Jim Cramer:TSCM, Mad Money & The Street.com
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» SteveT - Cramer's 'Mad Money' Recap: Pike Has Yet to Peak
Mad Money Wrap-up
Cramer's 'Mad Money' Recap: Pike Has Yet to Peak
By TheStreet.com Staff
9/26/2005 7:24 PM EDT
URL: http://www.thestreet.com/funds/madmoneyw...
Click here for an archive of Cramer's "Mad Money" recaps.
Jim Cramer's stock of the week is Pike Electric (PEC:NYSE) , he said Monday on his "Mad Money" TV show.
Pike, a utility service company, can be played both as a trade and as an investment, Cramer said. The trade would be to buy Pike now and sell it as soon as the company either revises earnings estimates upward or announces earnings, whichever comes first. Pike is doing most of the repair work to electricity transmission lines wiped out by Hurricanes Katrina and Rita, said Cramer, and the company should have excellent earnings and good visibility.
Pike also makes sense as a long-term investment because the company is expanding across the country and is expected to grow at 10% for the next couple of years. The company is the "best of breed," lowest-cost operator in the utility transmission and distribution outsourcing market, and the stock trades at a discount to peers Emcor (EME:NYSE) and Quanta Services (PWR:NYSE) , said Cramer.
Pike came public in July around $14. As of Monday's closing price of $17.75, Cramer doesn't believe the stock has peaked. However, Cramer would recommend using limit orders to purchase the stock as it is thinly traded.
Commenting on natural gas plays EnCana (ECA:NYSE) and Chesapeake Energy (CHK:NYSE) , Cramer said Chesapeake is cheaper than EnCana and that Chesapeake's business is "smokin'." The company's operations were "barely touched by the hurricane."
Cramer also said he also likes the building materials stocks but that Greenspan has "cast a pall" on them by continuing to raise interest rates and with recent comments about a housing bubble. That said, Cramer likes Vulcan Materials (VMC:NYSE) , which is "best of breed," he said.
JDSU Ballyhoo
Cramer is giving JDSU (JDSU:Nasdaq) a "triple buy" because of its proposed reverse stock split and improved business outlook. Most of the time, said Cramer, a reverse stock split is purely cosmetic and is a sign a company is trying to hide something. However, in JDSU's case, the share count is "ridiculous," said Cramer, and a reverse stock split will allow the company to more easily show meaningful earnings growth.
Additionally, said Cramer, CEO, Kevin Kennedy has turned the company around just in time for a "world-wide pickup in carrier spending." Kennedy has done all the things Cramer wanted him to do, he said, so it's time for Cramer to get positive on the stock, he said.
Cramer thinks JDSU's stock can go to $2.50, presplit. JDSU ended the regular session Monday at $2.01.
Hain Expects Growth Gains
Hain Celestial Group (HAIN:Nasdaq) CEO Irwin Simon joined Cramer by telephone on the show. Cramer asked Simon where he expected growth in his company.
Growth is going to come from snacks, drinks and the company's new free-range chicken products, he said.
Cramer wanted to know when Hain's stock would trade at a multiple more comparable to Whole Foods Market (WFMI:Nasdaq) and Wild Oats Markets (OATS:Nasdaq) .
Simon said his company owned some of the best brands in the natural foods industry and that eventually investors will realize that.
Cramer summed up the interview saying, "This is the cheap natural food play. ... I like this stock. Wish I owned it myself."
Lightning Round
Bullish
Cramer was bullish on Walgreen (WAG:NYSE) , Motorola (MOT:Nasdaq) , Pioneer Drilling (PDC:Amex) , Allscripts Healthcare Solutions (MDRX:Nasdaq) , SanDisk (SNDK:Nasdaq) , Shanda Interactive Entertainment (SNDA:Nasdaq ADR) , Powerwave Technologies (PWAV:Nasdaq) , IntraLase (ILSE:Nasdaq) , Qualcomm (QCOM:Nasdaq) , T. Rowe Price Group (TROW:Nasdaq) , Google (GOOG:Nasdaq) , Yahoo! (YHOO:Nasdaq) , TreeHouse Foods (THS:NYSE) , Global Signal (GSL:NYSE) , NGAS Resources (NGAS:Nasdaq) , Foster Wheeler (FWLT:Nasdaq) , Caterpillar (CAT:NYSE) , Parker-Hannifin (PH:NYSE) , Ingersoll-Rand (IR:NYSE) , Cummins (CMI:NYSE) and Best Buy (BBY:NYSE) .
