Jim Cramer issued a mea culpa on Dick's Sporting Goods ( DKS - Get Report) on his "Mad Money" show Tuesday evening. Dick's
Tech TellsTech is easier than Deere and Dick's to explain. Intel's ( INTC - Get Report) issues stem from not being able to deliver enough product. If it could deliver more product, if it had more chipsets, the numbers would go back up. Cramer also likes Wachovia ( WB - Get Report), which just announced a big buyback and boost in the dividend, and it sells for 12 times earnings.
Good DNACramer spoke about a Wall Street Journal article about how more and more people are contracting lung cancer, even nonsmokers. Cramer emphasized that this news is, of course, tragic. But he said his job is to help people make money, and the sad cancer story helps Genentech ( DNA), which makes Tarceva, the company's lung cancer drug. It's the only viable drug for lung cancer right now, Cramer said. "This isn't a daytime talk show," Cramer said. "In this business, you're a fool to pass up an opportunity to make money. "Genentech comes as close as possible to curing cancer," Cramer said. "You can count on most news like this breaking in its favor. "Cancer can make you money," he said. "Moral or immoral, as long as it's legal, you should own DNA if you want to make some money." The biggest move of the year aside from Google ( GOOG - Get Report) was the move in Genentech after it got the approval of its colorectal cancer drug Avastin, Cramer said. Cramer also owns shares of a company that makes a product that leads to lung cancer. Despite its product -- cigarettes -- Cramer was bullish on Altria ( MO) because "people continue to smoke, and Altria's international business is en fuego." In response to a caller's question, Cramer said it was best to get into a drug or biotech stock while the potential drug is in the pipeline, not after it is approved. After approval, expectations tend to get too high. Unless you're in early, you can't make the easy money.
Herb and PerfumeHerb Greenberg, senior columnist for Marketwatch, was back on. Greenberg said he is surprised Dick's wasn't down further. He said it is interesting that Dick's paid a very high price for its acquisition of Galyan's, and that the accounting for acquisitions almost always leaves room for the acquiring company to make things look better than they really are. On Parlux Fragrances ( PARL), Greenberg said: "It stinks to such high heaven that all the perfume in Paris couldn't cover up the stench." Cramer retorted that it seemed to have earnings momentum and wasn't expensive. But Greenberg said what he didn't like was that the company announced it was seeking out "strategic alternatives" to bring out shareholder value after the stock had gone from $2 to $30 in the past two years. "You don't have to enhance shareholder value with that!" Greenberg thundered. More than that, he said, Parlux's biggest customer is eCom Ventures, which owns Perfumania, whose second-largest shareholder and former CEO is the current CEO of Parlux. On Sonic Solutions ( SNIC), Greenberg said the company would have missed earnings had it not had a tax credit no one was expecting. Furthermore, the company guided down in an industry in which there is a lot of competition. Greenberg said he would be taking a closer look at the company.
In ClosingCramer said the day was all about how bad tech and retail were. But after the close, Hewlett-Packard ( HPQ - Get Report) reported good earnings and said many of its businesses are doing very well. Applied Materials ( AMAT) said business has gotten better and seems to have the numbers to back it up, "which they haven't
BullishCramer was bullish on Hewlett-Packard, Commerce Bank ( CBH - Get Report), Citigroup ( C - Get Report), Walgreen ( WAG), Mentor ( MNT), SanDisk ( SNDK), Verint Systems ( VRNT - Get Report), Thermo Electron ( TMO), BP ( BP), ConocoPhillips ( COP), Starbucks ( SBUX - Get Report), Yahoo! ( YHOO), Google, ATP Oil & Gas ( ATPG), Terex ( TEX - Get Report), RSA Security ( RSAS), Homex Development ( HXM), Bancolombia ( CIB), Goodrich Petroleum ( GDP - Get Report), Home Depot ( HD - Get Report), Genzyme ( GENZ) and Patterson-UTI Energy ( PTEN - Get Report).
BearishCramer was bearish on Yankee Candle ( YCC), Shanda Interactive ( SNDA), Chicago Mercantile Exchange ( CME), Mentor Graphics ( MENT), StemCells ( STEM), Peet's Coffee & Tea ( PEET), VeriSign ( VRSN), Southwest Airlines ( LUV), ViroPharma ( VPHM), FrontLine ( FRO), Entrust ( ENTU), Sonic Solutions ( SNIC), Hurco ( HURC), Oracle ( ORCL), Elan ( ELN) and Sonus Networks ( SONS).
|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|