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Is the bull really dead after just one down day in the markets?
The answer is "no" despite what the naysayers may say, Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
"Haven't you people ever heard of a correction?" he asked. Today's action was a classic market pullback, a big advance followed by a sharp decline. A classic correction is usually in the 5% to 10% range, so why is everyone ready to panic already, he said.
Cramer said this is one of the greatest, nonstop market performances he's ever seen. People can't expect stocks to rally over 30% from the bottom without taking a breather. That's what stocks do, he said.
Now is not the time to sell the banks, said Cramer. In fact, he'd be a buyer of the banks, as conditions are finally right for them to begin making serious profits. "Nationalizion is off the table," he said.
Cramer said he'd be a buyer in the secondary offerings of banks like
, a stock which Cramer owns for his charitable trust,
Action Alerts PLUS.
Cramer said he'd also be a buyer of banks that don't need capital such as
, another stock in his charitable trust.
"More investors want into this market than want out of it," said Cramer. And that's why you should want in too.
In this segment, Cramer sent
back to prison, after releasing it just a few weeks ago on March 30.
International Bancshares has been a battleground between the longs and the shorts, he said. He interviewed CEO Dennis Nixon in March to get a better read on the company. Cramer's conclusion? With almost 20% of the company's shares sold short, the market had just gotten too negative on International Bancshares and he gave it his blessing and said "buy, buy, buy."
"Sometimes a stock can just too too hated," said Cramer. The market agreed, sending shares of International Bancshares up 86% since his buy recommendation.
Cramer said now is the time to take that profit and run. He recommended rolling the gains into other great banks, like
( SBIB). He also recommended considering
, which he recently released from the Sell Block.
"Look at the big picture," said Cramer, "we won." He said it's time to ring the register.
Worst Is Over
Cramer spoke with Don Wood, president and CEO of
Federal Realty Investment Trust
, to get a better understanding of the outlook for retail and commercial real estate.
Wood said that the retail sector is indeed softening, but he feels the stock prices of these companies already reflect that softening. He also said that some of his tenants have gone bankrupt, which has hurt the bottom line, but overall Federal mitigates its risk by spreading it out over many properties, geographies and sectors.
Turning to Real Estate Investment Trusts (REITs), Wood said that Federal has paid a cash dividend for 41 consecutive years, and plans to continue to do so. He said in some case, such as where liquidity is an issue, it may make sense for a REIT to pay out in stock, but in the case of Federal, they're sticking to a cash dividend.
When asked about the economy and the retail sector, Wood said he's seeing the market flattening out, and feels the worst is now over.
Nice Entry Point
In the fourth part of his "Tech Spec" series, Cramer recommended
, a supplier of power management components for gadgets and electronic devices.
Cramer said things are clearly picking up an On Semiconductor, but since the company had the unfortunately luck of reporting on such a down day, no one noticed, making tomorrow the perfect entry point for the stock.
According to the company, things are indeed looking up. On Semiconductor beat earnings expectations handedly and raised their guidance. The company also sees increased visibility, with order volume increasing and even rush orders picking up.
Cramer said he also likes that On Semiconductor is paying down debt and improving its balance sheet. The company is also slimming down its inventory. This one is worth speculating on, said Cramer.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Check out the latest edition of
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At the time of publication, Cramer was long Wells Fargo, Gilead Sciences.
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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