Cramer's Lightning Round - The Stock Hedgies Love to Hate (8/19/09)

Stocks discussed on the lightning round session of Jim Cramer's Mad Money TV Program, Wednesday August 19.

Bullish Calls:

Wells Fargo (WFC): "Wells Fargo is a despised stock by many hedge fund managers. I sit there and I think, the lies... the lies... the horror, the horror... and here's what I say... I think that the management at Wells obviously, obviously blew it when they bought Golden West... Would you guys please come on the show. I like Wells Fargo."

Walt Disney (DIS): "I have been mystified why this company does not have more adherence...When advertising comes back... and it is a cyclical business... Disney will be a leader. ESPN is terrific. Bob Iger is doing a great job...I'm a buyer of Disney, even at $25, and if that consumer gets red-hot, you've got a $30 stock on your hands... and more power to Bob Iger."

Union Pacific (UNP): "I prefer Union Pacific Corp. which I've been hoping would come down so I could buy it for where I play with an open hand. That's been my target, on my list, since it got to $50... But, if it can come down... I like it."

Vale (VALE): "I think VALE represents a higher-quality player... That's the Brazilian one... It's at $19.85. I like that one better than Teck Cominco."

Bearish Calls:

Burlington Northern Santa Fe (BNI): "I'm a big backer of the rails, but you know it's going to be part of the China problem, because what's happened is... the rails trade with China. Here's my advice to you... BNI may be Warren Buffett's favorite... He's got the biggest stake there... I prefer Union Pacific Corp."

Teck Cominco (TCK)

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Comments

[opine:]

re WFC..WB acquired GDW not WFC and it was a major
blunder even without benefit of hindsight..the Sandler's
rarely made market mistakes...hedge funds can criticize
WFC for acquiring WB (even on the cheap), but only with the
aid of hindsight... would be interested in the reasons
for Dick Kovasovitch's resignation, the handing of the
ceo job to Lewis, and to know if the disciplined culture
started by Carl Reichardt is really gone.

Aug 20 09:22 AM

[DonFurio:]

Wachovia bought Golden West. Yea, it was a bad aqcuisition, but Wells Fargo got the Golden West loans when they bought out Wachovia. The hedge funds love it hate it because they probably got short busted. The bottem line is that WFC will have some loan losses, but once you get through they they basically doubled in size by buying Wachovia and paid next to nothing to do it.

Aug 20 09:52 AM

[Dr. Roberts:]

Lighten up Skidaddy! Jim has bemoaned the WFC takeover of Wachovia before on his show, prior to earnings announcements showing synergies between the two firms already paying dividends. Dick Kovacevich is a visionary banker who bought Wachovia on the cheap and received a favorable tax ruling from the Treasury probably so that the FDIC would not be on the hook. WFC, one of the best iconic brands in America, now has a national footprint. Wells Fargo will emerge from this recession perfectly positioned to become even more profitable. While Mr. Kovacevich did turn the reins over to John Stumpf(CEO), he remains the Chairman of the Board and is overseeing the integration of the two banks.

Aug 20 01:03 PM

[Laughing:]

Cramer never said anything bearish about TCK, did you even watch the show??? A caller asked what do you think about Teck Cominco and Cramer responded, "Ya know I thought about buying TCK, but my action owners plus members know what I did, I bought VALE instead today, you got my email today. V A I L - uhhh, the resouce giant, I bought that one! ....<ect.> "

Yes he spelled VALE wrong, and nothing bearing about TCK.

Aug 21 09:51 AM