Crystal Ball

People may be thinking Cramer is backing off that SHLD he’d been talking up so much. Have I backed off? TRY THIS!!! My crystal ball says this stock is done going down RIGHT NOW (Shows that he has written the letters S-H-L-D on the outside of both fists, screaming). This is the number three retailer in the country. It is one tenth the size of number 1, Wal-Mart. It’s half as big as number 2, Target. But it has so much more upside than those guys. There is a ridiculous disparity in valuation when it comes to SHLD.

How bout this, how bout the idea that the real estate hasn’t even begun to be valued. Do you know that there’s only been five weeks, five weeks of a combination between Sears and Kmart? Who the heck knows how much Eddie Lampert is gonna sell off? Do you know there are Kmart’s next to Sears all over this country? That’s valuable real estate. Valuable real estate that hasn’t been sold yet. We don’t have any champions any more because we know that Gary Boler the UBS champion of the stock, he’s left. So what we have are a lot of people bailing because they don’t understand the story. They were tagalongs who never understood the greatness of this story. They don’t understand the real estate play, the earnings surprises that could come down the road from Sears Essentials. They don’t understand the mastery of the combination but most of all they don’t understand the emulation of Warren Buffett.

Most of you say, Cramer you’ve been using that example of being able to buy Berkshire Hathaway back in 1980 at $200. Well it’s at $84,000. You’re saying well obviously Jim we’re not catching Berkshire Hathaway, this isn’t that at 200, Sears has already moved a hundred points since you’ve been flapping about it. Let me tell you something, had I told you to buy Berkshire Hathaway in 1986 at 2500 dollars would you say no, not me, nuh uh, too late? 2500 went to $84,000.

Bottom line is: Maybe this is Berkshire Hathaway, SHLD, maybe is Berkshire Hathaway in 1986. SHLD right now, at $138 bucks, with all of the sunshine soldiers, summer patriots, the jokers finished selling down 20 points from its high, that’s when you gotta strike!! I say ALL ABOARD ALL ABOARD ALL ABOARD.

Q: SHLD seems to be going from 130 to 150 on a regular basis, if I can’t stand the volatility should I get TGT instead?
A: First off, SHLD has only made that trip one time, it’s now pulled back for the reasons I just gave. Here’s how you approach this. Buy one share, two shares of SHLD. If I wanted you in TGT you’d see TGT on my hands, not SHLD. This is about being a part of something that I think could be one of the great stories. I have never compared anyone, anyone to Warren Buffett ever, other than this guy Eddie Lampert. He started the same day as me at Goldman Sachs was my vicious competitor for many years and I am now proud to call a friend. I saw some of the emails saying you’re just currying favor with Eddie. One of the great things about my stage in life is that I could care less whether Eddie likes me or not. Sure he’s a good guy but I’m not about making friends on the show. I’m about making money and I think you can make money in SHLD.

Q: Would you buy HD and LOW for the hurricane season given this hurricane season is predicted to be as bad or worse than last years?

A: I’m reminded of the way I used to do things at my hedge fund. What company has all that stuff that HD and LOW has but is undervalued vs. those and come back again to the SHLD.

LOW has fewer stores than HD, more room for expansion. I’m gonna default to LOW because there are more LOW to be put up in this country than there are Home Depots.

The bottom line is: Lowe’s is better than Home Depot but Sears Holdings is better than both.

Q: Will all the large discounts sales by the low end retailers compress there margins? IF so are they going to be able to make it up in volume?

A: The low end retailers that I think about, WMT, Family Dollar, Dollar General, these things are not where I want you to be. I like the highest end more than I like the low end. I would not even think for a moment that the Family Dollar’s, Dollar Generals are going to come back in this particular cycle. My crystal ball says you gotta stick with the ears. If you want the high end you can still go with the Nordstrom’s. But you don’t want to mess with the low end cause the low end hasn’t been working and I don’t think is gonna work.

Is Sears (SHLD) a better value play right now or should I be in it for the growth?

