This Day On The Street
Continue to site
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

Cramer's 'Mad Money' Recap: A Portfolio From Your Morning Routine

American Axle (AXL): "I can't recommend auto parts right now."

Eldorado Gold (EGO): "No, I'm not going to recommend a gold stock when I can recommend the SPDR Gold Shares (GLD)."

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Joe Almeida, chairman, president and CEO of Covidien (COV), a company that's taking control of its own destiny by spinning off its pharmaceutical business. Shares of Covidien have popped 25% since Cramer first got behind the company on Dec 9.

Almeida said the spinoff is all about bringing value to Covidien shareholders. He said the pharmaceutical and medical devices business have very different life cycles, which is why the split will make sense to prospective shareholders of each entity.

Almeida said the slower-growing drug business is still a great business, one that's in great markets and able to deliver healthy margins and cash flows. Meanwhile, the fast-growing medical devices business has been refocused on growth and is concentrating on disruptive technologies that are bringing new treatments to patients that previously could not be treated.

When asked about the pressures of health-care reforms to cut costs on medical devices, Almeida noted that hospitals will always pay for devices that save lives, which is what Covidien offers. He said the company always looks at all its devices through both clinical and economical prisms, which is why they can deliver life-saving devices at the right price.

Cramer continued his support for Covidien.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on what this quarter's earnings season is likely to produce. In a word, selling -- lots of selling.

Cramer said there are two sides to an earnings season, the actual earnings and the outlook. He said while the earnings are likely to be OK this quarter, the outlooks will most definitely be cloudy.

Take Intel (INTC), Cramer said it will be hard for Intel to marginalize the slump in Europe and even the company's 3.5% divined yield might not be enough to stem a decline. That leaves little hope for lesser-performers like Hewlett-Packard (HPQ) and Research In Motion (RIMM).
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
ONXX $0.00 0.00%
COV $106.71 -1.26%
PCYC $261.25 0.66%
ARNA $2.71 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs