Cramer's 'Mad Money' Recap: A Symbolic Lesson
DNA and a PepsiLater 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.
BullishDuring 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).
BearishCramer 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|
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV