Cramer's Mad Money - Palm vs. Apple? No Contest (7/23/09)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday July 23.

Apple (AAPL) vs. Palm (PALM)? No Contest

Cramer was bullish on Palm a month ago, but that was mainly because the stock had been so badly hammered and the only place it could go was up. The Pre smartphone was also a catalyst, but a few weeks after the release, there is talk of a high return rate and dissatisfaction with the product. Apple still reigns supreme as king of the iPhone. With Palm stock up an astounding 360% Cramer says the trade is over, and it's time to take profits in Palm.

Tech is Washington Immune: Apple (AAPL), Intel (INTC), Cisco (CSCO), Oracle (ORCL), Google (GOOG)

Cramer says he knows the secret behind tech's success; it is Washington-proof. While Obama may have issues with oil and healthcare, tech companies don't create emissions, raise the cost of Medicare or cost the government money. These companies keep coming out with new products and don't need bailout money. Cramer has been bullish on tech for a while because of lower chip inventory and the mobile internet revolution. Top picks in the sector include Intel, Cisco, Oracle, Google, and especially Apple, which Cramer thinks is the "most Washington-immune stock" and predicts it will reach $200. Since the resurgence of tech is tied to Obama, Cramer predicts the trend could last for three and a half years.

CEO Interview: Dan DiMicco, Nucor (NUE)

Dan DiMicco made hopeful yet cautious remarks about the recovery of Nucor, the steel industry and the economy. While his customers have started buying more steel, DiMicco wonders whether this demand is real or whether purchases are made simply to restock inventory. The company beat revenue and earnings expectations, and DiMicco feels the industry has found a bottom, but thinks this bottom may last as long as three years. Unlike other companies, Nucor is not slashing jobs but is reducing some full-time positions to part-time until the economic climate improves; DiMicco commented his workers are the key to keeping costs low.

Ban Naked Shorts

Cramer invited Senator Ted Kaufman (D-Del) who is proposing legislation that would restrict naked short selling. Cramer applauded the senator's idea of a "hard locate" system which would make shares available before shorting can occur. Kaufman's goal is to make it impossible for anyone to short shares they don't own or that don't exist and wants to remove incentives for bringing the market down. Cramer applauded the proposal and said reform is necessary.

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Comments

[brajaharidas:]

Naked Shorts? I have absolutely no inkling what sort of animal this is. Of course, since I do not dabble in shorts, puts and calls, I have no idea what a short is either.

Jul 24 01:23 PM

[Buckoux:]

"Cramer applauded the senator's idea of a "hard locate" system which would make shares available before shorting can occur."

Good luck with that. Someone will always find out who is shorting what and why and will respond accordingly. But not government. "Naked" shorts however, must be a felony in the order of a career booster for a federal prosecutor. That's how to accomplish enforcement.

Jul 25 12:04 PM