MAD MONEY: CRAMER NEGATIVE – GROWTH STOCK PICKS AND MORE DEFENSIVE STOCKS

Once again, Jim Cramer called out the Big Ben saying that he’s just killing the economy but also placed blame on the hedge funds who wasn’t very transparent about their assets.  Right now what is happening is that all these funds are selling anything they can to cover their redemptions and provide liquidity so that they don’t need to reveal their true assets but Cramer said that this should go on till the end of August.  Great, another two weeks of bloody selling.  We’ll see in September if Ben will listen who is consider an old school economist.  In addition to the food and beverage stocks, which he believes will “work for the next six months,” he recommended high-growth stocks like Garmin (GRMN) and Chipotle Mexican Grill (CMG).

The current problem with Garmin was that there was too much demand and not enough product but they were fixing its problem of limited manufacturing capacity, Garmin recently opened up a factory in Taiwan, its third factory. Cramer called Garmin a “buy at $85 or $87.” and Garmin closed just above $91 today.

Cramer Picks:

Texas Instruments (TXN). The company is buying back stock “hand over fist,” and it’s not expensive, he said. Plus, “tech is seasonably right.”   Cramer seemed rather confident that TXN would rise in a negative market.

Despite American Standard (ASD) falling into the toilet after Cramer said that ASD would go higher because of break up value but he believes that the stock is OK but I guess another victim of subprime since its housing related but note that Buffet has owned it for a long time too.

HMS Holdings (HMSY): “We’ve always liked this. This is one of those companies … that do cost control for medical. Whether it be HMS Holdings, whether it be MedcoHealth Solutions (MHS), up today, whether it be Cardinal (CAH), down just a little bit — these are all in bull market mode.”  These were some health picks that are usually defensive on down market.

“Every bank is for sale here. … I cannot recommend a bank on this show. I can’t because I like other sectors so much more. Don’tBuy Don’tBuy Don’tBuy.”  But then Cramer recommends on the same show – Downey Financial (DSL): “Downey’s a savings and loan located in California, which is ground zero for the Federal Reserve. … Downey is a stock that will fly up 20 points when the Fed decides to blink. … I think Downey’s book value is pretty clean. I am surprised it got down to $47. I can’t back away here.”

Like for the last two weeks, Cramer says “I think that EMC (EMC) is a better way to play VMware right now. … VMware is a great company, but $60 is my target, and we’re already up another $7 today.” Cramer owns EMC for Actions Alert PLUS, his charitable trust.

Hawaiian Electric (HE): “I like the utilities here. This one’s got a very high yield. It’s in a growth market. … We know that Akamai’s (AKAM) the wrong thing. I stick with Hawaiian Electric.”  Utilities is a very good pick for this environment as well but some utilities will have to come down a little then you get a nice fatty dividend!

Freeport-McMoRan (FCX): “Indonesia wants to get more money from Freeport. … Freeport is a lot like BHP and RIO. This is a gold company and a copper company in a deflationary spiral mandated by the Federal Reserve. … Am I backing away from it? No. … I will say bull to Freeport.” Cramer owns Freeport for Action Alerts PLUS.  Commodities seems very good as a defensive play as well because they have real assets to back them up and don’t forget about the world or China demand!