Jim Cramer's Mad Money - April 20, 2005
Only thing that is working are great companies that just reported great quarters with terrific outlooks that just announced monster buybacks.
What you have to avoid is more important than what you have to buy
Cant be in the cyclical stocks today
Homebuilders are just too dangerous
Take advantage of market corrections
Beige book numbers today show the tightening probably isnt going to stop tightening in May
Dont wish that the Fed would keep tightening think their work is more done than people think
Disclaimer: This is my interpretation of Cramers comments, the show goes by quickly so I try and catch as many key words as possible for each pick. Accuracy is NOT guaranteed but is however strived for.
GOOG - GOOGLE - Think that their quarter will be so strong that it will resist the Fed's gravitational pull - Upgraded by Rohan today - I think that GOOG can earn a conservative $5 / share
CAT - CATERPILLAR INC - If you want to see how this turns out look at BDK - next week CAT will be as low as BDK is today
SGP - SCHERING PLOUGH C - Think the anti-cholesterol drugs will be terrific on Thursday when they report
SHLD - SEARS HLDGS CORP - Owns it, up $100 in a short period of time - people ring the register in a tough market. In 1980 a share of Berkshire Hathaway would have cost you a couple hundred dollars and turned out to be $80,000 25 years later. Eddie Lampert will make this work - buy 1 share, if it goes down another $20, buy another share. This is a special situation you need to take advantage of and buy it in the decline
JPM - JP MORGAN CHASE C - Possible place to be now - trampoline effect? - If CEO wanted to break up - Substantially higher price
MO - ALTRIA GROUP INC - If CEO were to decide to break the company up I have no doubt that the stock would trade substantially above 64
FFIV - F5 NETWORKS INC - Very expensive but very good stock
Lightning Round:
NAVR - NAVARRE CP - BEAR - in this tape we don't need that kind of stuff
BPL - BUCKEYE PARTNERS - Like the pipeline companies - would own this right through the cycle
UNM - UNUMPROVIDENT CP - Not a fan of disability insurance - you'd want to buy in a deflationary spiral - rather own AIG
CLX - CLOROX CO - BULL - just gotta own it
INSP - INFOSPACE INC - Mobile ring tones - super business - BULL
FFIV - F5 NETWORKS INC - Reported 17 nanoseconds ago - good but not good enough - ring the register - stock sees 43 before it sees 50
AAPL - APPLE COMPUTER - Not gonna sell it at 35 - if it gets back to 37.5 make a little sale for me
DRL - DORAL FINANCIAL - Looked through 280 pages of their financials and I HAD NOT A CLUE of what the heck they were up to - MAY BE THE SINGLE MOST OPAQUE COMPANY I HAVE EVER SEEN. BEAR.
TK - TEEKAY SHIPPING - shipping - BULL - like the shippers - also like Frontline (FRO)
IBM - INTL BUSINESS MAC - BEAR - swap out and get EMC
SGR - SHAW GROUP INC - Like Shaw Group - Like HAL more though - owns HAL
EENC - ENTERRA EN TR - Good - like all energy trusts, like PPT and Kinder Morgan
ET - E*TRADE FINL CORP - SCH and AMTD and ET are all too cheap to sell now, 1 down 3 up
WB - WACHOVIA CP - BULL - Buy it - trampoline, good yeild with cheap valuations
L - LIBERTY MEDIA CP - Not a John Malone fan - BEAR - don't like L
SNY - SANOFI-AVENTIS SA - BULL - prefer PFE though with its yield
CHK - CHESAPEAKE ENERGY - Natural gas - like the group, only OKAY now as we've had 4 straight up days
NCC - NATL CITY CP - Like this but not as much as PNC or even better JPM
UNT - UNIT CP - Driller - BULL - One part of the cyclical complex that I still endorse
WYNN - WYNN RESORTS LTD - Big Steve Wynn backer but like BYD, if WYNN bounces sell it
BA - BOEING CO - BULL - Boeing's for me
DHB - DHB INDUSTRIES IN - Been saying sell since 14, now we're at 7 - think it could go to 5.
THC - TENET HLTHCRE CP - Smoke is really thick there. Be in HCA best of breed
MSFT - MICROSOFT CP - ok - swap out of MSFT and get INTC
SFNT - SAFENET INC - pass
HDI - HARLEY DAVIDSON - Much too kind to CEO-elect, should have been tougher cause the stock is going lower
F - FORD MOTOR CO - DIVE DIVE DIVE
TSN - TYSON FOODS INC C - Warming up to Tyson, BULL - buyer here - first time on this show
DUK - DUKE ENERGY CP - Favorite utility
FNM - FANNIE MAE - Bear - no no no, how many billion in losses have they got under the carpet there?
ADSK - AUTODESK INC - Yesterday's story, don't like it here
ADBE - ADOBE SYSTEMS INC - Think people will coming out of the closet to say the MACR deal was okay - warming to it
ORB - ORBITAL SCIENCES - Bear - not for me
CAT - CATERPILLAR INC - RING THE REGISTER - my thesis will be right
STEM - STEMCELLS INC - BEAR - we sell STEM here
EBAY - EBAY INC - BULL - out of the penalty box, I like the stock
MKC - MCCORMICK & CO - penalty box - BEAR - bought too much vanilla at high prices - gotta wait a quarter now
ISRG - INTUITIVE SURG IN - Exactly in my sweet spot - small scale surgical products I like very much
AV - AVAYA INC - leader in VOIP You cant make money in voice over internet protocol though, too darn hard.
TWX - TIME WARNER INC - dont know when its going to move hold on to it too cheap it is a sin to sell something that is of value and Dick Parsons is going to realize value there.
DHI - D R HORTON INC - In this particular environment, I think the DHI CEO will be wrong and John Roque (who thinks a massive decline in the homebuilders is imminent) will be right.
Not enough good to buy today Could buy CFC, ZMH today Fundamentals vs. Technicals Technicals are a crutch that I dont want part of. There is no solace in looking at charts when they are all headed down. Charts are not hocus pocus ... Read
Three prominent bull markets right now: 1) Aerospace / Boeing 2) Oils When VLO buys PCO and the stocks both go up its a clarion call that this market is in major bull mode. 3) Google / Yahoo --> Paid search. Does not extend ... Read
Jim Cramer Comments: Cramers Market View: Everything a bull could possibly want has happened in the last hour or two: The markets flipped INTC and LU good quarters YHOO Jordan Rohan was completely wrong a beautiful quarter not too late Disclaimer ... Read
Show Starter: Major thing that happened today is that we didnt crash. When we (as in Wall Street) make the top corner of the New York Times you should be buying because things are so wrong that even the New York Times knows them. Crisis ... Read
Jim, I must say I enjoy your new show @ 6 pm.
I am broker with a high end regional firm and have been in the business since 1987 I was a stock jockey for much of my career and still am but after many big winners AND many big losers I have moved toward the higher quality (earnings)companies and have done quite well in the last few years. I also do alot of covered calls. My main point is that I can really indentify with your show, You combine one or two of my days into one hour. It is what I do all day long. I bet if you did a survey you would find a big part of your audience are guys like me. This says a lot because I stopped listening to the Financial WEATHERMAN quite a while ago except to see what the futures look like @ 5:45 am. My opinion for Mad Money is GET LONG ! BULL !!! Good Luck
I want to reiterate the this website has no association with Jim Cramer in any way shape or form. I'm merely someone trying to expose the world to his picks by summing up the TV show nightly.
