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"If I had to pick one stock for my Halloween show, then it is
( HANS)," Cramer told viewers of his "Mad Money" TV show Tuesday.
"It's a haunted house stock and probably a lose-your-money stock," he said.
"There's nothing more scary and terrifying than a momentum stock that has lost its momentum, Cramer said. "Momentum stocks don't generally come back from the dead."
Cramer also believes there's nothing proprietary about the beverage maker. He performed a blind taste test on his show, sampling each of Hansen's drinks. Because all of the drinks tasted the same to him, Cramer said, it's time to sell the stock.
"I have no idea which one is which," Cramer said. "It's a totally undifferentiated product."
Hansen might try to make premium drinks at premium prices, but there's nothing premium about its drinks, Cramer said, adding that market players need to get out of Hansen before the company reports its next quarter.
A lot of analysts believe in Hansen, but now even the bulls are worried about it, he said. In addition, Cramer said he doubts the beverage company is going to be saved by its energy drinks, as they may not be safe, and "it's only a matter of time before medical companies start turning on these guys."
Energy drinks are a fad, he went on to say.
The bottom line is that Hansen got its "head chopped" last quarter and has only risen two points since then. It's time to get out of this stock, he said.
When a caller asked about
, Cramer said that because the company is at the top and
recently reached its bottom, it's time to make the switch out of Tootsie Roll and into Hershey.
Mining for Brazilian Best of Breed
"Brazil has high growth, decent inflation and
is nirvana when it comes to the economy," Cramer told viewers.
Therefore, it's time to find the best of breed in Brazil, he said.
Apart from Brazilian supermodel Gisele Bundchen, Cramer said he also likes Brazilian stock
Companhia Vale do Rio Doce
(CVRD), which just bought Canadian mining company
People "really hated" the Inco acquisition because they thought CVRD was paying too much for it, said Cramer, but he believes market players should be "celebrating" this deal.
Plus, CVRD's estimates for next year are "way too low," he said.
Right now there are two mineral companies that portfolio managers own:
"But the odds are about to change," Cramer said. "RIO
CVRD is going to be the new pick and is about to become a core holding."
It's going to be anointed by the Street, and when that happens, CVRD is going to double, "because just like hips, earnings don't lie," he said. "It's time to end the Brazilian discount."
However, people still have time to get into CVRD, Cramer said. There is still a month, or maybe two, before people on the Street anoint the stock, he said.
Housing Shorts Need to Cash Out
Although some people act like it's more sensible to be negative, this is not true, Cramer said. "It's clearly more responsible to be positive on progress."
If people bought
, which "looks like one of the greatest performers of the last 10 years," at its low in 1990, they'd be up a "staggering" 742% right now, he said.
Going back down memory lane, Cramer said he was "heavily short" EastGroup in 1991 when he had his hedge fund.
"It was my biggest position," he said. "Back then, commercial real estate looked like it would never get its legs back."
At that time, "shorting was so easy," Cramer recalled. And he thought there was no way EastGroup could ever work off its inventory.
The short position worked and made Cramer money as the stock fell from $14 to $6, he said. But then, because he didn't see himself as a pig being too greedy and about to get slaughtered, he allowed the short position to run even more and ended up cutting even when he should have made money.
However, Cramer said, it's a good thing he stopped shorting EastGroup when he did.
"It turned out to be one of the best-performing stocks I have ever seen," he said. "And the same story is happening again in the housing business to all the homebuilders."
Everyone who shorts those stocks is in the same position he was in with EastGroup, Cramer said.
"They're wrong," he said. "The facts looked a lot worse for commercial real estate when I was shorting EastGroup" than they do now for homebuilders.
Short sellers on
"are all about to get rolled over if they stay short," Cramer said.
"The homebuilders are ready to come back," he said. "Homebuilders are sitting at their lows because things aren't getting worse."
"It's time to ride the bull and for shorts in the homebuilding sector to declare victory" and not be piggish bears, Cramer said.
Texas Roadhouse Seeks Elbow Room
CEO G.J. Hart to the show and asked him why people are cutting numbers.
"We did have a good quarter, but we did lower our guidance at the end of the second quarter because of $3
per gallon gas prices and interest rates, and the whole market seemed to slow down," Hart responded.
"We announced that we are accelerating our growth," he went on to say. "We're going to open up 25 company stores and five franchise stores in 2006. In 2007, we plan to open 28 to 30 company stores and two to three franchises.
"We have more restaurants in the pipeline than we've ever had for the first quarter," Hart said.
When Cramer asked if the company has been able to raise the prices at its restaurants, Hart said, "We absolutely have lagged behind many of our competitors."
"We like to think we are in a sweet spot, which is the value proposition with just a $14 check average for dinner only, and it works out well for us," Hart said.
Cramer said he is sticking by Texas Roadhouse.
"It has bottomed and is going back up," he said.
To view Cramer's interview with G.J. Hart, please click here.
Cramer was bullish on
Energy Transfer Partners
Enbridge Energy Partners
Cramer was bearish on
Goodyear Tire & Rubber
( LU) and
For more of Cramer's insights during the Lightning Round,
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At the time of publication, Cramer was long Sears Holdings.
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."
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