This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: Star Spangled Portfolio (Final)

Stocks in this article: AAPLETNTETHKO

Cramer said, if Coke can deliver inline earnings when things are bad, that bodes well for the future now that both corn and aluminum prices are falling and rival PepsiCo (PEP) is in the middle of restructuring efforts.

Coke trades at 16.5 times earnings and is just off its 52-week high. Cramer said that may seem expensive until investors look back at the company's 10-year historical average, which is 23 times earnings. Under that lens, shares of Coke are near a 20-year low.

Off the Charts

Have shares of IBM (IBM) formed a bottom? In the "Off the Charts" segment, Cramer went head to head with colleague Carolyn Boroden to find out. IBM shares barely budged after the company reported a 13% dividend boost and a sizable addition to its already considerable stock buyback program.

Using a technique called "symmetry," or "measured moves," which theorizes that stock swings in the same direction tend to be of the same size, Boroden was able to calculate a "comfort zone," a good time to buy a stock that has just about completed its correction. Cramer said this method may seem silly but is actually quite accurate.

Boroden noted that shares of IBM tend to pull back in a range of $16 to $28. That suggests IBM's recent pullback should end between $192 and $196 a share. Sure enough, shares hit an intra-day low of $196.70 yesterday before rebounding then rising again on today's earnings and dividend news.

Boroden uses the same technique for Conoco-Phillips (COP), predicting a range between $70 and $71 a share, just 50 cents below current levels. If Conoco is able to hold that level, Boroden felt shares could rally to $80, given the company's breakup plans.

Bed Bath & Beyond (BBBY), another decliner, should stop between $65 and $66 a share, according to Boroden, creating another opportunity to buy.

Cramer said he agrees with Boroden's analysis, calling all three stocks winners on both the technicals and fundamentals.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the coming Facebook IPO, telling investors that he would still be a buyer of this hotly anticipated offering unless shares are priced at outrageous levels.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs