Cramer's Mad Money - Watch the Credit Markets (4/1/09)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday April 1.

Watch the Credit Markets

When trying to understand the latest rally, Cramer suggested viewers stop looking at stocks and pay more attention to credit markets and housing. These two sectors signaled the beginning of the current crisis and they will also indicate a turnaround. Cramer sees hopeful signs in the issuance of convertible bonds and the willingness of hedge funds to buy toxic paper. The health of the credit markets will spread to stocks within 3 to 6 months, predicted Cramer

Kroger KR), Whole Foods (WFMI), Wal-Mart (WMT)

Cramer asked viewers to help him solve a conundrum. Kroger is a supermarket that seems to be doing everything right by taking market share and managing to compete with Wal-Mart. However, bargain supermarket Kroger is down 19% in the past year and high-priced organic foods supermarket Whole Foods has climbed 85%. Is it the economy or the stores? Whole Foods did report a good quarter and cut costs, but such a dramatic rise is probably due to investor confidence. Cramer ascribes the move to both stocks to the feeling that the country might be coming out of a potential Depression. However, he would take gains in Whole Foods and buy some Kroger cheap, because he thinks it is a well-run company.

Mad Mail: Honeywell (HON)

Cramer told a viewer not to worry about the Honeywell's goodwill accounting, because the rules are quite complicated. He said the stock is a "complete and utter buy."

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Comments

[Maxe Paul:]

Good to see Cramer is back to his best, sell an outperforming stock and buy and underperformer, that makes perfect sense!

And dont worry about Honeywell, if you cant understand how they make money.......BUY IT! LOL, the guy never fails to lead people astray......and their money.

Apr 02 12:02 PM

[reverse mor...:]

I can certainly testify to the fact that housing is a hot, and in some cases, sensitive issue. Since my particular niche is reverse mortgages, I'm dealing with those 62+, and while some of those may be Cramer fans, they're just as likely to be fans of Cramer from Seinfield.

I've found that the reverse mortgage industry has to pay it's dues, based on some predatory lenders from the past, just as a friend of mine has to do in the penny stock arena.

As for me and Cramer (both the mad one and Seinfield one), I'll keep watching, there is always a nuggest or two to gleam.

Apr 02 03:57 PM

[grtscott:]

Look, Cramer is just a guy doing entertainment TV - period! If you'r elooking ofr his stocks to pan out, you are the mad one. The guy is running a darn entertaining TV show FIRST, picking stocks second. However what he does do, while 100% entertaining, is bring some basic economics 101 into play for your average American that has time to watch an hour of this guy. Think about it... There is a segment where the public calls in to see if their 5 stock portfolio is diversified! OMG, are you kidding me? BUT, If you look at his global approach to our economic feelings of the day, he's usually right about that stuff (which has nothing to do with his TV show - remember its about entertainment), and alot of people can handle only that at best. The picks make the show entertaining, it's the action step or FEEL GOOD at the end of the show.

Apr 16 01:26 AM