Jim Cramer told his "Mad Money" viewers on CNBC Thursday night that he will not be driven away by a market selloff. Indeed, even on a down day, Cramer is always on the lookout for a bull market. With that out of the way, Cramer headed straight to Chesapeake Energy ( CHK - Get Report), which has been on fire for the last year. Cramer said that he's been all over this stock because of the CEO's relentless insider buying. But now that the stock is up $6 from the CEO's last big purchase, where are we now with Chesapeake? Does it go up or does it go down from here? Because Cramer isn't a fortuneteller, he decided to get the company's CEO, Aubrey McClendon, on the phone. McClendon, who bought 500,000 shares in 2004, said he knows how to spot value when he sees it. And his bullishness was well rewarded Thursday, when the company turned in record numbers after the close. As to where he sees the price of oil going, he said it's definitely not going back to $18 -- and maybe not even $50 a barrel. But this company is leveraged to natural gas and if natural gas spikes to $9 or $10, it would be huge for Chesapeake. The company is largely unhedged beyond $7. Cramer called the company the best and biggest pure play on natural gas in the market, and he said he would back up the truck on the stock and buy it.
Terex -- for a TradeIn light of the great quarter that Terex ( TEX) reported Wednesday night, Cramer said it was prudent to address those who think it's ridiculous to own Terex -- which is not best of breed in its industry -- instead of Caterpillar ( CAT), which is best of breed.
Even Worst of Breeds Have Their DayUsing that as a seque, Cramer pointed to eight worst-of-breed stocks that could work under the right conditions. They are:
Insider BaloneyFinally, Cramer told investors not to get misled by insider sales. "Insiders sell for a host of reasons: taxes, divorce, lifestyle or just good financial planning," Cramer said. "Yet the media love to focus on it -- so do the short funds -- because it is accessible and so easily compiled. In fact, insider selling documents have inspired a whole silly cottage industry of newsletters, all purporting to get you out of trouble before it happens." But does it work? Cramer asked. Does anyone ever ask that? "I can tell you that as a manager who has pretty much used every single piece of public data available, the answer is a definitive no," Cramer said. In fact, said Cramer, it is worse.
'The Lightning Round'
BullishCramer was bullish on Intel ( INTC - Get Report), Motorola "You lucky son of a gun, that stock is going higher," Cramer said), Fortune Brands , Cisco Systems ( CSCO - Get Report) ("I think Cisco will be last to move, but move it will," Cramer said), Dick's Sporting Goods ( DKS - Get Report), National Oilwell Varco ( NOV - Get Report), Public Service Enterprise ( PEG), Dominion Resources , Stride Rite ( SRR), GlobalSantaFe ( GSF), PetroChina ( PTR - Get Report), Chemed ( CHE - Get Report), Wyeth , CMGI ( CMGI), XTO Energy , IntraLase ( ILSE), Canon ( CAJ), Best Buy ( BBY), Skyworks Solutions ( SWKS - Get Report), and Con Edison ( ED - Get Report).
BearishCramer was bearish on: St. Mary Land & Exploration ( SM), NutriSystem ( NTRI), Au Optronics ( AUO - Get Report), OmniVision Technologies ( OVTI), Affymetrix ( AFFX), ViroPharma ( VPHM), Dynamic Materials ( BOOM), Dycom Industries ( DY), Affiliated Computer Services , Ansys , Meridian Resources Quanta Services ( PWR), Gentex and Presstek ( PRST).
|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|