Jim Cramer's Mad Money Review

Despite the passage of federal bailout package, Jim Cramer told viewers of his "Mad Money" TV show that he did not trust this market.
He reminded investors to sell into any moments of strength and play defensively as the details of the bailout plan begin to play out.
Cramer then shifted his attention to Wachovia (WB), saying its shareholders have good reason for hope after some nifty behind-the-scene moves by CEO Bob Steel.
Cramer praised Steel for working out a deal with Wells Fargo (WFC).
He admitted he was wrong when he placed Steel on his "Wall of Shame" list of the worst CEOs on Monday. He said he did so because he was disheartened by the federal government's decision to sell Wachovia's assets to Citigroup (C) and the fact that Steel had not come forward to defend his position.
However, after today's announcement of a deal with Wells Fargo, Cramer said he had an entirely different view of Steel.
UPFilling the empty slot in the Wall of Shame, Cramer added Sen. Harry Reid (D., Nev.) for a comment he made Wednesday that a major insurance company was preparing for bankruptcy.
Cramer said that irresponsible comment caused the stocks of Prudential (PRU), MetLife (MET) and Hartford (HIG) to suffer double-digit percentage drops.
Cramer said Reid deserved to be on the Wall of Shame for adding fear to an already fearful market.
Cramer said he's evaluating the industrial stocks by two simple measures: their dividend yield and how much cash they have on the balance sheet. Earlier in the week, he recommended KBR (KBR), a company where two-fifths of its marketcap is cash.
Tonight he recommended two other companies that he says are approaching the "value" threshold. The first on his radar screen is steelmaker Nucor (NUE), with its 3.6% dividend yield. The company was downgraded today by an analyst at Merrill Lynch. With a share price below $30, Cramer said Nucor is solid value stock.
Cramer also recommended Freeport McMoran (FCX), a stock which he owns for his charitable trust, Action Alerts PLUS, as another company close to a value moniker. With a 4.4% dividend yield, Cramer said he's beginning to buy additional shares to reinforce his position for his trust.
Admittedly, Cramer said gold and steel prices continue to fall, but in the case of Freeport, the stock has fallen from a high of $127 to $44 today. With such a decline, Cramer believes the downside has to be minimal going forward.
Published By TheStreet.com

Labels: C, Citigroup Inc., FCX, Hartford, HIG, Jim Cramer, KBR, Mad Money, Mad MOney Recap, MET, MetLife, NUE, PRU, Prudential, Wachovia, WB, Wells Fargo, WFC

Buy Ralph Lauren (RL), Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"I like it because of the J.C. Penney (JCP) tie-in," Cramer said. He said today's move "seems like a bit of a short squeeze," he said, but "I think it can go higher from here."
Elsewhere in apparel, Cramer said that VF Corp. (VFC) "is the analogue of Ralph Lauren. ... If Ralph Lauren's good you don't leave this stock."
Cramer went on to praise management at Eaton (ETN). He said the company is "part of my new-tech world," and predicted it would hit a 52-week high. He said he also likes Emerson (EMR). "These companies are on fire," he said.
Of Nucor (NUE), Cramer said the company's secondary offering is an entry point. He advised more caution on Cleveland-Cliffs (CLF). "Let it cool off before you buy it here," he said.
Cramer was less bullish on AIG (AIG) and Wachovia (WB). "These are serial needers of capital," he said. He said firing AIG CEO Marty Sullivan would cause the stock to go up, and chastised Wachovia for its acquisition of Golden West. "This was one of the dumbest acquisitions ever and they're paying for it," he said.
"If they knew what they owned I would be more comfortable," Cramer said of AIG and Wachovia. "They're like Citigroup (C)." He said that when the companies claim to know what they have, "they're being wishful."
Published By TheStreet.com

