Jim Cramer's Mad Money Review

On Tuesday's show, Cramer began by saying today is a perfect example of why you need to stay in the investing game. He said that Citigroup (C) went from a stock you must stay away from to a stock you must own after Abu Dhabi bought a large stake. It was also announced that they might buy into two more Dow stocks, so Cramer is looking for a way to profit from this trend. Cramer said focus on Halliburton (HAL) because it is trading at a large discount to other oil service stocks. He thinks that it could be worth $53 per share, and that these Arab states will invest in what they know, oil. One issue with the stock is that the company is hated by politicians in the U.S., but Cramer doesn't seem to think that Dubai or Abi Dhabi cares.
Then Cramer went to the phonelines. The first caller asked about opportunities in shale oil stocks, and Cramer recommended that people buy Suncor (SU) immediately. The next caller asked about the proposed takeover of BHP Billiton (BHP). Cramer is bullish on the stock and doesn't think it will be an issue.
Lighting Sector: One stock that Cramer likes is Acuity (AYI). It would be a good buyout target for Philips (PHG), and the stock didn't move up much on the news that Philips plans to buy several lighting companies to go with its buyout of Genlyte (GLYT). Also, this company will grow quickly with retro-fitting of old buildings that need to update their lighting. Another plus for AYI is it's a commerical building play, which is still going strong despite the problems in the residential housing market. Given the same valuation as Genlyte, it would be worth $57 per share.
Cramer came back fromt he lightning round and talked about a battle between two analysts over Starbucks (SBUX). FBR raised the stock to a buy, while CBIC lowered it to a sell on the same day. Cramer wanted to take a closer look at the stock, and after doing his homework, Cramer agreed with CBIC and is bearish on SBUX. He doesn't like the stock because the company has a lot of low priced quality competition, the stock has a contracting multiple, and growth is slowing. He thinks it would have to go well below 16 to be a buy.
The CEO of Aecom (ACM) was on the show, and announced quarterly earnings and guidance for 2008, and the stock dropped over 10% today. He said that the decreasing backlog is due to normal seasonal patterns in orders, and that they expect to continue their growth. He is bullish about the company and the stock. Cramer was disappointed and said that the company will have to show him that it is still on track next quarter before he will buy it again.

Labels: ACM, AYI, BHP, Citigroup Inc., CNBC, GLYT, HAL, Jim Cramer, Jim Cramer's Stop Trading, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, SBUX, SU

On Tuesday's show Cramer gave out 5 rules for investing in the stock market. His first rule is that there is a market for everything, including the stocks themselves. He said an example was how ethanol stocks were very hot about a year ago, and then several IPOs came on the market, so there was an oversupply of ethanol stocks on the market and the entire sector went down. So the ethanol business and news didn't matter because there were too many ethanol stocks available. Cramer said another example was his recommendation of Sealy (ZZ) at its IPO where he liked the stock, but didn't realize that there was a glut of IPOs, so the IPO market was saturated and the stock tanked.
Cramer took soma calls. The first caller asked how you can know whether an IPO is a good investment or not, and Cramer said that the key is the offering price for the shares. Another caller asked if there are any sectors that Wall Street overlooks, and Cramer said that you should look for a sector that used to have 10 analysts and only has 1 or 2 now and consider that sector for a turnaround. The next caller asked about the Vonage (VG) IPO, and Cramer said that this IPO was overhyped and that they should not have let the company sell stock to its customers.
Cramer's second rule is to know what you own. Sectors don't always matter since stocks within a sector can rally without others. Industries within a sector are the key to rallies, not the sector itself. An example occurred a couple years ago when he called for a tech rally and recommended Cisco (CSCO) and Microsoft (MSFT) because they were the big tech stocks, and he should have been thinking more specifically about the gadget industry within tech, since stocks like Apple (AAPL) were up big. He also said that he wants you to do at least 1 hour of homework each week for each stock you own. He thinks you should give your money to a mutual fund if you don't have enough time.
A caller asked why you don't see big rallies in the biotech sector, and Cramer explained that biotech stocks are moved by FDA rulings, not broader industry moves. The next caller asked how to find the pin action within a sector that Cramer talks about, and he used an example where Boeing (BA) reported a great quarter, and you should look to see who makes the components of the planes they make, since their sales will rise with Boeing's. The next caller asked how to predict performance if a sector is split, like Internet search with Yahoo! (YHOO) and Google (GOOG), and Cramer said that you need to look at management and other company specific factors in that case.
Cramer's third rule is that Latin America should always be treated as a shorter term trade since Wall Street has preconceived notions about the region that prevent it from being a long term investment, and they are the ones who move the market. You should always take profits as a Latin American stock moves up so you don't get caught when the big investors move out of their trade. A caller asked how important our economy is to Chinese stocks, and Cramer said that he doesn't like to recommend Chinese stocks because he doesn't trust their economy. The other caller asked about stocks like Wal-mart (WMT) and Starbucks (SBUX) that are expanding in China, and Cramer said that Starbucks could be the next Yum! Brands (YUM) which doubled their stock price after they doubled their stores in China.
Cramer's next rule is that being a lemming is ok, but he still wants you to go your homework, but if you agree with the moves that big investors are making, then it's good to go with the momentum.
His last rule was to not be afraid to say that something is too difficult to invest or trade on. His example is restaurant same store sales, which he has been crushed on in the past since there are so many factors that contribute to the number and the reaction. He said you aren't being weak, but smart by focusing your time someplace where you can make money.

