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Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday August 10.

Krugman Is Wrong: Coach (NYSE:COH), True Religion (NASDAQ:TRLG), ON Semi (NASDAQ:ONNN), Skyworks (NASDAQ:SWKS), Tellabs (NASDAQ:TLAB), International Paper (NYSE:IP), Aluminum (NYSE:AA), Ford (NYSE:F)

Cramer took issue with Paul Krugman's thesis that the economy is just getting worse more slowly and not getting better. He said Krugman takes the academic, top-down approach and is assuming the only reason the Dow has been performing is because of government intervention. Cramer advocates the "bottom-up" approach of looking at earnings reports and CEO statements. He observed the government is not buying pricey Coach handbags, or $400 True Religion jeans or Apple's iPods; the consumer is responsible for the rallies.

The government is not responsible for the mobile internet revolution, represented by rising stars such as Tellabs, Skyworks and ON Semi. Banks are up, some as much as 50% and commodities like Alcoa are strong.

While investors equate being bearish with playing it safe, it may well mean missing a 45% gain since March.

Everyone Knows It's Wendy's (NASDAQ:WEN), Yum Brands! (NYSE:YUM)

Cramer says Wendy's is “the next big fast-food stock to make its move to higher territory," and the chain Zagat's rated as the best overall in the country is expanding its breakfast menu and growing overseas. While breakfast orders comprise an average of 22% for other chains, Wendy's morning orders are a mere 2%. Wendy's is rolling out new breakfast offerings in the next year and is expanding in Saudi Arabia and Singapore with its double-branded, Wendy's and Arby's, stores. Domestically, Wendy's has large real estate holdings which will increase in value as the economy recovers. Cramer says Wendy's is a buy.

The Right Healthcare Stock for the Right Time: Emdeon

Cramer says the market is at the beginning of an "IPO landslide" as private equity firms have been waiting for the right opportunity to take their offerings public. However, not all IPOs are created equal; Cramer likes Emdeon because it specializes in healthcare information technology and cutting medical costs, issues that are of special concern to President Obama.

Emdeon handles e-payments, records and e-prescriptions and is the "cost-control player" in the sector. Cramer prefers Emdeon even to Allscripts and Cerner. The company has room to grow; while 80% of bills from doctors are electronic, 80% of insurance companies still handle their paperwork the old-fashioned way. Emdeon has already made profitable acquisitions, and while many IPOs have significant debt, the company's balance sheet is clean. The IPO should be between $13.50 and $15.50; Cramer would buy at this level and cautioned against paying more than $17.50 for the stock.


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Source: Cramer's Mad Money - Paul Krugman Is Wrong (8/10/09)