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Tuesday, 04/29/08
Posted 04/29/08, 10:51
pm ET |
(Scroll down to see Jim's
comments below) |
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Today's date:
Tuesday, 04/29/08 |
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Dow Jones: |
12,831 |
- 39 |
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NASDAQ: |
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2,426 |
+ 1 |
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S&P 500: |
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1,390 |
- 5 |
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Opening Segment 1
Title: |
'Food For Thought'
CEO Interview
Gary Rodkin, CEO
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. . . .
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Featured Stock(s): |
ConAgra Foods, Inc. (CAG)
See CAG's official
website
here.
See the Yahoo!
Finance profile for
CAG
here.
See Opening Segment 2,
below...
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After this segment, you
can see Jim's Lightning
Round picks
here... |
Jim's Comments BEFORE
the interview:
In the wake of the
stunning Wrigley (WWY)
bid yesterday, I'm asking
myself whether the whole
packaged foods group has
become too darn cheap...
WWY is going out, north of
30x earnings... That's
like
Google (GOOG).
It was trading at 27x
earnings, just going in
before the Mars company
made its bid.
Tonight, I want to figure
out what this means for
the rest of the group, and
what it means for food in
general. So, first we're
going to take a look at
the cheapest of the
packaged foods companies
that I follow... and the
company is named
ConAgra Foods, Inc. (CAG)...
CAG is selling its
commodities trading
business for what is a
windfall... $2.1 billion.
It will make it more of a
food play. This is
probably the right move in
the long run, although of
course, commodity trading
has been red-hot and, in
light of the WWY bid, it
looks better short-term.
But the commodities
business has been a solid
source of profits to this
company, as well as a
bug-a-boo to its own costs
of goods.
It's been a trying time
for this company... Food
prices... the raw
ingredients have gone so
high last quarter that...
Well, the commodities
trading business grew
sales at 92% versus 21%
for the whole company.
But... selling it was a
good short-term move,
because you're selling it
at a high...
Now, let's fall on our
swords here... I
recommended CAG before...
on October 26th of 2006...
and March 28th of 2007.
We're down... we're down
badly. We're down 10% and
6%, respectively.
Why hasn't this worked? We
liked CAG, because it was
a turnaround story. We
thought it could increase
profits by saving on
costs, but input cost
inflation -
Wall Street jibberish for higher food prices - threw
a monkey wrench into that
plan...
Now, CAG is trying to pass
on some of the cost
increases to consumers...
It recently raised prices
by 5% across its entire
consumer food business.
But I don't know if that's
enough to keep up with its
rising costs...
But then again, CAG is
trading at a mere 14.5x
earnings. It looks very
cheap, especially in light
of that WWY bid. I mean,
it could catch up to its
peers, after it finishes
the sale of its
commodities trading
business... but I'm not
entirely sure of which way
this stock will go, given
the fact that I got it so
wrong earlier... The
Wrigley (WWY)
bid makes me more
optimistic, but we never
recommend stocks on
takeovers here. We
recommend stocks on
fundamentals.
We need to do more
homework, so I need the
perfect tutor... I need
CAG's president and CEO...
Gary Rodkin. He knows the
business like the back of
his hand. Mr. Rodkin,
welcome to Mad Money...
. . . .
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Jim's Comments
AFTER
the interview:
The food business is a
tough business. This stock
is cheap, and priced as if
you're going to keep
seeing ethanol taking the
costs up. If you think
that we are at a peak in
the price of food, you buy
ConAgra Foods, Inc. (CAG).
If you don't, you can't
pull the trigger.
. . . .
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Stock Snapshots - Includes
all stocks mentioned above |
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Jim
Cramer's
rating on
this stock |
STOCK
SYMBOL |
Closing
price
that
day |
Opening
price
next
day |
Full Company
Name/Comments
(see comments above for
each) |
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CAG |
23.12 |
na |
ConAgra Foods, Inc. (CAG)
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See all of tonight's stocks'
latest quotes on
Yahoo! Finance |
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Most popular
investing books ordered:
(click any book to see at
Amazon.com) |
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Final Segment
2 Title: |
'Mad Mail'... |
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. . . .
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Featured
Stock(s): |
See comments below... |
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After this segment, you
can see Jim's
Sudden:Death picks
here... |
. . . .
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■ |
Stock Snapshots - Includes
all stocks mentioned above |
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Jim
Cramer's
rating on
this stock |
STOCK
SYMBOL |
Closing
price
that
day |
Opening
price
next
day |
Full Company
Name/Comments
(see comments above for
each) |
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na |
na |
na |
Mad Mail
General question
about shorting
stocks and the
uptick rule...
No specific
stocks
mentioned.
Q:
When you
started your
campaign about
shorts and their
manipulation of
the market, you
said you thought
it would go
nowhere. Well
the headlines
the other day
said the SEC was
going after a
short seller
trader who was
doing what you
said, with
rumors and
shorting and got
caught. Although
this guy was a
small fish with
a gain of only
$25,000, you at
least have
brought this to
the attention of
the public,
which in turn
has caused the
SEC to react. We
won't despise
small
beginnings.
Thanks for
looking out for
the citizens of
Cramerica.
JJC:
We got about a
hundred emails
like this... The
SEC is sending
out form
letters...
Here's what goes
on... If you
want to short a
stock, you're
supposed to call
a thing called a
stock loan...
borrow the
stock, then sell
the stock, then
buy it back
because you
borrowed it...
to cover...
that's known as
covering the
stock. You're
supposed to be
sure you can
borrow the
stock... People
don't do that
anymore... It's
a law! But the
government
doesn't
prosecute the
law... They
leave the thing
open... guys jam
down stocks...
All I can tell
you is it's not
as simplistic as
them bringing
back the uptick
rule. We also
need the
government to
enforce the rule
about borrowing
stock... Look,
this stuff is
outrageous.
Write the SEC...
I still hold...
that they don't
give a darn
about what we
say... but
that's just
because they're
the government,
and we're just
the people.
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[
end of final segment ]
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Go to the SUDDEN:DEATH
SEGMENT from
tonight's show
here >>
See current quotes on Yahoo!
Finance from
tonight's show stocks
here >> |
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Symbol keys: |
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A Charitable Trust stock.
- An asterisk next to a
stock symbol indicates that
Jim mentioned it is a stock
that he manages within
his
charitable trust portfolio.
You can see the complete
portfolio
of stocks
here >> |
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Thumbs up - indicates
he would buy the stock or,
at the very least, not sell
the stock. We do our
best to interpret Jim's
opinion on stocks, as we
think it is indicated by his
comments during the show.
Please read his comments to
decide for yourself. |
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Thumbs down -
indicates he has said not to
buy or to sell the stock,
based on his comments
We do our best to interpret
Jim's opinion on stocks, as
we think it is indicated by
his comments during the
show. Please read his
comments to decide for
yourself. |
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Back up the truck -
indicated by Jim, when he
says the stock is so good,
that he would do a
'mon-back' on the stock...
In other words, this is the
sound someone would say to a
truck driver, "Come on
back... " as he is "backing
up the truck" to load up on
his cargo. Translation
for buying stocks:
This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point. |
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Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
to opine on... He then
indicates he is stumped and
will have to come back to
it, after he does some
homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about. |
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Definitions of key phrases
used by Jim, known as
"Cramerisms": |
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Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back... |
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Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you. |
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Definition: 'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock). |
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Definition: 'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point. |
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See more
"Cramerisms" & other
financial phrases
here >> |
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Helpful Websites: |
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See the stocks currently
known to be in Jim Cramer's
Charitable Trust at:
jim-cramer-charitable-trust-stocks.com |
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See the stocks currently
known to be in Warren
Buffett's portfolio
of
stocks at:
warren-buffett-portfolio.com |
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Stock Homework 101:
This is an excellent
upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
StockHomework101.com
This site is coming soon.
Thank you. |
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FastMoneyRecap:
This site will be a quick
summary of recommendations
made by the great Fast Money
TV show crew, that will
offer you a unique service,
to compare their picks to
Jim Cramer's past comments
about those stocks.
Fast Money Recap - Trades
for next day...
Compare these picks to Jim's
comments for the same
stocks. |
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© 2005-2007 MadMoneyRecap.com ■
Important disclaimer: This site is
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Cramer, and is not associated with
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thumbs up or thumbs down
indicators are not always clearly
indicated on the show and are
interpreted by us as accurately as
possible. Some comments have been
edited for brevity and clarity,
and extraneous material omitted. Please rely on watching
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and reading the text of the
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on this site should not be used to
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cannot be guaranteed. Please
consult with your own financial
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