Labels: AIG, C, CLF, EMR, ETN, JCP, Jim Cramer, NUE, RL, Stop Trading, VFC, WB

Take some profits in hot sectors, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.
"It's about time," Cramer said of today's market selloff. "Heaven love the rails," he said, "but they do not have to be up every day." He recommended ringing the register in groups that are "having parabolic moves." He also said he doesn't like tech at these levels.
Cramer said he does like some stocks here. He said Honeywell (HON) is a buy if the price comes down. He said the company "basically preannounced the other day, and it's not really doing anything."
Cramer said some steel companies will win on the earthquake in China. He said that he wants to be in on a secondary offering from Nucor (NUE). "Very rarely do I ever want to be in a secondary," he said. "Not this one. This one is a winner."
Of the larger commodity markets, Cramer said that stocks with oil exposure are "not expensive." He said that "people are not using $125 [a barrel for oil] in their numbers." He said that with that factor added in, many stocks should be priced higher.
Cramer also said he likes CSX (CSX) and Union Pacific (UNP), but recommended taking profits "just as a prudence method." He expressed concern that the American rail companies appear to be the only stocks reacting to the news of the China earthquake.
Cramer also praised oil and gas magnate T. Boone Pickens for being right about ethanol. Cramer said that when 3% of gasoline destroys 30% of America's food supply, it's "about as dumb a thing as I've ever heard.
"I'm the most rapacious capitalist that's ever lived," Cramer said, but "I still have some horse sense."
Published By TheStreet.com

Labels: CSX, HON, Jim Cramer, NUE, Stop Trading, UNP

Corning (NYSE: GLW - News): ' ... you should be buying Corning (NYSE: GLW - News), which was unceremoniously dumped after a good quarter.'Lundin Mining (AMEX: LMC - News): 'All mineral stocks are getting hammered here... every single one of them ... There was just a huge amount of takeovers in this industry. Now they're dying down... You accumulate LMC... We like the combination copper, the lead... We like their product portfolio ... We have been right to buy. It will be no different this time.'NYSE Euronext (NYSE: NYX - News): 'I have been wrong so far... I believe fundamentally in the story. I can't change my view, because the fundamentals have borne me out... I am sorry, and I too am in the house of pain. I still believe though.'Prudential Financial (NYSE: PRU - News): 'They knocked it down $3 bucks... There were some concentrated raids on all the insurers ... they've got a gigantic portfolio... PRU is a great company. And it will not founder on subprime... one of the few financials I want to own!'Honeywell (NYSE: HON - News): 'There's a guy who runs that company... his name is Dave Cote. That man inspires a tremendous amount of confidence ... He's a transforming manager. He's generating a huge amount of cash... His order book is full. And I want to buy that stock right here.'Companhia Vale do Rio Doce (NYSE: RIO - News): 'This is a company that has a hammerlock on all the nickel in the world! I would not give up on these guys... As a matter of fact, any weakness ... Stocks that are up huge are getting register rung. It's the summer. That's what happens every year.'BHP Billiton (NYSE: BHP - News)Apple (NasdaqGS: AAPL - News): 'I think the raids are over. I think it's ready to resume its climb. I am not backing away from AAPL at $135. Now, when it got back to $145, please, let's do some schnitzelling (i.e., sell some).'Reliance Steel (NYSE: RS - News): 'I have been recommending Reliance Steel, which had a better quarter (than Nucor.'Chordiant Software (NasdaqGM: CHRD - News): 'They just reported a great quarter yesterday. It was great ... Let's ride that one a little bit more.'
Bearish calls:
Syntax-Brillian (NasdaqGM: BRLC - News): 'No, no! Don't buy, don't buy. Keep looking ... you should be buying Corning.'Kroger (NYSE: KR - News): 'Safeway, Kroger... They've not been recording good quarters. They've been hurt by food inflation... If it lifts, sell, sell, sell... I would trim it back.'Nucor (NYSE: NUE - News): 'I cannot get behind NUE. There are too many flies in the steel story now, with the potential slowdown in commercial real estate, if we don't get a Fed rate cut. 'Great Lakes Dredge & Dock (NasdaqGM: GLDD - News): ' ... that's one I can't go back to. That was a trade.'
Published by SeekingAlpha

Labels: AAPL, BHP, CHRD, GLDD, GLW, HON, Jim Cramer, KR, Lightning Round, LMC, NUE, NYX, PRU, RIO, RS

