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NEW YORK (
) -- "Don't let the media's misdirection confuse you," Jim Cramer warned the viewers of his
TV show Wednesday.
He said while there are a lot of negatives in the market, not all are created equal.
Cramer ran down the top 10 worries in the market right now to give investors a fair and balanced assessement.
1. Today's new home sales numbers were bad. Cramer said this is actually positive news, as the biggest threat to the housing recovery is ironically the home builders. He said this lower number will hopefully cause builders to slow down their building.
2. Portugal's debt crisis. Cramer said while this story is all over the media, it's actually not important at all to U.S. markets.
3. Higher oil prices. Cramer said this is indeed a worry, and could be bad news for everyone except the oil producers if prices don't retreat soon.
4. A global slowdown caused by Japan. Cramer said Japan is bad for news for tech, but it's also good news for stocks like
, a stock which he owns for his charitable trust,
Action Alerts PLUS.
5. Turmoil in Libya. Cramer called Libya a "wait-and-see" story. He said while a quick ouster of Kadhafi is good, a drawn-out conflict would be worse.
6. Surging commodity prices. Cramer said this is a red herring, as higher commodity prices signal real industrial growth and job creation.
7. The falling dollar. Cramer said he's not worried yet because the strength of the euro has not yet reached a level where higher interest rates are needed.
8. Lagging bank stocks. Cramer said this group had promised to return capital to shareholders through returning dividends, but now, they'll have to wait for big employment gains before rebounding.
9. Worries over tech. Cramer called tech a "push," with
reporting strong numbers while
10. The autos in the doghouse. Cramer said the auto stocks are still lagging, but hopefully they'll begin turning around soon. He still likes
, another Action Alerts PLUS name.
In the "Executive Decision" segment, Cramer sat down with Matt Desch, CEO of satellite phone and data provider
, a company which blankets 100% of the earth's surface with high-speed voice and data services.
Desch said that Iridium has been in business for 11 years, and is riding the wave of wireless connectivity that's sweeping the globe. He said the business is not just about satellite phones, which are far superiors to those of the early 2000's, but mainly about providing coverage where others don't, including service for trucks, planes and ships all over the planet.
Desch also said that the tsunami early warning buoys off the coasts of Japan are powered by Iridium. He said that if the disasters around the world prove anything, it's that terrestrial networks are fragile, and that's been proven in Japan, the Middle East, China, Pakistan and Haiti.
When asked about financing for Iridiums next generation of 66 satellites, Desch explained that the project is 50% financed from Iridium's own cash and 50% financed by low cost loans from France, so the project is 100% financed and will not dilute shareholders.
Cramer said he's a believer in the Iridium story, especially given that the company has no competition and has a track record of delivering long-term results.
Hot, Cold Sectors
In the "Off The Charts" segment, Cramer went head to head with colleague John Roque over which sectors in the economy are hot, and which are not. According to Roque, the banks and the tech stocks are out, but the energy stocks and basic materials are back in vogue.
When looking at a chart comparing the market cap of the banks and tech versus the energy and materials stocks, Roque noted that there was a long upturn in the 1990s, where banks and tech ruled the day, but that ended in 2000, when energy and materials took the lead. That trend lasted until 2008, an eight-year run, until the past two years, where the banks and tech have recovered more.
Going forward, Roque sees a multi-year move to the upside, as money managers will no doubt acknowledge this trend and overweight the energy and materials stocks and leave tech and the banks to languish for awhile.
Among Roque's favorites in the group,
, a long-time Cramer favorite, and
. Roque said that EOG has been trading sideways, building a base, but is now close to breaking out to $145 a share. Apache shows a similar pattern and is poised to surge to $150 a share, a 20% gain.
Cramer said he's a believer in both names, with Apache being an Action Alerts PLUS stock. He agreed with Roque's analysis on the sectors, and on these two stocks in particular.
Am I Diversified?
Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included
Kinder Morgan Energy Partners
Cramer said this portfolio was terrific and well played.
The second caller's top holdings included
Cramer said this portfolio was problematic. He suggested trading Exxon and Whiting for a technology stock and a financial.
Cramer was bullish on
Nordic American Tanker
He was bearish on
Great Deal for AT&T
In his "No Huddle Offense" segment, Cramer opined on
proposed merger with T-Mobile USA.
Cramer said the move is not only brilliant because it solves AT&T's dropped call problem, but the company has structured the deal to appease both the Justice Dept and the labor unions by promising both a unionized workforce and to cover 95% of rural America with broadband access.
Cramer said with these two powerful allies on their side, the deal is very likely to be approved, and that means great things for AT&T.
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Caterpillar, Ford, Apache.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.