Cramer’s Market Summary:

Headline takeaway is that rumor’s of hedge fund woes caused the market to go down. People are taking their money away from hedge funds that owned the GM preferred. And to hedge it they were betting against GM common. Hedge funds have made it easier for investors to withdraw money.

Brokerages are getting crushed – GS, BSC, LEH fell on hedge fund rumors, these stocks are going to be down again tomorrow and then the next day (Thursday) the Journal (Wall Street Journal) is going to write about it. Then Thursday afternoon – BULL – you gotta buy.

Let’s replay the tape from Sept. 15 – Oct. 8 of 1998 – the last time we had serious redemptions. Each day there is some clueless rich guy who sees he’s getting killed and takes his money out. This isn’t anywhere near Long Term Capital of 1998 because I’m hearing single digit losses. Could be more like April of 2000 where it took 7 days for a couple of big hedge funds to go belly up because they were betting against the market. This is day 1, my take is that by day 3 or 4 all that I say will be in the market. My favorite stock to buy on this is Bear Stearns (BSC). THURSDAY IS THE DAY TO BUY BROKERS (MID-AFTERNOON)

AIG:
When will these AIG board members wake up? AIG needs a good government guy. Right now AIG is operating with a CEO who was hand picked by the disgraced former CEO, that ain’t gonna fly with the Spitzer’s of the world. You are going to see story after story about lower downs no one doing the right thing and these stories will erode the confidence of the customers and drive the stock down, that’s just the way it happens. So the saga goes on and the stock goes back to the 50s. It gonna move up until the new CEO leaves. 3 down, 10 up, same as before I like the risk reward. BOTTOM LINE – If I were you, when the heat gets really bad and the stock goes back to 50 – BULL – do it again because by that time Sullivan will be gone.

Insurance:
I like anything in the plain vanilla insurance world, I do not like reinsurance, because the regulators don’t like reinsurance and I always like to be on the side of the regulators.

Cramer talks with Barry Diller, Chairman and CEO of IAC / InterActive Corp:
Barry Diller is invested equally in Expedia and IAC / InterActive. Diller: If you are going to be out there setting expectations you would be crazy not to be conservative. Cramer: When Mr. Diller built this company he initially talked about the great growth of the internet and how he was going to take his share. He created an analyst expectation that was unrealistic and it hurt the stock. My belief – these two companies are worth more split up then they are together. BULL. The floor is put it by the buyback which he just confirmed is going to continue. So let’s recap: Stock could be down 1 and be up multitudinous when the company splits up. That’s the kind of risk reward that you should own. My preference, just so you know, I like the Expedia travel business.

Beverage stocks:
PEP for retirement – good growth, dividend, buyback, excellent management.
JSD.V– speculative, if you want to speculate in beverages go with Jones Soda

Cramer talks with Jeff Clarke, COO of Computer Associates (CA):
Cramer’s take: Jeff Clarke knows what the heck he’s doing. If you want to have exposure in software, this would be the one to be in. It’s not my area that I like but if you had to be in one this one seems cheap and better.

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.

CSCO - Cisco Systems, Inc. - Stock is stuck at 18- don't think its gonna get free from that anytime soon
DWA - DreamWorks Animation SKG, Inc. - Bottom not here yet, maybe bottom tomorrow after analysts downgrade - buy after that because they trade on future movies and I think they are alright - BULL
DAL - Delta Air Lines, Inc. - What is the value of Delta's common stock? They can't pay American Express or GM unless those two companies agree to a restructuring, they could put the company into bankruptcy anytime they want.

Lightning Round:

