Jim Cramer's Mad Money In-Depth Stock Picks 6/29

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday June 29. Click on a stock ticker for more analysis:

Note: The following is a recap of show that was broadcast in April. There is no 'Lightning Round'.

Go for the Burn: DJ Orthopedics (DJO)

Since baby boomers are trying to get in shape to ward off the effects of aging, Cramer sees a potential for orthopedic products, such as knee and ankle braces. He picks DJO, which recently acquired Aircast Incorporated,"the Moby Dick of knee accessories," and the stock has jumped 13.5% to nearly $40 after the deal. However, Cramer would wait for a pullback before picking up DJO. If it earns $2 a share, Cramer suggests taking the stock to $46.

Reading Between the Lines: Mindspeed Technologies (MSPD)

Cramer admits that he was wrong when he suggested buying MSPD in March, based on an article he read in The Washington Post. He believed that the company, which supplies processors and fiber to the premises, or FTTP, necessary for VoIP, would benefit from the successes of Finisar (FNSR), JDSU (JDSU) and Broadwing (BWNG), and since it was down 10%, he thought it was a good buy. He suggests reading between the lines when it comes to stocks.

Going to the Extreme: Zumiez (ZUMZ):

Cramer notes the rising popularity of "extreme" sports, such as snowboarding, and picks Zumiez, since it "stands up to the homework test." The company has reported October same-store sales growth of 10%, a 29% increase in sales, and that it is expanding stores into the Midwest and East. The fact that people have to drive a long way to ski has not hurt the stock, in spite of high gas prices: "If Zumiez can do this kind of growth in an environment where gas is expensive, just imagine how well it will do as the price of gasoline comes down," Cramer said.

Short Sell List:

Cramer commented on a Wall Street Journal article about the advantages of betting against short-sellers, adding; "there's money to be made...but only when (the stocks) are good ones." He analyzed the article's list of the most heavily shorted stocks.

1. Accredited Home Lenders (LEND): Cramer believes that this stock will go lower.
2. OmniVision Technologies (OVTI): This company missed its estimates for two straight quarters, and Cramer comments, "I don't like it."
3. Red Robin Gourmet Burgers (RRGB): At 32 times earnings forecasts, Cramer says this stock is "absurdly expensive."
4.Calpine (CPN): Cramer says this stock will continue to go lower.
5. Martha Stewart Living Omnimedia (MSO): Cramer believes this stock is overvalued because of "Martha hype."
6.Winnebago Industries (WGO): Cramer says the shorts can expect some number cuts.
7. Beazer Homes (BZH): "I'd be short the homebuilders if I was at my fund right now."
8. Eagle Materials (EXP): Cramer would do a 'mon back on this stock, saying that the shorts are wrong. He praises the company's increase in prices, cashflow and buyback, but adds that they have the "high quality problem" of not being able to keep up with demand. The only thing that worries Cramer about EXP is the possible repeal of the tariff on Mexican cement imported to the U.S

Go Retail: United Parcel Service (UPS), Google (GOOG), Yahoo! (YHOO), FedEx (FDX) and Amazon.com (AMZN)

Cramer called UPS the "obvious pin action play" as retail sales on the internet continue to grow, and notes that advertising dollars are being transferred from newspapers to Google and Yahoo! He also likes FDX, placing it second behind UPS. Cramer is bearish on AMZN, which is now facing stiff competition and is being "eaten alive by shipping costs."

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day

Comments

[Max Petrisek:]

Regarding another report on Cramer's picks: The study issued for the '05 period as reported to Seeking Alpha is valid. A fast trader can make some profit for some few days later but then the gains get wiped out and reverse. I posted my study of about one month time period after 40 Cramer picks in early '06. After one month Cramer's picks did worse than the overall markets. These poor results by Cramer could add to the many scams sent to Seeking Java??? SA should be smart enough to determine if there is a relationship.

2006 Jul 02 11:24 AM

[Max Petrisek:]

gottcha?

2007 Sep 15 07:57 AM

[Max Petrisek:]

Seeking Alpha knows what type of financial media "sells." So what's new ? Everyone should know Seeking
Alpha is "pushing" Cramer's every pick on a daily basis. This is not done because Cramer's picks can make money for most of Cramer's or Seeking Alpha's readers. I have for the 3rd time over a period of 2 years done a statistically valid study of Cramers picks and in each case Cramer's picks were horrible. It didn't matter whether they were buys or sells or for 1 month or 6 month period. They were really horrible and wrong to a significant amount. Seems that Seeking Alpha & NBC are aware that Cramer is a popular comedian and he has a following. Street people, not investors, want someone to light them up with a urgent dramatic call to buy or sell now. Even while Cramer is spilling his recos on TV many of the more liquid stocks are in a dramatic change as he speaks. He's looking good for the moment as jumps and screams out more advice. What a miracle maker a magician or better an apparent exciting stock guru- that's Cramer. It's exciting to place the order on a Cramer call. That's where the excitement stops in a very short time of less than a few days. Then the great Cramer recommendations goes sour. I felt verification of my opinion based on sound statistics should be verified. 1st Ii did some repeat evaluation, more stocks and longer time periods, and last were his picks of 6/30/07 were even worse after 4 months (as of 11/4/07) . Then I checked my score keeping of over 2 dozen different investors making Cramer comments on the internet. Since I knew about 1/2 of these other investors for well over 2 years I felt this was a valid test. Over 95 % were adimit that Cramer was a farce. The one that wasn't sure felt he should be given more time. Well the 2 + years are up and it's time that Seelking Alpha and NBC put out more disclaimers to at least warn the uninitiated. NBC to it's credit has increased the warnings and are getting closer to calling the telecasts a comedy or just for your entertainment. Come on Seeking Alpha we know that savvy investment fund managers may be trying to do some a fast swing trade off Cramer's picks. But they must be betting as contrarians or are very nimble or just dumb. I will not waste time doing further extensive evaluations or comments of Cramer's picks. It is a waste of time- in the fullness of time the truth will be self evident! Since Cramer has on a few occasions admitted his problems I have no interest in attempting to psychoanalyzing this really funny comedian. I don't watch him on TV anymore. No thanks to Seeking Alpha.

2007 Nov 04 04:32 AM

[Max Petrisek:]

Cramer's performance does not seem to justify all the attention given him by Seeking Alpha.

2006 Jul 02 11:25 AM