Cramer's Mad Money - The Mobile Internet Index (8/11/09)

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Includes: AAPL, ADCT, AVGO, BBRY, CIEN, CSCO, CTV, CY, GOOG, NETL, ON, PALM, QCOM, QRVO, STAR-OLD, SWKS, TKLC, TLAB, WDC, XLNX
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday August 11

The Mobile Internet Index: Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Research in Motion (RIMM), Palm (PALM), ADC Telecom (ADCT), Starent Networks (STAR-OLD), Cisco (NASDAQ:CSCO), Ciena (NASDAQ:CIEN), Tellabs (NASDAQ:TLAB), Tekelc (NASDAQ:TKLC), CommScope (CTV), Qualcomm (NASDAQ:QCOM), Broadcom (BRCM), RF MicroDevices (RFMD), Skyworks (NASDAQ:SWKS), ON Semiconductor (ONNN), Cypress Semiconductor (NASDAQ:CY), Sandisk (SNDK), Netlogic (NASDAQ:NETL), Xilinx (NASDAQ:XLNX)

The decline in the Dow and the Nasdaq on Tuesday provides investors with a buying opportunity, says Cramer, who reiterated his thesis that the mobile internet revolution will be as large a phenomenon as the Personal Computer obsession in the 90s. He created an index of 21 stocks to gauge this trend; the above stocks are included in the Mobile Internet Index.

Clean Energy Fuels (NASDAQ:CLNE) CEO Andrew Littlefair

Cramer thinks Congress might finally wake up and subsidize natural gas as a bridge fuel between dirty crude oil and cleaner energy alternatives. One strong stock in the sector is Clean Energy Fuels, which is up 171% since Cramer's November recommendation. Littlefair discussed proposed legislation that would require the 3 million 18 wheeler trucks in America to run on natural gas. This reform would save 2.7 million barrels of oil a day. Cramer likes Clean Energy Fuels, which is likely to benefit if the proposal is passed, but notes it is a speculative stock.

Family Dollar (NYSE:FDO)

Cramer almost recommended Family Dollar on the company's new system that will accept food stamps. However, two technicians said Family Dollar is a "sell" and Cramer says he understands why. First, Family Dollar is reaching lower highs, which means excess supply or decreased demand. Second, the stock is moving away from its major uptrend line at $25.50 and is at $31.32. This is an indication that there is no more upside for Family Dollar.

The fundamentals also support a bearish view of the stock. Last year's tax refunds under President Bush created an surge that can't be replicated this year. Investors are expecting a recovery and are fleeing from recession-style stocks like Family Dollar, and competition from Dollar General's IPO will hurt the company.

“I think I could have made a fool of myself,” Cramer said, “recommending Family Dollar off of increased food stamps. Thankfully the reservations of the chartists got me to probe deeper on this one and change my tune.”

Citigroup (NYSE:C), Huntington BancShares (NASDAQ:HBAN), SLM Corp (NYSE:SLM)

Cramer thinks sellers of Citigroup are making a mistake, and the major bank is in the process of fixing its image problem. Of course it still has issues with mortgages and bad loans, but the monkey on Citigroup's back is the government, which owns a 34% stake. Cramer thinks the government will sell this stake on Sept 10, and when it does, Citigroup will have a chance to thrive solo. He would buy the stock now and thinks it has a similar story to Huntington BancShares and SLM Corp which are all "successful financial specs."

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