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Cramer's 'Mad Money' Recap: Three Must-Go CEOs

TheStreet.com Staff

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

"A few CEOs are so inept and so incompetent, you wonder if they are trying to sabotage their companies," Jim Cramer said on his "Mad Money" TV show Friday.

As an "equal opportunity critic of bad CEOs," Cramer believes that these stocks can only be owned if investors foresee these CEOs as on their way out.

Seven CEOs currently sit on Cramer's Wall of Shame. However, he said that three of the seven have recently "disgraced themselves even further."

While Cramer owns Citigroup (C Quote - Cramer on C - Stock Picks) for his Action Alerts PLUS charitable trust, Cramer has long been "spearheading" a campaign to have CEO Chuck Prince removed. He named Citigroup's management team as the worst he "has ever seen," partially due to misguided investments. Cramer said that "only their huge deposit base will save them."

Another CEO who did poorly this week was Vincent Sollitto of Syntax Brillian (BRLC Quote - Cramer on BRLC - Stock Picks). His company's stock lost 35% of its value this week. Cramer believes that was due to underdelivering in its last earnings report and blaming its Asian partners for its problems.

Cramer also doesn't like how Sollitto said everything was great with Syntax when he appeared on "Mad Money."

The third self-disgracing CEO was Patricia Russo of Alcatel Lucent (ALU Quote - Cramer on ALU - Stock Picks). Cramer believes she carries a "remarkable" lack of vigor in her execution. There is no significant growth in revenue and the company's orders are shrinking. Under Russo's leadership, Alcatel is missing "the great telco sector boom" that it should be thriving in.

Cramer said that these CEOs will have to leave before these companies can thrive. Cramer still likes Citigroup, but said that Syntax Brillian and Alcatel Lucent are immediate sells.

Fed Game Plan

In his "Game Plan" segment, Cramer said that he is struggling to find a way to look at the glass as half-full. He hopes the Federal Reserve will cut interest rates but said he was not certain.

Cramer looked at three Fed scenarios. The first would be no rate cut at all, which could lead to "armageddon." The second would be a quarter-point cut, which would still be a bad outcome. Similarly, the third possibility, a half-point cut, would be another bad outcome.

Cramer said that both a quarter- and a half-point cut would cause many investors to "sell hard." Instead, investors should consider defensive stocks like Coca-Cola (KO Quote - Cramer on KO - Stock Picks), PepsiCo (PEP Quote - Cramer on PEP - Stock Picks), Kellogg (K Quote - Cramer on K - Stock Picks) and General Mills (GIS Quote - Cramer on GIS - Stock Picks), and "wait for the investors who wanted a bigger [rate] cut" to do their selling.

On Wednesday, investors should look into buying infrastructure and agriculture-related stocks, Cramer said.

If there is a half-point cut by the Fed on Tuesday, investors should look into buying high-quality financial stocks. Cramer likes Wachovia (WB Quote - Cramer on WB - Stock Picks) and its 5% yield in addition to Morgan Stanley (MS Quote - Cramer on MS - Stock Picks) and Goldman Sachs (GS Quote - Cramer on GS - Stock Picks), which he owns for Action Alerts PLUS.

'Fantasy Football' Portfolio Starting Lineup

Cramer reminded viewers that it takes many of the same skills to build a strong fantasy football team as it does a winning stock portfolio. On Friday, Cramer unveiled his fantasy team picks.

For quarterback, Cramer selected Exxon Mobil (XOM Quote - Cramer on XOM - Stock Picks). He believes that Exxon will repeat last year's strong performance, as it is consistent. Exxon was compared to Peyton Manning of the Indianapolis Colts, who has "amazing timing with running the offense."

The defensive team pick was Medco Health Solutions (MHS Quote - Cramer on MHS - Stock Picks). Cramer says Medco can perform well in a squeezed economy and sees it going to $100, ultimately comparing its defensive strength to that of the New England Patriots.

Filling the tight end position was Enterprise Products Partners (EPD Quote - Cramer on EPD - Stock Picks). Cramer likes Enterprise's 6.5% yield, which keeps the stock safe, although it is still on the offensive. The stock was compared to Dallas Cowboys TE Jason Witten, who blocks well.

The wide receiver tapped was Research In Motion (RIMM Quote - Cramer on RIMM - Stock Picks). Cramer said that things are falling into place for the company, whose market share is as good as ever. They are "doing fabulously by every metric" and "could double again." Their growth and potential reminded him of Randy Moss of the New England Patriots.

Finally, as running back, Cramer chose Freeport-McMoRan Copper & Gold (FCX Quote - Cramer on FCX - Stock Picks), which he owns for Action Alerts PLUS. He believes that the stock "should survive whatever the economy throws at it."

It is not only cheap, but a growth stock as a producer of copper, which is on the rise in China. As his NFL equivalent, Cramer suggested LaDainian Tomlinson of the San Diego Chargers.

Mad Mail

In his "Mad Mail" segment, Cramer's first writer asked if Caterpillar (CAT Quote - Cramer on CAT - Stock Picks), which he owns for his charitable trust, is a CEEMEA ("Central and Eastern Europe, Middle East and Asia") play. Cramer said it is, and he foresees growth for Caterpillar in developing markets.

Cramer's second writer questioned the need to diversify, as the viewer held 65% of her portfolio in the tech sector. Cramer disagreed with her portfolio and ideology, noting how many people lost fortunes in the dot-com bust of 2001.

Responding to his final letter, Cramer was asked why EMC (EMC Quote - Cramer on EMC - Stock Picks), which he owns for his trust, is a "good way to play" VMware (VMW Quote - Cramer on VMW - Stock Picks). Cramer said that EMC is cheaper and less risky as an investment, yet it still succeeds if VMware performs well.

Lightning Round

Cramer was bullish on Bunge (BG Quote - Cramer on BG - Stock Picks), Monsanto (MON Quote - Cramer on MON - Stock Picks), Sirius Satellite (SIRI Quote - Cramer on SIRI - Stock Picks), Research In Motion (RIMM Quote - Cramer on RIMM - Stock Picks) First Solar (FSLR Quote - Cramer on FSLR - Stock Picks), Suntech Power Holdings (STP Quote - Cramer on STP - Stock Picks), LDK Solar (LDK Quote - Cramer on LDK - Stock Picks), Omniture (OMTR Quote - Cramer on OMTR - Stock Picks) Meridian Bioscience (VIVO Quote - Cramer on VIVO - Stock Picks), Inverness Medical Innovations (IMA Quote - Cramer on IMA - Stock Picks), Blue Coat Systems (BCSI Quote - Cramer on BCSI - Stock Picks), Garmin (GRMN Quote - Cramer on GRMN - Stock Picks), Cnooc (CEO Quote - Cramer on CEO - Stock Picks), Petrochina(PTR Quote - Cramer on PTR - Stock Picks), MEMC(WFR Quote - Cramer on WFR - Stock Picks) and Central European Distribution (CEDC Quote - Cramer on CEDC - Stock Picks).

Cramer was bearish on Pacific Ethanol (PEIX Quote - Cramer on PEIX - Stock Picks), Blockbuster (BBI Quote - Cramer on BBI - Stock Picks), Palm (PALM Quote - Cramer on PALM - Stock Picks) First Marblehead (FMD Quote - Cramer on FMD - Stock Picks), F5 Networks (FFIV Quote - Cramer on FFIV - Stock Picks) and Trimble Navigation (TRMB Quote - Cramer on TRMB - Stock Picks).

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.