Cramer's Mad Money - Jobs, Who Needs Them? (1/11/10)

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Includes: CAT, CLD, EMR, F, FLR, JCI, MDRX, PPL, UPS
by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday, January 11.

Jobs? Who Needs Them: Caterpillar (NYSE:CAT), UPS (NYSE:UPS)

While most people need to work to earn a living, full employment is not necessarily good for business. In fact, the high jobless rate might have some advantages for Wall Street; "It's been a positive thing for countless companies that have laid off workers and are profiting as a result." Cramer noted positive action in UPS's (UPS) stock after the company announced it was cutting 1,800 jobs, and Cramer is bullish on Caterpillar (CAT) because of its exposure overseas as construction projects in the U.S. are stalled. He suggested looking for other companies with mainly overseas exposure.

"This isn't profitless prosperity," added Cramer, "it's profits without prosperity." He added, "I’m not asking you to love the situation, but if you care at all about your portfolio, then you have to at least acknowledge that this is the way things are.”

CEO Interview: Glen Tullman, Allscripts-Misys (NASDAQ:MDRX)

Allscripts-Misys (MDRX) CEO Glen Tullman declared 2010 as the "year of the electronic health record." The reason MDRX will perform well in spite of proposed healthcare reforms is the government is also behind technology that will make medical records easier to access and more efficient to use. Tullman says his company's sales are up 30% year over year, and this is before the stimulus has really kicked in.

Allscripts' program costs physicians an average of $44,000, but the doctors will be eager to implement the technology, according to Tullman, since the software is user friendly and meets government guidelines. The amount of time saved will be immeasurable, since the technology allows for the collection of disparate data and eliminates the monotonous filling out of duplicate forms. Cramer thinks Allscripts has a great story and would take advantage of the recent decline in the stock price to go ahead and buy.

Ford (NYSE:F), Johnson Controls (NYSE:JCI)

Ford's fantastic comeback story is well-known, and now it is time to find other auto plays that will benefit from the return of automarkers. Cramer discussed "best of breed" Johnson Controls (JCI), which produces seating and interiors of autos, batteries and HVACs. Apart from benefiting from increased car sales, Johnson Controls (JCI) may be sought after by fund managers who now will be desperate to beef up their holdings in autos, which are fast becoming the new "hot" sector. While the stock has only 42% exposure to autos, it is relatively inexpensive at 14 times earnings compared to a 14% growth rate and has a clean balance sheet. Cramer thinks Johnson Controls is the "cheapest and most consistent" earner in its sector, and has more room to run, even a point below its 52-week high.

Mad Mail: Cloud Peak Energy (NYSE:CLD), Fluor (NYSE:FLR), Starbucks (NASDAQ:SBUX), Emerson Electric (NYSE:EMR), PPL (NYSE:PPL)

Cramer thinks Cloud Peak Energy (CLD) is the perfect example of how homework pays off. He recommended the IPO only to see it drop off. However, others have discovered the stock, which has recently received an upgrade. Cramer would use any weakness in the stock as a buying opportunity. While Fluor (FLR) has gone higher, Cramer thinks there is still time to buy. However, Starbucks (SBUX) has seen better days, and Cramer would take profits. Finally, Cramer says he prefers the growth potential of Emerson Electric (EMR) to the safety of PPL (PPL).

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