Jim Cramer's Mad Money Review

He said that lender CIT (CIT) is "definitely negative" on GE's earnings report.
Cramer disclosed that he owns GE stock but still wants to try to make money off the company's quarter.
On Intel (INTC) and the rest of the tech sector, Cramer said that "People are saying, 'Oh [tech stocks are] not going down a lot, so maybe I'll recommend them.' You cannot buy tech in the month of April expecting that you can handle the next two quarters," he said. "Tech is just wrong here."
Cramer called Intel "dead money." However, he did note that "AMD (AMD) is so bad that if I were a customer of AMD I would be calling Intel and saying I need a backup supplier."
Tech is largely a play on GDP growth, which is wrong for this environment, Cramer said. "You can't hide in tech. You can hide in Procter (PG), you can hide in Coke (KO), you can hide in Pepsi (PEP), but you cannot hide in tech."
Cramer was also bearish on Google (GOOG). "I don't know, when you have Microsoft (MSFT) and Yahoo! (YHOO) and News Corp. (NWS) and they've all decided they want to end the dominance of Google." He also decried Google's "hiring binge," saying, "That's just not a business model. ... AMR (AMR) not being able to fly is probably hurting their hiring binge," he said. "That's Google's strategy right now. That's not how you make money."
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Labels: AMD, AMR, CIT, GOOG, INTC, Jim Cramer, KO, MSFT, NWS, PEP, PG, Stop Trading, YHOO

Stick with agriculture and recession stocks, Jim Cramer said on CNBC's "Stop Trading!" segment Friday.
"Mosaic (MOS) is terrific. ... I think Agrium (AGU) is a catch-up ... to Mosaic," Cramer said. "You're going to do better with that than ... betting against Procter (PG)."
More broadly, Cramer believes the market is frantic as shorts try to cover their bets on the bond insurers. "Today's a big short-squeeze day. 'Let's short squeeze Ambac (ABK) and MBIA (MBI).'"
In the financial sector, Cramer expects more take-unders like Bank of America's (BAC) purchase of Countrywide (CFC). He foresees Washington Mutual (WMon the auction block, adding that CEO "Kerry Killinger is doing his best to do a bad job. ... Washington Mutual at $15 is like Countrywide at $8."
Cramer encouraged investors to play conservatively. "I would be partial to Coke (KO)," he said, adding that he was encouraged that commodity prices are down for the soft-drink company. Pepsi (PEP) is another good pick, he added.
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Labels: ABK, AGU, BAC, CFC, Jim Cramer, KO, MBI, MOS, PEP, PG, Stop Trading, WM

The Dow closed up 51 points and the S&P 500 finished up 6 points. Crude oil is closing in on $100 as we near Thanksgiving. John Kilduff, an analyst at MF Global, joined the show to discuss his take on oil. He predicts the top on crude could be in area of $108 to $110. Adami favors Chevron (CVX), which he feels is cheaper then ExxonMobil (XOM). He advises looking at refiners like Tesoro (TSO) here. Finerman owns Tesoro and she is also looking at buying ConocoPhillips (COP).
Regional airlines are benefiting from the delays and congestion at larger airports. Airlines like Midwest (MEH) and Allegiant (ALGT) are benefiting from this trend. Adami says the way to play this trend is to buy the private jet makers like Textron (TXT), General Dynamics (GD), Embrear (ERJ) and Honeywell (HON).
For Defensive stocks Najarian likes Merck (MRK), Genentech (DNA) and Biogen (BIIB). However, Finerman would get defensive with names like Altria (MO) and Kraft (KFT). Adami also recommends Altria, Unilever (UL) and Procter & Gamble (PG).
Word on the Street
Target (TGT) reported a 4.4% fall in profits.
Whole Foods Market (WFMI) reported a decline in fourth-quarter profits, but sales top Wall Street estimates.
Google (GOOG) trades up 4% after Credit Suisse raised their price target to $900. Najarian believes names like Research In Motion (RIMM), Google and Apple (AAPL) are starting to show strength again. He would look to get back into these stocks around these levels. Adami prefers Microsoft (MSFT).
Najarian would keep an eye on ISIS Pharmaceuticals (ISIS) and Sangamo Biosciences (SGMO).
Pops & Drops
Pops - Barnes & Noble (BKS) traded up 13% after reporting higher internet sales.
Exxon (XOM) traded up 4% after UBS upgraded the stock.
Kraft (KFT) traded up 2%.
Utilities EFT (XLU) traded up 1%.
Drops - Office Depot (ODP) fell 7% after reporting a 9% decline in profits.
Echostar (DISH) fell 7%
Ericsson (ERIC) fell 12%
Hovnanian (HOV) fell 9%.
GameStop (GME) fell 4% after the video game maker missed analyst estimates.
Saks (SKS) fell 2% after missing estimates.
Final Trade
Macke likes the price action in Microsoft (MSFT).
Adami recommends Freeport McMorRan (FCX).
Finerman says to short the iShares Dow Jones US Real Estate ETF (IYR).
Najarian would purchase Pulte Homes (PHM) for a short term buy.

