This Day On The Street
Continue to site
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

Jim Cramer's 'Mad Money' Recap: Apple Is a Bargain

Among the bright spots for Honeywell are aerospace, where the company plays in the mid- to large-size business jet market, along with its performance materials and refining businesses. Cote detailed Honeywell's modular refining products for oil shale drillers, which offers on-site oil and gas processing in as little as a one acre site, and the equipment can be constructed in as little as 60 to 90 days. That market, he said, is growing worldwide.

Other areas of opportunity for Honeywell include energy conservation, where Cote said many buildings can still save 20% to 25% on their energy bills just by using the latest HVAC and insulating technologies.

Finally, when asked about Cote's efforts to reform Washington with, Cote said there are now over 100 CEOs participating in the initiative. If everyone works together, our nation's debt problem can be solved, he said.

Expectations and Reality

Earnings season is all about expectations, Cramer reminded viewers as he highlighted what happens when a company surprises to the upside and what happens when expectations far exceed reality.

Shares of General Electric (GE - Get Report) popped 2.3% when it reported a quarter where sales were essentially flat. How can that happen? Cramer said it's because stocks trade on expectations, and those for GE were tepid at best.

Everything at GE ticked in the right direction this quarter, Cramer explained. Sales in Europe were a little better and the company's margins expanded slightly. More important, GE continues to scale back its GE Capital division, which once just served as a financing option for its expensive industrial goods, but recently became not only a sub-prime lender but also a big landholder in off all places, Europe.

Cramer said the scaling back of GE Capital has not only been a big mental boost for the company and its shareholders, but it's also allowed GE to get back to what it does best -- aerospace, power generation, locomotives, health care, oil and gas and more.

But just as companies can soar on lowered expectations, they can also plummet on soaring ones. That was the case with Stanley Black & Decker (SWK - Get Report), which saw its shares fall 14% after its earnings popped on what was essentially a tax gain. Deep inside the numbers were weakness in Stanley's security division and its government sales, both of which were thought to be only a small percentage of sales.
2 of 3

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
CCI $83.13 0.00%
GE $28.26 0.00%
HON $103.48 0.00%
SWK $91.76 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs