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

Get Tech Now: Sundisk (NasdaqGS: SNDK - News)
Cramer says now is the time to buy tech ahead of the back-to-school and holiday shopping season. He likes SNDK, which supplies computer parts, and since manufacturers will need to speed up production in August, Cramer would buy SNDK right away. In addition SNDK is the largest producer of flash technology products, a hot area in tech. The company reported earnings at 30 cents a share and exceeded estimates by 14 cents.
OceanFreight (NasdaqGM: OCNF - News) and Star Maritime (AMEX: SEA - News)
While Cramer has not been a fan of dry bulk shipping in the past, he has changed his mind after discovering how much iron ore and coal is being shipped between countries as global demand increases. His two dry bulk shipping picks are OCNF and SEA which do not offer a dividend yet, but are expected to, since dry bulk shipping is a "classic big dividend" industry. He would not these stocks more than 25 cents from where they are now; OCNF sells at at $22.61 and SEA is $13.24.
CEO Interview: Steven Leer Arch Coal (NYSE: ACI - News)
Cramer asked Leer how coal is going to be profitable when many in Congress calling for a ban on coal. "Coal supplies 50% of our energy and electric generation, and that number is projected to grow," Leer responded. He added coal is the classic cheap fuel and the world is going to continue needing more energy. Cramer commented; "who's to say that out-of-favor energy stocks won't come back?"
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Labels: ACI, Jim Cramer, Mad Money, OCNF, SEA, SNDK