"If I had to pick one stock for my Halloween show, then it is Hansen Natural ( HANS)," Cramer told viewers of his "Mad Money" TV show Tuesday. "It's a haunted house stock and probably a lose-your-money stock," he said. "There's nothing more scary and terrifying than a momentum stock that has lost its momentum, Cramer said. "Momentum stocks don't generally come back from the dead." Cramer also believes there's nothing proprietary about the beverage maker. He performed a blind taste test on his show, sampling each of Hansen's drinks. Because all of the drinks tasted the same to him, Cramer said, it's time to sell the stock. "I have no idea which one is which," Cramer said. "It's a totally undifferentiated product." Hansen might try to make premium drinks at premium prices, but there's nothing premium about its drinks, Cramer said, adding that market players need to get out of Hansen before the company reports its next quarter. A lot of analysts believe in Hansen, but now even the bulls are worried about it, he said. In addition, Cramer said he doubts the beverage company is going to be saved by its energy drinks, as they may not be safe, and "it's only a matter of time before medical companies start turning on these guys." Energy drinks are a fad, he went on to say. The bottom line is that Hansen got its "head chopped" last quarter and has only risen two points since then. It's time to get out of this stock, he said. When a caller asked about Tootsie Roll ( TR), Cramer said that because the company is at the top and Hershey ( HSY) recently reached its bottom, it's time to make the switch out of Tootsie Roll and into Hershey.
Mining for Brazilian Best of Breed"Brazil has high growth, decent inflation and
Housing Shorts Need to Cash OutAlthough some people act like it's more sensible to be negative, this is not true, Cramer said. "It's clearly more responsible to be positive on progress." If people bought EastGroup Properties ( EGP), which "looks like one of the greatest performers of the last 10 years," at its low in 1990, they'd be up a "staggering" 742% right now, he said. Going back down memory lane, Cramer said he was "heavily short" EastGroup in 1991 when he had his hedge fund. "It was my biggest position," he said. "Back then, commercial real estate looked like it would never get its legs back." At that time, "shorting was so easy," Cramer recalled. And he thought there was no way EastGroup could ever work off its inventory. The short position worked and made Cramer money as the stock fell from $14 to $6, he said. But then, because he didn't see himself as a pig being too greedy and about to get slaughtered, he allowed the short position to run even more and ended up cutting even when he should have made money. However, Cramer said, it's a good thing he stopped shorting EastGroup when he did. "It turned out to be one of the best-performing stocks I have ever seen," he said. "And the same story is happening again in the housing business to all the homebuilders." Everyone who shorts those stocks is in the same position he was in with EastGroup, Cramer said. "They're wrong," he said. "The facts looked a lot worse for commercial real estate when I was shorting EastGroup" than they do now for homebuilders. Short sellers on Toll Brothers ( TOL), KB Home ( KBH) and Pulte Homes ( PHM) "are all about to get rolled over if they stay short," Cramer said.
Texas Roadhouse Seeks Elbow RoomCramer welcomed Texas Roadhouse ( TXRH) CEO G.J. Hart to the show and asked him why people are cutting numbers. "We did have a good quarter, but we did lower our guidance at the end of the second quarter because of $3
Lightning RoundCramer was bullish on Suncor Energy ( SU), Cisco ( CSCO), Sears Holdings ( SHLD), CommScope ( CTV), Time Warner ( TWX), Energy Transfer Partners ( ETP), Enbridge Energy Partners ( EEP), Southern Copper ( PCU), MetLife ( MET), Best Buy ( BBY) and AutoZone ( AZO). Cramer was bearish on Tellabs ( TLAB), Pacific Ethanol ( PEIX), Goodyear Tire & Rubber ( GT), Lucent Technologies ( LU) and El Paso ( EP). For more of Cramer's insights during the Lightning Round,
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