Jim Cramer Blog

Bullish Calls:
Nova Chemicals (NYSE: NCX - News): 'I believe that the chemical companies are radically undervalued, particularly because there are still a lot of Europeans that still want to buy them because of strong currency... I am saying yes to NCX.'Research In Motion (NasdaqGS: RIMM - News): ' ..the highest-growth companies with best balance sheets... I am not backing away from a stock like RIMM.'EMC (NYSE: EMC - News): ' ... was down horribly today, even though the VMWare, but it was a bad day. I would buy EMC.'Hewlett-Packard (NYSE: HPQ - News)Intel (NasdaqGS: INTC - News) Cisco Systems (NasdaqGS: CSCO - News)Avnet (NYSE: AVT - News): 'I've been recommending Avnet Inc. which, weirdly, was at a 52-week high yesterday. I would swap out of IM and buy AVT. Can we wait for AVT to pull back? It just hit a high, but I like it.'
Bearish calls:
Xerox (NYSE: XRX - News): 'I feel that this is a stock that is just going to be nibbling... Don't buy, don't buy.... I am not going to recommend it.'ViroPharma (NasdaqGS: VPHM - News): 'I just recommended it. It went down and, ever since then, I have hated it. I just feel like it's not what you want to do. Sell, sell, sell!'Brocade Communications (NasdaqGS: BRCD - News): 'Huge insider buying. I thought it went down because of Greg Reyes... I know that he was just convicted....don't buy, don't buy.'Ingram Micro (NYSE: IM - News): 'It's down a lot. If I want to buy a distributor, I want something that has a little more value added.'Dun & Bradstreet (NYSE: DNB - News): 'I've always liked that company ... It's still pretty high. It's at $95 ... Don't buy, don't buy.'North American Palladium (AMEX: PAL - News): 'Bernanke doesn't know that this is a deflationary spiral... You cannot be in PAL. I do not want you to stick with PAL.'
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Labels: AVT, BBY. RIMM, BRCD, CSCO, DNB, EMC, HPQ, IM, INTC, Jim Cramer, Lightning Round, Mad Money, NCX, PAL, VPHM, XRX

Brother, Can You Spare a Nickel? North American Palladium Ltd. (AMEX: PAL - News)
Although PAL is known for its palladium, Cramer thinks this $10 stock is a great way to play nickel consolidation. PAL is not yet a well-loved stock, is not covered by any analysts, and if it gets a takeover bid for its nickel, Cramer comments he "can't even imagine how high this orphan stock would jump." He notes nickel prices are rising while PAL's production costs are falling and the company produced 2.7 million pounds of nickel last year. He believes it will get a bid, but warns that it is a speculative stock and investors should use limit orders when buying.
"Statement Buying": L-3 Communications Holdings Inc. (NYSE: LLL - News)
Cramer calls insider buying which occurs when a company is at or near its 52-week high "statement buying" since it is a good indication of an upward move. Insiders cannot buy and sell rapidly like regular investors, but according to SEC rules, they must hold for a specified amount of time. Cramer discussed insider buying at LLL, the "archetypal high-tech defense contractor" which specializes in communications and sensor equipment. Insider buying may be due to the conviction the company will be taken over after the passing of founder Frank Lanza, or because those in the company feel the bears are wrong in believing the Democrats will undermine the war effort. Cramer believes sooner or later the analysts will "break" and upgrade LLL. Right now, however, he thinks the company is sandbagging in an effort to underpromise and overdeliver.

Enterprise Products Partners LP (NYSE: EPD - News)
The second stock close to its 52-week high with aggressive insider buying is EPD, which manages pipes for transporting natural gas. Chairman Dan Duncan, the 34th richest person in America from a list of 400, bought up a large amount of stock while it was at its high, which is an indication the company is undervalued, says Cramer. He concludes EPD is a conserative stock with a great dividend and gives it a triple buy.
Mad Mail: Microsoft (NasdaqGS: MSFT), Yahoo (NasdaqGS: YHOO), Sun Microsystems (NasdaqGS: SUNW), Aeropostale (NYSE: ARO - News), Abercrombie & Fitch(NYSE: ANF - News), JC Penney (NYSE: JCP - News) Federated (NYSE: FD - News)
When a viewer asked if MSFT will buy YHOO or SUNW, Cramer said he doesn't see MSFT taking over SUNW and YHOO is very expensive and hasn't performed well. He imagines some upside if CEO Terry Semel or Sue Decker will leave, since the problem with the stock is a "hall of shame management issue." Another viewer asked about ARO and Cramer commented its is hard to predict where stocks like ARO and ANF will go from one month to the next. He suggests looking at JCP or FD, but only after a Thursday's report, since he doesn't think same-store sales will be good.
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Labels: ANF, FD, JCP, Jim Cramer, LLL, Mad Money, MSFT, PAL, YHOO