This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: The Big Bang

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


"The bear market has ended with a bang," Jim Cramer told viewers of his "Mad Money" TV show Monday.

The demise of Bear Stearns (BSC), he said, signaled to investors that it's finally safe to get back into stocks.

The beginning of the end occurred a few weeks ago when the situation looked pretty bleak for the markets. At that time, Cramer said, it looked as if both Freddie Mac (FRE) and Fannie Mae (FNM) were going under.

Cramer: Want to Beat Me Up About Bear? Bring It On!

"Things seemed to only get worse with every interest rate cut the Federal Reserve made," he said. And then the failure of Bear Stearns occurred and made investors jittery about their money, Cramer noted.

"But now," said Cramer, "things look very different." For starters, he said, both Freddie and Fannie are back on their feet with the backing of the U.S. Treasury. The bulk of the bad home loans, Cramer predicts, will reset at lower interest rates within the next six months and cause home prices to stabilize.

Cramer also sees banks finally starting to lend money again, as interest rates are low enough for them to make money.

Cramer advised investors to start buying back into stocks slowly. He continued to recommend buying growth stocks with good dividends, but he also recommended retail stocks, technology stocks and even some strong financials.

He likes EMC (EMC - Get Report), a stock which he owns for his charitable trust, Action Alerts PLUS , and IBM (IBM - Get Report) in the technology space.

He also recommended Apple (AAPL - Get Report) and Research In Motion (RIMM) on any weakness.

And he favored Goldman Sachs (GS - Get Report), another Action Alerts Plus stock, as well as JP Morgan (JPM - Get Report) in the financial sector.

Just One Hurdle to Go

"Justice has been served," said Cramer, referring to the Justice Department's decision to approve the merger between Sirius Satellite (SIRI - Get Report) and XM Satellite Radio (XMSR).

The merger still requires approval by the Federal Communications Commission (FCC), an agency which Cramer lambasted as the "Federal Cartel Creators".

According to Cramer, the FCC's one-year, 35-day approval process is a travesty of justice and only denies consumers more choice and lower prices. He once again urged viewers to visit the FCC's Website at www.fcc.gov to voice their support for the merger.

Cramer puts a $5 price target on Sirius if the merger gets approved.

Big Growth Plans

Now that the market's bottomed, Cramer recommended Costco Wholesale (COST) as his favorite retail stock. "The analysts on Wall Street," he said, "are just too negative on Costco."

"This company is best of breed," said Cramer, who welcomed Jim Sinegal, President and CEO, of Costco to the show for an update on the company's outlook.

Sinegal responded to criticisms that the company's labor costs are too high by saying his company pays its employees a fair wage to produce good results.

He also sees a lot of room for growth at Costco, both domestically and abroad. He said Costco could double its footprint over the next 10 years.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
SIRI $3.82 -1.90%
S $4.64 -1.70%
T $34.76 -0.56%
SYX $8.50 -0.58%
VZ $49.53 -0.08%

Markets

DOW 18,119.69 -43.30 -0.24%
S&P 500 2,119.06 -4.42 -0.21%
NASDAQ 5,094.12 -12.4730 -0.24%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs