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NEW YORK ( TheStreet) -- What makes for a winning stock in today's market? Jim Cramer told his "Mad Money" TV show viewers Tuesday that he's figured out the winning formula.
While the professional money managers are fretting over when the Federal Reserve will stop its bond buying and thus "take away the punch bowl" just as the market's rally is gaining steam, the Fed's "special sauce" is making bonds, bank CDs and Treasuries unpalatable, Cramer said. Thus, stocks with big yields including Clorox (CLX), Kimberly-Clark (KMB) and General Mills (GIS) are getting a big boost.
Executive Decision: David SteinerIn the "Executive Decision" segment, Cramer once again spoke with David Steiner, president and CEO of Waste Management (WM), another Action Alerts PLUS holding, the country's largest disposal company and one with a 3.7% dividend yield and a $500 million stock buyback program. Steiner explained that the boom in the housing market will become a boon for Waste Management because more home construction generates more waste and eventually those new homes become residential customers. That, in turn, drives commercial development further down the line, which also generates more customers for Waste Management. He said cleanup from Hurricane Sandy along the east coast will add to the bottom line. When asked about the possibility of converting his company into a REIT, Steiner said his company is always looking for ways to make more money for its shareholders. He said while Waste Management will not be leading in this area, it continues to look at whether REITs or MLPs offer shareholders more advantages.
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