Jim Cramer Blog

On Tuesday's show, Cramer began by saying today is a perfect example of why you need to stay in the investing game. He said that Citigroup (C) went from a stock you must stay away from to a stock you must own after Abu Dhabi bought a large stake. It was also announced that they might buy into two more Dow stocks, so Cramer is looking for a way to profit from this trend. Cramer said focus on Halliburton (HAL) because it is trading at a large discount to other oil service stocks. He thinks that it could be worth $53 per share, and that these Arab states will invest in what they know, oil. One issue with the stock is that the company is hated by politicians in the U.S., but Cramer doesn't seem to think that Dubai or Abi Dhabi cares.
Then Cramer went to the phonelines. The first caller asked about opportunities in shale oil stocks, and Cramer recommended that people buy Suncor (SU) immediately. The next caller asked about the proposed takeover of BHP Billiton (BHP). Cramer is bullish on the stock and doesn't think it will be an issue.
Lighting Sector: One stock that Cramer likes is Acuity (AYI). It would be a good buyout target for Philips (PHG), and the stock didn't move up much on the news that Philips plans to buy several lighting companies to go with its buyout of Genlyte (GLYT). Also, this company will grow quickly with retro-fitting of old buildings that need to update their lighting. Another plus for AYI is it's a commerical building play, which is still going strong despite the problems in the residential housing market. Given the same valuation as Genlyte, it would be worth $57 per share.
Cramer came back fromt he lightning round and talked about a battle between two analysts over Starbucks (SBUX). FBR raised the stock to a buy, while CBIC lowered it to a sell on the same day. Cramer wanted to take a closer look at the stock, and after doing his homework, Cramer agreed with CBIC and is bearish on SBUX. He doesn't like the stock because the company has a lot of low priced quality competition, the stock has a contracting multiple, and growth is slowing. He thinks it would have to go well below 16 to be a buy.
The CEO of Aecom (ACM) was on the show, and announced quarterly earnings and guidance for 2008, and the stock dropped over 10% today. He said that the decreasing backlog is due to normal seasonal patterns in orders, and that they expect to continue their growth. He is bullish about the company and the stock. Cramer was disappointed and said that the company will have to show him that it is still on track next quarter before he will buy it again.

Labels: ACM, AYI, BHP, Citigroup Inc., CNBC, GLYT, HAL, Jim Cramer, Jim Cramer's Stop Trading, Lightning Round, Mad Money, Mad Money Lightning Round, Mad MOney Recap, SBUX, SU

Bullish
Proctor and Gamble (PG), better play than Unilever in this sector.
ValueClick (VCLK), Cramer thinks that this stock is still a buy.
UPS (UPS), bullish on the stock over the long term despite the current slowdown in the economy.
Omniture (OMTR), Cramer is bullish on the stock, and thinks that it will get bought out in the next year.
Aecom (ACM), still a great infrastructure play and that it is still cheap.
KBR (KBR),
Foster Wheeler (FWLT),
Salesforce.com (CRM) - likes their product and their sales model
Oracle (ORCL).

Bearish
Taser (TASR) - it is time to cash out
Smith & Wesson (SWHC).

Labels: ACM, CRM, FWLT, Jim Cramer, KBR, Lightning Round, Mad Money Lightning Round, OMTR, ORCL, PG, VCLK

On Tuesday's show, Cramer began by analyzing another stock that has been put on sale after Friday's drop in the market. Shaw Group (SGR) had the best earnings of the quarter so far. Cramer thinks this is time to back up the truck and load up on the stock. Cramer still likes infrastructure plays like Shaw, and the earnings make it even more attractive.
Cramer then went to the phonelines. The first caller asked about Aecom (ACM), which Cramer recommended a couple of weeks ago. Cramer said it is still one of his favorites. The next caller asked about uranium prices, which Cramer attributed to production problems, and recommended Mosaic (MOS) as a good uranium play.
Next, Cramer discussed another pick he made based on the book "Microtrends," which Cramer has been plugging for about the past week. He found that the number of people working from home is increasing, which he thinks will be profitable for Cisco (CSCO), since its products will be needed to connect people to the office, including offerings from some companies they have bought out over the past few years.
Another caller asked about the tech sector in general, and Cramer said that he is the only person bullish on tech. The next caller asked why Cramer likes Cisco, and Cramer said he thinks it will be up consistently 15% a year.
Am I Diversified?
first caller asked about five stocks: Amgen (AMGN), Under Armour (UA), PetSmart (PETM), Goldman Sachs (GS) and EMC (EMC), the latter two of which Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said, "That is definite, definite diversification." The second caller named these five plays: IBM (IBM), Bristol-Myers Squibb (BMY), Pfizer (PFE), Disney (DIS) Citigroup (C), which Cramer also owns for his charitable trust.
Mad Mail: The first email thanked Cramer for the show he did on October 19, where he gave his 5 rules for investing. The writer thinks that those tips will save him money in the future. The next email asked why Cramer didn't talk about Dry Ships (DRY) when he did his dry bulk shippers segment. Cramer said that it has gone up so much that he had to pass on it. The next writer invited Cramer to his daughter's Bat Mitzvah because the profits from his stock picks are paying for it, and the last email asked what to do with some Hershey (HSY) stock they own, and Cramer said to sell it any time the stock goes up.

Labels: ACM, AMGN, CSCO, DRYS, EMC, GS, HSY, Jim Cramer, Mad Money, Mad MOney Recap, MOS, SGR

Cramer started off by saying that it's important to buy stocks that will bounce back the hardest.
CBRL Group (CBRL): operator of the iconic Cracker Barrel restaurant chain. Cramer believes that the company is in a good position after revamping their menus and buying back a ton of stock. They had the biggest buyback in percentage of shares outstanding of any company at 54% over the past year. Cramer is crazy about the buyback.
He then took a couple of calls: One caller asked about Brinker International (EAT), which Cramer doesn't like at all. Another caller asked about Wendy's (WEN) and Cramer said don't even look at Wendy's. He suggested that he get in McDonald's (MCD) instead because it is best of breed.
Yesterday, Cramer discussed how Best Buy is leveraging their growth by expanding international. Tuesday he discussed Textron Inc. (TXT). He feels that its Cessna unit will have large worldwide demand in the upcoming years. Honeywell (HON), a company that has been very successful at forecasting the aircraft business, predicts record sales of business jets, Cessna's "bread and butter." Cramer said the rest of the world will soon surpass America in business jet sales, which makes Textron a solid business-jet play.
Before Cramer started the Lightning Round, he recommended that holders of Baidu.com (BIDU) and Focus Media (FMCN) take some profits off the table. The holders of these stocks should sell half their holdings.
In the next segment, Cramer talked about a defense stock that was booted from the NYSE, but will profit from the new defense budget. The stock is Navistar (NAVZ.PK). Cramer also likes Cummins (CMI) and PACCAR (PCAR) in this sector, but Navistar has a lower multiple.
Next, Cramer had John Dioniso, the CEO of AECOM (ACM) on the phone. Cramer has been recommending the stock, and the company has been delivering profits so far. In his opinion, Cramer thinks Aecom is "money in the bank."
Sudden Death:
Brookfield Asset Management (BAM): "Keep buying!"
Spartan Motors (SPAR): No, buy Navistar (NAVZ.PK) instead.

Labels: ACM, BIDU, CBRL, CMI, EAT, FMCN, HON, Jim Cramer, Mad Money, Mad MOney Recap, MCD, NAVZ.PK, PCAR, TXT, WEN

Bullish Calls:
Aecom Technology (NYSE: ACM - News): 'This may be the cheapest of the infrastructure plays.'Jacobs Engineering Group (NYSE: JEC - News): ' ... at $61, should have been bought today... buy, buy, buy! Infrastructure rocks, as does agriculture!'Wachovia (NYSE: WB - News): 'They just raised the dividend, and they said that the bad loans are under control.'Schlumberger (NYSE: SLB - News): 'SLB, to me, is the cheapest. It went down today, along with the whole group. I feel like you can trade up to quality... you can trade up to SLB.'Transocean (NYSE: RIG - News)Tata Motors (NYSE: TTM - News): 'I think, at $15, TTM makes a huge amount of sense.'E*Trade Financial (NasdaqGS: ETFC - News): 'I would buy some here, and let it come down a bit ... There are many companies that have really bad exposure to this mortgage stuff. ETFC is not one of them.'American Capital Strategies (NasdaqGS: ACAS - News): 'I think that this company is a survivor... a lot of people have tried to call it out a lot of times. They're not going to be successful.'Hudson City Bancorp (NasdaqGS: HCBK - News): 'I think we're in dangerous territory with FSLR. Don't buy, don't buy.'Level 3 Communications (NasdaqGS: LVLT - News): 'I like LVLT for one reason... because I believe there's going to be a bandwidth shortage ... I am picking this as a long-term speculation and, when we run out of bandwidth, I'm not backing away.'Tessera Technologies (NasdaqGS: TSRA - News): 'I thought the quarter was going to be good. I got the quarter wrong. I like the story longer term. now, in the low $30s, I would definitely buy it.'Principal Financial Group (NYSE: PFG - News): 'A very cheap stock ... I really like this stock. I was going to buy it for my charitable trust... I didn't get a chance.'LCA-Vision (NasdaqGS: LCAV - News): 'Upgraded today by Raymond James... a big buyback coming... just finished a buyback. I like it.'IBM (NYSE: IBM - News)
Neutral calls:
Dean Foods (NYSE: DF - News): 'This has become a very problematic story and I've got to tell you something... don't buy, don't buy... I don't think it's over, and the company doesn't think the pain's over too.'Banco Popular (NasdaqGS: BPOP - News)Parker Drilling (NYSE: PKD - News)Foster Wheeler (NasdaqGS: FWLT - News): 'On a day like today, up $7, sell, sell, sell... on the conference call, they made it very clear that contracts were lumpy...every time the stock runs a little, I think it's going to run into selling pressure.'First Solar (FSLS)
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Labels: ACAS, ACM, BPOP, DF, ETFC, FWLT, HCBK, IBM, JEC, Jim Cramer, LCAV, Lightning Round, LVLT, Mad Money, PFG, PKD, SLB, TSRA, TTM, WB

Bullish Calls:
Oceaneering International (NYSE: OII - News): 'If I had my druthers going into hurricane season though, it's going to be Oceaneering.'FMC Technologies (NYSE: FTI - News): 'They are oil service oil companies that work for technical expertise to make sure that oil comes out. They are exactly what you need when you need to find hard-to-get oil.'Superior Offshore (NasdaqGM: DEEP - News): 'DEEP can't rally... I can't back away, because the fundamentals are good ... it's too cheap to sell.'Baidu.com (NasdaqGS: BIDU - News): 'This company is selling much more cheaply than Google ... I know that I'm being a little piggish, but I do like it on this little pullback.'Deere (NYSE: DE - News)Bunge (NYSE: BG - News): ' ... just hit a new high today.'Potash (NYSE: POT - News): ' ... closing in on a new high.'Mosaic (NYSE: MOS - News)Monsanto (NYSE: MON - News): 'I'd pull the trigger on MON.'Intel (NasdaqGS: INTC - News): 'INTC's a bank... they've got a lot of cash.'Graco (NYSE: GGG - News): 'This is a nuts and bolts American company that is doing very well ... I've got to stick with it. That management is just superior... It is just the kind of great American company that doesn't get talked about enough.'Public Service Enterprise (NYSE: PEG - News): 'Don't like them? Go buy them! PEG... This is one of the best utilities... these ar ramping.'Marathon Oil (NYSE: MRO - News): 'MRO - It's nuts that it keeps going down! They're doing the right thing with that Western purchase... I would buy that stock right here!'Schering-Plough (NYSE: SGP - News): 'You know I like SGP.'AECOM Technology Corporation (NYSE: ACM - News): 'its a big play off that horrible tragedy of the bridge collapsing ... remember, these stocks are not going to go up again tomorrow... So, if you have a very quick gain, c'mon... '
Bearish calls:
Starbucks (NasdaqGS: SBUX - News): 'I do like the fact that SBUX put through that price increase, but their same-store sales are anemic... They don't have great growth, but they have a great growth multiple ... I'm putting SBUX in the 'don't buy' camp. But, if it goes to $23-24, it will finally be cheap, and then we'll do some buying.'Northwest Airlines (NYSE: NWA - News): 'No, no! Too much bad stuff going on! Sell, sell, sell! Let's play it easy...'Teva Pharmaceutical (NasdaqGS: TEVA - News): 'No, let's go proprietary.'
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Labels: ACM, BG, BIDU, DE, DEEP, FTI, GGG, INTC, Jim Cramer, Lightning Round, Mad Money, MON, MOS, MRO, OII, PEG, POT, SBUX, SGP, TEVA

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

Bullish calls:
Aecom Technology (NYSE: ACM): 'This is the sleeper next infrastructure play. ... It's done nothing yet, and that's about to change, and I think it goes higher.'Medarex (NasdaqGM: MEDX)Acadia Pharmaceuticals (NasdaqGM: ACAD) Nastech Pharmaceutical (NasdaqGM: NSTK)Hain Celestial Group (NasdaqGS: HAIN): ' Surprised it's not rallying here. Too closely linked in people's minds to Whole Foods. Let's buy some Hain.'Downey Financial (NYSE: DSL):' ... the only savings and loan I am recommending in this great country of ours is DSL Downey Financial.'Peabody Energy (NYSE: BTU)
Bearish calls:
Perficient (NasdaqGS: PRFT): 'Too dangerous ... Don'tBuyDon'tBuy.'CB Richard Ellis Group (NYSE: CBG): 'I've never really understood the value ...'McAfee (NYSE: MFE): 'Don'tBuy. ... I would let it go down.'TFS Financial (NasdaqGS: TFSL): 'Not the right moment for these savings and loans ... 'Optium (NasdaqGM: OPTM): 'Too many companies in the space for video bandwidth.'Akamai Technologies (NasdaqGS: AKAM)Limelight (NasdaqGM: LLNW)
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Labels: ACAD, ACM, AKAM, BTU, CBG, DSL, HAIN, Jim Cramer, Lightning Round, LLNW, Mad Money, MEDX, MFE, NSTK, OPTM, PRFT, TFSL

It's For Real: Herbalife (NYSE: HLF - News)
Cramer regrets having been negative on HLF, which he says is not a typical multi-level marketing scheme and deserves his respect. The company's first quarter earnings were better than expected and delivered in-line, beatable guidance for the second quarter. HLF was granted permission to market its product in two Chinese provinces, has a high-margin business model and "enormous" cash flow. In addition, HLF's $300 million buyback has been approved, and it has a new 2% dividend. The fact that HLF sells at 10% less than its rivals does not make sense to Cramer, who says that situation will not last. Cramer declares HLF is a triple buy, but would not make a move until after the open, because the price higher early.
The Next Foster Wheeler (NasdaqGS: FWLT), with AECOM Technology (NYSE: ACM - News)
FWLT went up beyond Cramer's wildest expectations and now he feels it is time to pick "another Foster Wheeler." Because the tape was "miserable on Friday" the day of its IPO, the stock opened way below the $25 level which Cramer thinks it would be trading now. He considers this low start as an opportunity to buy. ACM has many important contracts, including a rapid transit system at the World Trade Center and plans for the 2012 London Olympics. Cramer says the key metric when it comes to infrastructure is the backlog. Currently, ACM's backlog is up 63%, which means steady sales, according to Cramer. He would buy the stock, but would do some research first.
The "Multiple Expander:" Mark Hurd, CEO of Hewlett-Packard Co. (NYSE: HPQ - News)
Continuing his series on "transformational CEOs," Cramer discussed Mark Hurd, the "multiple expander" of HPQ. Hurd found the company in "total disarray" and helped the stock double in only two years. Recently the company exceeded its earnings estimates and delivered an upside surprise; Cramer gives Hurd the credit.
CEO Interview: Gary Loveman, Harrah's Entertainment (NYSE: HET - News)
Gary Loveman discussed the advantages of going private; management is not distracted on extraneous tasks, but can concentrate on "things that really do build value" in the long term. "The company is being run now to a large degree as if it's private, so I'm living a bit of it now," Loveman said. "It opens up other avenues for value creation." In addition, a company can save and "mature gracefully," whereas if a company is public, it constantly has to worry about the bottom line.
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Labels: ACM, FWLT, HET, HLF, HPQ, Jim Cramer, Mad Money