Cramer's Lightning Round - Chipotle: Who Needs Overpriced Burritos? (1/9/09)

Stocks discussed in the lightning session Jim Cramer’s Mad Money TV program, Friday January 9.

Bullish Calls:

Kraft Foods (KFT): “I like the dividend, I like [he CEO] Irene Rosenfeld…macaroni and cheese is on fire..I want you to buy and every time it goes to $25, I want you to buy more.”
Quanta Services (PWR): “I think this is such an Obama play and I am amazed others are not wise to them… it is a grid play…the only one that makes money from Obama talking about improving the grid is Quanta…this stock was wrecked by hedge funds gone wild.”
Andarko (APC): “Andarko is the best and the cheapest.”
McDonald’s (MCD): “Show some horse sense, buy MCD not Chipotle.”

Bearish Calls:

SPX (SPW): “You need the economy to get a bit stronger for that company. The economy is killing that stock…I’m on the sidelines. SPW doesn’t’ have that good dividend to protect it.”
Chipotle (CMG): “No, come on…a high, expensive, fast food company, when I’ve got McDonald’s flirting with $60.”
Crosstex Energy (XTXI): “I don’t trust the dividend…this is a red flag dividend. If you are going to buy natural gas…Andarko is the best and the cheapest…the others, I don’t like them… the raggedy rest.”
Walgreen (WAG): “No, no…come on man. They were in that bidding war with CVX…the whole drug business is going to Hades. WAG at $26 is sell, sell, sell.”
Pre-Paid Legal (PPD): “supposed to be very recession resistant…I’ve never gotten excited…I think the business model is questionable…I say don’t buy.”
Ingersoll Rand (IR): “ No, no the quarters going to be bad… …I think people will be surprised by the quarter and you will be able to buy it at $16.
AK Steel (AKS): “I cannot buy AK Steel even at $11…it does not intrigue me…I think they are going to have a problem making the quarter. All the steel stocks have run up too much. I don’t want you touching that.”
Allied Capital (ALD): “What an opportunity to sell, sell, sell. I think you got that lift and you gotta take it. The last thing you need is a leveraged financial.”

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Comments

[Paul Price:]

Cramer says to buy KFT at $25.

The (very briefly touched) absolute 'panic selling' low was $24.75 and the shares are now in the high $27's. It was $25 or less for part of one day in the past 5 years.

What can you do with advice like that?

Totally worthless.

Jan 11 08:37 AM

[Paul Price:]

Warren Buffett has been adding to his IR position in recent months.

Who's opinion do you trust more- Mr. Cramer's or Mr. Buffett's?

Jan 11 08:45 AM

[Paul Price:]

IR Ingersoll Rand...

As of Sep. 30, 2008:

Berkshire Hathaway owned 5,636,600 shares worth $175,674,000

Jan 11 08:49 AM

[Harp:]

KFT has been dead money since the spin off from MO. The dividend is all it has going for it.

Jan 11 09:54 AM

[Karen Consumer:]

Chipotle (CMG): “No, come on…a high, expensive, fast food company, when I’ve got McDonald’s flirting with $60.”

We have two Chipotles in our town, and their business has doubled since the downturn. People even tolerate the fact that neither location has a drive through, they actually park their cars and come in to stand in line. And if your a small eater, one burrito bowl can serve as both lunch and dinner (at a cost of $5.40 to $5.65).

Get out of the studio and live a little man.

Jan 11 10:34 AM

[Dan Jacome:]

there is a typo in the WAG comment, I think he meant CVS. not CVX.

Jan 11 10:50 PM

[BlueOkie:]

If you don't like what Cramer said just wait he'll change his position. At one time WAG was best of breed. Money says it'll be back as the other bear calls. The bull calls will also reverse with a I missed that one. Cramer is instructive but not a very good broker.

Jan 12 08:57 AM