Cramer's Mad Money - Monsanto's Menacing Monopoly (8/13/09)

 |  Includes: CAT, F, FSYS, M, MON, OREX, URBN, WMT
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday August 13

Monsanto's (NYSE:MON) Monopoly

Cramer would sell Monsanto, not because it has been performing poorly - the company is at the forefront of developing genetically altered seeds - but because it is in hot water with the government. Monsanto's practice of telling farmers to destroy unused seed and raising seed prices a startling 42% is getting the attention of anti-trust watchdogs who are investigating the company. The fact that nothing was said about this on Monsanto's earnings report is worrying, and Cramer thinks this news may flatten the stock. He would sell Monsanto.

Ford (NYSE:F), Urban Outfitters (NASDAQ:URBN), Wal-Mart (NYSE:WMT), Caterpillar (NYSE:CAT), Macy's (NYSE:M)

Cramer once again vented about the media's doom and gloom view of the markets versus bullish performance he sees in stocks. He noted the better-than-expected quarters from Macy's and Urban Outfitters, retailers about which the media still expressed concern. He pointed out Wal-Mart's increased sales thanks to its back-to-school campaign, but the media's main focus was on the giant retailer's sluggish same-store sales. Caterpillar has been making money at the precise time it was expected to lose, thanks to cost-cutting measures, but The Street is taking the glass half empty view. He also thinks Ford was starting to perform even before the "Cash for Clunkers" program; "It is amazing that people are buying cars at all."

Fuel Systems Solutions (NASDAQ:FSYS)

Cramer admitted he jumped the gun on recommending Fuel Systems Solutions in August of 2008 when he thought Obama would get behind natural gas as a bridge fuel. The stock was punished and dropped from the $30s to $10 and has rebounded. Cramer would buy Fuel Systems this time because of proposed legislation that will provide tax benefits for natural gas and will require 50% of all vehicles to run on the fuel. Cramer predicts similar legislation will be adopted in Europe and would buy Fuel Systems at the current level.

Orexigen Therapeutics (NASDAQ:OREX)

This stock stumped Cramer during a recent lightning round, and looking at the stock, he has decided it is a good play on Obama's healthcare reforms which stress dealing with treatable problems before they become major diseases. Orexigen has developed successful treatments for obesity and diabetes and has risen 42%; Cramer would wait for a pullback before buying and warned viewers not to chase the stock.


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