Mad Money Recap

Cramer's 'Mad Money' Recap: H&R Block's Turnaround

03/19/08 - 07:50 PM EDT


Click here for an archive of Cramer's "Mad Money" recaps.


"When a company is getting ready to crush its competition, it's time to invest," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

He says H&R Block HRB is in a position to do that against its faltering competitor Jackson Hewitt JTX.

Hewitt announced what Cramer called awful earnings on March 4, after which the stock has declined more than 61%. "Hewitt's loss is Block's gain," said Cramer, likening the situation to that of Western Union WU capitalizing on the demise of Moneygram MGI.

Cramer: Goldman's Still Got It

Cramer, who once hated H&R Block, says he now likes the company. He noted the company's pending sale of its OptionOne franchise as a catalyst for the stock.

Once the deal is completed, Cramer said Block will be leaner, meaner and much easier for Wall Street to understand and appreciate. He also gave a thumbs up to the company's new management team headed by chairman Richard Breeden, who was the former chairman of the Securities Exchange Commission.

Cramer says Block should perform well in a recession. He noted the company did well in a similar economic environment in 2001, when the stock rose 45% between April and November.

H&R Block currently trades at just 12.9 times 2009 estimates, and Cramer said the stock is a buy at $19 to $20 a share.

Timber!

Cramer went out on a limb to recommend lumber company Weyerhaeuser WY as a stock that should be in investors' portfolios.

According to Cramer, Weyerhaeuser's stock has been under pressure recently due to concerns over housing exposure. "But that's just wrong," he said.

He says investing in the company would be a play on the recovery of the housing market, along with a safe 3.8% dividend yield to boot.

Cramer suggested valuing the company on its assets and not on its current earnings. The company currently controls over 6.4 million acres of timberland, with another 15 million acres in Canada.

It also recently sold its containerboard packaging and recycling business to International Paper IP for $6 billion and plans to use the proceeds to pay down debt.

Another positive is the Tree Bill currently under consideration in Congress. If the bill passes, Cramer says Weyerhaeuser can realize sizeable tax savings.

According to Cramer, the company only looks expensive at 26 times 2009 earnings estimates. He feels the company could earn as much as $4 a share by 2010, making it worth as much as $81 a share. He recommended buying Weyerhaeuser below $60 a share.

Dealing With the Recall

Cramer again welcomed Zan Guerry, chairman and CEO of Chattem CHTT to the show to discuss the company's recall of its "Icy Hot" products.

Guerry called the decline in his company's stock price, which has fallen more than $11 since the Feb. 8 announcement of the recall, an overreaction. He said the company's other brands are still doing well, despite the negative news. He also said his company has never seen any problems with the Icy Hot products when used properly.

Previous «
1 2
At the time of publication, Cramer was long Conoco-Phillips and Freeport McMoRan.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.


TheStreet Picks

Mad Money Recap

Go To Section Home


03/18/08
Cramer's 'Mad Money' Recap: Why This 420-Point Rally Is Different

Cramer thinks Tuesday's huge rally may have been the bottom of the market.


03/17/08
Cramer's 'Mad Money' Recap: The Bear Stearns Fiasco

The Fed's bailout of Bear sets a bad precedent for other financials, Cramer says.


03/14/08
Cramer's 'Mad Money' Recap: Don't Overlook Big Pharma

Merck and Schering-Plough are due for a bounce-back, Cramer says.


04/28/08
Cramer's Take on the Top 10 Searched Stocks

Apple and AT&T were among the most searched stocks on TheStreet.com Friday. Here's what Cramer had to say about them recently.


04/26/08
Jim Cramer's Best Blogs

Catch up on his thinking on the hottest topics of the past week.


04/26/08
Coming Week: Make or Break

Investors will have to deal with a Fed meeting and another flood of earnings and economic data.


04/27/08
This Week's Barron's Roundup

Looking for deep value with Defiance Asset Management, polling big investors about where the market's headed, plus much more.


04/28/08
Monday's Analysts' Upgrades, Downgrades

See who made what calls.


02/29/08
3 Stocks I Saw On TV

3 Stocks I Saw On TVDan Fitzpatrick examines three stocks viewed on Fast Money and Mad Money Today's stocks include Deere & Co., Petrobras and MBIA


04/28/08
One Bank Pick Stumbles, the Other Soars

TheStreet.com Ratings checks in on First Community Bancorp and First Niagara Financial Group two months after recommending the stock.


04/28/08
Grand Theft Auto IV Hits the Jackpot

Take-Two's latest hit receives a perfect score from industry reviewers.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Premium Stock Ideas