Mad Money Recap
Cramer's 'Mad Money' Recap: Going to Disney at USC
TheStreet.com Staff
09/07/07 - 08:03 PM EDT
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LOS ANGELES -- The market tanked today because the Federal Reserve didn't listen to Cramer," Jim Cramer said on his "Mad Money" TV show Friday at the University of Southern California. Cramer continued his call for a Fed rate cut, replete with replays of his famous rant on "Stop Trading" last month, imploring Fed Chariman Ben Bernanke to cut rates amid the credit market meltdown. Although Friday's jobs report of declining U.S. employment moved the economy closer to recession, Cramer does not believe that the stock market is dangerous. Instead, he told his "Back to School" tour audience at the Marshall School of Business that it's time to buy some stocks that are being thrown away.
He Believes Northrop Can Fly
An ideal growth stock for this market is Northrop Grumman(NOC Quote - Cramer on NOC - Stock Picks), Cramer said. While Cramer also likes Raytheon (RTN Quote - Cramer on RTN - Stock Picks) and General Dynamics (GD Quote - Cramer on GD - Stock Picks), he believes that California-based Northrop Grumman is the most attractively priced.Mouse House
Cramer believes that many people wrongly think of Disney (DIS Quote - Cramer on DIS - Stock Picks) as a "new media company." However, Disney is arguably the "only global brand" in the movie business. Cramer welcomed Disney President and CEO Bob Iger onto the program. Cramer said Disney "should be so much higher than it is now for so many reasons." Beyond its 28% growth in operating income in 2006, Cramer likes that Disney repurchased $5.2 billion of its stock in the first nine months of 2007.Pitch and Catch
Cramer took some stock questions from the student body. The first student offered CIT Group (CIT Quote - Cramer on CIT - Stock Picks). Cramer gave his blessing, saying that "if the Fed cuts rates, you have a $48 stock in a heartbeat." The second student named Suntech Power Holdings (STP Quote - Cramer on STP - Stock Picks). Cramer said that there is risk in dealing with the Chinese market, but gave his OK on the stock as "it makes lots of money."
The final student pitched Human Genome Sciences (HGSI Quote - Cramer on HGSI - Stock Picks). Cramer was not sold on the stock because of its previous losses. Instead, he prefers Nastech Pharmaceutical (NSTK Quote - Cramer on NSTK - Stock Picks), which is less speculative.