Jim Cramer's Mad Money Review

The best way to sustain Friday's late rally is for the government to cut a back-room deal with the largest banks and brokerages to get them to start making loans again, Jim Cramer told viewers on his "Mad Money" TV show on Friday.
On a day when Dow closed down 128 points after another extremely volatile session, Cramer said this "secret" meeting is necessary to get the economy, credit markets and stock markets rolling again and avoid a repeat of this past week's brutal market.
Cramer said he would have the Federal Reserve take the initiative by inviting to the meeting the CEOs of large financial institutions such as Citigroup(C ), Bank of America(BAC ), Wells Fargo(WF ), JP Morgan(JPM )Morgan Stanley(MS), and Goldman Sachs(GS ), the latter three of which he owns for his Action Alerts PLUS portfolio.
Cramer said the Fed would tell the CEOs that it would not repeat the mistake it made when it allowed Lehman Bros to fail. Instead, he said, the Fed would do all that it can to get the financial institutions open for business again.
He said the Fed would guarantee all their debts as well as their brokerage, savings and corporate accounts. Furthermore it would allow them to pay off their bonds with federal money, permit them to sell their credit default swaps lower and provide them $100 billion each to lend.
In return, these financial institutions would have to live up to their end of the bargain by "opening the spigots" and make loans again. He said the loans will be targeted to corporations, small businesses and individuals - but not hedge funds.
He also said the Fed would have the financial institutions divvy up the "bad banks" among themselves, with the aim of having them assume the good deposits while selling the bad assets to the federal government's newly created Troubled Asset Recovery Program.
Cramer said that after the market's worst-ever weekly drop it's "time to change our incredibly negative bias," as stocks are no longer in endless sell mode.
For Cramer it's time to rent some stocks, with a look at owning longer term if the market again approaches the lows seen on Friday. Cramer believes the market will chase those lows since the market rarely bottoms on a Friday, and the snapback by stocks was too far, too fast.
That means a new game plan is needed for the cash that Cramer told traders to peel off last month.
Expecting a gap down on both Monday and Tuesday, Cramer advises putting 25% of that cash back in play on both days. As usual, Cramer is against buying all at once.
As for where to put it, Cramer offered a stock like Kellogg(K ) as a template, based on its rallying behavior a year after the 1987 crash.
Of course, Cramer said this isn't 1987 - times are a lot worse. Given that, Cramer suggests loooking at companies that are trading around their cash on hand, such as KBR(KBR ).
You should also look at companies that make products that you eat, such as Kraft(KFT), Heinz(HNZ ), Coca-Cola(KO ) and Altria(MO ). Cramer owns Kraft and Altria in his Action Alerts Plus portfolio.
Cramer also likes giant pharmaceutial Merck(MRK ), cyclical plays Nucor(NUE )and Freeport McMoRan(FCX ), which he also owns for his Action Alerts PLUS portfolio, but reminded viewers that you only want a small position with the last two, since they aren't self-financing.
Cramer would be careful with financials, but he likes US Bancorp(USB ), and threw in a recommendation for Duke Energy(DUK ).
The new leadership is companies that don't need money, Cramer said.
Half-Empty
Cramer likes that traders dodged a bullet on Friday, with a "spectacular" rally off the lows of the morning, but he believes it's important to lay out the worst-case scenario so investors can go forward "with their eyes open."
In the worst case, the model isn't the 1987 market crash, which saw equities bounce back only a year later, but a "1929 scenario" which brought an 89% peak-to-trough drop and a "decline that just wouldn't quit."
In that model, Cramer said, currently flailing stocks like U.S. Steel(X ) and General Motors(GM ) wouldn't be done yet.
Cramer said that unfortunately the parallels with the 1929 crash are too close for comfort. As in 1929, he explained, we have a presidential administration that's in over its head. Listening to Bush say the government taking necessary actions to solve the crisis is like President Herbert Hoover saying than that the worst is behind us.
Cramer noted the market's tanking after Bush's most recent comments about the market, as well as the similarities of a Federal Reserve too focused on inflation and a wave of bank failures.
Cramer said he believes the federal bailout plan can help, but that a second Great Depression is still on the table. "That's why you have to be careful with your buying," he said.
Published By TheStreet.com

Labels: BAC, Bank of America, C, Citigroup Inc., Goldman Sachs Inc., GS, HNZ, Jim Cramer, JP Morgan Chase and Co., JPM, K, KBR, KFT, KO, Mad Money, Merck, Morgan Stanley, MS, Wells Fargo, WFC

Despite the passage of federal bailout package, Jim Cramer told viewers of his "Mad Money" TV show that he did not trust this market.
He reminded investors to sell into any moments of strength and play defensively as the details of the bailout plan begin to play out.
Cramer then shifted his attention to Wachovia (WB), saying its shareholders have good reason for hope after some nifty behind-the-scene moves by CEO Bob Steel.
Cramer praised Steel for working out a deal with Wells Fargo (WFC).
He admitted he was wrong when he placed Steel on his "Wall of Shame" list of the worst CEOs on Monday. He said he did so because he was disheartened by the federal government's decision to sell Wachovia's assets to Citigroup (C) and the fact that Steel had not come forward to defend his position.
However, after today's announcement of a deal with Wells Fargo, Cramer said he had an entirely different view of Steel.
UPFilling the empty slot in the Wall of Shame, Cramer added Sen. Harry Reid (D., Nev.) for a comment he made Wednesday that a major insurance company was preparing for bankruptcy.
Cramer said that irresponsible comment caused the stocks of Prudential (PRU), MetLife (MET) and Hartford (HIG) to suffer double-digit percentage drops.
Cramer said Reid deserved to be on the Wall of Shame for adding fear to an already fearful market.
Cramer said he's evaluating the industrial stocks by two simple measures: their dividend yield and how much cash they have on the balance sheet. Earlier in the week, he recommended KBR (KBR), a company where two-fifths of its marketcap is cash.
Tonight he recommended two other companies that he says are approaching the "value" threshold. The first on his radar screen is steelmaker Nucor (NUE), with its 3.6% dividend yield. The company was downgraded today by an analyst at Merrill Lynch. With a share price below $30, Cramer said Nucor is solid value stock.
Cramer also recommended Freeport McMoran (FCX), a stock which he owns for his charitable trust, Action Alerts PLUS, as another company close to a value moniker. With a 4.4% dividend yield, Cramer said he's beginning to buy additional shares to reinforce his position for his trust.
Admittedly, Cramer said gold and steel prices continue to fall, but in the case of Freeport, the stock has fallen from a high of $127 to $44 today. With such a decline, Cramer believes the downside has to be minimal going forward.
Published By TheStreet.com

Labels: C, Citigroup Inc., FCX, Hartford, HIG, Jim Cramer, KBR, Mad Money, Mad MOney Recap, MET, MetLife, NUE, PRU, Prudential, Wachovia, WB, Wells Fargo, WFC

Wells Fargo's(WFC) a winner here, said Jim Cramer on the Stop Trading segment on CNBC Thursday.
He urged people to look back at the early 1990s, when what was to become Bank of America(BAC) bought Security Pacific. It was completely unbelievable, impractical, he said. No one believed it, and yet that's when Bank of America became a great bank.
Now Wells Fargo is in a position to acquire Lehman Brothers (LEH)or Washington Mutual(WM) should either be seized by the government - something that needs to happen to avoid a great depression, he said. The bank system's falling apart. Let's save it before it goes to zero.
He distinguished the dysfunctional banking system from the economy at large and said he expects a huge holiday season. I'm paying $2.50 at the pump, he said. Mortgage rates are the lowest they've been. He recommended buying Sears (SHLD) He also saw bullish signs in falling oil prices. Oil going down through $100 is really, really bullish, obviously, for a lot of the market, not for the oil stocks, he said, though some of those are going up, too, due to the hurricane.
Published By TheStreet.com

Labels: CNBC's Stop Trading, Jim Cramer, LEH, Lehman Brothers, Sears Holding, SHLD, Stop Trading, Washington Mutual, Wells Fargo, WFC, WM

