There are market opportunities to find stocks that work based on their fundamentals, Jim Cramer told viewers of his "Mad Money" TV show Thursday. While Cramer remains bullish on agriculture, infrastructure and health care stocks, he believes oil stocks may present the biggest opportunity for investors. Cramer cited dwindling oil reserves as the long-term catalyst that make oil stocks attractive. He noted companies like Statoil ( STO) and BP ( BP), both of which were taken lower recently on fears the companies may be running out of reserves.
Looking Out for the Little GuyCramer welcomed Eric Dinallo, the state of New York insurance superintendent, to the show to discuss recent concerns and allegations involving MBIA ( MBI - Get Report) and other insurers ravaged by the subprime mortgage mess.
A Difference of OpinionThere's a battle brewing over Salesforce.com ( CRM - Get Report) and Cramer's taking sides. It seems Salesforce was recently upgraded by UBS on the same day Goldman Sachs downgraded the stock. "What's amazing about these differing opinions," Cramer points out, "is how much the analysts agree on." Both firms agree that Salesforce is the best run company in the software service industry, with the best management and great recurring revenues. Both analysts also agree that the company is the leader in its industry and is having a great quarter. So why, Cramer asks, did the Goldman analyst downgrade Salesforce? Because the stock is priced for perfection, he points out. Cramer is siding with the Goldman analyst and recommends trimming your position in Salesforce and selling into any strength. The stock, he points out, trades at 170 times its 2008 estimates, and that's just too high. Any bad news could signal disaster for Salesforce. Cramer believes there may be 10 points of upside, but perhaps as much as 30 points of potential downside. The lesson, Cramer says, "is even great companies can be too expensive."