Jim Cramer's Mad Money Review

On Monday's show, Cramer said that he thinks retailers will have a turnaround. He believes that the good retailers can't fall any further, and that there will be 2 more rate cuts before the end of the year, which he thinks is bullish for retailers if you look back at their past performance after rate cuts. Cramer also said that the change in the weather will allow retailers to move some of their new winter products. His first two retail picks are Ralph Lauren (RL) and Nordstrom (JWN). Both of these stocks are down big from their recent highs, and he thinks that luxury goods retailers will be the first to turn around since people with more money to spend won't be as concerned with economical concerns, making both of these stocks bargains.Cramer then went to the phonelines. The first caller asked about J.C. Penney (JCP), and Cramer said that he likes the stock, but can't pull the trigger because he thinks it will be behind the luxury retailers when the sector turns around. The next caller asked about timing the purchase of retail stocks around Christmas. Cramer said that it is time to buy these two stocks now. The last caller asked about Build a Bear Workshop (BBW), and Cramer said he wants you to stay far away from that stock.Cramer then gave out his top retail pick, which was Target (TGT). He also noticed that stores are very full, thinks that they make shopping fun, that they are opening stores rapidly, and that the stock is cheap. But his primary reason is that the company is thinking about selling its credit card business, which could fetch up to $7 billion. Target could use this money for a large stock buyback.Cramer also mentioned that he had a good call to sell Smith and Wesson (SWHC) last week since they guided earnings lower today.After the lightning round, Cramer talked with Chris Matthews about the effect politics and the upcoming elections will have on the stock markets.

Mad Mail: The first email asked if Cramer would have other presidential candidates on the show, and Cramer said that he welcomes them all on the show. The next email asked about Sketchers (SKX), and Cramer said that he thinks they suffered from bad timing, and he thinks they have that straightened out now. Another email asked about Six Flags (SIX), and Cramer said they got hurt by bad weather and bad acquisitions. Lastly, an emailer asked about Hologic (HOLX), and Cramer said not to worry about the large short interest because it is being driven up by merger arbitrage players.

Sudden Death. Cramer is bullish on Manitowoc (MTW), bullish on Baidu.com (BIDU), bearish on Dow Chemical (DOW), and bullish on Adobe (ADBE).

Labels: BBW, JCP, Jim Cramer, JWN, Mad Money, Mad MOney Recap, RL, SIX, SKX, SWHC

Bullish calls:
Cemex (NYSE: CX - News): 'CX is one of the best stocks out there. ... CX - the Mexican cement company that's buying American companies... that one's for me. I'm giving it two thumbs up.'BEA Systems (NASDAQ: BEAS - News): 'They are saying this BEAS hasn't taken off since Cramer recommended it. So, therefore, it must have no mojo, and they could not be more wrong. If you look at the Oracle quarter, after that disappointment, you can see it cries out for an acquisition. It needs China play. You know what that spells: BEAS.'Cisco (NASDAQ: CSCO - News)Allegheny Technologies (NYSE: ATI - News): 'I say you should only playing with the house's money right now. This company produces stainless steel - but much more important - it makes titanium for BA. It makes airplane titanium, therefore, it is still too cheap. I bless it, anytime it's under $90.'Occidental Petroleum (NYSE: OXY - News): I think OXY's good. There's like a scale here, of which are the companies most levered to crude: The company that should go up or down with the crude is OXY. The least levered is XOM. I like to have a little bit of both.'Exxon Mobil (NYSE: XOM - News): 'I don't like to be unlevered like XOM, although I know it's going higher. 'Chevron (NYSE: CVX - News): 'So I settle on CVX, which is my fave, for those of you who want steady income. It yields 2.75%, and it just seems to always have a bid underneath, but it doesn't go down.'Devon Energy (NYSE: DVN - News): 'And, for those who want to roll the dice, I talk about the stock that got downgraded today, criminally and wrong, which is DVN. DVN's good.'
Bearish calls:
Smith & Wesson (NASDAQ: SWHC - News): 'I don't like the stock. SWHC was one we nailed in the $5-6 range. When it got to $14, we said we be hogs.'JDSU (NASDAQ: JDSU - News): 'JDSU - I have been over that quarter with a fine-tooth comb... I think that JDSU - and let me roll up in CIEN - these I call - these are 'too hard' because they're too likely to give you (an electric shock sound).'Ciena (NASDAQ: CIEN - News): 'I feel very strongly that anybody who calls me with the JDSU or the CIEN... I would tell you that they should buy CSCO.'Allied Waste (NYSE: AW - News): 'You know, I was going to recommend this stock. I feel like this is the best one of the waste removal companies, but here's your problem: It grows at 13%, and it sells at 24x earnings. On Jim Cramer's Mad Money, the upper limit is 26x. So, if I told you to buy this at $12, I'd have to tell you to ring the register at $14. So, the answer is 'don't buy, don't buy.'

Labels: ATI, AW, BEAS, CIEN, CSCO, CVX, CX, DVN, JDSU, Jim Cramer, Lightning Round, Mad Money, OXY, SWHC, XOM

Movin' on Up: Dolby (NYSE: DLB - News), Mastercard (NYSE: MA - News)
Cramer says that Dolby is still a buy even though it has risen substantially in the past month, and the stock reminds him of Mastercard which has kept going up. He comments that Dolby did not raise its estimates high enough and that it should fetch $1 per share in 2007. Dolby is "a great play on the flat-panel TV upgrade cycle, "and is starting to produce gaming consoles, notes Cramer who also likes that fact that 79% of its revenue comes from licensing which has big margins which should increase as it pursues the video market.
Trading Truce: eBay (NASDAQ: EBAY - News), Google (NASDAQ: GOOG - News), Yahoo (NASDAQ: YHOO - News), Baidu (NASDAQ: BIDU - News)
Although Cramer has been picking on eBay all summer, he finally declares that at $31.30 "it has become the ultimate value stock." First of all, he says that it is cheaper than it should be, it owns PayPal which web Goliath Google has not been successful in supplanting with its own service. Cramer admits that he was too critical of CEO Margaret Whitman, who has been negotiating advertising deals with Yahoo and Google, as well as an agreement with Baidu which will help distribute PayPal in China. In addition, eBay is flush with cash and is implementing buybacks, notes Cramer, who says that while he felt eBay was overpriced in the past, now "not only is it cheap, it's good."

Sell Block: Hershey (NYSE: HSY - News), Sirius Satellite Radio (NASDAQ: SIRI - News), Panera (NASDAQ: PNRA - News), XM Satellite Radio (NASDAQ: XMSR - News), Ford (NYSE: F - News), Smith & Wesson (NASDAQ: SWHC - News) and Bankrate (NASDAQ: RATE - News)
After hearing that Hershey lowered its earnings estimates, Cramer admits that he was wrong about the stock and suggested selling once it reaches $50 from$49.34. He also admitted a mistake in thinking that SIRI doesn't need to merge with XMSR. After SIRI lowered its sales outlook, Cramer thinks that the stock won't go anywhere "except slightly down unless it gets that merger with XM Radio." Yet another company, Panera, reduced its earnings estimates, blaming Midwestern stores. However, since only a small percentage of stores are affected, Cramer suspects that sluggish growth is the real reason for the reduction."It is running out of steam and I was wrong to recommend it. Get rid of it." Ford, which Cramer had recommended, is issuing convertible bonds with a 4% yield. "Now ... the common stock is plain wrong," Cramer said. "If you want to play Ford, then play it with the convertible bond for less-risky exposure." Finally, Cramer suggested taking some SWHC and RATE off the table.

CEO Interview: Sally Smith, Buffalo Wild Wings (NASDAQ: BWLD - News)
Cramer asked Sally Smith if BWLD could maintain its 11.8% company-owned sales growth, and she responded confidently that providing a good dining experience would encourage customers to come back. She added that the company could "absolutely" expand from 400 to 1,000 stores and noted that a new store was opened in Brooklyn, addressing a demand to go national: "We started getting letters from all over the country," she said. "They were craving the sauces and the wings and were wondering when we were going to their towns." Cramer commented on the restaurant chains "multiyear growth plan" and says that if it ever dips "back up the stock and buy some."
-Miriam Metzinger

Labels: BIDU, BWLD, DLB, EBAY, F, GOOG, HSY, Jim Cramer, MA, Mad Money, PNRA, RATE, SIRI, SWHC, XMSR, YHOO