9/11/ stocks

Top 10 Large Cap Stocks of the Week: ORCL, NOK, ADBE, RIG, VIV, GS, NTAP, MHS, CAJ, EC (Sep 11, 2010)



Top 10 Most Efficient Industrial Stocks: CWS, MMM, ROLL, OFLX, GGG, CGNX, CVVT, TTT, GE, RAVN (Sep 11, 2010)



Top 10 U.S.-Listed Chinese Stocks of the Week: DHRM, IDI, XSEL, WH, QXM, NOEC, ADY, JNGW, CHNG, SVA (Sep 11, 2010)



Top 10 Mid-Cap Stocks of the Week: LULU, JDSU, EPE, BVF, ARMH, SAY, IIT, JHX, MCO, GMCR (Sep 11, 2010)



Top 10 Small Cap Stocks of the Week: ZGEN, MCP, VHC, OCLR, MDCO, GORO, ULTA, CMTL, AZC, ACXM (Sep 11, 2010)



Top 10 Micro Cap Stocks of the Week: GOBK, BDCO, PABK, DHRM, KV.A, ATBC, LIVED, IDI, HDY, GBR (Sep 11, 2010)



Top 10 Most Efficient Utility Stocks: CEG, EOC, ITC, OKS, PEG, TE, CNL, ENI, DPL, ENB (Sep 11, 2010)



Top 10 Most Efficient REITs Stocks: ANH, NLY, MFA, LTC, MSW, NHP, DX, GTY, RWT, ADC (Sep 11, 2010)



Top 10 Most Efficient Leisure Services Stocks: SXFL, PCLN, ISCA, EXPE, TZOO, TRK, UTA, FUN, IILG, LTM (Sep 11, 2010)



Top 10 Most Efficient IT Services Stocks: VHC, ELNK, ABVT, GOOG, TNDM, SINA, ICGE, EBAY, SWI, ANSW (Sep 11, 2010)



Top 10 Most Efficient Investment Services Stocks: KKR, CSWC, AI, ACAS, PZN, ICE, CME, GS, IBKR, RODM (Sep 11, 2010)



Top 10 Most Efficient Insurance Stocks: ABK, GLRE, PTP, RNR, AGO, VR, MRH, AWH, PRE, ACGL (Sep 11, 2010)

Jim Cramer Lighting Round Stock Picks

Mad Money Recap

Segment 1: The Obama Accountability Index
Cramer said that things were much better today than they were yesterday with IBM (IBM), Johnson & Johnson (JNJ), Abbott Labs (ABT), Forest Labs (FRX), Northern Trust (NTRS), and PNC (PNC) all reporting good earnings today, Wal-Mart (WMT) reporting good numbers, mineral plays announcing that they are cutting back on production, which is good for stocks like Freeport McMoran (FCX), and Apple (AAPL) and Research in Motion (RIMM) reporting good sales as well. Cramer said that the high yielding stocks are back at the lows that they bounced off of in November, and that they will bounce back again.
However, said many of the financials are still weighing us down, like Citigroup (C) and Bank of America (BAC). As long as they don't go under, the stock indexes should be OK.
Cramer thinks Obama needs to save the good banks like J.P. Morgan (JPM) and Wells Fargo (WFC) from the bad ones like C and BAC. He added that the bonds and preferred stock of C and BAC need to be preserved, because if they go down, investors will be even more afraid of the financials. To track Obama's performance, Cramer created an index of 6 Dow stocks, made up of Bank of America (BAC), Citigroup (C), Caterpillar (CAT), General Electric (GE), General Motors (GM), and J.P. Morgan (JPM). It will start at a value of 100 as of the closing price at the end of today, and all the stocks have an equal weight. They were picked because it includes good and bad banks, a test of the infrastructure stimulus, the auto sector, and a large conglomerate that represents a large section of the overall economy.

