Jim Cramer took up the protracted debate over the market's bottom on his his Mad Money TV show Friday. Cramer said he is not taking sides in the debate, trying instead to remain flexible. Noting there are arguments both for and against calling a bottom in the stock market, he emphasized just having the debate itself is a good sign. On the upside, Cramer cited the PHLX Housing Sector Index
Cramer Interviews ComScore CEO
An Infrastructure Play on Wind PowerFor speculation Friday, Cramer turned to his favorite form of alternative energy, wind power, recommending MasTec ( MTZ - Get Report) as a stock investors need to own. Cramer said MasTec mainly builds infrastructure for the telco and energy industries, but it also has a budding wind power business that's gaining momentum.
The Boom in Internet AdvertisingCramer talked with Gian Fulgoni, chairman of Comscore ( SCOR), to help decipher the company's recent report on advertising traffic at Internet giant Google ( GOOG). Fulgoni explained that since Google does not provide earnings guidance to analysts, the company is often desperate for any information about the company. This is why Fulgoni believes that many analysts misread Comscore's recent traffic report on Google, which only included domestic traffic and not international traffic. He said that while domestic click-thru's are flattening, Google continues to see growth overseas. Fulgoni also described Internet advertising as healthy overall. He said the online advertising business is on fire. He noted advertisers are increasingly finding they can get more bang for their buck online and often at less cost than traditional advertising. In a tightening economy, he felt advertisers would rely on the Web even more.
Eco-PackagingFor investors looking for a great turnaround story, Cramer recommended Packaging Corp of America ( PKG), the sixth largest producer of cardboard and containerboard in the U.S. According to Cramer, the worst is now over in the container business. He said that things are improving and now's the time to buy. Cramer said he likes Packaging Corp. because supplies of container board continue to be tight. With International Paper's ( IP) recent acquisition of Wyerhauser's ( WY) container board business, Cramer said supplies are likely to tighten even further. In a commodity business, Cramer always looks for the lowest-cost, highest-margin producer, and Packaging Corp fits that description. Packaging Corp uses only 23% of the higher priced recycled materials in its products compared to the industry average of 51%. Cramer said that while this may not be environmentally friendly, it makes PKG the cheapest producer out there. The company also uses far less natural gas in its production, giving it additional cost savings. With a 5.1% dividend yield and a $110 million stock buyback program that accounts for 4% of the shares outstanding, Cramer said investors can't go wrong. Packaging Corp trades at just $4 off its 52-week low, but Cramer thinks the stock could rise to $33 a share on any turn in the economy.
Lightning RoundCramer was bullish on Hanesbrands ( HBI), Potash ( POT), France Telecom ( FTE), Capstone Turbine ( CPST), Exxon Mobil ( XOM - Get Report)and Gafisa ( GFA). Cramer was bearish on Diebold ( DBD - Get Report), Granite Construction ( GVA - Get Report)and Red Hat ( RHT).
Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-Plough (SPG), Yamana Gold (AUY) and Inverness Medical Want more Cramer? Check out Jim's rules and commandments for investing by clicking here. For more of Cramer's insights during the Lightning Round,