Hansen Natural Corp (HANS) is the one stock Jim would pick for his Halloween show if he had to pick one. This is a haunted house stock and he told us probably a lose your money stock. A momentum stock that has lost its momentum is just about as scary as it gets. These do not usually come back from the dead and this beverage maker has nothing proprietary to help. Today he performed a blind taste test sampling HANS drinks and all of them taste the same so it is time to sell. They have a “totally undifferentiated product.” They try to make premium drinks at premium prices but there is nothing premium about HANS’ drinks according to Jim. You need to be out before they report the next quarter. Bulls are even worried about this stock now and Jim doubts the energy drinks can save them stating, “it is only a matter of time before the medical companies start turning on these guys.” He believes that energy drinks are a fad. HANS got its “head chopped” and it has only gone up two points so the time to get out is now. A caller questioned Tootsie Roll Industries (TR) and Jim said to get out of TR because it is at the top and get into Hershey Company (HSY) due to the company being at the bottom.

Right now Brazil has high growth, decent inflation and is nirvana when it comes to the economy, Jim stated in this segment. This causes a hard time in finding best of breed there. Jim likes Brazilian supermodel Gisele, and Companhia Vale (RIO) who just bought Inco Limited (N). People tended to dislike this acquisition because they believed the price paid was too much but market players should be “celebrating” the deal. Estimates coming out for next year are way too low. BHP Billiton (BHP) and Rio Tinto (RTP) are two mineral companies that portfolio managers own right now. This should change, and RIO will be the new pick. The Street should anoint them and the stock will double. There is still a month or two to get into the stock but do look at it before it is anointed.

Bullish
Suncor Energy Inc (SU), Cisco Systems (CSCO), Sears Holdings Corp (SHLD), CommScope (CTV), Time Warner Inc (TWX), Enbridge (NYSE:EEP), Energy Transfer Partners (ETP), Southern Copper Corporation (PCU), MetLife Inc (MET), AutoZone (NYSE:AZO) and Best Buy Co Inc (BBY).
Bearish
Tellabs Inc (TLAB), Pacific Ethanol (NASDAQ:PEIX), Goodyear Tire & Rubber (GT), Caterpillar Inc (CAT), Lucent Technologies Inc (LU), Alcatel (NYSE:ALA) and El Paso (EP).

We were taught about shorts and staying to negative on stocks today. We were shown a chart of EastGroup Properties Inc (EGP) and their performance back when Jim ran a hedge fund. The chart looks great. Jim shorted the stock in 1991 and this was his biggest position. A commercial real estate company at a time when commercial real estate looked dead. Him and his buddies had made a bunch of money on companies that had gone to zero at the time and this short went from 14 to 6 and instead of selling he held and ended up covering at the time when the Gulf War started. The stock didn’t stop going higher and if he would have held his position he would have gone broke. This same situation is happening in the homebuilders right now. They have been fabulous shorts that will turn and anyone that stays short will get killed. Lennar Corp (LEN), Toll Brothers Inc (TOL), Pulte Homes (PHM) and KB Home (KBH) were named. Investors never spot the bottoms until the stocks start coming back. Bears that are in the homebuilders will get slaughtered like pigs unless they realize and become buyers.

Jim went over some hate mail regarding eBay Inc (EBAY) and how it has gone from 23 to 31 after he has been bashing it recently. He reminded us that he has been negative on the stock since it was in the 50′s and the emailer stated Jim shouldn’t let his personal feelings get in the way.
He has also gotten a bunch of hatemail regarding Texas Roadhouse (TXRH). Jim has been positive on the stock and many feel he shouldn’t be so he invited CEO G.J. Hart on to talk. People are cutting numbers and this is because they changed numbers themselves but they are still doing well. They are accelerating growth for the future with more restaurants in the pipeline for the first quarter of next year than ever before. They tend to lag behind in price due to the best value proposition in meals. Jim loves TXRH due to their growth and types of restaurants they run.

Battleground stocks Jim started the radio show with were NutriSystem Inc (NTRI), Hansen Natural Corp (HANS) and Crocs, Inc. (CROX). Bears and bulls are fighting it out on these fronts. The stocks will either be “crushed” or “skyrocket.” The normal investor wants to get into a stock, have it go up and then sell it to make money but a group of stocks exist that people bet against and they hope for the stock to go down. These are short sellers. Jim is not a champion of short sellers but he realizes that they are out there, particularly in these three stocks. NTRI has a lot of things that could make them “faddish” and it could cause a “brutal decline” because of this. This bitterness in NTRI has Jim wanting to avoid the stock. With HANS Jim realizes that the energy drink market is hot but he sees some fad components in the stock. With the stock up he says to take some HANS off before they report next week even as he likes it very much. With CROX the bears do not realize the “strong allegiance” they have developed with colleges. The stock is up since going public so ring the register on some but “the bears are going to be the most wrong when it comes to CROX.”
Within the market there are some you should listen to, like Warren Buffett. There are those “whose ability to make money is legendary” citing Berkshire Hathaway Inc (BRK.A). One share in 1981 at $200 is now worth $100,000. Buffett buys things that are out of favor and now he is looking at retail with Target Corp (TGT), J.C. Penny (JCP) and Sears Holdings Corp (SHLD). Buffett seems to be making a statement by buying TGT over Wal-Mart Stores Inc (WMT).
MetLife Inc (MET) has some serious problems with its annuities business but it is a terrific company and Jim is willing to overlook this. This is a stock that he is sticking with. The pullback is a buyable one not a sellable one according to Jim.
Cheesecake Factory (CAKE) has people “freaking out” because of the poor performance the last few months. The negativity is too great here. They report in 20 days, and while Jim doesn’t believe they will report well this quarter, he does think they will do well long term. Do not walk away right now.
Hasbro Inc (HAS) should be a stock with more upside and it is going up with Mattel Inc (MAT).
Sonoco (SON) has a 3% yield and is a “quiet grower” and they make proprietary products for clients and this is all good news for the company.
A stock that Jim dislikes is Coventry Health Care Inc (CVH). For the sector he likes UnitedHeath Group Inc (UNH) even though it has been a “heartbreaker.” Steer clear of this industry until after the election he warned.

Those expecting a Democrat sweep of the elections next week should look at selling Alliant Techsystems (ATK). Hold oil, big pharma and big defense incase the Republicans hold majorities. Recent polls see this as unlikely though so people should plan accordingly. Shy away from health maintenance outfits also with negative sentiment tied to a possible Democratic win weighing on the likes of Humana Inc (HUM).

McAfee Inc (MFE), MEMC Electronic Materials (MEMC), Alberto-Culver (ACV), Level 3 Communications (LVLT) and Marvell Technology (MRVL).
Bearish
Check Point Software (CHKP), Cogent Inc (COGT), Intuitive Surgical (NASDAQ:ISRG) and
Red Hat (RHAT).

In the “Sudden Death” round, Jim was bullish on SAIC Inc (SAI), J.C. Penney (JCP) and Kohl’s Corp (KSS).

He was bearish on Wet Seal Inc (WTSLA).

Jim was out with bullish comments on Chevron Corp (CVX) calling it a “great stock,” which is going to be put on sale next week. On Tuesday, Nov. 8, Cramer said he has “little doubt” that voters in California will pass Proposition 87, which “seeks to lessen dependence on foreign and domestic oil.” Jim thinks come Wednesday or Thursday investors need to buy this stock as the initiative takes affect. “Don’t buy it today, tomorrow or later this week,” Jim warned. If Proposition 87 passes, and it is expected to, analysts who cover Chevron are going to have to cut numbers, he explained. “When it gets put on sale, people should buy it.” Aside from improvements in Big Oil’s prospects, another reason to buy Chevron is that it had the “biggest earnings upside surprise,” almost a 15% beat, Jim said. Jim also mentioned how the company has little debt and is doing a very big buyback.

Hospitals in California, Missouri and Arizona are lobbying to increase cigarette taxes, but people should still consider getting into the tobacco sector, Jim told viewers of his TV show Monday. If Proposition 86 is passed in California, it would raise the state cigarette tax from 87 cents to $3.47 a pack, Jim said. Jim mentioned how the big tobacco players are fighting back and spending money on advertising. Jim isn’t a fan of smoking at all, but he thinks that investors can make big money from cigarette stocks. Jim calls Altria Group Inc (MO), which owns for his trust, “best of breed.” Jim thinks MO is better then Reynolds American Inc (RAI) and is better valued than UST (NYSE:UST). Reynolds is Jim’s second pick and UST is a underdog/potential takeover target that he thinks is a buy. If you’re looking for smaller cap plays, Jim recommends Vector Group Ltd (VGR) and Carolina Group (CG).