Jim Cramer is not about to give up on oil or natural gas stocks despite the selloff Wednesday he said on his "Mad Money" TV show. In fact, Cramer is recommending Appalachian basin natural gas producer Equitable Resources ( EQT) after Chesapeake Energy ( CHK) announced Monday
Storm Benefits for Thor, OshkoshCramer is bullish on mobile home/RV manufacturer Thor Industries ( THO) for a trade. The Federal Emergency Management Agency has announced plans to purchase 70,000 mobile homes to house victims of Hurricane Katrina, said Cramer. Thor has the biggest market share of mobile trailers and is sure to benefit, he said. At Wednesday's regular session closing price of $32.82, the stock is still about where it was when FEMA made the announcement, Cramer said. "You need to buy it for a trade." Cramer is also bullish on Oshkosh Truck ( OSK) for a trade. Oshkosh makes emergency command vehicles and concrete mixers. Cramer predicts the federal government will purchase plenty of emergency command vehicles to be "totally prepared for the next disaster." Oshkosh's concrete mixer business should also "benefit handsomely from
High Scores for Digene's New TestHealth care diagnostic company Digene ( DIGE) has a relatively new test on the market that is the only FDA-approved test for human papillomavirus (HPV), which causes 99.7% of cervical cancer in the U.S., said Cramer. The most widely used test for HPV, the pap smear, isn't great at detecting the virus as it only detects HPV about 79% of the time, he said. Cervical cancer is easy to prevent, said Cramer, if it is caught early. Thus, he believes, Digene's test, which has only captured about 12% of the market, will become standard by the end of next year. Boding well for the test's prospects is the fact that big insurance companies have already started paying for the test. Additionally, private practices and labs also generally like tests like Digene's HPV test because such tests are good for margins. Cramer said Digene isn't expensive based on current estimates, which he believes are conservative. Cramer believes the stock "deserves to trade a whole lot higher."
Stock Offering Ideas: Vonage, Caribou, CharterIn response to a question about VoIP company, Vonage, which is planning to come public, Cramer said Vonage's IPO will be a hot deal. He would buy stock in the offering and then sell it as soon as it opens for trading. Vonage's business is being destroyed, he said, by eBay ( EBAY), which bought Skype. Commenting on news after the close, Cramer said Starbucks ( SBUX) reported a 10% rise in comparable store sales. Rather than buying Starbucks, though, which was up big in after-hours trading, Cramer recommends Caribou Coffee ( CBOU), which sold shares in an initial public offering Thursday at $14. The stock ended the regular trading session Wednesday at $10.89. "You know what?" asked Cramer. "It's not a bad company. I need you to pick up some Caribou, and I need you to pick it up now," he said. Commenting on a planned stock offering by Charter Communications ( CHTR), Cramer said, "If you buy this, I forbid you from ever watching me again. ... Charter Communications: It should not be bought!"
Lightning RoundBullish Cramer was bullish on ConocoPhillips ( COP), Motorola ( MOT), Micron Technology ( MU), Charles Schwab ( SCH), Ameritrade ( AMTD), E*Trade Financial ( ET), Lexar Media ( LEXR), Google ( GOOG), PetroQuest Energy ( PQUE), Goldcorp ( GG), Skyworks Solutions ( SWKS), Ultra Petroleum ( UPL) and Marathon Oil ( MRO). Bearish Cramer was bearish on KeySpan ( KSE), Nokia ( NOK), Ericsson ( ERICY), International Rectifier ( IRF), West Marine ( WMAR), Research In Motion ( RIMM), Red Hat ( RHAT), Knight Capital Group ( NITE), American Superconductor ( AMSC), Cree ( CREE), Newmont Mining ( NEM), Continental Airlines ( CAL), Electronic Arts ( ERTS), New York Community Bancorp ( NYB), Activision ( ATVI), Take-Two Interactive ( TTWO) and Wells Fargo ( WFC).
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|