Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday November 21.
Cramer recommended Owens Corning last spring as a green stock, and since then, green stocks have been savaged due to falling oil prices and hedge fund mania. Owens Corning was at $24 and has been cut in half. However, the company has been doing everything right, is still the leader in all of its businesses including its famous insulation business as well as roofing, asphalt and composite materials. Michael Thaman commented on the discrepancy between Owens Corning’s stock price and performance, particularly in its growing roofing business. He thinks government incentives should be put in place to encourage more energy-efficient construction, including insulation. Although the company has seen declines in wind turbine sales, Thaman is optimistic that growth overseas will compensate for falling demand domestically. Cramer says OC may be a good buy if the hedge funds stop selling and oil prices go up. For those who want to buy in the near future, he would buy when the price falls to $10.
While Cramer has had harsh words for Obama’s Treasury Secretary pick, Tim Geithner, he is willing to give the future Secretary a chance, and hopes he learned from his mistake in letting Lehman Brother’s collapse. The new target for Cramer’s outrage is SEC chairman Chris Cox, and Cramer says if Obama replaced Cox, he could improve the economy dramatically without spending a dime. Cox’s crime was to repeal the uptick rule, a regulation adopted in the 30s to prevent another stock market crash. The uptick rule requires short sellers to wait for a buyer to pay an uptick, or a higher price, before shorting a stock. Without such a delay, short-sellers are able to create the kind of artificial panics like the one that slashed value in Citibank. "I think the shorts played a key role in obliterating this once great American bank,” Cramer said and added the uptick rule is essential “ to bring capitalism, not capital destruction, back to our markets."
While Cramer has not been bullish on enterprise software, particularly when Salesforce was at a “pricey” 54, he was impressed by the fact Salesforce reported a better-than-expected quarter and its price fell 2.2%. Salesforce saw earnings, growth, a record number of new customers and an improvement in October sales even as other enterprise software companies were swooning and the consumer was sluggish. Marc Benioff says the secret is his company is “singularly focused on customers” as the best strategy for tough times. Cramer praised Benioff because his company is performing “miraculously” and says when the clouds of the economy finally lift, he might be interested in Salesforce as growth stock.
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