Labels: ALGT, BIIB, CNBC, CNBC's Fast Money, COP, CVX, DNA, erj, Fast Money, GD, HON, KFT, MEH, MRK, PG, TGT, TSO, TXT, ul, XOM

BE Aerospace (BEAV), Goodrich Corp (GR) and Boeing (BA): Cramer says the Bears are wrong about aerospace and while GR "reported a great number and it's a really, really good company," Cramer worries about downgrades from jittery analysts, especially since problems have been reported with GR's landing gear. He prefers BEAV, which reported a "beautiful quarter" and has "unbelievable growth." He also likes BA on the announcement of a buyback.
Procter & Gamble (PG), Colgate (CL): Cramer says CL has an advantage over PG with its exposure to Latin America with its emerging middle class. CL is the momentum choice since it was discovered that the Chinese were "poisoning a lot of their toothpaste," and Cramer predicts CL's numbers will be raised.
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Labels: BA, BEAV, CL, GR, Jim Cramer, PG, Stop Trading

Buy BE Aerospace (BEAV), Jim Cramer said Tuesday on CNBC's Stop Trading! segment.
Cramer cited Tuesday morning's strong earnings report from the airplane supplier and also noted apparent problems with Goodrich's (GR) landing gear. Scandinavia's SAS said earlier Tuesday it would stop flying Bombardier's Q400 airplane after three instances in which the wheels failed. Goodrich supplies the landing gear for those planes, Cramer said.
Cramer also urged investors to buy Colgate (CL) and sell Procter & Gamble (PG), because Colgate has more exposure to fast-growing Latin American economies.

Labels: BEAV, CL, GR, Jim Cramer, PG, Stop Trading

Bullish
Proctor and Gamble (PG), better play than Unilever in this sector.
ValueClick (VCLK), Cramer thinks that this stock is still a buy.
UPS (UPS), bullish on the stock over the long term despite the current slowdown in the economy.
Omniture (OMTR), Cramer is bullish on the stock, and thinks that it will get bought out in the next year.
Aecom (ACM), still a great infrastructure play and that it is still cheap.
KBR (KBR),
Foster Wheeler (FWLT),
Salesforce.com (CRM) - likes their product and their sales model
Oracle (ORCL).

Bearish
Taser (TASR) - it is time to cash out
Smith & Wesson (SWHC).

Labels: ACM, CRM, FWLT, Jim Cramer, KBR, Lightning Round, Mad Money Lightning Round, OMTR, ORCL, PG, VCLK