Bearish
Cramer was bearish on Nokia (NOK:NYSE ADR) , Calpine (CPN:NYSE) , 3M (MMM:NYSE) , Oracle (ORCL:Nasdaq) , Ionatron (IOTN:Nasdaq) , KongZhong (KONG:Nasdaq ADR) , Andrew (ANDW:Nasdaq) , Click Commerce (CKCM:Nasdaq) , Biovail (BVF:NYSE) , Conn's (CONN:Nasdaq) , Corning (GLW:NYSE) , Solectron (SLR:NYSE) , Flextronics (FLEX:Nasdaq) , Celestica (CLS:NYSE) , TOP Tankers (TOPT:Nasdaq) and Avocent (AVCT:Nasdaq) .
-- posted by SteveT
» BoltonCT - Jim Cramer now predicts a recession.
Jim now predicts a recession. He said sell cyclicals (except CAT)and buy best of breed food industry stocks that go up when everything else goes down. He pointed out that they went up in March of 2000 and just started going up again. March 2000 was when Bob Brinker first said sell 60%.Jim said sell, sell, sell and this time he could be right.
-- posted by BoltonCT
» Normxxx - Re: Re: Jim Cramer now predicts a recession.
In response to Re: Jim Cramer now predicts a recession. posted by Kirk:Jim is going against what ECRI is saying.
Not really. I, too, have a great deal of confidence in ECRI, but ECRI only has a lead time of some 6 months at best. Beyond that, you use your Ouiji board; what else?
I am still on for a (mild) recession, probably mid to late next year, but possibly delayed into early 2007. It may be a while before ECRI picks it up— currently the economy is doing great— but the effect of high gasoline and heating oil prices have yet to fully kick in. I don't think the consumer can consume much more, with saving rates at zero, the rise in home prices stalled, no movement on the wage front, "real" inflation at around 10%, etc. The "rebuilding" relief fund injection will have unknown consequences, since it may induce the Asians to just "hold the line" on their purchases of Ts, in which case LT interest rates will balloon, putting coda on our 4-year "recovery."
Like last year we may well see an up-move in late-October thru December; but I wouldn't bet on January, 2006.
P.S. I think you can forget the indicators— mine are about evenly divided between a crash and a melt-up just ahead. So, I guess we just muddle thru, unless we get some kind of "event." The risk measures I use (e.g., the VIX) are about off the charts. I suppose things could break either way, but I think the odds of peace suddenly breaking out in the ME are much less than the opposite!
-- posted by Normxxx
» bob90245 - Re: Re: Jim Cramer now predicts a recession.
In response to Re: Jim Cramer now predicts a recession. posted by Kirk:I'd be curious what Cramer is using to predict a recession.
Whereas ECRI uses a medley of indicators, Cramer only uses stock market action to base his predictions.
I heard Cramer's analysis of the food group versus the rest of the market. This was based on only one market session!
Advice to Cramer and others who use the stock market as a predictor of the economy:
"The stock market has predicted 9 out of the last 5 recessions."
-- posted by bob90245
» Normxxx - Re: Re: Re: Jim Cramer now predicts a recession.
In response to Re: Re: Jim Cramer now predicts a recession. posted by bob90245:"The stock market has predicted 9 out of the last 5 recessions." -- Paul Samuelson
CORRECTION
"The stock market has predicted 9 out of the last 5 [official] recessions." -- Paul Samuelson
Three of the other 4 were substantial slowdowns. However, as yet, I don't see the market predicting a recession, Cramer to the contrary.
-- posted by Normxxx
» mitelo - Re: Jim Cramer now predicts a recession.
In response to Re: Re: Jim Cramer now predicts a recession. posted by bob90245:Two Year 4.09
Ten Year 4.26
Looks pretty flat.
-- posted by mitelo
» SteveT - Cramer's 'Mad Money' Recap: Food-Stock Rally Could Mean Agita
In response to Jim Cramer now predicts a recession. posted by BoltonCT:Cramer's 'Mad Money' Recap: Food-Stock Rally Could Mean Agita
By TheStreet.com Staff
9/27/2005 7:19 PM EDT
URL: http://www.thestreet.com/funds/madmoneyw...
Click here for an archive of Cramer's "Mad Money" Recaps.
Food companies' stocks are going up, and that doesn't bode well for the economy, said Jim Cramer Tuesday on his "Mad Money" TV show.
The last time food stocks went up as a group, said Cramer, was the spring of 2000, when the Federal Reserve took interest rates too high and the economy started to fall apart. Cyclical stocks such as the chemicals, paper and steel suffer when the economy is poor. Food stocks, on the other hand, have consistent growth regardless of economic conditions, and they will do relatively well in a slowing economy, Cramer said.
