Cramer's 'Mad Money' Recap: Get Smart and Invest
Click here for an archive of Cramer's "Mad Money" recaps.
Ignore the negativity in the markets and use the opportunity to take advantage of some investment opportunities, Jim Cramer told viewers of his "Mad Money" TV show Thursday.
Cramer said the negativity is a reflection of the "stupidity" of nervous traders who sold off shares after the Federal Reserve's recent rate cut because they didn't understand just how significant it was.Cramer said they didn't realize the rate cut represents an important turn for the economy, offering an opportunity for investors to get back into the markets.
Disney's Upside"On Tuesday, we saw a great miscarriage of justice," Cramer told viewers, referring to Citigroup's recent downgrade of Walt Disney (DIS). Everything about this downgrade is dead wrong, he said. Cramer said Citigroup's report only addresses the Disney theme parks, and not the company's cable, broadcast, DVD or film ventures. Only 22% of Disney's net income last year came from its parks, Cramer noted, while 45% of its income came from its cable properties. The report also cites the rising cost of energy, a weak housing market and slowing consumer spending as warning signs. But Cramer says all of these points are old news that's been factored into the stock. In addition, he said Disney's management took the unusual step of publicly refuting many of the arguments in Citigroup's report. At just $30 a share, Disney trades at just 15 times this year's earnings but maintains a 13% long-term growth rate. "This makes Disney historically cheap," Cramer said. He called Disney "a great long-term buy."
The Fight Against Breast CancerCramer says there's an epidemic of breast cancer in this country, and he believes Hologic (HOLX), a company he owns for his charitable trust
Am I Diversified?Viewers called Cramer to find out if their portfolios were up to par for the new bull market. The first caller had Altria (MO), Pfizer (PFE), Apache (APA), Citigroup (C) and Mosaic (MOS) as his top holdings. Cramer applauded the portfolio. The second caller had Sirius Satellite (SIRI), Caterpillar (CAT), Mercadolibre (MELI), Lowe's (LOW) and Sears Holdings (SHLD) as her top holdings.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV