MAD MONEY: CRAMERS SAY THERE WILL BE A DISASTER DAY

After the market came back from a 340 point drupping, Cramer pointed out some good picks in financials.  “Wells Fargo (WFC) could survive the post-Bernanke world and head higher,” said Jim Cramer on his “Mad Money” TV show Thursday. “It is the great speculative play that should prosper” because it has  a good dividend and is diversified but he would buy between $32 to $34 (Wells Fargo close at $35.40 today).  In the long term, the survivors will “long-term beneficiaries” of Ben Bernanke’s term.  But overall he still said that financials were still a bad play and pointed out some short ideas such as Washington Mutual (WM), H&R Block (HRB), Capital One Financial (COF) and Friedman Billings Ramsey Group (FBR).

In terms of the market, Jim said that you shouldn’t sell during the panic like he did in the low points of 1987 and 1998 and it’s not “time to bail” but he gave some sell recommendations like selling Vmware (VMW) and to sell off minerals even after taking the losses.  Also he mentioned that the retail industry is getting weak so that’s a sell too because spending could be weak under this fed.  Other sells were Lamson & Sessions (LMS) and Six Flags (SIX) were are having attendance problems at that parks.  But Cramer predicted that we’ll continue to see ups and downs until a market disaster or “capitulation” so it’s better focus on long terms buys and not trades.

Cramer pointed out that although KKR Financial (KFN) and Thornburg Mortgage (TMA) are two of the higher-paying dividends, they aren’t quality because the price is going down making the yield go up which means that it jeporadizes the yield when profits go down so when they stop or cut dividends, the stock loses the floor on it.  Instead he recommended cigarrette maker, Reynolds American (RAI) which pays a  “nice dividend,” at 5.5% yield or Altria (MO), which he owns for his charitable trust.

LIGHTNING ROUND – Highlights.

Crocs (CROX): “I will always keep some Crocs on hand. … I like the stock. It’s had a nice pullback. It’s having a nice quarter. … I want to reiterate that Crocs is still in the growth phase. I’m not abandoning the story.”  – He’s sticking with it but he just said he’s down on RETAIL!  WHAT!

Acadia Pharmaceuticals (ACAD): “I got behind Acadia awhile ago. It was my speculative play, and then I switched to Nastech Pharmaceutical (NSTK). … That’s the one you want to be in.”   Yes the nasal stock again!

Apple (AAPL) “I think Apple’s come back enough. I like it. It’s one of my four horsemen. I know it’s been crushed.”   Sticking with it.  iPhone is still a top seller.

Wells Fargo, WFC, H&R Block, HRB, Capital One Financial, COF, Friedman Billings Ramsey Group, FBR, Apple, AAPL, Acadia Pharmaceuticals, ACAD, Nastech Pharmaceutical, NSTK, Crocs, CROX, Lamson & Sessions, LMS, Six Flags, SIX, KKR Financial, KFN, Thornburg Mortgage, TMA, Reynolds American, RAI, Altria, MO