Cramer's Stop Trading! The Biggest Product Apple Has Ever Had (3/5/10)

 |  Includes: AAPL, ADP, AXP, BHI, IP, PAYX, TIN, WFT
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Friday February 5.

Apple (NASDAQ:AAPL), Baker Hughes (NYSE:BHI) Weatherford International (NYSE:WFT), Paychex (NASDAQ:PAYX), Automatic Data Processing (NASDAQ:ADP), Temple-Inland (NYSE:TIN), International Paper (NYSE:IP), American Express (NYSE:AXP)

With Friday's news of Baker Hughes' (BHI) impressive rig count, drilling is revving up, with U.S. rig count increasing 6.5% and Canada's by 23%. Baker Hughes and Weatherford International (WFT) will be able to increase their rates and can look forward to earnings beats. “I think people need to focus on the drillers,” Cramer said. Particularly relevant to Weatherford are Iraq's upcoming election, since Iraq is Weatherford's "breadbasket" and stability in the region will be good for WFT.

Now that Apple (AAPL) has announced its iPad will be released on April 3, Cramer says the time to buy the stock is now, leading up to the release. He would sell during the release itself and buy back the stock following the expected selloff a few days later. "This will be the biggest product that Apple has ever had,” Cramer said.

Cramer would buy Paychex (PAYX) on Friday's jobs report. He likes the stock better than Automatic Data Process (ADP) and it offers a 4% yield.

Containerboard sales are actually a sign of economic recovery, and higher demand for the material is a sign that consumers are ordering more goods. Cramer would buy International Paper (IP) and Temple Inland (TIN) on this trend. On the increasing number of transactions, Cramer would buy American Express (AXP) which reported a "great" quarter.


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