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"On 'Mad Money' we reserve the right to profit from anything, no matter how heinous," Jim Cramer told viewers of his TV show Thursday.
Subprime lending might be a problem, but it is not necessarily bad for the economy, he said. Although it's going to be hard for the working class to take out a loan "until the
bails them out" of this crisis, Cramer said he sees this as an opportunity to make some money.
Two "great" ways to play the working-class lending crisis are with "pawnbrokers and loan sharks," he said. Folks who can't get loans will likely have to resort to these shops to get cash.
Of the pawn shops, Cramer said he likes
Cash America International
. The other, "more morally dubious" loan shark stock he likes is
Advance America, Cash Advance Centers
Starting with AEA, Cramer said the company is growing and is "cheap, cheap, cheap." The less-risky alternative is Cash America, "the largest player in pawn lending" and a great way to play the subprime lending problem.
"Where others see catastrophe, I see opportunity," Cramer said.
The best way to play the subprime crisis is not to go short
or to bet against
-- it's to buy AEA or Cash America, he said.
Rooting for Chemed
Cramer continued his search through the rubble of last week's selloff for stocks that don't deserve to be down and should be seen as buy opportunities. On
Tuesday's show he offered
Wednesday it was
, and on Thursday Cramer suggested
Even though Chemed has "recovered significantly" from the downturn, it is still a buy, according to Cramer, for one main reason: It reported great earnings and guidance right before the market downturn.
Both of Chemed's divisions -- its Vitas hospice operation and its Roto-Rooter plumbing business -- are good, but "the real story is about the earnings," he said. "We like it because it blew away its numbers when it reported Feb. 21, a week before the selloff."
After reporting its quarter, Chemed jumped almost $7 in a day, and last week's selloff took it down $2, Cramer said. Although that's not a significant pullback, he said he believes the stock is "immunized against recent downside," and he would buy it "before it gets its mojo back."
In the show's "Sell Block" segment, Cramer looked back at some recent initial public offerings. He told viewers to sell
and instead pick up
, a stock he owns for his
Action Alerts PLUS charitable trust and believes is "cheaper and a better company."
Cramer also suggested people sell
Melco PBL Entertainment
"on any strength."
"Melco has been an unmitigated disaster ... and I apologize for getting this one wrong," he said. And IPG Photonics wasn't a great call either. "I'd cut my losses and take profits."
Although Cramer said he has no excuse for his Melco recommendation, he said he "extrapolated" it from
Las Vegas Sands
, thinking that Melco would follow in their footsteps.
However, it is a good thing he told viewers to stay away from
because the stock hasn't been doing well, Cramer pointed out.
Right now he said he would be buying
Switch & Data Facilities
, which he believes should have "positive news flow in the near term" and which he believes is "cheap" compared with its competitors.
Cramer said he would also buy
, "a great defense play," and
, but only on weakness.
AT&T for the Long Distance
CFO Rick Lindner to the show and asked him how the company is able to build out its network, put more money into AT&T Wireless and increase its dividend, all at the same time.
"First of all, we've done three large acquisitions in the past three years," which have given the company "tremendous opportunities for merger synergies," Lindner responded. "And those synergies are driving double-digit growth."
On top of that, AT&T is not just a cost reduction story, he went on to say. The company also has "some exciting new products coming" and great growth in wireless and data services.
Cramer said that although he does not often recommend long-term stocks, he thinks people "can buy AT&T and put it away." He advised people to buy it because it has a "great" yield and is a "well-run" company.
To view Cramer's interview with Rick Lindner, please click here.
During the show's "Sudden Death" round, Cramer was bullish on
; he owns the last two for his charitable trust.
He was bearish on
Cramer was bullish on
Illinois Tool Works
Cramer was bearish on
RF Micro Devices
Research In Motion
For more of Cramer's insights during the most recent Lightning Round, click here
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At the time of publication, Cramer was long Goldman Sachs, Halliburton, Transocean and Union Pacific.
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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