A: I would tell you that I don’t want to pigeon holed into thinking that the stock’s expensive. If they can earn $10 next year it’s obviously not expensive. If they earn $6 it’s expensive. I think what you have to recognize is that there’s an improving balance sheet, there’s gonna be real estate sold, a lot of moving parts. You want to own this stock for the whole mosaic that is Eddie Lampert, Sears Holding and the rock-em sock-em $140 stock that has bottomed right here, right now.

Quickies:

Altria (MO): I think you should be buying Altria right into the 65 level where it probably ends up on Friday, options expiration.

Boeing (BA): Winning orders hand over fist, we know that. People have gotten tired of the BA story, don’t you get tired of it. As that stock gets down to 60, pick some up. BULL

Apple (AAPL): Very little pin action of the Best Buy quarter where they said mp3 was selling well. I think Apple should have been up $2 smackers. I think the pin action that we should have had today, comes tomorrow.

Diabetes and Sleep Apnea

1/3 of Diabetics also suffer from sleep apnea. 80-90% of people with sleep apnea go undiagnosed. This discovery will most likely lead to a lot more people getting treatment for sleep apnea. Let’s do some arithmetic: 18 million Americans with Diabetes, 6 million of them also have obstructive sleep apnea. Of the 6 million, 80% most likely undiagnosed. That’s 4.8 million people who IF they have responsible doctors, will be diagnosed with obstructive sleep apnea in the near future.

ResMed (RMD) and Resperonics (RESP) make CPAP – Continuous Positive Airways Pressure Machines. RESP is the stock that comes up more often than almost any other lightning round stock. These are the best place to make a lot of money here. They have now identified an enormous new market. Every time someone is diagnosed with diabetes they better be screened for sleep apnea after this news. Its news and people didn’t react cause they be sleeping. The CPAP machine has been found to help treat diabetes in cases where it occurs with sleep apnea. All this was published in today’s Journal.

RESP and RMD have not moved on today’s data. You would think that this news would send RESP – BULL – and RMD – BULL – up huge wouldn’t you? RESP is up a few pennies, RMD down a few cents on what should be really big news. Maybe investors think they are overvalued because they both trade at over 30x earnings. That’s a misdiagnosis if I’ve ever heard one.

Q: Which firm should I buy in big pharma-biotech partnership?

A: Too many of the biotech companies that I see out there are one, two, product companies. When things go awry you really get hammered, look at Elan. I think that if you want to own a biotech company, own the best, Genentech (DNA). We always want to own the Best of Breed on Jim Cramer’s Mad Money.

I think the trade to make is RESP and RMD.

Good news after bell on Dean Foods (DF)

My advice to you, do not ring the register. DF is very very much in bull market mode and going higher.

Mad Money Edition Chutes and Ladders

Remember how chutes and ladders works? You can take the time going up the board to make the big money, or sometimes you go up very quickly, sometimes you go up very quickly.

FFIV: Almost near the top of the board, then CFO quits – down the chute

GOOG: Been nothing but up, analyst from Susquehanna cuts numbers this morning. Is GOOG going down the chute all the way on the number cut far or small? If Anthony Noto agrees with Mary Ann Wolk it will be right back to here (bottom of chart) a little too dangerous.

WFMI: Two downgrades last week, that looked like the total shooting match right? Wrong. Just two chutes going back up.

BBY: Was at bottom, monster quarter took it boom – right up the ladder. I think it still goes higher and ends up at the very top of the board.

Stock can also go lower quickly because of “Chutes”

Bottom line is: I like WFMI to go back to the $120’s I hope you bought it like I told you. BBY, you gotta stay long it. FFIV, very very questionable here. GOOG – take some profits.

Cramer talks with Tom Wiggans, CEO of Connetics (CNCT):

Cramer: Connetics just had some bad news from the FDA. Can you describe the bad news and tell me how quickly its going to be remedied.

Wiggans: First of all, what we received is a non approval letter.

Cramer: I understand this Velac is an acne drug but is it true that it cause cancer while it knocks off the acne?

Wiggans: While actually no. We believe the clinical data, the actual efficacy of this product in kids with acne is some of the strongest clinical data of any product ever submitted. What we found is a potentially aberrant finding in a gene altered mouse. It’s an arcane bit of science and that’s what we need to sit down with the FDA and look at.

Cramer: Would we be worried that the FDA will say listen, acne its real bad but not life threatening so therefore we really gotta make these guys go through the hoops – take ya 4-5 years to get things straightened out.

Wiggans: The FDA is asking good questions, they certainly always have safety in mind, n o doubt about that. However, I think this really comes down to interpreting what we saw in some of our studies and putting that into context of what is clearly, we believe, a real advance in the treatment of acne.

Cramer: DO you guys have enough money to kind of go through the siege here?

Wiggans: Well that’s a really good point. Connetics is a lot different than other early stage pharma or biotech companies. We already have 4 products on the market. Even assuming our products, Velac does not come on the market this year and many of the analysts have taken it out of their model, our revenues and earnings are still projected to grow approximately 30% ‘05 over ‘04 so we’re still in great shape.

Cramer Summary: Let me give you my take on this. I happen to like stocks that have just been cratered where they got more than one product. He does have more than one product. The sizzle though, gone. I think its going to take 2 qtr’s before this stock regains its stride. Therefore its neither Bull nor Bear – its strictly on the watch.

Cramer talks with Syneron Medical (ELOS) President (Syneron N. America), Domenic Serafino

You think Acne’s bad? They tell me the cellulite game is really ready to be busted.

Cramer: Tell us about this approval thing you got from the FDA on this cellulite issue.

Serafino: The company is very excited about the clearance we received yesterday from the FDA for our product called the VelaSmooth device. It’s a device that treats predominantly cellulite. We also noted that we were getting significant circumferential changes in the females that we were treating. We believe the early interest in this product is going to lead to some very good movement.

Cramer: Can you tell me where the product is already being used and what the uptake is?

Serafino: The product has already been cleared and sold in Canada, Europe and Australia. The product typically has been very well received in those markets.

Cramer: Are you seeing people go to Canada, if I lived on the border, Americans who would really like to have it to be used here?

Serafino: We did hear reports that people were crossing the borders and asking for facilities in Toronto to book them in. Unfortunately those facilities were booked out 3-4 months ahead of time. It was difficult and now that we have clearance in the US we believe that certainly our customer base has been very interested in getting the devices.

Cramer: You don’t have to wait for an opinion from me. BULL – This is a mass product that I’ve been waiting for the approval. What is that circumference thing? Someone give me a phone call and tell me what that means. I think it means… money.

DANGER ZONE:

Warner Music (WMG): They announced, not gonna give quarterly or annual financial guidance. SELL SELL SELL. Then they announced they will not project the album release schedule. SELL SELL SELL. Then they said that according to Sound Scan, which is some industry Bible, US industry wide recorded music fell 7% but WMG was only down 3%. Well there’s a raison d’etre. SELL SELL SELL SELL SELL SELL. I hope I made myself clear.

How come you don’t own GOOG instead of YHOO given you say GOOG is best of breed?

I believe I wanted to get in early in GOOG and I couldn’t because I kept talking about it and talking about. If I mention a stock on this show or my radio show I gotta wait 5 days and you know I mention GOOG almost constantly. I was frozen. Yes I wish I had bought GOOG, yes I wish I had swapped out but YHOO’s been pretty good too. As far as I’m concerned they are both winners, there’s room for both in this world.

Land Banks

Better late than never, I see guys starting to glom on to my land bank theory. I love land banks. SHLD is a retail land bank where there could be many sales and many good pieces of news coming. Below $140, not too late.

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. If you'd like to contact Jim Cramer email him at madmoney@cnbc.com, or call 1-800-743-CNBC. This summary is done for you and I to be able to better track and follow Jim Cramer’s comments. The show goes by quickly so I try and catch as many keywords as possible for each stock because of this, ACCURACY IS NOT GUARANTEED but is however strived for.

NOTE: I've added today's closing price to each of the stocks listed below. The "m" next to the stock symbol links to the stock on moneycentral.msn.com while the "y" does the same to finance.yahoo.com

SHLD - m y - 138.76 - Sears Holdings Corporation - BULL - see lengthy comments earlier in show
LOW - m y - 58.72 - Lowe's Companies, Inc. - LOW better than HD but SHLD better than both
HD - m y - 40.03 - Home Depot, Inc. - LOW better than HD but SHLD better than both
WMT - m y - 49.68 - Wal-Mart Stores, Inc. - These are not where you want to be - see comments earlier in show
FDO - m y - 24.98 - Family Dollar Stores, Inc - These are not where you want to be - see comments earlier in show
DG - m y - 20.69 - Dollar General Corp. - These are not where you want to be - see comments earlier in show
MO - m y - 66.95 - Altria Group, Inc. - I think you should be buying Altria right into the 65 level where it probably ends up on Friday, options expiration.
BA - m y - 62.93 - Boeing Company, The - Winning orders hand over fist, we know that. People have gotten tired of the BA story, don’t you get tired of it. As that stock gets down to 60, pick some up. BULL
AAPL - m y - 36 - Apple Computer, Inc. - Very little pin action of the Best Buy quarter where they said mp3 was selling well. I think Apple should have been up $2 smackers. I think the pin action that we should have had today, comes tomorrow.
RMD - m y - 61.08 - ResMed Inc. - News in the journal was good today - BULL - see lengthy comments earlier in show
RESP - m y - 35.32 - Respironics, Inc. - News in the journal was good today - BULL - see lengthy comments earlier in show
DNA - m y - 80.2 - Genentech, Inc. - BULL - always want to own the best of breed

The Lightning Round:

