Mad Money Recap

Return to Article

Cramer's 'Mad Money' Recap: Fill 'Er Up With ConocoPhillips

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.

There are three stocks that can make people money despite the market's ugliness today, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

According to his $80-to-$120 stock theory, Cramer believes that stocks that make it to $80 in a bull market tend to make it to par, which means $100 in "authentic Wall Street gibberish." And stocks that make it to par in a bull market tend to go to $120. Those stocks, he said, are industry leaders and buck the negativity of the market.

On Monday, Cramer suggested that investors take a look at Boeing (BA Quote) and Caterpillar (CAT Quote), the latter of which he owns for his charitable trust, Action Alerts PLUS.

Tonight, Cramer started his series by recommending ConocoPhillips (COP Quote), which passed the $80 mark on June 15.

Don't be dissuaded that the stock is up, because this is a buy-high, sell-higher theory, he said. COP has "genuine momentum" and is favored by big institutions. It's a market-anointed stock and a "magnet for money," Cramer added. Plus, while it's not an ace, king or queen of buybacks, it's definitely a face card now, with its recent $15 billion buyback.

"We're in some strong bull markets right now," and COP is a "great" oil company, Cramer said. "Oil cannot be stopped." Also, COP has its oil reserves in safe areas, including Alaska, Canada and the northwestern U.S.

COP is still cheap based on its fundamentals, trading at 1.3 times growth; it is a stock that should go to $120, Cramer said.

iPod Plays Bunny for Energizer

Energizer (ENR Quote) is another stock that should keep going to $120 because of two words: "the iPod," Cramer told viewers.

The company, he said, is working on a battery that could extend the life of the iPod battery, "a great development for Energizer."

Advertising Age, which is where Cramer said he got the idea of recommending Energizer, recently reported in an article titled "Energizer Aiming to Be Big Player in iPod Economy" that the new battery could add up to 46 hours of playtime between iPod charges.

Moreover, the article states that Energizer is coming out with a new charger that could bring dead iPod batteries back to life. This is a big deal, because Apple's (AAPL Quote) iPod battery tends to die after two years of use, Cramer said.

Although Energizer is only a couple of points below its high and is trading at 1.8 times its growth rate (the high end of his price range), Cramer said he believes Energizer should make it to the $120 finish line. Analysts covering the stock all think it's too expensive, but they should soon part ways, he added.

Mineral Mania

The "three wise men" in this space, he said, have long been CVRD (RIO Quote), BHP Billiton (BHP Quote) and Rio Tinto (RTP Quote).

But now it's time to say hello to a new fourth member, said Cramer, as he introduced Teck Cominco (TCK Quote).

Even though this is a smaller mineral company than the other three, is has just as much upside as the bigger guys, Cramer told viewers. It's so hot, "nothing can hold it back," he said.

Teck does have exposure to zinc, which doesn't seem to be as hot as right now, but just about everything else the company offers is performing well. And the fact that zinc is not doing so well is a reason to get into the stock now at a discount, Cramer said.

The mineral group shows no signs of slowing, and Teck is the new name people should be looking at here. It's benefiting from the Chinese demand of zinc and copper and is a way to play China without having to buy a Chinese company, Cramer said.

Furthermore, if its bid for Aur Resources goes through, Teck's copper reserves and resources should increase by more than 100%, and it could have more copper than zinc.

Cramer said Teck had been unfairly left out from his favorite mineral and mining picks, but "that ends today," he said.

Savient Savvy

Cramer welcomed Christopher Clement, Savient Pharmaceuticals' (SVNT Quote) president and CEO, to the show and asked him about his company's gout drug.

The drug's name is Puricase, and it is in phase III of its clinical studies. This will be the last set of studies before Savient submits it for Food and Drug Administration approval, Clement said.

Savient plans to file for FDA approval in early 2008 and launch the drug in early 2009, Clement continued. With Puricase, Savient has the opportunity to help patients with gout flare. While initially Puricase will be for the treatment-failure patient population, later on, said Clement, Savient plans to extend it to a larger patient population.

Cramer advised sticking with Savient and buying the stock on any weakness.

To view Cramer's interview with Christopher Clement, please click here.

Sears Update

On a closing note, Cramer addressed Sears Holdings' (SHLD Quote) recent 17% decline.

"The company has to start making some sales and selling some of its real estate," he said.

The current situation is such that Cramer believes people should hold Sears for 18 months. Cramer said that while he is disappointed in the stock, which he owns for his charitable trust, he is not selling it now.

Lightning Round

Cramer was bullish on Monsanto (MON Quote), Volvo (VOLV Quote), Axis Capital Holdings (AXS Quote), Brookfield Asset Management (BAM Quote), EMC (EMC Quote) and Frontline (FRO Quote).

Cramer was bearish on Texas Industries (TXI Quote), Potash (POT Quote), MasterCard (MA Quote), Emergency Medical Services (EMS Quote) and Terra Nitrogen (TNH Quote).

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, click here.