Segment 1: Love the One You’re With
Cramer said that one of the more difficult things to do is sticking with an idea that has been working when there are so many other investing ideas out there. He used Ford (F) as an example because it is continuing to perform really well, but people call him almost daily asking about Toyota Motor (TM) looking for a new play. He wants to sell TM and buy F, and he said he would rather own F than Honda (HMC) or Daimler (DAI) as well because Ford is a proven winner. He also recommended the Ford Preferred (F-PS) again because he thinks the company will pay to get rid of it in the future. Other stocks he wants to stick with are Apple (AAPL) and Deckers Outdoor (DECK). He ended by saying that there are times to sell a stock that has been doing well, but that time is when the facts change about a company, not when you are bored of owning a stock that has been doing well.
Cramer took phone calls on the following stocks:
China Automotive (CAAS): Cramer said that he would sell this stock because it is too risky.
AutoZone (AZO): Cramer is bullish on this stock because they are winners.
GrafTech International (GTI): Cramer is bullish on this stock.
Segment 2: Off the Charts
Cramer looked at the chart of JDS Uniphase (JDSU) this week. He said that the stock has moved up 387% from its lows a year ago and 41% just last month, but he thinks it could go higher because the stock is so strong. Technical analysts think that there is very strong demand for the stock because it has been making higher highs and moving through resistance levels on high volume, but it could get crushed if that demand goes away. The analyst Cramer talked to said that he would buy the stock near its support level at $9, but thinks it is too risky at its current price of $11. Cramer said that the stock has a bad history from the tech bubble, where it reached a high of $1227 and then dropped 99.8%, but the company is transforming itself, it is part of the mobile internet tsunami because the network operators need their test equipment, their communication equipment is seeing huge growth rates, and they are developing new optical technologies that should help move them out of commodity markets. Cramer ended by saying that he would recommend buying a quarter or half of your position now, and then buying the rest if it pulls back to around $9.
Segment 3: Interview with Anadarko Petroleum (APC) CEO Jim Hackett
Cramer said that this company does not get enough credit from Wall Street, and that he wanted to take another look at them after their very bullish conference today. They said that they plan to grow their reserves by 7% - 9% each year for the next 5 years, which will give them 3 billion barrels of oil in reserves by 2014. He said that it would go up another 65% if it trades like Occidental Petroleum (OXY), which it will be comparable to if it keeps growing at its current pace. Here is a summary of the interview.
1. Cramer asked if APC should be grouped with bigger companies like OXY, and the CEO said that they have a different asset base than OXY, but it would be a good company to be associated with.
2. Cramer asked about their international business, and the CEO said that they need to work globally to grow their business and it gives them diversification.
3. Cramer asked if they need more money than they have to develop their new projects, and the CEO said that their balance sheet is good enough because their new projects are scheduled so that the work load is fairly level.
4. Cramer asked if they are skewing more towards oil because they don’t believe as much in natural gas as they did in the past, and the CEO said that he still believes in the natural gas, but there could be some short term weakness because of new LNG imports, and they are drilling for more oil right now because that is what happens to be available in the international and deep water projects they are working on.
5. Cramer asked if Washington is coming around to the idea of promoting natural gas usage, and the CEO said that something good is going to come from the attention that natural gas is getting and that Washington is slowing realizing the potential of the fuel for lowering pollution, making the U.S. energy independent, providing a lot of jobs, and creating energy in a safer way.
Segment 4: Lightning Round!
Prudential (PUK): Cramer is bullish on this stock because he thinks the purchase of AIA Group from AIG (AIG) is a smart move.
Symantec (SYMC): Cramer said that he would rather own ArcSight (ARST).
Terra Nitrogen (TNH): Cramer is bullish on this stock and recommended Potash (POT) as well.
Zhongpin (HOGS): Cramer doesn’t like any individual Chinese stock other than China Unicom (CHU).
Weatherford International (WFT): Cramer is bullish because the stock is so cheap at $16.
Segment 5: Mad Money Mail
Carrizo Oil and Gas (CRZO): Cramer told the caller to sell enough stock to cover his costs because he is up so much.
Nabors (NBR): Cramer is bearish on this stock and said it is one of the worst performing stocks he has ever seen.
Hatteras Financial (HFS): Cramer is bearish because he thinks the 18% yield is unsustainable and a red flag.
Windstream (WIN): Cramer is bullish on this stock and Altria (MO) because of their high yield.
Plum Creek Timber (PCL): Cramer is bullish on this stock and Weyerhaeuser (WY) as plays on a lumber market that he thinks is going to improve.