RSH - m y - 25.23 - RadioShack Corporation - BEAR - no way you got BBY
TSFG - m y - 26.85 - The South Financial Group - You put me to sleep
DD - m y - 46.93 - E.I. DuPont de Nemours - Little too cyclical, I'd ring the register. I want to buy below 43
MET - m y - 43.37 - MetLife, Inc. - BULL - That guy is fantastic, two thumbs up, quarters been great, numbers been great
DTE - m y - 47.83 - DTE Energy Company - Why do you need that when you can get DUK. Swap out and into DUK
NVDA - m y - 26.91 - NVIDIA Corporation - DO you buy down $1.60? No No no. We don't like NVDA. It was a first quarter play that is done
NYB - m y - 17.65 - New York Community Bancorp, Inc. - No, we like CBH. We like service and we like growth, wake up and smell the coffee
PTEN - m y - 28.1 - Patterson-UTI Energy, Inc. - I like pten, I think its excellent. BULL
PG - m y - 54.39 - The Procter & Gamble Co. - DO like it
LTD - m y - 21.84 - Limited Brands, Inc. - Don't want to touch it
NXL - m y - 27.63 - New Plan Excel Realty Tr. - I'm gonna send you to NLY, I like that one more - BEAR
CAND - m y - 6.4 - Candie's, Inc. - BEAR - no way no how, think NKE, think WWW
MAY - m y - 40.49 - The May Department Stores Company - Ring the register, roll it into Sears, not an arbitrageur
FO - m y - 88.4 - Fortune Brands, Inc. - Norm Wesley knows how to run a company BULL - what does golf have to do with booze, cabinets? I don't know - it does work though.
EPL - m y - 24.6 - Energy Partners, Ltd. - Bull - that's for me that's for me.
HRB - m y - 56.75 - H&R Block, Inc. - What a monster qtr HRB had, monster monster monster. I should have had that myself and I missed it but its probably not too late
MOT - m y - 18.2 - Motorola, Inc. - What's that still doing at 18? It's a 20 stock masquerading as an 18 stock. That's going higher
PMCS - m y - 8.65 - PMC-Sierra, Inc. - Don't pull the trigger - BEAR
RFMD - m y - 4.83 - RF Micro Devices, Inc. - Sell sell sell
MU - m y - 10.76 - Micron Technology, Inc. - sell sell sell
EMC - m y - 14.38 - EMC Corporation - BULL - excellent, I'd be a buyer of it
EBAY - m y - 37.09 - eBay Inc. - BULL - okay, I'm now sanctioning EBAY. As a matter of fact I gotta tell you, EBAY is now so cheap and I was worried about it.
GOOG - m y - 278.35 - Google Inc. - be careful Miriam Wahl cut numbers - more in a minute
ACS - m y - 51.23 - Affiliated Computer Services - BEAR - not so great
DE - m y - 67.06 - Deere & Company - Cheap - BULL - little too cyclical for me but I think the qtr's going well I would own Deere
TPP - m y - 41.02 - TEPPCO Partners, L.P. - BULL - like the business, consistent nice 6% yield on the stock I'll endorse it
PVX - m y - 10.29 - Provident Energy Trust (USA) - Even better yield than TPP - BULL - also very good
NOK - m y - 16.98 - Nokia Corporation (ADR) - I think MOT is catching them. It's just a matter of time. NOK Is just a river in Finland where I'm from
NEW - m y - 52.72 - New Century Financial Corporation (REIT) - You want big dividend go with NLY
TEF - m y - 49.71 - Telefonica S.A. (ADR) - Look further south, AMX BULL on AMX
AMX - m y - 59.05 - America Movil S.A. de C.V (ADR) - Bull
MYG - m y - 15.34 - Maytag Corporation - That stock is about to get another bid - BULL
MCK - m y - 43.03 - McKesson Corporation - Been so wrong about MCK, I'm embarrassed to continue to hit the SELL SELL SELL
PKTR - m y - 12.61 - Packeteer, Inc. - BEAR - BEAR - poor man's ffiv
GLW - m y - 16.34 - Corning Incorporated - BULL - all about lcd. If fiber ever comes back you see 20 pronto.
VOD - m y - 24.51 - Vodafone Group Plc (ADR) - See AMX.
STJ - m y - 40.37 - St. Jude Medical, Inc. - I like STJ, after GDT I think it’s the next one to go. I'd be a buyer of STJ, a buyer
ASVI - m y - 38.97 - A.S.V., Inc. - ATV vehicles? I call them all torture vehicles cause I burned my leg in Mexico. I'm not for those.
GM - m y - 35.87 - General Motors Corporation - Still goes higher. The man, Kerkorian is the guy to bet with BULL
BDK - m y - 87.63 - The Black & Decker Corporation - Just kinda goes up every day. BULL - think the qtr is really en fuego I say buy it
WGL - m y - 33.34 - WGL Holdings, Inc. - BEAR - go to DUK instead
CFC - m y - 39.01 - Countrywide Financial Corporation - Ring the register - buy it back at 35, don't pull the ticker here
LUV - m y - 14.33 - Southwest Airlines Co. - BEAR - don't want to touch that stock. If you have to own an airline stock, go to another show
IVX - m y - 20.68 - IVAX Corporation - SELL SELL SELL SELL SELL SELL SELL PERSONAL FOUL
ELY - m y - 13.07 - Callaway Golf Company - BEAR - go to FO instead
APCC - m y - 23.91 - American Power Conversion Corporation - You want power backup - ECA, natural gas - APCC is BEAR

WFMI - m y - 118.62 - Whole Foods Market, Inc. - like WFMI to go back to the $120’s I hope you bought it like I told you
BBY - m y - 67.8 - Best Buy Co., Inc. - , you gotta stay long it
FFIV - m y - 48.7 - F5 Networks Inc. - very very questionable here
GOOG - m y - 278.35 - Google Inc. - take some profits.
ELOS - m y - 31.74 - Syneron Medical Ltd. - BULL - see conversation with Syneron North America President
CNCT - m y - 16.3 - Connetics Corporation - Strictly on the watch, neither bull or bear - see comments in text sectionmortgage calculator