Jim Cramer Blog

In November, 2007, Cramer identified five stocks that he felt were made of Kevlar and could withstand the ailing economy and sub-prime mortgage crisis. To date those five stocks are up 8.8%, while the S&P 500 is down, 3.3%.
Cramer said it wasn't smooth sailing for his "bullet-proof" stocks at the start. Just a week after he mentioned the names, the portfolio was down a quick 6%. "But that's the point," he said, "we bought these stocks because they bounce back."
Cramer's first pick in his portfolio is Altria (MO), a stock which he owns for his charitable trust Action Alerts PLUS. Since the recommendation, Altria has spun off its Phillip Morris International (PM) division, and collectively the stocks are up 4.7% since November.
Cramer said he's a fan of both companies, especially Altria's 5% dividend yield.
Next on the list was Freeport-McMoran (FCX), another stock which he owns for his charitable trust Action Alerts PLUS.
Cramer called Freeport, which is up 11.9% since he mentioned it, the best copper story in the world.
Third in the portfolio was another Action Alerts name: Foster Wheeler (FWLT). Although Foster has been a laggard in the portfolio, down 1% since November, Cramer said the company is still levered to high energy prices around the world and here too and he's been buying more shares.
Fourth was Transocean (RIG), the star performer in the group, up 27.6%. Cramer called Transocean the best deep-water contract driller out there with great earnings visibility. He advised viewers to take some profits, but remained bullish on the company.
Finally, Cramer revisited Medco Health (MHS), a stock which is up just 0.7% since the November mention. Cramer said that while Medco makes its money whether or not the economy does well, it has more competition that he originally thought and perhaps the traditional defensive stock wasn't right for this portfolio. He told viewers "if it rallies, I'd sell it."
Published By TheStreet.com

Labels: FCX, FWLT, Jim Cramer, Mad Money, MHS, MO, RIG

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Fossil (NasdaqGS:FOSL - News) reports earnings on Tuesday before the bell; look for $0.67EPS. FOSL's Short Term PowerRating is 6.
Medco Health Solutions (NYSE:MHS - News) is expected to report $0.41 EPS on Tuesday before the stock markets open. MHS's Short Term PowerRating is 6.
Analysts are watching for Medtronic (NYSE:MDT - News) to announce $0.62 EPS before the bell rings on Tuesday morning. MDT's Short Term PowerRating is 4.
When OfficeMax (NYSE:OMX - News) reports quarterly results on Tuesday before the bell, look for $0.52 EPS. OMX's Short Term PowerRating is 5.
Marvel Enterprises (NYSE:MVL - News) is set to report $0.29 EPS before the market opens on Tuesday. MVL's Short Term PowerRating is 6.
Steve Madden (NasdaqGS:SHOO - News) is looking to report $0.18 EPS on Tuesday before the market opens. SHOO's Short Term PowerRating is 5.
Analysts are expecting Wal-Mart (NYSE:WMT - News) to announce $1.02 EPS before the market opens on Tuesday. WMT's Short Term PowerRating is 6.

