Click here for an archive of Cramer's "Mad Money" recaps.
The stock of
is headed higher and "probably by more than a little," said Jim Cramer Monday on his "Mad Money" TV show.
Cramer explained there is a shortage of PVC and chlor-alkali, two chemicals produced by Georgia Gulf. The conventional wisdom, though, is that China is building a number of plants to produce PVC and chlor-alkali, and when those plants come online, prices will plummet, he said. But, Cramer believes the conventional wisdom is wrong.
It turns out only half the Chinese plants are going to be completed on time, said Cramer. Additionally, the plants aren't nearly as ambitious as their press releases claim. Thus, China is not going to have the capacity to produce nearly as much of these chemicals as people are expecting, said Cramer.
Cramer said the stock of Georgia Gulf is priced as if a flood of supply from China is a certainty. Therein lies the opportunity, he said, adding that he likes Georgia Gulf for a six-week trade.
A caller asked what Cramer thought of chemical makers
. Cramer said he likes Dow but is not as big a fan of DuPont.
Cramer also mentioned
, saying he liked the stock.
Wait for the Sale on New-Suit News
Cramer's twofer of the day was
( NT) and
( MOT). Cramer had been bearish on both companies. However, both announced new CEOs Monday, and Cramer is now bullish.
The stocks were up big Monday on the news, but Cramer said they will probably sell off Tuesday in knee-jerk fashion. Cramer would buy into the selloff.
Newell Rubbermaid has great brands, said Cramer. But former CEO Joe Galli was a destroyer of value, he said. When a brand is great and sales are down, it's the fault of the CEO, said Cramer. With the prospect of a new CEO, the value of Newell Rubbermaid's brands can be realized.
Nortel's new CEO, Mike Zafirovski, was formerly with
( MOT). Cramer said Zafirovski is the real deal.
as a competitor to Newell Rubbermaid, Cramer said he did not like Tupperware and that Newell Rubbermaid has a lot more upside. Ring the register on Tupperware and buy Newell Rubbermaid, he said.
Frist in the Hearts of Investors
Senator Bill Frist is the subject of a
Securities and Exchange Commission
probe into sales of
stock prior to HCA reporting "one of the worst quarters I have ever seen," said Cramer. But, instead of being the subject of an investigation, Frist ought to be given the Congressional Medal of Investing, said Cramer.
Cramer doesn't always agree with Frist's policies, but as an investor, Cramer said, Frist demonstrated he is brilliant. Frist obviously didn't believe what HCA management or Wall Street were saying about the stock at the time of the sales because both management and Wall Street were nearly uniformly bullish on the stock at the time. If Frist did trade on information given to him by management, he would have been buying, not selling, said Cramer.
There are lessons to be learned from Frist, said Cramer. First, be skeptical when management and/or Wall Street are enthusiastically positive, said Cramer. Second, don't be a pig. Take profits when a stock is up huge. Third, understand the importance of sector trends. Despite HCA management's and Wall Street's bullishness, hospital trends were weakening at the time of Frist's sales, said Cramer.
So, give Frist the benefit of the doubt, said Cramer. Frist was smart to sell, or at worst, lucky, he said.
Darkened Skies for Polaris
CEO Tom Tiller joined Cramer by telephone. Cramer asked Tiller what happened to cause his company's disappointing third-quarter results reported Thursday.
Tiller said higher interest rates and higher energy prices are hurting his company.
Cramer asked about inventory levels.
Tiller said inventory, both at the factory level and the dealer level, are high, particularly following the recent Gulf Coast hurricanes, he said. "We've made some adjustments in our production planning and over the next coming months, we'll see that inventory come back in line," said Tiller.
Cramer summed up the interview saying it's too early to buy Polaris. The inventory's too high, said Cramer, which means prices will have to be cut, and that will negatively affect earnings.
"It's not my fault. It's not his fault. In this case, it
the stars. But, I have to issue a 'don't buy...' This stock could still go lower," said Cramer.
Finally, commenting on news Monday a
Krispy Kreme Doughnuts
subsidiary had filed for Chapter 11 bankruptcy protection, Cramer said, "I am reiterating my sell," even though the stock is down 50% from when he began recommending that viewers sell the stock. "I still believe it's man out window," he said.
. Cramer said it's time to ring the register on the trade, which he recommended last week.
Cramer believes there will be a stampede into
, which reported good earnings Monday evening. Cramer believes the stock will go to $90 by Friday. IBM traded at $84.70 in after-hours trading.
results were very disappointing Monday evening, said Cramer. Stay away from the stock, he said.
Cramer still believes
will go to $350 even though he does not believe the stock will be added to the
Cramer said now that
( CD) has completed the sale of its Trilegiant division, Cendant is now free to split itself up, which is why Cramer owns the stock.
Cramer was bullish on
Cramer was bearish on
DreamWorks Animation SKG
RF Micro Devices
Reliance Steel & Aluminum
Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by
. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.
At the time of publication, Cramer was long Cendant, Motorola and Sears Holdings.
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." Cramer appreciates your feedback and invites you to send him an email by