For "Speculation Friday," Cramer recommended Allos Therapeutics (ALTH), a small $5.64 a share biotech.
Cramer said Allos has everything he wants in a speculative stock: It's cheap, it's not a bank stock, it's not an insurance stock, and it's got a hot new drug headed to FDA approval.
A China PlayAfter President Obama wrecked the healthcare stocks and proposed big tax increases on the oil stocks this week, Cramer told viewers they need to Obama-proof their portfolios. He recommended once again looking overseas, to recession resistant companies outside of the president's taxable teach. Cramer said Australian mining giant BHP Billiton (BHP) fits the mold, with it's juicy 4.5% dividend yield. Cramer said BHP is simply a play on the recovery in China. With the price of iron up 25% since October and 20% of BHP's sales coming from China, Cramer said the connection should be obvious. Shares of BHP have fallen from a high of $95 a share all the way down to just $36 today. Cramer said the company has a strong balance sheet, with more than enough free cash flow to cover its dividend payments. The company is also taking market share, making it the perfect way to play the Chinese recovery.
Mad MailCramer told a viewer that he's not worried about the oil reserves of Permian Basin Royalty Trust (PBT), because the company is always finding more oil. But he advised not paying up for the stock, given the stock's 20% pop on yesterday's recommendation. When a second viewer expressed concerns over BP's (BP), Cramer said he also is concerned and is keeping a close eye on the situation, but feels the dividend ultimately will be OK. Another viewer asked Cramer whether the SDPR Gold Shares (GLD) is big enough to manipulate the price of gold. Cramer said frankly, yes. He said that while 60% of gold is used for jewelry, much of the remaining 40% goes to stock the Gold Shares. But, he said, with gold coming down in recent weeks, he thinks that risk is now minimal.
Lightning RoundCramer was bullish on Terra Nitrogen (TNH), ConAgra Foods (CAG), Air Products and Chemicals (APD), Walt Disney (DIS), Papa Johns Internationa (PZZA) and Darden Restaurants (DRI). He was bearish on Intrepid Potash (IPI), Johnson Controls (JCI), Clearwire (CLWR) and Logitech International (LOGI). Check out the latest edition of "Cramer's Take on Top-Searched Stocks" on Stockpickr. Want more Cramer? Check out Jim's rules and commandments for investing by clicking here. Read more of Cramer's Mad Money Lightning Round insights. For "Mad Money" performance statistics and other links, check out Mad Money stats
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV