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Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday May 19.

Stop the Press Pessimism: First Merit (FMT), First Niagra (NASDAQ:FNFG), Glacier (NASDAQ:GBCI), New Alliance (NYSE:NAL), People's United (NASDAQ:PBCT), BB&T (NYSE:BBT), Agco (NYSE:AGCO), Deere (NYSE:DE), Johnson &Johnson (NYSE:JNJ), Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO), Ingersoll-Rand (NYSE:IR), Caterpillar (NYSE:CAT), United Technologies (NYSE:UTX)

Cramer says he is tired of seeing media pessimism because it encourages investors to sit on the sidelines and miss bullish trends. He read a headline decrying the 12% decline in housebuilding. Cramer says that is a good thing, since a reduction in inventory will help the housing market bottom and may drive up prices. The Wall Street Journal discussed the $100 billion commercial real estate problem and its effect on regional banks. However, Cramer thinks $100 billion is not such a big number and bad news for weaker regional banks is good news for the winners, such as First Merit, First Niagra, new Alliance, People's United and BB&T.

A New York Times article lamenting the effect on repaying TARP may have on taxpayers indicates the media wants to have it both ways; first they complain that the government gives funding for banks and then complains when these loans are paid back with interest? The Wall Street Journal discussed problems in farming, but Cramer noted the strong performance of fertilizer and farming stocks in the rush to grow more crops.

Every publication is complaining about the weak dollar, but this is good news for companies that have significant international exposure like Johnson & Johnson, Procter & Gamble, Coca-Cola, Ingersoll-Rand, Caterpillar and United Technologies.

Sprint (NYSE:S), AMD (NYSE:AMD), Motorola (MOT)

Speculating is not merely a throw of the dice, but requires research and discipline. Cramer analyzed three stocks: Sprint, AMD and Motorola, to determine which one was the best speculative stock. Motorola has the weakest position of the three, with Apple and Research in Motion as its main competitors and a mere 6% market share in handsets. Its mobile device business is losing money and operating margins are down 21%. In spite of all this, the stock has risen 41%, an undeserved move, according to Cramer.

Sprint's story is better than Motorola's; while it has competition from Verizon and AT&T, Sprint's main advantage is in its pre-paid Boost Mobile business and its Palm Pre which is giving the iphone a run for the money. Spint has been streamlining its work force, cutting costs and is expected to generate $3 billion in cash. Cramer thinks Sprint could be an attractive takeover target. Sprint has seen a 200% gain and Cramer thinks it may be time to take profits.

While AMD has both Intel and Nvidia to compete with, Intel's recent $1.45 billion fine for uncompetitive practices in the EU and anti-trust concerns in the U.S. will boost AMD. The company is seeing increased demand for its new products and has finished selling off 55% of its semiconductor manufacturing business while reducing its debt. AMD has moved 103%, but may have more upside with its improving fundamentals.

Of these three speculative stocks, AMD is the winner, second prize goes to Sprint and Motorola is in last place.

Off the Charts: Cummins (NYSE:CMI)

According to technicals, Cummins is in a great position; investors are buying on weakness and selling into strength and transforming its resistance line into a support line. Cummins recently broke above its 50-day moving average, and Dan Fitzpatrick thinks is is going to break its 200 -day moving average. However, Cramer recommended caution; Cummins is only a buy if the dollar stays low. If the dollar rises, the bullish story for Cummins is over. He says he prefers Caterpillar (CAT) for its overseas growth potential.


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Source: Cramer's Mad Money - Stop the Press, Stop the Pessimism (5/19/09)