Cramer isn't sure that all financial stocks are sells right now. "Nat City (NCC) yields 9%. ... Don't overlook the fundamentals."
"My temptation is to say everybody's going to sell," Cramer added. "Maybe you have a tradable rally in the largest stocks in the world, because everyone is going to sell. ... with these stocks where they are right now ... it's probably worth it to take a stand on these."
Cramer said things may be "good, not bad," for the financials. He pointed out that with CEO John Stumpf, whom Cramer believes in, Wells Fargo (WFC) should recover well.
Cramer also reaffirmed his support for new Merrill Lynch (MER) CEO John Thain, calling him the "man to watch at Merrill." Cramer said he was excited to see that Thain brought back Jeffrey Kronthal, who was ousted from Merrill in 2006 "because he didn't want to do a lot of subprime."

Labels: Jim Cramer, MER, NCC, Stop Trading, WFC

Freeport-McMoRan (FCX)
With rising global demand for raw materials, the mining sector will be on fire for the long-term, and Cramer's favorite pick is FCX. Demand for copper is increasing, supplies dwindle, and since FCX is a leader in copper mining, it should be the chief beneficiary. In addition, FCX has an "unbelievably great" buyback. While there is a lot of consolidation in the sector, Cramer says FCX is doing fine on its own.
Hudson City Bancorp (HBCK), Wells Fargo (WFC)
While Cramer feels confident there will be a rate cut and recommends owning a bank stock, he cautions investors to look for a more stable financial in case the Fed surprises him. Cramer praised HBCK's common sense business model: "It takes deposits; it lends to good, hard-working people who then pay the loans back." HBCK is careful about choosing its borrowers, has fewer non-performing loans than relatively stable bank WFC and is rewarded with loyal customers because it doesn't slap on outrageous fees.
CEO Interview: Donald Wood, Federal Realty Investment Trust (FRT)
Donald Wood said the crisis in consumer confidence is mainly hitting certain parts of the country and FRT, which deals with shopping center real estate, has made the decision to concentrate on higher income areas with larger populations; "We leave other parts of the country alone," he said. "There is no hedge, in my view, in real estate like great locations." Cramer recommended sticking with FRT.
Published By SeekingAlpha

Labels: FCX, FRT, Jim Cramer, Mad Money, WFC

Fluor (FLR), Shaw (SGR), Bunge (BG), Foster Wheeler (FWLT): Cramer says Fluor, which is GE's infrastructure business, is on fire as is the sector and that FLR is a great way to play the Middle East; "Look at that chart! It's the north face of Everest!... It's into thin air... We're at base camp three!," remarked Cramer, while reminding viewers FLR is down $6-7 from its high. In addition, investors who want nuclear energy should look at SGR, which has doubled but is still processing many orders, as well as Foster Wheeler, which Cramer has been recommending for 100 points. He noted Bunge is finally "exploding."
Wells Fargo (WFC), US Bancorp (USB): While Cramer thinks WFC is alright, he noted they had high home equity losses. Even though USB had 4% home equity losses, it was "far more ahead of the game," and Cramer thinks USB is a buy, especially since Buffett has a stake.
Published by SeekingAlpha

Labels: BG, FLR, FWLT, Hot Stocks, Jim Cramer, SGR, Stop Trading, USB, WFC

Pepsi (PEP): stock went down almost 2 points. The quarterly report showed that the raw costs hurt the numbers in many of their domestic products, and thinks that many people are concerned that price increases will hurt sales. Pepsi CEO Indra Nooyi was on the show to discuss the numbers, which she was very happy with. Nooyi thinks they can handle increased commodity costs and that earning will continue to increase.
Next, Cramer dressed up like a matador and talked about a Spanish stock. Cramer thinks that Spain has a good bull market, and that Banco Santander (STD) will prosper from its home market and the strength of the Euro compared to the US. Cramer said STD will make some acquisitions in the US and Latin America, growing and diversifying the bank's asset base. Cramer could see the stock making a 20% increase in the stock and a dividend increase as well.
Cramer took a couple of phone calls. First caller asked about Wells Fargo (WFC), and Cramer said that he likes the stock, but not as much as STD. The next caller asked about the Commerce Bank (CBH) merger, and Cramer said that the market had already priced an acquisition into the stock price in that case. The next caller asked about Banco Popular (BPOP), and Cramer said that he is not willing to buy that stock.
Sell Block
Cramer focused on the reasons you should sell Chipotle (CMG). Cramer is sad to see the stock go, but it is up 200% since he originally recommended it, and doesn't like the stock at this price.
PetSmart (PETM) CEO of the company was on the show. He discussed the fact that some of the company's sales are affected by weather patterns, and warmer weather hurts profits. Cramer still recommends the stock.
Finally, Cramer said that you should sell any Allegheny Technologies (ATI) stock you might have left from his recommendation of it last year.

Labels: ATI, CBH, CMG, Jim Cramer, Mad Money, Mad MOney Recap, PEP, PETM, STD, WFC

Google (GOOG): Today's show started with Cramer talking about Google. He talked about all the Google non-believers, and then talked about the reasons that he thinks the stock will keep going higher. He has set his price target at $750, and believes it's not too late to get into the stock right now. He thinks it is a great company and has been undervalued every day "of it's existence." He told viewers that if they're afraid to buy such an expensive stock, divide it by 10 and think of it in that sense. Buy Buy Buy!
Next Cramer listed medical device makers that he likes by building a theoretical bionic woman. The first stock he listed was Alcon (ACL) which makes eye care products. He also recommended Smith and Nephew (SNN) and Stryker (SYK). His favorite one is Stryker, which he thinks could give you a 36% gain. Stryker has some litigation pending, but once that is settled he thinks the stock will take off. He also believes that the stock will do well if the economy slows. A caller asked about BioScrip (BIOS), and Cramer said that BIOS is an interesting takeover play with solid fundamentals.
"Are You Diversified?"
The first caller asked about his core of Google (GOOG), eBay (EBAY), Wachovia (WB), Nastech (NSTK) and Southwest (LUV). Cramer said he prefers United (UAUA). He said eBay overlaps with Google. He recommended selling eBay and buying a defensive stock.
A second caller's portfolio included Wells Fargo (WFC), Lockheed Martin (LMT), Texas Instruments (TXN), Exxon-Mobil (XOM) and Dover (DOV). "Hallelujah," Cramer said. There is a picture of this caller in the dictionary next to the entry for "diversification."
He also said "hallelujah" to the third callers portfolio which included Wachovia (WB), Research in Motion (RIMM), Schlumberger (SLB), Lockheed and Lundin Mining (LMC).
BioMarin Pharmaceutical (BMRN) CEO was on the show. Cramer discussed the prospects of an upcoming drug from BioMarin and said that he is bullish on the stock.
Finally, Cramer came back and said that he was wrong about Downey Financial (DSL), which was down big today.

Labels: ACL, BIOS, BMRN, GOOG, Jim Cramer, LUV, Mad Money, Mad MOney Recap, NSTK, SNN, SYK, WFC

This year's decline in existing home sales will be steeper than previously anticipated, a trade group for real estate agents predicted Wednesday.
The eighth straight downwardly revised forecast from the National Association of Realtors calls for U.S. existing home sales to be 10.8 percent below last year as housing market woes persist. Sales of new homes, meanwhile, are expected to finish 2007 at the lowest level in a decade.
The trade group's outlook for 2007 homes sales has grown more pessimistic through the year as foreclosures soared, credit market troubles developed and sales fell. Back in February, the group forecast an annual decline in existing home sales of only 0.6 percent.
In its October report, the association predicts 5.78 million existing homes will be sold in 2007, down from 6.48 million last year. Last month, the association predicted an 8.6 percent drop from a year ago.
This year's sales would be the lowest since 2002, when sales hit 5.63 million.
Sale prices for existing homes are forecast to drop 1.3 percent to a median of $219,000 this year -- a slight improvement from last month's prediction of a 1.7 percent decline. The median price refers to the point where half sold for more and half for less.
Next year, the trade group expects existing home sales to climb to 6.12 million. That is 2.4 percent lower than last month's prediction.
Source: Alan Zibel, AP Business Writer

Labels: BAC, BZH, CFC, DHI, Home Sales, KBH, LEN, MDC, PHM, SPF, TOL, WB, WFC, WM

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

Bullish calls:
Herbalife (HLF): 'I have switched to Herbalife (HLF) and I am much thinner!' US Bancorp (USB): 'at 4.8% yield, USB... I'd pull the trigger right here! I think they're going to own the mortgage market.' Wells Fargo (WFC) Southern Copper (PCU): 'Skee Daddy likes PCU... no doubt about it.' Freeport McMoRan (FCX): ' if you want a cheaper stock that is off more, because the hedge funds kept dumping it all over the place... it is Freeport McMoRan, which is down a quick $15.' Novartis(NVS): 'Novartis is the play.' Cal-Maine Foods (CALM): 'Yeah, that stock is still cheap. And people don't understand... it's like the only egg producer around there.' Kraft Foods (KFT): 'That's the big dairy play that I like very much, and I'm reiterating that everybody's circling around KFT. Irene Rosenfeld's going to sell some brands. That stock goes from $32 to $35.' Dell(DELL):'It reports later this week. I think it's going to have an upside surprise … I think it reports $30 by the year's end.' Coca-Cola Enterprises (CCE) PepsiCo(PEP): 'PEP, at $68, has still got more upside. Great international growth. Frito Lay turned. Brand new sugar-free Gatorade coming, and great ads last night on Sunday Night Football on NBC.' Toll Brothers (TOL): 'I think is going to bottom, ahead of all the other homebuilders - the only area in this whole country with real estate that is not falling off a cliff.' CACI International (CAI) Raytheon (RTN): 'I like Raytheon more than CAI.' Lockheed Martin (LMT): ' … broke out today.' General Dynamics (GD) American Standard (ASD): 'ASD, in the end, is an inexpensive stock. You know I like the management. But it's got a new CEO. It's no longer going to be Fred Poses. I've got to stick by ASD!' Hudson City Bancorp (HCBK)
Bearish calls:
Blackstone Group (BX): 'I think BX is just the quintessential wrong stock to own.' Fortress Group (FIG) Alvarion (ALVR): 'It's an Israeli wireless company. I really like it…. Let it pull back under $10.' NutriSystem (NTRI):' It's controversial, because there's a very big short position … There are some people who think that NTRI's stuff is not that tasty.' Sanofi-Aventis (SNY) CPI (CPY) Pre-Paid Legal Services (PPD)

Published by SeekingAlpha

Labels: ASD, CALM, CCE, Dell, FCX, GD, HCBK, HLF, Jim Cramer, KFT, Lightning Round, LMT, NVS, PCU, PEP, RTN, TOL, USB, WFC

Billionaire investor Warren Buffett may buy parts of beleaguered mortgage lender Countrywide Financial Corp (NYSE:CFC - News), some investors are speculating, according to The Wall Street Journal.
Countrywide's debt-servicing business and its portfolio of mortgages and mortgage-backed securities may be attractive to Buffett, the Journal reported on its Web site on Monday, citing unnamed investors.
Like many mortgage lenders, Countrywide has struggled with rising delinquencies and foreclosures, and an unwillingness among bankers to extend credit, and among investors to buy the loans it makes.
Countrywide, which is being closely monitored by U.S. regulators, sought to reassure investors earlier on Monday that it is safe to do business with the company.
Buffett has been increasing his stake in financial services companies, including those with significant exposure to the mortgage market.
Earlier this month, Buffett's investment company Berkshire Hathaway Inc (NYSE:BRK-A - News; NYSE:BRK-B - News) disclosed an investment in Bank of America Corp (NYSE:BAC - News), one of the six largest U.S. mortgage lenders, in a regulatory filing.
Berkshire is also a long-time shareholder in Wells Fargo & Co (NYSE:WFC - News), the second largest U.S. mortgage lender after Countrywide.
Wells Fargo has largely been spared the subprime mortgage-related woes afflicting smaller rivals, helped by its conservative underwriting standards.
Buffett told TV network CNBC last week that the worsening credit and housing markets may present some "real" investment opportunities.
Berkshire officials were not immediately available for comment. Buffett does not discuss what Berkshire is presently buying and selling.