Labels: FOSL, Hot Stocks, MDT, MHS, MVL, OMX, SHOO, WMT

Today's show began by Cramer telling us how to survive a recession caused by the real estate market because of the sell off that has happened the past two days. He said that you should sell any stock that has anything to do with housing, home building, finance, consumer spending, and any company that needs to borrow money to do business.
Then Cramer went to the phonelines. The first caller asked if we should be concerned about inflated assets being held by financial stocks, and Cramer said that these companies don't know what they are holding and that the industry is in disarray. Next caller asked about the price of oil, and Cramer said he is sticking with his $100 per barrel prediction. The last caller asked if Cramer still recommends investing in gold, and Cramer said that he thinks you should keep 10% of your portfolio in gold and gold related stocks.
Cramer then gave some stocks that he thinks will do well even if a recession happens. Altria (MO) has a large international business, a strong dividend, and its product is in high demand. The next stock is Freeport McMoran (FCX), which is also has good international sales and might be a buyout target in the near future. The next stock is Foster Wheeler (FWLT). Cramer likes this stock because it had a great 3rd quarter and he could see it doubling because it is strong in green businesses and oil. Cramer's next stock is Transocean (RIG), which Cramer likes because it will merge with GlobalSantaFe (GSF) and because it makes all its money overseas. Finally, Cramer likes MedcoHealth (MHS) because it is a medical cost containment play. ALl of these stocks were up today, even though the market was down.
After a break, Cramer took a few more calls. The first caller asked about the effect of China's plan to sell dollars, and Cramer thinks it is a lot of talk without any action. The next caller also asked about the falling dollar's effect on foreign investment, and Cramer said that he thinks a weak dollar gives international companies a chance to invest in the US.
"Sell Block." The first stock was Under Armour (UA) because it has lost its momentum, and Cramer doesn't think it will come back. Cramer also thinks you should sell (PMI), (MGIC), (MTG), and (ABK) if you own them because they will be drug down by the mortgage problems despite the fact that they look cheap now. He also thinks some of them might go out of business.
Mad Mail: One email asked about the shippers reporting earnings next week, which are (DRYS), (FRO), (EXM), and (TBSI), and Cramer said to buy half your position now and wait until after earnings to buy the rest. Another email praised Cramer for his interview with the CEO of Nastech (NSTK) yesterday, and Cramer said he can't sleep because he got that stock so wrong.
Cramer said it might be time to buy some more tech, such as Cisco (CSCO) and Google (GOOG).

Labels: CNBC, FCX, FWLT, GSF, Jim Cramer, Mad Money, Mad MOney Recap, MHS

Cramer started off Monday's show by recommending a stock that he thinks is inexpensive relative to its earnings and growth. The stock is Google (GOOG), which reported huge earnings on Thursday, and Cramer thinks it is cheap because the drop in the market on Friday kept investors from pricing the growth into the stock.
Cramer then went to the phonelines. The first caller asked about Celgene (CELG), and Cramer said to back up the truck since it's down 6 points. The next caller asked about SINA (SINA), and Cramer said that Baidu.com (BIDU) and Focus Media (FMCN) were better China plays.
Apple (AAPL): Next Cramer said Apple is cheap after the earnings they reported today, but the cheap stock that he really likes is Intuitive Surgical (ISRG). Cramer thinks that this stock is even cheaper than Google, and it also did well on Friday due to strong earnings. He thinks they will continue to grow, and that earnings will stay strong as they sell replacement parts for their surgical instruments.
After the lightning round, Cramer went over another stock that he thinks will benefit from another trend he found in the book "Microtrends." Also skin cancer has been increasing rapidly, and Schering-Plough (SGP) owns Coppertone, making it the best play on this trend. SGP's CEO was on the show to talk about the most recent earnings report and the future prospects of the company.
Cramer then did a segment on Seaspan (SSW), a container shipper. He discussed the company with the CEO, and then said that he thinks the dry bulk shipping stocks are best, but this is a good container shipper.
Sudden Death. The first caller asked about Unit (UNT), which Cramer doesn't like because it's a domestic oil driller. The next caller asked about Cypress Semiconductor (CY), which Cramer likes because it has SunPower (SPWR) as a subsidiary. The last caller asked about MedcoHealth (MHS), which Cramer gives two thumbs up.

Labels: AAPL, CELG, CY, GOOG, ISRG, Jim Cramer, Mad Money, Mad MOney Recap, MHS, SGP, SINA, SPWR, SSW

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.
NYMEX Holdings Dec 155 Calls (NYSE:NMX - News). NMX's PowerRating (for Traders) is 5.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Intuitive Surgical Nov 220 Puts (NasdaqGS:ISRG - News). ISRG's PowerRating (for Traders) is 4.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
United Therapeutics Nov 80 Calls (NYSE:UTHR - News). UTHR's PowerRating (for Traders) is 5.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
Goldman Sachs Nov 200 Puts (NYSE:GS - News). GS's PowerRating (for Traders) is 7.
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.
DENTSPLY International (NasdaqGS:XRAY - News). XRAY's PowerRating (for Traders) is 6.
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.
Medco Health Solutions (NYSE:MHS - News). MHS's PowerRating (for Traders) is 6.
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.
H.J. Heinz (NYSE:HNZ - News). HNZ's PowerRating (for Traders) is 4.
Published By TradingMarkets.com

