Some companies wouldbenefit from the departure of their CEO, Jim Cramer said on his "Mad Money" TV show Wednesday.
The latestaddition to Cramer's "Wall of Shame" is Terry Semel,CEO of
, which Cramer has in his charitable trust,
Action Alerts PLUS.
Cramer believes that Semel proved himself to be a "master ofthe art of overpromise and underdeliver" when hiscompany turned in earnings Tuesday that fell short ofWall Street expectations.
"You can't raise the bar really high and thenimplode," Cramer says. "And you certainly shouldn'tbe allowed to do it repeatedly."
Sam Palmisano of
andCharles Prince of
also make Cramer's list of toxic CEOs. ButCramer believes that Semel deserves the top spot.
On a more positive note, Cramer says
is the best risk/rewardstock he's talked about on the show in a long time.
reported agood quarter, surprising critics who didn't like thecompany's acquisition of California-based savings andloan
. The bears believed the deal gave thebank too much exposure to the mortgage meltdown.
Cramer believes that Downey can be "the next Golden West" and that the stock price could double if it becomes atakeover target.
Additionally, the stock could also go up if the
raises interest rates or if shorts get busted forbetting against it. Right now, 40% of Downey's floatis held by shorts who believe that the company will be hurtby mortgage defaults.
On the subject of mortgages, Cramer says "what wasnegative four weeks ago is now positive for banks." He reiterated his buy calls for
( BSC) and
, which he owns for his charitable trust,
Action Alerts PLUS.
, Cramersays it's "the kind of stock that could double on any good news."
'Green Day' III
Cramer continued his weeklong segment about the April 2 Supreme Court decision to allow the Environmental Protection Agency to cap greenhouse emissions, a judgment likely to benefitcompanies that are environmentally friendly.
His latest "Green Day" pick is auto-supplier
, because the companyis "all about controlling emissions and enhancing fueleconomy, exactly what we are after in a post-Green Dayworld."
BorgWarner's backlog of orders is growing because ofdemand for products such as its fuel-efficientturbochargers, said Cramer.
Even though the company can help save the planet, someinvestors still might be worried about investing in anauto-parts company, he said.
But Cramer believes that BorgWarner won't behurt by the struggling U.S. auto industry because itdoes most of its business with foreign automakers that are in better financial shape.
A caller remarking on all the hoopla surrounding "green" stocks, wanted to know if traditional energy sectorswere peaking.
Cramer said that oil companies are "still ina multiyear expansion," but that he prefers oil service stocks such as
, both of which he owns for the charitable trust.
Am I Diversified?
During Cramer's "Am I Diversified?" segment, thefirst caller owned the following five stocks:
Cramer recommended that the caller unload Andrew and RF Microbecause "they are both telecommunications and they areboth bad stocks." Although, Annaly and OptionsXpressare both financials, Cramer said they could bothstay because one was levered to mortgages and theother to brokerages.
The next viewer called with these stocks:
AluminumCorp. of China
Cramer said he believed that the portfolio had "totaldiversification." Although he is not a fan ofaluminum companies or Chinese companies, Cramer likes thatACH pays a big dividend.
The last caller wanted to know if she wasdiversified owning
Bed Bath and Beyond
Cramer pointed out that BBBY and Lowe'sare both retailers with exposure to housing. Herecommended getting rid of Bed Bath and Beyond andpicking up a financial, such as
Bank of America
During his "Mad Mail" segment, Cramer told aviewer he was not put off by
plan to pay a special cash dividend toexisting stockholders before making its initial publicoffering. He says many companies such as
have been doing thiswithout getting hurt.
Another viewer wanted to know if
( PCU) would "drop like a rock"in late April and early May, as it has done in thepast. Cramer blamed the pattern on China, but said hewould continue to buy PCU.
Cramer responded to another viewer's email byagreeing
would benefit from the "Green Day" Supreme Court decision.
During the "Sudden Death" round, Cramer wasbullish on
He was bearish on
Cramer was bullish on
Cramer was bearish on
( NTO) and
For more of Cramer's insights during the Lightning Round, click here
Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by
At the time of publication, Cramer was long Yahoo!, Transocean, Halliburton and Goldman Sachs.
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