Jim Cramer's Real Money Radio Recap, Aug.29

Recap of Jim Cramer's radio show on Tuesday August 29. Click on a stock ticker for more analysis:

Tuesday's show was a re-broadcast of a Real Money Radio program which first aired on August 11.

Conference Call Analysis: Sprint Nextel (S), Energizer (ENR) - Cramer answered a caller's question concerning what to watch out for in a conference call, and gave the example of the Sprint Nextel call during with the executives intially painted a rosy picture only to have the image shattered during the Q&A session. Cramer also looks for guidance, and says that more is usually better. Concerning buybacks, Cramer says that these usually is a sign of confidence, but says that companies like ENR use buybacks to raise the bar; "That shows false growth, so be careful," he warned. "I also like to hear about what pace of acceleration or deceleration the revenues are at," he said, "Accelerated growth is fantastic."

Matchmaking Banks: Procter & Gamble (PG) and Gillette - Cramer says that "A company wants to grow when it feels its current growth is tapped," and goes to investment banks to make the match. For example, PG does not reach out to Gillette, but there is a middleman involved in the acquisition.

IPO Guide: MasterCard (MC), iRobot (IRBT) - Cramer says that IPOs are good when they come from companies early in the business cycle, and notes the success of MC, a company few people had confidence in, but which has won big. "I look for out-of-the-way stuff that could work," Cramer says, and gives the example of IRBT, an IPO he saw grow gradually when he was hedge fund manager. He also likes companies, such as banks, that "gingerly" go public. Cramer suggests looking for IPOs in aerospace, but to avoid biotech or tech.

Foreign Exchange: Tata Motors (TTM), Wipro (WIT), America Movil (AMX), Bancolombia (CIB), Homex Development (HXM), Colgate (CL) - Concerning foreign IPOs, Cramer stays away from China, because they do not have a Securities and Exchange Commission, and only insiders succeed. He prefers the Indian market, and would pick up any consulting company there, Tata Motors, India's largest car company, or Wipro as a speculative play. Latin American plays Cramer likes include: AMX, CIB and HXM. He also mentions that Colgate has significant exposure in Latin America.

More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.

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Comments

[Stephen Oakes:]

Cramer is no stock play genius. I think he has access to a lot of information and knows how to get the crowd motivated to increase the share price of a few stocks in the short-term, but that's about it. Rule #1 never listen to anything on the news or television about stocks because it will likely be wrong and already absorbed into the stock price.

I read about someone who tracked 10 of his recommendations for a year. Only one pick posted a gain. Many of the others had losses in excess of 30%.

I am open to opinions otherwise ;)


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Scooter
jutiagroup.com
"your information stop"

2006 Aug 30 04:19 PM

[SA Editor M...:]

We published an article a few months ago concerning this issue.

seekingalpha.com/artic...

2006 Aug 31 05:14 AM

[Hari Vepadh...:]

The actual Jim Cramer article that Miriam is referring to is "Can You Make Money From Jim Cramer's Picks?", posted on Jun 4th, 2006 and is present at

seekingalpha.com/artic...

2006 Sep 06 04:26 AM

[Stephen Oakes:]

Thanks. Just read the article and found it to be very informative. Nice "DD" ;)


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Scooter
jutiagroup.com
"your information stop"

2006 Sep 06 07:48 PM