Goldman Sachs (GS*)
General Mills Inc. (GIS*)
Heinz (HNZ)
Coke (KO)
Tootsie Roll
(TR)
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
Jim: This
market is all about
confidence... who do
investors have confidence in
and who they are worried
about. The market has
spoken. It has put
Goldman Sachs (GS*)
in the Sell Block...
You look at what happened to
Goldman's stock today... at
one point, it was down like
$85... that's through book
value... That's a
vote of no confidence if there
ever was one...
It's not a vote that I
necessarily agree with...
In fact, since I own it for
my charitable trust,
and have since I started the
Trust, I obviously don't
believe in the market's
judgment but, not only that, I
have faith in the management
of the firm... something the
market says is dreadfully
wrong... even GS* has no
home equity loans, or car
loans, or second...
whatever... any of the
nonsense that a
Wachovia Corp. (WB)
or a
Wells Fargo (WFC)
- that are so loved now -or a
Washington Mutual (WM),
which is... you know,
puh-lease...
But I'll accept Mr. Market's
judgment... Remember, I
am on the hunt for bull
markets wherever I can find
them... and, right now,
the bull says don't go with
the investment banks, go with
the food banks... and that's
what the market has confidence
in...
That's right... the food
bank...
General Mills Inc. (GIS*)...
isn't that the perfect
example?... It reported
a great quarter yesterday.
The stock's flirting with a
52-week high... Or how
about the
Heinz (HNZ)?...
Right, let's do the "catch up"
trade... That stock, at
one point today... was
yielding a little more than
3%... better than
Treasuries...
The market has declared that
GS* is in the Sell Block, and
that makes GIS* a buy... and
that's why I'm calling
companies like General Mills
the "new banks"...
The market's decided we don't
need investment banks
anymore... that it's an
unprofitable business... it
doesn't matter anymore what I
think...
We need food banks... like
GIS*. That's where
people are putting their
money.
Now, obviously, you can't run
the economy without investment
banks, but this market's
verdict for now - if not
Cramer's - is that you've got
to sell them...
Now, the market has faith in
the "really old banks" so to
speak... commercial banks...
the ones that rely on
deposits... not money in
hedge funds... the ones
that I've been recommending
like
US Bancorp (USB)
and
Wells Fargo (WFC)...
either hitting a 52-week high
or coming close... It
has confidence in deposit
banks... just not investment
banks...
Now, I've been a huge
supporter of the commercial
banks, like the Fortress
Four... the
US Bancorp (USB),
Wells Fargo (WFC),
Bank of America (BAC)
and
JPMorgan (JPM*)...
and I added
BB & T Corp. (BBT)
recently, and I added
Wachovia Corp. (WB)...
If I were one of these
companies, you know what I'd
actually do right now?...
Ready... I would
consider buying Goldman
Sachs... It's book value
is for real, and we're always
going to need investment
banks... and the deal could be
pretty lucrative with a strong
deposit base to fund the
takeover... and they're
allowed to now, after a change
in the rules that they snuck
in...
It's kind of funny that, last
week, all the talk was about
how Goldman might buy
Wachovia. Now it could
be the other way around!...
It's so nuts up here that, get
this one...
Citigroup (C)
should use its strength to go
raise equity... C'mon guys...
I'm back on if you do it,
right... never put you on the
Wall of Shame if you
raise a little money... and
Citi should go buy Goldman...
I said it.
But this market likes the "new
banks" just as much, if not
more, and that's why you can
see the market likes companies
like HNZ and GIS* and
Coke (KO)...
which are all benefitting from
the big decline in
commodities. These are
companies that can borrow
money recklessly, endlessly...
whatever they want... because
they have strong, solid
consistent earnings streams...
and they make a profit, pay it
back, and have a good
dividend.
Hey, that sounds like kind of
what a bank's supposed to do,
right?...
Right now, the "new banks" are
beating the old ones... even
the deposit banks that the
people have more faith in,
because the market has
confidence in them...
confidence.
If we get a recession... I
don't think we will...
If we get a severe one, I
think we could have a big
slowdown... these are
the stocks that will thrive...
total "fallout shelter"
names...
When I think of GIS*... hey, I
think of Hamburger Helper, a
real "trade-down" brand if
there ever was one... I
lived on this when I lived in
my car... People don't
want to go to the Cheesecake
Factory... they want to have
in-home Cheesecake Factory!...
They want Gold Medal flour...
They don't want Denny's grand
slam... they want "the
breakfast of champions"
(Wheaties)...
The market is speaking, and we
hear, even though we don't
necessarily agree...
In Wheaties, not leverage, we
trust...
. . . .
.
The Bottom Line!:
The market says
Goldman Sachs (GS*)
belongs in the Sell Block, so buy the
"new banks"...
General Mills Inc. (GIS*),
Heinz (HNZ),
Coke (KO)
and
Tootsie Roll
(TR)!
I rest my case.
. . . .
.
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Final Segment 2
Final Segment
2
Title:
'Mad Mail'...
. . . .
.
Featured
Stock(s):
See comments below...
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
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price
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day
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price
next
day
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each)
Q:
With oil falling
and the new SHO
list, will this
put a floor
under CALM?
It would seem
the input costs
for feed will go
down,
transportation
costs will go
down and the
pressure on the
stock should go
away.
There is always
demand for eggs,
regardless of
the economy...
perhaps more so
in a poor
economy?
Jim:
Now, by the way,
you can find
this SHO list,
of the companies
that have been
overly shorted,
on the Nasdaq
site
here »,
or the New York
Stock Exchange
site
here »...
You're
absolutely
right.
It's a
profitable
company.
It should cause
a floor. I
had recommended
Panera Bread Co.
(PNRA)
on this show.
That was one
that was
over-shorted,
and PNRA went
up, at one
point, 20
points. It
is up $10 from
when the list
was issued.
Sears (SHLD)
is also way
overly-shorted,
that's, once
again,
profitable.
I'm not going to
recommend that
you go buy
unprofitable
companies
because of the
SHO, but there
are just too
many of these
stocks that are,
frankly, very
profitable, that
have been kept
down by shorts
illegally, and
now they're
being gone
against...
Q:
Mr. and Mrs. (T.
Boone) Pickens
have just sold
up to a million
shares of CLNE.
What kind of
traitor-ish
activity is
that? They
ask us to join
them and we did,
and then they
SELL!
Jim:
That CLNE is on
the SHO list...
Well, I don't
like to see
that. I
don't know what
the
circumstances
are as to why he
sold... I mean,
maybe he's
hurting...
you know, maybe
he needs
money... I don't
know.
Remember, it's a
big speculative
stock.
It's a big
speculative
stock that I
like, because I
believe in
natural gas, as
I said...
na
na
na
Mad Mail
General question
about Securities
and Exchange
chairman,
Christopher
Cox...
Q:
I saw you
yesterday on Mad
Money talking
about the Uptick
Rule...
How is it
possible that
Christopher Cox
(SEC Chairman)
cannot grasp the
distinction
between short
selling and
allowing short
sellers to
dictate price?
A major cause of
the credit
crunch has got
to be the
imbalance
created in the
marketplace when
a motivated,
price-insensitive
seller (short
sellers), and
those with
capital to
invest (with
cash on the
sidelines) each
wanting the same
thing:
lower prices!
Why would
capital come in
when the short
sellers pay them
to wait?
Jim:
It's like, if I
were a financial
terrorist, I
know that I
would come here
to do this
because of Cox.
Look... he's a
public servant,
he's way over
his head.
He didn't
understand.
He has some
academics that
didn't
understand.
We had a Laissez
Faire
administration
that didn't
believe in any
regulation at
all, and we've
now spent $900
billion, and
we've
confiscated
major American
companies, in
part, because of
this kind of
incompetence.
And he should
step down.
I'm using my NFL
rule, which is
that, after a
couple of games
that they lose,
they fire you.
Hey, not so bad
for the SEC
either.
[
end of final segment ]
Go to the SUDDEN:DEATH
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Please read his comments to
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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.
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.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
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...
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.
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).
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.
See more
"Cramerisms" & other
financial phrases
here >>
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Charitable Trust at:
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upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
FastMoneyRecap:
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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
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