'Real Money' Wrap-Up: Why Cramer Loves This Tape
Cramer bases his dislike for the shares on an article in the New York Post about a potential takeout in the stock. He said the story does not have any credence, so take money off the table. And definitely don't go all-in.
On the other hand, Cramer says it's more than OK to give shares of Whirlpool (WHR) a spin. Cramer foresees a hot summer with hot sales for air conditioners and other appliance at Sears. He handicaps the stock, recently trading just above $70 as "$5 down and 15 up."
And despite Herb Greenberg's negative article on Urban Outfitters (URBN), Cramer still loves it. And he'll take on Herb tonight personally on Mad Money.
Cramer put pharmaceuticals stocks in his Sector Spotlight, where he takes emails and calls from listeners.He responded to one listener by recommending Bristol-Myers (BMY) over Merck (MRK) because of Vioxx litigation overhang. And Genentech (DNA) has seen some detractors lately over concerns about price controls for its drugs. Nevertheless, Cramer says stick with it because it's best-of-breed, his favorite type of company. Other sensible swaps in pharma-land would be UnitedHealth Group (UNH) for Pfizer (PFE). And while he likes Becton Dickinson (BDX) ("What's not to like at 25 times earnings?"), he likes Abbot Laboratories (ABT) more.
Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once||4.||Buy Damaged Stocks|
|5.||Diversify to Control Risk||6.||Do Your Homework|
|7.||Don't Panic||8.||Buy Best-of-Breed|
|9.||Defend Some Stocks||10.||Don't Bet on Bad Stocks|
|11.||Own Fewer Names||12.||Cash Is for Winners|
|13.||No Regrets||14.||Expect Corrections|
|15.||Know Bonds||16.||Don't Subsidize Losers|
|17.||No Room for Hope||18.||Be Flexible|
|19.||Quit When Execs Do||20.||Patience Is a Virtue|
|21.||Be a TV Critic||22.||When to Wait 30 Days|
|23.||Beware the Hype||24.||Explain Your Picks|
|25.||Find the Bull Market|
|Check back for more of Cramer's Rules|
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