How the WTC Tragedy Will Affect the Action Alert Portfolio

Cramer predicts what will happen to these stocks when the market finally opens.
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I wish I didn't have to write about pedestrianthings like money. But we own stocks, and stocks are going to trade tomorrow, so I can't pretend that I don't have a portfolio and I can't pretendthat it doesn't matter. I will review each position in my Action Alert portfolio in light of the previousweek's terrible events, and suggest what could happen when tradingresumes.

The Market

History Shows Panic Selling or Buying Is Not a Good Strategy

Gary B. Smith: Looking to the Past for Guidance

The Argument Against Gloom

Facing a Market Transformed by Terror

Cramer: Euro Markets Don't Tell the Whole Story

The Economy

Tony Dwyer: Triumph Over Tragedy Is the American Way

Tragedy -- and Retaliation -- to Strongly Affect Energy Sector

Sector Watch

Investors Will Be Seeking Safety, but Not All Will Desert Biotech

Software Firms Likely Will Forget the Third Quarter, Look to Fourth

Consumer Uncertainty Weighs on Wireless Sector After a Week of Warnings

Defense Stocks Aren't the Sure Bets You Might Expect

Alcoa

(AA) - Get Report

: Cash flow uninterrupted by event. No material impact other thanadditional GDP slowdown. Alcoa does have sizable business related to aircraftproduction that could theoretically be hurt by damaged airline financials.

Amerisource Bergen

(ABC) - Get Report

: No impact on drug wholesaling. This one could benefit from the flight to safety.

AOL Time Warner

(AOL)

: Probably lost millions in ad revenue this week. That it maintained reliability throughout crisis might be theoretically beneficial, butnumbers must come down.

Best Buy

(BBY) - Get Report

: Retail feels tremendous negative drag after events like this.Not a good short-term stock.

Caterpillar

(CAT) - Get Report

: GDP-slowdown fears will weigh on this stock. Rebuildingissue will not be a short-term spur.

Cisco

(CSCO) - Get Report

: It announced

a buyback, but since this stock is huge, we don't know how muchimpact that buyback will have. Possible rebuild spur, and re-analysis of back-up systems, a la Y2K,could help orders, but don't think it will be long-lasting. Still, a better stockthan it was last week.

Citigroup

(C) - Get Report

: No damage from attack. But this is a consumer-confidence play tosome degree so it is somewhat worrisome. Needs rate cut.

Constellation Energy

(CEG)

: Unaffected by last week's events. Good value play.

EMC

(EMC)

: Storage play that could be benefit from the realization that back-upsystems aren't good enough. Will benefit short-term.

Fluor

(FLR) - Get Report

: Long-term construction projects are unaffected by last week's events.

Ford

(F) - Get Report

: Consumer-confidence sag hurts comeback chances. Expectimminent dividend cut.

General Electric

(GE) - Get Report

: Big blue-chips might be seen as safer harbor thanbefore. This company needs to step up its buyback. Numbers now more suspect,though.

Guidant

(GDT)

: Will benefit from a flight to safety.

Halliburton

(HAL) - Get Report

: Energy stocks might catch a bid because of potential turmoil in the Mideast. Could conceivably benefit, short-term.

IBM

(IBM) - Get Report

: I want to buy this stock on any weakness, because I think companieswill turn to IBM for help in remote disaster-proofing. This is my primary buy-on-weaknesspick. Big cash flow, big buyback.

International Paper

(IP) - Get Report

: No impact.

Kohl's

(KSS) - Get Report

: Retail is not a place to be right now. This stock has come down agreat deal. In low 40s, I will probably begin to buy again.

Merck

(MRK) - Get Report

: May benefit from a flight to safety and buybacks. Will also benefit from a weakened dollar.

Merrill Lynch

(MER)

: Another round of number cuts ahead because of missedbusiness. Merrill will step up disaster planning and IT spending.

Microsoft

(MSFT) - Get Report

: Could announce a stepped-up buyback plan, but otherwise there is no realimpact.

Morgan Stanley

(MWD)

: Loss of revenue triggers another round of earnings-estimate cuts.

Pepsico

(PEP) - Get Report

: Will benefit from a flight to safety. Will receive a higher price-to-earnings ratio.

Pfizer

(PFE) - Get Report

: Had just reiterated forecast. Will benefit from a flight to safety and a weakened dollar.

Philip Morris

(MO) - Get Report

: Will benefit from a flight to safety and a weakened dollar..

Qwest

(Q)

: Just lowered forecast, not expected to lower again. I am upset withthis stock because the management has not been forthcoming; it chose to deny criticisms that later turned out to be, in part, true.

Schlumberger

(SLB) - Get Report

: Will be a short-term beneficiary of higher oil prices and knee-jerkMideast reaction.

Goldman Sachs

(GS) - Get Report

: Too low to sell now, but this stock's numbers are too high.

TRW

(TRW)

: Defense business is good, auto business is bad. Dividend cut taken instride.

UnitedHealth

(UNH) - Get Report

: UNH raised numbers the day of the crash. Will bere-recommended by people next week.

Universal Health Realty

(UHT) - Get Report

: Safety name with good yield, looking to buy morethis week.

Verizon

(VZ) - Get Report

: Will benefit from a flight to safety. Short-term earnings hit,longer-term shows far better reliability than AT&T during crisis withwireless. Looking to buy more.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for the network of TSC sites and serves as an adviser to the company's CEO. Nonstaff contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. At the time of publication, Cramer was long all of the stocks in the Action Alert portfolio. While he cannot provide investment advice or recommendations, he invites you to send comments on his column to

jjcletters@thestreet.com.