Segment 1: Interview with McDonald's (MCD) CEO Jim Skinner
Cramer owns this stock for his charitable trust for the long term, and thinks that this is a good stock for you as well. Cramer asked the CEO about the company's plans in the future, and Skinner said that they want to continue to please their customers, expand into new businesses like coffee, move into new markets, and keep improving the company. Cramer's next question was about the strengthening dollar, and the CEO said that they have operated in both a weak dollar and strong dollar environment, so it's not an issue for them. He added that they plan to continue to expand into China and other international markets. They ended the interview by talking about how the company has increased sales as the economy slows, and Skinner said that they have tried to keep prices constant so customers can get some relief from inflation elsewhere.
Segment 2: Your Stock Shopping List, Part 4
Cramer continued his week long review of stocks that beat earnings last quarter, but he wants you to wait for a pullback before buying. Today's pick was Ralph Lauren (RL), which he wants to buy at $70 or less. He originally recommended it at $60 in January because he likes their new business model and strong growth in Europe, which has continued to now. They are now expanding their business in Asia, which should allow them to duplicate their success in Europe. He also thinks that analysts will start to upgrade the stock as they get behind their new business model. He likes their 14.7% growth rate, and wants to wait until the P/E ratio comes down from over 15 to match the growth rate before buying.
Cramer took phone calls on the following stocks:
Walmart (WMT): Cramer thinks retail will turn around, and he likes their plan to install solar panels on the roofs of their stores.
Segment 3: Lightning Round!
CVS Caremark (CVS): Cramer is bullish on this stock, but likes Walgreen
(WAG) better.
The Pantry (PTRY): Cramer likes CBRL Group (CBRL) better in the restaurant sector.
Amedisys (AMED): Cramer is bearish on this stock because it is too risky.
Smith & Wesson (SWHC): Cramer is now bearish on this stock.
Hudson City Bank (HCBK): Cramer is bullish on this stock.
Inverness Medical (IMA): Cramer said he is still bearish on IMA and Hologic (HOLX), but it might be time to buy soon.
Nokia (NOK): Cramer is bullish, but he likes Qualcomm (QCOM) better.
GrafTech International (GTI): Cramer is bullish at this price.
Central European Distribution (CEDC): Cramer is bullish on this stock, despite the turmoil in Russia.
Chesapeake Energy (CHK): Cramer is bullish because he thinks natural gas stocks are oversold.
Zoltek (ZOLT): Cramer is bearish, and recommended Owens Corning (OC) instead.
Segment 4: Bullish on Biotech, Part 4
Cramer recommended Alexion Pharmaceuticals (ALXN) as his biotech pick for today. He said it's more speculative than his other picks, but he is bullish because their orphan-status drug has potential revenues of $1 billion because the drug is so expensive. If 35% of people with the blood disease that their drug treats are prescribed the drug, the stock should go to $135 from its current price. Cramer thinks that this estimate is reasonable because the drug has no competition due to its orphan status, and the alternative is continued drug transfusions. Also, they are waiting for approvals in other countries in early 2009, and the drug could be found to have other uses besides treating a rare blood disorder. He said to wait until the stock splits on August 22 for a pullback before buying because it has been hot recently, but he is still bullish on the stock.
Segment 5: Am I Diversified?