Labels: GS, HNZ, ISRG, MHS, NMX, stock options, UTHR, XRAY

Stocks opened the session lower after disappointing economic data caused investors to be wary of current economic conditions. Later in the day, equities accelerated their losses after credit fears once again took control of the market. All the major stock indices closed near their lows for the day. Over in the energy patch, oil prices also ended the day slightly lower.
On the economic docket today, the New York Conference board said that consumer confidence this month plunged the most since Hurricane Katrina nearly two years ago. The index fell to 105, from a revised 111.9 in July, the conference board said. Even though the readings were low, economists were looking for a larger drop to 104. Elsewhere, home prices fell the most in 20 years according to the Case-Shiller report, which recorded a -3.2% drop in home sales nationally in the second quarter.
In company-related news, consumer and commercial finance company CIT Group (NYSE: CIT - News) announced that it would close its mortgage lending operations and take a $35 million pretax charge in its third quarter for severance and exit costs. Last month, the company reported a loss due to a $495.3 million after-tax charge to reduce the value of some home loan receivables. The company also announced that it is cutting 550 jobs.
Shares of financial service company State Street (NYSE: STT - News) plunged after it reported in filings that it has exposure to about $29 billion worth of commercial paper conduits. Conduits are retail and commercial loans that are bundled into packages and backed by short-term debt from the commercial paper market. Also plaguing the company are reports that of one of its bond funds has lost more than a third of its value in recent weeks.
Internet service provider (ISP) EarthLink (Nasdaq: ELNK - News) shares rose after the company announced that it will cut 900 jobs or half of its work force and close four offices in an attempt to reduce operating costs. It also announced that it will repurchase $200 million of its own stock. The company cut its sales range for the year to $1.19-$1.21 billion, down from a previous range of $1.23-$1.24 billion. Full-year net loss is expected to come in between -$79 to -109 million.
On the deal front, pharmacy benefit manager Medco Health Solutions (NYSE: MHS - News) agreed to buy blood-glucose test maker Polymedica (Nasdaq: PLMD - News) in an all-cash deal valued at $1.5 billion, or $53 a share, which represents a 17% premium to where the shares closed on Monday. Medco says the deal will help it boost sales of its diabetes care products.
By the BullMarket.com Staff

Labels: CIT, ELNK, MHS, PLMD, STT

Fun and GameStop (NYSE: GME - News)
Ahead of "the biggest video game event of the year," the September release of Halo 3, the flagship enterprise of Microsoft's Xbox video game system, Cramer would buy GME rather than Microsoft, since he thinks Halo 3's success will barely move MSFT's needle. GME is up 33% since Cramer recommended it in March. Cramer thinks of video games as a staple comparable to consumer goods, since they will always be bought in lean times, but cautioned viewers to buy GME only on weakness after Thursday's conference call, and advised against making the trade if the company misses estimates of between 9 cents and 13 cents. He would sell GME after Halo 3's release.

Penny Pinching: Dollar Tree (NasdaqGS: DLTR - News), Dollar General and Family Dollar (NYSE: FDO - News)
Although there is room for confidence that stocks will rise, the consumer is likely to cut down on spending by shopping at low-end stores. Cramer calls DLTR best-of-breed of inferior goods, since it has increased traffic for the sixth consecutive quarter, is accepting food stamps and debit cards and is increasing profits by selling merchandise that costs more than a dollar. In addition, DLTR should outperform rival Dollar General, which was recently taken private and is closing stores and FDO, which has double the stores of DLTR and may be facing saturation. Cramer would wait five days before buying DLTR, which has a sales growth of 4%.
CEO Interview: David Snow, Medco Health Solutions (NYSE: MHS - News)
David Snow reported $60 billion worth of brand drugs are "going generic between now and 2012," which means greater sales volume. The largest mail-order pharmaceutical distributor is averaging 6% growth yearly and is looking ahead with a "straight line of sight." Cramer would buy MHS on any decline.
Published By SeekingAlpha

Labels: DLTR, FDO, GME, Jim Cramer, Mad Money, MHS

PepsiCo (NYSE: PEP - News), Pfizer (NYSE: PFE - News), Schering-Plough (NYSE: SGP - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Altria (NYSE: MO - News), CVS Caremark (NYSE: CVS - News), MedcoHealth (NYSE: MHS - News), Cardinal Health (NYSE: CAH - News)
Cramer says almost everyone, including him, is "getting killed" in this market, and he wants viewers to understand "why it's so cataclysmic out there, so at least they have the grounding to say, 'OK, I'm willing to ride this out." While some suggest getting out of stocks, Cramer recognizes many people invest for the long term. However, he added; "What I'm trying to do is focus on what can work and what will really be hurt, not what's working, because nothing's working." Cramer said he got through the credit crunch in 1990s by focusing on the bull market and on 20 stocks that weren't losing. Examples may be PEP, PFE, SGP, K, GIS, MO, CVS, MHS, CAH. While he may have 10 to 1 bears out of every stock pile, Cramer urges viewers to "recognize that as the Federal Reserve continues to do a de facto tightening, you're going to continue to have spillover."
Published by SeekingAlpha

Labels: CAH, CVS, GIS, Jim Cramer, K, MHS, MO, PEP, pfe, SGP, Wall Street Confidential

HMS Holdings (NasdaqGS: HMSY - News): 'We've always liked this. This is one of those companies ... that do cost control for medical.'MedcoHealth Solutions (NYSE: MHS - News)Cardinal Health (NYSE: CAH - News)AT&T (NYSE: T - News)EMC (NYSE: EMC - News): 'I think that EMC is a better way to play VMware right now.'Intuitive Surgical (NasdaqGS: ISRG - News): Freeport-McMoran (NYSE: FCX - News): 'This is a gold company and a copper company in a deflationary spiral mandated by the Federal Reserve. ... Am I backing away from it? No. ... I will say bull to Freeport.'First Solar (NasdaqGM: FSLR - News)Exelon (NYSE: EXC - News): 'Well-run ... can do well. ... I say two thumbs up to Excelon/'Hawaiian Electric (NYSE: HE - News): 'I like the utilities here. This one's got a very high yield. It's in a growth market. ... I stick with Hawaiian Electric.'
Bearish calls:
J.C. Penney (NYSE: JCP - News): 'I have been doing some work on J.C. Penney. 52-week low ... retail very hard to own ... I like to wait and see the quarter.'Posco (NYSE: PKX - News): 'It's not a House of Pain anymore. It's literally a Nation of Pain ... Don'tBuy, because it can go lower.'One National Banc (NYSE: ONB - News): 'Every bank is for sale here. ... I cannot recommend a bank on this show. I can't because I like other sectors so much more. Don'tBuy Don'tBuy Don'tBuy.'BHP Billiton (NYSE: BHP - News): ' I am not going to walk away from these, but you have to understand, these stocks are in the crosshairs of the Fed, and they are going to go down.'Fuel-Tech (NasdaqGM: FTEK - News): ' ... is so speculative in this environment.'Downey Financial (NYSE: DSL - News): 'Downey is a stock that will fly up 20 points when the Fed decides to blink. ... I think Downey's book value is pretty clean. I am surprised it got down to $47. I can't back away here.'VMware (NYSE: VMW - News): '$60 is my target, and we're already up another $7 today.'Accuray (NasdaqGM: ARAY - News): 'Accuray, frankly, is not a stock that I can pull the trigger on.'Akamai (NasdaqGS: AKAM - News): 'We know that Akamai's the wrong thing.'
Published by SeekingAlpha

Labels: ARAY, BHP, CAH, DSL, EMC, EXC, FCX, FSLR, FTEK, HE, HMSY, ISRG, JCP, Jim Cramer, Lightning Round, MHS, ONB, PKX, T, VMW

