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Friday, 02/01/08
Posted 02/03/08, 11:57
pm ET |
(Scroll down to see Jim's
comments below) |
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Today's date:
Friday, 02/01/08 |
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Dow Jones: |
12,743 |
+
92 |
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NASDAQ: |
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2,413 |
+ 23 |
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S&P 500: |
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1,395 |
+ 16 |
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Opening Segment 1
Title: |
'Cramer's Game Plan
For Next Week'
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. . . .
. |
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Featured Stock(s): |
Wal-Mart Stores Inc. (WMT)
Union Pacific Corp. (UNP)
Burlington Northern Santa Fe
Corp. (BNI)
Norfolk Southern Corp.
(NSC)
CSX Corp. (CSX)
J. C. Penney (JCP)
NYSE Euronext (NYX*)
Microsoft (MSFT)
See Opening Segment 2,
below...
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JJC: If you want to
make money trading in this
market, there's one thing
you need to know... Notice
I said trading... meaning
we're talking about quick
short-term gains...
not investing.
Which, contrary to
virtually everything
written about this show,
or will ever be written
about this show, because
it's Cramer... is Mad
Money's bread and
butter...
What is it?...
You have to know that the
move in the most
downtrodden sectors...
retail, the banks, the
homebuilders... trumps
everything.
When it comes to the
market's new leaders,
companies don't matter at
this point in the cycle.
These companies are all
doing really poorly...
It doesn't matter.
Some of them would be bad
businesses, even if the
economy was en fuego
(i.e., really hot, on
fire)...
Right now, that doesn't
matter...
You probably think
rationality doesn't
matter. And that's
the core of my Game Plan
for this market...
. . . .
.
This move is so powerful,
so palpable... so
intriguing... to
those who have been around
long enough... that it is
forcing me to grant
clemency to Lee Scott, the
CEO of
Wal-Mart (WMT).
And, until today, a member
in bad standing of the
Wall of Shame... which is where we
put the absolute most
worst, most incompetent,
most clueless CEOs...
These are chief executives
who, by their own
presence, destroy value...
. . . .
.
Lee Scott's as bad as they
are, but I've got to
remove him today (from the
Wall of Shame), because it just
doesn't matter... it
doesn't make any
difference.
People shop at Wal-Mart
when times get tough.
I believe that
Wal-Mart (WMT)
is going higher, perhaps
much higher...
You know what I think?...
You could put... oh man,
and this is a statement...
You could put one of those
Celebrity Apprentice
(Donald Trump's TV show)
castoffs in charge of WMT
right now, and it wouldn't
stop it. That's how
powerful this move is...
. . . .
.
Even the shock of a much
weaker-than-expected
employment number today
couldn't stop it.
That number let us know
that the Fed is still
behind the curve, even
after 1.25% of cuts in two
weeks.
How could these guys not
have known that we were
heading into a slowdown
this big? How could
they not have known that
the employment would...
well, just fall off a
cliff?...
But, you know what?
It doesn't matter.
Let me tell you why...
. . . .
.
I have never seen a more
potently-bullish
combination of a panicked
Federal Reserve - with a
chairman who is terrified
that he'll be sent back to
reside over a Princeton
eating club, if he doesn't
lower rates fast enough...
a desperate Republican
party, that's sick of
President Bush telling us
about how sound the
fundamentals are... and
raving bunch of Democrats,
who want to put an iPod in
every pocket, and a
chainsaw in every
garage...
Money that had been parked
in cash is now flooding
into stocks, because
dramatically-lowered
interest rates will give
people an excuse to get
out and buy stocks.
Buy, buy, buy!
. . . .
.
They buy the market...
they buy the S&P 500 Index
Funds... they buy
individual stocks... which
explains why this rally is
so darned broad-based...
But the point is, in
addition to what the cuts
will do for businesses,
they also lead to more
money in stocks... which
sends everything higher,
and is totally
turbo-charging this move.
That's why the market just
won't quit, no matter how
poorly actual companies
are doing...
. . . .
.
If you look at stocks that
have reported shortfalls,
they're screaming
higher...
Freeport-McMoRan (FCX*)
is up 20 points, since its
shortfall...
McDonald's
(MCD*)
is up 4 points, since its
shortfall...
CVS Caremark Corp. (CVS*)
is up almost 5 points,
since its shortfall...
You would think a
shortfall meant something
good... but the
truth is, this move is too
strong and too big to
notice this little stuff.
I know, because this has
happened before. I
can quote you, chapter and
verse, how the retailers
ramp, everytime the Fed
panics...
You just heard me endorse
WMT...
. . . .
.
So many stocks are working
so well here. I
mean, think about it...
TJX (TJX)...
Hey, how about Carl Icahn
liking J. C. Penney (JCP),
after everyone said, let's
short it, because
Cramer recommended it?...
Carl Icahn's smart.
He knows that J.C. Penney
sells more than just
Venetian blinds...
But how about these other
companies that are
supposed to go down in a
recession?...
I mean, rails... rails...
The rail stocks!...
There's a coal shortage
worldwide... a grain
shortage... and,
when you hear that, you
need to think
Union Pacific Corp. (UNP),
Burlington Northern Santa Fe
Corp. (BNI),
Norfolk Southern Corp.
(NSC)
and
CSX Corp. (CSX).
[See more of Jim's
comments about the
increasing demand for coal
and the predicted uptick
in demand to get it to the
ports for shipping to
China and others, from
today's
Stop Trading segment
here... ]
These happy oligopolists
don't have enough cars to
ship the stuff...
. . . .
.
Agriculture...
I know there's supposed to
be a worldwide slowdown.
But that's because food
costs too much, and we've
decided to mandate those
high prices for our love
for ethanol...
Not a single politician
has yet called for an end
to this madness...
. . . .
.
But nothing is like the
banks... nothing is
like this group that is so
hated and shorted by all
the so-called smart
money... nothing.
Ever since our stress
index bottomed, these
stocks have gone up almost
every single day.
Take
Capital One
(COF)...
yeah, the credit card
company. They loan
at a huge interest rate on
their credit cards.
Their defaults aren't
rising nearly as badly as
I thought they would...
and the price that they
have to pay for the money
they lend you?...
It's been coming down.
Well, that's deposit base,
right... That's
fantastic. That's
the best of all possible
worlds. No wonder
the company raised its
dividend and boosted its
buyback this week, when
everyone thought it would
slash its dividend and
stop its buyback...
[Ed. note: Jim knows
the COF stock very well,
as it was, until recently,
held in his
charitable trust and he may
possibly buy it back...but
that is only our
speculation.]
. . . .
.
You even get a
continuation of a rally
in... oh man, hold your
nose...
Citigroup (C*),
Merrill Lynch
(MER),
Washington Mutual (WM)...
perhaps the biggest
beneficiaries of the plan
that people have been
working on behind the
scenes - and my plan
frankly - to bail out the
insurance arms of the
Ambac
(ABK)'s
and the
MBIA (MBI)'s...
I believe the plan will
work... these stocks will
go higher...
Now, if you want my pick
on the best trade, on all
this activity next week,
and it's active... I
think it could be, yes,
NYSE Euronext (NYX*),
a company that's on fire,
with a stock that seems as
flammable as asbestos, and
just as toxic...
If it's still at this
price on Monday, I'd buy
it, because it reports on
Tuesday... Unlike
the old days, when the
CEOs chose not to be on
the call... Duncan
Niederauer (CEO of NYX*)
will be on the case, and
he knows how to tell the
tale...
And, while I'm at it... I
would buy Mister Softee
(i.e.,
Microsoft (MSFT),
if it goes below $30.
. . . .
.
The Bottom Line!:
For
now, I think you have to
trust the playbook, trust
the strength of this move.
These stocks are very
strong, even when the
companies aren't.
And take
Wal-Mart (WMT)
to $55...
[See Jim's 2nd Opening
Segment stock picks
below... ]
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See all of tonight's stocks'
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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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WMT |
51.18 |
51.00 |
Wal-Mart Stores Inc. (WMT)
News: Jim has decided that
he is granting clemency to Lee
Scott, the CEO of WMT from his
CEO Wall of Shame...
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UNP |
127.97 |
127.45 |
Union Pacific Corp. (UNP)
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BNI |
88.30 |
88.99 |
Burlington Northern Santa Fe (BNI)
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NSC |
56.29 |
56.21 |
Norfolk Southern Corp. (NSC)
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CSX |
49.93 |
49.93 |
CSX Corp. (CSX)
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JCP |
48.50 |
48.42 |
J. C. Penney (JCP)
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NYX* |
81.28 |
81.50 |
NYSE Euronext (NYX*)
Timing to buy: Buy on
Monday, before it reports on
Tuesday.
