Segment 1: Bonds are Bad
Cramer said that the most important news today came from Dollar Tree (DLTR), because it showed that consumers are still nervous and investors should stick with trade down names like Treehouse Foods (THS), plus it gives Ben Bernanke a good reason to avoid raising interest rates. He then reminded viewers that bonds will not be going up any time soon, so high yielding stocks are the way to go. For example, Home Depot (HD), Kimberly Clark (KMB), and Altria (MO) all raised their dividend this week and are quality companies that can keep raising dividends and paying them out.
Cramer took phone calls on the following stocks:
Ford (F): Cramer likes the Ford Preferred (F-PS) because he thinks it will be called.
Wal-Mart (WMT): Cramer thinks the stock is stuck, so he doesn’t want to own it.
Kinder Morgan Partners (KMP): Cramer said this is the best of breed stock in the MLP sector and he is bullish.
Segment 2: Interview with Colorado Senator Mark Udall
Cramer talked to the Senator about the use of natural gas as a clean bridge fuel, its importance to natural security, the large number of jobs it will create, and what has to be done to make Congress aware of the potential that this fuel has in the U.S.
Segment 3: Interview with Agnico-Eagle Mines (AEM) CEO Sean Boyd
Cramer said that he views gold as portfolio insurance because it generally goes up when stocks go down, and increased jewelry demand from emerging markets has driven the price higher. He said that AEM used to be his favorite gold miner because it outperformed the sector and bullion, but it has been disappointing for the last few quarters until last week, when it reported a strong quarter. Cramer wants to find out if they fixed the problems that had been hurting the stock in the past and if the CEO will raise the dividend as new projects come online. Here is a summary of the interview.
1. Cramer asked if the hard times for this company are in the past, and the CEO said that they are because they aren’t building 5 mines at the same time and they are ready to reap the rewards of their hard work because they have grown reserves and have a low production cost.
2. Cramer asked why their production costs have gone up from around $290 to $390, and the CEO said that the increase is due to currency fluctuations and byproduct costs, but that is still well below the industry average of $475 - $500.
3. Cramer asked about the potential in their Meadowbank mine, and the CEO said that they are seeing huge increases in the reserves in that mine as they begin production, so they are planning to grow the output there.
4. Cramer asked if gold costs are cyclical, and the CEO said that it is less seasonal as is used to be because more people are buying gold as an investment instead of it mainly being used as jewelry.
Cramer ended by saying that he wished he had time to ask about the dividend, but he is now bullish on this stock again.
Segment 4: Lightning Round!
Annaly Capital (NLY): Cramer is bullish on this stock because he doesn’t think the Fed will be raising rates any time soon.
JP Morgan Chase (JPM): Cramer is bullish on this bank because it has the best balance sheet and can grow, and he put a price target of $50 on the stock.
Kirkland’s (KIRK): Cramer said this stock has moved up too much, and he recommended Home Depot (HD) instead.
Aerovironment (AVAV): Cramer said “Don’t buy” because there is too much competition in the drone market.
Intuit (INTU): Cramer is bearish on this stock.
Amazon.com (AMZN): Cramer is bullish on this stock.
Unisys (UIS): Cramer said “Don’t buy” because there are so many other tech stocks that are better, like EMC (EMC), Intel (INTC), Cisco (CSCO), and Hewlett Packard (HPQ).
Citigroup (C): Cramer is bullish on this stock because he likes the CEO and the stock is now supported by the secondary offering price.
Segment 5: Mad Money Mail
Dendreon (DNDN): Cramer is bullish on this stock.
World Wrestling Entertainment (WWE): Cramer said that this has a good yield but no growth, so he would rather own other stocks.
Brocade (BRCD): Cramer said he would not sell the stock at its current price.
Smith International (SII): Cramer said to sell this stock because it has been bought out and there is no upside, and he recommended buying Weatherford International (WFT) to replace it.
