Jim Cramer's Mad Money Review

Exxon (XOM), Conco-Phillips (COP), Schlumberger (SLB), Ultra Petroleum (UPL), Apache (APA), Anadarko (APC), XTO Energy (XTO), Arch Coal (ACI), Peabody Energy (BTU), First Solar (FSLR), Applied Materials (AMAT), MEMC Electronics (WFR), Mosaic (MOS), Deere (DE), CSX (CSX), Chicago Bridge and Iron (CBI), Jacobs Engineering (JEC), Shaw Group (SGR)
Contrary to popular belief, retail did not cause the rally in the Dow and the Nasdaq, but the culprit was oil, which is the umbrella that makes everything work. Not only did oil stocks like XOM, COP and SLB do well, but Cramer says oil will fuel other stocks the energy sector such as UPL, APA, XTO, ACI and BTU, as well as alternative energy plays FSLR (which reported a better-than-expected quarter and historically fabulous upside guidance), AMAT and WFR. Cramer considers ag stocks as members of the energy sector, given the development of ethanol, and would look at MOS, DE. He added rail such as CSX, and infrastructure, CBI, JEC and SGR will also rise with the oil umbrella.
Conviction Stock: FMC Corp (FMC)
A rally one day may spell a down day the next, and it is hard to know what a stock is really worth in this mad market, said Cramer. He was looking for a conviction stock which could give a little bit of certainty about what it was worth, and came up with FMC, a soda ash company in an underexposed sector which is currently enjoying a silent bull market. Soda ash is used to make glass, brick, water softener and most importantly, agricultural chemicals. Cramer says he feels certain that FMC will reach $70, a 30% upside.

Published By SeekingAlpha

Labels: ACI, AMAT, APA, APC, BTU, CBI, COP, CSX, DE, FSLR, JEC, Jim Cramer, Mad Money, MOS, SGR, SLB, UPL, WFR, XOM, XTO

Agriculture's stuck for the moment, but it's still a good long-term play, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
"Agrium (AGU) was on a monster good call," Cramer said, referring to the company's earnings report today. "I think Mosaic (MOS) is better than Agrium."
"I was concerned that Deere (DE) would come out and not say what the market wanted," Cramer said. He added that Potash (POT) has rolled over here.
Although he thinks the sector is great for the long term, "it's not all coming together right now." Of the agriculture stocks, he called Agrium "best in show right now, other than Mosaic."
For the group to pick back up, Cramer said, oil needs to reach $100 a barrel. "You gotta have that oil component come up," he stressed.
Still, some companies might be worth a look. "I think Deere ... makes a lot of sense here." He called the company a long-term buy. "Agrium is cheap. Mosaic is cheap." Cramer added that he likes fertilizer plays the best. "The group has stalled as a contingent except fertilizer. ... I think fertilizer is a worldwide oil and food play."
Cramer also pointed to natural gas, another group to watch. He likes Ultra Petroleum (UPL). He expressed exasperation that investors kept lamenting that nothing is hitting a new high.
"These stocks hit a new high every day. Coal hits a new high every day," he said. He concluded by stating he believes the global switch to natural gas is underway.
Published By TheStreet.com

Labels: AGU, CNBC's Stop Trading, DE, Jim Cramer, MOS, POT, Stop Trading, UPL

Buy:

Air Products and Chemicals Inc (APD)

BAIDU.COM, INC. (BIDU)

China Mobile Limited (CHL)

Focus Media Holding Ltd (FMCN)

Corning Inc (GLW)

Goldman Sachs Group Inc (GS)

Hudson City Bancorp Inc (HCBK)

PetroChina Co Ltd (PTR)

Transocean Inc (RIG)

Siemens AG (SI)

Ultra Petroleum Corp (UPL)
Sell:

American International Group, Inc (AIG)

AXA (AXA)

Countrywide Financial Corp (CFC)

Capital One Financial Corp(COF)

Legg Mason Inc(LM)

Orion Energy Systems(OESX)

Qualcomm Inc (QCOM)

Labels: APD, BIDU, CHL, FMCN, GLW, GS, HCBK, Jim Cramer, Mad Money, PTR, RIG, SI, UPL

