Cramer's Mad Money - The CKE Taste Test (6/2/09)

Includes: BKC, CKR, MCD, QQQ, WEN
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday June 2.

CKE Restaurants (CKR), McDonald's (NYSE:MCD), Wendy's (NYSE:WEN), Burger King (BKC)

While CKE Restaurants, has already risen 15% following a bullish call Cramer made two weeks ago, the Mad Money host commented that he wouldn't enter a Carl’s Jr unless 24’s Tony Almeida had planted a canister of pathogen there, and Cramer were the only person in the world who could defuse it and rescue millions of people. CEO Andy Puzder took issue with Cramer's comment on his company's food and fed Cramer a Carl Jr's burger. He discussed the CKE's plans for 300 new franchises in the U.S. and 300 overseas, its celebrity ad campaign geared to 18-35 year old men, and while Pudzer agreed that exposure in troubled California has hurt the company, he is confident CKE will recover along with the economy.

Off the Charts: Nasdaq Composite Index, Powershares QQQ (QQQQ), Apple (NASDAQ:AAPL)

Cramer discussed the analysis of technician Dan Fitpatrick who thinks based on the Nasdaq's last rally, the Nasdaq will likely move up another 7% to 1,584 before retreating. Cramer says the fundamentals agree with this analysis, but added he doesn't see why investors are playing this upward trend with QQQ instead of Apple. He cited a Morgan Stanley analyst who has set a $180 price target for Apple and a prediction that the iPhone will be the main beneficiary of the trend toward mobile internet. The iPhone is set to make a debut in China and the Cramer is impressed that the stock trades at just 17 times earnings and is flush with cash.

CEO Wall of Shame: Fill the Gap

After removing Sandisk's Eli Harari on Monday, Cramer also redeemed Ed Liddy, but only because he is leaving AIG. Cramer says AIG's stock is completely worthless and thinks it a scandal that shares haven't been canceled. He asked viewers for suggestions for new inductees onto the infamous Wall of Shame.


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