This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: A Symbolic Lesson

DNA and a Pepsi

Later in the show, Cramer offered two stocks that should be bought now: Pepsi (PEP) and Genentech (DNA). He said Pepsi has taken Coca-Cola's (KO) best shots and rebounded every time. What's more, "Pepsi has a strong mosaic of businesses," Cramer said. As a result, no competitor can lay into it.

As for Genentech, Cramer said it has a strong drug pipeline and the pipeline is not reflected in the numbers, he said. Cramer said Genentech reminds him of the way Merck (MRK) traded back in 1985 and 1986. The stock went up every day.

Pepsi and Genentech are both best of breed, Cramer said, and neither can be defeated.

As for the rumor du jour, Cramer said call buyers have been busy in the options pits speculating on Eastman Kodak (EK). Word on the Street is that Hewlett-Packard (HPQ) is getting ready to buy the company. Not so fast.

"Don't do an obviously stupid thing with this tip," Cramer said. "Do not buy Eastman Kodak, he admonished. "Tips are for waiters." If you buy Eastman Kodak, you are breaking Cramer's rule. The rule is that you do not speculate on companies with bad fundamentals, and that's what Eastman Kodak has, he said.

If you want to play the rumor, buy H-P instead, he said. Once H-P denies it is buying the company, H-P will fly, Cramer said.

Finally, Cramer gave ev3's (EVVV) chief executive, Jim Corbett, an opportunity to detail his company's prospects. The company, which recently went public, hasn't shown much stock appreciation, but Cramer said he would buy shares in the medical device maker.

Bullish

During the Lighting Round, Cramer was bullish on: Nextel Partners (NXTP), Wynn Resorts (WYNN), Goodrich Petroleum (GDP), Harrah's Entertainment (HET), Hansen Natural (HANS), OraSure Technologies (OSUR), Boyd Gaming (BYD), Amgen (AMGN), Target (TGT), Halliburton (HAL), EnCana (ECA), Petroleo Brasileiro (PBR), Annaly Mortgage (NLY), Archer Daniels Midland (ADM), Gold Kist (GKIS), Bunge (BG), Countrywide Financial (CFC), J.C. Penney (JCP), Constellation Brands (STZ), L-3 Communications (LLL), Centerpoint Energy (CNP), Coventry Health Care (CVH), RSA Security (RSAS), Sabine Royalty Trust (SBR), Temple-Inland (TIN), Harley-Davidson (HDI), Air Products and Chemicals (APD), Cendant (CD), Transocean (RIG) and Garmin (GRMN).

Bearish

Cramer was bearish on: Lakes Entertainment (LACOE), Regeneron Pharmaceuticals (REGN), Ross Stores (ROST), Gateway (GTW), Allegheny Energy (AYE), palmOne (PLMO), Fieldstone Investment (FICC), CMGI (CMGI), Anheuser-Busch (BUD), First Data (FDC), Sun Microsystems (SUNW), Union Pacific (UNP), PetroKazakhstan (PKZ) and Trimble Navigation (TRMB).


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

At the time of publication, Cramer was long EnCana and Halliburton.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,086.82 +56.61 0.31%
S&P 500 2,091.60 +9.72 0.47%
NASDAQ 4,810.5840 +37.1120 0.78%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs