Mad Money Recap
Cramer's 'Mad Money' Recap for July 31
Scott Rutt
07/31/08 - 07:52 PM EDT
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"The markets will remain difficult to navigate," Jim Cramer told viewers of his "Mad Money" TV show Thursday. He defended calling the bottom in the markets on last night's show. In making the call, he said he did not mean that all stocks had bottomed, but rather that the time is right to begin buying stocks as they go down. Cramer then returned to a theme which he said investors should be celebrating 365 days a year, the wind and solar stocks. "Wind and solar stocks are transcending the weakness in oil," said Cramer, indicating that the strength in these sectors is genuine, and will continue even if oil hits his ultimate target of below $120 a barrel. Cramer said he expects at least four more years of strength in the green stocks, and reiterated his buys on Owens Corning (OC Quote), Trinity Industries (TRN Quote), a stock which he owns for his charitable trust, Action Alerts PLUS, and Mastec (MTZ Quote). Owens Corning recently predicted its wind business will be growing in the high double-digits for at least the next decade. With up to 18 tons of fiberglass used to produce a single windmill, Cramer said Owens' composite fiberglass business should easily be able to achieve those targets. Cramer called Trinity his favorite in the wind power business. The company's stock was up 6.7% today alone on the back of strong earnings, and Trinity more than doubled its wind tower backlog to almost $1.5 billion. With wind power only accounting for 10% of the company's revenues, Cramer said he expects wind to overtake Trinity's flagship railcar business in just a few short years.
Cramer: Don't Dump Your Cup |
Taking the Long View
Cramer talked with Peter Miller, National Oilwell Varco (NOV Quote) chairman, president and CEO, about the company's outlook amidst falling oil prices. Miller said the demand for new oil rigs is not declining with oil prices. He said the company's backlog extends well into 2011. Even with oil prices as low as $110 or even $100 a barrel, Miller said National Oilwell Varco would not be affected. He explained that many of the orders in the company's backlog were placed over two years ago when prices first hit those levels.A Major Blockbuster in the Making
In the "Sell Block" segment, Cramer looked at a recent New York Times article which reported that the instances of Type 2 Diabetes in children increased 10% to 12% a year. Prescriptions for these children between 2001 to 2007 were up 151%. In light of the news, Cramer released Novo Nordisk (NVO Quote), the global leader in insulin, from the sell block, called the company a buy. Cramer called the company's new diabetes and weight-loss drug, Liraglutide, one of the biggest prospective drugs he's ever seen. With approval expected for the drug in the second quarter of next year, Cramer said now is the time to get into Nordisk before the anticipation for the drug grows. Liraglutide's slow release formula allows for it to be taken just once daily compared to twice daily for the closest competitor, Byetta. Cramer said Liraglutide appeal also extends beyond diabetes. Novo Nordisk released a study back in June showing that overweight patients without diabetes lost an average of 16.5 to 17.6 pounds. He called the drug a blockbuster.Mad Mail
Cramer defended his positive call on Research In Motion (RIMM Quote) by again stating that the market is big enough for both it and Apple (AAPL Quote)'s iPhone.Sudden Death
In Sudden Death, Cramer was not bullish on any stocks. He was bearish on China Telecom (CHA Quote) and Grey Wolf (GW Quote).