Jim Cramer Blog

Wednesday's show started with Cramer talking about dry bulk shipping stocks. He likes them because they have large dividends, plus the stocks have room to go up. Over the past 6 months they have been ignored by most investors while going up. Cramer recommends OceanFreight (OCNF), Paragon Shipping (PRGN), Diana Shipping (DSX), and Genco Shipping (GNK). Cramer then had the chairman of Genco on the show to explain how this business works and where he thinks his company and the industry are heading.
eBay (EBAY): After the break, Cramer said that you should hold on to eBay and that he thinks the stock will go up to $50. He then continued his analysis on dry bulk shipping stocks. Cramer said that Paragon is his favorite conservative shipper, and Diana is his favorite shipper with more risk, since it hasn't contracted out all its shipping for 2008. Cramer thinks rates will rise.
Cramer then went to the phones. The first caller asked about Nicor (GAS) and its relationship to Cuban democracy once Castro dies, and Cramer said that Bank of Nova Scotia (BNS) and Freeport McMoran (FCX) are better Cuban democracy plays. The next caller asked about Superior Offshore (DEEP), which Cramer thinks you should wait until November to buy if you are interested in the stock.
After the lightning round Cramer had Mark Penn, the author of Microtrends, on the show. Cramer thinks this book will give him stock ideas for the next 25 shows. The Microtrends plays that Cramer mentioned on today's show are lululemon (LULU) and Gamestop (GME).
"Am I Diversified?,"
First caller asked if Google (GOOG), Manulife (MFC), Brocade (BRCD), Volvo (VOLV) and CVRD (RIO) represented a diversified portfolo. Cramer blessed the portfolio. Second caller asked about Halliburton (HAL), Peabody (BTU), Google, Enterprise (EPD), and cash. Cramer said the portfolio relied on "too much energy complex." The final caller asked about Apple (AAPL), McDonald's (MCD), Caterpillar (CAT), ConocoPhillips (COP) and Schering-Plough (SGP). Cramer said "You've got absolute diversification."

Labels: BNS, DEEP, DSX, Ebay, FCX, GAS, GNK, Jim Cramer, Mad Money, Mad MOney Recap, OCNF, PRGN

Bullish calls:
Sirius Satellite Radio (NasdaqGS: SIRI): 'Perhaps someone might want to ask me about SIRI, which I think could just get a bump of 10%, because of some activities in radio...'Mattel (NYSE: MAT - News): 'I feel that MAT goes higher ... How about this? If you have 200 shares, take off 50, but let that run on a fundamental basis, because it's real good.'Hasbro (NYSE: HAS - News)CVS (NYSE: CVS - News): ' ... they got this Caremark. It's a great move ... CVS - best in show. Really smart. Ended up getting it cheap. I'm not backing away from CVS. No. If anything - down a dollar - I'm pulling the trigger.'Express Scripts (NasdaqGS: ESRX): 'I've been buying ESRX ... Why? Because I think Walgreens has to do a me-too (buy ESRX because CVS bought Caremark).'Rochester Medical (NasdaqGM: ROCM): 'Unbelievably good baby-boomer play. I say stick with it. Do not can it until you get to $30 smackers!'Zimmer (NYSE: ZMH - News)Allergan (NYSE: AGN - News)Color Kinetics (NasdaqGM: CLRK): 'CLRK makes this really cool lighting system ... I think CLRK is the best-in-show of the lighting group. That's what you want to be in.'Bank of Nova Scotia (NYSE: BNS - News): 'BNS? ...They are going to own - I am not kidding - they are going to own the Caribbean. BNS is the best-run bank in Canada.'Medco Health (NYSE: MHS - News): 'MHS, down $4 bucks from a high is so fantastic...'Yamana Gold (NYSE: AUY - News): 'We're going to go to AUY! Still, after a double, I am still recommending AUY. That's the best in show ('mon-back sound).'International Securities Exchange (NYSE: ISE - News): 'All right, every one of these is a takeover target.'IntercontinentalExchange (NYSE: ICE - News): 'I am liking ICE - the Intercontinental Exhange - down $40 from its high.'Intuitive Surgical (NasdaqGS: ISRG): 'The only one in the medical space that's left is ISRG. The stock grows at 35%, It has the ability to go up another 30-40 points. I want to buy ISRG. I like that stock very much.'Las Vegas Sands (NYSE: LVS - News): 'Oh, you know I like that company. That is really well-run. I've liked it for 50 points.'Mueller Water (NYSE: MWA - News): 'I just got their annual report. I think it looks real good. I've got to tell you, I'm a believer down here in water infrastructure.'
Bearish calls:
US Gold (AMEX: UXG - News): 'No. No. You know, we're not going to go to Nevada and find a lot of gold anymore. We're going to go to Latin America. We're going to go to South America.'J2 Global Communications (NasdaqGS: JCOM): ' ... this has been a very hard stock for me to get a line on, frankly. I have not understood why it keeps going higher ... 'don't buy, don't buy'Mannatech (NasdaqGS: MTEX): 'Nutritional supplements. A good business, but I have burned people in MATK, so I want to be very careful, and, again, I'm going to have to resort to the 'don't buy' button.'Smith & Wesson (NasdaqGS: SWHC): 'I'm sticking with another 'don't buy.'BB&T (NYSE: BBT - News): 'No. No. I don't like the regional banks. Sell, sell, sell!'Valero Energy (NYSE: VLO - News): 'At $69... At this price, I'm a register ringer. I can't take the pain. I'd rather be in an integrated.'
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Labels: AGN, AUY, BBT, BNS, CVS, HAS, ICE, ISE, Jim Cramer, Lightning Round, LVS, Mad Money, MAT, MHS, SIRI, UXG, VLO, ZMH

