Cramer's Mad Money - Obama's First 100 Days (4/27/09)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday April 27.

Obama's First 100 Days: JP Morgan Chase (JPM), Bank of America (BAC), American Express (AXP), DuPont (DD), IBM (IBM), Intel (INTC), Home Depot (HD), Procter & Gamble (PG), Kraft (KFT), Merck (MRK), General Motor (GM)

Cramer gives Obama two thumbs up for his first 100 days, basing his evaluation on the performance of key stocks since January 20. JPMorgan is up 82%, Bank of America 75%, American Express 55%, DuPont 18%, IBM 22%, and Intel and Home Depot both gained 19%. Cramer sees the latter's strong performance as a sign that housing is bottoming and the upsurge in banks as proof of a general upturn. At the same time PG, Kraft and Merck, stocks people buy if they feel the economy is declining, have not been performing well. While GM's stock price has declined 41% since January 20, the company is going through necessary and painful reforms which are driving down the stock price.

Frontline (FRO), Nordic American Tanker (NAT)

Business has not been good for oil tankers with rates at historic lows and OPEC's supply cuts. However, looking closer, spot rates (immediate payment) have increased in some areas (especially going from the Middle East to the East) up to 40% in just a week. Other indications of a potential upside include recovery in China and an uptick in the Baltic Dry Index, which is a good tell for shipping in general. Cramer's two picks include Frontline, which has a 5.5% dividend and a large number of its ships chartered out already for 2009 and 2010,and Nordic American, which benefits from rising spot rates and offers an 8% yield.

Hewlett Packard (HPQ)

Cramer took issue with a New York Times article that compared Hewlett Packard unfavorably to Apple, Research in Motion, Amazon and Google. However, the company that has grown from a PC business to a technological innovator doesn't need to come up with the newest cool gadget to stay on top. While the article called Hewlett Packard "the dull grunt of the tech world" the company reported a 3% increase in computer shipments while the decline in the industry has fallen 7%.

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Comments

[funfun:]

DuPont's bounce-back since January is highly suspect because it appears some traders and investors are NOT factoring in--

(a) the yearly dividend of $1.64 is highly likely to be slashed in the midst of DuPont's cash flow famine and systemic weakness throughout, and more significantly,

(b) the unfolding BIG BLACK HOLE in Pharma earnings. Over $1 billion yearly in DuPont Pharma PTOI will soon disappear with the sure and certain expiration of two DuPont drug patents, Cozaar® and Hyzaar®. These patents and their exclusivity are the only assets left in DuPont's fading and phased-out Pharma "platform".

$1 billion-plus yearly in PTOI goes "POOF"! ...funfun..

Apr 28 08:50 AM

[Mutual Fund...:]

Cramer and anyone else can look at past results and make comments, for J.C. I guess he finally figured out that this way he will never be wrong. Good on him......He certainly has failed at predicting.

Doug T.......The mutual fund guy
www.mutualfundwealth.com/

Apr 28 09:09 PM