After this segment, you
can see Jim's Lightning
Round picks
here...
Jim:
For weeks, I've been
telling you to sell into
any strength... whenever
you get it... in any
rally. And that strategy
worked today if you
blasted out of stocks
this morning...
We are still real
negative on the stock
market as a whole and,
even the passage of the
"Invest In America"
rescue plan only means
we avoid another Great
Depression... we take
Great Depression 2 and
we just forestall it. It
doesn't address the fact
that everybody needs
more money...
But the endless price
declines of the
industrial stocks and
the pervasive negativity
surrounding them has
started to make the
industrial game maybe a
tad more interesting.
Don't get me wrong... I
am bearish, but I also
want to prepare you for
the possibility of
things improving...
We need worldwide rate
cuts... something I
think is possible that
we could get next week.
That would lower the
prime rate. Don't
believe everybody who
says, listen, it doesn't
matter. It lowers the
prime.
Credit issues are awful,
but I don't want to be
so negative that we miss
good equity
opportunities that are
starting to be created
by this chaotic market,
and hedge funds gone
wild.
That's why, in case
things start looking
better, I'm going to
give you some
industrials to pick
at... Not all
industrials... not
most... but, on a
case-by-case basis, like
we do on Mad Money,
there are some that have
become too cheap, that
now I want to pick at...
. . . .
.
The Bottom Line!:
There are still plenty of reasons to be
negative, but the huge declines in the
industrials and the mineral plays are
starting to create some real
opportunities... ones that will be even
better as the stocks go lower. But you
can't judge those opportunities by
looking at the price-to-earnings
multiple. That prism's not working...
you have to look at the yield and at the
cash... because the earnings... and,
most importantly, the earnings
estimates... can no longer be trusted.
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After this segment, you
can see Jim's Lightning
Round picks
here...
Jim:
In 1990, the last time
we had a financial crisis
that led into a recession
that had to do with real
estate... so, therefore,
it's an analogous
position... although you
know I think 1932 is really
the only analog... but using
this one period where the
market didn't all plummet...
biotech stocks were the
single-best-performing
group.
Now, we just passed the
rescue plan. But we are
going to be in a severe
recession or a Great
Depression, courtesy of a
weak economic environment,
both here and globally...
and that has nothing just to
do with mortgages. It can't
just be fixed by
legislation. It has
everything to do with
Brazil, Russia, India and
China... with credit... and,
remember, what we're facing
is either a Great
Depression, or a severe
recession. And, in either
one of those, it is very
difficult to own stocks.
But biotech shined with a
similar set of
circumstances. Now, why else
do we like biotech?...
Because it looks
increasingly likely that
we'll have a democrat in the
White House next year...
and, almost inevitably, the
democrats will have more
seats in congress than they
do now.
And the democrats... they
love, love, love... biotech.
In 1990,
Amgen Inc. (AMGN)
was the best of the
biotechs. This time around,
I think it is a
possibility... there's a
bunch of good ones... that
maybe it's
Genzyme Corp. (GENZ),
a biotech player that
focuses on developing what
are called "orphan" drugs,
that treat rare diseases
and, thus, get extra special
exclusivity treatment from
the federal government and
the EU.
Democrats, by the way, love
orphan drugs...
The stock hasn't done much
since I last recommended it
on August 12th, at $79. It's
down 3.8% but, given the
fact that there's just been
a wholesale carnage, that
ain't so bad.
I think that things could
change. GENZ has three drugs
coming out for FDA approval
between now and the end of
the year... approvals that,
together, could be worth
between 33-36 cents to
full-year earnings per 2009.
Given the current
environment, speculating on
GENZ's drug approvals is the
only kind of speculation I
am now allowing. Everything
else is too dangerous.
GENZ's safe...
That's why I'm bringing on
Henry Termeer, GENZ's
chairman and CEO, to talk
about the company's
prospects.
Henry Termeer, welcome to
Mad Money!...
. . . .
.
Jim's comments AFTER the interview:You want to speculate like a pro?
You speculate with fabulous companies
that have been around, that have really
exciting drugs in the pipeline... GENZ
fits that bill.
■
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.
