Bullish
Abbott Laboratories (ABT), Southern Copper Corporation (PCU), Freeport-McMoRan Copper & Gold Inc. (FCX), Nordstrom Inc. (JWN), Annaly Capital Management Inc. (NLY), Anadarko Petroleum Corporation (APC), Devon Energy Corporation (DVN), XTO Energy Inc. (XTO), Trane Inc (TT), Northern Trust Corporation (NTRS) and State Street Corporation (STT).
Bearish
Infinera Corp. (INFN), E TRADE Financial Corporation (ETFC) and Anthracite Capital Inc. (AHR).
LIGHTNING VIDEO

The strong global demand for steel has Molybdenum on fire. There are a number of firms that mine Molybdenum but two pure plays were mentioned in General Moly Inc. (GMO) and THOMPSON CREEK METALS CO INC (TC). Jim thinks that TC is the way to play this with GMO up big. TC is the fifth largest producer of Molybdenum and is speculative due to them being dependent on the price of the chemical. The global demand for stainless is strong and looks to get stronger.
TC VIDEO

Friday CEO Ed Zander from Motorola Inc. (MOT) decided to resign and the “Wall Of Shame” lost a member. The loss of Zander does not mean you should buy MOT though as the stock may take some time to turn around. The replacement on the Wall is Sprint Nextel Corporation’s (S) acting CEO Paul Saleh. S recently rejected a $5 billion investment bid from Providence Equity Partners and South Korea-based SK Telecom. If the deal had gone through former CEO from Nextel Tim Donahue would have returned and Jim thinks this is just the thing S needs to succeed.
SHAME VIDEO

Next week when the market opens Jim told us to stick with financials. After following the 1990 playbook for some time we see that financials have bottomed and investors want to buy them. They keep going and going like the Energizer bunny if anything like 1990. You should look to keep buying Wachovia Corporation (WB), Bank of America Corporation (BAC) and Citigroup Inc. (C). Jim is even alright with buying Countrywide Financial Corporation (CFC). The last stock mentioned was Annaly Capital Management Inc. (NLY) as “a lot more attractive” as the Fed cuts rates.

On speculation Friday Jim brought us Tenet Healthcare Corporation (THC) who owns and operates hospitals. The stock is far above the price target. Analysts are worried about liquidity issues and bad debt. The Street being bearish on THC is a good thing according to Cramer. This is a long term buy even if it drops next week with value managers looking for new plays. The company saves lives and insensitive to the economy. They just signed on 845 new doctors and, they also have new management and the CEO is a doctor. Margins with THC are lower than some competitors as well. We were told to do homework and buy a bit in five days and wait for a pullback to buy more.
THC VIDEO

The first piece of mail had Jim saying that he has been watching Masimo Corporation (MASI) and he expects it to continue being a “pistol.” The next email had him talking about how Sasol Limited (SSL) is the single best coal stock, but if you have gains take profits. Brocade Communication Systems Inc.’s (BRCD) conference call had him saying that he would buy it here.
MAIL VIDEO

On the TV Confidential segment today Cramer talked of the subprime mess. He turned positive on Monday with Abu Dhabi putting money into Citigroup Inc. (C), and he saw a 1990 situation. Rates were discussed a bit. Then he turned to big servicers and named Countrywide Financial Corporation (CFC) and Wells Fargo & Company (WFC) in that they have to hire hundreds of thousands of people to service all the mortgages when people are not paying them. He told us to take that off the table. During the bottom all move up from sell to hold like in Washington Mutual Inc.’s (WM) case or sell to buys as in CFC, WFC, C and Bank of America Corporation (BAC) cases.
TV CONFIDENTIAL VIDEO

Some companies are steering in the right direction despite the subprime mess. Cramer cited Anworth Mortgage Asset Corporation (ANH) and Annaly Capital Management Inc. (NLY), who he likes better, as those managing to dull the mortgage crisis’ impact. The Citadel Investment Group was talked about as “very smart guys” with an E TRADE Financial Corporation (ETFC) investment of $2.5 billion from Citadel. In retail J. Crew Group Inc. (JCG) CEO Mickey Drexler should be lauded for steering the company into good times during a recent dreadful time in the sector.
STOP VIDEO