Doomsday Scenario: MDC Holdings (NYSE: MDC - News), DR Horton (NYSE: DHI - News), Pulte Homes (NYSE: PHM - News) and Toll Brothers (NYSE: TOL - News)
Cramer created a doomsday scenario which probably will not happen, since the bank crisis in 1990 was "ten times worse" than the problems of today. However, he would avoid any companies which deal with borrowing and lending money, particularly housing: DHI, PHM and TOL. The only housing stock that isn't hopeless now is MDC, but Cramer would still not buy. He would also avoid financials amid bearish fears that loans will not be repaid and yields will shrink; "You can't own anything that even walks by a mortgage," Cramer warned. He would not touch companies which need financing for deals. However, Cramer added; "the worst-case scenario will be derailed," and the doom and gloom will not really materialize
If Ben will Budge: Centex (NYSE: CTX - News), Lennar (NYSE: LEN - News), Bear Stearns (NYSE: BSC - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
Cramer discussed two scenarios which could reverse doomsday: overseas buyers and an interest rate cut. He is confident that if the Federal Reserve reduces rates by only one percent, housing will make a comeback (especially DHI, PHM, CTX, LEN), financials GS and C will recover and the Dow will jump to 15.
Playing it Safe: Celgene (NasdaqGS: CELG - News), Kellogg (NYSE: K - News), Schlumberger (NYSE: SLB - News), Medco Health Solutions (NYSE: MHS - News), Kimberly-Clark (NYSE: KMB - News), Amazon.com (NasdaqGS: AMZN - News), Google (NasdaqGS: GOOG - News), Apple (Other OTC: APPL.PK - News) and Research in Motion (NasdaqGS: RIMM - News)
Even if the Fed doesn't budge rates, investors can still create a safe portfolio consisting of CELG, K, SLB, MHS and KMB. He also directed viewers to his six wild bull markets: oil and oil services, agriculture, machinery, aerospace, infrastructure and minerals, and his four horse men of tech: AMZN, GOOG, APPL and RIMM.
Mad Mail: Brookfield Asset Management (NYSE: BAM - News), Rite Aid (NYSE: RAD - News), ValueClick Inc. (VLCK)
Cramer urged a mailer not to sell BAM, because it is an international company, unaffected by subprime woes, and is similar to Warren Buffet's Berkshire Hathaway; "If you sold Warren Buffet because of a housing problem, forget it!" To a mailer concerned about RAD, Cramer said, "The integration is going very well. I'm holding your hand on RAD, and begging you not to sell it." Concerning VLCK's bad quarter, he commented, "I don't have my arms around it yet. To me, the stock looks like it's going to see $18, before you see a bottom."
Published By SeekingAlpha

Labels: AAPL, AMZN, BAM, BSC, CELG, CTX, DHI, GOOG, GS, Jim Cramer, K, KMB, LEN, Mad Money, MDC, MHS, PHM, RIMM, SLB, TOL

Medco Health Solutions Inc., the biggest U.S. prescription benefits manager, said Friday its second-quarter profit jumped 26 percent on increased dispensing of high-margin generic drugs and mail-order prescriptions.
The results handily beat Wall Street expectations; Medco raised its 2007 profit forecast and its shares initially rose nearly 3 percent.
Franklin Lakes-based Medco, which processes prescriptions for about 60 million Americans, said net income rose to $214.9 million, or 76 cents per share, from $170.9 million, or 56 cents per share, a year ago.
Excluding a 10-cent charge for the gradual writedown of contracts Medco received when it was spun off from drugmaker Merck & Co., second-quarter earnings were 86 cents per share.
Revenue rose 4.4 percent, to $11.05 billion from $10.59 billion a year earlier, on higher prescription volumes due to new clients and on drugmakers raising prices on some brand-name drugs.
Analysts surveyed by Thomson Financial anticipated profit of 78 cents per share on revenue of $11.27 billion.

