MAD MONEY: CRAMERS TELLS BEN TO CUT IT!

After a dramatic drop in the market on Friday, Cramer, pissed off and a little irritated make a list of short stocks as well as pleaded with our Fed Reserve chairman, Ben Bernanke that it’s time to cut those rates to save people from losing their homes. I second that notion at this time. I will write a article about my opinions on the falling American economy in a weekend special article.

This was the list from Cramer for members of the Cramerville:

MGIC Investment (MTG), Countrywide Financial (CFC), Bear Stearns (BSC), KB Home (KHB), Centex (CTX), MBIA (MBI), Blackstone (BX), Thornburg Mortgage (TMA), Beazer Homes (BZH), Washington Mutual (WM), Goldman Sachs (GS) and Citigroup (C) (The last two, Cramer owns for his charitable trust)

Once again, Cramer pumped Lululemon Athletica (LULU) for the third time this week. Read my review of it here. But he said that “Lulu is on to something, and if it performs anything like Under Armour, we’re looking at a real winner,” but he also said you should wait for it to come down a little bit and find a good entry point which is a great idea especially which I say is after the lock up period if possible.

A defensive suggestion by Cramer was Boston Beer (SAM) which is the maker of the beloved Samuel Adams brands. “A brewer should thrive in good times and bad,” he said. People drink beer no matter what.” The stock is close to a 52 week high which shows that it has a staying power despite the bloodshed in the streets of the Wall Street. Mr. Cramer gave it a triple BUY!!!

“Right now there is an opportunity to get into these stocks…Oil stocks are among the best stocks in this market.” The oil trade was revisited and Jimbo suggested that it was a good time to get into the industry especially with recent drop. But keep in mind that the hurricane predictions of the year have been reduced so that catalyst is going to be less likely. But hey when is the weather man ever right? Among his recommendations were Occidental Petroleum (OXY) which was featured on the show, ConocoPhillips (COP) and Exxon Mobil (XOM). (I currently own Chervon (CVX) September calls. I betting on some global catalyst)

Lightening Round: I don’t really cover lightening round unless I see things that are important because it seems that most things in lightening round seem to lack momentum but I noticed that the health care stocks and rail stocks have been beated up and ignored. So here are two recommendations:

UnitedHealth (UNH): “You’re speaking to the choir here. Understand, I’ve owned this stock for a couple of years for my charitable trust.” “This is precisely the kind of stock that does well on a slowdown. … I want to buy the stock.”

Norfolk Southern (NSC): “Every railroad stock has been killed. … All of them are owned by very big hedge funds. … People say to themselves, ‘I guess all the hedge funds are getting killed.’ That is not true. … I still like the stock.” Also keep in mind, the oracle of Omaha, Warren Buffet is long railroads as well and may eventually add to his position.

Nastech Pharmaceutical (NSTK ) “I think that’s a better spec than your spec.” which refered to a readers speculator pick of SuperGen (SUPG) was inferior to this one. But a gamble is still a gamble. I try not to play with health stocks because of the unpredictability of anything in the sector which is hit or miss but I may make a post of Nastech soon.

MAD MONEY: PIGGISH CRAMER SAYS DOW TO 14,500!

Jimmy Cramer was still bullish on the market and outlined that most of the DOW components were up especially the techs  and reiterated that the DOW will go to 14,5000!

Pushing another exchange, crazy Jim Cramer pitched CME Group (CME) say that the newly merger company with Chicago Board of Trade or formerly CBOT will profit from volatility.  He says that the Justice Department should have even allowed them to merge.  Will this be better than his pick of NYSE Euronet (NYX)?

Cramer added he was wrong on a few stocks that got murdered on earning the last few days.  Those include Buffalo Wild Wings (BWLD), General Cable (BGC), and Mastercard (MA) who had great earnings but expectations were much too high.  You gotta sandbag people that’s how you beat the earnings.  Duh!  Anyhow,  he apologizes (takes a big man to say sorry) saying “I was a hog in all of these cases. I should have said to sell them all,” he said. “You can’t count on me to tell you when to sell; you can’t count on me not to be a hog.”  He says sell them now so avoid further pain.  Short trade?  
Gregory Milzcik, chairman and CEO of Barnes Group (B) was on the show and explained they were growing in the aerospace sector and growing in Europe which suggest the good point of international exposure but Cramer still said “Let the downgrades come, and then I would buy some…This stock’s just way too cheap when it gets down to $20.”

