'Mad Mail'

Sunoco Inc. (SUN)

Q:      Jim,
My question is regarding Sunoco. When oil started going past $70/barrel the stock went down because people feared that it would eat into SUN’s margins. Now that oil is coming down, people fear there is no demand. Either way, SUN seems to be getting pummeled, is this just a no-win situation for SUN?
Thanks again? Suny

Jim:    First of all lets presume that it is a no win because it is has just pure refining… why don’t you own Marathon then, which has both refining and downstream, upstream… it owns the whole panoply… Marathon Oil Corp. (MRO), that is a better stock than SUN… SUN does have a better dividend… or if you want purifying go to Voyeur, now we do not like Voyeur… the CEO is on our Wall of Shame… but SUN just happens to be one of these companies that nobody cares about… I think one day that it gets bought… but you know what… it depends on the margin.. what it buys oil vs. what it can sell it to you as gasoline… and that is a very tough business…. that is why I never recommend the refining stock on Mad Money.

'Mad Mail'

Marathon Oil Corp. (MRO)  

See SUN comments above for:
MRO

'Mad Mail'

RadioShack Corp. (RSH)

Q:      Cramer,
What happened to the digital conversion panic at RadioShack? I bought it at $15 and entered a sell order for $17. When do I panic and sell?
Jim

Jim:    Okay Jim, lets walk thru the trade… what I said was I felt that there would be a rush to be able to go to RadioShack… and that we would catch an upgrade or someone saying something good about RadioShack after last weekend.. I was very specific, I said either way… we either get the upgrade or the news, or we do not and we have to sell… that is the way that a catalyst trade worked… my hope was that it would not be that far from where you bought it to where you sold it… it did not work well… you lost a dollar if you did the trade… I have to own that… but that is what happens with a catalyst trade… so you need to be out of it.. why did it get further whacked… because Best Buy (BBY) reported a disappointing quarter.. and that brought RadioShack down… the trade happened… and the trade has to be cut… because it is a catalyst trade… it is not a fundamental trade… not all catalyst trades work… witness the RadioShack trade… do my best, but they cannot all work.

'Mad Mail'

China Unicom Hong Kong Ltd (CHU)

Q:      Cramer,
I know you don’t like China stocks, but what do you think about China Unicom Hong Kong(CHU). I bought it a couple weeks ago on the news of its 3G network plans. Since the initial move up into the $15’s, it has pulled back significantly. Do you think that there is anything here long-term or are people using the news as a simple trade?
Thanks again, Dan

Jim:    Listen to me… for ActionAlertsPlus.com, my charitable trust, I have decided to build a substantial position in CHU… I bought it into this weakness… I think that CHU is right… we know from RF Micro (RFMD), we know from all of our research that China’s aggressive rollout of 3G will be fantastic for CHU… as will the Chinese iPhone… so I think that you buy CHU aggressively here.

'Mad Mail'

EMBRAER (ERJ)

Q:      Hi Professor Cramer,
I know you like BE Aerospace and Boeing, but what about Embraer Aeronautica? What I thought was cool about ERJ is that they are in Brazil and apparently striking a deal with China. And like Boeing, they build most of the plane, as opposed to BE Aerospace, who build the interiors. How does ERJ rate in your book?
Trent

Jim:    I think that it is a really good idea…remember what I am calling from, I am calling for a multi year aerospace cycle… Boeing disappointed me, they did not put that plane in the air.. I thought for sure that they would… Boeing I did not do a good job on… RadioShack (RSH) I did the trade it did not work… I am still a believer in the aerospace cycle… I think that you have got a good one… the Brazilian market is red hot… I think that Embraer is a good idea… again, all the trades can’t work…I am going to continue to suggest them… I get more right than I get wrong… and that is what matters.