Labels: Medco Health Solutions Inc., MHS

Bull Meat Barbecue
Although Thursday's selloff resembled a "bull meat barbecue," Cramer encouraged viewers not to lose heart and reiterated his principle that there is always a bull market somewhere. He made a checklist of three kinds of stocks to avoid: Stocks, such as housing, which need low interest rates to go higher, stocks (restaurants, retail etc.) with too much leverage to the domestic economy, and companies which must borrow to make an acquisition. Cramer emphasized the importance of selling these stocks, especially for those who did not lighten their portfolios before the selloff and those who cannot take the pain and wait for these sectors to recover.
Game Plan for Next Week: Pepsi (NYSE: PEP - News), Colgate (NYSE: CL - News), Kellogg (NYSE: K - News), Kimberly Clark (NYSE: KMB - News), Caterpillar (NYSE: CAT - News), Foster-Wheeler (NasdaqGS: FWLT - News), Freeport McMoRan (NYSE: FCX - News), Schlumberger (NYSE: SLB - News), Halliburton (NYSE: HAL - News), Boeing (NYSE: BA - News), Bunge (NYSE: BG - News), Monsanto (NYSE: MON - News), Dell (NasdaqGS: DELL - News), Hewlett-Packard (NYSE: HPQ - News), Cisco Systems (NasdaqGS: CSCO - News), Celgene (NasdaqGS: CELG - News), Merck (NYSE: MRK - News), Medco Health (NYSE: MHS - News)
Because on The Street, a trauma does not usually follow a trauma, Cramer expects a bounce at least by Monday, and would get rid of financials, retail and restaurants and buy soft goods, such as PEP, CL, K and KMB. Dismissing worries of a potential worldwide slowdown, Cramer likes machinery and mining, particularly CAT, FWLT and FCX. He also recommends oil, although natural gas has been tricky, and his picks are SLB and HAL. Cramer's favorites among aerospace and agriculture include BA, BG and MON, and he adds the tech sector has been hot and would buy DELL, HPQ and CSCO. In the healthcare sector, he especially likes CELG and MHS and doesn't mind MRK.
Pscyhed Up with Sycamore Networks (NasdaqGM: SCMR - News)
After the selloff devastation, there is still one thing Cramer can count on; that tech will continue to thrive in the late summer as it does every year. Cramer likes SCMR as a speculative telecom tech stock, since the company has almost a pure play on optical services. SCMR is not best-of-breed, but he is still bullish because SCMR does not yet have any analysts covering it and he likes SCMR's floor; it's at $4 a share but has the equivalent of $3.23 a share. In addition, the company's sales have been rising and 60% of its revenue is international. While SCMR is not as strong as Cisco or Cienna it could make investors more money.
Mad Money: Hoku Scientific (NasdaqGM: HOKU - News), Genzyme (NasdaqGS: GENZ - News), Celgene (NasdaqGS: CELG - News)
When a mailer asked about Hoku, Cramer recalls having recommended it at $6, and it has recently dropped from $11 to $8. At this level, Cramer says, it is too speculative, but he thinks it will repeat its upward trend after it falls back to $7 or $6. Another mailer wanted to know Cramer's opinion of GENZ; while the fall is good for biotech in general, he prefers Celgene to GENZ. On the issue of whether Freeport McMoRan's report of strong cash flow will be good for Caterpillar, Cramer says he likes CAT, but it has been hit hard for its North American exposure. While he says CAT is "your best play" he adds currently he is "loathe to buy more."
Published By SeekingAlpha

Labels: BA, BG, CAT, CELG, CL, CSCO, DELL, FCX, FWLT, HAL, HPQ, Jim Cramer, K, KMB, Mad Money, MHS, MON, MRK, PEP, SLB

I'ts a Given: Given Imaging (NasdaqGM: GIVN - News)
Cramer's speculative pick on Friday was Israeli wireless medical imaging company, GIVN, which is perfecting a PillCam video capsules which are a more comfortable, convenient way of checking for gastronomical problems than traditional methods. He pointed out his track record of making viewers money with medical device companies such as Hansen Medical, Micrus Endovascular,Kyphon, and Intuitive Surgical, and he feels the technology behind the PillCam is much simpler than that of other devices. While investors are taking a "calculated risk" Cramer expects big earnings from Given and notes its guidance inspires confidence.
Big Brother is Watching You: Omniture (NasdaqGM: OMTR - News)
The next big thing in internet advertising is OMTR, according to Cramer, since the company monitors what people are watching online; "With Omniture, you can tell advertisers what is hot at the exact moment," Cramer said. The time for Yahoo, Google and Microsoft to buy this stock was yesterday, Cramer commented, and if OMTR's shares were valued the same as Microsoft valued aQuantive's before the acquisition, OMTR would be sitting at $35 instead of $2o.66. The company gave a secondary offering and sold 8 million shares at $18, which is an indication that " no amount of stupid sellers can knock this thing down ... There's too much demand." However, Cramer warned he is recommending this speculative stock on a takeover bid and not on its margins.
Game Plan for the Coming Week: Bear Stearns (NYSE: BSC - News), XTO Energy (NYSE: XTO - News), Medco Health (NYSE: MHS - News), Express Scripts (NasdaqGS: ESRX - News), Nike (NYSE: NKE - News), Kroger (NYSE: KR - News), Oracle (NasdaqGS: ORCL - News), McCormick (NYSE: MKC - News), Rite Aid (NYSE: RAD - News), Research In Motion (NasdaqGS: RIMM - News)
Cramer said the failure of two hedge funds does not spell bad news for BSC, which he would buy on Thursday. The cause was a hedge fund manager's "stupid mistake" and Cramer doesn't think BSC is dependent on the success or failure of the funds. He would pay attention to companies such as XTO, MHS and ESRX which are speaking at the Wachoviaand Jeffries conferences next week. He suggests setting up half a positon in NKE before its earnings report and the other half after a subsequent drop. Cramer would buy KR, since it doesn't get enough respect, as well as Oracle and thinks MKC is a good low-risk stock. He predicts RAD, which reports on Thursday, will continue to "motor up" and he would buy it on any weakness. For those who don't yet own RIMM, Cramer suggests picking it up after its earnings report.
Mad Mail: Posco (NYSE: PKX - News), Cummins (NYSE: CMI - News), Spartan (NasdaqGS: SPAR - News)
Although he didn't mention the PKX when he discussed 20 of Buffett's stock picks on thursday's Mad Money progam, Cramer thinks it is a good, inexpensive steel company. Cramer thinks CMI is still rising but would beware of SPAR, which is down a two points.
Published by SeekingAlpha