Published by Reuters

Labels: BAC, BRK-A, BRK-B, CFC, Warren Buffett, WFC

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

Warren Buffett has added Bank of America Corp. to his Berkshire Hathaway Inc.'s bank holdings.
According to a filing with the Securities and Exchange Commission, Omaha-based Berkshire Hathaway (NYSE:BRKA - News) held 8.7 million shares of Charlotte-based BofA at the end of June. The stake was valued at $425.3 million.
It's uncertain whether BofA (NYSE: BAC - News) will become one of Buffett's long-term holdings.
Buffett also added to his long-time holding in Wells Fargo & Co. (NYSE:WFC - News), bringing the value of his stake in the San Francisco bank to more than $9 billion as of June 30.
He also added to his stake in Minneapolis-based U.S. Bancorp.
Published August 16, 2007 by the Charlotte Business Journal

Labels: BAC, BRKA, Warren Buffett, WFC

Next Week's Game Plan: Coke (NYSE: KO - News), Intel (NasdaqGS: INTC - News), United Technologies (NYSE: UTX - News), Freeport McMoRan Copper & Gold (NYSE: FCX - News), Honeywell (NYSE: HON - News), Johnson Controls (NYSE: JCI - News), Caterpillar (NYSE: CAT - News), Schlumberger (NYSE: SLB - News), Merrill Lynch (NYSE: MER - News), Wells Fargo (NYSE: WFC - News), JPMorgan Chase (NYSE: JPM - News), Bank of America (NYSE: BAC - News) and Citigroup (NYSE: C - News)
Cramer expects better-than-expected earnings from the following companies, and would buy before their reports next week: KO, INTC, UTX, FCX, HON, JCI, CAT and SLB. Since banks are "on a mission to show that there is no slowdown" and are likely to raise their dividends and buy back stock, Cramer would buy MER, WFC, JPM, BAC and C prior to their earnings reports.
That 80s Show: Boeing (NYSE: BA - News), Caterpillar (NYSE: CAT - News), ConocoPhillips (NYSE: COP - News), Energizer (NYSE: ENR - News), Air Products & Chemicals (NYSE: APD - News), Apache (NYSE: APA - News), Terex (NYSE: TEX - News)
"I've discovered alchemy," declared Cramer, noting the six stocks (BA, CAT, COP, ENR, APD and APA) he has discussed this week in connection with his theory (that stocks at $80 go to $100 and then to $120) are up an average of 5.2%. On Friday, Cramer added TEX to the list, since it is around $80 and will benefit from the "wild bull market" of infrastructure and machinery. He doesn't regard CAT as a rival, since "Terex's bread and butter is in aerial work platforms" which are not produced by CAT. He is not worried about competition from Manitowoc in the crane business.
Incredibly Risky Play: GeoEye (NasdaqGM: GEOY - News)
Cramer recommended GEOY as an "incredibly risky play" which is not for IRA money, but could have a major upside. Although it is the biggest commerical satellite company, GEOY has yet to make a profit. However, Cramer thinks outsourcing demands and Google Earth might make this company profitable, not to mention its main competitor is not a publicly traded stock. According to Cramer, the stock could double on the successful commission of a new satellite. However, the date has been deferred once, and if the satellite does not go up when expected, GEOY "could get hammered." While he urges caution, Cramer says GEOY is a great speculative stock.
Mad Mail: Taser (NasdaqGS: TASR - News), Excel Maritime Carriers (NYSE: EXM - News)
Concerning Taser, Cramer says the shorts are "enfilading fire" and "the longs are winning." He changed his position on EXM, and regretted having been too bearish.

Published by SeekingAlpha

Labels: BAC, C, CAT, FCX, HON, INTC, JCI, Jim Cramer, JPM, KO, Mad Money, MER, SLB, UTX, WFC

Six Flags (NYSE: SIX - News): 'We are big fans of Mark Shapiro... I like the advanced ticket sales. I like what he's doing. I am bullish on SIX, but I have to believe that you don't want to pull the trigger until it is below $6.'Ford (NYSE: F - News): 'People are believing in Alan Mulally [CEO}, and it's about time. He's shrinking the company ... we have heroes on Wall Street, not just villains, and Alan is one of the heroes!'Wells Fargo (NYSE: WFC - News): 'Best in show bank. 14x multiple. Unbelievable. WFC is good - don't buy, don't buy - but I want you to pull the trigger on GS!'Goldman Sachs (NYSE: GS - News): ' ... at $225, and I think it's going to $350... I want you to pull the trigger on GS.'Peabody Energy (NYSE: BTU - News)Chemed (NYSE: CHE - News)Charter Communications (NasdaqGM: CHTR) 'CHTR's going higher! CHTR is now up almost a dollar from where we recommended it.'J.C. Penney (NYSE: JCP - News)Kohl's (NYSE: KSS - News)Saks (NYSE: SKS - News): 'Somebody upgraded it today. They're finally getting on board. I like that one too!'Dick's Sporting Goods (NYSE: DKS - News)Lowe's (NYSE: LOW - News)Federated Department Stores (NYSE: FD - News): 'That stock has gotten too cheap. I'd like to buy that. Buy, buy, buy.'Sears (NasdaqGS: SHLD): ' ... is a stock that everybody now hates... (buzzer sounds)... Meanwhile, I say, c'mon. The guy's making money. Give him the BOD - give him the benefit of the doubt!'Caterpillar (NYSE: CAT - News): ' ... why would you not buy Caterpillar instead, which is best in show, much too low versus the rest of the group.'Joy Global (NasdaqGS: JOYG): 'I like JOYG, but it is to CAT that I am pointing you to...'Syneron Medical (NasdaqGS: ELOS): 'We're still sticking with ELOS ... We like the lasers. We believe in the dental laser. Has it taken off yet? Not yet, but we still like it. I would stick with ELOS.'China Medical (NasdaqGS: CMED): 'The stock is good... A very strange combination of hospice and Roto Rooter... I am sticking by CMED. I would take a little off, because ... hogs get slaughtered... but CMED was a good one and it remains so.'New York Stock Exchange/Euronext (NYSE: NYX - News): '.... was so ugly today that... I've never seen such a bear raid on a stock ... The Euronext numbers that came out were great!'
Bearish calls:
Consol Energy (NYSE: CNX - News): 'Keep looking! Don't pull the trigger! Don't buy, don't buy.'Massey Energy (NYSE: MEE - News): ' ... that one is just awful! House of pain...'DivX (NasdaqGM: DIVX): 'I cannot get behind DIVX. That was one of the ugliest quarters out of the chute that I've ever seen... I cannot do the right thing when management screws up. I am not getting behind DIVX. No way, no how!'Big Lots (NYSE: BIG - News): 'BIG is not a favorite of mine.'Sport Chalet (NasdaqGM: SPCHB)Central Garden & Pet (NasdaqGS: CENT): 'Pass on CENT... Inconsistent. Not a great company. Way too levered to whether we have a good garden season, which is really bad. Sell, sell, sell!'
Published by SeekingAlpha

Labels: BIG, BTU, CAT, CHE, CHTR, CNX, DKS, F, FD, GS, JCP, Jim Cramer, KSS, Lightning Round, LOW, NYX, SIX, SKS, WFC

Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Google Inc. Jun 530 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
DaimlerChrysler AG Apr 90 Puts (NYSE:DCX - News). DCX's PowerRating is 5.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Vertex Pharmaceuticals Apr 30 Calls (NasdaqGS:VRTX - News). VRTX's PowerRating is 3.
Advanced Magnetics Apr 65 Calls (NasdaqGM:AMAG - News). AMAG's PowerRating is 3.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Dendreon Corp. May 20 Puts (NasdaqGM:DNDN - News). DNDN's PowerRating is 1.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Devon Energy (NYSE:DVN - News) . DVN's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None Today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Wells Fargo & Co. (NYSE:WFC - News). WFC's PowerRating is 4.
PowerRatings are courtesy of TradingMarkets.com

Labels: AMAG, DCX, DNDN, DVN, GOOG, Stock Options, VRTX, WFC

Labels: BGC, BP, CIT, MBI, PKG, RVBD, WFC