Cramer spoke with Jim Sinegal, president and CEO of Costco (COST) to find out how the company is handling the economic slowdown. Sinegal said that Costco is doing well with the recession because consumers are turning to its outlets to save money in tough times. He mentioned that customers are shopping frugally and spending money on cheaper items. He explained that Costco has been able to maintain profit margins while keeping prices low. This strategy is keeping customers happy and increasing traffic growth. “Whatever we do for the consumer is going to come to the shareholder eventually,” Sinegal said. He told viewers that that firm’s house brand, Kirkland, continues to do well. Also, the company is adding higher-end goods, like Waterford Crystal, which is being well received by its customers. Cramer said there are two big bargains in the retail sector right now, Costco and Wal-Mart (WMT). Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com
Archive for December 2008
Jim Cramer’s Sell Block – DuPont
Jim Cramer put chemical maker DuPont (DD) in his “Sell Block” Thursday after coming to the conclusion that the company is the worst in the chemical complex. He said the 6.4% dividend yield that DuPont pays out might look attractive, but in reality its not stable. The problem with DuPont, is that the company scores 59% of its profits from autos, transports, industrials and other economically sensitive sectors. The only division at DuPont that makes money is the agriculture unit. Another problem with DuPont is their pension costs, which could could amount to earnings losses of 45 cents and 58 cents next year. Cramer thinks the dividend could be at risk with 22% of the company’s profits tied to the auto sector. The company has also lowered its guidance for all of 2009. Cramer told viewers that if they want to play the chemical sector, he would rather own PPG (PPG) over Dow Chemical (DOW) or DuPont. Join the fastest growing community of small cap investors at Stockhideout.com
Jim Cramer’s Lightning Round
Bullish
Travelers Companies (TRV)
Bearish
Otter Tail (OTTR), Gannett (GCI), Prudential (PRU) and Apple (AAPL). Join the fastest growing community of small cap investors at Stockhideout.com
Obama Factor Stocks
Jim Cramer credited President-Elect Barack Obama for the reason that parts of the stock market saw strength on Wednesday. Cramer explained that Obama’s infrastructure stimulus plan helped to boost names such as Jacobs Engineering (JEC), AECOM (ACM) Nucor (NUE), and US Steel (X). He said firms like Freeport McMoRan (FCX), Joy Global (JOYG) and Caterpillar (CAT) should also benefit from Obama’s plans. Obama appointed Iowa Governor Tom Vilsack to the secretary of Agriculture post, and names like Deere (DE), Potash (POT) and Mosaic (MOS) surged on the news. Cramer also pointed out that Bernanke is determined to push mortgage rates down to 4% to force a rebound in the housing market so he likes names such as KB Homes (KBH), Toll Brothers (TOLL) and Lennar (LEN). Some other sectors like financials, alternative energy and drug stocks, should also be strong going forward. He named Goldman Sachs Group (GS), Morgan Stanley (MS), First Solar (FSLR), Trinity Industries (), Schering-Plough (SGP) and Johnson & Johnson (JNJ) as the companies to watch in those sectors. Cramer said there is something for everyone in this market if you know where to look. 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!
Two Stocks For Different Types
Jim Cramer told viewers of CNBC’s “Mad Money” TV show Wednesday that there are different types of stocks that are geared for different types of investors. He explained that General Mills (GIS) and Joy Global (JOYG), both of which reported earnings today, are great examples of this theory. He pointed out that GIS reported better-than-expected quarter, but the stock did nothing. Joy Global missed Wall Street estimates, but the stock surged higher. Cramer said these stocks trade differently because of consistency. He said General Mills consistently meets or beats expectations every quarter, while Joy Global has failed to be quite so consistent with their ability to deliver each quarter. Cramer mentioned that he likes both firms because they are the best run in their respective industries. For investors looking for which stock to buy, Cramer explained that market players who want less risk and are looking to sleep good at night should buy General Mills, while the more trader types should go to Joy Global for the stocks sharp volatility. 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!
Cramer’s Mad Mail
Cramer told an investor that he would rather own Nordic American Tanker (NAT) over rival Diana Shipping (DSX) because the company has a much better cash flow position. Join the fastest growing community of small cap investors at Stockhideout.com
Cramer’s Am I Diversified
The first caller was long these stocks: Alcoa (AA), Genco Shipping (GNK), Redhat (RHT), Deluxe (DLX) and Oracle (ORCL). Cramer pointed out that Red Hat and Oracle were two software companies. He told the viewers to sell Red Hat. The second caller was invested in the following stocks: Philip Morris (PM), Altria (MO), Center Point Energy (CNP), Nordic American Tanker (NAT) and Verizon (VZ). Cramer said Philip Morris and Altria are two of a kind. He said sell Philip Morris. The third caller held positions in these stocks: Citigroup (C), Windstream (WIN), Ford (F), Caterpillar (CAT) and Clean Energy (CLNE). Cramer called this portfolio an example of terrific diversification. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com
Jim Cramer’s Lightning Round
Bullish
JPMorgan Chase (JPM), Anadarko Petroleum (APC), Colgate-Palmolive (CL) and Wal-Mart (WMT).
Bearish
Tyson Foods (TSN), Chesapeake Energy (CHK), Whirlpool (WHR) and World Wrestling Entertainment (WWE). Join the fastest growing community of small cap investors at Stockhideout.com
Fast Money Recap
POPS&DROPS
Pops- Macy’s (M) rose 18%. Finerman explained that Macy’s restructured their debut, and that’s a good thing, but she still would not be long the stock. iShares Dow Jones Transport Average (IYT) jumped 3%. Macke said take profits. Silver Wheaton (SLW) popped 4%. Najarian said this one seems to be breaking out, so be careful. Joy Global (JOYG) rose 13% after four-quarter earnings and sales beat Wall Street estimates. Adami said the stock is cheap at 7 times earnings.
Drops- Newell Rubbermaid (NWL) plunged 27% after the company lowered its 2008 forecast and announced layoffs. Najarian said maybe the stock is oversold. Hovnanian (HOV) dropped 14% after the homebuilder reported a worse-than-expected fourth-quarter loss. Adami says “if you’re short, you better cover soon.” General Electric (GE) fell 3%. Finerman thinks its great that GE is getting out of the earnings forecasting business. Adobe (ADBE) dropped 3% after the firm reported fourth-quarter earnings of 60 cents a share. Macke mentioned it sucks to report actual numbers and that is what ADBE did today.
Trader Radar
Shares of Newell Rubbermaid (NWL) were among the most active names on the NYSE Wednesday.
Final Trade
Adami likes Novartis (NVS). Finerman told viewers to sell the iShares Dow Jones US Real Estate ETF (IYR). Najarian said buy Energy Conversion Devices (ENER). 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!