Cramer's 80 to 120 Rule: Boeing (NYSE: BA - News), Caterpillar (NYSE: CAT - News) and Cummins (NYSE: CMI - News)
Back in the eighties, Cramer formed a theory that leading stocks attract money and just keep leading, and more specifically, stocks which reach $80 usually climb $100 and then to $120. He applied this rule to Boeing and Caterpillar. While some suspect BA, which closed at $99.90 on Monday, is played out, Cramer thinks the good news is not priced into the stock, which he predicts will reach $120. He says the same is true of CAT, which closed at $79.83 on Monday, and thinks the UBS analyst who downgraded CAT made a big mistake. The stock is cheaper than it looks, and has great international exposure to compensate for its lackluster U.S. business. Cramer adds CAT reminds him of CMI, which was at $72, and turned out to be a winner.
Ultra Petroleum (AMEX: UPL - News) and Questar (NYSE: STR - News)
True to his suggestion to search the newspapers for great stock ideas, Cramer discussed a New York Times article which indicated the Bush Administration told the Bureau of Land Management to make oil and gas drilling a top priority. He suggets making a profit from this news with UPL and STR, which had been prevented from dilling year-round, and now are going to be released from seasonal restrictions. Of the two, Cramer says UPL is more speculative, because it is only leveraged to China on the international scene. The increase on drilling will be good for both companies.
CEO Interview: John Dionisio, Aecom Technology (NYSE: ACM - News)
John Dionisio told Cramer 40% of the technical services company's revenue is created overseas, and since there is a lot of consolidation in the industry, ACM should easily find an acquisition. Cramer commented a stock like ACM is what investors need.

Published by SeekingAlpha

Labels: ACM, BA, CAT, CMI, Jim Cramer, Mad Money, STR, UPL

Bullish calls:
Toyota Motor (NYSE: TM - News): 'This was going to be my stock of the year... It's taking big share from GM and F. I think the stock, ultimately, could go to $200 ... Let's wait until it goes down below $130, and then we pull the trigger.'Spectra Energy (NYSE: SE - News): ' If you got this through the Duke spinoff, I would tell you to keep buying it. I think it's going to be one of the best natural gas distribution stocks out there and those yield a lot and have very, very steady dividend increases (sound of truck doing a 'mon-back).'Kinder Morgan Energy (NYSE: KMP - News): 'Richard Kinder is the smartest man in the oil business.'Cisco (NASDAQ: CSCO - News): ' We are just so solemnly behind CSCO, that we are not going to even think about being in another stock.'Saks (NYSE: SKS - News)Time Warner (NYSE: TWX - News)Hewlett-Packard (NYSE: HPQ - News): 'I want you to buy HPQ.'
Bearish calls:
Yamana Gold (AMEX: AUY - News): ' I happen to think that AUY is the best gold stock but, if I'm right about commodities, gold is about to have a leg down ... only at $10, do you pull the trigger.'Ultra Petroleum (AMEX: UPL - News): 'That house of pain is absolutely going to continue for some time ... I suggest that you take a long-term view, but understand that there could be 15% more downside in UPL.'Deere (NYSE: DE - News): 'Coming down a little. The stock was an unbelievable performer last year ... Let's ring the register. Those who want to be in DE... I may suggest that $85 is where I'd feel comfortable recommending it.'EarthLink (NASDAQ: ELNK - News): ' ... you have to understand, it's really speculative, and that terrific CEO just died of cancer. So the stock has kind of lost its way.'Cleveland Cliffs (NYSE: CLF - News): ' ... the problem here, is that all the mineral stocks are in free fall in America, but CLF has 8% growth. Its stock is just too cheap. If you can wait until the cycle turns - it may be 18 months - you can hold onto CLF. But, if you bought it much lower, ring the register, because it's going to have some downside.'Amylin Pharmaceuticals (NASDAQ: AMLN - News): 'We rang the register at $47 and we said stay away, and I mean stay away. Sell, sell, sell!'AngioDynamics (NASDAQ: ANGO - News): ' ... the news that came out this week ... - is a fantastic opportunity to take profits. I want to distance myself from that speculative stock right now.'Sonus Networks (NASDAQ: SONS - News): 'That's had a good run. Let's take it off the table.'Shanda Interactive (NASDAQ: SNDA - News): 'Don't get me in that cauldron ... I say take the profit. Make the money. I've had enough of it. Sell, sell, sell.'Sun Microsystems (NASDAQ: SUNW - News): ' No, no, no. Sell that. I want you to buy HPQ.'Harrah's Entertainment (NYSE: HET - News): 'You already won. Ring the register. Let's move on. Sell, sell, sell.'MGM Mirage (NYSE: MGM - News): 'Take the win. Sell, sell, sell!'
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Labels: AMLN, ANGO, AUY, CLF, CSCO, DE, ELNK, HET, HPQ, KMP, Mad Money, MGM, SE, SKS, SNDA, SONS, SUNW, TM, TWX, UPL

Bullish calls:
Toyota Motor (NYSE: TM - News): 'This was going to be my stock of the year... It's taking big share from GM and F. I think the stock, ultimately, could go to $200 ... Let's wait until it goes down below $130, and then we pull the trigger.'Spectra Energy (NYSE: SE - News): ' If you got this through the Duke spinoff, I would tell you to keep buying it. I think it's going to be one of the best natural gas distribution stocks out there and those yield a lot and have very, very steady dividend increases (sound of truck doing a 'mon-back).'Kinder Morgan Energy (NYSE: KMP - News): 'Richard Kinder is the smartest man in the oil business.'Cisco (NASDAQ: CSCO - News): ' We are just so solemnly behind CSCO, that we are not going to even think about being in another stock.'Saks (NYSE: SKS - News)Time Warner (NYSE: TWX - News)Hewlett-Packard (NYSE: HPQ - News): 'I want you to buy HPQ.'
Bearish calls:
Yamana Gold (AMEX: AUY - News): ' I happen to think that AUY is the best gold stock but, if I'm right about commodities, gold is about to have a leg down ... only at $10, do you pull the trigger.'Ultra Petroleum (AMEX: UPL - News): 'That house of pain is absolutely going to continue for some time ... I suggest that you take a long-term view, but understand that there could be 15% more downside in UPL.'Deere (NYSE: DE - News): 'Coming down a little. The stock was an unbelievable performer last year ... Let's ring the register. Those who want to be in DE... I may suggest that $85 is where I'd feel comfortable recommending it.'EarthLink (NASDAQ: ELNK - News): ' ... you have to understand, it's really speculative, and that terrific CEO just died of cancer. So the stock has kind of lost its way.'Cleveland Cliffs (NYSE: CLF - News): ' ... the problem here, is that all the mineral stocks are in free fall in America, but CLF has 8% growth. Its stock is just too cheap. If you can wait until the cycle turns - it may be 18 months - you can hold onto CLF. But, if you bought it much lower, ring the register, because it's going to have some downside.'Amylin Pharmaceuticals (NASDAQ: AMLN - News): 'We rang the register at $47 and we said stay away, and I mean stay away. Sell, sell, sell!'AngioDynamics (NASDAQ: ANGO - News): ' ... the news that came out this week ... - is a fantastic opportunity to take profits. I want to distance myself from that speculative stock right now.'Sonus Networks (NASDAQ: SONS - News): 'That's had a good run. Let's take it off the table.'Shanda Interactive (NASDAQ: SNDA - News): 'Don't get me in that cauldron ... I say take the profit. Make the money. I've had enough of it. Sell, sell, sell.'Sun Microsystems (NASDAQ: SUNW - News): ' No, no, no. Sell that. I want you to buy HPQ.'Harrah's Entertainment (NYSE: HET - News): 'You already won. Ring the register. Let's move on. Sell, sell, sell.'MGM Mirage (NYSE: MGM - News): 'Take the win. Sell, sell, sell!'
Published By SeekingAlpha

Labels: AMLN, ANGO, AUY, CLF, CSCO, DE, ELNK, HET, HPQ, KMP, Lightning Round, MGM, SE, SKS, SNDA, SONS, SUNW, TM, TWX, UPL

Accredited Home Lenders (NASDAQ: LEND - News), Merrill Lynch (NYSE: MER - News) and Bear Stearns (NYSE: BSC - News): Cramer says subprime lenders are dong well now, because there are no worries over credit losses. LEND has not fallen because subprime lending is in trouble, but because MER and BSC have entered into the game: "It's a margin-shred story," remarked Cramer.
Devon (NYSE: DVN - News), Ultra Petroleum (AMEX: UPL - News), Core Labs (NYSE: CLB - News), Total (NYSE: TOT - News), BP (NYSE: BP - News) and Duke (NYSE: DUK - News): Cramer likes UPL, CLB and DVN and called Devon's recent downgrade "criminal." He added, "If Devon stays here, it wil be bought by a European major," like Total or BP. Cramer said that Duke Energy is a "nice solid utility that grows."

Labels: BP, BSC, CLB, DUK, DVN, Jim Cramer, Jim Cramer's Stop Trading, LEND, MER, TOT, UPL