Cramer's 'Mad Money' Recap: Sprint Is for Speculation (Final)

Cramer says Sprint is the classic story of a stock getting less bad.
Author:
Publish date:

Search Jim Cramer's Mad Money trading recommendations using ourexclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game videoexclusively on TheStreet.com.

NEW YORK (

TheStreet

) -- "Forget

Goldman

(GS) - Get Report

, buy stocks that can make you some money," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday. He said that while the negative headlines are all backward-looking, investors need to look to the next great speculative stock.

What makes a great speculative stock? Cramer suggested stocks like

Huntington Bancshares

(HBAN) - Get Report

, which is up 59% since he recommended it on June 12. Cramer said he's still also a fan of

Citigroup

(C) - Get Report

and reiterated his $12 price target in 2012.

Cramer also gave the nod to

Ford

(F) - Get Report

and its CEO Alan Mulally. He said that if

GM

and

Chrysler

are turning positive, and

Toyota

(TM) - Get Report

is imploding, then Ford must be on fire, which will lead to upgraded ratings on the company's debt, further helping its recovery.

Cramer said other great speculative stocks include

Sallie Mae

(SLM) - Get Report

, Cramer's speculative stock of the year for 2009, which rose from $6.61 a share to $13.12. Cramer noted that

Wells Fargo

(WFC) - Get Report

said student loans are hot, but no one seemed to notice.

But of all the great speculative names, Cramer gave top honors to

Sprint Nextel

(S) - Get Report

. Cramer said Sprint is the classic story of a stock getting less bad. He said the company will likely report that its market share is stabilizing and its losses are stemming, but what's really important is that the company is increasing cash flow, which is in turn helping its balance sheet. Cramer said that with such bearish sentiment on Wall Street, it will take only a few analyst upgrades to start Sprint moving, just as Ford and Sallie Mae and Huntington did in years past.

Executive Decision

In the "Executive Decision" segment, Cramer spoke with Malcom Unsworth, president and CEO of

Itron

(ITRI) - Get Report

, a leader in the move toward smart energy grids and smart meter technology.

Unsworth said that while the U.S. is ahead of the rest of the world in deploying smart meter technology, it lacks one key component, and that's a cohesive energy policy. He said that in Europe, for example, there are now mandates for smart metering by 2020, something the U.S. sorely lacks.

Unsworth also explained that unlike the first generation of smart technologies, which provided utilities a return in five years, today's newer technology allows for efficiency improvements and demand responsive, which pays for itself even quicker.

When asked about government stimulus money, Unsworth said that the stimulus money for not only electricity meters but also smart water and gas meters is beginning to flow and is helping to speed adoption of the new technology.

Cramer said that Itron has multiple years of great earnings ahead of it. He said that despite the stock trading at its 52-week high, it's still heading higher.

In a second "green" interview, Cramer sat down with Jim Bernhard, chairman, president and CEO of

Shaw Group

(SHAW)

, one of the leaders in building nuclear power plants both here in the U.S. and abroad.

Bernhard said that when it comes to nuclear power, the U.S. is only a small player, and Shaw Group has a business that travels and is competitive worldwide. He said the company is doing 40% of its business in China and is striking deals for new plants in Saudi Arabia, the U.K. and Brazil, among others.

Bernhard also noted that Shaw does more than just build new plants, it also upgrades older facilities to newer technology. He likened the business to upgrading an engine to get more horsepower; only Shaw upgrades power plants to get more megawatts.

When asked about the aging coal plants in the U.S., Bernhard said that no matter what utilities decide to do with them, whether rebuild, covert to natural gas or clean up their act, Shaw Group is there and is an integral part of the retrofit.

Bernhard also noted the Shaw Group is hiring and will add 2,500 new jobs this year. He said the company has more than 1,000 jobs on its Web site, and that's a lot more than wind or solar energy are creating.

Cramer continued his support for Shaw Group.

Am I Diversifed?

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included

Apple

(AAPL) - Get Report

,

Verizon

(VZ) - Get Report

,

BP

(BP) - Get Report

,

Camden Property Trust

(CPT) - Get Report

and

Waste Management

(WM) - Get Report

.

Cramer called this portfolio "perfection."

The second caller's top holdings included

IBM

(IBM) - Get Report

,

MetLife

(MET) - Get Report

,

Coca-Cola

(KO) - Get Report

,

Time Warner

(TWX)

and

Kohl's

(KSS) - Get Report

.

Cramer said this portfolio was also total diversification.

The third caller had

Bank of America

(BAC) - Get Report

,

Ford

(F) - Get Report

,

Cemig

(CIG) - Get Report

,

CloudPeak Energy

(CLD) - Get Report

and

Electronic Arts

(ERTS)

as their top five stocks.

Cramer said this portfolio was also well played.

Lightning Round

In the Lightning Round, Cramer was bullish on

Netflix

(NFLX) - Get Report

,

Anadarko Petroleum

(APC) - Get Report

,

EMC

(EMC)

and

Human Genome Sciences

(HGSI)

.

Cramer was bearish on

Quest Diagnostics

(DGX) - Get Report

and

Pioneer Natural Resources

(PXD) - Get Report

.

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC

.

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by

clicking here.

For more of Cramer's insights during the Lightning Round, clickhere

.

At the time of publication, Cramer's charitable trust was long Bank of America, BP, EMC and Goldman Sachs.

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."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.