Bullish calls:
Schlumberger (NYSE: SLB - News): 'I'm steering people toward SLB.'Transocean (NYSE: RIG - News): ' ... that's the cheapest international driller, now that SLB has run so much. That's a better buy.'Companhia Vale do Rio Doce (NYSE: RIO - News)Allegheny Technologies (NYSE: ATI - News)Wachovia (NYSE: WB - News): 'This is a 4% yielder with decent growth. Good quarter today. You know I like the regional banks. I say it's okay. I prefer BNS.'Bank of Nova Scotia (NYSE: BNS - News): ' I prefer BNS [to WB].'Ford (NYSE: F - News)Marvell Technology (NASDAQ: MRVL - News): 'I am going to recommend - even at the price of perhaps a shortfall near term - MRVL. I think that's one down and 10 up. That's my gift to you.'Charles Schwab (SCHW): 'SCHW's good. ETFC's good. AMTD's good. They all trade more expensively, though, than the full-service brokers.'Ameritrade (NASDAQ: AMTD - News)E*Trade (NASDAQ: ETFC - News)Goldman Sachs (NYSE: GS - News): 'I have been recommending GS. The stock's been down for two days and, you know what? (motions to back up the truck for a 'mon-back) - even that short of time, and I want to buy GS, because I'm using a $300 price target and it's one of my stock picks of the year - my value stock pick...'Johnson Controls (NYSE: JCI - News)Adobe Systems (NASDAQ: ADBE - News): 'I think ADBE is unfairly being brought down. I think ADBE is right here ... I'd like to buy this one for my charitable trust. That's how great I think it is down here ... It's a triple buy. Buy, buy, buy! ... I want you to stay with it.'@Road (NASDAQ: ARDI - News): ' Good speculative play on the net. I like it, I'll endorse it.'Darden Restaurants (NYSE: DRI - News): 'Yes! That's a well-run company!'
Bearish calls:
Talisman Energy (NYSE: TLM - News): 'I don't want to be in TLM. I want to be in RIG.'Zoltek (NASDAQ: ZOLT - News): ' I don't like ZOLT. I think it's played out. We recommended it on this show at $12. When it doubled, we took our profits. And I'm not going back. I do not want to own ZOLT.'Syntax-Brillian (NASDAQ: BRLC - News): 'No can do, my friend. That's like hamburger helper. I'd rather go for the real thing; I'd rather go for the filet mignon [MRVL].'Fuel-Tech (NASDAQ: FTEK - News): 'I like pollution control stories somewhat ... I'm concerned that this is one of those 'State of the Union' plays, where it drops down tomorrow, so let's take profits today.'Visteon (VC)SAIC (NYSE: SAI - News): 'There is a sense that the consulting companies that report to the government for military purposes aren't doing well ... I think that SAI - which I liked a little too much, I now say - is just 'don't buy, don't buy' ... New position for me - new negativity.'Evergreen Solar (NASDAQ: ESLR - News): 'Another one of these (bear)... I am not going to countenance any of these solar plays with energy going down!'Baker Hughes (NYSE: BHI - News): 'BHI has a decent product portfolio, but RIG* is the name of the game ... because it's an international driller. 'Complete Production Services (NYSE: CPX - News): 'No, we're going to RIG.'
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Labels: ADBE, AMTD, ARDI, ATI, BNS, BRLC, DRI, ETFC, F, GS, JCI, Jim Cramer, Mad Money, MRVL, RIG, RIO, SLB, TLM, WB, ZOLT

More Top Foreign Stocks: Companhia Vale do Rio Doce (NYSE: RIO - News), NTL (NASDAQ: NTLI - News) and Bank of Nova Scotia (NYSE: BNS - News) with Homex Development (NYSE: HXM - News) and Baidu (NASDAQ: BIDU - News)
After discussing RIO, his favorite foreign stock, Cramer moved a bit further down the list to the largest British cable company, NTL. Although the stock didn't move when other cable companies rallied and has a pile of debt, Cramer sees an upside for the company with its triple play of internet, cable and phone. Since Virgin Mobile has a stake in the company, it is changing its name to Virgin Media which will improve NTL's image since the Virgin brand name is "incredibly strong." Cramer also likes BNS, and says that it has good growth potential and will likely keep increasing its 3.3% dividend. He adds that BNS has the advantage of taking market share in Canada, an "underbanked country, and is "the single-best, low-risk way to play the new pro-capitalist revolution in Latin America." Cramer reiterated his statement that an investor could devote 20% of his or her portfolio to foreign stocks, and while he also likes Homex and Baidu, he warns that they have already had a run and are too expensive now.
An Amicable Separation: Tyco (NYSE: TYC - News)
Cramer points out that some companies are not as strong as the sum of their parts, and observes that if TYC were to spin off its four divisions: electronic, health care, engineered products and fire and securities, the businesses would be worth more separately. His conservative estimate is that Tyco's breakup would mean a 10% upside for the stock.
CEO Interview: Mackey McDonald: VF Corp. (NYSE: VFC - News)
Commenting on the company's sale of its sluggish Fruit of the Loom business, Mackey McDonald said, "Today's announcement is a big step forward," adding that the sale will improve VFC's organic growth rate and gross margins. Mackey commented that the company will now be in a position to develop its higher-growth businesses and to focus on its shareholders. Cramer would back up the truck and buy VFC.
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Labels: BIDU, BNS, HXM, Jim Cramer, Mad Money, NTLI, RIO, TYC, VFC