S&P 500 Newcomers StrategyCramer said investors need to own firms waiting to be added to the S&P 500. Which stocks are those? Cramer gave his seven best names: Google, Juniper ( JNPR - Get Report), Chesapeake Energy ( CHK - Get Report), Amazon.com ( AMZN - Get Report), Vornado Realty Trust ( VNO - Get Report), Legg Mason ( LM - Get Report) and Whole Foods Market . Should you go out and buy all of these stocks? No, Cramer said. But investors should be ready to buy any dip in the stocks.
'The Lightning Round 1'
BearishCramer was bearish on Pfizer ( PFE - Get Report), Tyco ( TYC), Exxon Mobil ( XOM - Get Report), Teekay Shipping ( TK - Get Report), Limited Brands ( LTD), Ford ( F - Get Report), Cosi ( COSI), Red Hat , Ivax , International Securities Exchange Martha Stewart Living Omnimedia ( MSO), Las Vegas Sands ( LVS - Get Report), Medimmune , Micrel Semiconductor ( MCRL), Provident Energy and American Capital ( ACAS).
Round 2In a second, abbreviated Lightning Round, Cramer was bullish on: Tibco Software ( TIBX) and GameStop ( GME). Cramer was bearish on: Maytag , Oracle ( ORCL) and Serena Software ( SRNA).
The Doctor Is In"Dr. Cramer" donned his white lab coat for a segment of "Am I Nuts?" His first "patient" wanted to know what she should do with her Verizon ( VZ) position. She's owned the stock as a result of her ownership in Nynex and then subsequently Atlantic Bell. Cramer said she shouldn't be worried about where the stock has been but where it is going. Cramer gave the patient permission to sell the stock. "The company has no growth," he said. Another patient wanted to know what he should do with his Broadcom ( BRCM) position -- one he has held since the stock traded at $150 a share. Cramer told the guy to ignore his cost basis and concentrate on where it is going now. Cramer said he believes the stock is heading to $50. A third patient felt guilty about owning tobacco company Altria ( MO). Cramer said the patient could take the money she makes from the dividend and donate it to a cause that would make her feel better about owning the stock. Cramer said he believes Altria's dividend is heading higher. Finally, Cramer's last patient said that she has had terrible luck when it comes to buying stocks. When she buys, the stock goes down. Cramer said that she should stop buying all of her stock at once. Buy it in chunks, he said.
|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|