Jim Cramer's Mad Money Review

On Tuesday's "Stop Trading!" segment on CNBC, Jim Cramer was too deflated by the Fed's quarter-point rate cut to offer up another "They know nothing!" tirade like the one he delivered Aug. 3.
"I'm no longer fiery. They had their chance. I wanted to do a wake-up call then, in August. ... That was when it still mattered," said Cramer, who had been hoping for a 50-basis-point cut. He believes the Fed's unwillingness to act "just made Paulson's job much harder."
"Everyone is in much more trouble," Cramer added. He chided the Fed for complacency. "These guys are academics. They're very far removed. ... They obviously don't get it. They want to take whatever pain we have. ... I admire them for their lack of panic, but the time to have done something was back in August."
Cramer did not share the Fed's outlook for the economy. "They're hopeful. ... very optimistic," he deadpanned. He had hoped the Fed would understand the severity of the situation, but he was wrong. "They flabbergast me. I'm like everybody else. ... 'You gotta be kidding me.'"
"You now just delayed the recovery," Cramer said. Cramer believes that there will now be large bailouts of companies hit hard by liquidity demands. "It's more likely that the companies that are trying to raise money won't get money," he said. He pointed to recent stumbling by Washington Mutual (WM ), Fannie Mae (FNM), Freddie Mac (FRE) and UBS (UBS), all of which were hurt enormously by the subprime lending crisis and the credit crunch. "I thought [the Fed] saw," Cramer said.
Cramer believes that if monetary policy were managed more effectively, the Fed could have made the right decision: "They are a cellar-dwelling group of Federal Reserves. ... If they were in the NFL, they'd be fired."
Investors' hope, for now, Cramer said, is to "buy companies that aren't levered to the United States."
Published By TheStreet.com

Labels: Fannie Mae, FNM, FRE, Freddie Mac, Jim Cramer, Stop Trading, UBS, Washington Mutual, WM

On Tuesday’s show, Cramer focused on green stocks that are good investments. Cramer reviewed his green picks from back in April to see how they had done since then.
Shaw Group (SGR): It is up 143% from about $30 to $74 since April.
Foster-Wheeler (FWLT): It is up 99% since April and had great earnings last quarter.
BorgWarner (BWA): It is up 38% since April, and Cramer thinks it will go higher because it has an increasing backlog.
OM Group (OMG): This is the only stock that is down since April, falling 5%. Cramer thinks the stock has started to bounce back from its lows already.
First Solar (FSLR): The stock has climbed 171% and Cramer is still bullish, but wants you to wait until after it reports earnings on Wednesday before buying more.
Fuel Tech (FTEK): This stock is up 35%, but guided down after reporting earnings Tuesday morning.
MEMC (WFR): This stock is up 20% since April and Cramer thinks the company will grow 52% over the next two years.
Tatra Tech (TTI): It is up 14% since April, and Cramer thinks it will keep going up slowly but steadily.
Cramer thinks every one of these stocks will go higher, and thinks that going green is good for business.
Cramer then went to the phone lines. The first caller asked about Zoltek (ZOLT), and Cramer said that although he recommended this stock a while ago he pulled out because he thought he was getting greedy. He now thinks this stock will keep going up. The second caller asked about BP (BP), and Cramer doesn’t think you can own this company because of its green initiatives. The next caller asked about SunPower (SPWR) and Cypress (CY), and Cramer said that Cypress is safer, but he likes both stocks.
The CEO of Wells Fargo (WFC) was on the show to talk about their alternative energy investments and positions, as well as the prospects. Cramer said this is the only banking stock he wants you to buy.
“Am I Diversified?”
The first email asked about UBS (UBS), and Cramer said that he has messed up with every financial pick he had made recently, and thinks you should wait until the stock hits $45 before you buy. The next email asked about Oceaneering International (OII), and Cramer said he didn't like the most recent earnings call. The next email asked if the recent investment in Tesoro (TSO) by Kirk Keorkian's was a bet that oil will drop, and Cramer said that could be right, but that TSO could drop if oil prices decline. The final email asked about lululemon (LULU), and Cramer said he wants nothing to do with the stock since it has gone up so much.