Lightening Round:

Starbucks (SBUX) “I don’t like the fact Starbucks put through that price increase … but same-store sales are anemic. … I’m putting it in the Don’tBuy camp, but if it goes to 23, 24, it will finally be cheap.” – (DISCLOSURE: I hold some calls but I’m selling tomorrow after it’s weak performance today)

FMC Technologies (FTI) and Oceaneering International (OII): “Both at 52-week highs…exactly what you need when you need hard-to-find oil. If I had my druthers going into hurricane season, it’s going to be OII.”  Cramer is still very high on the oil trade.  While all other oil stocks are being rocked (refiners and intergrated oil too), the oil explorers are still rocking.

Superior Offshore (DEEP): “I like this stock, and I have been dead wrong on it. … No ability to rally. I can’t back away; the fundamentals are good. Too cheap to sell.” Seems like Cramer is still with the oil trade but natural gas trader, Eric Bolling says stay away.  (DISCLOSURE: I own Chervon (CVX) calls)

MAD MONEY: CRAMER TELLS YOU WHAT TO SELL!

Mr. Cramer basically said you should sell all the buildiers and everyone related to them such as mortgage brokers, banks, and hedge funds.  He predicted that there will be more trouble with builders such as the speculation of a Beazer Homes USA Inc. (BZH) going into bankruptcy.

 ”The homebuilders can’t sell all the new homes, yet they are continuing to build…Many of these companies, including the public ones, will go under”

Here are some highlighted Stocks by Cramer:

Lululemon (LULU) – A Canadian althetic clothing maker that has a rather high PE – but I’ll do more research and get back to you.  It’s up 17% aftermarket because of the mention.  I would watch it.  

Garmin (GRMN) – Cramer seems to like it on strength. 

Allergan (AGN) -Cramer likes this as a baby boomer player because this company makes botox and other comestic fixes.  Did you know botox is used to stop over sweatting?  That’s a buy if I heard one! 

Under Armour (UA) – He calls this the next Nike but we’ll see if the global expansion plays out for Under Armour but there seems to be less competition in the branding sports apparel arena because it seems most kids find Nike and Under Armour “cool.”  I guess it’s the Apple affect a.k.a.  I will not buy another brand effect. 

Raytheon (RTN) Mentioned as one of Cramer’s defense plays. 

“Chipotle Mexican Grill (CMG) – Blew out earnings again as the company plans to open up to 110 more stores.  Cramer has always backed this stock and he was right but now it’s at a 52 week high with a 45 foward PE.  I would take some profits but I wouldn’t short this thing either because their burritos are freaking good.  

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MAD MONEY: Why Cramer Loves Defense Stocks

Today Cramer told everyone that a place to take shelter and to look for defense against this horrible bear market (which is hurting this blogger as well) is in defense. This is not a pun but he means defense stocks. He feels that they are cheap and they are going to be expanding with the Democrats in office because of security which seems like a paradox to me. Do Democrats and war mix?

Alliant Techsystem (ATK) was his second favorite defense pick. Alliant makes bullets for defense and has a growth rate of 1.3 which is below Cramer’s level of 2. He noted that there should be volatility because of earnings on Thursday so he recommends buying some now then some afterwards.

In Lightening round, Cramer suggested:

Factset Research Systems (FDS): was a buyout target: “I think this is a natural to be snapped up by someone.”

Costco (COST): “I think that Costco is a buy. It’s my favorite retailer. It’s literally my favorite retailer in a group that everyone knows I cannot stand.” – This was also Jeff Macke’s Favorite as well.

Fist Solar (FSLR): “We had a really big run in First Solar, but after the close, they reported what was just an in-line number.” Cramer basically said it was a SELL. “We must not be pigs.” Also I must note First Solar is trying to raise another billion buy selling stock so that’s not a good sign either.

MAD MONEY: DOOMSDAY MARKET PREDICTIONS

On his show, Jim Cramer suggested that in a worst case scenario that the builders, financials, and brokers were all to be sold if anything terrible occurs. His suggested sells in housing included DR Horton (DHI), Pulte Homes (PHM), and Toll Brothers (TOL) were all sells.

Cramer however, says all these problems can be avoid if the Federal Reverse cuts rates by one whole percent! Will that happen? How powerful is Mr. Cramer? He moves stocks but can he move the federal reserve? Of the two stocks that he owns that would benefit is Citigroup (C) and Goldman Sacks (GS).

However Cramer doesn’t believe that the doomsday scenario will ever happen and favors these sectors: oil and oil services, agriculture, machinery, aerospace, infrastructure and minerals.