"Most losers stay losers," Cramer told viewers, as he examined the dogs of the S&P 500 for 2010. Just because a stock has come down, said Cramer, doesn't make it cheap. While may big losers eventually snap back, bad companies are not worth owning at any price.
When Cramer last looked at the dogs of the S&P back in July, the results were incredibly positive. Cramer identified Nvidia (NVDA), Jabil Circuit (JBL) and Verizon (VZ), three stocks that are up 55%, 44% and 42% respectively.
But this year's dog are a different story, said Cramer. They include Dean Foods (DF), H&R Block (HRB), Apollo Group (APOL), Diamond Offshore (DO), Supervalu (SVU), Western Digital (WDC) and Pulte Homes (PHM).With each of these stocks declining between 24% and 55% over the past year, Cramer said investors may be tempted to buy into these stocks. But secular trends are working against each and every one, said Cramer, from Dean Foods, which is fighting overcapacity, to Diamond Offshore, which has the wrong type of drilling rigs, to Supervalu, which is struggling with its Albertson's acquisition. Cramer said in the oil patch, stocks like Schlumberger (SLB), or Action Alerts PLUS name Weatherford (WFT), would be better plays. Investors looking for housing exposure need to consider Bank of America, said Cramer. Of all of the dogs he examined, Cramer said he wouldn't be a buyer of any of them.