Labels: BP, BWA, CY, FSLR, FTEK, FWLT, Jim Cramer, Mad Money, OII, OMG, SGR, SPWR, TTI, UBS, WFR, ZOLT

Cramer talked about three stocks that could benefit this week from the weak dollar. Coca-Cola (KO), which Cramer expects to hit $60 next week. The stock closed at $57.80.
Next is United Technologies (UTX), which Cramer said should "handily" beat its numbers with its great overseas exposure. Lastly, there is Altria (MO), which he also owns for his Action Alerts PLUS and which he believes is still the cheapest stock on the Dow Jones Industrial Average. Cramer also said that Citigroup (C) CEO Chuck Prince could be out of his position next week. Market players should consider getting into Citigroup by Friday.
BEA Systems (BEAS) got a massive takeover bid from Oracle (ORCL), something Cramer said he's been predicting would happen for a while. Activist investor Carl Icahn told Cramer that he was "right on" with his predictions. Icahn also said he feels Motorola (MOT) has "great value" and should be split up.
UBS (UBS) - Cramer told viewers that when a stock reports bad news and still goes higher, it's telling people it has bottomed and is ready to go much higher. He said that the bad news had been priced in the stock and now it is ready to go higher.
Tutogen Medical (TTG). On speculation Friday, Cramer said that although the stock is less than $1 away from its 52-week high, it looks like Tutogen could be headed up on deals with other companies. Cramer likes the stock, because it's likely it will get a bid from Zimmer Holdings (ZMH).
Cramer welcomed Chicago Bear linebacker Hunter Hillenmeyer on his show. When Hillenmeyer asked Cramer about Las Vegas Sands (LVS), Cramer pointed out the management there is "extraordinary." However, he believes Wynn (WYNN) is running the best casino in Macau. Cramer advised taking a little off the table. Next, he suggested Hillenmeyer consider selling JetBlue (JBLU) on Monday and buying more NYSE (NYX), which Cramer owns for his charitable trust, below $80

Labels: BEAS, Jim Cramer, KO, Mad Money, Mad MOney Recap, MO, ORCL, UBS, UTX

Stocks pared most of their early losses Wednesday as investors juggled uncertainty about the health of the economy with a renewed sense that Wall Street has skirted the worst of a widespread credit squeeze.
A reading on the nation's service economy, whose industries range from banking to retail and travel and account for 80 percent of U.S. economic activity, came in as expected and gave investors little reason to rally on hopes of an interest rate cut. But it also appeared to quiet some concerns about a sharp economic slowdown.
The Institute for Supply Management report showed the service sector expanded at a slower pace in September than in August. The trade group's non-manufacturing index fell to 54.8 from 55.8 in August as expected; the index is now at its lowest point since March. A reading above 50 indicates economic expansion, while a figure below 50 signals contraction.
Comments from former Federal Reserve Chairman Alan Greenspan that the "worst is over" in the credit turmoil that swept global markets in recent months appeared to give a lift to investor sentiment. His comments followed a similar assesment from Citigroup Inc. on Monday.
Wall Street appears to be taking many economic readings in stride, perhaps expecting some slowdown before the Fed's rate cut is reflected in economic data. Often, such cuts can take more than a year to fully work themselves into the economy.
Source: Tim Paradis, AP Business Writer

Labels: Alan Greenspan, C, DB, Federal Reserve, UBS

An index that forecasts near-term home sales fell in August to a record low as would-be homebuyers had difficulty getting mortgages. Economists said the housing market's woes show no sign of improving soon.
The National Association of Realtors said Tuesday its seasonally adjusted index of pending sales for existing homes fell 6.5 percent from July and 21.5 percent from a year ago.
The pending home sales index has done a farily good job of predicting sales levels over the following two months said Joshua Shapiro, chief U.S. economist with MFR Inc. in New York.
Shapiro and other analysts expect prices to fall further before home sales rebound. Developers are already making big price cuts to move unsold new homes, but existing homeowners are more reluctant to do so. "We haven't reached bottom yet," Shapiro said.
August's reading of 85.5 was below analysts' expectations and the lowest ever for the index, which started in January 2001. An index reading of 100 is equal to the average level of sales activity in 2001.
With defaults rising among borrowers with weak credit, lenders in August backed off from all but the safest mortgages.
Source: Alan Zibel, AP Business Writer

Labels: BAC, C, CFC, FMT, FNM, FRE, Home Sales, Housing Stocks, IMB, LEND, UBS, WFC, WM

U.S. stock futures fluctuated Monday, paring earlier gains after Citigroup Inc. forecast a steep decline in third-quarter profit.
Citigroup estimated earnings will decline 60 percent from a year ago due to turmoil in the mortgage-backed securities and credit markets. In a statement, Chairman and Chief Executive Charles Prince called the expected results "a clear disappointment."
Investors also awaited key data on the health of the manufacturing sector. The Institute for Supply Management is expected to report that manufacturing activity grew at roughly the same rate in September as in August, according to economists surveyed by Thomson Financial. Later in the week, investors will watch for readings on the health of the service sector and employment.
Dow Jones industrial average futures for December rose 6, or 0.04 percent, to 14,000. Standard & Poor's 500 futures rose 1.20, or 0.08 percent, to 1,539.30. Nasdaq 100 index futures were unchanged at 2,114.00.
European stock markets were narrowly mixed after Citigroup's profit warning compounded bad news from UBS AG. The largest Swiss bank said Monday it expects a pretax loss of up to $690 million in the third quarter, due mainly to writedowns related to deteriorating conditions in the U.S. subprime mortgage market. UBS said the loss will result in the elimination of 1,500 jobs from the bank's work force of 80,000 by year end.
Credit Suisse Group followed the UBS statement with its own, saying that it expects to report a third-quarter profit of about $860 million despite the quarter's stormy conditions.
In other corporate news, drug store chain Walgreen Co. reported fiscal fourth-quarter profit fell 4 percent on lower reimbursements for some generic drugs and higher store and labor costs.
Meanwhile, the U.S. dollar was mixed against major currencies but hovered near its low against the euro, which bought a record $1.4283 in trading overnight. Oil prices slipped in electronic pre-opening trading on the New York Mercantile Exchange, while gold prices rose. A barrel of light, sweet crude fell 29 cents to $81.37. An ounce of gold added 90 cents to $750.90.
Source: Lauren Villagran, AP Business Writer

Labels: C, CS, Dow Jones, Nasdaq, UBS, WAG

Bullish calls:
Honeywell (NYSE: HON - News): [CEO Dave Cote} '... is just the master of Honeywell. He's buying back stock hand over fist. He's doing a great job. ... Honeywell is absolutely a Triple Buy.'UBS (NYSE: UBS - News): 'Has been spindled, mutilated, crushed, whipped, and you know what? It's a great franchise, and it's going to come back. ... The stock is way, way off its 52-week high. ... Let's pull the trigger if we can around here and buy some UBS. ... It's going to start rallying.'Caterpillar (NYSE: CAT - News): ' ... is now down ... 16 straight points.'The Travelers (NYSE: TRV - News): 'I've got to send you to Travelers. I know that they've got great cash flow, and they take advantage of the absolute chaos.'Ingersoll-Rand (NYSE: IR - News): 'Warren Buffet has been buying this stock almost as aggressively as the company has itself ... is a buy.'Ametek (NYSE: AME - News): 'Precision instruments is a good business. ... I like Ametek.'American International Group (NYSE: AIG - News) ' I think that AIG may be a better bet now that the Fed has blinked.'Goodyear Tire (NYSE: GT - News): 'They did the restructuring, and the stock has been knocked down like every industrial company has ... I think you've got to stick with Goodyear.'US Bancorp (NYSE: USB - News): 'I think Warren Buffet has just bought a ton of USB. Very little exposure to the mortgage market. ... US Bankcorp is fine with me. I would stick with US Bancorp.'
Bearish calls:
Dynamic Materials (NasdaqGS: BOOM - News): 'It has been a stalled stock. Metal-working, welding -- you need a stronger economy for it. ... Don'tBuy Don'tBuy. I say be careful.'Life Partners (NasdaqGM: LPHI - News): 'I frankly don't understand what part of the life insurance business they're really in. ... That's a hard business to understand.'
Published by SeekingAlpha

Labels: AIG, AME, BOOM, CAT, GT, HON, IR, Jim Cramer, Lightning Round, LPHI, TRV, UBS, USB