Among the food stocks, Cramer's favorites are General Mills (GIS:NYSE) , Altria (MO:NYSE) and Unilever (UN:NYSE ADR) .
As for the cyclicals, Cramer said, "I am issuing a triple sell on most of the cyclicals, with the exception of Caterpillar (CAT:NYSE) , Ingersoll-Rand (IR:NYSE) and my favorite, Boeing (BA:NYSE) because aerospace is for real."
In response to a question about Starbucks (SBUX:Nasdaq) in a slowing economic environment, Cramer said "the price of coffee is going up" and that Starbucks' coffee is "too expensive" to be recession-proof.
Commenting on alcoholic beverage companies, Cramer said beer sales have been slow for some time. Thus, he does not recommend Anheuser-Busch (BUD:NYSE) . He is also hearing lately that wine sales have slowed. So he is concerned about sales of wine and even high-end spirits, and would not recommend either Fortune Brands (FO:NYSE) or Brown-Forman (BFB:NYSE) .
Making Dendreon Amends
Cramer also fessed up that on the previous night's show he mistakenly said Dendreon's (DNDN:Nasdaq) cancer drug, Provenge, had been rejected by the Food and Drug Administration.
Cramer said the drug hadn't been rejected by the FDA. Rather, it had failed to meet "patient survival" goals in a trial, and that the company, working with the FDA, had changed the protocol for testing the drug.
Regardless, Cramer said Dendreon is a "battleground" stock and should be avoided. There's "too much risk and not enough reward," said Cramer.
Because it is so hard to determine what works among cancer drugs, Cramer is bullish on Genzyme (GENZ:Nasdaq) , which has a test that can tell which of two lung cancer drugs will work for patients.
The test works for AstraZeneca's (AZN:NYSE) Iressa and Genentech's (DNA:NYSE) Tarceva. The test is important, said Cramer, because Iressa works for only about 10% of lung cancer patients -- but it works very well for that 10%. So, knowing which drug to prescribe is crucial.
Additionally, Genzyme has an "expensive" kidney drug called Renagel, which may be included in the new Medicare prescription drug plan. If Renagel is on the Medicare list, "Genzyme goes a whole lot higher," Cramer said.
A caller asked which drug companies were best situated to treat early-stage brain cancer. Cramer said NeoPharm (NEOL:Nasdaq) was one but that he was not that crazy about it. He prefers Schering-Plough (SGP:NYSE) , which has a drug called Temodar.
New Gas Will Fuel Southwestern Energy
There's a big shortage in natural gas, said Cramer, and Katrina only exacerbated it. Cramer thinks natural gas could go to $20 or $30 this winter from $12 where it is now.
Although "pretty much anywhere in the natural gas complex can make you money," said Cramer, and although he is keeping "'mon back*" status on longtime natural gas favorites Chesapeake Energy (CHK:NYSE) and EnCana (ECA:NYSE) , Cramer is especially bullish on Southwestern Energy (SWN:NYSE) .
Southwestern Energy owns the largest interest in the Fayetteville, Ark., natural gas shale beds. Extracting gas from shale is expensive, said Cramer, but with prices for natural gas high and likely going higher, developing it makes sense. The companies that can find new gas and get it to market are "going to make a killing," he said.
Cramer believes Southwestern Energy's stock "easily goes to $70," maybe $75. At $65.80, where SWN ended the regular trading session Tuesday, "it's a steal," said Cramer.
Six Multiple Is Key for Lennar
Lennar (LEN:NYSE) CEO Stuart Miller joined Cramer by telephone on the show. Cramer asked Miller if anything can be done to stop the erosion in the company's stock price in an environment of rising interest rates.
"The reports of our demise are greatly overexaggerated," said Miller. The fundamentals of homebuilders remain strong, he said.
Cramer asked Miller if he would back up his words and "make a statement buy," buying Lennar's stock, himself.
Miller said he already owns enough Lennar stock but that he is holding onto it.
Cramer wanted to know the lowest multiple Lennar's stock has ever had.
"Probably five to six," said Miller.
Cramer summed up the interview saying "you heard where the low multiple can go. ... Don't buy until you get to a six multiple, and then we do the 'mon back."
Viewer Mail
Commenting on Martha Stewart Living Omnimedia (MSO:NYSE) , Cramer said, the stock is "reflecting a lot of honest things I hear" in its decline to $25 from $32. The stock should be valued between $12 and $15, said Cramer, based on earnings. So, unless Martha Stewart's Apprentice TV show becomes more popular, "that stock's going to go to $20," he said. However, Cramer isn't counting out Stewart and her producer, Mark Burnett, from being able to turn the show around, and he is standing by the stock.
