Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday May 26.
A viewer asked why Cramer was so bullish on regional banks when institutional investors are shunning these financials. Cramer replied that the strong regional banks like First Niagara are going to have the chance to swallow up weaker banks, like Fleet did in the wake of the Savings & Loan crisis in the 80s.Cramer told another viewer that Pfizer's acquisition of Wyeth won't help it much; "It's a deadweight stock
Tessera Technologies (TSRA)
Even though Tessera has had a sizable run from $16 to $20, Cramer thinks it is an even better buy right now because the International Trade Commission ruled in Tessera's favor in a patent infringement case. Now Qualcomm, Motorola, Freescale Semiconductor and others have been told to stop imitating Tessera's products and to pay licensing fees, which should generate $60 million in royalties this year.
Tessera has many new products set for release and it focuses on semiconductor miniturization, or making smaller, more efficient chips. It produces tiny cameras for phones and computers and is working on a cooling system for laptops. While it is unlikely the patent infringement decision will be reversed, Cramer would still treat Tessera like any speculative stock and urged viewers to do their homework, use limit orders and avoid buying an entire position all at once.
Apple's upgrade and surging consumer confidence did not cause the Dow to climb 196 points. Oil, tech and banks were just continuing the rally they started in March after taking a breather on Friday's decline; the consumer confidence number was merely a catalyst that returned the market to the direction it was headed anyway - upward. After pulling back on Friday, Apple gained $8 on Monday, Google $10 and RIMM $5. For those who missed out on this opportunity, Cramer urged investors to use pullbacks as buying opportunities, because down days in a bull market are like launching pads to propel stocks even higher. Cramer disregards the bears who predict a 6,500 Dow and declines of more than 10%.
Off the Charts: General Mills (GIS)
Cramer is a fan of General Mills, but at the right price, which is not at its current $52. He used both technical and fundamental analysis to make his case. According to the charts, the stock has a resistance level of $55-$57. While that is up from $52, it doesn't mean much of an upside. Cramer is worried about General Mills' 7 cents per share earnings miss, especially since management had indicated that the company's performance was strong. Looking back at the charts, the ideal place to buy General Mils is between $48 and $50; "Above that level, I think you're paying too much," Cramer said.
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