Jim Cramer's Mad Money Review

The best way to sustain Friday's late rally is for the government to cut a back-room deal with the largest banks and brokerages to get them to start making loans again, Jim Cramer told viewers on his "Mad Money" TV show on Friday.
On a day when Dow closed down 128 points after another extremely volatile session, Cramer said this "secret" meeting is necessary to get the economy, credit markets and stock markets rolling again and avoid a repeat of this past week's brutal market.
Cramer said he would have the Federal Reserve take the initiative by inviting to the meeting the CEOs of large financial institutions such as Citigroup(C ), Bank of America(BAC ), Wells Fargo(WF ), JP Morgan(JPM )Morgan Stanley(MS), and Goldman Sachs(GS ), the latter three of which he owns for his Action Alerts PLUS portfolio.
Cramer said the Fed would tell the CEOs that it would not repeat the mistake it made when it allowed Lehman Bros to fail. Instead, he said, the Fed would do all that it can to get the financial institutions open for business again.
He said the Fed would guarantee all their debts as well as their brokerage, savings and corporate accounts. Furthermore it would allow them to pay off their bonds with federal money, permit them to sell their credit default swaps lower and provide them $100 billion each to lend.
In return, these financial institutions would have to live up to their end of the bargain by "opening the spigots" and make loans again. He said the loans will be targeted to corporations, small businesses and individuals - but not hedge funds.
He also said the Fed would have the financial institutions divvy up the "bad banks" among themselves, with the aim of having them assume the good deposits while selling the bad assets to the federal government's newly created Troubled Asset Recovery Program.
Cramer said that after the market's worst-ever weekly drop it's "time to change our incredibly negative bias," as stocks are no longer in endless sell mode.
For Cramer it's time to rent some stocks, with a look at owning longer term if the market again approaches the lows seen on Friday. Cramer believes the market will chase those lows since the market rarely bottoms on a Friday, and the snapback by stocks was too far, too fast.
That means a new game plan is needed for the cash that Cramer told traders to peel off last month.
Expecting a gap down on both Monday and Tuesday, Cramer advises putting 25% of that cash back in play on both days. As usual, Cramer is against buying all at once.
As for where to put it, Cramer offered a stock like Kellogg(K ) as a template, based on its rallying behavior a year after the 1987 crash.
Of course, Cramer said this isn't 1987 - times are a lot worse. Given that, Cramer suggests loooking at companies that are trading around their cash on hand, such as KBR(KBR ).
You should also look at companies that make products that you eat, such as Kraft(KFT), Heinz(HNZ ), Coca-Cola(KO ) and Altria(MO ). Cramer owns Kraft and Altria in his Action Alerts Plus portfolio.
Cramer also likes giant pharmaceutial Merck(MRK ), cyclical plays Nucor(NUE )and Freeport McMoRan(FCX ), which he also owns for his Action Alerts PLUS portfolio, but reminded viewers that you only want a small position with the last two, since they aren't self-financing.
Cramer would be careful with financials, but he likes US Bancorp(USB ), and threw in a recommendation for Duke Energy(DUK ).
The new leadership is companies that don't need money, Cramer said.
Half-Empty
Cramer likes that traders dodged a bullet on Friday, with a "spectacular" rally off the lows of the morning, but he believes it's important to lay out the worst-case scenario so investors can go forward "with their eyes open."
In the worst case, the model isn't the 1987 market crash, which saw equities bounce back only a year later, but a "1929 scenario" which brought an 89% peak-to-trough drop and a "decline that just wouldn't quit."
In that model, Cramer said, currently flailing stocks like U.S. Steel(X ) and General Motors(GM ) wouldn't be done yet.
Cramer said that unfortunately the parallels with the 1929 crash are too close for comfort. As in 1929, he explained, we have a presidential administration that's in over its head. Listening to Bush say the government taking necessary actions to solve the crisis is like President Herbert Hoover saying than that the worst is behind us.
Cramer noted the market's tanking after Bush's most recent comments about the market, as well as the similarities of a Federal Reserve too focused on inflation and a wave of bank failures.
Cramer said he believes the federal bailout plan can help, but that a second Great Depression is still on the table. "That's why you have to be careful with your buying," he said.
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Labels: BAC, Bank of America, C, Citigroup Inc., Goldman Sachs Inc., GS, HNZ, Jim Cramer, JP Morgan Chase and Co., JPM, K, KBR, KFT, KO, Mad Money, Merck, Morgan Stanley, MS, Wells Fargo, WFC

Erin Burnett started the show today asking if CITI Group's decision to sell almost 5% of their company to the Arabs was such a good one. Also that crude oil is down about 3%. Steve Leisman says that focus is being taken off the weak dollar and on to the weak economy. Future plans are in effect for the improvement of consumers concern with the state of the economy and risk of recession. Abu Dhabi has paid over $7 B (The biggest purchase of an American Company buy a foreign) to make part of CITI. Arabs are looking for financials, homebuilders and hotels. Anything from actual buildings to stock equity sharing on the financial sector side are up for grabs. Sen. Chuck Schumer of New York shows concern for a continuing opportunity for American investments. As a democrat, free trade is not a top priority for him, and he wants to avoid building walls in between Americans and business buy giving power to foreign investors. The Arabs say they have no interest in board or managerial roles, only to play as a passivist support group who believes in the potential of American companies. David Weber says MasterCard (MA) and Research in Motion (RIMM) are his picks for the day. Next, there was the real estate market. David Blitzer of Standard and Poor's says that prices are driving foreclosures, resulting in a 524,000 fewer jobs and $6.6 billion lost in taxes. Also that a mass amount of foreclosures are driving the prices of surrounding homes down. The worst hit is New York at a loss of over $10 B. You can keep updated by visiting; realtycheck.cnbc.com. Next, Russia will be electing a parliament on Sunday, Dec 2nd. Julian Mayo of U.S Global Investors Eastern Europe Fund says that increased certainty is acknowledged for the outcome, being in supporters of Vladmir Putin's favor. The Russian market is leading the world. Utilities and Telecomm are the top performers in Russia. An update for CITI Group says that the company has not closed off opportunities for foreign purchase and investment. Rick Santelli of CNBC says that apparently CITI is looking for more than $7.5 B. and a loss of ownership by more than 5%. David Faber of CNBC says that raising capital will be the main concern for financial institutions as a result of CITI's decisions. More write-downs to come for consumers, and more capital to be raised will likely come from Arab investors and foreign petroleum dollars. Jim Cramer with Stop Trading was next. American International Group (AIG), and JP Morgan (JPM) are among his choices for likely candidates for middle eastern investors. He says that more capital for the corporations should be a positive thing for consumers. Jim Goldman of CNBC says that Verizon (VZ) announced that they will promote unrestricted access. This makes Verizon a much stronger competitor in the future. With 64M wireless customers in the U.S, Verizon will cause even more problems for companies such as Sprint and Nextel.

Labels: abu dhabi, AIG, Citigroup Inc., CNBC, CNBC's Stop Trading, Erin Burnett, Jim Cramer, Jim Cramer's Stop Trading, JPM, MA, RIMM, Sprint Nextel, Street Signs, street signs recap, VZ

Trish Regan hosted Tuesday's show. Weak dollar and its positive impact on the housing market was presented first. Foreign investors are purchasing second homes and vacation condos here in America. Real Estate brokers say that Europeans are experiencing low prices for there vacation home purchases in locations such as Miami, FL. Mark Vitner of Wachovia says that foreign investors will, in a way, pave the way for an improvement in the weak currency. Dow up 170 pts. and S&P up 20 pts. Wal-Mart, IBM, J.P Morgan and American Express are today's DOW leaders. November is still on track to be worst month ever for stocks in five years. Wal-Mart, Home Depot, Tahlbots, and Aeropostale are among top retailers. Margaret Brennan of CNBC says Wal-Mart's improvement can be accredited to slow traffic within the stores, and correction with inventory consideration. Jeffrey Schwartz, Prologis Chairman and CEO; says under good management, there is always a way to appeal to the interests of the consumer, not just their budgets. Sirius Satellite Radio shareholders vote to approve merger with XM Satellite. Sharp Pullback for Oil; Rebecca Jarvis of CNBC says that Crude Oil is down 2%. Next, Kozlowski, former TYCO CEO gives prison tell all to CNBC. After taking millions upon millions from TYCO, Dennis Kozlowski will sit behind bars for the remainder of his life. Dow has biggest one day gain since October. Next, in the Tech Sector: Micrsoft Zune vs. Apple IPOD. Jim Goldman of CNBC says The Microsoft Zune will never compete with anything Apple can release. Apple has sold over 100 million IPODS since 2002. Lance Ulanoff, editor-in-chief of PC magazine says they gave the Zune the product of the year award because of unique features including a FM radio Tuner. Jim Goldman adds that despite Microsoft’s low prices, people have shown through the years that the price on Apple products does not reflect a decrease in consumption. They love the iPOD! Next, Wendy Bounds of WSJ says Forum is a type of professional group therapy. In forum sessions, advice is not given, but similar stories are shared. With more than 60,000 members worldwide, Forum sessions are ever popular with entrepreneurs of the average age of 39.

