Cramer's Mad Money- Making the Most of Market Ennui (7/10/09)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday July 10

Market Ennui: Honeywell (HON), Home Depot (HD), Wal-Mart (WMT), ON Semi (ONNN), AMD (AMD), Cien (CIEN), Novellus (NVLS)

Crude oil prices and Washington are bringing down stocks and Cramer doesn't think the current negativity is justified, nor will it last too much longer. Good news is being ignored but not for long. Case in point; Novellus was up only 22 cents in spite of two upgrades and predictions of a blowout earnings report on Monday. True, Washington should back off with well-meaning reforms that sidetrack attempts at real economic growth. While some believe cheap oil is an indication that prices on other goods will drop, falling prices at the pump are good for the consumer and can stimulate spending.

Cramer would be a buyer of Honeywell which is down 23 points and yields 4% and Home Depot, which also has a strong dividend. For those who feel more bearish, Wal-Mart is a good choice $1.27 off its low and he reiterated his tech spec picks: ON Semi, Ciena and AMD.

Insana Defends His Calls: Hovnanian (HOV Quote), Toll Brothers (TOL), Lennar (LEN), Citigroup (C), JP Morgan (JPM), Wells Fargo (WFC)

In response to Cramer's charge that Ron Insana was too bullish with his calls, the veteran investor defended his statements with the argument that the economy has reached a secular bottom and stocks are currently priced for failure. While Cramer insisted it is too early to buy homebuilders Hovnanian, Toll Brothers and Lennar, Insana responded that those who bought the last time unemployment approached 11% made huge profits. His call to dump defensive stocks and pay “bargain basement prices for brand-name assets" includes banks such as Citigroup, JP Morgan and Wells Fargo; "If these banks are not going out of business, if they’re not being nationalized,” Insana said, “I think you have to own them.”

Speculation Friday: ArcSight (ARST)

News about cyberattacks in Korea and in the States is the inspiration for Cramer's newest tech spec pick: ArcSight. While the recent attacks were fairly unsophisticated, The Treasury and Defense Department were affected as well as the New York Stock Exchange. Cramer thinks cyber security will be the next big trend and thinks ArcSight stands out because of its clean balance sheet, 3.4% growth rate, and $91 million in cash. Although ArcSight trades at 33 times earnings, Cramer would pay twice the company's growth rate for the stock, and the fact earnings estimates are low may be an indication of an upside surprise.

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Comments

[nutty buddy:]

I bought AMD as a speculative play, based in part on Cramer's call three weeks ago. It went down down 25% before I pulled out - right after Cramer stopped mentioning it and the Street.com (Cramer's own company) downgraded it to a sell on July 7. Huge dollar loss for me, but look here - Cramer is still pushing AMD.

Rather than Cramer's artificial excitement compelling ignorant masses to disrespect the Creator's Name (Boo_---!), we should all cry Boo-Hoo! and watch Cavuto instead. Someone punish me if I ever read another Cramer diatribe - lesson finally learned.

Jul 13 08:17 AM