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The only way people can try to make money in this or any market is to know how money managers think, Jim Cramer told viewers of his "Mad Money" TV show Thursday.
They're the ones who "move stocks and are the market," he said.
"When it comes to managing money, there are lots of rules, but only one commandment: Obey the business cycle," Cramer said.
Right now, the cycle is "very bad," he said. For the next three months, Cramer believes, people need to go the supermarkets and drug stores to find stocks.
, which he owns for his charitable trust
Action Alerts PLUS, will both go to $55, Cramer predicted. Kellogg closed at $49.80, and Anheuser-Busch closed at $49.30 Thursday.
In addition, he believes that both
Procter & Gamble
should go to $70, and
should hit $50.
Pepsi and Procter & Gamble closed at $64.14 and $61.05, respectively; and Merck closed at $40.06 Thursday.
All of these are "obvious trades," but there are also some lesser-known and exploited drug and supermarket stocks that could go high, Cramer said.
"A lot of this money has been realized," he said. "You want to find hidden stocks in these areas."
Cramer took his viewers down the aisles of his "Mad Money" supermarket, telling them about
( DA) and
, the only two unexploited supermarket stocks he likes.
Sure, there are other supermarket stocks, Cramer said, but he doesn't like betting on them.
( WWY) bubble has popped, and
is a little too speculative, he said, adding that "at this point in the cycle, you don't want to be speculating," Cramer said.
Instead, Cramer said he likes companies such as Danone that have a huge international presence, and Tootsie Roll has been around too long for anyone to call it a speculative name.
"For a long time, Tootsie Roll was stagnant, but we are in the cusp of their turnaround right now," Cramer said. "It has been a torpid do-nothing company for the last few years, but it's about to become a true secular growth story."
The bottom line: If you feel that big-name supermarket stocks have been too exploited, then get into these two less-exploited ones, he said.
The Drug Lane
Next, Cramer strolled down the drugstore lane and picked up three fresh unexploited stocks in this space:
( MTXX) and
Although people may not be familiar with these names, Cramer said that Chattem makes well-known products such as Gold Bond and Icy Hot. The company sells at 0.6 times next year's growth and is thus, "one cheap stock."
Matrixx, which makes the Zicam Cold Remedy, is a stock that sells at less than half its growth rate and is also "dirt cheap," Cramer said. Although the company does have some lawsuits, he believes that "the power of cycle should drive it higher."
Perrigo is a generic drugmaker, and although Cramer said he doesn't like generic labels, he believes that it would be a good buy if
Chairman Ben Bernanke crash lands the economy.
If people want something from the drugstore that's a little less exploited and off the radar, it's these three, he said.
On Cramer's new "Sell Block" segment of the show, he tried to express the thinking behind his views on whether a stock should be sold, held or bought.
He has always told his viewers never to trade an investment, but he recently thought
( GYMB) and
The Children's Place
were good investments, when they actually turned out to be good trades.
Shortly after Cramer called them two investments, "both stocks took off and had fabulous conference calls," he said.
"If you sold them, you would have made some mad money," Cramer said. "It was a great trade, but I thought it was an investment."
Maybe these two stocks can still have a good back-to-school season, but now, Cramer said, he's not sure.
Another one of his picks,
, is up big, and this time Cramer doesn't want to make the same mistake. He advised people to ring the register on it.
Another inner conflict Cramer expressed to his viewers dealt with
, a stock he owns for his charitable trust
Action Alerts PLUS.
Last week, Cramer told people that Bristol-Myers would spike if the company's CEO Peter Dolan quit. But now there's talk about whether the company might have made a potentially illegal deal with Apotex, a Canadian company that wants to sell a generic form of Bristol-Myer's drug Plavix.
The Justice Department is investigating the deal, but something doesn't smell right, Cramer said, adding that this stock is only worth owning if Dolan gets fired.
On Cramer's "Mad Mail" segment, a viewer asked if
is "ready to roll" because Cramer recently said he liked
Because the part of Cisco's business that is just OK is its fiber-optics unit, Cramer said he isn't getting behind JDSU.
Cramer was bullish on
Cramer was bearish on
In the "Sudden Death" round, Cramer was bullish on
( KFT) and
He was bearish on
For more of Cramer's insights during the most recent Lightning Round, click here.
Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by
At the time of publication, Cramer was long Bristol-Meyers Squibb, Anheuser-Busch and Yahoo!.
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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