Jim Cramer's Mad Money Review

Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
LSI Logic (NYSE:LSI - News). LSI's PowerRating is 7.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Vanda Pharmaceuticals (NasdaqGM:VNDA - News). VNDA's PowerRating is 8.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
United Industrial (NYSE:UIC - News) & Life Time Fitness (NYSE:LTM - News). UIC's PowerRating is 7, and LTM's PowerRating is 6.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Radvision (NasdaqGS:RVSN - News). RVSN's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Pfizer (NYSE:PFE - News). PFE's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Molina Healthcare (NYSE:MOH - News). MOH's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: Hot Stocks, LSI, LTM, MOH, pfe, RVSN, UIC, VNDA

On Speculation: Landec Corp (NasdaqGS: LNDC)Cramer announced that he was going to discuss speculative stocks on Fridays to give investors a weekend to cool off before pulling the trigger on potentially risky companies. Friday's speculative play was LNDC, a $12 stock that, according to Cramer, is in the hottest part of one of the hottest sectors, which is seed technology. LNDC's technology, "intellicoat," prevents seeds from germinating and absorbing water too early, and allows farmers to plant up to four weeks ahead of time. Cramer says, "if corn is the next oil, LNDC is the equivalent of a pressure pumper that gets more oil out of the well." He advised investors to use limit orders and not to buy an entire position at one time.The Week Ahead: Prudential (NYSE: PRU - News), Metlife (NYSE: MET - News), Aon Corp (NYSE: AOC - News)Cramer commented that he doesn't like the market here, that the financials are "acting terrible," the real estate market is a "total collapsed bubble," and that gold, "ever the enemy of paper" is going up and that gold investors should take profits. In this "glass is half-empty" environment, Cramer warns of selloffs in even the best companies, and suggests buying only half of the intended amount and making a move at the end of the week after the "selling squall." He likes Prudential, which reported a "beautiful quarter," AOC, and MET, which is best-of-breed and is the "big sleeper" of next week with 10% accelerated growth. Cramer would buy it before and after its earnings report and recommends patience if it doesn't rise immediately.Chipotle Mexican Grill (NYSE: CMG - News) and Denny's (NasdaqCM: DENN)Concerning CMG and DENN, Cramer says he doesn't mind fact that these companies have debt because their financials are still good, they can refinance at low rates thanks to the strong bond market, and can raise earnings per share by decreasing interest payments. He calls Denny's a "bad going to good" story, but would wait, and calls CMG a "good going to better" story which will have a "fantastic quarter." However, Cramer would hold off until CMG gets hit and would buy it low.Life Time Fitness (NYSE: LTM - News), Baidu.com (NasdaqGM: BIDU), Psychiatric Solutions (NasdaqGS: PSYS)LTM has "come in a tad" from where Cramer recommended it as a generational play, but he would still buy it as a long-term stock. He comments that BIDU has just a fraction of Google's value and better growth potential, but is in a precarious position because of China's Communist government. Since BIDU tends to trade wildly after it reports, he would use a downturn as an opportunity to buy it cheaply. Cramer notes that PSYS' management has been bullish ahead of the quarter, and would buy some stocks ahead of time, since PSYS has been acquiring companies, and Cramer expects a "big number bump" next week.Masco Corp. (NYSE: MAS - News), KBH Home (NYSE: KBH - News), Daktronics (NasdaqGS: DAKT), Reliance Steel (NYSE: RS - News)Cramer would ring the register on MAS before it reports, since it has had a big run. He predicts that KBH will see a huge selloff, and would sell it before it reports and buy the stock back lower. Cramer likes DAKT which is "remaking the billboard industry in its own digital image" and is building huge billboards at sports stadiums. He would use the 8% dip as an opportunity to get in before it reports. Cramer would take profits in RS because it has risen 8 points since he recommended it.Published By SeekingAlpha

Labels: AOC, BIDU, CMG, DAKT, DENN, Jim Cramer, KBH, LNDC, LTM, Mad Money, MAS, MET, PRU, PSYS, RS

Life Time Fitness (NYSE: LTM - News) and Town Sports (NasdaqGM: CLUB)
Since many people make New Year's resolutions to lose a few pounds, the time period between January and March is a good time to own fitness companies, says Cramer who chooses LTM as his "No. 1, best-of-breed, health club pick." He prefers LTM to CLUB, because it has better operating margins, higher revenue per customer and is not costly. In addition, Cramer comments that LTM has better and larger clubs and a superior business model. In spite of Prudential's negative rating, Cramer believes that LTM is a buy, regardless of the money the company will have to spend as it expands into wealthier areas, since the gym then will be able to charge higher prices.
Yo-Yo Diet Stocks: NutriSystem (NasdaqGS: NTRI) and Weight Watchers (NYSE: WTW - News)
Cramer commented that NTRI has gotten "crushed" because of its awful guidance; it was "flying high, then got pounded." He says that this stock is not safe to buyand is a "one-hit wonder," since its customers tend to abandon the product after 10 weeks, and everyone knows about the company. Cramer prefers WTW for growth and customer loyalty.
Mad Mail: Waste Services (NasdaqGM: WSII)
When asked how to buy WSII with a limit order, Cramer gave guidelines on how to respond to his picks, and discouraged viewers from buying stocks on the night he discusses them. Day one, an investor should do homework, day two, wait for other investors to give up and throw away the stock, and day three, do a mon' back (buy).
Published by SeekingAlpha

Labels: CLUB, Jim Cramer, LTM, Mad Money, NTRI, WSII, WTW