Jim Cramer Blog

Exxon (XOM), Conco-Phillips (COP), Schlumberger (SLB), Ultra Petroleum (UPL), Apache (APA), Anadarko (APC), XTO Energy (XTO), Arch Coal (ACI), Peabody Energy (BTU), First Solar (FSLR), Applied Materials (AMAT), MEMC Electronics (WFR), Mosaic (MOS), Deere (DE), CSX (CSX), Chicago Bridge and Iron (CBI), Jacobs Engineering (JEC), Shaw Group (SGR)
Contrary to popular belief, retail did not cause the rally in the Dow and the Nasdaq, but the culprit was oil, which is the umbrella that makes everything work. Not only did oil stocks like XOM, COP and SLB do well, but Cramer says oil will fuel other stocks the energy sector such as UPL, APA, XTO, ACI and BTU, as well as alternative energy plays FSLR (which reported a better-than-expected quarter and historically fabulous upside guidance), AMAT and WFR. Cramer considers ag stocks as members of the energy sector, given the development of ethanol, and would look at MOS, DE. He added rail such as CSX, and infrastructure, CBI, JEC and SGR will also rise with the oil umbrella.
Conviction Stock: FMC Corp (FMC)
A rally one day may spell a down day the next, and it is hard to know what a stock is really worth in this mad market, said Cramer. He was looking for a conviction stock which could give a little bit of certainty about what it was worth, and came up with FMC, a soda ash company in an underexposed sector which is currently enjoying a silent bull market. Soda ash is used to make glass, brick, water softener and most importantly, agricultural chemicals. Cramer says he feels certain that FMC will reach $70, a 30% upside.

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Labels: ACI, AMAT, APA, APC, BTU, CBI, COP, CSX, DE, FSLR, JEC, Jim Cramer, Mad Money, MOS, SGR, SLB, UPL, WFR, XOM, XTO

Erin Burnett hosted. Melissa Lee of CNBC says the financial and tech sectors are down for the third day in a row. IBM and Hewlett Packard are among the top losses. Jeff Auxier, of Auxier Focus Inv. says volatility is normal an healthy because it takes out investors' egos. He says it is a great time to invest if you can be patient. Zimmer Holdings and Telef de Mexico are his top picks for the day. Next, David Malpass of Bear Sterns comments on the drowning dollar. He says the rest of the world is getting richer much quicker than our economy is growing right now. He says we have a small business economy with growth based in innovation, and with time we can improve our weak dollar situation. UPS is set to raise shipping rates by 5% by the beginning of 2008. Julia Boorstin of CNBC reports on the Writers Guild of America Strike on day 5. She says there is an upside for investors in the way of movie rentals and DVD mail order such as NetFlix. The logic behind this is the lack of new content and material for daily television, resulting in a consumer increase in theatre and rental establishments. Next topic was the growing oil prices. Crude Oil, at $96/barrel has obviously been a main concern of many consumers and investors. Bruno Stanziale of Bank of America says that ultimately, it is not possible that we will hit $100 a barrel before 2008. He says the oil prices are due to a lack of demand, as well as a change in market participation. Next, NovaGold of Alaska, announces deal with Barrick Gold to begin Donlin Creek Project. They will be working on projects in Alaska and Western Canada. They will mine gold copper and silver, and jointly owns or partnerships with Rio Tinto and Barrick Gold. Stop trading with Jim Cramer was next. ShawGroup (SGR), Foster Wheeler (FWLT), First Solar (FSLR), and MEMC Electronics (WFR) are his picks for the day.

Labels: CNBC, Crude Oil, Erin Burnett, FSLR, FWLT, HPQ, IBM, SGR, WFR

On Tuesday’s show, Cramer focused on green stocks that are good investments. Cramer reviewed his green picks from back in April to see how they had done since then.
Shaw Group (SGR): It is up 143% from about $30 to $74 since April.
Foster-Wheeler (FWLT): It is up 99% since April and had great earnings last quarter.
BorgWarner (BWA): It is up 38% since April, and Cramer thinks it will go higher because it has an increasing backlog.
OM Group (OMG): This is the only stock that is down since April, falling 5%. Cramer thinks the stock has started to bounce back from its lows already.
First Solar (FSLR): The stock has climbed 171% and Cramer is still bullish, but wants you to wait until after it reports earnings on Wednesday before buying more.
Fuel Tech (FTEK): This stock is up 35%, but guided down after reporting earnings Tuesday morning.
MEMC (WFR): This stock is up 20% since April and Cramer thinks the company will grow 52% over the next two years.
Tatra Tech (TTI): It is up 14% since April, and Cramer thinks it will keep going up slowly but steadily.
Cramer thinks every one of these stocks will go higher, and thinks that going green is good for business.
Cramer then went to the phone lines. The first caller asked about Zoltek (ZOLT), and Cramer said that although he recommended this stock a while ago he pulled out because he thought he was getting greedy. He now thinks this stock will keep going up. The second caller asked about BP (BP), and Cramer doesn’t think you can own this company because of its green initiatives. The next caller asked about SunPower (SPWR) and Cypress (CY), and Cramer said that Cypress is safer, but he likes both stocks.
The CEO of Wells Fargo (WFC) was on the show to talk about their alternative energy investments and positions, as well as the prospects. Cramer said this is the only banking stock he wants you to buy.
“Am I Diversified?”
The first email asked about UBS (UBS), and Cramer said that he has messed up with every financial pick he had made recently, and thinks you should wait until the stock hits $45 before you buy. The next email asked about Oceaneering International (OII), and Cramer said he didn't like the most recent earnings call. The next email asked if the recent investment in Tesoro (TSO) by Kirk Keorkian's was a bet that oil will drop, and Cramer said that could be right, but that TSO could drop if oil prices decline. The final email asked about lululemon (LULU), and Cramer said he wants nothing to do with the stock since it has gone up so much.

