The Cramer Report
Monday July 10, 2006
"THE BOTTOM LINE, ALL THE TIME"

Friday's Recap:

Defensive stocks can make you some Mad Money come monday, and Jim recommends PepsiCo, Inc. and Genentech, Inc.

Aggresive plays include AAR Corp. (AIR)  and Alcan Inc. (USA) (Jim owns this one.for the trust).

When the market is crap, defensive stocks will hang tough.

Diversification is the key, Jim recommends food and drug stocks.
Pepsi's dividions should have better than expected earnings.  
The FDA recently approved Genentech's Lucentis drug.
Earlier this week, Jim blessed Alcoa Inc.  He said to hold off and get into Alcan as it is more of a "legitimate takeover company".

AAR reports it numbers on Monday.

The Other, Other White Meat

Smithfield Foods is mean company.  The like to make money, not friends.  As Jim put it, they like to kick thier competitors when they are down.  The pork company recently bought Sara Lee because they were in a tough spot and got the copmany for $300 million less than the originally had planned.  They also bought  Cook's Ham for $260 million.  However, the company had $330 million is sales last year.  The parent company, Con Agra is in trouble and if that keeps up, Smithfield could buy Con's other divisions for less than it is worth.


The Yin and Yang of The Market

J.C. Penney Company, Inc. and Abercrombie & Fitch Co.

Recently, J.C. Penney reported great numbers.

Abercrombie & Fitch came out with 4% decrease in same-store sales.

Guess which stock went down?

Wrong.  JC Penny's stock fell becuase it's all about expectations.  And their 'upside' had already been priced into the stock.  Cramer feels it is a great stock, but...

A&F had been shorted by alot of people and when they reported, the shorters panicked.  The value investors held on, and they will.  Cramer feels this is a value stock.  One factor which adds to it's value is that Hollister, one of their franchises, is the "biggest force in teen retail," he said.
For more great information, check out Archives
© 2006 TheCramerReport.com ●
TheCramerReport.com and its entire contents are protected under DMCA, the Copyright and Lanham Acts. Any Duplication, Copying, Modification, or Distribution without prior Written Consent is a violation of aforementioned statutes.

Unlike several other companies, we Aggressively Protect Our Intellectual Properties and will track down and prosecute any violation that comes to our attention. We have successfully pursued and recovered damages in the past to ensure compensation. We monitor the Internet on a daily, sometimes hourly basis scouring for potential Copyright Violations through state-of-the-art technology
and honest and reliable affiliate networking. http://en.wikipedia.org/wiki/DMCA
 Artwork courtsey of  Corey Pierce.