Technology
Stocks like Apple (AAPL) and Research In Motion (RIMM) are hitting new highs daily but the semiconductor stocks are not. Carter Worth, chief market technician at Oppenheimer found an incredible divergence with the semis declining by 30% against the S&P 500 tech stocks. Macke agrees and would play this divergence by going long Intel (INTC). Worth also noted that investment banks like Goldman Sachs (GS) were flying, but money central banks like Citigroup (C) were doing nothing.
Super Market
Firms like Coke (KO), Pepsi (PEP), Proctor & Gamble (PG) and Colgate (CL) will get to show investors how good business is. Macke thinks PG is doing the best and also favors Molson Coors (TAP) and Pepsi (PEP). Macke isn't positive on Clorox (CX).
Oil Trade
Oil rebounded back to over $80 on Tuesday and the Oil Services HOLDRs (OIH) followed the commodity to the upside. Seymour: play it by buying oil service companies with exposure to regions like Russia and the Caspian Sea, such as Halliburton (HAL) and Baker-Hughes (BHI). Najarian would avoid the Oil Services HOLDRs because it is over weighted with Schlumberger (SLB).
Word on the StreetMosaic (MOS) reported monster earnings on Tuesday and the stock soared. Najarian points out that there are buyers of the October $90 calls on Monsanto (MON) which operates in the same space as Mosaic.
SABMiller and Molson Coors (TAP) announced plans to combine U.S. operations in a new firm to be named MillerCoors. Macke suggests they combined so they can go after Anheuser-Busch (BUD), which the hidden winner is Altria (MO), which has a 28% stake in SABMiller. Seymour favors international beverage plays Companhia de Bebidas (ABV) and Fomento (FMX).
Alcoa (AA) falls short of Wall Street's estimates.
Macke warns investors to expect a lot of misses like the one on Tuesday from Childrens Place (PLCE).
Worth recommends shorting Nordstrom (JWN), Tiffany (TIF) and Coach (COH).
Pops & Drops
Pops- Yum! Brands (YUM) traded up 5%
ValueClick (VCLK) traded up 10%
Miramar Mining (MNG) popped 24% after Newmont Mining (NEM) bought the firm for $1.5 billion.
Altair Nanotechnologies (ALTI) exploded higher by 31% after the firm demonstrated its battery pack in an electric car.
California Pizza Kitchen (CPKI) traded up 5%.
Drops- Coach (COH) fell 3% off a bearish Bloomberg report.
Face2Face
Nokia (VCLK): Writer asked does it still have upside potential or should I cut my losses? Najarian: wait till the takeover of NAVTEQ (NVT) is digested, and then it will move higher.
Next writer made a good profit in XM Radio (XMSR), buying in at $8 and $9. Should they sell some XM and then buy some Sirius (SIRI)? Make says yes.
Final Trade
Macke recommends Johnson & Johnson (JNJ).
Worth: short Black & Decker (BDK).
Najarian: Cypress (CY).
Seymour: play international oil services with Integra Group.
Ned Riley, the CEO of Riley Asset Management says stay long PowerShares QQQ Trust (QQQQ).

Labels: AAPL, C, CL, CNBC, CX, Fast Money, Fast Money Recap, KO, PEP, PG, RIMM, TAP

Cramer started the Lightning Round by recommending that holders of Baidu.com (BIDU) and Focus Media (FMCN) take some profits off the table. The holders of these stocks should sell half their holdings.

Bullish:
Cisco (CSCO) is a better choice than Arris Group
Procter & Gamble (PG)
AK Steel (AKS): Cramer recommended owning AKS on the potential for a takeover.
Go with Wynn (WYNN) and Las Vegas Sands (LVS) instead
Republic Services (RSG): Likes it but would go with Waste Management (WMI) is the best-of-breed stock in this space.
Altria (MO): Stick with it and buy more if it goes below $65.
Intuitive Surgical (ISRG): "One of the great growers."
Freeport-McMoRan (FCX): Cramer expects FCX to go $120, but he wouldn't frown on investors taking profits.
Cramer likes Best Buy (BBY) or Lululemon (LULU) better.
Chipotle (CMG) instead of Buffalo Wild Wings
Garmin (GRMN): Cramer likes the stock, but it's up too much today.

Bearish:
Harman International (HAR): Wait until December to look at.
Arris Group (ARRS): Overpay
Global Payments (GPN): Cramer's not interested.
Melco (MPEL): Three boo's
E*Trade (ETFC): Cramer isn't bullish on the stock just yet. He said he doesn't think it goes below $9.
GigaMedia (GIGM): Cisco (CSCO) is the better play here also.
hhgregg Inc (HGG): No
Buffalo Wild Wings (BWLD): Cramer thinks you should get out of Buffalo Wild Wings

Labels: AKS, BBY, BIDU, CMG, CSCO, FCX, FMCN, GRMN, ISRG, Jim Cramer, Lightning Round, LULU, LVS, Mad Money, MO, PG, RSG, WYNN

Procter & Gamble (PG): Procter & Gamble is cheap to the mid-$70s. Stay in it.
Dominion (D): Cramer gives it the triple buy!
Omniture (OMTR): "Stock is going to $35. Do not sell."
Boeing (BA): Sotck goes to $120. Boeing "all aboard."
Ceragon Networks (CRNT): "Just go buy Cisco (CSCO)"
Intuitive Surgical (ISRG): Wait until you have $10,000 or more. Cramer endorses the stock.
Archer Daniels Midland (ADM): Buy Deere (DE), Monsanto (MON), and Bunge (BG) instead. "52 week high."
Seagate (STX): Cramer doesn't like the disk drive stocks, and thinks you should go with Intel (INTC) or Hewlett-Packard (HPQ).
Chevron (CVX): Cramer thinks you have to own the stock unless you own ExxonMobil (XOM) or ConocoPhillips (COP).

Labels: ADM, BG, COP, CRNT, CSCO, CVX, D, DE, HPQ, INTC, ISRG, Jim Cramer, Lightning Round, Mad Money, MON, OMTR, PG, STX, XOM

Playing it Safe with Procter & Gamble (NYSE: PG - News)
As interest rates go lower, dividends will rise in value, and Cramer recommends PG as a "money in the bank" dividend stock. While at first glance, few would be impressed by a $64 stock with a 2.2% yield, Cramer reminded viewers that PG was at $30 in 2000. Reinvesting PG's dividend is like having "compound interest" said Cramer and he lauds PG for its "mega buyback." He predicts PG will reach $90 and is a good way to "Fed-proof your portfolio."
How Much is that PetSmart in the Window? VCA Antech (NasdaqGS: WOOF - News), PetMed Express (NasdaqGS: PETS - News) and PetSmart (NasdaqGS: PETM - News)
The heated discussion over NFL star quarterback Michael Vick's upcoming trial shows "people won't stand for cruelty to animals," said Cramer who unveiled some of his pet picks and peeves. One pet peeve was WOOF's "piled-up debt," but he liked discount pet pharmacist PETS for its personalized care. However, his best pet pick was PETM, which is up $3 from where he recommended it in January. PETM is known for selling "high-class premium" items and has $245 million cash on hand. PETM will remain the victor as its main rival, Petco, will probably close stores after being taken over by a "debt-ridden" company.

Everybody out of the Poole: Bear Stearns (NYSE: BSC - News), Countrywide Financial (NYSE: CFC - News), Goldman Sachs (NYSE: GS - News)
Cramer defended his vigorous criticism of St. Louis Federal Reserve President William Poole, who said interest rates should be raised, not lowered. Cramer accused Poole of "single-handedly attempting to destroy" the market and said he should put in his resignation. Senator Kent Conrad (D, N.D), chairman of the Budget Committee, was Cramer's guest caller and said Poole's proposal was "reckless and irresponsible" and would cause a calamity. He added difficulties at BSC, CFC and GS speak for themselves. Conrad added Poole' s statements showed a "lack of confidence" in the market, and Cramer concluded the segment with his hope that " people on Wall Street are as considerate as those in the Senate."
Mad Mail: Altria (NYSE: MO - News), Melco PBL Entertainment (NasdaqGM: MPEL - News), Las Vegas Sands (NYSE: LVS - News) and Wynn Resorts (NasdaqGS: WYNN - News)
Cramer says there is "good news coming" at Altria with a rise of 5 points to the 70s but not the 80s, since it is a stock "everybody already owns" and has limited upside. Atlhough he liked the IPO, Cramer says MPEL is now worst of breed and prefers LVS or WYNN.
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Labels: BSC, CFC, GS, Jim Cramer, LVS, Mad Money, MO, MPEL, PETM, PETS, PG, WOOF, WYNN

Pepsi (NYSE: PEP - News), Procter & Gamble (NYSE: PG - News), Schering-Plough (NYSE: SGP - News) and Pfizer (NYSE: PFE - News): Cramer says the household goods sector is healthy given Pepsi's rise after Goldman Sach's downgrade. He also likes PG and SGP. He commented this sector did well during the 1990s' credit crisis which he compares to current subprime woes. Cramer would even think about Pfizer on the principle that "if anything good happens at Pfizer, you've got a good upside."

Labels: Jim Cramer, PEP, pfe, PG, SGP, Stop Trading

The Skinny on Kraft (NYSE: KFT - News) and Proctor and Gamble (NYSE: PG - News)
After Tuesday's dismal trading day, Cramer believes the Fed will be willing to accept a recession, anything that will beat inflation, "even if even if it means the electric bleachers for my hedge fund and trading fund friends." As expected, Cramer recommended defensive stocks, and especially KFT, which may sell "loser brands" such as Maxwell House, especially since Carl Icahn and Nelson Peltz have a stake in the company. He also thinks PG will jettison brands that aren't working to preserve its capital.
CEO Interview: Timothy Wallace, Trinity Industries (NYSE: TRN - News)
Timothy Wallce doesn't think TRN's steep 20% slide last month is an indication of a longer-term decline for the company, and comments Trinity purchased 20% equity in TRIP Rail Holdings. While Cramer thinks TRN may have a good long-term story, he would be careful since, "the numbers may be too high here."
Treehouse Foods Inc. (NYSE: THS - News) and B & G Foods Inc. (NYSE: BGS - News)
While Kraft and Proctor and Gamble are getting rid of "crummy" brands, THS and BGS are masters of acquiring tired names and giving them new life. Cramer described THS as a risky stock which has been on an acquisition spree, and owns household brands Santa Fe, Del Monte and Oxford. THS' profits have increased 42% year-over-year in the second quarter. B & G's buys neglected brands such as Ortega, Cream Of Wheat and Underwood, is a conservative investment which reported a 12.3% increase in net sales last quarter and is worth owning for the dividend, according to Cramer. He says both companies are "thrice-blessed" because they are recession-proof and consolidate their expenses to reduce raw costs; "We like the dividends, and we like the brands."
The Last Man Standing; The Travelers (NYSE: TRV - News)
In spite of the current environment, Cramer says money can be made from insurance companies which continually invest and are "gigantic cash machines." He would stick with TRV which is the "last man standing" and is ranked 89 in the Fortune 500. He predicts TRV will go higher on the current housing situation.
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Labels: BGS, Jim Cramer, KFT, Mad Money, PG, THS, TRN, TRV

Thornburg Mortgage (NYSE: TMA - News), Washington Mutual (NYSE: WM - News), Lehman Brothers (NYSE: LEH - News), KB Home (NYSE: KBH - News), Beazer Homes USA (NYSE: BZH - News), Procter & Gamble (NYSE: PG - News), Coca-Cola (NYSE: KO - News), and Colgate (NYSE: CL - News)
Cramer predicts around 7 million "teaser" mortgages are likely to be defaulted and recommends "staying defensive," by avoiding real estate and bank stocks such as TMA, WM, LEH, KBH and BZH and investing in soft goods such as PG, KO and CL. While the Fed thinks mortgage woes will pass, Cramer still believes the Fed should cut rates.
Schering-Plough (NYSE: SGP - News)
Cramer thinks SGP is an excellent stock for the current environment and notes sales are up 13% since last year. He adds the company is not leveged to mortgaes and he believes in Fred Hassan, who was one of Cramer's transformational CEOs. He would wait until buying SGP, and while the current economic climate is not good, "we have no control on what the Fed will do," Cramer said.
Vodafone (NYSE: VOD - News),Verizon Wireless (NYSE: VZ - News)
VOD is a good international play and the world's best wireless carrier. Cramer thinks VOD will raise more revenues than the competition, owns a "serious chunk" of VZ, is successful in emerging economies and has a strong dividend.
CEO Interview: Jack Cumming, Hologic (NasdaqGS: HOLX - News) with Cytyc (NasdaqGS: CYTC - News)
Jack Cumming talked about the upcoming merger with CYTC, which will mean $400 million to $50o million in EBITDA and nine top women's health products. Cumming added the company can afford the acquisition and there is no financial risk.

