Jim Cramer's Mad Money Review

Erin Burnett started the show discussing the Fed's new U.S economy survey with Diana Olick and Steve Liesman, both of CNBC. Diana says that the standards are tighter on consumer loans as well as residential. Stave adds that barriers have been created by the tighter credit and lending institutions. Mortgage delinquencies have drastically increased in the past quarter. The pace of homebuilding is low and is not expected to pick back up until, at best, well in to 2008. The DOW, Nasdaq and S&P have all shown improvements today. Bonds and Oil are down, stocks are at a high for the day; says Bob Pisani. Freddie Mac (FRE) and CITI Group are today's leaders in the financial sector. Exxon Mobil, Sunoco and Valero Energy are among the top five stocks in the energy sector. Next, Steve Burton of ING Global Real Estate Fund says we like companies with a conservative business model. Also mall stocks in Europe, Asia and the U.S. are considered good investments. Simon Property (SPG) is his top pick of the day. The next topic was Saudi Arabian oil reserves. Countless terror attack attempts have been foiled; by over 200 arrests being made on terror plot suspects. The attempt to infiltrate the infrastructure of Saudi reserves could be quite an issue, being that Saudi Arabia operates over one quarter of the reserves in the world. Next topic was the Chinese economy. Zachary Karabell of Fred Alger Management says there is no greater sign of investor panic in China, adding that their economy is an engine for growth. Shanghai Composite is seeing increases in the triple digits today. Very strong earnings growth is expected for any Chinese investments. Erin than talked about how private equity markets such as the Middle East are looking east for investments. They said they are trying to align themselves with interest allocaters to make some of these investments work. Colony Capital is currently one of the largest private equity investors. They currently have $26B in assets. They own office, hospitality, gaming, residential, and retail properties globally. Colony closed its largest acquisition this month by taking over Station Casinos for $8.8 B. Stop Trading with Jim Cramer was next. He says that he will be buying rather than selling within the financial sector.

Labels: Citigroup Inc., CNBC, Erin Burnett, EXXON MOBIL, FRE, ING, Jim Cramer, Jim Cramer's Stop Trading, SPG, Street Signs, street signs recap

Rethinking Spartan Motors Spartan Motors (NasdaqGS: SPAR)
Although he initially rejected a pitch for Spartan Motors made by an IU Kelley School of Business student, Cramer is now bullish after investigating the stock further. Initially, he thought SPAR was mainly involved with recreational vehicles which would be out of favor with rising oil prices. However, Spartan also manufactures emergency vehicles, and since 55% of the nation's firetrucks need replacing, Spartan vehicles will be in demand. In addition, the armed forces require vehicles that will protect soldiers from roadside bombs. Spartan's military motor division recently scored the second largest contract in its history. The company's RV business is doing well, because baby boomers love RVs. While Spartan has a great story, Cramer cautions that this small-cap speculative stock may not be for everyone and to wait for a pullback before buying.
Sell Block: WCI Communities (NYSE: WCI - News), Simon Property Group (NYSE: SPG - News), Hologic (NasdaqGS: HOLX), Norfolk Southern (NYSE: NSC - News), Union Pacific (NYSE: UNP - News), Greenbrier Companies (NYSE: GBX - News), Coldwater Creek (NasdaqGS: CWTR), Gilead Sciences (NasdaqGS: GILD), Celgene (NasdaqGS: CELG), Altria (NYSE: MO - News), Kraft (NYSE: KFT - News) Take-Two Interactive (NasdaqGS: TTWO)
Cramer is "adamant that homebuilders can't be owned" and would sell WCI even though it hasn't moved, along with SPG, which has had a big increase. He would also sell HOLX which is "priced for perfection" but which has been the target of articles suggesting its products are less than perfect. Cramer likes rails as a "happy oligopoly, but given NSC's disappointing guidance, he would swap it for UNP on any strength. Cramer confessed "I deserve to be roasted over hot coals" for recommending GBX as a short-busting play when the stock has had a huge drop. Cramer wants to avoid getting burned again over CWTR and would sell even though it seems to be making a comeback. He thinks upgrades of semiconductors are "insane" and would get rid of the entire sector. Gilead, Cramer's "bio stock of the year" is now too expensive, and he would sell it or swap into Celgene. Now that Altria has spun off Kraft, Cramer would hold onto MO and sell KFT; "American cheese just doesn't turn it's customers into hopeless addicts."Finally, the fact that it is difficult to zero in on what is really wrong with TTWO is the best reason to sell it.
Mad Mail: Deere (NYSE: DE - News), Coca-Cola (NYSE: KO - News)
Cramer would back up the truck and buy DE because, for the long-term "we are in a secular bull market inf farming" and sees a strong comeback for Deere. Cramer also likes KO because if it's brand turns around in Japan, KO could rise from $50 to $55.

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Labels: CELG, CWTR, DE, GBX, GILD, HOLX, Jim Cramer, KFT, KO, Mad Money, MO, NSC, SPAR, SPG, UNP, WCI