Cramer's 'Mad Money' Recap: It's Time to Buy
Click here for an archive of Cramer's "Mad Money" recaps.
"The market has gotten way too negative," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.
"The market took down a lot of good stocks that don't have anything to do with the economy, consumer spending or Fed chairman Ben Bernanke," he said. "Pull the trigger and just buy something."Cramer still sees bull markets in agriculture, defense, mining and minerals, oil and natural gas and healthcare cost containment stocks. He reiterated his buys on natural gas driller Chesapeake Energy (CHK) and Agnico-Eagle Mines (AEM) in the gold sector.
Defending the MergerCramer once again voiced his outrage at efforts in Congress to block the merger of Sirius Satellite (SIRI) and XM Satellite Radio (XMSR). He dismissed the argument that a combined Sirius-XM would raise pricing and noted the company's plans to offer a la carte pricing for as little as $6.99 per month. "Consumers will have lower prices with the combined company," he explained. Cramer also debunked the notion that the Sirius-XM merger is similar to the blocked merger attempt between DirecTV (DTV) and Echostar (SATS). "TV is not the same as radio," he said. Unlike the world of TV where satellite TV often competes with only a single cable operator, there will always be terrestrial radio to compete with satellite radio, he said. Finally, Cramer took issue with the notion that XM and Sirius can survive just fine without the merger. He said he's worried about XM's balance sheet and noted that consumers will get a monopoly anyway if XM goes under. He urged viewers to contact their members of Congress and demand that the merger get done.
Western Union's Rising StarCramer called Moneygram (MGI) "one of the worst companies I've ever seen." He told viewers that when a company is in turmoil, investors should be running to its closest competitor. In this case, Cramer suggested that Western Union (WU) is now poised to aggressively take share from the ailing Moneygram. According to Cramer, Moneygram's recently announced recapitalization plan is horrible for the company and its shareholders. That leaves Western Union with attractive opportunities as Moneygram restructures. Even before its recent collapse, Western Union was already three times larger than Moneygram. Cramer says Western Union is in great financial shape and noted that "the outlook for wire transfers is bright, regardless of which political party takes control of the White House in November." Western Union recently beat earnings estimates by a penny a share and gave good guidance for the rest of 2008. The company trades at just 17 times its current earnings, but trades at just over 12 times its long-term growth rate.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV