Jim Cramer's Mad Money - June 22, 2005
A couple of notes on formatting: In the past I've written the show up without any comments of my own. The commentary below includes both my thoughts and Cramer's. You should be able to differentiate between the two but if you are ever confused let me know and I'll try to clarify it further in the future.
Top of the show
Cramer thinks that there is a tech rally coming and it is going to be big. The knuckles indicator is in full force tonight as he had MSFT on his right hand and CSCO on his right hand. Recall that the other stocks hes had on his knuckles are GOOG and SHLD, two stocks that seem to have done okay for themselves. His message isnt so much about MSFT and CSCO as it is about tech itself as hes soured on MSFT and CSCO for so long.
Cramer saying, I want you to buy these stocks because my neck is out there telling you to buy them. Is it really that much of a stretch to predict a tech rally when the NASDAQ is sitting just under major resistance at 2100? A high volume close above that level could be huge for the market and tech here.
Mutual Funds
Cramer notes that we need to stop buying the mutual funds and start buying the stocks of the mutual funds. He then cites what I believe is an interesting statistic: $1,000 invested 7 years ago in Legg Mason (LM) the stock has become $4,745. That same $1,000 invested with Bill Millers Legg Mason Value Trust, the fund that has beaten the S&P every year, seemingly forever, becomes only $1,975.
Even the best funds cant beat solid long term stocks over the longer term. There isnt a fund out there that can come close to the returns you would have had in MSFT throughout the 90s. The lesson here: Although diversification is important, if you are looking for truly outsized returns it was very difficult to beat a long term winning stock.
Retail
Stacy Pak is one of Cramers favorite retail analysts.
Gary Balther of Credit Suisse First Boston likes ODP, CC, TSA, SHLD ($180 price target)
Disclaimer: This blog has no affiliation with Jim Cramer, CNBC, or Mad Money. If you'd like to contact Jim Cramer directly, 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 Cramers comments. 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. Clicking on the symbol itself takes you to a Google search of the website for that symbol.
"Bull", "Bear", "Best of Breed" and other marks can be inferred and don't necessarily need to be stated directly for me to record them as such.
Category notes:
AID Cramer: A stock mentioned during Am I Diversified by Cramer
Feature: A whole segment of the show was devoted to this topic
Guest: Cramer has a guest on the show specifically to discuss this stock
Thought: A Cramer initiated random thought on a stock
Top of Show: Stock mentioned in the very first topic of the show
AID Cramer - CBH - m y - 30.35 - Commerce Bancorp, Inc. - BULL - Cramer Owns It -
AID Cramer - JPM - m y - 36.26 - JPMorgan Chase & Co. - BULL -
AID Cramer - BAC - m y - 47.07 - Bank of America Corporation - BULL -
AID Cramer - INTC - m y - 27.11 - Intel Corporation - BULL - Cramer Owns It -
AID Cramer - MSFT - m y - 25.07 - Microsoft Corporation - BULL -
AID Cramer - CSCO - m y - 19.8 - Cisco Systems, Inc. - BULL -
Am I Diversified? - JOE - m y - 81.4 - The St. Joe Company - Cramer Owns It -
Am I Diversified? - DGX - m y - 53.6 - Quest Diagnostics Incorporated - Ring The Register -
Feature - LM - m y - 85.2 - Legg Mason, Inc. - BULL -
Guest - CELG - m y - 39.52 - Celgene Corporation - BULL - Robert Hugin, CFO, joined Cramer on the show
Lightning Round - MAT - m y - 18.54 - Mattel, Inc. - TRIPLE SELL -
Lightning Round - MVL - m y - 20.4 - Marvel Enterprises, Inc. - BULL -
Lightning Round - WLDA - m y - 10.78 - World Air Holdings Inc. - Ring The Register -
Lightning Round - ROST - m y - 29.29 - Ross Stores, Inc. - BULL -
Lightning Round - GERN - m y - 7.63 - Geron Corporation - TRIPLE SELL -
Lightning Round - EC - m y - 28.95 - Engelhard Corporation - BULL -
Lightning Round - PRU - m y - 65.61 - Prudential Financial, Inc - BULL -
Lightning Round - DCEL - m y - 4.68 - Dobson Communications Corp. - Ring The Register -