Labels: BSC, CMI, ESRX, GIVN, Jim Cramer, KR, Mad Money, MHS, MKC, NKE, OMTR, ORCL, PKX, RAD, RIMM, SPAR, XTO

Lehman Brothers (NYSE: LEH), Goldman Sachs (NYSE: GS), Bear Stearns (NYSE: BSC), Gilead (NasdaqGS: GILD), Hologics (NasdaqGS: HOLX), Medco Health (NYSE: MHS), Cisco (NasdaqGS: CSCO), Level 3 (NasdaqGS: LVLT), Garmin (NasdaqGS: GRMN), Ciena (NasdaqGS: CIEN), Chicago Bridge and Iron (NYSE: CBI), Allegheny Tech (NYSE: ATI)
Cramer called LEH, GS and BSC "premium franchises" and would "load the boat up." He feels LEH has been given unfair estimate cuts and GS trades at a price-to-earnings multiple not worthy of even a "crummy plastics company." He also likes Gilead, Hologics, which he recently purchased, and Medco Health, which rose $3 on a federal contract and dropped down again. Other picks include Cisco, "the biggest percentage gainer in the S&P," LVLT, a "speculative fave," Ciena and Garmin. Finally, Cramer added CBI and ATI, his 2006 stock of the year, to the list. However, he would buy none of these picks if the four-and-a-halfs of 5/17 or the Bellweather bond continues its descent. It moved down from $100 to $94 on Thursday, and a lower price means a higher yield and a more attractive bond market. However, if it increases to $96-$97, Cramer would still be bullish on the above-mentioned stocks.
The Soda Ash Wars: FMC Corp. (NYSE: FMC)
Rumors the Chinese government is considering an end to tax rebates for their soda ash exporters is good news for FMC, which is the second largest producer of soda ash, a substance used to make such diverse items as glass, cleansers, film and bricks. However, Cramer emphasizes this is just a rumor, and would buy the stock down, since it has dipped since its recent spike. FMC uses a cheaper production process than that of the Chinese, it has pricing power because it is part of a cartel, and its agricultural chemical business is "incredibly strong," says Cramer.
Major Miner: Sterlite Industries
Sterlite, which will trade under the symbol SLT, is India's largest mining company, has "steroidal growth," and has China close by as a huge consumer. Sterlite has a 42% market share in copper, along with some aluminum, and is part of an "unfair" zinc duopoly. Cramer likes privatized companies like Sterlite because the government doesn't want "the deal to blow up in their voters' faces, so they're all priced below what they should be." He suggests buying the stock at a discount, since he expects it to go up, and sets the maximum entry point at $14 with an exit point at $20.
CEO Interview: Gary Butler, Automatic Data Processing (NYSE: ADP)
Gary Butler discussed ADP's the recent $2 billion spinoff of its brokerage business which leaves "a faster growth business, which is very focused and which we think will give us a tremendous return on management." He added; "We operate in a huge market where there is $80 billion of opportunity between the U.S. and globally, so we think the appreciation for our shareholders will be much stronger." With its consistent cash surplus, ADP will continue its buybacks and dividend increases, said Butler and when Cramer asked if ADP would go private, Butler said he would prefer to return value to shareholders rather than to private equity firms; "When you have a company that grew EPS 25% last year and will be over 20% this year ... and you can continue to grow the share price, I think we can deliver more long-term value by staying the course," Butler said.
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Labels: ADP, ATI, BSC, CBI, CIEN, CSCO, FMC, GILD, GRMN, GS, HOLX, Jim Cramer, LEH, LVLT, Mad Money, MHS

