Cramer also explained the term, "multiplier," when it comes to assessing a stock's value. It refers to the price-to-earnings multiple.
Some stocks have a big multiple because they grow fast, he said. Stocks such as Exxon Mobil(XOM Quote) and ConocoPhillips(COP Quote) have a low multiplier because people expect lower growth in oil consumption. Finally, Cramer suggested listeners look at Google(GOOG Quote) as an attractive trade, in light of Yahoo's(YHOO Quote) weak earnings. And instead of Wachovia, consider US Bancorp for their trade.Lightning Round
Cramer was bullish on Disney(DIS Quote), Staples(SPLS Quote) and True Religion(TRLG Quote). He recommended selling United Airlines(UAL Quote), Veolia Environment(VE Quote), Peabody Energy(BTU Quote), Acco Brands(ABD Quote), Office Depot(ODP Quote) and Colonial Bancgroup(CNB Quote). 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.- Loading Comments...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,308.26 | 1,096.07 | 2,180.05 | 34.87 |
Oil *
73.22
|
|
DOWN
132.86
|
DOWN
13.11
|
DOWN
26.86
|
DOWN
1.09
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10 Yr
3.49%
SPDR Gold
107.34
|
|
-1.27%
|
-1.18%
|
-1.22%
|
-3.03%
|
Data delayed 20 minutes |