Labels: AME, CNBC, IBM, JPM, The Call, trish regan, Wal-Mart

Sun Trust (STI), PNC (PNC), Bank of New York (BK), State Street (STT), Bank of America (BAC), JP Morgan (JPM): Cramer was impressed with STI's earnings report which, along with results from second-tier banks such as PNC, BK and ST, indicate "not every bank is going down." After a 31% drop in BAC's earnings, Cramer said "I believe in Ken Lewish [the CEO.]" Cramer blamed massive writeoffs in home equity loans, a widespread problem, for BAC's decline and discussed the bank's successful investments in China. Cramer was less enthusiastic about CEO of JPM, Jamie Dimon, whose performance was not as bad as that of other CEOs, but Cramer called this remark "damning with faint praise."
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Labels: BAC, BK, Jim Cramer, JPM, PNC, STI, Stop Trading, STT

Stocks pulled back sharply Monday as news that major U.S. banks will set up a fund to help bail out the credit markets stirred concerns about bad debt and as oil prices surged to $86 per barrel for the first time. The Dow Jones industrial average lost more than 100 points.
The stock market's pullback comes not only amid concerns about debt and rising energy costs but as investors await third-quarter reports due this week from more than 80 components of the Standard & Poor's 500 index.
The concerns about banking came after Citigroup Inc., the biggest U.S. bank, reported that third-quarter results fell 57 percent. The company said it lost more than $3 billion in mortgage-backed security losses, leveraged debt write-downs and fixed-income trading losses.
The bank -- along with JPMorgan Chase & Co. and Bank of America Corp. -- announced the creation of a fund used to help revive the asset-backed commercial paper market. The fund will buy assets from structured investment vehicles, also known as SIVs, which buy corporate bonds and subprime mortgage debt. The bailout was orchestrated by the Treasury Department to avoid a fire sale in the market.
"It's a reminder that this problem never was entirely put to bed. There may be financial institutions out there than are in more trouble than we thought they were," said Aaron Gurwitz, co-head of portfolio strategy at Lehman Brothers Investment Management, referring to concerns about bad debt. He also noted that Monday's session wasn't unusual given the back-and-forth moves in the major indexes in recent sessions.
The Dow fell 108.28, or 0.77 percent, to 13,984.80.
Broader stock indicators also declined. The S&P 500 index fell 13.09, or 0.84 percent, to 1,548.71, and the Nasdaq composite index fell 25.63, or 0.91 percent, to 2,780.05.
Source: Tim Paradis, AP Business Writer

Labels: BAC, BIIB, C, JPM, MDT

Amgen (AMGN), Celgene (CELG): Cramer is nervous that Amgen's management hasn't been saying more about the company's pipeline, even though the risk is 3 points and the reward is 7 points. He comments that Celgene also has significant upside potential.
J.P Morgan (JPM), Caterpillar (CAT), Deere (DE): Cramer would stay away from JP Morgan because of potential writedowns, and prefers CAT, in spite of the fact that Deere has upstaged CAT lately.
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Labels: AMGN, CAT, CELG, DE, Hot Stocks, Jim Cramer, JPM, Stop Trading

Nokia (NOK), Navteq (NVT) and Motorola (MOT): Cramer would use the decline since the Navteq acquisition as an opportunity to buy NOK, and says that NOK far surpasses competitor MOT.
Capital One (COF): This bank may have finished its decline since there is reassuring news from California that the number of defaults will not be overwhelming, says Cramer.
Cisco (CSCO) and Ciena (CIEN): Cramer prefers Cisco to Ciena, which he would sell since it has jumped 10 points.
Bank of America (BAC), JP Morgan (JPM): BAC is inexpensive and should reach $60 from $52, Cramer predicted, adding that JPM's CEO Jamie Dimon is overrated.
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Labels: BAC, CIEN, COF, CSCO, Jim Cramer, JPM, MOT, NOK, Stop Trading

Astoria (AF),New York Community Bancorp (NYB) and Capital One (COF), Citigroup (C), JP Morgan (JPM)
Cramer calls TDBank’s acquisition of Commerce Bancorp a “natural fit” only the beginning of what he believes will be a larger trend of Canadian banks buying American banks such as Astoria, New York Community Bankcorp and Capital One. The matches are made in heaven, since the Canadian monetary and stock currency is strong, but they need deposits, and the U.S. is "riddled with deposits by companies that can't grow their business." While Canada avoided the U.S in the past because of the perception the U.S banks were overvalued and the Canadian loonie was undervalued, the loonie’s recent strength changes the landscape. While TD’s acquisition was wise, Cramer was critical of Citigroup’s taking over a bank in Tokyo which is "the worst market in the world. It's more mature than the U.S., which is hard to find and is led by a cast of people that don't favor great growth. That's what Citigroup does." Cramer notes even JPM isn’t making many acquisitions these days, which leaves plenty of room for the Canadians. While taking out Commerce Bancorp at nearly triple its value was “historically high,” Cramer commented, “ I believe that at three times, it does establish a new benchmark, if you can find banks that are equally as customer friendly." Cramer adds the Canadians are looking at banks mainly in the Northeast to get a hold on the New York area, “the only area in the country where real estate is going higher.”
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Labels: AF, C, COF, Jim Cramer, JPM, NYB, Wall Street Confidential

Cramer began Friday's show by sharing his CEO Hall of Shame. These are stocks that he thinks would be better off if the CEO quit or was forced out.
Alcatel-Lucent (ALU): Cramer thinks the CEO was given an ultimatum to deliver results now.
Marsh McLennan (MMC): The company should be broken up, and that splitting the company up is the only way shares will increase unless the CEO leaves.

Next, Cramer took some phone calls about other stocks with bad CEOs, like Pall (PLL). He also told people that he can't recommend buying Sirius (SIRI) now because it's too expensive, and that he thinks you should stay away from Palm (PALM).
Next, Cramer did a "Speculation Friday" segment, where he recommends high risk stocks. BioMarin (BMRN), a small biotech firm. It has developed a drug for pheylketonuria that will be the only drug on the market, protecting it from generic competition until 2015 in the US and 2018 in Europe. Cramer thinks the drug will be approved by the end of the year, but if it doesn't, it will be a risky investment.
Other calls: La-z-boy (LZB): Cramer doesn't like, and Sangamo BioSci (SGMO):He thinks is very risky.

After the lightning round, Cramer discussed what stocks he think will take the Dow to his year end target of 14,548. They are American Express (AXP), AIG (AIG), JPMorgan Chase (JPM), Citigroup (C), DuPont (DD), Altria (MO), Boeing (BA), and Caterpillar (CAT).

In the last segment, Cramer answered some emails. He changed his mind on GigaMedia (GIGM), making it a buy now, and told viewers to wait for a pullback on (AMZN) since it's "marked up heavily."

Labels: ALU, AMZN, AXP, BA, BMRN, CAT, DD, Jim Cramer, JPM, Mad Money, Mad MOney Recap, MMC, PALM, PLL, SIRI

On today's show, Cramer started off by talking about the good news that General Motors (GM) received with the completion of their labor talks that he thinks will move the stock to $45, and the rumors that Warren Buffet is buying a stake in Bear Stearns (BSC) that will move it higher, along with other financial stocks Citigroup (C), AIG (AIG), J.P. Morgan (JPM), and American Express (AXP).

Cramer then started talking about buying inexpensive oil stocks when there is a pullback in oil prices. His stock choice is Gardner Denver (GDI) that will profit from higher oil prices and a weaker dollar. Compared with similar stocks such as Baker Hughes (BHI), National Oilwell Varco (NOV) and Schlumberger (SLB), Gardner Denver's multiple is too low.

Energy Stocks:
Transcanada (TRP): Enterprise Products Partners (EPD) is better.
Valero (VLO): Refining margins are killing the stock.
Transocean (RIG): He thinks the stock will go up when the GlobalSantaFe (GSF) merger is complete. Cramer also mentioned some Canadian Energy Trusts that he likes. The stocks are Canetic Resources (CNE), Pengrowth (PGH), Baytex (BTE), International PBX Ventures (PBX), Penn West Energy (PWE), and Advantage Energy (AAV).

Are You Diversified?:
Cramer recommended Caterpillar (CAT) to his first callers portfolio. He told his second caller to get rid of NYSE Euronext (NYX). Cramer told his third caller to hget rid of Pfizer (PFE).

Cramer spoke to the CEO of Genesis Lease (GLS) which Cramer recommended at $26. He said he was wrong to call the stock a buy then, but you should "back up the truck" now that it's at $22.

Finally, Cramer took three call in Sudden Death. He is unsure about Layne Christensen (LAYN), he likes Life Partners Holdings (LPHI) but is concerned about the large short interest, and thinks Danaher (DHR) is one of the best performing stocks in the S&P.

Labels: GDI, GM, Jim Cramer, JPM, Mad Money, Mad MOney Recap, NOV, SLB, TRP

Dow but not Out: JPMorgan Chase (NYSE: JPM - News), General Motors (NYSE: GM - News), Citigroup (NYSE: C - News), AIG (NYSE: AIG - News), Honeywell (NYSE: HON - News), DuPont (NYSE: DD - News) and Hewlett-Packard (NYSE: HPQ - News), AT&T (NYSE: T - News), Verizon (NYSE: VZ - News), Pfizer (NYSE: PFE - News) and Merck (NYSE: MRK - News)
After its mid-week drop, the Dow's rally on Thursday inspired Cramer to express confidence in the market and to repeat his prediction that the Dow will reach 14, 548 by the end of the year. He notes only four Dow stocks, JPM, GM, C and AIG are levered to current problems and only JPM and C are directly connected to mortgages. However, he commented HON, DD and HPQ have "beautiful" balance sheets and T, VZ, PFE and MRK will be able to survive the current market. Because of the strength of these stocks, the Dow wasn't crushed yesterday like it was "supposed to be," Cramer said.
The Windy City Merger: CME Group (NYSE: CME - News)
A good way to profit from the vicissitudes of the current market is to invest in CME, which Cramer recommends following its acquisition of the Chicago Board of Trade. Cramer likes the merger so much he thinks the Justice Department should never have allowed it to happen, since CME now has its "hands into everything" and can charge whatever it wants. While CME is trading at 30 x earnings, it is growing at a 20% clip this year, and its growth rate should reach 30% in 2008.
Sell Block: Buffalo Wild Wings (NasdaqGS: BWLD - News), General Cable (NYSE: BGC - News), Mastercard (NYSE: MA - News)
Since BWLD, BGC and MA got crushed after reporting better-than-expected quarters, Cramer explained "why bad things happen to good stocks." First, since all three had been rising rapidly, the bar was raised and "better-than-expected" just wasn't good enough for The Street. Second, there was a "hair" on each quarter, which is Wall Street jargon for a small flaw, or "hair" on a better-than-expected number. It was alleged that MA experienced domestic slowing, BWLD had slightly lower same-store sales and BGC had a downbeat outlook. However, Cramer said the main trick is knowing when to get rid of stock; "You can't count on me to tell you when to sell," he warned listeners, adding he can't always call a top. He said it is safe to sell the stocks now, since they are still high.
CEO Interview: Gregory Milzcik Barnes Group (NYSE: B - News)
Gregory Milzcik says his company is in the "sweet spot" of the current cycle; "We focus on difficult-to-manufacture parts but are also positioned great on high-volume, high-growth platforms, like that of the 787." He adds analysts are not really disappointed with the company, but want to see sales and margin growth, which Barnes Group can deliver. The company has expanded into Europe's "booming" market. Cramer commented; "Let the downgrades come, and then I would buy some. This stock's just way too cheap when it gets down to $20."
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Labels: AIG, B, BGC, BWLD, C, CME, DD, GM, HON, HPQ, Jim Cramer, JPM, MA, Mad Money, MRK, pfe, T, VZ

Lehman (NYSE: LEH - News), JP Morgan (NYSE: JPM - News) and Bear Stearns (NYSE: BSC - News): After Thursday's carnage, Cramer has put financials on probation, and outlined necessary factors that would allow these stocks to perform again. First, Wall Street should cut its estimates, second, there should be layoffs in mortgage and corporate bonds departments. Third, the companies have to keep better track of what they have been losing to sub-prime debt and hung bridge loans. Cramer would stay away from JPM because of its connection with corporate debt and would not touch any housing stocks.
Pepsi (NYSE: PEP - News), Kellog (NYSE: K - News), Bunge (NYSE: BG - News), Celgene (NasdaqGS: CELG - News), Schlumberger (NYSE: SLB - News): Cramer would go "bottom fishing" in soft goods, such as Pepsi, which is down and Kellogg, whose quarter was "thing of beauty." He also likes agriculture and healthcare, especially BG and Celgene. Since Exxon is not drilling enough oil, Cramer predicts SLB will be called upon to come to the rescue. He also reiterated his praise for the tech sector which is "hot" in late summer.
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Labels: BG, BSC, CELG, Jim Cramer, JPM, K, LEH, PEP, SLB, Stop Trading

Next Week's Game Plan: Coke (NYSE: KO - News), Intel (NasdaqGS: INTC - News), United Technologies (NYSE: UTX - News), Freeport McMoRan Copper & Gold (NYSE: FCX - News), Honeywell (NYSE: HON - News), Johnson Controls (NYSE: JCI - News), Caterpillar (NYSE: CAT - News), Schlumberger (NYSE: SLB - News), Merrill Lynch (NYSE: MER - News), Wells Fargo (NYSE: WFC - News), JPMorgan Chase (NYSE: JPM - News), Bank of America (NYSE: BAC - News) and Citigroup (NYSE: C - News)
Cramer expects better-than-expected earnings from the following companies, and would buy before their reports next week: KO, INTC, UTX, FCX, HON, JCI, CAT and SLB. Since banks are "on a mission to show that there is no slowdown" and are likely to raise their dividends and buy back stock, Cramer would buy MER, WFC, JPM, BAC and C prior to their earnings reports.
That 80s Show: Boeing (NYSE: BA - News), Caterpillar (NYSE: CAT - News), ConocoPhillips (NYSE: COP - News), Energizer (NYSE: ENR - News), Air Products & Chemicals (NYSE: APD - News), Apache (NYSE: APA - News), Terex (NYSE: TEX - News)
"I've discovered alchemy," declared Cramer, noting the six stocks (BA, CAT, COP, ENR, APD and APA) he has discussed this week in connection with his theory (that stocks at $80 go to $100 and then to $120) are up an average of 5.2%. On Friday, Cramer added TEX to the list, since it is around $80 and will benefit from the "wild bull market" of infrastructure and machinery. He doesn't regard CAT as a rival, since "Terex's bread and butter is in aerial work platforms" which are not produced by CAT. He is not worried about competition from Manitowoc in the crane business.
Incredibly Risky Play: GeoEye (NasdaqGM: GEOY - News)
Cramer recommended GEOY as an "incredibly risky play" which is not for IRA money, but could have a major upside. Although it is the biggest commerical satellite company, GEOY has yet to make a profit. However, Cramer thinks outsourcing demands and Google Earth might make this company profitable, not to mention its main competitor is not a publicly traded stock. According to Cramer, the stock could double on the successful commission of a new satellite. However, the date has been deferred once, and if the satellite does not go up when expected, GEOY "could get hammered." While he urges caution, Cramer says GEOY is a great speculative stock.
Mad Mail: Taser (NasdaqGS: TASR - News), Excel Maritime Carriers (NYSE: EXM - News)
Concerning Taser, Cramer says the shorts are "enfilading fire" and "the longs are winning." He changed his position on EXM, and regretted having been too bearish.

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Labels: BAC, C, CAT, FCX, HON, INTC, JCI, Jim Cramer, JPM, KO, Mad Money, MER, SLB, UTX, WFC

Six More Dow Stocks: International Business Machines (NYSE: IBM - News), Johnson & Johnson (NYSE: JNJ - News), J.P Morgan Chase (NYSE: JPM - News), McDonald's (NYSE: MCD - News), Merck Co. (NYSE: MRK - News), Microsoft (NasdaqGS: MSFT - News)
Cramer continued his series on Dow Stocks by admitting his target of $110 for IBM was too conservative, and given the company's great dividend and buyback, it should reach $114, but no higher. JNJ is a sell in spite of Warren Buffet's buying the stock. Cramer thinks it is staying at $63, and opines that maybe Warren Buffet liked the steady nature of the band-aid business, but adds "With so many other great names in the Dow, why back up the truck for band-aids?" Cramer called JPM's CEO Jamie Dimond a "great banker," but thinks he is going to be prevented from bringing out the best in JPM by the Fed; "Three more points for JPM, and then I'd declare victory." While MCD has a great international business, Cramer thinks it will peak 4 points from now at $55. Cramer says he was too conservative predicting MRK would go to $50, but at $53, he says the stock is "pretty much done for the year." On the other hand, he admits he was too bullish on MSFT, but is not changing his $35 target, since the company may underpromise and overdeliver.
Google (NasdaqGS: GOOG - News) and Amazon (NasdaqGS: AMZN - News)
Google has been stalled for a while, but Amazon has brought "in the jumper cables," says Cramer. AMZN's move from $39 to $69 makes GOOG look cheap in comparison, especially since Google has 63% sales growth and almost no competition while AMZN has 33% growth with competition from almost every retailer in America. Cramer sets the target for Google at $600, but admits he is being conservative.
Sell Block: CA Inc. (NYSE: CA - News), Analog Devices (NYSE: ADI - News)
Cramer declared a special "Crime and Punishment" edition of this week's Sell Block, inspired by the crime of his "hubris" (overweening pride) last week when he broke his own rule about avoiding tech until August. He now regrets having recommended CA which is down 7.4% since last Friday and ADI which he "missed by a mile."
Mad Mail: MEMC Electronic Materials (NYSE: WFR - News), Taser International Inc. (NasdaqGS: TASR - News), Rowan Companies Inc (NYSE: RDC - News), National Oilwell Varco (NYSE: NOV - News)
When a viewer asked how to play the shortage of polysilicon in Chinese Solar IPOs, Cramer said WFR is the obvious choice, but it missed the quarter and at $58, it's a "no-go." Cramer told another viewer to hold on to Taser, which he recommended ahead of the French election, for at least a few more points. Cramer says RDC has "too much actual drill for me" and says NOV is still "best in show."

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Labels: ADI, AMZN, CA, GOOG, IBM, Jim Cramer, JNJ, JPM, Mad Money, MCD, MRK, MSFT, NOV, RDC, TASR, WFR

Stocks snapped this week's rally, as a mixed batch of earnings reports led some traders to take profits after two weeks of gains in the Dow Jones industrials.
Investors pulled back after Yahoo Inc. posted a surprising 11 percent drop in its first-quarter profit. Also making investors shudder were disappointing results from International Business Machines Corp. and Motorola Inc.
JPMorgan Chase & Co. gave some support to the Dow after the bank reported a 55 percent jump in profits that far surpassed Wall Street's expectations. The 30 companies that make up the index -- nearly half of which report earnings this week -- have been mostly beating the Street's predictions.
Wall Street was rattled by a sharp drop in the dollar, which is now at 26-year lows against the British pound. The U.S. currency has been weakening because interest rates have remained steady since the summer, and because the U.S. economy is slowing. In midmorning trading, the Dow Jones industrial average fell 18.94, or 0.15 percent, to 12,754.10. The Dow has advanced in 12 of the past 13 sessions.
Broader stock indicators also fell. The Standard & Poor's 500 index was down 2.13, or 0.14 percent, at 1,469.35, and the Nasdaq composite index shed 11.72, or 0.47 percent, to 2,505.23.

Labels: Dow Jones, IBM, JPM, MOT, Nasdaq, YHOO

JPMorgan Chase (NYSE: JPM - News): 'I think that the company itself is really good. At $47, nice 9% pullback. Probably worth buying, but let me tell you something... It doesn't yield 3%... 'Bank of America (NYSE: BAC - News): 'I've got BAC that yields 4% ... This stock should pull back .... If it goes below $20, then you do a little buying. 'Jones Soda (NasdaqCM: JSDA): 'But JSDA, other than HANS, is the fastest grower out there. I'm doing a lot of work on JSDA... Do not lose sight of that!'Hansen Natural (NasdaqCM: HANS)Accuray (NasdaqGM: ARAY): 'I think you're fine.'Harsco (NYSE: HSC - News): 'I think that this is a quintessential great industrial management company ... that's the kind of stock to buy right here. HSC, only about $1 off its high, but notice how it's held up. It is not that linked to housing. It is mostly industrial equipment.'Cummins (NYSE: CMI - News)Parker-Hannifin (NYSE: PH - News)Caterpillar (NYSE: CAT - News)Terex (NYSE: TEX - News)Lamson & Sessions (NYSE: LMS - News): 'Remember, I felt that this company is a natural to be acquired. They are in talks ... I think this company is worth substantially higher than where it's selling ... I am not worried about the earnings, and the P/E is very low. In other words, continue to buy LMS... 'VeriFone (NYSE: PAY - News): ' I think that PAY - which is linked to retail - is a fabulous stock. I am surprised it's come down this much from its high. I actually want to load up the truck with PAY right here. That's too cheap!'Charter Communications (NasdaqGM: CHTR): 'Do not lose heart! This is a play off of what I regard as being the 'virtuous circle' of being able to refinance, now that rates have come down... CHTR is good ... I want you to buy it.'Comcast (NasdaqGS: CMCSA)Time Warner (NYSE: TWX - News)Allegheny Technologies (NYSE: ATI - News): 'Don't forget that you need ATI steel when you build an ethanol plant, and that stock's off nicely from its high. I'm pulling the trigger right here!'Disney (NYSE: DIS - News): 'DIS is doing very well, it's got superior management. It's pulled back $1.50. I'll pull the trigger on DIS.'
Bearish calls:
Six Flags (NYSE: SIX - News): 'is a speculative stock ... I did not put that in the same league as DIS... I will wait until we go to Six Flags, before I will make the determination.'
Bearish calls:
Valero Energy (NYSE: VLO - News): 'I am beginning to think that VLO has had its run. Sell, sell, sell!'
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Labels: ATI, BAC, CAT, CMI, DIS, HSC, Jim Cramer, JPM, LMS, PAY, PH, SIX, TEX, TWX, VLO