At Your Laser: Ionatron (NasdaqGM: IOTN)
One stock Cramer likes for the CNBC Million Dollar Portfolio Challenge and even more for an actual speculative play is IOTN which produces lasers. The company makes both lethal and non-lethal lasers which are effective in locating and detonating explosive devices. The stock fell from $14 to $5 last May when it was passed up for a military contract, but IOTN has improved its technology to fit devices on existing vehicles, and Cramer predicts it will get the contract this time around and squeeze the shorts. He would do homework before buying the stock.

A Roll of the Dice: Penn National Gaming Inc. (NasdaqGS: PENN)
Next on Cramer's list of attractive takeover targets for private equity firms is PENN, a gaming company which is not among the most famous names, but gives "regular people all over the country the opportunity to foolishly flush their hard-earned money down the slots." The purchase of Harrah's is proof that private equity firms would consider a gaming play, and since PENN is smaller and cheaper, it would be easier to purchase. He predicts PEN will be taken over at a premium; "I think this one could make you over 30%, if you play your cards right," Cramer said.

Game Plan for the Coming Week: Vulcan Materials (NYSE: VMC - News), Avon (NYSE: AVP - News), Quest (NYSE: Q - News), Procter & Gamble (NYSE: PG - News), Medco Health (NYSE: MHS - News), Wyndham Hotels (NYSE: WYN - News), General Cable (NYSE: BGC - News), Chipotle Mexican Grill (NYSE: CMG - News), Buffalo Wild Wings (NasdaqGS: BWLD), Allergan (NYSE: AGN - News), Transocean (NYSE: RIG - News), Trinity Industries (NYSE: TRN - News), American Railcar (NasdaqGS: ARII), Celgene (NasdaqGS: CELG), Charter Communications (NasdaqGM: CHTR), Level 3 (NasdaqGS: LVLT), Anderson's (NasdaqGS: ANDE), Estee Lauder (NYSE: EL - News), KBR Inc. (NYSE: KBR - News)
Monday: Cramer said the best strategy for the coming week is to grab winners ahead of their reports, and added there are so many great names, it may be hard to choose. On Monday, he likes VMC, up 82% with room to run.
Tuesday: Cramer has freed AVP from permanent residence on his Sell Block segment and predicts AVP will hit a "homerun." The stock is up a little over a dollar and has great BRIC exposure. Although Quest has had a 43% gain, Cramer is still backing it, and anticipates the announcement of a buyback or a dividend increase. He thinks PG will join the ranks of Pepsi and Coke thanks to its international success. MHS is "a member of the pantheon of consistency if there ever was one," since it is leveraged to drugs going generic and off patent. Cramer likes WYN as a baby boomer play and expects rosy numbers. After the bell, GC is a pick Cramer believes will go higher, although it has had a recent run-up. Concerning CMG and BWLD, he said, "I praise these stocks endlessly and correctly. I'm not stopping now."
Wednesday: Although Allergan is up 23% and "everyone is freaking out about competition," Cramer is not worried. He still likes RIG, but since it has risen 11%, Cramer would wait for it to come in a bit. He is also bullish on rail stocks TRN and ARII.
Thursday: Cramer says CELG has been "perking along" up from under $55 in February to over $61 now and predicts it will rally. He would sell CHTR before the quarter and buy it back. He reiterated his bullishness on LVLT and noted its strong organic growth and improved balance sheet. Cramer is looking forward to witnessing a short squeeze when ANDE reports; "We're going into ethanol harvest season. What are these people thinking? Go long, not short." He also likes EL as "the quintessential weak-dollar play."
Friday: Cramer suggests viewers invest in KBR "the only overlooked infrastructure play left on Earth," and says KBR will follow other giants in the sector, which have rallied.
Mad Mail, Cummins Engine (NYSE: CMI - News): Cramer congratulates those viewers who heeded his call to buy CMI and made some money; "We really nailed that one," he said.
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Labels: AGN, AVP, BGC, CMI, EL, IOTN, Jim Cramer, KBR, Mad Money, MHS, PENN, PG, Q, RIG, TRN, VMC, WYN