In response to a question about Ceradyne (CRDN:Nasdaq) , Cramer said he liked "that whole ceramic play," and he believes the stock goes higher.
Cramer has changed his tune on Sprint Nextel (S:NYSE) , saying "don't buy." Cramer is worried about competition from Verizon (VZ:NYSE) and its new low-priced DSL service.
Cramer said he believes Sirius Satellite Radio (SIRI:Nasdaq) will beat its lowered guidance for new signups, but he "likes XM (XMSR:Nasdaq) more."
Lightning Round
Bullish
Cramer was bullish on United Parcel Service (UPS:NYSE) , Coca-Cola (KO:NYSE) , PepsiCo (PEP:NYSE) , salesforce.com (CRM:NYSE) , KeySpan (KSE:NYSE) , Energy Partners (EPL:NYSE) , Peabody Energy (BTU:NYSE) , Fording Canadian Coal Trust (FDG:NYSE) , Intel (INTC:NYSE) , Chicago Mercantile Exchange (CME:NYSE) , Franklin Resources (BEN:NYSE) , Schlumberger (SLB:NYSE) , Halliburton (HAL:NYSE) , Energy Conversion Devices (ENER:Nasdaq) , Ingersoll-Rand (IR:NYSE) and Microsoft (MSFT:Nasdaq) .
Bearish
Cramer was bearish on Maytag (MYG:NYSE) , FedEx (FDX:NYSE) , Lions Gate Entertainment (LGF:NYSE) , Quiksilver (ZQK:NYSE) , Harrah's Entertainment (HET:NYSE) , Pier 1 Imports (PIR:NYSE) , EMC (EMC:NYSE) , ATI Technologies (ATYT:Nasdaq) , eResearch Technology (ERES:Nasdaq) , Adobe Systems (ADBE:Nasdaq) , McDonald's (MCD:NYSE) , Openwave Systems (OPWV:Nasdaq) , Rambus (RMBS:Nasdaq) , GSI Commerce (GSIC:Nasdaq) , Impac Mortgage Holdings (IMH:NYSE) , Constellation Brands (STZ:NYSE) .
-- posted by SteveT
» Bill_Duffy - Re: Cramer's 'Mad Money' Recap: Food-Stock Rally Could Mean A
.With a recession coming and he says:
Commenting on alcoholic beverage companies, Cramer said beer sales have been slow for some time. Thus, he does not recommend Anheuser-Busch (BUD:NYSE) . He is also hearing lately that wine sales have slowed. So he is concerned about sales of wine and even high-end spirits, and would not recommend either Fortune Brands (FO:NYSE) or Brown-Forman (BFB:NYSE)
People surely will drink during a recession. Cheap stuff, I'd bet. Warren Buffet owns a lot of BUD. Maybe he knows something?
-- posted by Bill_Duffy
» bob90245 - Re: Professionals pay him no nevermind
In response to Professionals pay him no nevermind posted by Kirk:And who are they trying to make money for? The firm or themselves?
OK, Cramer. Why not then offer your newsletter service for free? If you're going to talk the talk, then why not walk the walk?
-- posted by bob90245
» SteveT - Cramer's 'Mad Money' Recap: Portal Player a Play
http://www.thestreet.com/_tscs/funds/mad...
Cramer's 'Mad Money' Recap: Portal Player a Play
By TheStreet.com Staff
10/3/2005 7:35 PM EDT
Sales of Apple's (AAPL:Nasdaq - news - research - Cramer's Take) iPod Nano were huge this weekend in its debut on the market, Jim Cramer said on his "Mad Money" TV show Monday. That means good things for PortalPlayer (PLAY:Nasdaq - news - research - Cramer's Take), which makes audio chips for the Nano.
Thomas Weisel Partners raised year 2005 sales estimates Monday for the iPod to 10 million units, up from 7 million to 8 million units. That means upside for PortalPlayer, said Cramer.
The next big thing on the horizon, Apple's video iPod, also is likely to use PortalPlayer's chips, said Cramer, although some believe the contract will go to Sharp. Should that happen, said Cramer, he would simply ring the register.
Cramer said insiders have been selling PortalPlayer's stock but Cramer is not concerned. Insiders "sell for a million reasons," he said, and stock sales by insiders are rarely a reliable indicator of where a stock is headed.
Cramer said there is no reason to buy PortalPlayer immediately if you're cautious, as the stock has had a bit of a run. And, if Cramer had bought the stock before its run, he probably would be taking some profits now. However, he believes the stock is still headed higher.
In response to a question about disk drive makers Seagate Technology (STX:NYSE - news - research - Cramer's Take) and Komag (KOMG:Nasdaq - news - research - Cramer's Take), Cramer would sell Seagate and doesn't want anything to do with Komag.
Commenting on flash-memory plays, Cramer likes Lexar Media (LEXR:Nasdaq - news - research - Cramer's Take) and SanDisk (SNDK:Nasdaq - news - research - Cramer's Take), and don't overlook Silicon Motion Technology (SIMO:Nasdaq - news - research - Cramer's Take), he said.
Foster Wheeler the Real Deal
Cramer is bullish on Foster Wheeler (FWLT:Nasdaq - news - research - Cramer's Take) even though the stock already is up nearly 275% in the last year. The company has dealt with its asbestos liability, said Cramer, and business is roaring. The company is in three bull markets, he said: oil engineering and construction, power generation facility construction and the biotech plant construction. Foster Wheeler has no Wall Street analyst coverage, which is another reason Cramer likes it.
A caller asked if other asbestos-plagued companies might be worth buying. Cramer said companies such as Federal Mogul (FDMLQ:OTC BB - news - research - Cramer's Take), Owens Corning (OWENQ:OTC BB - news - research - Cramer's Take) and W. R. Grace (GRA:NYSE - news - research - Cramer's Take) are "not as far along in the healing process." He said he would rather stick with companies that are totally healed from asbestos, so that there are no surprises.
Coal in Stock-ing
Commenting on coal plays, Cramer said his favorite was Fording Canadian Coal Trust (FDG:NYSE - news - research - Cramer's Take) and that he liked Sasol (SSL:NYSE - news - research - Cramer's Take) as a coal-to-gas technology play.
Lightning Round
Bullish
Cramer was bullish on Occidental Petroleum (OXY:NYSE - news - research - Cramer's Take), Sears Holdings (SHLD:Nasdaq - news - research - Cramer's Take), Johnson Controls (JCI:NYSE - news - research - Cramer's Take), FX Energy (FXEN:Nasdaq - news - research - Cramer's Take), Ameren (AEE:NYSE - news - research - Cramer's Take), Northrop Grumman (NOC:Nasdaq - news - research - Cramer's Take), L-3 Communications (LLL:NYSE - news - research - Cramer's Take), Alliant Techsystems (ATK:NYSE - news - research - Cramer's Take), General Dynamics (GD:NYSE - news - research - Cramer's Take), Safeway (SWY:NYSE - news - research - Cramer's Take), Whole Foods Market (WFMI:Nasdaq - news - research - Cramer's Take), Charles Schwab (SCH:NYSE - news - research - Cramer's Take), E*Trade Financial (ET:NYSE - news - research - Cramer's Take), Ameritrade (AMTD:Nasdaq - news - research - Cramer's Take), Intel (INTC:Nasdaq - news - research - Cramer's Take), Edge Petroleum (EPEX:Nasdaq - news - research - Cramer's Take), Ethan Allen Interiors (ETH:NYSE - news - research - Cramer's Take), American Standard (ASD:NYSE - news - research - Cramer's Take), Grey Wolf (GW:Amex - news - research - Cramer's Take), Abraxas Petroleum (ABP:AMEX - news - research - Cramer's Take), Schlumberger (SLB:NYSE - news - research - Cramer's Take), Nabors Industries (NBR:Amex - news - research - Cramer's Take), Halliburton (HAL:NYSE - news - research - Cramer's Take) and Sysco (SYY:NYSE - news - research - Cramer's Take).
Bearish
Cramer was bearish on Payless ShoeSource (PSS:NYSE - news - research - Cramer's Take), 3M (MMM:NYSE - news - research - Cramer's Take), Distributed Energy Systems (DESC:Nasdaq - news - research - Cramer's Take), NGAS Resources (NGAS:Nasdaq - news - research - Cramer's Take), Arch Capital Group (ACGL:Nasdaq - news - research - Cramer's Take), Medtronic (MDT:NYSE - news - research - Cramer's Take), Fifth Third Bancorp (FITB:Nasdaq - news - research - Cramer's Take), Compuware (CPWR:Nasdaq - news - research - Cramer's Take), Leggett & Platt (LEG:NYSE - news - research - Cramer's Take), Bank of America (BAC:NYSE - news - research - Cramer's Take) and Sovereign Bank (SOV:NYSE - news - research - Cramer's Take).
-- posted by SteveT
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