Cramer's 'Mad Money' Recap: A Broader View of the Market (Final)
Off the Charts
Cramer went head to head with colleague tim Collins over the chart of Chesapeake Energy (CHK), a stock which is down 15% since Cramer last recommended it on Feb. 23.
According to Collins, Chesapeake may have finally turned the corner, but its upside will be limited. He noted the stock making higher lows since July on the daily chart, with the relative strength index also trending higher. Collins felt the floor for Chesapeake is around $21 a share, but the upside may be capped at $24 a share.
With the weekly chart confirming his theories, Collins said he'd be a buyer of Chesapeake between $21 and $22 a share.Turning to the fundamentals, Cramer said he's not concerned about limited upside, just that Chesapeake has turned the corner and now has some positive momentum. He said once the stock gets moving, it will likely continue. Cramer said many people still consider Chesapeake as only a natural gas company, but in reality it's bumping its oil assets from 10% of its production to 25% total production by 2015. The company has also stopped spending on its natural gas assets until prices for the fuel recover from their lows. With Chesapeake's disciplined strategy for growth, and an enterprise value what exceeds its share price, Cramer reiterated his buy on the stock.
Lightning RoundCramer was bullish on Electronic Arts (ERTS) and Baidu.com (BIDU). He was bearish on Activision (ATVI) and China MediaExpress (CCME). -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. For more of Cramer's insights during the Lightning Round, click here.
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