Jim Cramer's Portfolios of the Week
By Roberto Pedone
WINDERMERE, Fla. (
) -- According to Jim Cramer,
all the banks need is some clarity.
In an April 29
RealMoney.com
blog post, he said we are going to get a bill that, while not benign to the sector, isn't malignant. Cramer pointed out that the financial reform bill will end up regulating derivatives, will list and trade those derivatives on exchanges and will have some sort of consumer-protection agency on mortgages and more scrutiny of the capital positions of the banks.
He said the new bill will not take away the big banks' ability to offer a full suite of lending options, including interest-rate swaps and hedges. This would have just forced customers to drop banks such as
JPMorgan Chase
(JPM) - Get JPMorgan Chase & Co. Report
in favor of institutions that aren't facing regulation, such as
Deutsche Bank
(DB) - Get Deutsche Bank AG Report
,
Credit Suisse
TheStreet Recommends
(CS) - Get Credit Suisse Group AG Report
and
Toronto-Dominion
(TD) - Get Toronto-Dominion Bank Report
.
Even more important, Cramer thinks that if the new bill gets passed, it will finally allow Wall Street analysts to assign estimates to the banks on what they can earn. He thinks the new clarity will show that many of the bank stocks are cheap. This should start to push names such as
Morgan Stanley
(MS) - Get Morgan Stanley Report
,
Citigroup
(C) - Get Citigroup Inc. Report
and maybe even
Goldman Sachs Group
(GS) - Get Goldman Sachs Group, Inc. Report
higher.
Recently, Cramer found opportunity in stocks that will benefit off of five major investment themes, housing-related stocks and five stock surprises that Wall Street missed. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on
CNBC
and his
RealMoney
blog posts (these blog posts might require a
RealMoney
subscription).
Cramer's Five Big Investment Themes
: Cramer has identified five major investment themes that make stocks such as
Apple
(AAPL) - Get Apple Inc. Report
and Citigroup must-buys. On
last Thursday's "Mad Money" TV show,
he told viewers that the markets are paying up for banks that have revenue growth, and that's why stocks such as
PNC
(PNC) - Get PNC Financial Services Group, Inc. Report
and
Huntington Bancshares
(HBAN) - Get Huntington Bancshares Incorporated Report
are great investments. The
Cramer's Five Big Investment Themes
portfolio includes
Wynn Resorts
(WYNN) - Get Wynn Resorts, Limited Report
and
Whirlpool
(WHR) - Get Whirlpool Corporation Report
.
>> Who Owns Apple?: Prince Al-Waleed
Five Stock Surprises Wall Street Missed
: Recently, Cramer highlighted five stock surprises that Wall Street missed. In an
April 26 blog post,
he wrote: "
Netflix
(NFLX) - Get Netflix, Inc. Report
has the best subscriber growth of any business I know of, and there are myriad portfolio managers who love subscriber models for their incredibly consistent cash flow and easy-does-it renewals." The
Five Stock Surprises Wall Street Missed
portfolio includes
Chipotle Mexican Grill
(CMG) - Get Chipotle Mexican Grill, Inc. Report
and
Deckers Outdoor
(DECK) - Get Deckers Outdoor Corporation Report
.
>> Who Owns Netflix?: Renaissance Technologies
Stocks Better Off Today Vs. Three Years Ago
: Cramer has spotted a number of stocks that are better off today than they were three years ago. On
Wednesday's "Mad Money" TV show,
he said
Home Depot
(HD) - Get Home Depot, Inc. Report
was just starting the housing bust three years ago, but now the bottom is at hand. The
Stocks Better Off Today Vs. Three Years Ago
portfolio includes
Intel
(INTC) - Get Intel Corporation Report
and
Boeing
(BA) - Get Boeing Company Report
.
>> Who Owns Home Depot?: Tweedy Browne
Stock Buys Off the Goldman-Sparked Slide
: Cramer thinks market players should look to buy names such as
SanDisk
(SNDK)
and
Bank of America
(BAC) - Get Bank of America Corp Report
. In an
April 27 blog post,
he wrote: "This is one of those "let it snow" moments where we are going to be able to pick up the best for less." The
Stock Buys Off the Goldman-Sparked Slide
portfolio includes
Cree
(CREE) - Get Cree, Inc. Report
and
JPMorgan Chase
(JPM) - Get JPMorgan Chase & Co. Report
.
>> Who Owns Bank of America?: John Paulson
Cramer's Housing-Credit Stock Plays
: Cramer thinks the expiration of the housing credit is a nonissue for stocks such as
Sears Holdings
(SHLD)
and
D.R. Horton
(DHI) - Get D.R. Horton, Inc. Report
. In an
he wrote: "I let the stocks do the talking. Every single entity related to housing is flying. Go listen to
Owens Corning
(OC) - Get Owens Corning Report
, which was remarkable for housing." The
Cramer's Housing-Credit Stock Plays
portfolio includes
Weyerhaeuser
(WY) - Get Weyerhaeuser Company Report
and
Fortune Brands
undefined
.
>> Who Owns Sears?: Bruce Berkowitz
Cramer's Something-for-Everyone Stocks
: Cramer thinks the current market reminds him of the 1980s rallies where the market was experiencing gains in almost every sector. In an
April 23 blog post
, he wrote: "Still, there is plenty to buy. We liked
Johnson Controls
(JCI) and
Honeywell
(HON) - Get Honeywell International Inc. Report
a great deal and think the companies are simply not talking themselves up enough." The
Cramer's Something-for-Everyone Stocks
portfolio includes
Western Digital
(WDC) - Get Western Digital Corporation Report
and
Teva Pharmaceutical
(TEVA) - Get Teva Pharmaceutical Industries Ltd. Report
.
>> Who Owns Teva?: SAC Capital
-- Written by Roberto Pedone in Windermere, Fla.
RELATED LINKS:
>>"Fast Money" Portfolios of the Week
>>Airline Industry Winners & Losers
>>Must-See Charts: Exxon, Aflac
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