Jim Cramer's Mad Money Review

Penny General: Family Dollar (NYSE: FDO - News), Wal-Mart (NYSE: WMT - News), Tribune (NYSE: TRB - News)
Cramer predicts Dollar General will be the first among recent private equity takeovers, including Tribune, which will fail. Since it became private, Dollar General has been biting at Wal-Mart's ankles, and WMT will probably respond by lowering prices to knock them out of business, according to Cramer. This will be bad for FDO as well, and Cramer predicts by the holiday season, Dollar General will be "Penny General." When asked if Dollar General made a mistake going private, Cramer responded that while he doesn't like to call people idiots anymore, "Dollar General made really bad judgements."

Published by SeekingAlpha

Labels: FDO, Jim Cramer, TRB, Wall Street Confidential, WMT

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:
Amazon.com (NasdaqGS:AMZN - News) beat earnings on Tuesday, reporting $0.19 EPS over an expected $0.16 EPS. AMZN's PowerRating is 8.
Boeing (NYSE:BA - News) should report $1.16 EPS on Wednesday before the market opens. BA's PowerRating is 4.
When Colgate-Palmolive (NYSE:CL - News) announces earnings early Wednesday morning, look for $0.83 EPS. CL's PowerRating is 5.
ConocoPhillips (NYSE:COP - News) is expected to announce $2.68 EPS on Wednesday morning before the market opens. COP's PowerRating is 7.
Analysts will be watching for Xerox (NYSE:XRX - News) to report $0.27 EPS tomorrow morning. XRX's PowerRating is 6.
When New York Times (NYSE:NYT - News) reports earnings early tomorrow morning, be watching for $0.31 EPS. NYT's PowerRating is 5.
Tribune (NYSE:TRB - News) should report $0.49 EPS tomorrow morning. TRB's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: AMZN, BA, CL, COP, Hot Stocks, NYT, TRB, XRX

How Much are Those Cubbies in the Window? Tribune (TRB)
Wednesday's Mad Money was broadcast from Indiana University as part of Cramer's Back to School tour. "The bears have gone into hibernation," he declared noting that they were held back by fear because they don't want to miss out on the money that will be made from Fed rate cuts or the resulting rallies if oil falls below $60. He welcomed Mark Cuban, owner of the Dallas Mavericks and IU alumnus, and asked if Cuban was looking at buying the Chicago Cubs from TRB. Cuban replied it was too early to tell, but indicated after baseball season and if given an offer, he would think it over. Cramer and Cuban locked horns briefly on the issue of buying stocks early, a strategy Cramer recommends, while Cuban urged, "Invest in equity you understand and you know better than anybody else. Improve your own value first." However, Cuban added it is advisable to buy a stock if one feels strongly about it, and sees a "great opportunity" in the market.
Gentlemen Start Your Cummins Engine (CMI)
The Hoosier stock which should make investors "truckloads of money" is CMI, according to Cramer, who regretted missing an opportunity to get behind the stock because he believed the money men rather than doing homework. Cramer called CMI the "perfect local company" for Indiana residents who, unlike the analysts, can go to Columbus, Indiana, and investigate the company. At $145, CMI isn't cheap, but students without cash should buy at least one share, said Cramer. CMI didn't suffer from the local slump in truck sales because of its international business, and Cramer thinks it could go "much, much higher."
Any Questons: Google (GOOG), Spartan Motors (SPAR), Rock-Tenn (RK), Plantronics (PLT)
During the Q & A session, a student asked Mark Cuban if he still thinks it was a mistake for Google to buy YouTube. Cuban answered that while YouTube has been sued for allegedly stealing content, Google can deal with the problem. When a student pitched SPAR, Cramer asked why he considered it "money in the bank" since SPAR is very cyclical and its end markets are sluggish. However, Cramer agreed with another student about RK after the student noted it is paying off debt, is buying back stock and has pricing power; Cramer added that he likes the short action in RK. Although Plantronics had a disappointing quarter, Cramer would stay with this "worldwide leader in headsets" because he "likes controversy."
Published by SeekingAlpha

Labels: CMI, GOOG, Hot Stocks, Jim Cramer, Mad Money, PLT, RK, SPAR, TRB

Tribune Co. has accepted a buyout offer from real estate investor Sam Zell in a deal valued at about $8.2 billion, the owner of the Chicago Tribune, Los Angeles Times, TV stations and the Chicago Cubs said Monday. Zell plans to invest $315 million in the deal for the Chicago-based media company and will eventually become chairman of its board when the deal is complete sometime in the fourth quarter. Tribune said the buyout will be conducted as a two-part deal. The first stage, expected to be completed in the second quarter, will involve a cash tender offer of $34 per share for 126 million shares, more than half of the outstanding Tribune shares. The remaining shares will be purchased later at the same $34 per share price. Tribune shares rose 71 cents, or 2.2 percent, to $32.82 in premarket trading.

Labels: Chicago Tribune, Sam Zell, TRB, Tribune