Airgas (NYSE: ARG - News): 'They keep beating the numbers. It's had a couple of points pullback. You know what that means. C'mon. ('mon-back sound)... ARG is a winner here.'Akamai Technologies (NasdaqGS: AKAM): ' ... when we start doing digital video, I am going to gravitate, if not migrate, to AKAM. A very solid report out just today about how good they're doing. The stock closed up a little bit. Let's hope it comes down so we can buy some.'DivX (NasdaqGM: DIVX): ' ... if you're going to do digital video, you know we're going to do DIVX.'Vertex Pharmaceuticals (NasdaqGS: VRTX): 'I am always shocked that VRTX is still independent, given their strength in the hepatitis area. I've got to believe that someone takes them out eventually. In the meantime, it's doing really well. I want to stick with VRTX. I think that that is a buy, buy, buy. 'HealthExtras (NasdaqGS: HLEX): 'It's another network pharmacy cost-saving play.... That whole quotient ... Every one of those is going to do well, if you get the slowdown that I'm expecting...'MedcoHealth (NYSE: MHS - News)Express Scripts (NasdaqGS: ESRX)Terra Nitrogen (NYSE: TNH - News): 'You should keep thinking, and you should pull the trigger.' Mosaic (NYSE: MOS - News): 'Hey, how about MOS - which was the one that we chose - upgraded again today, which is just on fire.'Sociedad Quimica (NYSE: SQM - News): 'Don't forget the SQM - at a 52-week high. We have owned this fertilizer trade with the SQM.'M&F Worldwide (NYSE: MFW - News)American Ecology (NasdaqGM: ECOL): 'It's got a 3% yield. It's kind of stalled here. You know I do like the waste business. This is toxic waste. I'm not backing away.'Harris (NYSE: HRS - News): 'You know we're a big buyer of HRS. HRS is the ultimate high-def play .. It's up a little bit. I say stay long it. It's good. It's a low-multiple tech stock.'NYSE Euronext (NYSE: NYX - News): ' I feel that this stock - which is all the way back down to where I recommended it - is ready to be re-charged... I think NYX, the numbers are understated. I'm going back to NYX, and I am telling you to not be perturbed. I am telling you to buy. Buy, buy, buy!'Wheeling-Pittsburgh (NasdaqGM: WPSC): 'I recommended this stock literally right here, about two years ago. It's still sitting here. Every other steel company is going up.'Reliance Steel (NYSE: RS - News): 'I'm going to recommend RS for the takeover basis.'Nucor (NYSE: NUE - News): 'I'm going to give you NUE on the earnings basis.'
Bearish calls:
Sonic Solutions (NasdaqGS: SNIC): 'No... No, no.'CMGI (NasdaqGM: CMGI): 'I think we're in a shakeout market here, after this selloff... I think there's another day for it. Can we please wait, to let that stock go under $2, before we pull the trigger? Sell, sell, sell!'
Published by SeekingAlpha

Labels: AKAM, ARG, DIVX, HRS, Jim Cramer, Lightning Round, Mad Money, MFW, MHS, MOS, NUE, NYX, RS, SQM, TNH

Electronic Arts Inc. led the Standard & Poor's 500 Index higher in midday trading Tuesday after Barron's magazine said the recent launch of three video game consoles is sure to help the video game publisher's sales.
Barron's said the releases of PlayStation 3, Xbox 360 and Wii are good for Electronic Arts because the people who bought the consoles will buy new games.
Shares of Redwood City, Calif.-based Electronic Arts rose $2.06, or 4.1 percent, to $52.08 in midday trading on the Nasdaq.
The S&P 500 index was up 2.12, to 1,457.66 in midday trading.
Shares of Temple Inland Inc. rose after a Banc of America Securities analyst upgraded the stock, saying investors are revisiting how to value the Austin, Texas-based packaging maker.
Temple Inland gained $1.68, or 3.2 percent, to $54.84 on the New York Stock Exchange. The stock hit as high as $55.45, breezing past the previous 52-week high of $53.18.
Also among leaders was Polo Ralph Lauren Corp., a New York-based clothing marketer. Polo Ralph Lauren partnered with Kohl's Department Stores to market the Chaps Home collection a few days after announcing a deal with J.C. Penney Co. to create a new brand called American Living. Polo Ralph Lauren added $2.45, or 2.8 percent, to $88.24, after earlier hitting a new all-time high of $88.45.
Among laggards, Anadarko Petroleum Corp.'s stock fell after a Prudential Equity Group analyst lowered his price target on the company. He said the stock isn't cheap enough to compensate for the energy company's risk.
Anadarko's stock fell $1.16, or 2.8 percent, to $40.17 on the Big Board.
Shares of Baker Hughes Inc. continued their plunge for the third session after the Houston-based oil services provider reported disappointing fourth-quarter earnings.
The stock fell $1.40, or 2.2 percent, to $63.65.
Also among laggards was Nucor Corp., a Charlotte, N.C.-based steel producer. An industry report showed inventories aren't clearing as fast as investors hoped.
Nucor's stock fell 83 cents to $63.89 on the NYSE.
Published by AP