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MSFT |
30.45 |
30.48 |
Microsoft (MSFT)
Price target to buy: Below
$30.00
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Mutual-Fund-Holdings.com
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Focus Fund
Top 25 holdings - The No.
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Fund in 2007
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Opening Segment 1
Title: |
'Under The Radar'
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. . . .
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Featured Stock(s): |
Gushan Environmental
Energy Limited (GU)
See GU's official
website
here.
See the Yahoo!
Finance profile for GU
here.
See Opening Segment 2,
below...
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JJC:
Speculative Friday... and,
for Speculative Friday,
how about an
under-the-radar play on
three of what had been -
and I think could become
again - hottest themes out
there... China, Energy,
and The Environment...
All three of these have
suddenly gone out of
fashion...
I am confident that they
will be back, as
profitable firms never go
out of style completely,
and the one that I have is
profitable...
Don't expect China,
energy, or environmental
friendliness to stay out
of style for too long...
And, when they come back,
Gushan Environmental
Energy (GU)...
that's right, GU... is the
stock that touches on all
three...
Even if I'm wrong about
energy and the
environment, you have to
believe these Chinese
markets will start to pick
up, post-Chinese New
Year... With the
final ramp, heading into the
Olympics... that alone
should boost GU...
So, what exactly is this
company?...
GU is the largest producer
of biodeisel in China.
I know biodeisel hasn't
really caught on as a food
or a fuel in this
country... thanks to
our... politically
mandated marriage to
ethanol, even as biodeisel
is superior on every
metric.
Diesel is becoming the
fuel of choice in China.
And, even if it weren't
the Chinese communists
(i.e., what Jim calls the
ChiComms), with an
insatiable demand for
energy, I'd still go for
this one... They'll
take it in any form they
can get it...
With GU, they're getting
it from garbage...
This company turns the
vegetable oil and animal
fat that get thrown away
into the fuel...
GU's use of garbage is
actually part of the
reason why this company is
profitable, even as
biodeisel sounds like the
kind of hippy pipedream
that could never turn a
profit in America...
Not only is GU making
money... it's also growing
rapidly. It should
grow its earnings by 48%,
year over year this
year... and its long-term
growth rate is 25%...
better than a sharp
chopstick in the eye!
The business is real!...
It looks like it works,
and it's growing.
. . . .
.
If you want to take a
big-picture view, GU is
another play on the growth
of the bourgeoisie in
China. More people
with more money are buying
a lot more cars. At
the same time, it also
means more people who have
the time and money to
worry about the quality of
life, and demand clean
air, which requires clean
fuels!...
The Chinese government has
actually mandated that, by
2020, 15% of the fuel used
in China will be
renewable, like biodeisel
and, believe me, you don't
want to get in the way of
a Chinese government
mandate... They may
not be able to make the
trains run on time there,
but the leaders of the
party have actually
decided to clean up the
environment, and they're
pretty darn serious about
it.
That's why Gushan, the
company, works...
. . . .
.
What about GU, the
stock?...
There are few names more
under the radar than this
one. But, once it
starts attracting
attention, I think GU
could really ramp...
It only just came public
on December 17th, pricing
at $9.60 - $2 below the
low-end of the range that
had been predicted...
Now this very-overlooked
IPO has fallen slightly
below its offering price.
It's $9.58...
. . . .
.
The Bottom Line!:
Three
once-sexy themes...
Gushan Environmental
(GU)
is your bet that they come
back! At this price,
you can't beat the odds...
but, remember, it's still
a speculative play... so I
command you... I demand
that you take the weekend
to think it over... and I
want you to buy it, only
if it's at this price!
And, please, do
your homework before
you decide to
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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GU |
9.58 |
na |
Gushan Environmental Energy
Limited (GU)
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Go to the LIGHTNING ROUND 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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broadcasts. Please note that all
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
the show yourself, doing
your own homework,
and reading the text of the
comments to draw your own
conclusions. Also, data presented
on this site should not be used to
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accuracy, although attempted,
cannot be guaranteed. Please
consult with your own financial
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