Recap of Jim Cramer's radio show on Tuesday May 23. Click on a stock ticker for more analysis:
General comment: Gas Guzzling
"We are one hurricane away from using up all the natural gas we have," Cramer commented, noting that the threat of a shortage has not raised gas prices, which are still hovering at a 15-month low. Natural gas prices declined along with commodities in the recent pullback. Cramer suggests buying Chesapeake Energy (NYSE:CHK),"the best-run natural gas company in the world," while the stock is still low. However, Cramer does not necessarily recommend buying other commodities, such as gold. "You typically get a nice bounce after a big decline," Cramer said, and added that a smart investor should sell into this gold price increase.
Picking up the Pieces from the ETF Sellout
Due to the recent pullback, many investors are selling foreign ETFs, and, as a result, many stocks in Brazil, South Korea, and Switzerland are falling rapidly as they are being unloaded from their ETF baskets. Cramer sees an opportunity for picking up good ETF constituents, such as the Swiss power plant, ABB (NYSE:ABB); "it's the largest company in Switzerland, and I've been buying it hand over fist for my Action Alerts PLUS charitable trust." Cramer also touts Indian auto manufacturer, Tata Motors (TTA), which is the largest car company in India, and has suffered a decline in price because of group selling. ETFs are not Cramer's favorite instruments -- he recommends individual stocks or mutual funds.
*Nokia (NYSE:NOK): Cramer prefers NOK over rival Motorola (MOT), since Nokia recently bought back 1.4 billion euro in stock.
*Yahoo! (NASDAQ:YHOO) and Google (NASDAQ:GOOG): Cramer said that the article in Barron's praising Yahoo's CEO and CFO was "fair" and that he likes the company's strategy of using extra capital to buy back stock. He feels that people are wary of Yahoo! because it has fallen rapidly.
*Intel (NASDAQ:INTC), Dell (NASDAQ:DELL), Cisco Systems (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT): Although prices are currently low, Cramer does not see a potential bounce for these technology stocks in the near future.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.