Mad Money Recap
Cramer's 'Mad Money' Recap: Get Under GE's Umbrella
03/20/08 - 07:44 PM EDT
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"There's one stock that's the key to understanding this market," Jim Cramer told viewers of his "Mad Money" TV show Thursday. "And that stock is General Electric GE." General Electric is a great indicator of the economy, says Cramer, since the company deals is in so many diverse businesses. "If General Electric is doing well, then so is the economy."
Cramer: Dividends No Help Right Now |
A Healthy Safety Net
Cramer recommended HCP HCP, one of the largest real estate investment trusts focused on healthcare, as a perfect safety net for investors' portfolios. Cramer advised investors to not roll over their certificates of ceposits at the bank and instead invest in HCP's 5.8% dividend yield. "HCP is the antidote of recession," said Cramer, noting that healthcare is not dependent on the economy. HCP's current portfolio of properties totals just over $13.6 billion. In addition the company has recently been selling its less profitable properties and cutting its debt. Cramer expects the stock to edge higher each time one of these properties is sold and the debt comes down. According to Cramer, HCP is "at the right place at the right time."Getting Killed by the Shorts
"To understand why this market has been so brutal," Cramer told viewers, "you need to understand some market mechanics." Cramer said the market volatility has been due, in part, to "bear raids," hoards of hedge funds and short sellers that gang up on a stock to drive the price lower. "This kind of savagery has cost the average investor millions and millions of dollars," said Cramer. He said the "savagery" can be explained by an action that the SEC took on July 6, 2007, when it rescinded what is commonly known as the "up-tick rule." This rule, originally put in place back in the 1930's, prevented short sellers from having the upper hand. The removal of the uptick rule has clearly had a visible impact on the markets. Cramer noted that the Dow Jones Industrial Average was at 13,577 on July 6, 2007. On Thursday, the average closed at just 12,361.The company is clobbering the competition and making smart moves, Cramer says.
Cramer thinks Tuesday's huge rally may have been the bottom of the market.
The Fed's bailout of Bear sets a bad precedent for other financials, Cramer says.
Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.
Catch up on his thinking on the hottest topics of the past week.
Investors will have to deal with a Fed meeting and another flood of earnings and economic data.
Ensco International and Echelon have the potential to move higher in coming days.
See who made what calls.
The addition of video is helping telecom companies compete against cable and satellite companies.
The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.
See who made what calls.
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