See RAH's official
investor relations' site
here.
See the Yahoo!
Finance profile for
RAH
here.
After this segment, you
can see Jim's
Sudden:Death picks
here...
. . . .
.
Jim:
We only rallied today, because
the government took a
financial apocalypse/Great
Depression off the table...
We've still got to be
opportunitistic...
Remember, this move did not
create jobs, it did not give
you a raise... We're
still living in a world with
lots of foreclosures.
The rally may have made you
feel better but, if you're
losing your job, or just the
prospect of losing it, it
makes you feel worse.
So, with that in mind, we've
told you what you need to do
with this rally... we want you
to do some selling on Monday.
We've explained why the
government had to do this and
now, in true Mad Money
fashion, we're giving you
something to buy...
...and what we're giving you
to buy is... Ralcorp
Holdings Inc. (RAH).
. . . .
.
You probably don't know
RAH...
RAH is the
Family Dollar Stores Inc.
(FDO)
store to General Mills'
Macy's or maybe
Neiman's... and FDO
is near a 52-week high...
Look, we like
General Mills Inc. (GIS*).
I own it for
my charitable trust... but
we also remember what that
company's CEO, Ken Powell
said, just earlier in this
week, that a lot of people
may start trading down as
money gets tight...
I mean, they're buying the
Hamburger Helper, right...
And RAH is the ultimate
food trade-down play...
RAH is down $1 today, off
the downgrade on
valuation, from BB&T
Bank... That's a
bank I like, but I thought
the downgrade was total
garbage... All it
does it give you a great
entry point.
So what exactly does RAH
do? This is a
private-label food
company. 49% of its
sales come from private
label. You go to the
supermarket, and you see
that discounted
supermarket brand of
cereal... RAH is the
company that makes it.
The private-label stuff
sells at about a 20%
discount to
Kellogg Co. (K)'s
cereals, and a 36%
discount to General Mills'
cereals. As
consumers feel poorer,
they buy this off brand
stuff, because it's
cheaper, but tastes pretty
much the same...
With more and more people
out of work, this
trade-down play should
only get better...
. . . .
.
The Bottom Line!:
The banks may be safe, the next
Great Depression averted... but
unemployment is still on a roll and
incomes are stagnant... It looks
like people are going to be trading
down... It already has started... and I
think they should trade down, and you
should buy Ralcorp Holdings Inc.
(RAH).
. . . .
.
■
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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
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
Q:
Mr. and Mrs.
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:
Mrs. Pickens
happen to call
me... she and
her husband are
big watchers of
the show... and
called me right
before the
show... no set
up here... and
said, listen, I
sold that
stock... she's
talking now...
that was her
stock, it wasn't
his stock...
She sold it
because she's
backing
Proposition 2 on
the California
Ballot, which is
an animal
rights...
basically, an
animal
protection
group, and she's
also working on
some legislation
to protect
horses.
She's an animal
enthusiast.
That's what she
told me.
And it's her
stock, it's not
Boone's...
It's worth
pointing out.
na
na
na
Mad Mail
The "wash rule"
for taxing stock
gains.
Q:
Last night, on
your show, you
recommended that
your viewers
take some stock
"off the table"
while stocks
rally. I
have been buying
some stock into
the previous
downturn, and to
sell partial
positions now
would subject
each position to
the wash sale
rule. Is
that something I
should pay
attention to?...
Jim:
I'm not a tax
guy. I am
just telling you
what I say
economically,
okay. I
don't want you
to get caught
with too much
inventory at the
bottom.
This is a very
complex issue.
You should
consult your tax
guy, but the
idea is that I
care about the
fundamentals.
In 2000, when I
was telling
people to sell
Nasdaq, left and
right, over and
over and over
again, all I
heard about was
tax... I don't
want to pay
taxes.
Well, they lost
everything, and
they don't have
any taxes to
pay.
Q:
Does the
government
rescue of the
financial
sector,
including the
temporary ban on
short selling
take GS* out of
the Sell Block?
Jim:
GS* was never in
the Sell Block.
I own that for
my charitable trust, and I've
owned it since I
started the
trust.
What I was
saying is, is
that you can
understand that
investment banks
are now hated by
the market.
I didn't sell.
Remember, in the
piece, I said
that I didn't
believe the
market in this.
But the market's
telling me to
sell GS*.
I'm not
listening.
[
end of final segment ]
Go to the SUDDEN:DEATH
SEGMENT from
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Finance from
tonight's show stocks
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Symbol keys:
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
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here >>
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.
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.
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 >>
Helpful Websites:
See the stocks currently
known to be in Jim Cramer's
Charitable Trust at:
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...
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.