Labels: AAPL, BA, China, CSCO, GOOG, IPO, Jim Cramer, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, MSFT, SBUX, VG, WMT, YHOO, YUM, ZZ

Chipotle (CMG) might be expensive, but it's a solid stock that has momentum, Jim Cramer said Thursday on CNBC's "Stop Trading!" segment.CKE Restaurants (CKR), the owner of Carl's Jr. and Hardee's, is cheaper, but as an investor, you want to buy a company that's expanding and putting up stores, Cramer said.Chipotle is a "concept" stock that reminds him of Starbucks (SBUX) six to eight years ago.He also recommended reading a Bank of America research report on Starbucks, in which the coffee-shop owner was downgraded to sell. He said he wished the report had been written earlier, but it was very well researched.

Labels: CKR, CMG, Jim Cramer, SBUX, Stop Trading

Labels: ACAD, CHL, CROX, GS, Jim Cramer, LULU, Mad Money, MCD, NSTK, NVDA, PCAR, SBUX, UA, WB, XING, YUM

Chesapeake Energy (NYSE: CHK - News): 'The whole complex of natural gas is so ridiculously too low. Just because we had a couple of months stored... CHK is a great driller. It's got great assets. I believe that natural gas will come back in vogue.'Wynn Resorts (NasdaqGS: WYNN - News): 'Look, Macau gambling is for real! I've been behind the Macau gambling... I still like Wynn.'Las Vegas Sands (NYSE: LVS - News)Apache (NYSE: APA - News): 'I like APA. It has oil, it has gas, and it's right. It's beaten down, and I would pull the trigger today! 'Schlumberger (NYSE: SLB - News): 'Do you know that Schlumberger is selling at 17x next year's earnings?... This is just a very inexpensive stock... how could I not recommend that unbelievable best-of-breed?...'Helix Energy (NYSE: HLX - News): ' ... as much as I like the HLX... If SLB's selling at 17x earnings, I mean, how could I not recommend that unbelievable best-of-breed?... 'Shaw Group (NYSE: SGR - News): ' ... don't hold me to it, but I think that's going to be good. And SGR is on a remarkable run!... Now, look, understand... We had that horrible bridge tragedy, but all of us know the infrastructure is woefully needing repair. It's SGR. The infrastructure bull market is probably the strongest market on earth!'Fluor (NYSE: FLR - News)McDermott (NYSE: MDR - News)DaimlerChrysler (NYSE: DCX - News)Boeing (NYSE: BA - News): ' ... but I am reiterating absolutely that Boeing is a buy, and the orders will trickle down. It's just that we don't have them right now.'Cisco (NasdaqGS: CSCO - News): ' ... reported a blowout quarter tonight - as we've been predicting endlessly, and finally it happened... Remember, he did announce the $5 billion buyback at the end of his last quarter... buy, buy, buy - CSCO, even above $31. 'Level 3 Communications (NasdaqGS: LVLT - News)Garmin (NasdaqGS: GRMN - News): ' ... conference call for GRMN was amazing. The guide up was huge... GRMN's a keeper! Stay with GRMN - buy, buy, buy! 'Crocs (NasdaqGS: CROX - News)Under Armour (NYSE: UA - News)Temple Inland (NYSE: TIN - News): ' ... Temple Inland remains my favorite, courtesy of Carl Icaan and his restructuring. '
Bearish calls:
Zebra Technologies (NasdaqGS: ZBRA - News): 'I personally think that the bar code business has peaked. It's just not exciting to me. I don't want to be in it. Don't buy, don't buy.'Haynes International (NasdaqGM: HAYN - News): '... didn't report a good quarter..., is the aerospace bull market caput?... I think that there's a big lag between when the (Boeing) Dreamliner gets built, and all of these stocks blow away their numbers... Now it's still painful ... I think this group is going to be on hold, and the better side is the defense stocks right now..'.Starbucks (NasdaqGS: SBUX - News): ' ... I want good, solid growth... and consistent growth... and SBUX can no longer give that to me. Don't buy, don't buy. At $23, I'll pull the trigger.'Juniper Networks (NasdaqGS: JNPR - News): 'I believe that CSCO is better than JNPR. I am telling you - sell, sell, sell - JNPR.'Weyerhauser (NYSE: WY - News): 'They can't deliver.'
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Labels: APA, BA, CHK, CROX, CSCO, DCX, FLR, GRMN, HLX, Jim Cramer, Lightning Round, LVLT, LVS, MDR, SBUX, SGR, SLB, TIN, UA, WYNN

Oceaneering International (NYSE: OII - News): 'If I had my druthers going into hurricane season though, it's going to be Oceaneering.'FMC Technologies (NYSE: FTI - News): 'They are oil service oil companies that work for technical expertise to make sure that oil comes out. They are exactly what you need when you need to find hard-to-get oil.'Superior Offshore (NasdaqGM: DEEP - News): 'DEEP can't rally... I can't back away, because the fundamentals are good ... it's too cheap to sell.'Baidu.com (NasdaqGS: BIDU - News): 'This company is selling much more cheaply than Google ... I know that I'm being a little piggish, but I do like it on this little pullback.'Deere (NYSE: DE - News)Bunge (NYSE: BG - News): ' ... just hit a new high today.'Potash (NYSE: POT - News): ' ... closing in on a new high.'Mosaic (NYSE: MOS - News)Monsanto (NYSE: MON - News): 'I'd pull the trigger on MON.'Intel (NasdaqGS: INTC - News): 'INTC's a bank... they've got a lot of cash.'Graco (NYSE: GGG - News): 'This is a nuts and bolts American company that is doing very well ... I've got to stick with it. That management is just superior... It is just the kind of great American company that doesn't get talked about enough.'Public Service Enterprise (NYSE: PEG - News): 'Don't like them? Go buy them! PEG... This is one of the best utilities... these ar ramping.'Marathon Oil (NYSE: MRO - News): 'MRO - It's nuts that it keeps going down! They're doing the right thing with that Western purchase... I would buy that stock right here!'Schering-Plough (NYSE: SGP - News): 'You know I like SGP.'AECOM Technology Corporation (NYSE: ACM - News): 'its a big play off that horrible tragedy of the bridge collapsing ... remember, these stocks are not going to go up again tomorrow... So, if you have a very quick gain, c'mon... '
Bearish calls:
Starbucks (NasdaqGS: SBUX - News): 'I do like the fact that SBUX put through that price increase, but their same-store sales are anemic... They don't have great growth, but they have a great growth multiple ... I'm putting SBUX in the 'don't buy' camp. But, if it goes to $23-24, it will finally be cheap, and then we'll do some buying.'Northwest Airlines (NYSE: NWA - News): 'No, no! Too much bad stuff going on! Sell, sell, sell! Let's play it easy...'Teva Pharmaceutical (NasdaqGS: TEVA - News): 'No, let's go proprietary.'
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Labels: ACM, BG, BIDU, DE, DEEP, FTI, GGG, INTC, Jim Cramer, Lightning Round, MON, MOS, MRO, OII, PEG, POT, SBUX, SGP

Bullish calls:
PPG Industries (NYSE: PPG - News): 'I want you to pull the trigger on PPG ... Buy one half the position. Hope the market brings it down if there's no takeover, and I think you will make money.'Millicom International Cellular (NasdaqGS: MICC - News): ' ... ahead of the quarter, maybe don't pull the trigger. If it comes in - that has fabulous growth, as does AMX. I endorse it.'America Movil (NYSE: AMX - News)Nova Chemicals (NYSE: NCX - News)Rhodia (NYSE: RHA - News): ' ... these companies are just in bull market mode... You are in a really smart company. They do a lot of things right.'Inverness Medical (AMEX: IMA - News): 'This is the fastest-growing diagnostic stock in the world... It's made a great acquisition of Biosite, which is another Cramer fave... I say you buy and stick with IMA!'Intuitive Surgical (NasdaqGS: ISRG - News): ' ISRG, is still going higher! That's how good the quarter was. There are too many people who want in. Why don't you wait until Wednesday before you do any schnitzelling (i.e., selling some).'General Cable (NYSE: BGC - News): ' ... I say, who needs to rebuild pipes? Who needs to rebuild electric lines? Who gets those orders? In most of America, it is BGC .... Now we've been up 30 points ... after the Chinese selloff ... It's still a buy!'
Bearish calls:
Gemstar (NasdaqGS: GMST - News): 'No, no. It's putting itself for sale... No. Sell, sell, sell. We had a very nice gain. Let's not overstay our welcome.'Starbucks (NasdaqGS: SBUX - News): ' I think that SBUX is trying to bottom ... If they can possibly just stabilize the same-store sales, you're talking about a company that finally is growing ... it's dead money. And I'm not going to encourage you to sell it anymore ... but, don't buy, don't buy... I don't know the rumors at all.'Sara Lee (NYSE: SLE - News): 'SLE is not that good of a company ... I want you to take off a quarter of that stock. It's just dead money.'GigaMedia (NasdaqGM: GIGM - News): 'I don't see anything that I want that I want to pull the trigger on GIGM. I'm not going to plant it though. I'm just going to say 'don't buy...'Rio Tinto (NYSE: RTP - News): 'It's had a big run. It's making a lot of acquisitions... It's been terrific, but let's let it come in a little.'
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Labels: AMX, BGC, GIGM, GMST, IMA, ISRG, Jim Cramer, Lightning Round, MICC, NCX, PPG, RHA, RTP, SBUX, SLE

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs August 250 Calls (NYSE:GS - News). GS' PowerRating is 6.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Mastercard Inc. July 150 Puts (NYSE:MA - News). MA's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
NYMEX Holdings Aug 145 Calls (NYSE:NMX - News). NMX's PowerRating is currently unavailable due to the stock not meeting certain parameters.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
iShares MSCI Emerging Markets Index Aug 120 Puts (AMEX:EEM - News). EEM's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Affymetrix (NasdaqGS:AFFX - News). AFFX's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
KB Home (NYSE:KBH - News). KBH's PowerRating is 5.
Starbucks Corp. (NasdaqGS:SBUX - News). SBUX's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: AFFX, EEM, GS, KBH, MA, NMX, SBUX, Stock Options

Starbucks (NasdaqGS: SBUX) and Whole Foods (NasdaqGS: WFMI): Cramer says these two companies are "dribbling and drabbling" their way downward, because they are both overvalued, have a slowing growth rate and an "incredible shrinking multiple." Cramer adds; "It is not anything they're doing wrong. It's just that they're not doing everything as right as they used to." He says the companies have lost the benefit of the doubt.
eBay(NasdaqGS: EBAY) Wal-Mart (NYSE: WMT - News): Cramer is bullish on eBay because of its "better than expected listings growth" and the Skype launch. The company also has enough cash to buy back stock and can be the next online leader after Amazon. Since Wal- Mart has made a deal with eBay to sell Skype gear in its store, WMT should enjoy a lift.

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Labels: EBAY, Jim Cramer, Jim Cramer's Stop Trading, SBUX, WFMI, WMT

Bullish calls:
Clean Harbors (NasdaqGS: CLHB): 'It's only a matter of time before we refocus again on clean water. I want you to hold on to ... but it won't be an immediate turn.'PG&E (NYSE: PCG - News): 'Utilities have done quite well.'Exelon (NYSE: EXC - News)Dynegy (NYSE: DYN - News)McDonald's (NYSE: MCD - News): ' Reported a monster good quarter. They guided things up ... even after this incredible run ... if this stock went to 60 bucks, it would not be expensive ... a quintessential stock to buy and put away. If I change my mind, you will know it.'Fastenal (NasdaqGS: FAST): 'Fastenal good, Sears great.'Sears Holdings (NasdaqGS: SHLD): 'Fastenal good, Sears great.'Home Depot (NYSE: HD - News)Lowe's (NYSE: LOW - News)AES (NYSE: AES - News): 'Have reinvented themselves. At 22 bucks, I still find it very cheap. I want to buy more.'Windstream (NYSE: WIN - News): 'Interesting conservative name ... 6% yield. I like that stock.'GigaMedia (NasdaqGM: GIGM): ' ... grows at 40%, has only a 20% multiple. I'll back it.'Boeing (NYSE: BA - News)Costco (NasdaqGS: COST)Paccar (NasdaqGS: PCAR): 'I love Paccar.'Cummins (NYSE: CMI - News): 'You know I like Cummins .'Tata Motors (NYSE: TTM - News): 'Let's buy it, let's buy it, aggressively.'Qualcomm (NasdaqGS: QCOM): 'Only semiconductor company that I am currently recommending on Mad Money.'
Bearish calls:
Starbucks (NasdaqGS: SBUX)

Labels: AES, BA, CLHB, CMI, COST, DYN, EXC, GIGM, HD, Jim Cramer, LOW, Mad Money Lightning Round, MCD, PCG, QCOM, SBUX, SHLD, TTM, WIN

Labels: BBY, CBH, COST, FD, JCP. CWTR, Jim Cramer, LOW, Mad Money, MW, SBUX, SHLD