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Fat cats were the real reason behind today's big market sell-off, Jim Cramer told viewers of his "Mad Money" TV show Thursday.
Red FlagsCramer said he solved the curious mystery of Mantech ( MANT), an information technology company that was riding the wave of national security spending, only to crash March 3 after its chief financial officer resigned and analysts downgraded the firm.
The company also has a two-tier stock structure, said Cramer, another red flag that he avoids at all costs. Cramer said the bottom line is that you can spot trouble before it happens, but only if you know what to look for.
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Sitting PrettyCramer spoke with Peter Swinburn, president and CEO of brewer Molson Coors, ( TAP) to find out how that company is fairing in the tough economic times. Swinburn said that case volumes were actually up at Molson Coors for 2008 and characterized the company's business as "surprisingly resilient." He said Molson Coors is now the second largest beer company in the U.S. and is preparing to ramp up advertising for its signature brands, Coors and Miller. When asked about the company's large cash position, Swinburn said the company is always evaluating where best to spend its cash, and said returning cash to shareholders is always an option they favor. He noted the company's $100 million investment in a pension fund in Europe as just one of the recent investments Molson Coors has made. Finally, when asked how falling costs for raw materials affect the company, Swinburn said that due to hedging last year, Molson has not seen much upside yet, but noted that by the second half of 2009, the company will begin enjoying much of cost reductions. Calling Molson Coors one of the few Obama-resistent companies left, Cramer recommended the stock.
Mad MailCramer told a viewer to take a pass on Petsmart ( PETM) and pick up some Wal-Mart ( WMT), which he also owns for his
Cramer told a second viewer that he's not worried about the dividend at Kinder Morgan Energy Partners ( KMP) since the master limited partnership has more than enough cash flow to cover the payout.