Click here for an archive of Cramer's "Mad Money" recaps.
"The markets were looking for a big rate cut from the
Federal Reserve, and that's just what they got," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.
Cramer said there's no reason now not to be bullish and those who sold off were wrong.
He said he's so confident in the market that he would even consider buying a house. A turnaround in real estate is inevitable, he emphasized.
"This cut has given investors an opportunity to make money," Cramer said.
In this market environment, he likes such high-paying dividend stocks as
Altria (MO Quote - Cramer on MO - Stock Picks), which just raised its dividend again on Wednesday. Altria is a stock which he owns for his
Action Alerts PLUS portfolio.
He's also a fan of
AT&T (T Quote - Cramer on T - Stock Picks) and
Verizon (VZ Quote - Cramer on VZ - Stock Picks) for their dividends.
Cramer also sees a bull market in retail stocks and finds
Costco (COST Quote - Cramer on COST - Stock Picks) and
Urban Outfitters (URBN Quote - Cramer on URBN - Stock Picks) attractive. He says just about any retailer should benefit from the rate cuts.
Banks and brokers should also go higher in this environment, Cramer said. He said
Wachovia (WB Quote - Cramer on WB - Stock Picks) is probably the strongest player and noted
Washington Mutual (WM Quote - Cramer on WM - Stock Picks) is worth hanging onto until they get a bid.
He also sees some value in
Bank of America (BAC Quote - Cramer on BAC - Stock Picks) and even in
Citigroup (C Quote - Cramer on C - Stock Picks). The latter is a stock which he owns for his
Action Alerts PLUS portfolio.
Cramer also had a few new recommendations, including automakers
General Motors (GM Quote - Cramer on GM - Stock Picks) and
Ford (F Quote - Cramer on F - Stock Picks), both of which Cramer feels will slowly start creeping higher.
Cramer recommended buying any of these names on weakness. "Be glad the market came down," he noted. This is not the time to run away from stocks, but rather the time to run toward them, he asserted.
A Stock That Delivers in Tough Times
Cramer said
Tupperware(TUP Quote - Cramer on TUP - Stock Picks) has been a slow but steady winner since he first recommended it on Oct. 4, 2006. Since then, Tupperware shares have risen 75%.
The company just reported a blowout quarter, beating estimates by 13 cents a share, and was up 18% on a down day in the markets. On top of that, it sports an attractive 2.5% dividend yield.
Cramer said the company can deliver these earnings because 85% of its business is overseas and because it relies on individual sales representatives rather than costly retail outlets.
Rick Goings, chairman and CEO of Tupperware
(TUP Quote - Cramer on TUP - Stock Picks) appeared on the show to elaborate on his company's operations.
Goings said Tupperware is indeed a counter-cyclical business that does well when times are tough.
He noted that 40% of Tupperware's business is now beauty products. When Cramer asked Goings about the threat of rising raw costs, the CEO replied that with 70% gross margins, raw costs are not a problem.
Cramer closed by saying he stands behind Goings and would be a buyer of Tupperware.
Don't Be Fooled By One Report
Cramer warned investors not to "get taken when losers report bad numbers." Instead, he says, "stick with the winners."
On Monday's show, he outlined how bad news from cellular equipment maker
Motorola (MOT Quote - Cramer on MOT - Stock Picks) brought down the shares of its competitor,
Nokia (NOK Quote - Cramer on NOK - Stock Picks), right before Nokia reported stellar earnings and shot up 5 points.
The same thing is happening, he says, with the wireless companies. Of the big three wireless providers,
AT&T (T Quote - Cramer on T - Stock Picks),
Verizon (VZ Quote - Cramer on VZ - Stock Picks) and
Sprint (S Quote - Cramer on S - Stock Picks), Cramer would only keep AT&T and Verizon. Sprint, he says, "is just a disaster."
On Jan. 18, Sprint pre-announced sizeable downward pressure on subscriber growth, a move which brought down shares of AT&T and Verizon as well. But if you believed the Sprint news, you would've lost out, Cramer warned.
Just one week later, AT&T announced a net gain of 2.7 million new subscribers, compared to a loss of 100,000 subscribers for Sprint. Shortly thereafter, Verizon announced a net increase of 1.9 million subscribers.
TheStreet.com Staff
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