Cramer's Mad Money - Blame It on the Charts (6/15/09)

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Includes: CRM, HIG, LLY, LNC, UNH
by: Miriam Metzinger

Stocks discussed on in-depth session of Jim Cramer's Mad Money TV Program, Monday June 15.

Blame it on the Charts: United Health (NYSE:UNH), Eli Lilly (NYSE:LLY)

Cramer says the charts, not the fundamentals or a catalyst, were to blame for the Dow's 187 point drop on Monday. He thinks the reason for the decline is a technical correction as the S&P 500 and individual stocks moved away from their 10 and 30 week moving averages. Cramer thinks the market will move up again once the indexes and stocks get closer to these averages, something which could happen as early as Tuesday as strong fundamentals start to reassert themselves.

Cramer dismissed rumors that the government won't create more measures to stimulate the economy if there is a perceived recovery. With unemployment still high, there is no doubt the government will continue to help the struggling economy recover. He also doesn't think falling oil prices are a bad thing, because low prices at the pump free the consumer. The weak dollar might also be good for the economy. The fact that Obama's health care plan will be bad for the healthcare sector, especially stocks like United Healthcare and Eli Lilly, did not create fears that led to the market's move downward, since it is already a known factor.

CEO Interview: Salesforce.com (NYSE:CRM), Marc Benioff

Salesforce.com is up 82% since November 2008 and is "on fire," says Cramer. While the economic climate is tough and revenue has grown a mere 10%, Salesforce has $1 billion in cash and is leading the software space with solid growth. While the number of new customers has declined, Salesforce.com has created loyalty and demand among existing customers and its cloud computing should grow in popularity. Cramer says he sees firsthand how Salesforce's software saves money.

Schweitzer-Mauduit (NYSE:SWM), Compellent Technologies (NYSE:CML)

What does it take for a stock to make it to the 52-week high list? Cramer discussed three criteria: a niche, a secular growth driver and consistent earnings beats. Schweitzer Mauduit is the largest producer of specialty cigarette papers in the world and dominates market share, selling its products to the five largest cigarette companies. With 74% of sales coming from overseas, the company benefits from the weak dollar. The Street expected 40 cents per share, while Schwietzer delivered double that at the last earnings call.

Compellent Technologies sells storage area networks to smaller businesses and has carved out a niche business. The storage market is expected to grow by 10% in the next few years and Compellent offers applications that will save customers money. Compellent also beat its earnings and reported 54% year over year growth. Both companies have habit of underpromising and overdelivering their quarters, which is yet another reason they consistently reach their 52-week highs.

Cramer's Outrage: Hartford Financial Corp (NYSE:HIG), Lincoln National (NYSE:LNC)

Cramer has been tolerant of bailouts when necessary, but he is outraged that insurers Hartford and Lincoln should get a free pass after they gambled and lost. They sold annuities they couldn't deliver if the market declined and didn't manage portfolios well. Cramer insists this is a different story from the banks, which were necessary to save. He is also outraged that these insurers have the nerve to demand funds when other insurers decided to solve their own problems.

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e that appearance, shares of Salesforce.com have risen a staggering 82%.

Benioff said the environment is still challenging for Salesforce, with revenue growth at just 10% in its most recent quarter. However, he said the company has $1 billion in cash and is still the fastest growing software company in its class.

Benioff said the economic downturn has affected his company's sales to new customers, but it continues to grow its existing install base as the market continues to adopt its cloud computing model in greater numbers.

Cramer said he remains a fan of Salesforce.com, especially given how NBC Universal, parent of CNBC, as well as

TheStreet.com (TSCM Quote)

, the company Cramer founded and currently chairs, have both seen first hand how the company's software saves money. He said that if investors believe the economy is turning for the better, Salesforce.com is the stock t

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and his Stop Trading! Picks.

Get Cramer's Picks by email-- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com