Recap of Jim Cramer's radio show on Tuesday September 26. Click on a stock ticker for more analysis:
Down on Housing - Cramer believes that there must be a vested interest in watching homebuilders go down because last month the few bulls that remained surrendered and started downgrading stocks. "That's how all bottoms I have followed are formed," Cramer said, "you get everyone hating a stock at the bottom, and all the sellers are out." Although Cramer admits that for the sake of consistency it would have been better for his image if he had "stayed negative" he sees hope in housing especially since the stocks are not falling with the bad news which is what happens to resilient companies such as Ford (NYSE:F) and Masco (NYSE:MAS). However, he points out that there are short-sellers and analysts who can benefit from housing's decline.
A Little Pruning: Procter & Gamble (NYSE:PG) - When asked why he likes PG so much, Cramer points out a Wall Street Journal article reporting that the company is selling its Sure deodorant which was "not cooking ... A great company prunes so the rest of its brands can grow stronger -- that's the Procter & Gamble way." When cyclicals were up, PG was down even though the company was solid and PG suffered from baseless rumors that Gillette was not doing well. Cramer says that the stock will deserve a "premium multiple" when the next rotation comes.
Oil Prospects: Occidental Petroleum (NYSE:OXY), BP (NYSE:BP) and Chevron (NYSE:CVX) - Although there are some who believe that the "exquisite moment" to pick up oil again is near Cramer insists that the bottom will not occur in oil until it reaches $56 a barrel. Cramer said that OXY was a '"proxy" and that it "should be somewhere between $35 and here ($46.21). He doesn't recommend the sector but for those who cannot stay away he suggests BP or CVX which have yield support.
Related: Kurt Wulff of McDep Associates discusses Chevron as a buy recommendation.
Hedge Funds and Cyclicals - Cramer warns investors not to get hurt by trying to "piggyback" hedge funds since they switch their positions faster than individual investors and do not publicize all of their moves. On another note, Cramer discussed the rally in cyclicals on Tuesday which was caused by the fact that the stocks are so low and that the economy isn't "falling off a cliff." However, he doesn't expect the upsurge to last more than 48 hours and says that it may be a good time for a trade in cyclicals.
Electronic Arts (ERTS): Cramer sees a "very bright future" for ERTS which has strong earnings and may be taken over.
Wendy's (NYSE:WEN): A caller who was up 90% off of Wendy's asked Cramer asked what the next move should be since WEN is spinning off Tim Hortons. Cramer says that WEN will go up further and suggested taking a quarter off the table.
Sears (NASDAQ:SHLD): This is an "undervalued stock" according to Cramer who likes CEO Eddie Lampert and thinks that its major restucturing plans.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
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