Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday May 23. Click on a stock ticker for more analysis:
Cramer says that winners during an economic slowdown are those companies that buy back a good portion of their shares. He listed 15 companies with the most effective buyback strategies. The top five:
- Sears Holdings (NASDAQ:SHLD) - a good all-around stock to have in a portfolio.
- Chevron (NYSE:CVX) - this company is the cheapest of the integrated oils, and Cramer praises the company's 3.6% dividends for shareholders.
- Bank of America (NYSE:BAC) and Citigroup (NYSE:C) - because of their high fees, these banks have a lot of extra cash to reward shareholders with high dividends and to buy back shares.
- CBS (NYSE:CBS) and News Corp. (NASDAQ:NWS) - Cramer notes that CBS has some extra cash, because it has just sold some theme parks.
- Nokia (NYSE:NOK) - This company just bought back 1.4 billion euros of stock, and is expanding in China.
Cramer's other buyback picks include: Time Warner (NYSE:TWX), Pepsi (NYSE:PEP), Home Depot (NYSE:HD), Amgen (NASDAQ:AMGN), Texas Instruments (NYSE:TXN), Johnson & Johnson (NYSE:JNJ) and McDonald's (NYSE:MCD)
Bird Flu : Don't Believe the Hype
Cramer is not worried about bird flu, and suggests buying Sanderson Farms (NASDAQ:SAFM), which has recently surpassed the competition, kept production steady, and seems poised to raise prices. Since the company raises all of its chickens indoors, the chickens do not have a high risk of infection. Sanderson Farms trades at 6x next year's earnings, whereas the traditional multiple trades at 8x or 9x earnings.
Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.