Recap of Jim Cramer's radio show on Friday, May 19. Click on a stock ticker for more analysis:
General comment: Federal Reserve Fears:
Cramer blames the terrible slowdown in the market and general fear of investing on the Federal Reserve's raising of interest rates. Concern over impending inflation is not the only reason the Federal Reserve makes this move; speculation is another factor, and the Federal reserve raises interest rates to encourge investors to keep money in the bank and out of the market.
Cramer notes that technology, financials, and healthcare have bottomed, machinery is getting there, but oils, materials and mining still have not declined sufficiently. He recommends picking up stocks, such as Schlumberger (SLB) and Alcoa (AA), which are falling, but show signs of coming back up. These companies have reported excellent earnings. "Buy a little here with the idea that you're not done buying," he says.
Another Look at Technology:
Cramer recommends paying attention to technology stocks that are rapidly coming down, such as Brocade (BRCD). He suggests keeping an eye on Marvell (MRVL) and Advanced Micro Devices (AMD) for futher signs of weakness. He likes AMD, because Dell (DELL) has switched over from Intel (INTC), and is now buying its chips from AMD. Buying and selling these stocks in increments, as Cramer has done with Southern Copper, (PCU) is the recommended strategy; "Bulls make money. Bears make money. But hogs get slaughtered."
*Dun & Bradstreet (DNB): Cramer says that this is the perfect example of a company that performs well in a slump, because people reduce their credit risk with this product. Its nearly 52-week high did not decline during the current selloff.
*UnitedHealth (UN): Cramer touts this stock as one of the best performing stocks he's ever seen. Because of mistakes made in options, the company might face a 12 cent restatement. However, he predicts that UN will eventually have the power to buy back stock, and that the worst case scenario is that CEO, William McGuire, will leave. Still, Cramer suggests buying this stock while it is at a 52-week low and is down 27% year-to-date.
*GFI Group (CFIG): Cramer says that while this company is hurting, it has great financials, and calls it a "winner."
*Nektar Therapeutics (NKTR): This company is going to put a new asthma drug on the market, which will benefit the company. Cramer cautions that while this stock will probably go down before it rises, it is worth buying in increments.
*Akamai (AKAM): The time to buy this stock has already passed, since it has jumped from $31 to $34. Cramer recommends against buying off in selloffs like this.
*Google (GOOG): Cramer notes that while this stock has been performing terribly, there is nothing wrong with the company. He suggest waiting to buy Google until it reaches $350.
*Crystallex International (KRY): This stock is going down, along with gold, and Cramer believes that KRY is speculative. Those who are keen on buying KRY should only buy a small amount.
*Boeing (BA): This stock has gone up, and Cramer suggests waiting for a pullback before buying.
*Procter & Gamble (PG): Although this type of stock usually does well in a bear market because consumers always need soap and similar items, PG reported a poor quarter, especially in the Gilette division. Cramer has sold all of the PG stock in his portfolio.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.