Jim Cramer's Mad Money Review

Just so you know, I just issued an alert. ... You should buy it here," he said of the cosponsors of Vytorin, which made headlines today after the Food and Drug Administration said it would issue early communication on the drug. He's reminded of Bausch and Lomb, Bristol-Myers Squibb (BMY) and other pharmaceutical companies that experienced exaggerated stock-price dives on bad news. Those situations, Cramer said, represented buying opportunities.
"The headline risk in drugs is also far worse," Cramer said. "This is what happens with drug stocks. Everyone panics at the same time. They get knocked all the way down."
"This is just unbelievable to me," Cramer added, saying that to cut shares of Schering-Plough so much, investors would have to believe the FDA was going to pull Vytorin.
Cramer continued, "I would buy Merck too. ... This is a classic headline overreaction."
Cramer concluded by saying he prefers Thornburg Mortgage (TMA) and Toll Brothers (TOL) to Fannie Mae (FNM) and Freddie Mac (FRE). "I just think that they're not investible. ... I didn't like them ... yesterday."
Published By TheStreet.com

Labels: BMY, FNM, FRE, Jim Cramer, Stop Trading, TMA, TOL

Wells Fargo (NYSE: WFC - News), Countrywide Financial's (NYSE: CFC - News), Washington Mutual (NYSE: WM - News), Bank of America (NYSE: BAC - News), Wachovia (NYSE: WB - News)
Thursday's dash for financials may indicate the sector will be one of the "long-term beneficiaries" of Bernanke's position, but Cramer does not think they are safe. He tacked a double sell on WM but thought BAC and WB could survive. However, he reserved the lion's share of his praise for WFC, and said, "It is the great speculative play that should prosper." He believes WFC will "own the mortgage market" and will win with investors because it offers a great dividend. Cramer would wait for WFC to drop to the $32 - $34 range.
Sell Block: VMware (NYSE: VMW - News), H&R Block (NYSE: HRB - News), Capital One Financial (NYSE: COF - News), Friedman Billings Ramsey Group (NYSE: FBR - News) Lamson & Sessions (NYSE: LMS - News), Six Flags (NYSE: SIX - News)
Cramer urged investors to "stay the course" and added "no one ever made a dime panicking." However, he added it isn't too late to sell minerals and he feels tigher consumer spending will put pressure on retail. Cramer would sell VMW after its highly successful IPO, and would stay away from HRB, COF and FBR. He would also sell LMS as well as SIX because of low attendance due to the weather. He concluded it is better to invest in long-term stocks rather than quick trades in the current environment.
KKR Financial (NYSE: KFN - News), Thornburg Mortgage (NYSE: TMA - News) and Reynolds American (NYSE: RAI - News)
Not all high dividends are good dividends, Cramer declared and used KFN and TMA as examples. He added high-dividend names KFN and TMA aren't worth the investment because as their stocks fall so will the yields. Cramer likes RAI which has a dividend of 5.5% and is a "smart play" in this environment because "nothing is more defensive than cigarettes."
Mad Mail: Bear Stearns (NYSE: BSC - News), Jones Soda (NasdaqCM: JSDA) and Google (NasdaqGS: GOOG - News)
Cramer would avoid BSC and JSDA whose climb was "how to make a million" in the market. He adds GOOG is safe and likes the tech sector for its pristine balance sheets and great products.
Published by SeekingAlpha

Labels: BAC, BSC, CFC, COF, FBR, GOOG, HRB, Jim Cramer, KFN, LMS, Mad Money, RAI, SIX, TMA, WB, WFC, WM, WMV

Thornburg Mortgage (NYSE: TMA - News): Good as well as bad mortgage companies are getting crushed by the shorts and the lenders which are particularly vulnerable are those which don't own a deposit-taking bank. Even the once-hardy TMA was down 38% after a series of downgrades. Cramer says the last things investors should do right now is to buy a house and wondered "who would want to lend to one of these companies?"

Labels: Jim Cramer, Stop Trading, TMA

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.

Published by SeekingAlpha

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

Nvidia (NasdaqGS: NVDA - News): 'They make the fastest gaming chips. They make the best ones. You buy some and then, if it comes in, you buy some more ... It's a growth stock in the right quarter, at the right time of the year ... NVDA is two thumbs up.'Dynegy (NYSE: DYN - News): 'I like DYN as an asset play, and if the earnings don't hit the number, because of some natural gas realization, come on ('mon-back sound)... step up to the plate...'China Telecom (NYSE: CHA - News)Baidu.com (NasdaqGS: BIDU - News)Nymex (NYSE: NMX - News): 'I believe someone will buy, but I would not recommend a stock just on its takeover ability alone... I would emphasize that, on its earnings - and the earnings here are unbelievable.'Teck Cominco (NYSE: TCK - News): 'People worry that China doesn't have enough demand... that maybe our economy is so slow that it's going to bring down the rest of the world. That's not true. TCK is still a buy. I like it very much.'Lockheed Martin (NYSE: LMT - News): 'I want to buy the defense stocks here. I think it's a terrific opportunity. Don't take your cue from the stocks. Take your cue from the companies, and LMT is doing incredibly well!'General Dynamics (NYSE: GD - News)Raytheon (NYSE: RTN - News)Northrop Grumman (NYSE: NOC - News)Ralcorp Holdings (NYSE: RAH - News): 'I've liked RAH before on the show. I like it now.'ENGlobal (AMEX: ENG - News): 'This is a company that does everything you need to do to produce refining petroleum. It's right. You're right. I'm staying with it. 'Thornburg Mortgage (NYSE: TMA - News): 'I just don't think they're as bad as the bears think.'Allergan (NYSE: AGN - News): ' ... for anything eye... I'm going to send you that way.'Bearish calls:Spectranetics (NasdaqGM: SPNC - News): ' ... don't know whether I want to buy it all the way up here... don't buy, don't buy... there are so many that are still down, but it's a good quality company.'Boston Scientific (NYSE: BSX - News)Perfect World (PWRD): 'I am just going to say forget about it... it's too darn hard.'RealNetworks (NasdaqGS: RNWK - News): 'Even thought the guys that run those companies throw really great cocktail parties, and probably wish that I was there, no thank you! (buzzer sounds)... 'Lowe's Companies (NYSE: LOW - News): 'You know, I can't recommend this sector right now - don't buy, don't buy - even though I know they have really easy comparisons. I can't go there. That sector's being too hurt. No to retail.'Advanced Medical Optics (NYSE: EYE - News)Best Buy (NYSE: BBY - News): 'I think there's $3 up, $3 down... which means to me - don't buy, don't buy - not worth playing... '
Published by SeekingAlpha

Labels: AGN, BIDU, CHA, DYN, ENG, GD, Jim Cramer, Lightning Round, LMT, NMX, NOC, NVDA, RAH, RTN, TCK, TMA

Cramer On Donald Trump: ' Donald Trump is not a guy who idly says look, it could all flip... He's got a huge amount invested in it. And I just thought that the interview was one of those interviews where you just said, did Donald Trump just say that the greatest market for real estate in the country could slip? Yes. And did he just say that this is the largest business and that we would get a recession if they don't fix it?Yes. He is a smart guy who is saying Bernanke, look. It is time to focus on it ... he doesn't ever want the government to help him. He's always been the guy who says, listen, the government can't do the job ... The truth is, he sees the larger picture and knows that the little guy's going to be out... I just thought it was a really great interview...'
Thornburg Mortgage Inc. (NYSE: TMA - News) and Countrywide Financial (NYSE: CFC - News): Cramer attributed the rise in the financial sector to a short squeeze which could also spread to mortgage companies. He said even if there were a hundred year storm in housing, TMA and CFC would be survivors, because they lend money to wealthy people who want mortgages for tax breaks rather than out of necessity. Concerning TMA, Cramer added, "Shorts have bet against this company before, and they've been taken to the one-hour Martinizing cleaners. It will happen again."
Published by SeekingAlpha

Labels: CFC, Jim Cramer, Stop Trading, TMA

Cramer's Index: MGIC Investment (NYSE: MTG - News), Countrywide Financial (NYSE: CFC - News), Bear Stearns (NYSE: BSC - News), KB Home (NYSE: KBH - News), Centex (NYSE: CTX - News), MBIA (NYSE: MBI - News), Blackstone (NYSE: BX - News), Thornburg Mortgage (NYSE: TMA - News), Beazer Homes (NYSE: BZH - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
While Cramer says he doesn't want to be a "buzz kill," he admits it is not possible to be really bullish as long as the housing crisis persists. Cramer formed his own "index" of the above-mentioned stocks, and said when the 12 companies stablilize and the Fed cuts interest rates, it will be time to let the bulls run once again. He made a personal appeal to Fed chairman Ben Bernanke; "Cut the rates. Take the pressure off. Many, many people could be about to lose their homes, because you're not listening..."
New Age Under Armour: Lululemon Athletica (LULU)
Cramer has discovered a new Under Armour, which like its predecessor, has experienced a massive initial bounce and is expected to keep growing. Yoga apparel company, LULU came public at $18 and jumped to $31 "in one of the worst tapes I've ever seen," said Cramer. However, he doesn't think this stock is a "one trick pony" but will keep going up as UA did, because LULU has been doubling stores year over year. Since the stock is speculative and has risen, Cramer recommends waiting at least 3 days or until the price drops before buying.
Beer is Near: Boston Beer (NYSE: SAM - News)
While in the current climate, investors are dubious of even some soft goods stocks, "People drink beer no matter what." Cramer likes SAM's 13% long-term growth rate and its smart move of acquiring a brewery from Diageo for $55 million rather than building a new one, which would have cost $200 million. Although he's a self-proclaimed "Bud man" Cramer gives SAM a triple buy, even near its 52-week high.
CFO Interview: Stephen Chazen, Occidental Petroleum (NYSE: OXY - News)
Chazen discussed production increases in Argentina and Peru; "California continues to be good for us." he added. Chazen dismissed worries about political risks, noting there are always political risks, and he remarked on the stability of OXY's chemical business. "All oil stocks are trading down in unison," Cramer said, and added now is the time to buy oil.
Published by SeekingAlpha

Labels: BSC, BX, BZH, C, CFC, CTX, GS, Jim Cramer, KBH, LULU, Mad Money, MBI, MTG, OXY, SAM, TMA, WM

Beazer (NYSE: BZH - News), Thornburg Mortgage (NYSE: TMA - News), Citigroup (NYSE: C - News), Countrywide (NYSE: CFC - News): Cramer says the major selloff in housing is not a reason to buy, and even if TMA is getting hammered more than it deserves, "who needs it?" Cramer might consider buying financials CFC and C if the Fed lowers interest rates, but given Ben Bernanke's inflation obsession, he wouldn't take the risk just yet.
MasterCard (NYSE: MA - News) and Macquarie Infrastructure (NYSE: MIC - News): Cramer was not so excited about buying MA now that it is $140 and has run, although he thinks the 11% selloff was "overdone." Cramer wouldn't touch MIC, a play on termite growth, because it is a "black box .... who knows what they have?"

Labels: BZH, CFC, Jim Cramer, MA, MIC, Stop Trading, TMA

American Home Mortgage (NYSE: AHM - News), Countrywide Financial (NYSE: CFC - News), Thornburg Mortgage (NYSE: TMA - News), Redwoods Trust (NYSE: RWT - News), Rait Financial Trust (NYSE: RAS - News) and NovaStar Financial (NYSE: NFI - News)
After the demise of AHM, Cramer would not recommend subprime mortgage lending companies, but he predicts CFC will survive as well as TMA, which "did a lot of loaning only to rich people." He sees hope for RWT because it is under 10%, and he warned any stock in the sector with a yield over 10% is not going to make it. RAS and NFI, which did a 4 -for-1 reverse split, are entirely at the mercy of the banks, and are therefore "totally uninvestible" because the Wells Fargos "have no interest in keeping you alive," Cramer commented. "They'd rather just take the loss." While admitting this inspires "tremendous panic" Cramer feels like sticking his neck out, because "It's first man out lives and I want our people to be first man out."
Published by SeekingAlpha

Labels: AHM, CFC, Jim Cramer, NFI, RAS, RWT, TMA, Wall Street Confidential

Thornburg Mortgage (NYSE: TMA - News): Cramer comments some of the so-called "dirty dozen" which have been targeted by the shorts "didn't fall off the turnip truck." He points to TMA's CEO, Garrett Thornburg, who says the company is demanding more detailed documentation on the so-called Alt-A loans, which often don't receive enough scrutiny and which the bears say are often vulnerable to defaults and delinquencies. "Holy Cow!" Cramer exclaimed, "This guy is actually a legitimate lender!" He also found hope in strong insider buying.
Dow Chemical (NYSE: DOW - News), Alcoa (NYSE: AA - News), CVRD (NYSE: RIO - News), BHP Billington (NYSE: BHP - News): Cramer noted DOW rose 6% on rumors of an acquisition, and he would buy it at $43. Cramer predicts AA "won't be independent at this time next year, says BHP "really ramping" and rising nickel is good news for RIO; "That stock is just going nuts!"

Labels: AA, BHP, DOW, Jim Cramer, Jim Cramer's Stop Trading, RIO, TMA