Tuesday, 02/05/08
Posted 02/05/08,  7:55 pm ET

(Scroll down to see Jim's comments below)

 
 
Today's date:  Tuesday, 02/05/08

  Dow Jones: 12,265   - 370
  NASDAQ:   2,309     - 73
  S&P 500:   1,336     - 44
 
 
 
 
 
First Segment
 
 
 
Opening Segment 1 Title: 'Stock Answers'

.  .  .  .  .

Featured Stock(s): No specific stock picks.  See all comments below...


See Opening Segment 2, below...

        
JJC:  Don't ask why we got hit with a 370-point decline...

Don't ask, because the why doesn't really matter...

There's something much more important to focus on... It's the rhythm of this particular stock market.  You know what that rhythm is already...

The rhythm, or the pattern if you prefer, is short, sharp rallies - as the Federal Reserve cuts rates - followed by lots of selling, coming from people who, each day, are converted to the idea that we are in a recession...

.  .  .  .  .

This is where we are...  This is where I expect us to be for months... Buy, buy, buy!... and then Sell, sell, sell!...

It will happen again and again, until interest rates are slashed so low that, at last, everyone will know that the economy can get better...

.  .  .  .  .

The Bottom Line!:     The sad bottom line is that these days will be the norm, until housing ticks up, or we get some relief from the lower rates that the Fed's going to give us, that impacts the rest of the economy.


[See Jim's 2nd Opening Segment stock picks below... ]

 

 

 



See all of tonight's stocks' latest quotes on Yahoo! Finance


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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)


       
         


       
         

 


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Second Segment
 
 
Opening Segment 1 Title: 'Rio's Grand'

.  .  .  .  .

Featured Stock(s): Companhia Vale do Rio Doce (RIO)

See RIO's official website here.

See the Yahoo! Finance profile for RIO here.



See Opening Segment 2, below...

        

JJC:   Today's brutal 370-point decline has me wishing we were in a better place... a magical land... where recessions are something that happens to other people...  Where the middle class is actually growing, and getting wealthier...  Where inflation is under control, and where the overall investment environment deserves to be called stable...

Am I talking Camelot?...

No!...  I'm talking Brazil!...

You have to be sick and tired of watching the same fight play out every day... the tug of war between the Grumpy's - who think nothing can stop the U.S. recessions - and the Happy's, like me, who believe, ultimately, that our Johnny-come-lately Fed rate cuts will eventually take us down the road to recovery.

.  .  .  .  .

When even the upbeat scenario in America is so negative, you have to believe that there are better opportunities, besides Camelot, to make money in the other economic superpower in the Western Hemisphere...  especially since, right now, the Brazilians are making us look a big bunch of losers...

That's why I'm devoting the rest of the week - which just happens to be Carnival - to great Brazilian stocks that do not need the United States to make you money!... 

.  .  .  .  .

Originally, I liked Brazil, because it was a natural resource powerhouse that continues to benefit from high commodity prices...

Oh, but this country has gone beyond that, to become one of the best places to invest in the world... albeit, one that is constantly overlooked, as a result of the endless focus on China and India... even this one's self-sufficient with oil...

And they've got all that new (oil) find, right off the coast, and the mineral wealth's amazing, not to mention all the land they have to be able to grow soy.  Don't believe me?  Read the latest Fortune magazine... great article about the strength of Brazilian agronomics... 

.  .  .  .  .

Thanks to the strength of all these industries, the growing Brazilian middle class has become the next big money-making theme, and it's the one we're going to tap into this week.

I like to think of Brazil today, as the United States in the 1950's...  flush with oil and other natural resources, with jobs galore, and with a government that encourages growth and frugality, and sacrifice...  Remember, they sacrificed to be able to become OPEC-free...

.  .  .  .  .

We're building, this week, a Carnival float of Brazilian stocks... and we're going to start off this week with a stock that represents the foundation of the Brazilian economy...

We want Companhia Vale do Rio Doce (RIO)... the massive mining company that we've liked on this show for a while...

[See Jim's past comments on Mad Money about RIO, pre-searched for you here >> ]

.  .  .  .  .

The Bottom Line!:     We can't get enough Brazil... and not just for Carnival and their plastic surgery - which we really like...  It's the stocks we want, and I believe the best is Companhia Vale do Rio Doce (RIO)...  

   
 

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)


RIO

29.69

30.50

Companhia Vale do Rio Doce (RIO)

         

 

 

Go to the LIGHTNING ROUND from tonight's show here >>

See current quotes on Yahoo! Finance from tonight's show stocks here >>

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
of stocks 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:

jim-cramer-charitable-trust-stocks.com

 
See the stocks currently known to be in Warren Buffett's portfolio
of stocks at:

warren-buffett-portfolio.com

 
  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.

 
  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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