Cramer's 'Mad Money' Recap: When Pigs Fly
03/28/06 - 07:43 PM EST
TheStreet.com Staff
Click here for an archive of Cramer's "Mad Money" recaps.
"You want to make money off the coming bird flu pandemic?" Jim Cramer asked "Mad Money" viewers Tuesday. "You got to stop thinking about drugs like Tamiflu and start thinking about livestock." We already can't eat beef because of mad cow and cholesterol, and now with bird flu, people won't be able to eat chicken either, he said. Pigs are the only animals left without some horrible disease that renders them inedible, he said, so he that's why he likes Smithfield Foods(SFD Quote - Cramer on SFD - Stock Picks). He called the company the "best of breed in the pork industry" and said it is very well run. But the stock has yet to move higher on bird flu, and he said it should go up soon. Plus, he said the company is going to benefit on the woes of ConAgra Foods(CAG Quote - Cramer on CAG - Stock Picks), which he said is the "worst-run food company in the world." After screwing up its balance sheet and cutting its dividend, ConAgra still needs cash, so it's selling off good divisions for less than what they are worth, Cramer said. Smithfield has picked up some of them already, and he believes Smithfield stock will jump the next time it buys another good ConAgra unit at a discount.
The Future's So Bright
Cramer said that Oakley(OO Quote - Cramer on OO - Stock Picks) sunglasses are so untrendy that "they're not even selling knockoffs on the street next to the fake Rolexes." But it's still a smart stock to buy for the summer, he said, in large part because the company is cleaning up its accounting problems. Once the new management takes care of problems that have forced it to restate its earnings from 2000 to 2004, he believes that the stock will jump. That's because he believes conservative investors who have waited to get in will do so once the financials are cleaned up.
For that reason, he said it could be a good idea to buy Oakley ahead of its restatement and capitalize on the probable spike that will happen after the books are cleared up.
Plus, its sales to the Army are up 40% year on year, Cramer said, making it a good play on the military. And the company plans on opening more retail stores.
Finally, he likes Oakley because the chief executive and chairman "have been doing hand-over-fist buying of stock on the open market," and that shows that management has faith that the company is on the verge of a turnaround.
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