUV, Mad Money, RIG, RS, X

Among the companies whose shares are expected to see active trade in Monday's session are Phelps Dodge Corp., Tyson Foods Inc. and Schering-Plough Corp.
Cummins Inc. (NYSE:CMI - News) is expected to report earnings per share for the fourth quarter of $3.77, according to analysts polled by Thomson Financial.
Mattel Inc. (NYSE:MAT - News) is expected to post fourth-quarter per-share income of 67 cents.
Phelps Dodge (NYSE:PD - News) is expected to report per-share income of $4.28 for the fourth quarter.
Plum Creek Timber Co. (NYSE:PCL - News) is expected to post income of 34 cents a share for the fourth quarter.
Schering-Plough (NYSE:SGP - News) is expected to report per-share earnings of 17 cents for the fourth quarter.
Sysco Corp. (NYSE:SYY - News) is expected to report second-quarter per-share income of 38 cents.
Tyson Foods (NYSE:TSN - News) is expected to report first-quarter earnings of 6 cents per share.
UnumProvident Corp. (NYSE:UNM - News) is expected to post earnings per share of 44 cents for the fourth quarter.
Verizon Communications (NYSE:VZ - News) is expected to report fourth-quarter per-share income of 61 cents.
Zimmer Holdings Inc. (NYSE:ZMH - News) is expected to post fourth-quarter earnings of 99 cents per share.
After Friday's closing bell, Jacobs Engineering Group Inc. (NYSE:JEC - News) said it has approved a 2-for-1 stock split, to be effected in the form of a stock dividend. The additional shares will be distributed on March 15 to shareholders of record as of Feb. 15.
Watch listAmerican Express Co. (NYSE:AXP - News) said it has named Richard Levin, president of Yale University, to its board. The financial services and travel firm also said it has elected Ronald Williams as a director. Williams is president, chairman and chief executive of Aetna Inc. (NYSE:AET - News).
Datawatch Corp. (NasdaqCM:DWCH - News) said it has appointed Douglas Zaccaro as interim chief financial officer. Zaccaro succeeds John Hulburt, who is leaving effective Jan. 31.
Hospitality Properties Trust (NYSE:HPT - News) said the registration statement for its TravelCenters of America LLC spinoff has been declared effective by the Securities and Exchange Commission.
Quality Distribution Inc. (NasdaqGM:QLTY - News) lowered its outlook for the fourth quarter and 2006 primarily due to softer-than-anticipated seasonal demand and an unexpected charge for costs associated with legacy environmental remediation projects. The transportation company said it now sees earnings per share of 3 cents to 7 cents for the fourth quarter, compared with its prior view of 17 cents to 19 cents. For 2006, the company now sees earnings per share of 59 cents to 63 cents, compared with its prior view of 74 cents to 76 cents.
Sunoco Logistics Partners L.P. (NYSE:SXL - News) reported fourth-quarter net earnings of $27.9 million, or 80 cents per limited partner unit, up from $13.9 million, or 52 cents per limited partner unit, in the year-ago quarter. Revenue in the three months ended Dec. 31 rose to $1.49 billion from $1.15 billion.
Symantec Corp. (NasdaqGS:SYMC - News) said it has named Thomson S.A. Chairman and Chief Executive Frank Dangeard to its board of directors.
Trex Co. (NYSE:TWP - News) said it will restate its results for 2003 through 2005 and the first nine months of 2006 to correct errors related to the recording of certain expenses. The maker of composite decking and railing expects the cumulative effect of the restatements to increase its reported net income for 2003 through 2005 by roughly $200,000, and to increase its reported net income for the first nine months of 2006 by roughly $200,000, or 2 cents a share.
Published by MarketWatch

Labels: AET, AXP, CMI, DWCH, HPT, JEC, MAT, PCL, PD, QLTY, SGP, SXL, SYMC, SYY, TSN, TWP, UNM, VZ, ZMH