Labels: BP, BWA, CY, FSLR, FTEK, FWLT, Jim Cramer, Mad Money, OII, OMG, SGR, SPWR, TTI, UBS, WFR, ZOLT

Six More Dow Stocks: International Business Machines (NYSE: IBM - News), Johnson & Johnson (NYSE: JNJ - News), J.P Morgan Chase (NYSE: JPM - News), McDonald's (NYSE: MCD - News), Merck Co. (NYSE: MRK - News), Microsoft (NasdaqGS: MSFT - News)
Cramer continued his series on Dow Stocks by admitting his target of $110 for IBM was too conservative, and given the company's great dividend and buyback, it should reach $114, but no higher. JNJ is a sell in spite of Warren Buffet's buying the stock. Cramer thinks it is staying at $63, and opines that maybe Warren Buffet liked the steady nature of the band-aid business, but adds "With so many other great names in the Dow, why back up the truck for band-aids?" Cramer called JPM's CEO Jamie Dimond a "great banker," but thinks he is going to be prevented from bringing out the best in JPM by the Fed; "Three more points for JPM, and then I'd declare victory." While MCD has a great international business, Cramer thinks it will peak 4 points from now at $55. Cramer says he was too conservative predicting MRK would go to $50, but at $53, he says the stock is "pretty much done for the year." On the other hand, he admits he was too bullish on MSFT, but is not changing his $35 target, since the company may underpromise and overdeliver.
Google (NasdaqGS: GOOG - News) and Amazon (NasdaqGS: AMZN - News)
Google has been stalled for a while, but Amazon has brought "in the jumper cables," says Cramer. AMZN's move from $39 to $69 makes GOOG look cheap in comparison, especially since Google has 63% sales growth and almost no competition while AMZN has 33% growth with competition from almost every retailer in America. Cramer sets the target for Google at $600, but admits he is being conservative.
Sell Block: CA Inc. (NYSE: CA - News), Analog Devices (NYSE: ADI - News)
Cramer declared a special "Crime and Punishment" edition of this week's Sell Block, inspired by the crime of his "hubris" (overweening pride) last week when he broke his own rule about avoiding tech until August. He now regrets having recommended CA which is down 7.4% since last Friday and ADI which he "missed by a mile."
Mad Mail: MEMC Electronic Materials (NYSE: WFR - News), Taser International Inc. (NasdaqGS: TASR - News), Rowan Companies Inc (NYSE: RDC - News), National Oilwell Varco (NYSE: NOV - News)
When a viewer asked how to play the shortage of polysilicon in Chinese Solar IPOs, Cramer said WFR is the obvious choice, but it missed the quarter and at $58, it's a "no-go." Cramer told another viewer to hold on to Taser, which he recommended ahead of the French election, for at least a few more points. Cramer says RDC has "too much actual drill for me" and says NOV is still "best in show."

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Labels: ADI, AMZN, CA, GOOG, IBM, Jim Cramer, JNJ, JPM, Mad Money, MCD, MRK, MSFT, NOV, RDC, TASR, WFR

Here are 7 stocks for traders for Friday from TradingMarkets.com:
MEMC Electronic Materials (NYSE:WFR - News) beat earnings on Thursday, announcing $0.71 EPS over estimates of $0.69 EPS. WFR's PowerRating is 3.

