Jim Cramer Blog

On Tuesday's show, Cramer started by talking about the acquisition of Commerce Bank (CBH) by TD Bank, and how he feels that Canadian banks will buy more US regional banks because of the strength of the Canadian dollar. Cramer listed 9 other banks that he thinks could be takeover targets; National City (NCC), New York Community Bank (NYB), Comerica (CMA), KeyCorp (KEY), Hudson City Bank (HCBK), M&T Bank (MTB), BB&T (BBT), Fifth Third Bank (FITB), Capital One (COF)
CVS Caremark (CVS): Cramer thinks it was unfairly punished by Walgreen's (WAG) bad quarterly report yesterday. Cramer thinks that CVS will be able to profit for the same reason that Walgreen's had problems because of their merger with Caremark. CVS is now "best of breed" in the pharmacy sector.
Cramer then took a phone call about Wal-Mart (WMT) which he thinks is not a big factor in this sector.
After the lightning round, Cramer was looking for more overlooked IPOs. Today's pick was comScore (SCOR). This stock is the Nielsen of the web and gives companies data to help them advertise better. They are in the early stages of growth.
CEO of Perry Ellis (PERY) was on the show. Cramer thinks the stock is not for him, and asked the CEO some tough questions.
In the last segment, Cramer talked about Baidu.com (BIDU), which he said is up 136% since he recommended the stock. He "commands you" to take your cost basis out of the market to lock in profits.

Labels: BBT, CBH, CMA, CVS, HCBK, Jim Cramer, KEY, Mad Money, Mad MOney Recap, MTB, NYB, SCOR, WMT

On the Runway: KBW Regional Banking ETF (AMEX: KRE - News), National City (NYSE: NCC - News), Comerica (NYSE: CMA - News)
If Wall Street is a "gigantic fashion show," the next fashionable item will be regional banks, said Cramer, since they will make a profit from the Fed rate cut. He prefers KBW Regional Banking ETF to NCC and CMA because the ETF spreads the risk and is a good place to be if a regional bank is taken over. KBW has 50 holdings and a five-year earnings growth over 9.4%. In addition, the ETF has a "weighted average market cap" of over $2 billion. Cramer suggested waiting for the ETF to come down a bit before buying.
All About Advertising: eBay (NasdaqGS: EBAY - News)
While Cramer would wait to buy eBay, he discussed many reasons to like it; Ebay sells at 21 times next year's estimated growth, it has a "pristine balance sheet," it has over $3.6 billion in cash, it has 100million people buying and selling on the site and it owns Skype, Paypal and 25% of Craigslist. However, the next big thing for eBay is advertising; Ebay's revenue from ads increased 96% year over year in the second quarter, and Cramer thinks the estimates that the company will earn 32 cents a share on advertising are too conservative. He recommends this "long term investment" and "digitalization of commerce" play under $34.
The Parent is Alright: United Online (NasdaqGS: UNTD - News)
Cramer says internet provider United Online, which reaches 20% of the online population, is "too cheap to ignore." While it plans to spin off Classmates.com, Cramer prefers the parent to the IPO, because UNTD has a 6% yield, is debt-free and swimming in cash. He approves of the company's cost-cutting strategies in its dial-up operations, since a third of internet users in the U.S. still use dial-up. Cramer would wait for the stock to drop to $14 and says it is a good investment for those who like both safety and risk.

CEO Interview: Jerry Kennelly, Riverbed Technology (NasdaqGM: RVBD - News)
Tech thrived during the last major credit crunch in the 1990s, and Cramer thinks history is repeating itself. Cramer invited RVBD CEO Jerry Kennelly onto the show to discuss the laptop version of the company's Steelhead Mobile product. Kennelly said since workers are now on the job around the clock all over the world, the product will be in demand, since users can do "remote work at the same speed" as they would at the office. Cramer noted there are expected to be 543.1 million mobile office workers by 2009, and would buy the stock under $40.

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Labels: CMA, Ebay, Jim Cramer, KRE, Mad Money, NCC, RVBD, UNTD

General Motors (NYSE: GM - News) and Ford (NYSE: F - News): Cramer is skeptical about GM comments that subprime problems were to blame for the company's lackluster performance when other sectors such as retail have reported great numbers; "I mean, we did go up 15 out of 16 days, despite the fact that we were torching our houses to get the money from Allstate." He added although Ford is a turnaround story, there is not yet tangible evidence.
Barclays' (NYSE: BCS - News), Fifth Third (NasdaqGS: FITB), Comerica (NYSE: CMA - News), SunTrust (NYSE: STI - News), America (NYSE: BAC - News): On Barclay's offer for ABN Amro, Cramer would buy FITB, CMA, and STI here, but comments BAC has acquisition addiciton; "There is no 12-step program for what BAC is doing... They would have to hit bottom. They have to hit banking skid row."
AstraZeneca (NYSE: AZN - News) Medimmune (NasdaqGS: MEDI), Celgene (NasdaqGS: CELG), Cephalon (NasdaqGS: CEPH), Johnson Controls (NYSE: JCI - News), Cummins (NYSE: CMI - News): Cramer called AZN's acquisition of MEDI a "classic overpay" and may make CELG and CEPH seem undervalued. As time was running out, Cramer said, "I like coal! Johnson Controls ... Cummins $9!"
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Labels: AZN, BAC, BCS, CEPH, CMA, CMI, GM, JCI, Jim Cramer, Jim Cramer's Stop Trading, MEDI, STI