'RealMoney' Radio Recap: Putting Oil on Hold
Cramer said Nice Systems (NICE) reported a "beautiful" quarter Wednesday, but investors were hoping for more upside guidance. He said investors were using the "disappointment" as an excuse to take profits. However, he sees nothing wrong with the fundamentals and wants to own the stock.
A caller asked if one should be wary of Zumiez (ZUMZ), which announced an expanded secondary offering Wednesday that included sales of shares by insiders. Cramer said he would normally be perturbed by the situation but that he checked with some of his institutional sources, and they are not concerned, he said. Cramer believes the offering will be easily absorbed at the price of $35.60 and that the stock is now headed higher.
Cramer believes copper prices have peaked, and therefore the stock of Phelps Dodge (PD) has peaked. The one copper stock Cramer still likes is Southern Copper (PCU) because he likes the Peruvian copper market.Of Chesapeake Energy (CHK), Cramer said the stock is a hold. He would take a hard look at Chesapeake if it fell to about $25, he said. Chesapeake traded at $27 late Thursday. Cramer believes Yahoo! (YHOO) is going to "break out to the $40s." The stock was at $38.55 in late Thursday trading. Commenting on iRobot (IRBT), a stock Cramer recommended on his "Mad Money" TV show Wednesday, Cramer said the stock opened Thursday at about the price where he thought it would go over several days. Don't chase it, he said. Finally, Cramer said because he believes the selloff in oil is not over, chemical companies such as Dow Chemical (DOW), DuPont (DD) and PPG Industries (PPG) are going higher.
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