After this segment, you
can see Jim's Lightning
Round picks
here...
Jim:
Right now...
today... actually, for
the last three weeks, in
this unremitting stock
market - one that
dropped 350 points today
- we are seeing the
veritable collapse,
okay... the collapse of
every company that can
export anything, and
every company that helps
it take it there... Any
company that exports and
anybody who helps
export...
Why?...
Because the four
countries that were
driving global economic
growth have simply
dropped off the face of
the map. I've done my
geography, I've found
the map that really does
quantify what's going
on... take a look....
(he refers to a map with
some countries blacked
out)... a lot of
countries here... you
notice some of them
missing?... Brazil,
Russia, India, China...
The once beloved "BRIC"
is nothing more now than
a brick!... The brick
around the market!...
Four countries that, for
the purposes of
commerce, might as well
not even exist!...
I want you to think
about what's getting
killed here...
Oil... I mean, those
four were crazy about
oil, right... I mean,
they couldn't get enough
oil...
Coal... Oh man... (bear
sound)...
How about steel...
whoa... (bear sound)...
Fertilizer, our beloved
fertilizer...
Iron ore, aluminum...
They're backing up
everywhere, as the
United States was
producing these and then
putting them on, of
course, the rails...
which are now...
(trainwreck sound)...
and shipping them to
ports overseas...
Take a look at those
rails...
CSX Corp. (CSX)
down 5 points today,
Burlington Northern Santa Fe (BNI)
down 6... I mean, these
price declines are
dizzying... they're
amazing. Do you know
what they remind me
of?... The dot-bomb
era... like in the
endless declines of
eToys and WebVans of
yesteryear... even as
these companies this
time are real.
And it's not just
commodities that are
getting killed...
It's all companies that
have grown accustomed to
slow U.S. growth and,
therefore, became giant
exporters. Some of my
favorite companies...
how about
Honeywell
(HON)?...
That thing was down a
dollar and a half
today... How about
United Technologies
(UTX)?...
We think this is a great
American company... down
$4. IR... they did all
that stuff to make them
much less economically
sensitive... down $2.
Emerson Electric (EMR),
down $1.56, once the
revered, great
industrial company...
These companies now
simply have no place to
put their stuff either.
They're all struggling
to finance that
inventory, as it sits in
their factories and
warehouses, because
"BRIC" is no longer on
the map...
If you go international,
when the tides come
back, the only "Tide"
still going out is
laundry detergent and,
given the worldwide
nature of this downturn,
maybe only "Depends" can
put on double-digit
revenues, at least for
stock traders...
Heinz (HNZ),
General Mills Inc. (GIS*)
and Clorox Co. (CLX)
could be good buys as
people aren't going to
stop using their
products.
The bottom line...
. . . .
.
The Bottom Line!:
Bailout or no bailout, now that "BRIC"
has dropped off the face of the earth,
every commodity play - everything that
had to do with transporting these
commodities - every export... well, all
of their stocks are in big trouble, even
as the businesses may be okay... only
the defensive food and soft goods stocks
seem to be working internationally.
Until the prices get to be so absurd
with these stocks, like
they did last night, with KBR,
Inc. (KBR)
- which is almost trading through its
cash - or until the dividends go north
of 4.5%, I've got to tell you, I'm not
recommending any of them. I know my
geography... I don't like what I see.
■
Stock Snapshots - Includes
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■
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Cramer's
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Second
Segment
See complete
recommendation
comments
below...
Opening
Segment 2
Title:
'Show Me The
Money'
. . . .
.
Featured
Stock(s):
Permian Basin Royalty Trust
(PBT)
Enterprise Products Partners
LP (EPD) Kinder Morgan Energy Partners
(KMP) Linn Energy, LLC (LINE)
After this segment, you
can see Jim's Lightning
Round picks
here...
Jim:
Look, you want me to be
doom and gloom? I'll give
you a sad face... No! That's
not how we play it... On a
down-350 day, full of bleak
news about the economy, you
don't need to give you that
particular rigmarole...
I know it's easy to get
discouraged... I know it's
easy to panic... It feels
good to panic sometimes,
doesn't it? It never feels
good the next day... It's a
mistake.
I know my friend, Mark
Haines, challenged me on
"Street Signs" this morning
to find that elusive bull
market, in what is most
definitely the hard tape...
tape means stock action...
and I want to say this is
the worst ever... this is
the worst I've ever seen...
worst that I've been seen
since I've been trading,
other than the day the stock
market crashed... It seems
like it's crashed every
day...
But I've got to reiterate,
there are still bull
markets... There's a bull
market somewhere, and we're
always going to try and find
it for you, even if it seems
like the potential upside in
stocks has simply
vanished...
That's why, in a chaotic,
uncertain time like this,
we've got to rely on...
Sir-Mix-A-Lot, and his first
corollary... "I like big
yields, and I cannot lie"...
I've been saying that you
need to stock up on stocks
with serious dividends.
Today, we're taking one step
further... we're detailing
them to you... When I say
big serious dividends, you
say, well, which ones?...
There are stocks out there
with relatively safe...
remember, everything is
going to be caveated (warned
about) tonight, because this
market is so crazy...
relatively safe, stable
dividends that yield twice
to three times what you
could get from Treasuries
(i.e., treasury bills)...
even more than that...
stocks that don't need to go
up to make you money,
because they're already
paying you so much cash,
just to own them.
A lot of times you ask me
about these stocks in the
Lightning Round... Well,
we've done the
homework. And I'd like to call
these stocks "money
machines"... because they're
the stock equivalent of
ATMs...
Unlike those machines, these
companies just consistently
dispense huge wads of cash
to you. Money machines are
exactly what we want in this
most miserable, awful
environment that I've come
across.
Let's name them... And some
of these will be, for people
new to the show... our
audience has like doubled in
the last week, so some of
you are new to the show...
Permian Basin Royalty Trust
(PBT),
Enterprise Products Partners
LP (EPD),
Kinder Morgan Energy Partners
(KMP),
and one that you guys have
consistently asked about,
that I've done all the
HOMEWORK on...
Linn Energy, LLC (LINE)...
The first things to know
about these stocks is that
their yields are enormous...
PBT yields about 11.7% at
current levels...
LINE is yielding 16.3%...
EPD, 8.2%...
And KMP, 7.7%.
The second thing you need to
know is that all four of
these stocks are part of the
energy cohort, and for the
most part, you know I do not
like the energy cohort
now...
The stocks are signaling
lower prices for oil, and
oil goes down pretty
consistently these days...
But, you know what? We're
not trying to buy stocks
that go up in this segment.
We're interested in these
stocks, because we expect
them to be higher, only if
the commodity goes higher.
But they're going to spit
out cash in a dividend... in
a distribution. They're way
too sensitive to a commodity
price, in a world where
those prices are going down,
so I want you to have every
single understanding of what
determines what these guys
are paying out...
. . . .
.
The Bottom Line!:
Don't despair on this miserable day.
Don't feel like the cash is burning a
hole in your pocket... look for a money
machine... perhaps, you know some cash,
some gold, which I was buying today for
my charitable trust on the way
down, and some safety stocks... and the
dividend-yielding stock... a big payout,
like
Permian Basin Royalty Trust
(PBT), Enterprise Products Partners
LP (EPD),
Kinder Morgan Energy Partners
(KMP),
and Linn Energy, LLC (LINE)...
You know, paying you big bucks, just for
being a shareholder... that's a great
place to be.
■
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)
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:
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.
