Jim Cramer told investors that a new trend is quickly emerging for alternative-energy stocks. He explained that wind-power and solar stocks are holding up and trading higher, while the price of oil is falling rapidly. Cramer said this is proof that the strength in the alternative energy sector is for real. He predicted that the green stocks have four more years of strength and he reiterated his buys on Owens Corning (OC), Trinity Industries (TRN), and Mastec (MTZ). Cramer said Trinity is his favorite play in the wind complex. For the solar space, Cramer said investors should buy First Solar (FSLR) because the company is best of breed in the sector. He pointed to the recent earnings report from First Solar where the company blew away estimates and upped its full-year guidance. Cramer did warn investors that the alternative energy stocks could get hurt if the investment tax credit for wine and solar power doesn’t pass the Congress. He explained Congress is delaying the passing of the bill and it could cost the sector $11 billion as companies put projects on hold as they await the outcome. Cramer thinks the bill will eventually pass. “I think the case for investing in wind is being made,” Cramer said. “And I still think that solar has legs. It’s Green Day every day from now on in Cramerica.” Wind Stocks are all the rage this year. Read why WNEA may be the single best play in this sector today!

Cramer spoke with Pete Miller, chairman, president and CEO of National Oilwell Varco (NOV), about the company’s prospects as oil prices fall. Miller said he is seeing no decline in demand for new oil rigs. He mentioned that NOV has a backlog of $10.8 billion that extends to 2011. Miller pointed out that even if oil drops to $110 or $100, NOV will be fine. He explained that most of the rig orders were signed two years ago when the price of oil was much lower. “The lead times on this are so significant that you’re making a bet on the future,” he said. Cramer told viewers to buy this stock, calling it the single best driller. He advised viewers to start building a position with the stock down. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com

During the “Sell Block” segment, Cramer pointed investors towards an article that appeared in the New York Times which reported that occurrences of Type 2 Diabetes in children rose 10% to 12% a year. Prescriptions for these kids jumped 151%. Despite the negative news, Cramer said the way to play this trend is with the global leader in insulin, Novo Nordisk (NVO). He pointed out that Novo’s new diabetes and weight-loss drug, Liraglutide could be one of the biggest drugs he has ever seen. He said he is releasing the stock form the sell block and he wants investors to get in before the drug comes up for FDA approval in the second-quarter of next year. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Daniel from the University of Alabama writes, “I respectfully disagree with your call that Research In Motion’s (RIMM) BlackBerry Bold will kill the Apple (AAPL) iPhone. The BlackBerry has been popular for business users, but now that the iPhone has corporate exchange server capability, people are trashing their BlackBerries. I think the BlackBerry is a great phone but the market is banking on Research In Motion selling as many as the previous version. I believe there are currently too many downsides to RIMM. Cramer explained that he didn’t say it will kill the iPhone. He said the market is big enough for both firms. Join the fastest growing community of small cap investors at Stockhideout.com

Lightning Round
Bullish
Petrohawk Energy (HK), Allergan (AGN), Coca-Cola (KO), Pepsico (PEP), Frontline (FRO) and Nordic American Tanker (NAT).
Bearish
Mastercard (MA), Alon USA (ALJ), Star Bulk Carriers (SBLK), Nordic American Tanker (ERJ), CBS Corp (CBS) and ACE Limited (ACE).
Sudden Death
Cramer was bearish on China Telecom (CHA) and Grey Wolf (GW) Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com

