Segment 1: A Call for Accountability
Cramer said that many traders were suggesting that the sharp decline at the end of the trading day today is an indication that the rest of December is going to be negative, but Cramer disagreed. He pointed to higher than expected auto sales, even after Cash for Clunkers, rising home prices that will limit the damage of the supposed shadow inventory waiting to be put on the market, and the failure of a commercial real estate crash to occur. He also said that the media keeping pumping out negative stories without any repercussions when they are wrong, but taking credit whenever they are right. He thinks that the negative articles create more attention than positive ones, and he wants answers for the reasoning behind their bearish claims and accountability when they are wrong.
Cramer took phone calls on the following stocks:
NYSE Euronext (NYX): Cramer said “Don’t buy” because their exchanges have a lot of competition.
Segment 2: Sell Block
Cramer put the European banks in the Sell Block because they have made a number of mistakes in a row. They over-leveraged during the last bull market, overpaid for a number of acquisitions, and lent too much money to unstable entities like Dubai World. Specifically, he said to stay away from Royal Bank of Scotland (RBS), Lloyds (LYG), HSBC Holdings (HBC), and Barclays (BCS) because they have the most exposure to Dubai World and have made numerous mistakes. He said that if you do want exposure to European banks, he would recommend buying the preferred stock of ING (ISP) or Aegon (AED), (AEH) than any common stock.
Segment 3: A Winning Strategy
Cramer said that Obama’s announcement that 30,000 more troops will be going to Afghanistan has generated a lot of interest in defense sector stocks. He thinks that Oshkosh (OSK) is one way to play the announcement because it makes mine resistance vehicles that will be needed by the new troops, but the stock has already had a nice run and is well known as a defense play. He thinks that the best way to play this move by the military is to buy Harris (HRS) because its radios are used by all NATO troops. Another recommendation is to buy Mantech International (MANT) because it has contracts to maintain the additional vehicles that will be needed, and the stock is down 19% this year, so it is not overpriced. Cramer also recommended American Science and Engineering (ASEI) and FLIR Systems (FLIR) because they make products that help screen for explosives and weapons. Also, this increase in troops will probably be accompanied by an increase in private contractors, and the two major players in this market are Fluor (FLR) and DynCorp (DCP). Finally, Cramer recommended Alliant Technology (ATK) because their bullets are used by U.S. troops and the Afghan military.
General Dynamics (GD): Cramer is bullish because this is a well run defense contractor, even though it is not an Afghanistan play.
Aerovironment (AVAV): Cramer is bearish on this stock because it has been inconsistent, and he recommended FLIR Systems (FLIR) as the best UAV play right now.
Applied Signal Technologies (APSG): Cramer is bullish on this stock.
Segment 4: Lightning Round!
KeyCorp (KEY): Cramer is bearish on this stock because he doesn’t think it is well run.
Google (GOOG): Cramer is bullish because he thinks their ad share will continue to grow, and he put a price target of $700 on the stock.
Marathon Oil (MRO): Cramer is bullish because it has a nice 3.3% yield and is th most undervalued oil company out there.
Ciena (CIEN): Cramer is bullish on this stock.
Aeropostale (ARO): Cramer is bearish because he thinks the stock’s run is over, and he recommended Guess (GES) or J. Crew (JCG) instead.
J.M. Smucker (SJM): Cramer is bullish on this stock.
Segment 5: Am I Diversified?
Cramer reviewed caller portfolios but didn't make any specific stock picks.
