Jim Cramer’s Cyclical Stock Buy/Sell List: X, CAT, TIN, FCX, VALE, CBE, BA, F, BTU, JOYG, BUCY, KMB, CLX, MCD, CAG

“It’s time to sell, sell, sell the cyclical stocks,” Jim Cramer told the viewers of his “Mad Money” TV show. With both a slowdown in China and and the Obama administration attacking the group, Cramer said these once high-flying stocks will be forced to give back some of their recent gains. Once a great place for investors to hide from the struggling U.S. economy, cyclical stocks such as United States Steel Corporation (NYSE:X), Caterpillar Inc. (NYSE:CAT), Temple-Inland Inc. (NYSE:TIN) and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) got the rug pulled out from under them, he said, when Chinese officials suspended new lending across the country. “There’s no way Chinese demand will be able to stay at current levels,” Cramer said. “For this reason, companies will have to give back some of these gains.” Cramer mentioned that not all cyclical stocks should be treated the same. For his charitable trust, Cramer sold shares of Vale (ADR)(NYSE:VALE) because the company had too much exposure to China. On the other hand, he kept shares of Cooper Industries plc (NYSE:CBE) because that company has little exposure to China. Cramer said he’s worried about  Bucyrus International Inc. (NASDAQ:BUCY) and Joy Global Inc. (NASDAQ:JOYG) due to their China exposure.  Also, investors should sell Peabody Energy Corporation (NYSE:BTU) because this coal company just reported and growth here isn’t American, it’s Chinese. He said he’s concerned that Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is losing China. FCX is an American company that knows China uses 30% of the world’s copper, including tons that it excavates from its nearby Indonesia mine. “No wonder the stock got hammered after it reported a great quarter last week,” Cramer said. He told viewers he’s not worried about Boeing Company (NYSE:BA) or Ford Motor (NYSE:F), as those companies are global powerhouses. Cramer said even though the oils haven’t reported, they are also getting hit because China’s the marginal buyer of crude. He recommended that investors swap out of the cyclicals an any strength and jump into the consumer staple stocks like Kimberly-Clark Corporation (NYSE:KMB), McDonald’s Corporation (NYSE:MCD), Clorox Company (NYSE:CLX) or ConAgra Foods Inc. (NYSE:CAG). 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!

1 Responses »

Trackbacks

  1. Jim Cramer#39;s Cyclical Stock Buy/Sell List: X, CAT, TIN, FCX, VALE … « Autions

Leave a Response