Cramer's 'Mad Money' Recap: All Roads Lead to Navteq
Trade, Don't Invest
Cramer has changed his tune on Sirius Satellite Radio (SIRI), if only for two months. Cramer sees a trade in Sirius until Christmas not because of Howard Stern, who will begin broadcasting his radio show exclusively on Sirius as of Jan. 1, but because CEO Mel Karmazin is a master of UPOD: Under Promise, Over Deliver.
Cramer said Sirius has done a good job keeping expectations low for Sirius' next quarter even though the company knows results will be fantastic. Cramer says, buy Sirius now and sell the stock once the company "blows away" expectations.
Make no mistake. This is a trade, not an investment, said Cramer. Sirius' reporting systems are "convoluted," he said, and he has no idea where the stock will be a year from now.A caller asked if Sirius' new portable music player was a threat to Apple's (AAPL) iPod. Cramer said he is not concerned. However, the portable music player is a nice incremental business for Sirius, he said.
Take Up the BreakupCramer has been bullish on Cendant (CD) because he believes that the company is worth more split up than together. Yet, when the company announced a split last week, the stock dropped and has continued lower since. That caused Cramer to reassess. The result? He still believes that Cendant is a buy. "It's still worth a lot more than $17.50," near where Cendant traded after hours Tuesday. Cramer believes that Cendant is worth at least $25 on a breakup. Based on his sum-of-the-parts analysis, "Cendant is worth substantially more than $29 a share," he said. "I'm conservative!" "You should be in Cendant. I'm sticking by it, and I'm backing the truck up."
Chico's Worth a LookChico's FAS (CHS) CFO Charlie Kleman joined Cramer by telephone. (To watch Cramer's interview with Klemen, click here.) Cramer asked Kleman about the primary driver of Chico's business. Kleman said Chico's White House|Black Market stores were growing the fastest of the company's stores. Cramer asked about Chico's new Sunflower stores. Kleman said Sunflower was a new concept that was in about 10 stores, so far. Cramer asked about gross margin, which fell in the second quarter of 2005. "One-time event?" Kleman said gross margin actually fell in both the first and second quarters due to a "very specific miss in our product line." But, the situation changed in the third quarter, he said. Cramer summed up the interview by saying Chico's is "as good as it gets in retail. We're going to have a lot of interesting retail at the end of the week. You should take a look at this stock."
Lightning RoundBullish Cramer was bullish on Viacom (VIA), Bancolombia (CIB), Banco Bradesco (BBD), JDSU (JDSU), Genentech (DNA), CMS Energy (CMS), Procter & Gamble (PG), Microsoft (MSFT), Dresser-Rand Group (DRC), Quest Diagnostics (DGX), Union Pacific (UNP), Peabody Coal (BTU), Southern Copper (PCU), Intel (INTC), Wachovia (WB) and HDFC Bank (HDB). Bearish Cramer was bearish on Avon Products (AVP), General Motors (GM), Nvidia (NVDA), SuperGen (SUPG), Ship Finance (SFL), Sara Lee (SLE), Serena Software (SRNA), IRIS International (IRIS), Goodyear Tire & Rubber (GT), SunTrust Banks (STI), Teva Pharmaceutical Industries (TEVA) and Chesapeake Energy (CHK).
|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|
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