In response to a question about when to sell Altria (MO Quote), Cramer said he feels very strongly the company will split itself into three divisions -- Kraft, Phillip Morris International and Phillip Morris USA -- once the company's final two major tobacco lawsuits are settled. He believes the three parts are worth $105 a share. He would probably sell a little at $80. Sell some more at $90 and sell the rest at $105, he said.
A caller asked if Research In Motion (RIMM Quote) is a buy. Cramer said he is not comfortable recommending RIM due to its legal problems regarding patent issues. He prefers Qualcomm (QCOM Quote), which was trading around $45 late Friday, or Broadcom (BRCM Quote) at about $43. Cramer said Caterpillar (CAT Quote) will be in the penalty box for six months after disappointing investors Friday with its outlook. It will take at least a quarter to see if things are improving, he said. Cramer said the company is hurting from higher materials and production costs and is seeing increased competition from Japan as the value of the yen has declined. If one can wait six months before seeing results, Cramer would hold the stock. If not, he would sell it. In response to a question about Inco (N Quote), Cramer said the company is paying a lot to acquire Falconbridge (FAL Quote). But once the acquisition is complete, he thinks the stock will do well as the Chinese will continue to demand a lot of nickel from the likes of Inco. "I want to own Inco," he said. Cramer said the downgrade in Broadcom Friday is a mistake. The company reported a very good quarter Thursday, he said, and guided people much higher. He would be buying the stock aggressively and thinks the stock will go to $45 "in a heartbeat." Cramer is bearish on Oakley (OO Quote). Finally, Cramer said the big seller of oil stocks is now finished. If you have been itching to buy an oil stock, Cramer now gives his blessing, he said.Lightning Round
Bullish Cramer was bullish on Cubic (CUB Quote), Capstone Turbine (CPST Quote), CBOT Holdings (BOT Quote), Cemex (CX Quote), Energy Partners (EPL Quote) and Accenture (ACN Quote). Bearish Cramer was bearish on Fording Canadian Coal Trust (FDG Quote), U.S. Energy Systems (USEY Quote), Electronic Data Systems (EDS Quote) and Sirius Satellite Radio (SIRI Quote).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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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,328.89 | 1,102.47 | 2,211.69 | 36.02 |
Oil *
74.27
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UP
20.63
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6.40
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UP
31.64
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UP
0.56
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10 Yr
3.60%
SPDR Gold
108.95
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+0.20%
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+0.58%
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+1.45%
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+1.58%
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