In this choppy market and slowing economy, "stop crying over spilt milk and buy Dean Foods ( DF)," said Jim Cramer on his "Mad Money" TV show Friday. Now is the time to own stocks that are safe and can make money in good times or bad, said Cramer. That means, above all, you want to own food stocks. Dean Foods is especially well-positioned because with a 30% market share, four times the market share of its next largest competitor -- and as high as an 80% market share in some local markets -- Dean Foods is large enough to have pricing power. That means it can pass on higher energy costs to customers, said Cramer. Dean Foods should also see increasing margins in the next year as it shuts down some facilities, he said. In response to a question about Kraft Foods ( KFT), don't buy, said Cramer. Kraft is a subsidiary of Altria ( MO), and you never want to buy the stock of a subsidiary because the parent company can do whatever it wants with it, said Cramer. Buy Altria instead, he said, adding that he believes Altria is worth $105. A caller asked about Buffalo Wild Wings ( BWLD). Cramer said that stock was "way too speculative at this point."
Enbridge Provides Safe PassageCramer is bullish on Enbridge ( ENB), a Canadian pipeline company that is building a pipeline from the oil sands of Alberta to British Columbia, he said. This pipeline will open up Alberta's oil to the Chinese and California markets. Although the price of oil has come down from its highs, it's still plenty high for oil sands to be profitable, said. Cramer. The company pays a "pretty substantial dividend" and is a "little-hyped play on the very hot oil sands," he said.
Judging LeapFrog's ProgressMarketwatch senior columnist Herb Greenberg joined Cramer to talk about LeapFrog ( LF), which reported good quarterly results Friday, said Cramer. Greenberg said LeapFrog's sales missed estimates, and the quality of its earnings were suspect. "Earnings were good because expenses were deferred. Expenses were cut," he said. "This is a company that's really basing the future on this Fly pen," said Greenberg. Cramer indicated he believes the product will be a success. Greenberg said if the Fly Pentop computer is a success, he will come on the show and "eat crow." "You better bring some salt ... and Tabasco," said Cramer. Cramer asked Greenberg about Overstock.com ( OSTK), which announced third-quarter earnings Friday. Greenberg said Overstock's earnings were "crummy. ... If
Quelling Qualcomm FearsCramer would be buying Qualcomm ( QCOM) after the stock dropped 4.6% Friday on news some of its customers and competitors were suing for allegedly charging too much money for licenses to use its technology. Cramer said Qualcomm's stock didn't deserve to be down as much as it was. Cramer believes investors sold the stock out of fear Qualcomm could wind up like Research In Motion ( RIMM), which faces a real risk of losing its patents as a result of lawsuits, said Cramer. But Qualcomm's situation is nothing like Research In Motion's, he said. Cramer believes the odds are good Qualcomm will prevail. Even if it doesn't, the worst-case scenario for Qualcomm, he said, is that Qualcomm might have to charge less for its technology licenses and pay damages, he said. It is not in danger of losing its patents, he said.
Lightning RoundBullish Cramer was bullish on Costco Wholesale ( COST), Procter & Gamble ( PG), Intel ( INTC), National Semiconductor ( NSM), Broadcom ( BRCM), Best Buy ( BBY), Lexar Media ( LEXR), Wellman ( WLM), Syneron Medical ( ELOS), IntraLase ( ILSE), OraSure Technologies ( OSUR), Southwest Gas ( SWX), PNM Resources ( PNM), Valero Energy ( VLO), Yellow Roadway ( YELL), Intuitive Surgical ( ISRG) and TurboChef Technologies ( OVEN). Bearish Cramer was bearish on Energizer Holdings ( ENR), California Micro Devices ( CAMD), Southwest Airlines ( LUV), Blackboard ( BBBB), Shaw Group ( SGR), Audible ( ADBL), Sigma Designs ( SIGM), Unisys ( UIS), PolyOne ( POL), Mesa Air Group ( MESA), Cutera ( CUTR), Olin ( OLN), Georgia Gulf ( GGC), Lawson Software ( LWSN), Cosi ( COSI), CSX ( CSX) and Schnitzer Steel Industries ( SCHN).
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|