Going to $70 is Procter & Gamble (PG) based on Tuesday morning’s earnings. This is a consumer goods play like Coca-Cola (KO) and will be revalued by the market. Jim is reluctant to give up on Crocs (CROX) and Under Armour (UA) heading into earnings. Buying common shares of either right now was not recommended due to the shorting but short term moves are a good play. With Dolby (DLB) a woman accused of running a Beltway prostitution ring asked that her brokerage account be unfrozen so she could unload DLB because she thinks it has peaked and Jim thinks “she can see things I can’t see.”
WATCH THE VIDEO HERE
Archive for April 2007
Jim Cramer’s Stop Trading
Jim Cramer’s Wall Street Confidential Video Recap
The top telecom-equipment makers were talked about and ranked today by Jim. The top spot went to Ciena (CIEN) do to it having some earnings and the stock got an upgrade today and Jim said it is “at the sweet spot.” Second on the list was Tellabs (TLAB) because of its “rock bottom valuation.” Jim will go on to focus on JDSU (JDSU) because if they does execute well the stock has four points to the upside and only one to the downside. The fourth stock on the list was Alcatel-Lucent (ALU) because they can not be taken over. The numbers for Verizon (VZ) had him considering CIEN a takeover name. CIEN is on the cusp of this major spending cycle along with JDSU, ALU and TLAB according to Jim. Vonage (VG) may go higher on a short squeeze but he told us “this principal taker of VZ is falling apart.” Another disaster is Nortel (NT) as Ericsson (ERIC) would rather be owned here.
WATCH THE VIDEO HERE
Fast Money Recap & Review
Top 3 – Sell In May, Revenge Of Tech and Field Of Dreams?
In May the average performance of the S&P 500 has fell off every year since 1970. This did not hold true last year with the market rebounding for a 2% gain in June. Bolling’s word is “buy” in May with over the last 4 years those who have bought the Energy Select Sector SPDR (SLE) in May enjoyed an average return of 22.5% and The Utilities SPDR (XLU) gave a 16.5% return over the same period. Ratigan gave Consumer Staples Select Sect. (XLP), Energy Select Sector SPDR (XLE) and Health Care SPDR (XLV) as the best performers over the summer. On the other side with worst over the same period are Materials SPDR (XLB), Technology SPDR (XLK) and Consumer Discretionary SPDR (XLY). Strazzini pointed out that historical results are guidelines nothing more. Adami told us to take some profits on Goodyear (GT) as it is up 250% since last summer.
Top Three #1 video.
Technology stocks are on a breakout thanks to Microsoft (MSFT) and Apple (AAPL). Up nearly 9% since the beginning of March is The Technology Select Sector SPDR Fund (XLK). Adami pointed at EMC Corp’s (EMC) spinoff called VMware as the hottest IPO of the summer. Macke likes MSFT and Intel (INTC). Bolling thinks Hewlett Packard (HPQ) is a stock investors should own. Strazzini went with IBM (IBM) and Cisco (CSCO).
Top Three #2 video.
Is ethanol a field of dreams? Shares of Archer Daniels Midland have been flying and Bolling likes them but he is not sure of buying shares ahead of earnings. Ethanol producers Aventine Renewable (AVR), Pacific Ethanol (PEIX) and VeraSun (VSE) were all stocks that we were told to stay out of.
Top Three #3 video.
Word On The Street
Friday’s headlines analyzed by the shows cast.
Grade The Trade
This segment has students from universities take apart a situation and the crew members grade the scenarios.
Dirty Trades
Pawn shops are Bollings “Dirty Trades” because they are a multi-billion dollar industry. Publicly traded pawn shops that he likes are First Cash Financial (FCFS), Cash America International (CSH) and EZCORP (EZPW).
Dirty Trades video.
Fast Fire
This is the time to talk about picks that didn’t pan out and where to go from here.
Quicker Than The Ticker
In this segment the trades that worked for the guys are talked about.
Final Trade
Monday’s trades from each guy were: Bolling chose Hewlett Packard (HPQ), Macke likes Burger King (BKC) and Strazzini while cautious is Electronic Data Systems (EDS) and Computer Science Corporation (CSC). Adami went a different route picking Calvin Johnson as the #1 pick in the NFL draft.
Final Trade video linked here.
Jim Cramer’s Lightning Round
Bullish
Tata Motors (TTM), Ciena (CIEN), Corning (GLW), Stryker (SYK), Zimmer (ZMH), Goldman Sachs (GS), FuelCell Energy (FCEL), Yamana Gold (AUY) and Kinross Gold (KGC).
Bearish
JDS Uniphase (JDSU), DreamWorks (DWA), U.S. Global Investors (GROW), Quiksilver (ZQK) and Micron Technology (MU).
Lightning Round video.
Speculative Play
An “ultimate speculative stock” for the stock picking contest CNBC’s Million Dollar Portfolio Challange was named today as Ionatron (ION). This wasn’t just named as a good stock for the game but if you have a hole in your portfolio in the speculation area it can be your play. ION makes lasers that come in lethal and non-lethal forms. This is a good speculative play because they soon may win a bid from the U.S. military as they have been spending billions on contracts. Jim also advised buying Spartan Motors (SPAR) in the past. Last May ION fell from $14 to $5 and it has been there ever since. This stock is risky but their is not much downside.
Ionatron video part 1.
Ionatron video part 2.
Private Equity Target
Named this week have been Actuant (ATU), Darden Restaurants (DRI), Cheesecake Factory (CAKE), TJX Companies (TJX) and Ross Stores (ROST) in this daily segment. Today Penn National Gaming (PENN) was recommended because they have a lot of cash flow with problems that can be fixed easily. PENN is in the gaming industry and they are making a lot of money, and since Harrah’s Entertainment (HET) got taken out this sector has drawn interest from private equity guys. PENN is a smaller company and it is driven by new projects, not to mention it is a low risk high return company. Jim told us that if you play your cards right you could make over 30%.
PENN video here.
Game Plan
Jim thinks Vulcan Materials (VMC) which reports Monday has room to run still. Tuesday Avon Products (AVP) will report and it should “hit a home run” and “give us the gains we are looking for.” Along with AVP, Quest (Q), Procter & Gamble (PG), MedcoHealth Solutions (MHS) and General Cable (BGC) all report Tuesday and should all go higher. MHS was called a “stock for all seasons and PG looks ready to “join the ranks of Coca-Cola (KO) and PepsiCo (PEP).” That day restaurant chains Chipotle Mexican Grill (CMG) and Buffalo Wild Wings (BWLD) report and Jim likes them as well. Wednesday we were told to consider getting into Allergan (AGN). With Transocean (RIG) you should wait a bit until it comes in before buying. Also this day look at the rails Trinity Industries (TRN) and American Railcar Industries (ARII). Go long on Andersons (ANDE). Thursday you should see Celgene (CELG) run and Charter Communications (CHTR) was called “interesting.” The “quintessential weak dollar play” was named as Estee Lauder (EL) and on Friday look at KBR (KBR).
Game Plan linked here.
Jim Cramer’s Mad Mail
A viewer was told that Jim feels great about Cummins (CMI) and congratulations was given to everyone who pulled the trigger on it.
Jim Cramer’s Wall Street Confidential Video Recap
This was a special edition devoted to explaining what not to do when shorting a stock. We were told whether a professional or amateur not to use only common stock to short because it doesn’t work. For those addicted to shorting common we were given the scenario to buy Whirlpool Corporation (WHR) 85 calls as insurance and short the common stock against it. Buying puts should be the only way you short a stock. Jim explained shorting as such: “Shorting is borrowing stock and selling it for the proceeds, with the expectation it will go down and eventually can be bought back at a lower price. The repurchased shares then must be returned to the lender. A call is an option to buy a stock at a predetermined price by a certain date; a put is the opposite, to sell at a specific price.” Three stocks were looked at with their shorts, Amazon.com (AMZN), Whirlpool Corporation (WHR) and F5 Networks (FFIV). The idea was that these stocks had problems that would not be solved this quarter due to there being no catalysts. He was told to short FFIV because it has been acting like a dog, and a “traffic coordinator” or the Web surely cannot continue to grow, but this is no reason to short a stock. WHR was shorted because last quarter was not that good. He told us further that AMZN up 70% since August should be gotten off and again he said this wasn’t a good reason to sell. Guidance from the three from the previous quarter was not good and those selling short expected a bad quarter. Guidance shouldn’t be trusted though because if they didn’t know how to guide into the quarter how can we trust guidance going out. Again we were told to buy puts not common stock if we are going to short.