Lightning Round - FCEL - m y - 10.28 - FuelCell Energy, Inc. - Ring The Register -
Lightning Round - CZN - m y - 13.24 - Citizens Communications - BEAR - Ring The Register -
Lightning Round - NSTK - m y - 13.08 - Nastech Pharmaceutical - BEAR - Ring The Register -
Lightning Round - HNZ - m y - 35.69 - H.J. Heinz Company - BEAR - Get into GIS or DF
Lightning Round - MXT - m y - 14.05 - Metris Companies Inc. - BULL -
Lightning Round - ADBE - m y - 30.56 - Adobe Systems Incorporated - BULL -
Lightning Round - CP - m y - 35.62 - Canadian Pacific Railway Limited (USA) - Ring The Register - don't like the rails or truckers
Lightning Round - BDX - m y - 52.15 - Becton, Dickinson and Co. - BULL -
Lightning Round - ACDO - m y - 45.01 - Accredo Health, Inc. - BULL - be careful, go up when President speaks and then goes down when he's done
Lightning Round - BWLD - m y - 34.25 - Buffalo Wild Wings - BEAR - Ring The Register -
Lightning Round - ACL - m y - 109.4 - Alcon, Inc. - BULL -
Lightning Round - AV - m y - 8.72 - Avaya Inc. - BULL -
Lightning Round - DRL - m y - 15.17 - Doral Financial Corp. - BEAR - TRIPLE SELL -
Lightning Round - EBAY - m y - 36.39 - eBay Inc. - BULL -
Lightning Round - CA - m y - 27.92 - Computer Associates International, Inc. - BEAR -
Lightning Round - DYN - m y - 4.83 - Dynegy Inc. - BULL -
Lightning Round - EOP - m y - 33.93 - Equity Office Properties Trust - BULL -
Lightning Round - NKE - m y - 89.39 - NIKE, Inc. - BULL -
Lightning Round - SIRI - m y - 5.92 - Sirius Satellite Radio - BULL -
Lightning Round - DOV - m y - 36.98 - Dover Corporation - BULL -
LR Cramer - MET - m y - 44.9 - MetLife, Inc. - BULL -
LR Cramer - GIS - m y - 51.07 - General Mills, Inc. - Get into this instead of HNZ
LR Cramer - DF - m y - 40.9 - Dean Foods Company - Get into this instead of HNZ
LR Cramer - SLB - m y - 76.46 - Schlumberger Limited - BULL -
LR Cramer - HAL - m y - 47.4 - Halliburton Company - BULL - Cramer Owns It -
LR Cramer - CPN - m y - 3.41 - Calpine Corporation - BULL -
Thought - SHLD - m y - 152.96 - Sears Holdings Corporation - BEST OF BREED -
Top of Show - CSCO - m y - 19.8 - Cisco Systems, Inc. - BULL - change of opinion - he hasn't liked this until tonight
Top of Show - MSFT - m y - 25.07 - Microsoft Corporation - BULL - change of opinion - he hasn't liked this until tonight
Top of Show - INTC - m y - 27.11 - Intel Corporation - BULL - Cramer Owns It - Think this is better than CSCO, MSFT
Top of Show - MOT - m y - 18.8 - Motorola, Inc. - BULL - Think this is better than CSCO, MSFT
Top of Show - LU - m y - 3.06 - Lucent Technologies Inc. - BULL - Cramer Owns It - Think this is better than CSCO, MSFT
Top of Show - SHLD - m y - 152.96 - Sears Holdings Corporation - Cramer Owns It -
Top of Show - TXN - m y - 28.34 - Texas Instruments Incorporated - BULL -
Top of Show - NSM - m y - 21.56 - National Semiconductor Corporation - BULL -
Top of Show - BRCM - m y - 36.43 - Broadcom Corporation - BULL -
Top of Show - YHOO - m y - 36.9 - Yahoo! Inc. - Cramer Owns It
BULLS FROM TODAY: CBH JPM BAC INTC MSFT CSCO LM CELG MVL ROST EC PRU MXT ADBE BDX ACDO ACL AV EBAY DYN EOP NKE SIRI DOV MET SLB HAL CPN CSCO MSFT INTC MOT LU TXN NSM BRCM
BEARS FROM TODAY: CZN NSTK HNZ BWLD DRL CA
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Like the format If it would save some typing just put Lightning Round once before the fist lightning round stock.
Anyway thanks for getting back up.
Another Comment Anyone See the Volume on MSFT. Almost double it's normal is it the "Cramer Effect " ?
Congratulations on getting back up. We are also back up at www.investmentwizard.com with both the summaries of Cramer's recommendations (now free) and my own commentary and analysis.
Your readers can help keep both sites up by emailing me your support for free speech, or emailing EFF to express your outrage at this attempt to suppress public information. We need your support!
what happened to first marblehead?? fmd
Looks like THEY have now started to copy YOU!
Jim,
What do you thing of peg - public service and gas - they are being purchased by exelon - they have had a great run over the past few months- can it continue??
Linda
