The pick of the week is News Corp. ( NWS), Jim Cramer told viewers of his "Mad Money" TV show Monday. This stock won't necessarily make people money this week, but Cramer is willing to put his full credibility on the line for it, he said. The stock, which virtually seems to reach a new high every day, is Rupert Murdoch's baby, he said. "This stock is Fox and the New York Post," he said. "I believe everything about News Corp, other than print, screams that the stock should be going up." Cramer believes the company might even be ready to join Yahoo! ( YHOO) and Google ( GOOG) in the Internet hierarchy. It can make you money, he said. Cramer owns Yahoo! for his
Bet on BectonTime and time again, Cramer said he has advised viewers to read their local papers because he believes they make you money. He pointed out an article from his local paper, the Newark Star-Ledger , which gave him Becton Dickinson ( BDX) as a stock pick. These are articles the big newspapers miss, he said. Becton Dickinson is a great medical supplies and diagnostics play, and right now, with the slowing economy, he believes people should have more medical exposure, he said. Becton Dickinson is a play on diabetes. No matter how poor you get, you're always going to get syringes, and if you're too poor, the government will pick up the tab for you, Cramer said. If the market was thriving, he said, he wouldn't recommend Becton Dickinson, but since it's not, Cramer believes medical diagnostic companies are in major bull market mode. Staph infections usually make people sick in hospitals, but this is about to change, Cramer said. Becton Dickinson recently bought a company called Geneohm, which has the ability to detect staph infections in two hours. A newspaper article in the Star-Ledger said this could save a lot of lives, but Cramer thinks it could make people money. "You wouldn't know this if you just read the big papers," he said. "Stories like these show you how to get an edge on the Street."
Full FlexSmart investors are flexible, Cramer said. In fact, he believes you can never be too flexible to make money. Take the example of 3M ( MMM), he said. "I don't believe in the idea of blue-chip stocks, but if you were going to call any stock a blue-chip stock, 3M would be it," he said, adding that 3M is also an example of why he believes its good to flip-flop. After doing very well, the company cut its guidance last week and 3M's stock fell from $81 to $74. It was recently at $73.11. The company lost 8% of its value in a day, Cramer said. This was all because of LCD sales. People can't always believe management, even very good management like 3M's, he said. "You need to think of CEOs like politicians," he said. "Would you ever expect a politician to say, 'Don't vote for me?' Would you ever expect a CEO to say, 'Don't buy my company's stock'?" Chief financial officers can't lie about numbers, but CEOs can act like they're surprised by numbers -- that's why they're dangerous, he said. You need to flexible, he emphasized to his viewers. You need to be willing to sell because inflexible "pigs" are not going to make money in this market, he said. Moreover, he warned people against being foolish. "If you make money in a stock, take some off the table because you haven't made a dime until you've sold the stock and taken the money to the bank," he said. "Sell good stocks when they go up, or at least
Stay With SandersonCramer welcomed Sanderson Farms ( SAFM) Chairman and CEO Joe Sanderson to the show and, referencing a report by JPMorgan's Pablo Zuanic, asked him why Sanderson believes this analyst thinks people should sell Sanderson Farms. Sanderson said he knows Zuanic very well, and said this is not the first call that Zuanic has made a call prematurely. When Cramer asked Sanderson how he can maintain a profit when raw costs have been going up, Sanderson responded that he doesn't know if grain has gone up. "It's up today. But there is a significant weather premium in the market and anticipation of huge ethanol production next year," Sanderson said. "Those are the two primary factors, but they're not up astronomically." Sanderson said his company feels that, as a public company, they owe it to their shareholders to grow. The growth, he said, is their opportunity for revenue and earnings per share. "Our constraint on growth is not what we think about the market, but what we think about our balance sheet," he said. "When our balance sheet has low leverage as it does now, and as it did in October, we grow. We just feel that it is an obligation, not a choice we have." Cramer said he's sticking with Sanderson and not with JPMorgan's Zuanic. To view Cramer's interview with Sanderson, please
BullishCramer was bullish on Yamana ( AUY), OGE Energy ( OGE), Research In Motion ( RIMM), NightHawk Radiology Holdings ( NHWK), Coach ( COH), JP Morgan ( JPM), Wells Fargo ( WFC), Martek Biosciences ( MATK), Vertex Pharmaceuticals ( VRTX), Qwest Communications ( Q) and Zoltek ( ZOLT).
BearishCramer was bearish on Goldcorp ( GG), JDSU ( JDSU), Lucent ( LU), Cray ( CRAY), EMC ( EMC), IBM ( IBM) and Anadigics ( ANAD). For more of Cramer's insights during the Lightning Round,