Cramer's Lightning Round - Royal Dutch Shell: Trim the Fat (8/20/09)

Stocks discussed on the lightning round session of Jim Cramer's Mad Money TV Program, Thursday August 20.

Bullish Calls:

Vector Group (VGR): "This stock is a good stock… it yields 10%. I am dividend hungry."

Chevron (CVX): "There, you have yield...they are raising the dividend."

Nordic American Tanker (NAT): "I want you to go with only Nordic American Tanker. It has got the best yield and the whole industry is depressed right now. I think when it comes out of it, you will make the most money. NAT represents the best value in the group."

Royal Dutch Shell (RDS.A), BP (BP): "You know if you want dividend-rich, this is a difficult one… I would still send you to BP plc, the old British Petroleum. However, I am never going to give a fight to a person who buys Royal Dutch, because it has got great value, and if they trim the fat, there you would have a serious buy, buy, buy… and I congratulate you for going for yield."

Consolidated Edison (ED)

Bearish Calls:

Mariner Energy (ME): "That notion of hitting the ball out of the park for Mariner, I think is greatly misplaced. It actually falls under the category of hype."

Aqua America (WTR): "The stock has not been a good one… I am not going to bless Aqua America, because the record there is not of making money."

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Comments

[Michael Del...:]

"But how long can this rally last without a pullback?" This is pretty much the same question I heard last year when a lot of people were asking "But how long can the market keep going down?". The answer to both questions is "Probably longer than you think".

At this point in time, there are a lot of investors (with a small impact to the market), and a lot of mutual funds (with a much larger impact on the market), and a lot of hedge funds (with a huge impact on the market) who were all afraid or too cautious to participate in this summer's rally. And people are asking why they missed the opportunity. Everytime we get a 3% pullback, the cash on the sidelines pours in. Eventually, we will exhaust this supply of cash and we will get a 5% to 10% pullback before the value guys start jumping in. That is why I still want high dividend stocks which will weather the storm a little better. Because I am not a trader and I am not going to try to guess when to get out and when to get back in the market.

In my opinion. But I could be wrong. I have zigged when I should have zagged several times in the past two years.

Aug 21 02:03 PM