Jim Cramer said this week that "it's time to party like it's 1985" because big-cap stocks' strong rally reminds him of the mid-1980s bull run. The doom and gloom from the media has retail investors a bit nervous but Jim believes we have an amazing situation emerging here.
He talked a lot about picking the right spots in which to enter this market and also talked about coal stocks catching fire, natural gas plays, drilling stocks and many more. Here are some of the highlights from Jim over the past week (aggregated from Mad Money, Stop Trading! and his articles).
: Cramer pointed out during the week that "natural gas keeps ramping" and we are now up to $8. Cramer believes that begs the question, at what price do they start drilling in Canada? Or better yet, when will they start the big push to drill natural gas in lower 48? The bottom line is the price of natural gas is high and Cramer believes the companies that drill and produce it deserve higher prices. He gave us these
, which include
: Cramer believes it is time for retailers to run. He stated, "Things are going to get better.
shows that refining margins have peaked, meaning we have seen the high in gasoline. We are going to have a better-weather May.
Despite what you hear about the Federal Reserve, it's so clear the domestic economy is still faltering from housing that it's getting ridiculous. I can't believe anyone at the Fed wants no growth domestically. That all translates into a bottom for retail. He gave us these
: Cramer presented a list of five great CEOs who he believes have managed to turn around dead franchises into living, thriving ones. Cramer is typically very tough on CEOs but also very fair. When he sees a quality CEO doing an excellent job, he lets the investment community know about it. Jim gave us his
: Cramer reminded us that slowing growth and a high multiple is a toxic combination. For this reason, Cramer can't understand how people give both
a pass. He feels these two stocks are still way too high vs. the slowing fundamentals, at 33 times and 29 times earnings, respectively.
Although Cramer is not a fan of SBUX or WFMI, he believes you can do better with
-- consistent, better growth -- for much less. He also likes
, which is really putting the numbers on the board compared to these other two. Either way, Jim would stay away from
: Cramer noted that "geopolitics and reality are driving these drilling stocks relentlessly higher. So many analysts have said that this move isn't sustainable, day rates can't climb or natural gas drilling will remain in a permanent bear market that now, when the stocks won't quit, people are at last talking about the secular growth story instead of the inevitable boom-bust one."
Cramer emphasized that finding oil has become so difficult that you need the help of the major deep-water drillers along with the service companies to find and bring the oil to market. This fact, coupled with the analysts being so negative has Cramer believing this group "has legs."
: Cramer asked earlier if coal stocks were enjoying a renaissance because our government actually supports coal. There was a Washington Post article on the subject that reported that a Depression-era program is using taxpayer money to build coal plants even as Congress tries to cut back on greenhouse gases. Cramer believes consolidation is coming and believes the price of coal and therefore coal stocks are going higher. He gave us his
, which includes
Cramer was full speed ahead last night with his latest
. He was bullish on several stocks such as CSCO and MMM but also bearish on the likes of LAMR and HPOL.
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
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