Segment 2: Dow All Stars Review
In the first week of 2009, Cramer recommended Verizon (VZ), Caterpillar (CAT), Hewlett Packard (HPQ), Johnson & Johnson (JNJ) and Home Depot (HD), and he wanted to review how they did after the big drop in the market recently. His group is down 3%, which isn't great, but is better than the Dow and S&P 500, which are down 8% and 9% respectively. He thinks this is good news because they should go up more than the index when times get better, plus they all have a yield over 3%, except HP. He still likes HP because they have great management, recently made a smart acquisition of EDS, and is beating their printer competition. Cramer is still bullish on Verizon because of its high yield, good CEO, and strong Blackberry Storm and FiOS sales. He also still likes J&J because it is a good defensive play and a strong balance sheet. Cramer is bullish on CAT because of its accidentially high yield and because it is in position to benefit from the U.S. and Chinese infrastructure stimulus plans. He is also still bullish on Home Depot because he thinks housing will bottom in about 5 months, and people will begin making home improvements then.

Segment 3: Interview with Google (GOOG) CEO Eric Schmidt
Cramer talked to Schmidt about his experience on Obama's transition team, and his ideas to reduce unemployment. He didn't make any stock picks in this segment.

Segment 4: Lightning Round!
Zions Bancorp (ZION): Cramer won't recommend any regional bank right now, so he gave it a "Don't buy".
CME Group (CME): Cramer would rather own NYSE Euronext (NYX) because it has a higher yield, or Ameritrade (AMTD) or Charles Schwab (SCHW).
Electronic Arts (ERTS): Cramer is bearish because it is not cheap right now, and the company doesn't have any momentum.
Barclays (BCS): Cramer is bearish because he thinks it is in serious trouble.
Huntsman (HUN): Cramer thinks it is too risky and recommended PPG (PPG) instead.
CBS (CBS): Cramer is bearish because media companies have not been doing well, and the ownership structure of CBS is unusual.

Segment 5: Quiz Cramer
Cramer had a live audience for the show today, and he took general questions but didn't make any stock picks.

Jim Cramer Talks About Goldman Sachs and Morgan Stanley

TheStreet.com's Jim Cramer says everyone is worried that Goldman and Morgan will be safer but valued less and make less money.

It's hilarious that suddenly everyone is worried that Goldman Sachs (NYSE: GS) (Cramer's Take) and Morgan Stanley (NYSE: MS) (Cramer's Take) will be safer but will be valued less and make less money. It's almost as if they were to be valued as banks!

Wait a second, who pumps this stuff out? I am sure the stocks will go down simply because stocks go down on good news or bad news right now. But the kind of stuff I see written immediately is so typical of the misdirection of this period: The banks have twice the multiple of Goldman Sachs, for heaven's sake!

Why can't people see what is going on? Is it because things are moving so fast? Don't people see what is happening here? The market is saying that no investment bank can be trusted as a place to keep money because Lehman didn't refund the prime brokerage money that hedge fund managers had there!

That meant if you had prime brokerage money at Goldman Sachs, you needed it out. Goldman doesn't keep that kind of money on hand. No way. And the other firms had no desire to lend to Goldman. Why should they?

Where does it say that a competitor should help another competitor when the competitor might be the next Lehman? Goldman has some inventory that may be marked to high and need more collateral. The agencies might downgrade it, etc.

Think about Morgan Stanley last week. When it was at $11, did anyone think, "Boy, I hope it doesn't lose that premium valuation that it has to U.S. Bank (NYSE: USB) (Cramer's Take)?" Did anyone even notice that Wells Fargo (NYSE: WFC) (Cramer's Take) trades at 17 times earnings?

People also have forgotten what these companies do besides prime brokerage: advise on deals (no capital); advise rich people (no capital); IPOs (no capital to speak of); fixed income trading (arguably capital, but nobody's going more than none to one anymore anyway); and stock trading (minimal capital vs. what it has). The business that was killing them is the one that they are the best at: prime brokerage.

So, now, today, you have a commercial bank that sells at about 1.25 times clean book. If the bears are right and it goes down 25%-30% it will be 1 times book, a price you simply can never get for a commercial bank even in bad times.

Yeah, this is real bad for Goldman and Morgan. They would have ceased to exist or never get a multiple again. Now they get to stay alive and have a multiple like banks with bad mortgages and credit card debt!

What a world.