Jim Cramer's Real Money Radio Recap 8/03

Recap of Jim Cramer's radio show on Thursday August 3. Click on a stock ticker for more analysis:

Power Trip: Halliburton (HAL), Jacobs Engineering Group (JEC), Fluor (FLR) and Consolidated Edison (ED) - With global warming raging on, Cramer predicts that power companies will build more plants to deal with the increasing demand for air conditioners, and will hire companies such as HAL, JEC and FLR to do the work. Cramer says these stocks will do well, regardless of the Fed. He insists that infrastructure is the next big thing, although the Street hates the sector right now.

A Stain on Clorox (CLX) - CLX has bounced back from $57 to $59 on the rumor that the company will be taken over. This assumption is based on the fact that CLX has yet to name a new CEO, but if the company were anticipating a bid, it would have mentioned this on its conference call, according to Cramer, who doesn't like CLX's raw costs, notes that it is getting beaten, and suggests ignoring the hype and staying away from it.

Mindless Market: Sears (SHLD) - Concerning the sudden fall on Thursday from a two-day rally, Cramer notes that there is a widespread assumption that a rally has to end before a Federal Reserve number comes out. Many people believe that if the Employment Number is weak, the Fed will stop raising interest rates. Cramer bemoans the fact that every time the market is up one day, it is down the next. On a brighter note, Cramer observed that SHLD rose from $139 to $143 because of air conditioner sales. He comments that SHLD is a trade to make and to lighten up a little on.

Cramer on Demand: Hewlett-Packard (HPQ) - Listeners picked HPQ as the stock they most wanted to hear about, and Cramer said that HPQ is the only consistently strong tech pick right now.

Bullish calls:

Altria (MO): Cramer believes this company which owns Kraft Foods (KFT), SAB Breweries and cigarette companies will soon reach $100. Although KFT has been performing poorly, he likes the new CEO and says that MO has a risk/reward ratio of 20 points up and 3 down.
Qualcomm (QCOM): High expectations in the past hurt this stock, and now, low expectations have helped it bottom out. Cramer believes it is a good buy for those who want cellphone exposure.
Pfizer (PFE): Cramer calls this a good, cheap stock and he believes the company will not be damaged by its court cases.
Hewlett-Packard (HPQ): Cramer likes the management at HPQ.
UnitedHealth (UNH): Cramer is bullish on this stock.
Exxon Mobil (XOM): Exxon has a huge amount of untapped resources, says Cramer, and suggests holding onto it or buying it if it pulls back.
ConocoPhillips (COP): Cramer says that COP is the best company in the sector.

Neutral/Bearish calls:

Hershey (HSY): Cramer is puzzled by why Sanford Bernstein downgraded HSY, which he believes is a good company. He says he wants to investigate before commenting.
IBM (IBM): Cramer doesn't see any momentum in IBM.
Palm (PALM): Although this company has a good risk/reward and is $10 down from its high, he doesn't see a catalyst that will bring it up.
Automatic Data Processing (ADP): Cramer believes that ADP has peaked.

More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.

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