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Labels: BZH, CL, CYTC, HOLX, Jim Cramer, KBH, KO, LEH, Mad Money, PG, SGP, TMA, VOD, VZ, WM

Colgate-Palmolive (NYSE: CL - News), Coca-Cola (NYSE: KO - News), Procter & Gamble (NYSE: PG - News): Cramer would buy rather than sell defensive stocks such as CL, KO, and PG. He told investors not to hold their breath for a Fed rate cut. "I think the Federal Reserve has a game plan," he said, "and the plan is to wipe out anyone who speculated." Cramer predicts the Fed is expecting a recovery with the upcoming election.

Labels: CL, Jim Cramer, KO, PG, Stop Trading

Breaking Up is Good to Do: Citigroup (NYSE: C - News)
The best thing C could do, according to Cramer, other than ridding itself of "Clown Prince" [CEO Chuck Prince] is to split itself up; "I think the one-stop shop for everything financial doesn't work." Cramer predicts if C breaks up into five businesses, the stock will jump from from $54 to $63. However, since such a move is not definite, Cramer warns investors of the "calculated risk" involved in buying C.
CEO Interview, Mary Sammons of Rite Aid (NYSE: RAD - News)
Cramer observed the company is 50% up from last year, expects more upside on the close of its Eckerd deal, and says it is "striking distance" from Walgreen. When he asked Mary Sammons about the benefits of the acquisition, she replied, "We believe there are even greater margin and revenue opportunities not included in our forecast." On the subject of the company's debt, Sammons commented cash flow created by the purchase of new stores will help RAD balance its budget. Cramer is still bullish on RAD and predicts it will reach $8 or $9.
Sparkling Clean Ingredients: Colgate - Palmolive (NYSE: CL - News) and Procter and Gamble (NYSE: PG - News)
In Latin America, Chinese-produced toothpaste was found to have DEG, a chemical used in antifreeze which should not be consumed even in trace amounts, according to the FDA. This is good news for CL, which Cramer preferst to PG because CL has a larger international presence. In addition, Cramer comments CL is a "leaner, meaner company" which should grab substantial market share from "lumbering giant" PG.
Mad Mail: aQuantive (NasdaqGS: AQNT - News), Raser Technologies (NYSEArca: RZ), Corning (NYSE: GLW - News)
Cramer told a viewer he would sell AQNT since it has been taken over. Responding to another question, he said RZ is too speculative and he would buy GLW instead.
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Labels: AQNT, C, CL, GLW, Hot Stocks, Jim Cramer, Mad Money, PG, RAD, RZ

More Dow Picks: Pfizer (NYSE: PFE - News), Procter & Gamble (NYSE: PG - News), United Technologies (NYSE: UTX - News), Verizon (NYSE: VZ - News), Wal-Mart (NYSE: WMT - News), Walt Disney (NYSE: DIS - News)
Cramer says PFE is "stuck" and owning the stock is a bit like owning a bond with a tad more upside. He admits he was too bullish on PG when he predicted it could go to $67 on the weak dollar and organic growth. However, Cramer says he wasn't bullish enough on UTX which is doing well internationally and is in "hyper-drive." He predicts UTX is headed to $73. Cramer also admits he underestimated VZ's fiberoptics and its wireless, and he would buy it for its yield and growth in spite of its 14% rise. WMT should go to $52 but not higher, predicts Cramer, as long as CEO Lee Scott is in charge. While he likes DIS, he thinks its parks will be casualty to gas prices and the success of its Pirates of the Caribbean film is priced into the stock.
Call Me Darling (AMEX: DAR - News)
Cramer says Darling is "as speculative as it gets" with one business that transforms animal fats into oil and a restaurant business. DAR is "en fuego," but Cramer would wait for a big selloff before buying. After that, DAR needs more analysts covering it before it tops off, and Cramer predicts the stock will go "through the roof" when it moves into the renewable energy sector. Like Tyson, DAR could go into biodiesel, but it will get pummeled first, and when it does, Cramer would buy.
Game Plan for the Coming Week: Polo Ralph Lauren (NYSE: RL - News), Costco (NasdaqGS: COST - News), Sears (NasdaqGS: SHLD - News)
Cramer would stay away with tech, and would move into retail. He recalled RL got "creamed" after its last quarter, which was excellent, but which led to a selloff because of a negative perception about the company's guidance. Therefore, Cramer would buy half a position before RL reports and half after. While he praises COST as a "delivery machine" he believes the company will continue to be misunderstood, and would buy after its earnings report. Cramer suggests pickkng up SHLD if it gets pummeled, and if not, to wait for the next drop in the stock.
CEO Interview: Catherine Burzik, Kinetic Concepts (NYSE: KCI - News)
Catherine Burzik wanted to reassure viewers that KCI will not be hurt by competition from Smith & Nephew after its BlueSky Medical acquisition. "I'm not sure the analysts and the Street understand the market we are in here," she said. "This is a really large market ... and it is significantly unpenetrated. There's a really large opportunity." Burzik added that since Americans are getting "fatter by the day," there will be a great demand for KCI's therapeutic services. Cramer gives the company a triple buy.
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Labels: COST, DAR, DIS, Jim Cramer, KCI, Mad Money, pfe, PG, RL, SHLD, UTX, VZ, WMT

Watch TV, Make Money: Anheuser-Busch (NYSE: BUD - News), PepsiCo (NYSE: PEP - News), General Motors (NYSE: GM - News), Disney (NYSE: DIS - News), Procter & Gamble (NYSE: PG - News), Time Warner (NYSE: TWX - News), Garmin (NasdaqGS: GRMN), Diamond Foods (NasdaqGS: DMND)
While many people tune out commercials, Cramer has noticed that the Superbowl' s main advertisers have great long-term gains, especially the top three: BUD, PEP and GM. "Despite GM holding the group back, if you owned these stocks for the last 20 years, you'd be up 739% vs. the S&P 500, which has been up 487%," he said. In addition, Pepsi, Bud, DIS, PG and TWX saw an upsurge in their stocks 3 months after their Superbowl commercials appeared last year. However, Cramer warned investors to watch out for poseurs who buy expensive advertising time they can't afford, and urges doing homework on stocks before buying. Cramer prefers companies which grow consistently rather than GRMN, and he doesn't think DMND will reap much benefit from its ad, given that it is a small company, but he likes the fact that it is involved in the healthy food trend, and thinks it will go higher. Cramer's favorite Superbowl advertiser is BUD.
Business is Booming: Goldman Sachs (NYSE: GS - News), Legg Mason (NYSE: LM - News) and T. Rowe Price (NasdaqGS: TROW)
"Gaming the whims and needs of aging baby boomers represents the single greatest secular growth theme out there!" declares Cramer who believes that his generation is not only interested in having hard bodies and wrinkle-free skin, but is also "working longer, living longer and investing longer." One of the best ways to play boomer retirement is to benefit from the repositories of their money, says Cramer, who likes Goldman Sachs, but prefers pure asset managers such as LM and TROW. Of the two, Cramer prefers TROW because it puts more money into equities, whereas LM is "bond heavy."
CEO Interview: Roy Vallee, Avnet (NYSE: AVT - News)
Roy Vallee said that "a lot of hard work" went into Avnet's remarkable quarter, and when Cramer asked the CEO how the distributor had a stronger performance than its clients, the semiconductors, Vallee said that the company's broad base across various industries was responsible for Avnet's success, as well as its worldwide team effort. Cramer declared AVT's story "fabulous" and said that he should have included it on his list of tech stocks that are safe to own.
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Labels: AVT, BUD, DIS, DMND, GM, GRMN, GS, Hot Stocks, Jim Cramer, LM, Mad Money, PEP, PG, TROW, TWX

