Cramer's TheStreet.com TV
Cramer's TheStreet.com TV Recap: Buys Off Bond Fervor
TheStreet.com Staff
12/15/06 - 12:54 PM EST
Investors have forgotten the power of the bond market to create good buys in stocks, Jim Cramer said on his TheStreet.com TV video Webcast Friday -- in particular, American International Group (AIG Quote).
Cramer stressed that many firms make bets on fixed income, citing Goldman Sachs (GS Quote) and Bear Stearns (BSC Quote) as two firms that are very successful in fixed income markets.
His favorite is AIG, which he labeled the cheapest of insurers. "No one's focused on AIG as just a gigantic bond holder, because they're an insurance company," he said. "This stock has moved very quietly from $65 to $72."
This is despite the fact that former CEO Hank Greenberg has been selling the stock endlessly, according to Cramer. But this selling pressure will abate when his stock runs out.
Overall, Cramer said, the market still looks good, particularly finance because of the long bond, technology and the oils on any pullback.
- Cramer said take advantage of the 10-cent price increase on cigarettes at Altria's (MO Quote) Phillip Morris unit and consider buying the stock.
- As for oil, he said it's coming back down, and as soon it gets to $60 he recommends the stocks in the sector. He called oils the "absolute best trade," citing Transocean (RIG Quote) as a stock he really likes.
- Cramer said the week was book-ended by problems in housing, referring to Best Buy (BBY Quote) as a housing player because of its big-screen TVs and home studios business. He also noted Black & Decker (BDK Quote) and warned investors about ITW (ITW Quote) and Ingersoll-Rand (IR Quote).
- Cramer said Parker Hannifin (PH Quote) under $80 is intriguing to him, and he still likes Honeywell (HON Quote) off its dividend boost. But he cautioned investors to be careful with the industrials.