Click here for an archive of Jim's Mad Money Recaps. Jim Cramer ate a plate of crow at the beginning of his "Mad Money" show Wednesday night. It pained him, but he told viewers on CNBC that he got it wrong on Symbol Technologies ( SBL). "This is a company that almost killed me," Cramer said. Cramer said he had bought the stock some time back because he thought it would be a great homeland-security play. He figured the U.S. government would be buying radio frequency identification technology from Symbol, and then the money would come tumbling in. So he bought. And then he waited. And waited some more. The stock just kept going down. Eventually, Cramer sold the stock at right around $10. So what caused Cramer's humility Wednesday night? The secretary of Homeland Security, Michael Chertoff, announced a massive restructuring today. He is going to spend a lot of money on technology. And, Cramer, said, that means Symbol is poised to win contracts. So why didn't the stock move on the news? Because, Cramer said, too many people lost money the first time around. There are still too many disbelievers. So where to for Symbol from here? Cramer said that he blew it, but other investors don't have the baggage he does. As such, "You can go out and buy it now," he said. Moving on to the callers, someone wanted to know what he should do when a stock he owns has gone down. When do I sell and when do I buy? the caller wondered. Cramer said that if the stock was bought as a trade, you blow out of it. If, however, the stock was bought as an investment, then you do more homework and decide if you want to buy more. Remember, Cramer said, "It's called buy and homework."
DNA and a PepsiLater in the show, Cramer offered two stocks that should be bought now: Pepsi ( PEP) and Genentech ( DNA). He said Pepsi has taken Coca-Cola's ( KO) best shots and rebounded every time. What's more, "Pepsi has a strong mosaic of businesses," Cramer said. As a result, no competitor can lay into it. As for Genentech, Cramer said it has a strong drug pipeline and the pipeline is not reflected in the numbers, he said. Cramer said Genentech reminds him of the way Merck ( MRK) traded back in 1985 and 1986. The stock went up every day. Pepsi and Genentech are both best of breed, Cramer said, and neither can be defeated. As for the rumor du jour, Cramer said call buyers have been busy in the options pits speculating on Eastman Kodak ( EK). Word on the Street is that Hewlett-Packard ( HPQ) is getting ready to buy the company. Not so fast. "Don't do an obviously stupid thing with this tip," Cramer said. "Do not buy Eastman Kodak, he admonished. "Tips are for waiters." If you buy Eastman Kodak, you are breaking Cramer's rule. The rule is that you do not speculate on companies with bad fundamentals, and that's what Eastman Kodak has, he said. If you want to play the rumor, buy H-P instead, he said. Once H-P denies it is buying the company, H-P will fly, Cramer said. Finally, Cramer gave ev3's ( EVVV) chief executive, Jim Corbett, an opportunity to detail his company's prospects. The company, which recently went public, hasn't shown much stock appreciation, but Cramer said he would buy shares in the medical device maker.
BullishDuring the Lighting Round, Cramer was bullish on: Nextel Partners ( NXTP), Wynn Resorts ( WYNN), Goodrich Petroleum ( GDP), Harrah's Entertainment ( HET), Hansen Natural ( HANS), OraSure Technologies ( OSUR), Boyd Gaming ( BYD), Amgen ( AMGN), Target ( TGT), Halliburton ( HAL), EnCana ( ECA), Petroleo Brasileiro ( PBR), Annaly Mortgage ( NLY), Archer Daniels Midland ( ADM), Gold Kist ( GKIS), Bunge ( BG), Countrywide Financial ( CFC), J.C. Penney ( JCP), Constellation Brands ( STZ), L-3 Communications ( LLL), Centerpoint Energy ( CNP), Coventry Health Care ( CVH), RSA Security ( RSAS), Sabine Royalty Trust ( SBR), Temple-Inland ( TIN), Harley-Davidson ( HDI), Air Products and Chemicals ( APD), Cendant ( CD), Transocean ( RIG) and Garmin ( GRMN).
BearishCramer was bearish on: Lakes Entertainment ( LACOE), Regeneron Pharmaceuticals ( REGN), Ross Stores ( ROST), Gateway ( GTW), Allegheny Energy ( AYE), palmOne ( PLMO), Fieldstone Investment ( FICC), CMGI ( CMGI), Anheuser-Busch ( BUD), First Data ( FDC), Sun Microsystems ( SUNW), Union Pacific ( UNP), PetroKazakhstan ( PKZ) and Trimble Navigation ( TRMB).
Interested in more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. It's a series of articles from Cramer on how to become a better investor. The following table lists some of the rules that Cramer dissects.
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once||4.||Buy Damaged Stocks|
|5.||Diversify to Control Risk||6.||Do Your Homework|
|7.||Don't Panic||8.||Buy Best-of-Breed|
|9.||Defend Some Stocks||10.||Don't Bet on Bad Stocks|
|11.||Own Fewer Names||12.||Cash Is for Winners|
|13.||No Regrets||14.||Expect Corrections|
|15.||Know Bonds||16.||Don't Subsidize Losers|
|17.||No Room for Hope||18.||Be Flexible|
|19.||Quit When Execs Do||20.||Patience Is a Virtue|
|21.||Be a TV Critic||22.||When to Wait 30 Days|
|23.||Beware the Hype||24.||Explain Your Picks|
|25.||Find the Bull Market|
|Check back for more of Cramer's Rules|