Cramer's Mad Money - March Went Out Like a Bull (3/31/09)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday March 31.

Out Like a Bull: State Street (NYSE:STT), Bank of New York (NYSE:BK), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), IBM (NYSE:IBM), Taiwan Semiconductor (NYSE:TSM), Chevron (NYSE:CVX), Devon Energy (NYSE:DVN), McDonald's (NYSE:MCD), UPS (NYSE:UPS), FedEx (NYSE:FDX)

Cramer declared another victory against the "depressionists" who think 2009 is a replay of 1929 and could not believe the rally on Tuesday. Banks such as State Street and Bank of New York showed strength and tech names Apple, Google, IBM and Taiwan Semiconductor led the sector up. Oil futures saw the strongest gain in eight months and brought up stocks Chevron and Devon. McDonalds, UPS and FedEx also saw an upside. "March came in like and lamb and went out like a bull," said Cramer.

FirstMerit (NASDAQ:FMER), Huntington Bancshares (NASDAQ:HBAN), PNC Financial (NYSE:PNC), KeyCorp (NYSE:KEY)

While Cramer has been avoiding regional banks in the current crisis, he says there the situation may be the same as it was after the S&L crisis (1989-91) when new banks popped up and profited from the collapse of old banks. He thinks the scenario could happen again, and has singled out FirstMerit as a possible winner. Although it has bigger competitors: Huntington BancShares, PNC Financial and KeyCorp, FirstMerit has a higher portion of good loans, is profitable and has 12.6% return on equity. Cramer gives credit to CEO Paul Craig, who took the helm in 2006, for turning the company around. Finally, FirstMerit is in a strong position to buy up weaker competitors. Cramer would wait until Thursday to buy FMER.

Off the Charts: Caterpillar (NYSE:CAT)

Cramer has liked Caterpillar consistently and is still bullish, but is it because of fundamentals or the chart? a technician would note that the stock has done a reverse head and shoulders and is ready to climb up again; the ideal price is between $24 and $26. Cramer likes Caterpillar for one fundamental reason: it is done going down. The stock is not well-liked on the Street, but demand from China and a housing upturn might send the stock roaring back.

Special Guests: Captians Sig Hansen and Keith Colburn of Discovery's The Deadliest Catch with Darden (NYSE:DRI)

The markets have been as dangerous as the adventures depicted on Discovery's The Deadliest Catch; crab is one of the most secular commodities out there, and Sig Hansen and Keith Colburn are braving more than the waves and the elements with their business. Cramer asked how a company like Red Lobster can charge so little for crab legs and wondered if the fishermen were really making any money. The fishermen said they lucked out because a lot of their crab was pre-ordered before the market crashed and the yen was strong, so orders going through Japan were fine. However, they think the domestic demand is healthy, although competition from Canada and a drop in prices are growing concerns.


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