Mad Money Recap
Cramer's 'Mad Money Recap': Debating the Market's Bottom Doesn't Matter
05/16/08 - 07:48 PM EDT
An Infrastructure Play on Wind Power
For speculation Friday, Cramer turned to his favorite form of alternative energy, wind power, recommending MasTec MTZ as a stock investors need to own. Cramer said MasTec mainly builds infrastructure for the telco and energy industries, but it also has a budding wind power business that's gaining momentum.
The Boom in Internet Advertising
Cramer talked with Gian Fulgoni, chairman of Comscore SCOR, to help decipher the company's recent report on advertising traffic at Internet giant Google GOOG. Fulgoni explained that since Google does not provide earnings guidance to analysts, the company is often desperate for any information about the company. This is why Fulgoni believes that many analysts misread Comscore's recent traffic report on Google, which only included domestic traffic and not international traffic. He said that while domestic click-thru's are flattening, Google continues to see growth overseas. Fulgoni also described Internet advertising as healthy overall. He said the online advertising business is on fire. He noted advertisers are increasingly finding they can get more bang for their buck online and often at less cost than traditional advertising. In a tightening economy, he felt advertisers would rely on the Web even more.Eco-Packaging
For investors looking for a great turnaround story, Cramer recommended Packaging Corp of America PKG, the sixth largest producer of cardboard and containerboard in the U.S. According to Cramer, the worst is now over in the container business. He said that things are improving and now's the time to buy. Cramer said he likes Packaging Corp. because supplies of container board continue to be tight. With International Paper's IP recent acquisition of Wyerhauser's WY container board business, Cramer said supplies are likely to tighten even further. In a commodity business, Cramer always looks for the lowest-cost, highest-margin producer, and Packaging Corp fits that description. Packaging Corp uses only 23% of the higher priced recycled materials in its products compared to the industry average of 51%. Cramer said that while this may not be environmentally friendly, it makes PKG the cheapest producer out there. The company also uses far less natural gas in its production, giving it additional cost savings. With a 5.1% dividend yield and a $110 million stock buyback program that accounts for 4% of the shares outstanding, Cramer said investors can't go wrong. Packaging Corp trades at just $4 off its 52-week low, but Cramer thinks the stock could rise to $33 a share on any turn in the economy.
Lightning Round
Cramer was bullish on Hanesbrands HBI, Potash POT, France Telecom FTE, Capstone Turbine CPST, Exxon Mobil XOM and Gafisa GFA. Cramer was bearish on Diebold DBD, Granite Construction GVA and Red Hat RHT.Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-PloughSPG, Yamana GoldAUY and Inverness MedicalIMA. Want more Cramer? Check out Jim's rules and commandments for investing by clicking here. For more of Cramer's insights during the Lightning Round, click here.
Investors should take a look at Banco Santander, the No. 1 bank in the country, Cramer says.
Cramer says the company is well positioned to profit on the rapid growth of wind power.
Cramer talks with the head of Toll Brothers about the state of the housing industry.
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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