Cramer's Stop Trading! Ford Is Not a Momentum Stock (4/28/10)

Includes: CMCSA, F, JNPR, S, TLAB
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday April 28.

Ford (NYSE:F), Sprint-Nextel (NYSE:S), Comcast (NASDAQ:CMCSA), Juniper (NYSE:JNPR), Tellabs (NASDAQ:TLAB)

Cramer applauded the Federal reserve for keeping interest rates at nearly zero, and says this policy is mainly responsible for the rise in stocks. It would be a "mistake," according to Cramer, to raise rates, especially with unemployment still high.

In spite of its strong quarter, an analyst downgraded Ford (F) because of a doubt whether the automaker could repeat its excellent performance. Cramer says this is a "short-term situation," Ford will clean up its balance sheet, will take market share and will see an upgrade; “I bet you one day we will return to the days when Ford has a bountiful dividend." Ford is not a momentum stock, he added, but a "multi-year name."

Sprint Nextel (S) is losing fewer subscribers, which is good news; “If they can stop the hemorrhaging,” Cramer said, “there’s no reason why this stock should stay at $4.” Sprint doesn't need to be taken over, but can go it alone.

Comcast (CMCSA) reported a strong quarter, and Cramer was surprised the stock wasn't higher. The rising subscriptions for its triple play - phone, cable and internet - show the market is not yet saturated.

The "huge turn" in capital spending by telecom companies "is not being talked about" and Cramer urged viewers to look at Juniper's (JNPR) conference call for themselves. He also likes Tellabs (TLAB).


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