Miriam Metzinger submits: Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday June 6. Click on a stock ticker for more analysis:
"Impressionist" Stocks: Lucent Technologies (LU), H&R Block (HRB), and Imax (IMAX) - Cramer suggests avoiding stocks which, like impressionist paintings, look great from a distance, but up close, do not form a coherent picture. While he used to tout Lucent, he discovered that they were hiding their true numbers behind complicated pension and accounting rules. While Imax seemed to be earning, the growth was not organic, and was based on sales of used products. Cramer gave up on H&R Block when they messed up their own taxes in 2004-05. In general, Cramer says to avoid companies that give confusing information and are too involved in M&A activity.
A Realistic Picture of Growth: Pepsi (PEP), United Technologies (UTX), and 3M (MMM)- Cramer says that these companies have what he is looking for in an investment: good dividends, clear information, a good buyback strategy, organic growth, and cash flow that exceeds earnings. Although United Technologies took a beating on Tuesday, Cramer suggests sticking with it.
All That Glitters is Yamana Gold (AUY) - Although gold fell $14 on Tuesday, Cramer is still bullish, saying that its ultimate value outweighs its risks. Cramer chooses Yamana over Goldcorp (GG), Anglo-American (AAUK), and Crystallex International (KRY) (although he likes KRY as a speculative play). Cramer says that Yamana is the cheapest and best gold stock, which expects to produce 400,000 ounces of gold by 2007 and has a market cap of $1.87 billion. "While the rest of the world is running out of gold, they're increasing production," Cramer said.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.