Recap of Jim Cramer's radio show on Thursday October 5. Click on a stock ticker for more analysis:
Procter & Gamble (NYSE:PG), Kellogg (NYSE:K) and Kimberly Clark (NYSE:KMB) - In spite of the infrastructure, coal and steel rally Cramer recommends sticking with staples such as PG, K and KMB. The cause of the upswing is the decline in oil prices, the Fed relaxing its grip and the temporary hiatus in selling; "people try to keep selling them over and over again, they hear the steps of valuation behind them," Cramer said. The rally should not last more than a couple days and Cramer urged investors to use the opportunity to take some of these stocks off the table before the sellers come back.
Wal-Mart (NYSE:WMT), Macy's (FD),Target (NYSE:TGT), J.C. Penney (NYSE:JCP) and Kohl's (NYSE:KSS) - Strength in the retail sector is good for the market, although Cramer notes that Wal-Mart is losing rather than winning by trying to create a "cooler" image while other retailers such as FD, TGT and KSS and JCP are slashing their prices and luring customers away from WMT.
Hewlett-Packard (NYSE:HPQ) and Amaranth - Cramer says he's tired of hearing about the HPQ scandal and wishes people would start asking questions about Amaranth's possible role in the natural gas spike last winter. He believes that this defunct hedge fund kept natural gas high by greedily buying futures; "Given the abundance, I have to wonder if Amaranth and a bunch of other hedge funds were in concert" and were manipulating prices, Cramer remarks.
Cramer on Demand: Walgreen (WAG) - TheStreet.com readers picked WAG as the stock they most wanted to discuss, and Cramer commented that the WAG is a "high quality franchise" and is the perfect stock for the current economic climate. Since WAG sells diverse products, he doesn't think that the store will be hurt by Wal-Mart's price slash on generic drugs and says that it would be ridiculous if it went to its low of $39.
Related: Marc Gerstein believes that Wal-Mart's price cut in generic drugs will not affect competitors such as Walgreen.
Lockheed Martin (NYSE:LMT): Cramer comments that this stock is "pretty cheap" since its growth is at 12% and it sells at 16 times earnings.
General Dynamics (NYSE:GD): This is the best-of-breed defense stock according to Cramer.
ABB (NYSE:ABB): Cramer is bullish on this stock because it is in a "really good situation."
Mattel (NASDAQ:MAT): Although he once called this stock "trash" Cramer now says that MAT has solid management and investors will see a profit.
Washington Mutual (NYSE:WM): Cramer prefers this company over Mellon Financial (MEL).
Brocade Communications (NASDAQ:BRCD) and Hewlett-Packard (HPQ): Cramer prefers both of these companies to Sun Microsystems (NASDAQ:SUNW)
Sun Microsystems (SUNW): Cramer says that this company has "lost its way."
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
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