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THURSDAY MAY 25, 2006
"I'm turning your portfolio into
a Fed fallout shelter.
If your going to survive a Fed
disaster you need food and
beverages.
The last time rates when too
high, in the year 2000, the real
winners - the cereal stocks and
the beverage stocks!
The big cereal and beverage
players just moved right on up.
Now, that's what you want to
see.
But Cramer be a discerning
individual. I'm going to
do a taste test here on the
show, among Kraft, General Mills
and Kellogg on the cereal end;
and Coke, Pepsi and Bud on the
beverage end.
Even though they're all bullish,
you only need to own one of each
and, to figure out which,
Cramer's going to put them to
the ultimate taste test:
The Earnings Taste Test!
You can make money in any of
them now, but Cramer wants to
make sure that, when the
rotation is over, you're still
in the 'musical chair.'
Cramer's cereal winner/stock
pick: K (KELLOGG CO)
Cramer's beverage winner/stock
pick: PEP (PEPSICO INC)
I think you buy Kellogg and
Pepsi. This is a winning
combination! That way, if
rates get too high, you'll own
two things that still make you
some mad money!
The bottom line!:
Kellogg and Pepsi - that's the
breakfast of champions!
Interview With Coach CEO, Lew Frankfort
COH (COACH INC)
Coach Inc. CEO Lew Frankfort was on the show trying to explain why his
companiy stock fell from $37 to $29. It is, in Cramer's opinion a
best of breed handbag company that had a similar decline in 1994. COH
will be opening 25 new stores and also plan on buying back $500 million
in stock. Cramer expects this stock to go back up to $37, and noted
it's strong Monther's Day numbers.
