In retail, Cramer said there are a few bright spots. He still likes Wal-Mart ( WMT), which he also owns for his Action Alerts PLUS portfolio, Costco ( COST), and Amazon.com ( AMZN) if it comes down. Out in Las Vegas, Cramer said he only sees one winner at the casinos, and that's Wynn Resorts ( WYNN). Cramer said he's also a fan of certain technology names, as well as pharmaceuticals, bitotech, consumer products, and healthcare. He also said he'd be a buyer of Agnico-Eagle Mines ( AEM) right here.
In this weekly segment, Cramer went "Off The Charts" to examine the stock of Qualcomm ( QCOM), a stock which he owns for his charitable trust, Action Alerts PLUS . According to the chartists, Qualcomm is a sell. Despite a recent rally in tech stocks, Qualcomm has been unable to pass its January highs. This indicates the buyer just aren't interested, said Cramer. With no relative strength, the stock broke its uptrend line on high volume, also signaling to the technicians that it's time to sell. But Cramer said he's a believer in the fundamentals at Qualcomm. With a 20% long-term growth rate and a great product cycle, Cramer said Qualcomm should be on fire. The company has $14 billion in cash and is taking share while it faces weaker competition. Cramer also liked that China is spending $40 billion to upgrade its telco, and Qualcomm is well positioned to take advantage. With 90% margins, and the growth of 3G cell phones expected to rise from 40% penetration to 70%, Qualcomm is a winner, according to Cramer. "I like Qualcomm, I'm a buyer."
Wal-Mart Pin Action
Investors looking for a silver lining in Wal-Mart's most recent earnings call should take a look at the pin action on Ralcorp ( RAH) and Treehouse Brands ( THS), said Cramer. On their conference call, Wal-Mart announced renewed emphasis on its private label brands, a trend which Cramer said plays right into the hands of Ralcorp and Treehouse. Since his last recommendation of the pair on Dec. 16, Ralcorp is up 12.5%, while Treehouse is up 15.8%. Cramer said the trend makes perfect sense, as the recession gets worse, more and more people will turn to the lower cost, private label items. Private label, he said, is already taking shelf space at many grocery chains, and is poised to do the same at Wal-Mart. Cramer said both Ralcorp and Treehouse still have lots to love. Both have cash for acquisitions, the possibility of estimate bumps from the analysts, and commodity cost hedges expiring soon that will allow the companies to benefit even more from falling raw costs.
Outrage of the Day
Cramer again took aim at Treasury Secretary Tim Geithner, who Cramer said is losing credibility by the day for his decision as New York Fed Chairman to let Lehman Brothers fail.