Cramer's 'Mad Money' Recap: The Hideous $6 Billion Tax Rebate
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Jim Cramer told viewers of his "Mad Money" TV show on Friday that the recent decision by Congress to give a $6 billion tax rebate to the country's largest homebuilders is "a conspiracy that's sabotaging the value of your home."
Cramer: Stagflation? Whatever
Sticking With Schering-PloughCramer once again welcomed Fred Hassan, Chairman and CEO of Schering-Plough (SGP), to the show to discuss the ongoing controversy surrounding the company's anti-cholesterol drug Vytorin. Cramer said Schering-Plough, which he also owns for his
A Porfolio for the TimesCramer unveiled a new, diversified dividend portfolio for investors. In "a period of incredibly low interest rates," he advised investors not try and hit home-runs with their stock picks, but instead just try and get on base. The new portfolio includes Dow Chemical (DOW), with a 4.2% yield and 65% of its business residing outside of the U.S. It also includes Permain Basin Royalty Trust (PBT), a U.S. Energy Trust split 50/50 amongst oil and natural gas, yielding 9.8%. The third stock in the portfolio is World Wrestling Entertainment (WWE). With a 7.8% yield, Cramer said this entertainment giant is a steal. Fourth is CPFL Energia (CPL), the Brazilian electric utility yielding 5.9%. The fifth is HCP (HCP) with a 5.2% dividend yield. Altogether, Cramer said this portfolio yields three times that of the S&P average, which translates to a 4.7% yield after taxes. "In a low-growth world, we want stocks with stability and consistency," said Cramer. "That's why these stocks are perfect for your 401k."
Mad MailCramer told a new investor that that the first $10,000 of his portfolio should be invested in an index fund, and not in individual stocks. Afterward, he said, investors should stay away from speculative stocks like Darling International (DAR) and stick with stable stocks like Goldman Sachs (GS).
Lightning RoundCramer was bullish on Goldman Sachs (GS), Urban Outfitters (URBN), VF Corp (VFC), Jones Apparel (JNY), Target Corp (TGT), Potash (POT), Mosaic (MOS), Agrium (AGU) and Southwestern Energy (SWN). Cramer was bearish on China Finance Online (JRJC), Merrill Lynch (MER), Tata Motors (TTM), Best BUY (BBY), Cherokee (CHKE), Terra Industries Inc (TRA), Southwest Airlines (LUV), Vasco Data Security (VDSI), ING Group (ING) and Riverbed Technologies (RVBD). Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.
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