This article was originally published Feb. 19.
Click here for an archive of Jim Cramer's Mad Money recaps.
Jim Cramer played a game he called "Survivor: Wall Street" with the viewers of his "Mad Money" TV show Thursday.
The idea behind the game is to try to determine which sectors are going to survive this market, and which ones are likely to get voted out of existence.
Cramer said the markets are obviously taking down the financial sector, with virtually no bank trading like it's going to survive. Likewise with the mortgage insurers and regular insurers.
In fact, the only stocks immune from the slaughter, said Cramer, are
, and perhaps
. He owns the first two for his
Action Alerts PLUS portfolio
Media stocks are another sector getting hit hard, from the giants like
to the newspapers and even the cable companies, said Cramer.
Then there are the autos and the auto suppliers, said Cramer, along with the home builders and practically everything that goes into a home are all headed lower. Cramer said to also watch out for the real estate investment trusts, and anything with exposure to commercial or retail real estate.
In retail, Cramer said there are a few bright spots. He still likes
, which he also owns for his
Action Alerts PLUS portfolio,
if it comes down. Out in Las Vegas, Cramer said he only sees one winner at the casinos, and that's
Cramer said he's also a fan of certain technology names, as well as pharmaceuticals, bitotech, consumer products, and healthcare. He also said he'd be a buyer of
In this weekly segment, Cramer went "Off The Charts" to examine the stock of
, a stock which he owns for his charitable trust,
Action Alerts PLUS.
According to the chartists, Qualcomm is a sell. Despite a recent rally in tech stocks, Qualcomm has been unable to pass its January highs. This indicates the buyer just aren't interested, said Cramer. With no relative strength, the stock broke its uptrend line on high volume, also signaling to the technicians that it's time to sell.
But Cramer said he's a believer in the fundamentals at Qualcomm. With a 20% long-term growth rate and a great product cycle, Cramer said Qualcomm should be on fire. The company has $14 billion in cash and is taking share while it faces weaker competition.
Cramer also liked that China is spending $40 billion to upgrade its telco, and Qualcomm is well positioned to take advantage. With 90% margins, and the growth of 3G cell phones expected to rise from 40% penetration to 70%, Qualcomm is a winner, according to Cramer.
"I like Qualcomm, I'm a buyer."
Wal-Mart Pin Action
Investors looking for a silver lining in Wal-Mart's most recent earnings call should take a look at the pin action on
( RAH) and
, said Cramer.
On their conference call, Wal-Mart announced renewed emphasis on its private label brands, a trend which Cramer said plays right into the hands of Ralcorp and Treehouse. Since his last recommendation of the pair on Dec. 16, Ralcorp is up 12.5%, while Treehouse is up 15.8%.
Cramer said the trend makes perfect sense, as the recession gets worse, more and more people will turn to the lower cost, private label items. Private label, he said, is already taking shelf space at many grocery chains, and is poised to do the same at Wal-Mart.
Cramer said both Ralcorp and Treehouse still have lots to love. Both have cash for acquisitions, the possibility of estimate bumps from the analysts, and commodity cost hedges expiring soon that will allow the companies to benefit even more from falling raw costs.
Outrage of the Day
Cramer again took aim at Treasury Secretary Tim Geithner, who Cramer said is losing credibility by the day for his decision as New York Fed Chairman to let Lehman Brothers fail.
Cramer said the collapse of Lehman triggered the end of financials as we knew them, and ever since that day, the financials have been sliding farther downward. Geithner has always claimed that he didn't have the authority to save Lehman, but Cramer said his research shows otherwise.
According to Cramer, the Primary Dealer Credit Facility created by Geithner after the Bear Sterns collapse gave him the authority. And, he said, the complacency surrounding Lehman in the days leading up to the collapse was directly caused by people thinking the PDCF would keep them from going under no matter what.
Cramer said Geithner created the lifeline for Lehman, then took it away. The result, he said, was thousands of innocent people losing money. Yet the very next day, Geithner stepped in to save
in a far bigger and far more egregious bailout.
Cramer was bullish on
Clean Energy Fuels
American Italian Pasta
He was bearish on
Check out the latest edition of
"Cramer's Take onTop-Searched Stocks" on Stockpickr.
Want more Cramer? Check out Jim's rules and commandments for investing by
Read more of Cramer's Mad Money Lightning Round insights
For "Mad Money" performance statistics and other links, check out Mad Money stats
At the time of publication, Cramer was long Goldman Sachs, Wal-Mart, Morgan Stanley, Qualcomm.
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.