AAPL - Apple Computer, Inc. - I lost interest in Apple the moment I felt everyone had an iPod
PER - Perot Systems Corp. - Not for me - BEAR - I don't like that whole group - don't like anything involved with large scale software
RMK - ARAMARK Corporation - for me - BULL - own the stock - this quarter last yr they had NHL hockey, they don't have it now, don't be upset when you see a little decline in that revenue line for hot dogs
FORD - Forward Industries, Inc. - People like this stock, this is a vinyl, leather nylon stock - I like it though
PPG - PPG Industries, Inc. - I like the stock - BULL - very good chemical analysts like it - cyclical stocks are under some pressure here but that's one of the better ones
CKCM - Click Commerce, Inc. - BEAR - WAY too speculative for me
BK - The Bank of New York Co. - Boring bank - not my favorite - swap out and go into CBH
CBH - Commerce Bancorp, Inc. - BULL - didn't skip a beat today
PDX - Pediatrix Medical Group, Inc. - Spikes when Renal Care got the bid last week - I like PDX, I like DGX too
DGX - Quest Diagnostics Incorporated - like this too - in the niche healthcare business that is continuing to go
FBR - Friedman, Billings, Ramsey Group, Inc. - reserving judgment until I meet with Mr. Billings after the show
AYE - Allegheny Energy, Inc. - one of the few energy stocks that I don't really care for - Ring the register - swap into DUK which is getting pummeled because of its buying Cinergy
CL - Colgate-Palmolive Company - I think people are tired of the CEO - BEAR
PG - The Procter & Gamble Co. - BULL - thumbs up
SE - 7-Eleven, Inc. - This is a sleeper franchise, if I had to start it all over again I think I'd be a franchisee of 7-11. BULL - I also like their pre-paid phone card business
HAL - Halliburton Company - BULL - own it personally - upside 54 a share for Halliburton
ASO - AmSouth Bancorporation - I like so many banks, but that one is way too risky for me - If you like this get PNC
GPC - Genuine Parts Company - Had it with the auto sector - BEAR
VCLK - ValueClick, Inc. - No, miserable quarter - BEAR - total let down - how can they have such a crummy quarter when the net is so on fire - swap into YHOO or GOOG
TEVA - Teva Pharmaceutical Industries Ltd (ADR) - Don't like the generic business - BEAR - not gonna bless it. Instead buy JNJ, SGP or PFE
PTR - PetroChina Company Limited (ADR) - I like PTR, but why not buy UPL that's a good one
UPL - Ultra Petroleum Corp. - BULL - that's a good one
APC - Anadarko Petroleum Corporation - BULL- 2nd favorite natural gas play after ECA which I own personally
YELL - Yellow Roadway Corp. - Not a good time to buy - too cyclical for me, I'm worried about the fed and that stock is in the cross hairs - ring the register
CAI - CACI International Inc - This is a great outsourcing play on the army and us government and I like it - BULL
F - Ford Motor Company - not for me - BEAR
GRP - Grant Prideco, Inc. - I like HAL more but this is a good stock
ERF - Enerplus Resources Fund (USA) - Why do you need this when you can buy encana (ECA) which is cleaner, cheaper and better?
CATY - Cathay General Bancorp - People telling me to look at this bank, a Chinese banking play, still can't get my arms around the accounting - seems like its not an expensive stock, I like traditional banking though
LGF - Lions Gate Entertainment Corp. (USA) - Very hard one for me to get - at 7 I like the stock but I'm not gonna favor it now
HSY - The Hershey Company - BULL - incredibly well run, I like HSY - very good sector to go in when the Fed has decided to wreck the economy
PWI - PrimeWest Energy Trust (USA) - Very good - favorite is BPT though
BPT - BP Prudhoe Bay Royalty Trust - Favorite energy trust
PQUE - PetroQuest Energy, Inc. - If you want Louisiana look at merged combination between Magnum Hunter and Cimerex (XEC)
BA - Boeing Company, The - Like this better than NOC, LMT - BULL - almost all aerospace and then a little defense
ING - ING Group N.V. (ADR) - BULL - not an expensive stock, nothing the matter with the Dutch
RHAT - Red Hat, Inc. - Way too dangerous - NO
RD - Royal Dutch Petroleum Company (ADR) - Not as bad as it used to be like BPT more if you have to stray overseas
WMT - Wal-Mart Stores, Inc. - Rather have you buy Target
TGT - Target Corporation - BULL
SINA - SINA Corporation - No no no - SELL SELL SELL - and everything else coming out of China that is not made in America - stay away from China.


MET - MetLife, Inc. - Insurance other than AIG that Cramer likes
HIG - Hartford Financial Services - Insurance other than AIG that Cramer likes
ALL - Allstate Corporation, The - Insurance other than AIG that Cramer likes
WMG - Warner Music Group - I don't want you in this deal either. Keep track of how I do on this stuff (IPO's) because I'm gonna be better than you think.
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