Cramer's Lightning Round - Don't Penalize UPS for Being Conservative (8/13/09)

Stocks discussed on the lightning round session of Jim Cramer's Mad Money TV Program, Thursday August 13.

Bullish Calls:

Atmos Energy (ATO), Dominion Resources (D): "That's a sign of strength (at a 52-week high), but since I buy utilities based on yield, I prefer Dominion right here."

Hasbro (HAS): "I prefer Hasbro to Mattel. It is better-run."

STEC (STEC), Micron (MU), Taiwan Semiconductor (TSM): "STEC and Micron are part of what makes a phone smart...their chips are in everything...people don't understand the tremendous bull market in semiconductors...and Taiwan Semi, too...these are all on fire"

Potash (POT)

United Parcel Service (UPS): "Is a fabulous company. It is very non-promotional. They are unwilling to declare a bottom. UPS should not be penalized because they are conservative...I would buy right here"

Alcoa (AA), Dow (DOW) and International Paper (IP): "I was doing work on Dow, Alcoa and International Paper; all three are fabulous recovery plays. They are on the rampage....AA is going higher because there is a lot of aluminum in cars...on the release of that darned Dreamliner we are going to catch an 8 point move"

Bearish Calls:

Mattel (MAT)

China Green Agriculture (CGA): "Oh man, I gotta go to China for an agriculture company? This China thing is up huge. Let's not speculate on that when we can buy Potash"

AIG (AIG): "There is a big short squeeze...I think the government is going to exact a lot of money. I don't think there will be a lot of money left for shareholders."

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Comments

[Trader BOB:]

I like that call on DOW and the bull. When DOW exceeds ATT on the NYSE, it will be time to consider selling your DOW and buying ATT.
ATT pays 4 times the dividend/share that DOW does.

Any comments on that trade?

Aug 14 08:22 AM

[anopenmind:]

Cramer began trashing POT early May 2008 and only 15 months later, bam, he's going bonkers over it, being a few months late in supporting such. Do wonder if his staff has even studied CGA and advised the man CGA's "organic" products are not the same as POT's stuff. I'm intrigued with CGA's R&D in their greenhouses and their distribution network into small villages (= small farmers and home gardeners who may have higher degree of desire to use organic fertilizers vs larger farms)

I own both POT and CGA, even MOS and YGII. YGII makes nutrients that are added to stuff like potash to enhance yields. Another + for YGII is their distribution, which increased from 3,500 independently-owned retail stores earlier this year to 5,000.

China has 20% of world's population within relatively farmable area too small for such; thus, they produce 33% of world's fertilizer and consume 35% of world's stuff (bit out-of-date 2005 #'s; likely higher today). China's use of organic fertilizer is about half of other advanced world nations (50/50 vs chemical fertilizers). Push is on to greatly increase ratio of organic stuff.

No, Jim. You don't have to go to China to buy an Ag, but might be advisable.

Aug 14 09:30 AM