Segment 1: Intel’s (INTC) Rally
The market had a great day today, and it is due to the huge earnings beat reported by Intel last night. That news made people realize that tech is still working, and forced investors to listen to something other than the bad news rom the auto makers and other failing businesses. They said that their revenues increased because of new sales in sectors like mobile computing and small notebooks, and that they expect to see continued demand from both corporate and retail consumers. Cramer also likes INTC because the company has $11 billion in cash. He said that other ways to play tech are Qualcomm (QCOM), EMC (EMC), Hewlett Packard (HPQ), and Cisco (CSCO).
Cramer took phone calls on the following stocks:
Solar Winds (SWI): Cramer thinks this stock is too risky, and recommended NetApp (NTAP) instead.
Microsoft (MSFT): Cramer said he is not worried about this company because he thinks Windows 7 and Bing are going to do well.
Segment 2: Another Chip Stock
Cramer said that there is another computer chipmaker that reports earnings next week, an he thinks it will continue the strength in that sector reported by Novellus (NVLS) and Intel (INTC). The company is Sandisk (SNDK), which is a maker of NAND flash, used in mobile phones and computer memory. Cramer said that this stock is generally hated by analysts, which means that it wasn’t upgraded even when earnings estimates were increased recently. Cramer said that this is a commodity play, which he doesn’t normally like, but their factories are running at full capacity and it is at the right place in the product cycle. He thinks they can blow away earnings estimates when the company reports next week, which will surprise a bunch of bearish analysts and send the stock higher.
Segment 3: Wall of Shame Update
Cramer put CIT Group (CIT) CEO Jeffery Peek on the Wall of Shame because he has run his company into the ground, and has been mismanaging it for years. Cramer said that this nomination is a little late given that the company is about to file for bankruptcy, the stock has been halted, and it is hoping for a bailout loan from the Fed. He also destroyed value for shareholders by continuing to sell stock to raise cash, which diluted the stake of current shareholders over and over again. His decisions took the stock from over $37 when he took over in 2004 to $1.64 now, and the company is about to collapse and become another lender owned by the U.S. government.
Segment 4: Lightning Round!
A-Power Energy Generation (APWR): Cramer said that the only Chinese stock he will recommend is China Unicom (CHU) because it will be selling the iPhone in China.
Reynolds American (RAI): Cramer said to buy Altria (MO) instead.
Tata Motors (TTM): Cramer is bearish on all auto sector companies, with the exception of Johnson Controls (JCI).
AT&T (T): Cramer is bullish because he likes the dividend yield, even though the stock has been declining and he said it hasn’t been the right place to be in the recent past.
Patriot Coal (PCX): Cramer is bearish on this stock and recommended Peabody Coal (BTU) instead.
Toll Brothers (TOL): Cramer is bearish on this stock because he thinks there are still too many new homes being built.
Allos Therapeutics (ALTH): Cramer is bullish and said it’s a good speculative play.
Tim Hortons (THI): Cramer said “Don’t buy” because he liked it a few weeks ago, but he feels like he missed the move now and it is too late to recommend it.
TEPPCO Partners (TPP): Cramer is bullish on this stock, plus it is being bought out by Enterprise Products Partners (EPD), which he likes as well. He also reminded us that he is bullish on Kinder Morgan Partners (KMP) in this sector.
Segment 5: Am I Diversified?
Cramer reviewed caller portfolios but didn't make any specific stock picks.
