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NEW YORK (
) -- "Something big happened this week," an upbeat Jim Cramer told the viewers of his "Mad Money" TV show Friday.
President Obama gave not one, but two speeches this week, and the markets didn't go down.
Cramer said this week's market action was a huge turning point. For months, he explained, Obama was seen as anti-business, someone who relentlessly attacked health care, credit cards, banks, utilities and big oil. But this week, the president showed us his more moderate, pro-business side, and the markets loved it, he said.
Cramer said he's got a new Obama playbook, one that's more positive than before. Cramer said he'll be watching the president's next speech on Tuesday. If Obama talks more about tax credits and jobs, the market should rally. On Thursday, Cramer said he'll be watching both the jobless claims and the Philly Fed manufacturing index, two data points which he expects to be higher.
Also on the menu for next week,
reports on Tuesday. While the company has repeatedly disappointed analysts, the stock may be a buy trading at just nine times earnings.
Cramer said he's also waiting for
, a stock which he owns for his charitable trust,
Action Alerts PLUS. to report its earnings. "The long-term growth is still there," he said.
Cramer said he'll be watching
for a read on the global economy, although he still likes rival
, another Action Alerts PLUS name, more.
Finally, Cramer said it's worth watching
Research In Motion
( RIMM) to hear how bad they're faring against
, yet another Action Alerts PLUS stock, and also
, to see how former
CEO Mark Hurd plans on fixing up that company.
"You need to speculate if you're going to stay interested," Cramer told viewers in his "Speculation Friday" segment. He said speculating doesn't have to be dangerous, especially if done correctly. That's why he's recommending
, a small company that manufactures machine vision systems.
Cramer explained that Cognex is all about automation, allowing machines to see and thereby replace human eyeballs with mechanical ones that run at a fraction of the cost. He said whether you're making potato chips or computer chips, Cognex helps make sure your continuous manufacturing process runs as intended.
Cognex has $5 a share in cash and a 1.17% dividend to boot. The shares trade just off their 52-week high, but Cramer said the company is still cheap, trading at just 12.5 times earnings, after you back out its cash, despite its 28% long-term growth rate.
Cramer said when Cognex last reported on Aug 2, the company beat expectations by 16 cents a share, and raised its guidance, and increased gross margins 10.5% to 73.9%. The company is growing its operation with not only new products, but also new markets, as the U.S. only represents 36% of company sales.
Cramer said like
( ZGEN), a speculative stock recommended on April 15 which rose for a 50% gain, Cognex is another little gem that should be part of your portfolio.
Solar Stocks Too Risky
In a special Friday edition of his "Sell Block" segment, Cramer sounded off against the solar stocks, a group which he said is loved by money mangers and home gamers alike, but should have no place in your portfolio.
Cramer said he hates to rain on the solar industry's parade, but the group is far too risky and too dangerous, especially given its new found euphoria. He said in reality, solar is the most heavily subsidized industry on the planet, and is totally dependent on governments around the world for its survival. As subsidies get cut, he said, the earnings come down big.
In Germany, for example, a country where 60% of all solar installations are built, the government is debating three different subsidy cuts for solar. In France, subsidies have already been cut by 12%, and there's talk of more cuts being needed. And the list goes on, said Cramer, as Spain and other countries realize that solar is a luxury, not a necessity, in a tough economy.
Making matters worse, Cramer said the solar business is rapidly becoming commoditized, meaning all of the vendors must compete on price alone. And with so many players still adding capacity for expected demand, pricing can only continue to fall.
Cramer said Wall Street and Main Street are simply too optimistic on the solar stocks, and he's a seller of them all, including
Yingli Green Energy
Outrage of the Day
Cramer said he's sickened and disgusted by the news that
just received federal approval to sell U.S. liquified natural gas to the rest of the world. He said in three year's time, the U.S. will become the largest exporter of clean energy on Earth, all while it's dirty, coal based utility system pollutes on.
"Why on Earth would we export a clean fuel," asked Cramer? He said it's hard to fathom that despite oil disasters in the Gulf and coal mining accidents every year, the Environmental Protection Agency is going after natural gas, and its use of hydraulic fracturing.
"Our government doesn't favor natural gas, our car companies don't favor it and our utilities don't favor it," said Cramer, and that's just wrong. He said we could free ourselves from OPEC oil, we could become energy independent, yet Congress can't pass simple incentives to help truckers begin using the fuel.
"Shame on our leaders for letting this happen," he said.
Cramer reiterated his buy on
, maker of watches and accessories. "There's still more upside," he said.
Cramer was bullish on
He was bearish on
Yanzhou Coal Mining
--Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer was long Cisco, UPS, Apple.
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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