Click here for an archive of Cramer's "Mad Money" Recaps.
Just back from vacation, Jim Cramer stuck his neck out on Monday night. He told his "Mad Money" viewers that
Dick's Sporting Goods
is his pick of the week.
"I am sticking my neck out right now," Cramer said. He believes that Dick's will report a strong quarter on Tuesday. It's "the best story you have never heard of," Cramer said.
This is a story of a regional player moving to the national stage, he said. Consider this: At the end of 2002, Dick's had 141 stores in 25 states. By the end of 2004, the company had 234 stores in 33 states. "We haven't even got near saturation yet," Cramer said.
Companies such as
, which has more than 3,000 stores, and
, which has more than 3,900, have saturated the market.
has more than 1,800 stores. But Dick's, with its 234 stores, is nowhere near saturation. Indeed, if Dick's opened just 1,000 stores, the company would have 400% potential store growth.
Another nice thing about Dick's, said Cramer, is that what's not necessarily good for
( RBK) and
-- like falling margins -- doesn't matter to Dick's. Dick's doesn't care if consumers buy Nike or Reebok. What's bad for those companies is bad for those companies, Cramer said. "What's good for Dick's," meanwhile, is "good for Dick's," Cramer concluded.
Even as Cramer called Dick's his stock of the week, he urged investors to do their homework before running out and buying the stock. Still, if you have to buy the stock in the after hours, use a limit order, within reason, Cramer said. Do not buy the stock using a market order, Cramer cautioned.
Cramer was bullish on
American Science & Engineering
XM Satellite Radio
"among the cheapest even after this monster run," Cramer said;
"I think Skyworks will be a double-digit stock by year end," Cramer said;
( GKIS), and
Smith & Wesson
Cramer was bearish on:
Clear Channel Communications
North Fork Bancorp
"this is a bizarre conglomerate ... and difficult to understand," Cramer said;
( TLCV), and
Cramer also told viewers not to lose faith in tech: "
screwed up on pricing. Plain and simple.
screwed up on conservative guidance. And for those reasons you are selling tech? Shame on you," Cramer said.
"Because these stocks are so important in the minds of so many investors -- rightly or wrongly -- I feel compelled to do more than just dismiss them as aberrant," he said. "In fact, they fit in perfectly well with my pro-tech thesis. Let me explain."
"First, let's deal with the fundamentals of these two ne'er-do-wells. Dell blew out the PC unit sales: up 25% overall and an astounding 47% in laptops. They priced poorly, and they paid the price for doing it. But that doesn't mean you should sell
"In fact, it means you should buy them, because they are leveraged to the unit blowouts, not to the margins of Dell," Cramer said. "Often they are inverse: The more units Dell sells, the more Microsoft and Intel make, regardless of how much Dell makes," Cramer said.
"The most pathetic thing to do off of Cisco and Dell is to sell in what has always been the seasonably strongest part of the year. Right now is when the build starts, for PCs, for cell phones, for all of those consumer products that I want to leverage to. We could see an even bigger build in cell phones than usual because of the 3G mix change that starts in the fourth quarter," Cramer said.
In sum, Cramer said that any declines in tech should be seen as a gift.
Highs and Lowe's
reported better-than-expected second-quarter earnings Monday morning. But does good news for Lowe's mean equally good news for its rivals? Cramer asked.
Cramer said what's good for Lowe's may, in fact, not be good for its competitors. Instead, Cramer said that if you are looking for pin action after Lowe's terrific quarter, you would be better served by looking on Lowe's shelves -- going aisle by aisle.
Cramer said he would be looking at
Black & Decker
( FO), Whirlpool,
And if you think Cramer is crazy for recommending cyclicals, he said that he's not worried about it. Oil prices -- along with gasoline prices -- are going up, but the Europeans have been dealing with high gas prices for years, suggesting that American companies should be able to deal with rising prices as well.
"Do not write off the obvious," Cramer said. "It can make you money."
Finally, Cramer spoke with the CEO of
via telephone. Cramer asked Richard Schnieders why rising fuel prices did not hurt the company's fourth-quarter results, which the company reported on Monday morning. The CEO applauded his distributors and said that consumers are getting used to higher oil prices. Consumers are still eating out, the CEO said.
The food service distributor also said that its huge distribution centers allow the company to better service its customers, while also minimizing the impact that rising oil might otherwise have. Cramer, after listening to the company's bullish presentation, said that he would do a "'mon back" on the stock.
At the time of publication, Cramer was long Intel, Microsoft and Lucent.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
ActionAlertsPLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict."