Jim's
rating on
this stock

STOCK
SYMBOL

Closing
price that
day

Full Company Name & Jim's Comments:

HERO

5.57

Hercules Offshore, Inc. (HERO)

Jim:   No, no, no, no, no...  Wrong president.  I don't like any of these near-term oil situations, because oil's going to $50 (a barrel).  You buy that at $5, and it will go to $3.50.  Why not wait...  I need a yield.  I need dividend to be able to buy some of these oils now and I don't see one with HERO.

MA

141.50

Mastercard (MA)

Jim:   I like Mastercard.  They delivered a terrific quarter.  It doesn't have a dividend that protects the stock, which is part of the problem... it's very small.  But the quarter was great.  This is company that I think you can buy on the way down.  It does not fit my portfolio of high yielders or recession-resistant, but that quarter was darn good.  I am not going to walk away from Mastercard.  The business is too strong.  Now, remember... it is not a play on transactions, as much as it is a play from paper (cash) to plastic (credit card use), which is happening worldwide.  They had a magnificent quarter.

VOD

17.87

Vodafone Group plc (VOD)

Jim:   I think that the problem with Vodafone...  Vodafone just said a lot of good things yesterday.  The yield is at 11%.  That is, for me, a red flag.  I would rather go with their wireless partner, Ivan Siedenburg.  Why?  Because Ivan came to our show last Friday and told a compelling story, and has just raised his dividend and has no problem paying it.  So, I'll take a little more conservative by going (with) Verizon (VZ).  I don't get as much dividend, but I fell safer about it.

VZ

29.72

Verizon (VZ)

See VOD comments above for:
VZ

MSFT

21.20

Microsoft (MSFT)

Jim:   If Microsoft does well, Intel (INTC) does well.  And Intel yields 4%.  It just hit my 4% chart, which makes me feel like that's a compelling buy.  Steve Ballmer (CEO of MSFT) has done a great job walking away from that Yahoo! (YHOO) bid, and not doing anything wrong, but INTC has got a better yield.  I say go with INTC.

INTC

13.93

Intel (INTC)

See MSFT comments above for:
INTC

ECL

31.78

Ecolab Inc. (ECL)

Jim:   A curious pastiche, if not an odd mixture of companies.  It does not have a good yield, and it does not have excellent growth anymore, that still sells at a multiple of 17x earnings.  That precisely fits what I do not want to buy...  Sell, sell, sell!...  That is too dangerous.  I know people don't think of Ecolab as dangerous, but in my world of high dividends, of stocks trading through their cash (on hand per share) or near it, and of recession-resistant stocks, it doesn't fit.  And, in order to get my blessing these days, it's got to have one, if not two, of those three.

[verbatim recap]

[ End of the Lightning Round segment ]