Rackable Systems (NASDAQ: RACK - News), Intel (NASDAQ: INTC - News), Hewlett-Packard (NYSE: HPQ - News), Microsoft (NASDAQ: MSFT - News), Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News)
Cramer says that investors should be selling tech because seasonality is working against the sector, and that RACK's problem has more to do with the time of year than its component shortage and competition. Concerning Intel, Cramer explains its new chip will not reach a 90% to 95% acceptance rate this year, and since gross margins will not rise until then, Intel "cannot be owned" right now. However, the problems with RACK and Intel do not alter Cramer's prediction that tech will outperform in 2007. Cramer would buy HPQ because it will benefit from Microsoft's Vista. Cramer would also pick up Cisco down at $26 or $25 because of the incredible ramp in cable; "If you have a product cycle, I think you can ride out the seasonable weakness," Cramer said. Apple transcends seasonality because it is a "secular growth story and and a product cycle story." He would take advantage of any decline to buy Apple.
JP Morgan (NYSE: JPM - News), Capital One Financial (NYSE: COF - News)
Cramer is bullish on JP Morgan because of its credit card growth and added that COF is one of the most hated stocks, noting that there is a tremendous January $75 put to buy COF. If the company reports a lackluster quarter, the puts will act as a trampoline. Cramer says that it is worth investing in airlines again, and would take profits and buy them again.
UPS (NYSE: UPS - News), Procter & Gamble (NYSE: PG - News), Colgate (NYSE: CL - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Oil Service HOLDRs (AMEX: OIH - News), Caremark (NYSE: CMX - News), Rite Aid (NYSE: RAD - News), Comcast (NASDAQ: CMCSA - News), Time Warner (NYSE: TWX - News)
Cramer is bullish on UPS and likes rails, which are a buy on any decline because the trucking sector is suffering. He added that Goldman Sach's upgrade of PG was worth noting and, if it weren't for a strike, the stock could reach $67 or $69. He attributes the success of PG and CL to investor's desire to look for other soft goods that are not dependent on corn prices. However, since cereal is only 3% to 4% corn, Cramer thinks selling Kellogg and General Mills is premature. Concerning oil, Cramer thinks that OIH has been a reliable barometer for oil prices and is heading toward a bottom, but he hesitates to recommend it because it is an "easily manipulated index." Cramer would ring the register on Caremark, and of all the drugstores, he would own only RAD. Finally, Cramer predicted that Comcast is "headed dramatically higher" and said that, at $22, Time Warner is undervalued.
Published by SeekingAlpha

Labels: AAPL, CL, CMCSA, CMX, COF, CSCO, GIS, HPQ, INTC, Jim Cramer, JPM, K, MSFT, OIH, PG, RACK, RAD, TWX, UPS

Summary: A jump in Kimberly-Clark Corp. (KMB) call options activity last month suggests investors expect higher stock prices ahead. At one point, B. Craig Hutson of bond research firm Gimme Credit notes, trading was about 20x normal volume. Kimberly-Clark bonds have underperformed since September on unconfirmed rumors of an LBO. Shares, meanwhile, are on fire, up 17% in the last six months and outperforming competitors Proctor & Gamble Co. (PG) and Clorox Company (CLX) despite the latter's better earnings performance. EV (enterprise value) to Ebitda (earnings before interest taxes and depreciation), a key LBO ratio, is still only about 10.5x -- PG's is 13.5 and CLX's is 12. Despite the company's size, Hutson says it could indeed be an LBO target. Other KMB pluses include huge globalization, a healthy cash-flow, a rich dividend, and room to streamline costs and boost revenues. Whether or not Kimberly becomes the target of an LBO (a 20% premium would put it at $41 billion -- the richest LBO ever), Hutson's analysis says the stock is cheap, assuming management can cut costs.
Published by Vito Racanelli

Labels: CLX, KMB, PG