Jim Cramer Blog

Cramer opened saying the Fed "knows something" and retired his "they know nothing button," in response to the Fed lowering interest rates by 0.5%. They also decreased the discount rate by 50 basis points to 5.25%. Cramer also believes there are "three more rate cuts" to come in the future, which will lead the market to recovery. Look for stocks that yield more than treasuries. In terms of stocks, Cramer said, "almost everything works now," and you should consider buying the following stocks:
Wachovia (WB) "should go higher."
Google (GOOG), Cramer believes is going to break out.
Foster Wheeler (FWLT), Deere (DE), Caterpillar (CAT- which Cramer owns for his charitable trust Action Alerts PLUS) should work now as well.
ExxonMobil (XOM) and ConocoPhillips (COP)—should both work for oil.
Bullish Icahn: one of his favorite activist investors is "proven winner" Carl Icahn. Cramer says Icahn's been "extremely bullish" on one big software company: BEA Systems (BEAS). Icahn wants BEAS to sell because they haven't been able to prosper as a stand-alone company. Bottom line: Cramer likes fundamentals of BEAS, takeover is potential, and is a company with "limited downside."
Prescription Plan: Cramer discussed a bill that passed in Congress that will require doctors to use either tamper resistant paper or electronic records. He thinks will benefit Quality Systems (QSII) and All Scripts (MDRX).
Genesis Lease (GLS), CEO John McMahon on the show and Cramer asked him why his company is not doing well, despite the fact that its’ 8.2% yield. McMahon said, “mispricing of the stock.” Cramer recommends buying GLS.

Labels: BEAS, CAT, COP, FWLT, GLS, GOOG, Jim Cramer, Mad Money, Mad Money Lightning Round, MDRX, QSII, WB, XOM