Click here for an archive of Cramer's "Mad Money" recaps.
Spinal TapMedical device makers' stocks should be rocking in this market, Jim Cramer said Wednesday on his "Mad Money" TV show. But, because a number have received Department of Justice subpoenas, Kyphon ( KYPH) is the only one that has pricing power, said Cramer. The DOJ is investigating medical device companies for possible violation of federal anti-kickback rules. Those having received subpoenas include Zimmer Holdings ( ZMH), Stryker ( SYK), Biomet ( BMET), Guidant ( GDT), Medtronic ( MDT) and St. Jude Medical ( STJ), said Cramer. That means those companies won't dare raise prices while the investigation is ongoing, he said. Although it's stock has done well, St. Jude's, said Cramer, is only up for ancillary reasons. Cramer would ring the register. Another stock in the group, Boston Scientific ( BSX), is facing a class-action suit; Cramer wouldn't touch it. That leaves only Kyphon, a maker of medical devices for spinal ailments, said Cramer. Kyphon hasn't received a subpoena, and that means it has legitimate pricing power, he said.
South America Goes NorthPresident Bush is set to visit Brazil and Argentina in the next four days, and Cramer envisions increased positive media coverage of the Brazilian and Argentinian economies. That should create a rally in Latin American stocks traded there, he said. Cramer's shopping list of trades for Argentina includes: Petrobras Energia Participaciones ( PZE), an oil company; Telecom Argentina ( TEO), a telecommunications company that Cramer believes will benefit from media coverage of wireless and Internet growth; and Grupo Financiero Galicia ( GGAL), a bank that should benefit from positive coverage of Argentina's economy. Cramer's shopping list for Brazil includes: Gol Linhas Aereas Inteligentes ( GOL), a profitable, growing airline that can pass higher fuel costs on to customers and that also isn't saddled with U.S.-style labor unions, said Cramer; Companhia Vale Do Rio Doce ( RIO), an iron ore and copper mining company; Companhia Siderurgica Nacional ( SID), a steel company, as steel demand is strong in developing Latin American countries, said Cramer;
Gerdau ( GGB), another steel company; Tele Norte Leste Participacoes ( TNE), a telecommunications play; Petroleo Brasileiro ( PBR), an oil stock, and Banco Bradesco ( BBD), a financial play. The two stocks Cramer would recommend as investments and not just trades are Petroleo Brasileiro and Banco Bradesco, he said. In response to a question on coal and copper stocks, Cramer said he was wrong on Fording Canadian Coal Trust ( FDG), but he still likes Peabody Coal ( BTU). On copper, he said Phelps Dodge ( PD) is not as good as Southern Copper ( PCU). " Fed-proof" your portfolio, said Cramer, with stocks that make money, no matter if interest rates are rising and the economy is slowing, he said. One stock that fits the bill is DaVita ( DVA), an operator of dialysis centers. DaVita should benefit long term from an aging population, said Cramer. The company already has strong "same store" sales, and it has pricing power after acquiring some of its competition. DaVita is also seeing growth from a healthy clinical research business, he said.
click here .) Pizzi said Tasty Baking was a turnaround story. The company has a solid foundation upon which to grow, he said. Tasty has always had a great brand, and now it also has the management expertise, marketing, product innovation, technology platform and improved capital structure that will allow it to expand. "Is this just going to be a regional brand for the rest of our lives?" asked Cramer. "That's a good question," said Pizzi, who noted his company has been expanding one market at a time throughout the upper Midwest and the Northeast. "Do you have enough money to support these brands?" asked Cramer. "We're doing this on a methodical basis ... with our partners," said Pizzi. Cramer summed up the interview saying he loves Tasty's products, "but I need to see two quarters of growth because of the 20 years of flat line. ... But, let's keep an eye on this."
Half-Baked?Charles Pizzi, CEO of Tasty Baking ( TSTY), joined Cramer by telephone to talk about his company's expansion. (To watch Cramer's interview with Pizzi, please
Lightning RoundBullish Cramer was bullish on Google ( GOOG), Apple Computer ( AAPL), Wachovia Bank ( WB), Advanced Micro Devices ( AMD), Conexant Systems ( CNXT), Hansen Natural ( HANS), L-3 Communications ( LLL), Microsoft ( MSFT), Marriott ( MAR), Hilton Hotels ( HLT), UnitedHealth Group ( UNH), Schering-Plough ( SGP), Dow Chemical ( DOW), GlaxoSmithKline ( GSK), Kinder Morgan ( KMI), Nabors Industries ( NBR), Georgia Gulf ( GGC), International Business Machines ( IBM) and XTO Energy ( XTO). Bearish Cramer was bearish on Shanda Interactive Entertainment ( SNDA), TJX ( TJX), Northern Trust ( NTRS), Waste Management ( WMI), Level 3 Communications ( LVLT), Intergraph ( INGR), PacifiCare Health Systems ( PHS), Time Warner ( TWX), Eastman Kodak ( EK) and Symbol Technologies ( SBL).
|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|