Cramer's Mad Money - Wells Fargo Changes the Game (4/909)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday March 9.

Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Whirlpool (NYSE:WHR)

Wells Fargo's earnings beat should convince even the most bearish investors that the game has changed. Wells Fargo's solid performance wasn't merely an oddity, but a direct result of the coming turnaround as more home buyers are taking advantage of low housing prices and slashed interest rates. Cramer would buy Bank of America and JP Morgan on Wells Fargo's victory, and points to strong performance in Darden and Whirlpool as a sign of consumer health.

Sell Block: Prudential (NYSE:PRU), Principal Life (NYSE:PFG), Hartford Group (NYSE:HIG), Lincoln National (NYSE:LNC), Patterson (NASDAQ:PDCO), Henry Schein (NASDAQ:HSIC)

Cramer had confined insurers to the Sell Block, but he declared that he was changing his thesis on new facts; now that TARP money will be given to insurance companies, Cramer has decided to release Prudential, Hartford Group and Lincoln National from the Sell Block, although He still would not buy them. Dental supplies producers, Patterson and Henry Schein are being added to the Sell Block as dentists are purchasing cheaper equipment from Mexico. The cutbacks are mainly in consumable products which comprise 30-35% of Patterson's and Henry Schein's earnings. The Street hasn't yet realized this, since many analysts are still keeping their buy ratings on th stocks.

CEO Interview Zan Guerry Chattem (CHTT) with Wal-Mart (NYSE:WMT)

The CEO discussed the company's earnings miss of 8%, but feels that Wal-Mart sales were strong and sees a bright second half of 2009. When asked why lower commodity costs hadn't helped the company, Guerry responded that the benefits will be seen soon and the company is planning to release seven new products rather than spend extra money on advertising. Cramer said investors who believe the recession will continue may consider buying Chattem, but bulls should stay away from the stock.


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