Labels: APC, BHI, ERTS, Hot Stocks, JCP, NUE, RL, TIN

Best Buy (NYSE: BBY - News), Nucor (NYSE: NUE - News), Costco (NASDAQ: COST - News), Wal-Mart (NYSE: WMT - News), Circuit City (NYSE: CC - News), Mastercard (NYSE: MA - News): Cramer called weak earnings reported by BBY and NUE "worrisome," but he did not feel that they were an indication of an overall economic decline, since he believes that the consumer is "on fire." He is not even concerned about Visa's comment on slower spending, and said, "There are lots of price wars going on" among retailers such as Costco and Wal-Mart. Cramer suggests paying attention to BBY rival Circuit City's report, since it fell on BBY's slow earnings, but even if Circuit City's results are sluggish, that just means that "may be time to own Mastercard instead."
Toll Brothers (NYSE: TOL - News): Cramer said that Robert Toll is "a terrific guy," but that the CEO was bullish at what turned out to be the top of his business and bearish on what seems to be the bottom, which indicates that housing will run longer.

Labels: BBY, CC, COST, Jim Cramer, Jim Cramer's Stop Trading, MA, NUE, TOL, WMT

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

Yahoo (NASDAQ: YHOO - News), Ingersoll-Rand (NYSE: IR - News), Freeport-McMoRan's (NYSE: FCX - News), Phelps Dodge (NYSE: PD - News), Lundin Mining (AMEX: LMC - News) - Cramer says that, in the 25 years he's been involved in the market, he has only seen one or two other periods when the conditions for investing have been so good, and was impressed that there wasn't a decline after the Democratic sweep. Cramer adds that this is the best earnings season in seven years, and added that even Yahoo and IR rose after reporting "stinker" quarters. Cramer singles out NYX as the "cheapest stock," and he is bullish. He discussed the "tremendous buzz" about FCX's acquisition of PD, which enabled FCX to get copper exposure and PD to get gold exposure. In addition, Lundin Mining is the next copper play, according to Cramer. Allergan (NYSE: AGN - News), Research In Motion (NASDAQ: RIMM - News), Sears Holdings (NASDAQ: SHLD - News) - Although there is a lot of negativity about drug stocks with the Democrats controlling Congress, Cramer thinks that Allergan "may be in the early stages of an incredible run and is finally starting to get the recognition it deserves." The company makes effective silicon breast implants and also has Botox and Juviderm, the "No. 1 method of getting rid of wrinkles." Even though the stock recently jumped $7, Cramer thinks it could rise an additional $12 from $119.55. On another note, Cramer thinks that RIMM is going up and that investors should take advantage of the $1 dip in Sears to pick up at least one share at $172. Oregon Steel (NYSE: OS - News) and Nucor (NYSE: NUE - News) - Cramer thinks that the media owes investors an apology for keeping them out of steel when their reports of a glut "clobbered" the stocks as people sold them off in panic. The reporters failed to mention that the companies were selling at five to six-times earnings. Now it is too late to buy OS which was a "huge stock," Cramer said, and that most steel companies are going to be taken over except for Nucor.Bulls:Mastercard (NYSE: MA - News): Cramer says this stock is not finished going up, and he would buy MA "right here, right now."Prudential (NYSE: PRU - News): This stock has a good dividend, says Cramer.AIG (NYSE: AIG - News): Cramer calls this stock "the cheapest in the group" and says it should go higher.IBM (NYSE: IBM - News):The current lack of momentum in this stock is a "mistake," says Cramer who predicts that it will go from $93.45 to $120, but would sell some at $100.Bears:Motorola (NYSE: MOT - News): This company missed its quarter twice, and Cramer does not feel comfortable recommending it.Alcoa (NYSE: AA - News):"The most poorly run major American company," Cramer said and suggested selling.Ford (NYSE: F - News): Although Cramer was bullish on Ford at $7, he doesn't like its balance sheet, and in spite of the fact that he had confidence in CEO Alan Mullaly, Cramer predicts that Ford will get "hammered" if it reports another lackluster quarter.

Labels: AGN, AIG, IBM, IR, Jim Cramer, LMC, MA, NUE, OS, PD, PRU, RIMM, SHLD, YHOO