Cramer's Stop Trading! The Best-Acting Retailer Out There (6/1/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday June 1.

First Solar (FSLR), General Motors (GM), Ford (F), Johnson Controls (JCI)

Jonathan Litt, founder of Land and Buildings Investment Management thinks the REIT rally is overdone; those who note that REITs are 10% off their peak need to consider that the peak is based on a time when real estate was strong. He would consider investing in Chinese real estate; CR Land, Hong Kong Land and China Overseas Land & Investment, and would also look at U.S. hotels

Cramer says First Solar is “the only play that I want as oil goes higher.” He suggests buying this stock on weakness following an expected downgrade.

Johnson Controls is a "very well-run company" commented Cramer and has businesses beyond autos. He thinks Ford would have made the ideal replacement for GM on the Dow.

Cramer still believes in Sears - this time as a way to play the consumers' return to shopping malls. He says few people on the Street thinks Sears can pull through, but he thinks Sears is "one of the best-acting retailers out there."

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Comments

[User 424033:]

I have 500 shares GM stock. What should I do with it??

Jun 02 09:15 AM

[Robert Intr...:]

Here is what Cramer said on 4/9/09 about FSLR: He said that for solar stocks such as First Solar(FSLR Quote) to make money, oil needs to be at $80 to $90. He called First Solar "stagnant." The stock was at $141. He changes his tune when the stock was over $187, 4/30/09 and started recommending it. What happen to his $80 to $90 oil statement. If you listen to Cramer you will go broke.

Jun 02 10:25 AM

[maelstrom:]

Yes Cramer is trully a dullard..maybe he repsesents most Hedge Fundies..would explain alot

Jun 02 02:04 PM

[Victhom:]

Hey Jim you see JPM at $60 with P/E of 32???

like MS said??

JP Morgan estimates raised at Morgan Stanley
Morgan Stanley raised JP Morgan estimates due to the smaller than expected equity raise to pay back TARP. Shares are Overweight rated with a $60 target.

I guess i will stick with Barclays UK Bank with P/E of 4.83 and dividend coming in Q3...beeter than US Banks with P/E of over 30 like JPM...GS...WFC.....and better dividend coming...

See what BCS CEO Mr Varley said:

"Varley said that the bank's decision to stay independent was to ensure "our profit performance, and in our resulting ability to pay dividends." Earlier, Barclays Chairman Marcus Agius repeated the company's intention to resume paying dividends in the second half of 2009 and thereafter to pay them on a quarterly basis. The bank plans to make a cash payment in the fourth quarter and a final cash dividend for the year being declared and paid in the first quarter of 2010. "

This way better and cheaper than some US Banks right JIM...Where is you call JIM??

Jun 02 02:43 PM

[paul revere:]

THE SUCKERS RALLY!!!!! BEWARE.

Jun 03 08:24 AM

[paul revere:]

Tarp is not enough for the banks if unemployment continues its rally. commercial loans are the next shoe to drop very soon and the bank stocks will fall again after numbers come out. Tarp force feeding is in place for the banks to have cash on hand rather than going back to the Fed at closing time when the severity of under col lateralization is calculated. We are barely half way through this correction at best. riding the dead cat bounce.

Jun 03 08:32 AM

[spinetta:]

Sears? I'm no fan of Cramer, but I challenge The Almighty One or anybody else to cite five reasons why Sears is "one of the best acting retailers out there." Sears continues to sputter along on momentum from the days when it was America's largest retailer and one out of every twenty four Americans had worked for Sears at some point. Their stores, which actually enjoyed a merchandising renaissance TWENTY YEARS AGO are poorly merchandised, dark, and chock ablock with empty runs of shelves. Nothing about Sears or Kmart indicates that either brand has identified its core customers. The merger of the two brands never went beyond the board room or the balance sheet, and the much ballyhooed real estate play within the merger never bore fruit. So, Jimmy, where's the friggin' beef? Would somebody other than clown prince Jon Stewart please challenge this guy?!?

Jun 03 11:41 AM