Microsoft (NasdaqGS:MSFT - News) beat earnings on Thursday afternoon, with $0.49 EPS over an expected $0.46 EPS. MSFT's PowerRating is 5.
Alltel (NYSE:AT - News) announces earnings on Friday before the open, with analysts looking for $0.66 EPS. AT's PowerRating is 5.
Burger King (NYSE:BKC - News) reports earnings Friday afternoon; watch for $0.22 EPS. BKC's PowerRating is 6.
When Chevron (NYSE:CVX - News) reports quarterly earnings early Friday, analysts will be looking for $1.68 EPS. CVX's PowerRating is 5.
Goodyear Tire (NYSE:GT - News) should announce -$0.01 EPS before the bell on Friday. GT's PowerRating is 5.
Analysts will be watching for Waste Management (NYSE:WMI - News) to announce $0.36 EPS before the market opens tomorrow. WMI's PowerRating is 4.
PowerRatings are courtesy of PowerRatings.net

Labels: AT, BKC, CVX, GT, Hot Stocks, MSFT, WFR, WMI

Adopting a Monster: Gannett (NYSE: GCI - News), Monster Worldwide (NasdaqGS: MNST)
Cramer thinks Gannett should buy MNST as a way to stay relevant since its business isn't "viable long-term anymore." He adds that MNST would be a nice accompaniment to GCI's acquisition, CareerBuilder.com, and the company should hurry to make an offer before Google makes the first move. In either case, the online job listing source is an attractive takeover target and Cramer is bullish on MNST which has has recently had a shortfall, is cheap, and has a new CEO, Sal Iannuzzi, who Cramer thinks is ready "to make a deal." Monster's inclusion in Goldman Sach's list of likely private equity plays is yet another reason to buy.
On the Sunny Side of The Street: First Solar (NasdaqGM: FSLR), MEMC Electronic Materials (NYSE: WFR - News)
Continuing his "Green Day" series, Cramer takes a look at solar energy stocks, and comments he is still 100% behind FSLR, which he recommended in early March and is "the most economically efficient solar company." He also likes WFR which has a "stronghold on silicon wafers, the key components to most solar panels" and is up 247% since October. Since both stocks have increased substantially, he would look for a drop before buying.
DEEP Thoughts: New IPO Superior Offshore International, with stocks Nabors (NYSE: NBR - News), Halliburton (NYSE: HAL - News)
Cramer would take a look at new IPO Superior Offhsore International which is due to go public Friday and will trade under the symbol DEEP. He notes the company has solid earnings and fundamentals and is reasonably priced between $14 to $16. This subsea construction company has competitors, HAL and NBR, but their success has proven that business is good. While DEEP is located mainly in the Gulf of Mexico, it is expanding beyond the region, repairs and maintains current drilling and has years of repair work on the agenda from Hurricane Katrina. Cramer would do homework before buying this "great company" with "real profits" and would make a move no later than Thursday morning.
CEO Interview: Saks (NYSE: SKS - News) CEO Stephen Sadove with stocks Coach (NYSE: COH - News) and Ralph Lauren (NYSE: RL - News)
When asked about the company's turnaround, Stephen Sadove replied that while it is still "early in the game," Saks has benefited from a "great team, clear strategies and clear focus on execution." The company was also successful in encouraging people to own equity and making stores more customer-friendly. Sadove also discussed Saks' new CFO Kevin Willis, calling him "a great asset to the team." Cramer said he is bullish on SKS as well as COH and RL, all of which are buying opportunities because the stocks have "flat-lined."
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Labels: COH, FSLR, GCI, HAL, Hot Stocks, Jim Cramer, Mad Money, MNST, NBR, RL, SKS, WFR

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Tuesday evening:
Gilead Sciences (GILD): "What a fabulous, fabulous group of drugs they have. ... I think it's about to take off the way Celgene (CELG) did."
MEMC Electronic Materials (WFR): "There has been a silicon wafer shortage for as long as I can remember. But the fact is this is a stock that has doubled from year to year, I can only give it one thumb up [in keeping with the "pigs get slaughtered" principle espoused on the show] ."
VeraSun Energy (VSE): "Not one of my favorites." ... Cramer said he would sell it and buy Archer Daniels Midland .
Titatnium (TIE): "You are second-best of breed from way back ... you swap out and pull the trigger on ... Allegheny (ATI).
Nortel (NT): "Still a great sale. ... Nortel, Alcatel (ALA) ... don't matter. Sell those and be in Cisco. ... the only pure-play communications-equipment stock you're gonna hear on ... "Mad Money."
Microsoft (MSFT): "Stalled. ... I think it flat-lines here. ... And then, next year it will start taking off again."
Lowe's (LOW): "I'm sticking with Lowe's for at least another 4, 5 points. Don't you dare think about ringing the register. We just opened the store."
Finisar (FNSR): "An old favorite from last year but no longer good to buy. ... directing all Finisar traffic to Cisco."
Level 3 (LVLT): "Some people are saying that could be 2007's stock of the year. ... the coming bandwith shortage is going to make that stock double in the next two years. ... And below 5, pull it back, pull it back .

Labels: ALA, ATI, CELG, FNSR, GILD, Jim Cramer, Lightning Round, LOW, LVLT, Mad Money, MSFT, NT, TIE, VSE, WFR