Bullish calls:
Covance (NYSE: CVD - News): 'This is one of those companies that is the arms provider to biotech and pharma... Yeah, they do the tests. You've got a two thumbs up, way up.'Continental Airlines (NYSE: CAL - News)Rite Aid (NYSE: RAD - News): ' ... an analyst downgraded RAD, and it sent the stock down 31 cents, where I want to back the truck up ... Mary Sammons runs RAD, and is going to be on the show when that deal closes, and that is going to be a phenomenal one!'International Flavors & Fragrances (NYSE: IFF - News)JPMorgan (NYSE: JPM - News): 'I am going to suggest that you buy JPM, because Jamie Dimond did a good call.'Capital One Financial (NYSE: COF - News): 'If you want a little risk, and big reward, you go with COF.'Level 3 Communications (NASDAQ: LVLT - News): 'I 'm reiterating my by for LVLT... If you want to be in fiber, you go into LVLT.'Best Buy (BBY): 'If you want to be in big-screen TVs, you go into BBY, and that's all there is to it.'AT&T (NYSE: T - News): 'I am so much a T man, so swap out of the Fair Point Commuications, and go into T.'Toyota Motor (NYSE: TM - News): 'I was a huge buyer of TM 10 points ago, for my charitable trust, and I'm reiterating my buy right here. I recommended TM, and it is only up a quick 15 points, and I'm not backing away, because they make good cars. 'Blockbuster (NYSE: BBI - News): 'This thing was downgraded by another analyst this week, and it was not even a glancing blow. It didn't even the guy, because the stock finished at or near its high. Why is that? Because the 'total access' program is working. He made us money - he's a guy we like. And BBI is a keeper.'Valero (NYSE: VLO - News): 'The refining game - if you want to get in that - I'm always going to send you to... VLO.'
Bearish calls:
JetBlue Airways (NASDAQ: JBLU - News): 'Very tough. After the close tonight, they announce two resignations, including a guy that seemed pretty important from the sales and marketing side. I want to see the smoke clear ... and then I still don't want to buy it.'Bare Escentuals (NASDAQ: BARE - News): 'I said sell that stock at $31-32. It's at $34-35. I don't regard that as being anything that you missed. And I suggested instead that you buy IFF at $42. It went to $49. I say no on your bear - Sell, sell, sell. 'Sky Financial (NASDAQ: SKYF - News): 'Ring the register, my friend! You're getting Huntington Bank - not one of my favorite banks, because that company's already been taken over. It is time to sell, sell, sell.'Western Refining (NYSE: WNR - News): 'I do not like the refining stocks this quarter; I think that you'll get hurt, but they represent some great value longer term ...- I am not going to pull the trigger just yet on any refining company... 'Electronic Arts (NASDAQ: ERTS - News): 'No, no! Everyone's all excited about ERTS ... They don't have that much ... I don't trust ERTS here. Mid-40's - only then, pull the trigger.'FairPoint Communications (NYSE: FRP - News): ' Oh, this is that spinoff, right? They split the company up? You know what? I know they've got that good yield - I am so much a T man, so swap out of the FRP, and go into T.'Wal-Mart: (NYSE: WMT - News): 'sell, sell, sell!'Walgreen (NYSE: WAG - News): 'Now, at $46, I'm not as strong on WAG.'Corning (NYSE: GLW - News): 'I'm stuck with GLW. I have said that it's okay, but it's flatlined right here at $19, in part, because there's a glut of big-screen TVs; in part, because my national fiber shortage hasn't really started yet.'
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Labels: BARE, BBI, CAL, COF, CVD, ERTS, FRP, GLW, IFF, JBLU, Jim Cramer, JPM, Mad Money, RAD, SKYF, T, TM, VLO, WMT, WNR

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