DNA and a PepsiLater in the show, Cramer offered two stocks that should be bought now: Pepsi (PEP - Get Report) and Genentech (DNA). He said Pepsi has taken Coca-Cola's (KO - Get Report) 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 - Get Report) 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 - Get Report), Goodrich Petroleum (GDP - Get Report), Harrah's Entertainment (HET), Hansen Natural (HANS), OraSure Technologies (OSUR - Get Report), Boyd Gaming (BYD - Get Report), Amgen (AMGN - Get Report), Target (TGT - Get Report), Halliburton (HAL - Get Report), EnCana (ECA - Get Report), Petroleo Brasileiro (PBR - Get Report), Annaly Mortgage (NLY - Get Report), Archer Daniels Midland (ADM - Get Report), Gold Kist (GKIS), Bunge (BG - Get Report), Countrywide Financial (CFC), J.C. Penney (JCP - Get Report), Constellation Brands (STZ - Get Report), L-3 Communications (LLL - Get Report), Centerpoint Energy (CNP - Get Report), Coventry Health Care (CVH), RSA Security (RSAS), Sabine Royalty Trust (SBR - Get Report), Temple-Inland (TIN), Harley-Davidson (HDI), Air Products and Chemicals (APD - Get Report), Cendant (CD), Transocean (RIG - Get Report) and Garmin (GRMN - Get Report).
BearishCramer was bearish on: Lakes Entertainment (LACOE), Regeneron Pharmaceuticals (REGN - Get Report), Ross Stores (ROST - Get Report), Gateway (GTW), Allegheny Energy (AYE), palmOne (PLMO), Fieldstone Investment (FICC), CMGI (CMGI), Anheuser-Busch (BUD), First Data (FDC), Sun Microsystems (SUNW), Union Pacific (UNP - Get Report), PetroKazakhstan (PKZ) and Trimble Navigation (TRMB - Get Report).
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|