Cramer's Lightning Round - Disney's Mouse Might Roar (2/3/09)

Stocks discussed on the lightning round ession of Jim Cramer's Mad Money TV Program, Tuesday February 3.

Bullish Calls:

Disney (DIS): “I don’t think this stock has much downside below $18…At $18, I’m pulling the trigger. It is a good brand name. I wish it had a better dividend. I like the franchise.”
Mastercard (MA), Kinder Morgan Partners (KMP)
Celgene (CELG): “Reported a monster good quarter…very big drug released on Friday... the stock has been stalled here…you’ve got a good one…buy it and put it away.”

Bearish Calls:

Pfizer (PFE): “Pfizer is a trainwreck…it cut the dividend…there are a zillion drug stocks I like more than Pfizer...it is time for a new leader at Pfizer. That guy (Jeff Kindler) has done absolutely nothing.”
Transocean (RIG): “I know RIG’s chart looks good. I don’t’ think the earnings are there. I think you should sell.”
Vimple (VIP): “I’m not recommending any Russian stocks…Russia dropped off the radar screen…they’ve gone back to their Communist roots.”
BB&T (BBT): “I used to be bullish, but I pulled my horns on all the regionals. I don’t want to be anywhere near BBT. I have to sell the stock as much as I like the company.”
Palm (PALM): “A high risk stock…been looking at it…I don’t know whether to sell or buy..I’m waiting for a pullback.”
Discover Financial (DFS): “Too much risk. I’d rather have growth in the credit card business. That dividend isn’t enough to sway me. I’m bearish. I say sell, sell, sell.”
Rambus (RMBS): “Another disappointing tech stock. I want nothing to do with it.”
Force Protection (FRPT): “Huge disappointment. I don’t think it is going to change.”
Osh Kosh (OSK)
Atlas Energy (ATN): “That yield is suspect. I am very worried they can’t make it. I defer to Kinder Morgan.”

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Comments

[deathblosom:]

You must be foolish saying FRPT is bearish. Lot's of cash, no debt, and several top quality products for protecting our troops. New management has turned the company around and with some orders for their new product line, Cheetah's, to replace Humvee's, which offer no protection from IED's, or with their new Force Armor protection for ANY vehicle, you can't go wrong with a stock that has this low of a price and so much up side.

Feb 04 03:04 PM

[User 283977:]

OK, lets say DIS is at a bottom… so what? It provides less than a 2% dividend. In this kind of a market the only reason to buy would be anticipated increases in its stock price. Its currently below its support level of around $21 a vicinity where its been since November. There was a lot more then normal volume in this stock today, and the stock dropped by 7.9% to $19. So a larger proportion of that volume was selling.

Where does he expect the stock to go, and by when? There is ZERO evidence of a upward trend in this stock, and Cramer says that the single worst and most common investing mistake is adopting a "buy and hold" strategy:

seekingalpha.com/artic...

That coupled with his recommendation of buy, zero evidence of an upward trend and Disney missing their numbers along with a large volume of sales the day after his recommendation…

If the stock showed evidence of breaking out of its support level, ok, but buy now because its at a low… If it just goes mostly sideways, you end up having your investment capital tied up with a 1.7% dividend zombie stock.

Feb 04 06:58 PM

[searcher:]

Every market cliché has its day, and will again. That's why they're cliché. "Buy & Hold" - "Tade around core holdings" - etc.

Feb 05 02:36 PM

[PeteK:]

some people find out that Disney owns News media (ABC ?)
and the news nowadays are so bias and some are anti-women.
Thus, end up hating Disney instead. Why the hell DIS wants to
own the news media anyway. Stupid thing to do. No money made there
and people hate bias. GE too. why own NBC ? Crazy ?

Feb 05 11:46 PM

[PeteK:]

Cramer is nothing but a loud mouth.
ATN just announced a dividend of 61 cents.
At under $16 a share, that's 15%. APY.
The company is as solid as Rocky Mountain.
Don't know what the hell he's talking about.

Feb 05 11:51 PM

[User 353293:]

Re: DFS. OK, you got the growth thing right. DFS not a true growth play. RISK? DFS philosophy always steers to solid high quality consumer. They're suffering from bad economy, but losses better than competition. I'm BUYING!

Feb 08 06:22 PM

[einstein p ...:]

Picked up some ATN at an average of 12.50, after selling the stock in the mid 30s. The company first came to my attention while I was watching Mad Money. Made a nice profit on the sale, along with the dividends. Was a bit surprised that Cramer backed off of ATN at this level, especially since the company seems to be well hedged and even he thinks oil has bottomed. Very comfortable with owning ATN at these levels ---- someone tell Jim that KPM isn't the only way to play the oil patch and it may not even be the best way to play.

Mar 01 05:41 PM

[Magic by Mark:]

Disney is a dog. Iger should resign. No one has any disposable income left for movies, toys or theme parks. ABC's viewership is declining with no end in sight. Get out while you can. No upside.

Sep 29 12:36 PM