This article originally appeared Feb. 11
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Wall Street may have been in the hands of Washington today, but Jim Cramer told the viewers of his "Mad Money" TV show that it was it was a "nothing day" for him.
Cramer said the market is clearly torn between depression and elation. He said while the Senate giveth, with its stimulus plan, the House taketh away, grilling bank executives about the financial crisis.
Cramer said the stock market may not be for everyone in times like these, with recession, bad earnings and financial stresses all hitting the markets at the same time. But, he said, "not everything is bad."
For example, the IPO of
, as he predicted.
Returning to principles he's mentioned countless times in the past, Cramer said the way to deal with tough markets is to first, stay diversified.
He said every portfolio needs some stocks, bonds, cash and even gold. He recommended
, a stock which he owns for his charitable trust,
Action Alerts PLUS, as one great way to play gold.
Cramer also reminded viewers they need to look for big dividend-paying stocks. Likewise, he said, investors need to speculate, to keep things interesting. He said both high quality biotech names and medical device makers are two great areas for that.
Cramer: Health Care Is Red Hot
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A Matter of Timing
In the "Executive Decision" segment, Cramer talked with medical device maker
St. Jude Medical
chairman and CEO Daniel Starks about his company's great earnings despite the weakening economy.
Starks said simply that St. Jude is in the right markets with the right products at the right time. He explained that the company is resistant to global economic trends and will be creating 2000 jobs in 2009.
When asked to highlight the company's three most exciting areas, Starks mentioned implantable defibrillators, new technologies to treat atrial fibrillation and neural technologies to treat drug resistant depression.
Starks also noted the company's introduction of new products in Europe to treat Parkinson's Syndrome as another promising area. He reaffirmed that demand for the company's chronic back pain devices outstripped supply and sales would've been higher if only they could've made more.
Cramer said investors who want to sleep at night with a stable growth company need to buy St. Jude Medical.
In a second interview, Cramer talked with
chairman and CEO Eric Wiseman, to discuss the state of the retail sector. VF Corp is a stock which he owns for his charitable trust,
Action Alerts PLUS.
Wiseman acknowledged a difficult retail environment, but noted that VF Corp posted positive same-store comparison results. He said while foot traffic is down at most stores, the company continues to see strong sales due to its strong brands.
Wiseman said the company continues to pursue many different sale models for its products and has been able to hold prices, building its brands for the long term.
When ask about international growth, Wiseman said VF Corp's business abroad is doing well, accounting for 31% of sales last year and growing at 12%. He said the company remains focused in China, where it's a relative newcomer and is looking for 25% growth this year.
Finally, when asked about acquiring other great brands at distressed prices, Wiseman said "we are looking."
Cramer called VF Corp, with its accidentally high dividend yield of 4.5%, a great opportunity.
Am I Diversified?
Cramer talked with callers and evaluated their portfolios to see they have what it takes. The first caller's portfolio included
Deere & Co
Cramer said the caller has it right, with perfect diversification.
The second caller's top holdings included
Research In Motion
Cramer said this portfolio was also perfectly diversified.
Cramer was bullish on
Nordic American Tanker
Cramer was bearish on
International Flavors and Fragrances
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At the time of publication, Cramer was long Altria, General Electric, Bristol-Myers Squibb, Wal-Mart, Goldman Sachs, Morgan Stanley, VF Corp, Freeport McMoRan.
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