Cramer's Mad Money - Is the Game Over? (4/6/09)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday April 6.

Is the Game Over?

In spite of Monday's market decline, the worst is over, declared Cramer. The drop should have been much more dramatic given all of the bad news, and the fact that the market ended flat and almost positive is a bullish sign. Cramer would use the decline as an opportunity to buy good stocks. He reminded viewers that gains in recent rallies have been equivalent to a year's worth of upside, so he urged viewers to take some profits and let the rest run. While bears think the game is over, bulls believe that the turn has come.

Speculative Stock: Siliconware Precision (NASDAQ:SPIL), Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA)

While Cramer usually saves his speculative picks for Friday, he couldn't resist discussing the next semiconductor to see an upside - Siliconware Precision. Like many other semis, Siliconware is poised for a rise after drastically cutting inventories and cutting its production by half. The company also implemented cost-cutting measures by closing assembly lines and streamlining its workforce. However, SPIL expects sales to increase 28% thanks to rising demand and has 100 customers, including Intel and Nvidia. Cramer also recommends Siliconware Precision for its generous 8.5% yield.

Bank Stocks: Goldman Sachs (NYSE:GS), JP Morgan (NYSE:JPM), Bank of New York (NYSE:BK), State Street (NYSE:STT), BB&T (NYSE:BBT), PNC (NYSE:PNC), US Bancorp (NYSE:USB), Key Corp (NYSE:KEY), Hudson City Bancorp (NASDAQ:HCBK), New Alliance (NYSE:NAL)

Investors may wonder what to do with bank stocks after a big rally but before they report earnings. Cramer thinks that banks are going to improve, especially with reforms to mark-to-market accounting rules. The main beneficiaries of these reforms will be Goldman Sachs, which doesn't have exposure to mortgages and JP Morgan. Other banks worth buying are Bank of New York and State Street. However, not all banks are created equal; names to sell include: BB&T, PNC, US Bancorp and Key Corp. Cramer emphasized that all regional banks are sells. He sees an upside for Hudson City Bancorp and New Alliance, two banks that have remained relatively stable throughout the crisis.

Cramer's Scorecard: MGM Mirage (NYSE:MGM), Las Vegas Sands (NYSE:LVS), Wynn Resorts (NYSE:WYN), Apollo Group (NASDAQ:APOL), Strayer (NASDAQ:STRA), American Public Education (NASDAQ:APEI), Sun Microsystems (JAVA)

Cramer noted that MGM Mirage is up 76%, Las Vegas Sands, 12.7% and Wynn Resorts 16.2% since he released the stocks from his Sell Block on April 2. His call to sell most online education stocks was also on the mark: Apollo has declined 18% and Strayer, 19%. The one education stock Cramer recommended, American Public Education, is up 25% since his January call, and he suggested taking profits. Viewers who sold Sun Microsystems on Cramer's bearish call last week were fortunate; the stock has fallen 22.7% on the rejection of a takeover bid.


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