Segment 1: Best of the Bunch
Cramer asked how the market can rally today after the terrible employment number on Friday, and then explained that money managers are still looking for stocks to buy. He thinks that stocks with a good dividend like Kinder Morgan Partners (KMP), AT&T (T), Boeing (BA), and Proctor & Gamble (PG) are good enough for institutional investors who aren’t going to pay up for expensive stocks, and they look even better compared to Treasuries and corporate bonds.
Segment 2: Interview with Salesforce.com (CRM) CEO Marc Benioff
Cramer said that this company reported a great quarter since the last time its CEO was on the show, and the stock is up 22%. He likes that the company is expanding its Software as a Service business, and announced a partnership with Cisco this morning. Cramer wanted to talk to him to get an update on the company, and to find out about Benioff’s book that is being released next week. Here is a summary of the interview:
1. The CEO gave Cramer a demo of Salesforce.com.
2. Cramer asked how long they can keep going up against big companies like Microsoft (MSFT), and the CEO said that his company is growing faster than the big ones, and they have more diverse revenue streams and a more expensive product.
Cramer ended by saying said that Benioff has made a lot of money for us.
Segment 3: Know Your IPO
Cramer looked at the IPO of Banco Santander Brasil (BSBR) today, which he likes because Brazil is growing at a 5% - 6% rate, the stock market is doing well there, and its financial services sector is hot. He said it is the 4th biggest bank in the country, and the biggest full service bank, but he doesn’t want to buy the IPO directly, he wants to play it with the stock of the parent company Banco Santander (STD) because it is not getting enough credit for its great Brazilian business. He thinks that STD could go up 30% once the IPO unlocks more value for the company, plus the IPO is expensive and doesn’t have much upside.
Segment 4: Lightning Round!
STEC (STEC): Cramer feels like this stock could burn him, but he recommended buying it and then selling if it gets to $32.00.
Arcelor Mittal (MT): Cramer is bearish on this stock and recommended Nucor (NUE) instead.
Olin (OLN): Cramer is bullish on this stock because he likes the chemicals business.
ON Semiconductor (ONNN): Cramer is bullish on this stock.
RF Micro Devices (RFMD): Cramer is bullish on this mobile internet play, and recommended Skyworks Solutions (SWKS), Cypress Semiconductor (CY), Apple (AAPL), and ONNN.
Segment 5: Mad Money Mail
(AAPL): Cramer is bullish and holding to his $264 price target because other analysts are raising their target prices, and the stock is back near its 52 week high.
Electronic Arts (ERTS): Cramer is bearish on this stock because he doesn’t like the gaming business, and he said to buy Google (GOOG) or Apple (AAPL) instead.
Starbucks (SBUX): Cramer said that their new home brew coffee product will boost earnings for this month and the quarter.
