Bad piece of news from GM impacted TOL and LEN (homebuilders). TOL and LEN going up while F and GM turned down.

Fed blinking makes sense, not everything is nutty and irrational – TOL and LEN vs. GM and F proves it. They turned up just as GM and F bonds were downgraded. The Fed will not invert the yield curve if it wipes out F and GM. The Fed will “blink” because of GM.

When the Fed blinks buy the banks with the biggest dividends.

BUYING THE BEST OF BREED: I would rather buy Whole Foods (WFMI) above the market than Kroger (KR) below the market. When the best of breed sells at the same price multiple as something that’s not as good its just plain stupid. That’s the case right now with Proctor and Gamble (PG) and Clorox (CLX). CLX blames the weather and high commodities prices. It wasn’t great for PG either but PG made its quarter. SELL CLX. BUY PG.

There isn’t such a thing as a group of safe stocks anymore. You’ve got to buy the stocks with management that can handle the insanity.

Talking with Herb Greenberg:
MVL – Marvel Enterprises - Greenberg thinks getting into the movie business is too risky. Don’t even know what there interest rate is going to be on this loan. Cramer thinks that Greenberg is going to get people out of the stock right before Fantastic Four comes out. Cramer thinks Marvel Is more interesting and exciting with the movies, don’t back away now. Ring register when the stock sees 22 or 23.

Disclaimer: I AM NOT JIM CRAMER. I sometimes write the summary in first person because my brain doesn't quite move fast enough to process and type at the same time, so please excuse that. This blog has no affiliation with Jim Cramer, CNBC, or Mad Money. This is done for me and you to be able to better follow and track Cramer’s 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.

GM - General Motors Corporation - BULL
GT - Goodyear Tire & Rubber - Impressive quarter, maybe I was too harsh on them
TOL - Toll Brothers, Inc. - Going up
LEH - Lehman Brothers Holdings Inc. - Going up
C - Citigroup Inc. - Buy the banks
JPM - JPMorgan Chase & Co. - Buy the banks
BAC - Bank of America Corporation - Buy the banks
SGP - Schering-Plough Corp. - If you have to be in one drug company this is where to be
INTC - Intel Corporation - Said positive things about demand. What's good for INTC is good for INTC and no one else. Like INTC here
DRI - Darden Restaurants, Inc. - BULL - turn in Red Lobster and Olive Garden is for real
UTSI - UTStarcom, Inc. - Stock is blowing up - doesn't stop till 7, maybe 6?
CLX - The Clorox Company - Sell
PG - The Procter & Gamble Co. - Buy
SINA - SINA Corporation - Bad quarter. Dive, dive. Get out of it.

Lightning Round:

GOOG - Google Inc. - Bull - $280 by year end with $7 earnings and half the multiple of Ebay and Yahoo (40x)
AX - Archipelago Holdings, Inc. - Ring the register, up 10 straight points
WPTE - WPT Enterprises, Inc. - Bear - bad quarter when the whole country is crazy about poker
SHOP - Shopping.com Ltd. - pass
WIRE - Encore Wire Corporation - ring the register because of the TYC numbers
KEY - KeyCorp - BULL - Own when fed is blinking
LLL - L-3 Communications Hldgs. - BULL - Below 70 lets buy some
PKS - Six Flags, Inc. - PIG - not a six flags guy
NLY - Annaly Mortgage Management - BULL - like the CEO, think Smith Barney is going to have to upgrade it
NOC - Northrop Grumman Corporation - BULL - like the stock
INTU - Intuit Inc. - BULL - boring but not bad
PBI - Pitney Bowes Inc. - BULL - Boring companies can make you money
PDCO - Patterson Companies, Inc. - BULL - easier when they were dental and not Patterson Companies, sounds like they want to be something big now
XRAY - DENTSPLY International Inc. - like it too
FSL - Freescale Semiconductor, Inc. - ring the register
RFMD - RF Micro Devices, Inc. - Don't want to own
SWKS - Skyworks Solutions, Inc. - Don't want to own
TQNT - TriQuint Semiconductor - Don't want to own
AQNT - aQuantive Inc. - Internet Ads - BULL - normally only want best of breed but internet ads are here to stay. Thing internet advertising will go from 3% to 6% of total ad spending in 18 months.
WB - Wachovia Corporation - BULL - sweet spot
ALL - Allstate Corporation - like it, Met life, HIG, Aaon - BULL
AKAM - Akamai Technologies, Inc. - dumb to own Akamai here - BEAR
DIS - Walt Disney Company, The - BULL - like Iger, hoping Disney gets closer to PIXR
ERTS - Electronic Arts Inc. - Dive. Going lower.
GME - GameStop Corp. - better than ERTS
SPG - Simon Property Group, Inc - get into VNO instead
TTWO - Take-Two Interactive Sft. - BULL - If I were President I'd pull Grand Theft Auto from the stores. In the mean time its selling like hot cakes.
INTC - Intel Corporation - Own it personally - BULL
FFIV - F5 Networks Inc. - ring register a little - margins are going to come down
PLT - Plantronics, Inc. - Bad quarter. BEAR - love headsets but not the stock
ERJ - Embraer-Empresa Brasileir de Aero. (ADR) - Don't need Brazilian stocks - get BA
TXRH - Texas Roadhouse, Inc. - Always like to go to the restaurant before investing - haven't done so yet - pass
VCLK - ValueClick, Inc. - BEAR - sell, terrible quarter
EAT - Brinker International, Inc. - get DRI instead
AA - Alcoa Inc. - BEAR - TRIPLE SELL
AMAT - Applied Materials, Inc. - Sell it now
KLAC - KLA-Tencor Corporation - get out this afternoon
NVLS - Novellus Systems, Inc. - get out this afternoon
ATPG - ATP Oil & Gas Corporation - Bull - Think these co's are going to get bought by the BP's
MXO - Maxtor Corporation - ring register
CNC - Centene Corporation - get UNH

CPKI - California Pizza Kitchen - Greenberg: Don't like that they bought 75% of LA Foodshow restaurant. Cramer thinks that’s a problem but that the stock is still good.
PFE - Pfizer Inc. - Talk with CEO. Feel like drug stocks are about to come into buying, prefer SGP but I'd take PFE over any cyclical stock right now.
LAZ - Lazard, Limited Class A - Not done going down. At 19, 18 maybe I'll turn bullish. At 24, no way.
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