Word On The Street
WORD VIDEO HERE
August Prediction
The traders gave out their predictions for August. Jon Najarian said he thinks the financials have bottomed and he likes Prudential (PRU) and American International Group (AIG). He pointed out that AIG has unusual options activity. Adami said avoid AIG because the company is too exposed to the financial services market. Macke said rent stocks in August don’t buy them.
Yahoo Chat
The traders spoke with Thomas Weisel Partners analyst Christa Quarles about Yahoo’s (YHOO) approaching annual meeting. She said that investors should look for three things to come out of Yahoo: they will put the Microsoft (MSFT) deal to bed, cut their 3-year growth plan they unveiled in March and Yahoo! will introduce a new ad platform product. She also mentioned that she downgraded Yahoo! a few weeks ago to underweight from market weight and cut the price target to $18 from $28. Quarles explained that Yahoo! has lost over 140 executives over the last 6 to 8 months. “Is it riskier to stay at YHOO or go to a start up,” she said and “a lot of executives are choosing the latter.”
Drug Trade
The traders discussed some biotech plays in the wake of negative data from Biogen Idec (BIIB) and Elan (ELN) on their blockbuster drug Tysabri. Adami said stay with best of breed biotech stocks like Celgene (CELG). He mentioned that Celgene has big earnings growth and revenue growth potential. Macke said investors really need to know everything about the biotech stocks they invest in.
POPS&DROPS
POPS- Tyco (TYC) traded up 5%. Finerman said that company is doing performing well. International Paper (IP) jumped 14% after the company beat Wall Street estimates. Adami thinks the stock is going to $30. Schering-Plough (SGP) popped 5% after Merrill Lynch upgraded the stock to buy. Seymour said the stock looks interesting. Symantec (SYMC) added 7% after the security software firm posted second-quarter earnings that doubled. Finerman said very good for SYMC. Research In Motion (RIMM) shot up 3% after Jim Cramer made bullish comments about the firm on the “Mad Money” TV show. Wyndham (WYN) popped 3% after the hotel operator posted strong earnings. Finerman said it was a surprise.
DROPS- Eastman Kodak (EK ) fell 7%. Adami said nobody is taking pictures anymore. Akami (AKAM) plunged 25% after the largest software and web content company cut its annual profit forecast due to a the weakening economy. Macke said that’s not good. Green Mountain Coffee Roasters (GMCR) slid 6% after the specialty coffee maker missed revenues but beat earnings. Seymour said the numbers don’t look to good but he likes the story. Parker Hannifin (PH) fell 9% after the hydraulic equipment maker lowered its 2009 outlook. Adami said the guidance was bad but he likes what they said about their aerospace sector. Bare Escentuals (BARE) plunged 32% after the cosmetics firm lowered its 2008 forecast. Macke said that it appears people are cutting back on their cosmetics.
Whale Watch – Warren Buffett
The traders discussed trading in the wake of legendary investor Warren Buffett. Some of Buffett’s top holdings right now are Coca-Cola (KO), Wells Fargo (WFC), Proctor & Gamble (PG), American Express (AXP) and Burlington Northern Santa Fe (BNI). Adami said BNI is a buy, but not at current prices. HE said another good Buffett holding is US Bancorp (USB). Seymour likes Buffett’s call on the rails for a long term trend. Finerman said she likes American Express and thinks Buffett might have bought more of the stock. Macke explained that investors should understand that Buffett is a value investor and he takes his time and builds positions.
Fast&Furious
The unemployment data will be released at 8:30 a.m. Seymour said if the number is in-line the market will take-off higher. NYSE Euronext (NYX) is set to report earnings before the bell. Adami said he isn’t bullish on the name. Yahoo! (YHOO) will hold an investor meeting on Friday. Macke said he would be surprised if they said anything that made anyone bullish on the stock. Clorox (CLX) will report earnings before the open. Finerman thinks CLX will post good numbers. Chevron (CVX) is due to report earnings Friday morning. Seymour thinks their refining margins will hurt the numbers.
Final Trade
Macke said avoid Elan (ELN). Adami picked Celgene (CELG). Seymour likes Freeport McMoRan (FCX). Finerman said short BB&T (BBT). Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

Jim Cramer said the investment by a major British hedge in Washington Mutual (WM) is more proof he is right about his call for a market bottom. England’s Toscafund Asset Management announced it took a 6% stake in Washington Mutual. Cramer compared the move by Toscafund to a similar move in 1990 when Prince Alwaleed took a big stake in Citigroup (C). “The banks let us down, now they’re leading us back up with new leadership. As we come down, you want to buy not sell. I suspect they will be hit with employment numbers tomorrow,” Cramer said. He also had positive comments for Goldman Sachs Group (GS). He said, “I would own it forever for my charitable trust. it’s expensive vs. the other banks, but still inexpensive for its price.” Cramer pointed out that Fidelity has been adding to their stake in Goldman Sachs Group and American International Group (AIG), while unloading its stake in Citigroup (C) and JPMorgan Chase (JPM). He said he didn’t like the their call on JPM, but was fine with their move on Citigroup. Moving onto Disney (DIS), Cramer said the theme parks were up and the stock is starting to get sold off too aggressively. Finally, Cramer said Walter Industries (WLT) could be the next coal company to catch a takeover bid. “They just made an announcement about having more coal available, and this is the ideal conglomerate to buy in this type of market,” he said. Join the fastest growing community of small cap investors at Stockhideout.com

Jim Cramer told investors that Research In Motion (RIMM) will have a great month in August as the firm gets ready to launch its newest product, the Blackberry Bold. He said the company is also set to release the Kickstart, which will compete with Motorola (MOT), and the Thunder, which will be the first big threat to Apple’s iPhone. Cramer also likes RIMM’s growth into overseas markets. He told investors that RIMM’s recent earnings guide-down isn’t a problem, because the company was just increasing marketing and R&D costs for the upcoming new products. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!