It always gets in the middle of earnings, when big hedge fund and portfolio mangers get overwhelmed and sloppy, making mindless extrapolations as earnings report after earnings report hit the market, said Jim Cramer on his
"RealMoney" radio show Thursday.
While Wall Street panics, "this is the single best moment to make money," he said, "but you have to stay focused."
is doing well because we need it for mining and energy projects, he said. Its success tells Cramer that it's time to stop selling the energy-related companies.
is up, he said, because now is the time to hold onto aerospace-related companies.
There were bad rumors about
that pushed the stock down $5 overnight, Cramer said. But when the rumors cleared, the stock regained ground.
may face a similar fate.
So where does he see the bull markets? Cramer said to look for the bull market in infrastructure plays, as well as in oil and oil services.
"We're drilling like mad because we're running out of oil," he said.
Cramer also said that aerospace will be a hot sector, and that the easiest way to play the trend is to pick up
. He recommended companies that make gadgets smaller or larger than a personal computer, as well as health care cost-containment companies.
He said to stay away from PC plays, classic pharma and banks that can't handle another two interest rate hikes from the
"And never forget to ring the register," he said, "because we don't want to repeat the woes of 1999 and 2000."
, he said. For investors who picked it up when he recommended it at $1.80, the stock has nearly doubled, and it's time to ring the register, Cramer said.
Listeners overwhelmingly wanted to know more about
Cramer said that the stock pays a 5% yield, which is better than what you'd get with most bonds, but that Verizon's wireless division is its only growth division.
He said that the wireline division is hurting and, "to make matters worse," the company is trying to compete with cable operators.
Cramer would stay away from Verizon,
For a play on what's driving earnings for wireless, his pick was
, which he owns for his
Action Alerts PLUS charitable trust.
And he would look to
for a play on the build-out in fiber. Cramer also liked
, but said that he'd wait for a pullback before he would buy.
Stump the Meister
Thursday was "Stump Cramer" day, when callers try to find companies that the stock guru hasn't heard of and might want to know about.
Cramer warned listeners to not run out and buy a stock that stumps him just because a caller makes it sound good, but to wait for a member of
Stocks Under $10 team to join him on the show the following day with an analysis of the stock.
Cramer was stumped by packaging company
, which does a lot of business with
Procter & Gamble
The caller said that natural gas prices coming down could help the company, as well as P&G's recent acquisition of
, which he thought could mean more business for Multi-Color.
also stumped Cramer.
The caller said that pirates who attacked a cruise ship off the coast of Somalia were beaten back by a sonic weapon made by American Technology that could be used by law enforcement agencies.
Cramer was also stumped by
He already knew about
, a Korean wireless stock that he doesn't like.
And Cramer was also aware of
, which he said is not one of his favorite broadband plays.
However, Cramer would revisit
, a company that he considered featuring earlier, but eventually passed on.
As usual, Cramer had lots of callers with plenty of great questions.
He told a man who wanted more information about
that the stock was on the 52-week low list because the chocolate business had its slowest increase in five quarters and that it missed estimates by a wide margin.
However, Cramer said that the company is a best-of-breed stock that had a momentary stumble related to things entirely within its control. He recommended the stock for investors who want a great company that will turn around, even though it won't immediately improve.
He said that despite Amgen's great quarter, the stock fell on a downgrade by Merrill Lynch that Cramer believes has little merit.
Given that the company has 16% to 17% growth, is selling at 19 times earnings and has lots of new drugs on the horizon, Cramer would use the stock's weakness as an opportunity to buy.
Even though he recommended
8 points ago, Cramer said there could be more upside for the titanium-making company.
Cramer said that
, which also reported a great quarter, was down because it gave guidance that was so confusing and negative that even he was momentarily flummoxed.
But after conferring with people who know the stock well, Cramer was convinced that Qualcomm was lowering expectations for the rest of year so it can beat them. Even though he wasn't thrilled about this strategy, which Cramer called "sandbagging," he likes the stock, which he also owns for his charitable trust.
A listener asked in an email if it's time to pick up Boeing now that it has taken a beating postearnings.
Cramer agreed with the listener that this could be a good entry point. The stock was downgraded by
Bank of America
, but Cramer believes that we're in year three of a seven-year cycle for aerospace.
He added that it's one of the best values in the
A caller wanted to know how long it took before Cramer felt comfortable with the assessments he made about stocks, based on the homework he had done.
Cramer said that the timetable would be different for everyone but that it took him about three to four years before he really started to feel comfortable with his own analysis.
At the time of publication, Cramer was long Boeing, Procter & Gamble, Qualcomm and Motorola.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside 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. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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