Recap of Jim Cramer's radio show on Friday November 10. Click on a stock ticker for more analysis:
Pharma vs. Oil - Cramer remarked on the beating drug stocks have been taking since the election, and comments that many were predicting a simliar fate for oil. However, Cramer thinks that the worst will be over for drug companies by Wednesday when oils will be the focus of Congress' wrath. He suggests selling oils and buying drug stocks.
Wal-Mart (NYSE:WMT), Best Buy (NYSE:BBY), Sears (NASDAQ:SHLD) and JC Penney (NYSE:JCP) - " Wal-Mart is really good at one thing -- issuing press releases," said Cramer, noting that WMT's widely publicized price cuts on generic drugs were only for a few medicines and were not that significant. The reduction on big-screen TVs were mainly for online purchases, and there was hardly any inventory in the stores to make a difference. The retail giant's reduction on appliances should not hurt BBY or Sears because people are realizing that WMT's promotions are full of hot air. On the other hand, J.C. Penney will have accelerated growth and earnings, predicts Cramer, since the stores have been benefitting from Sephora and "red box" initiatives and has goods available for every price range. He says that JCP is an undervalued stock which should keep going up to from $80 to $90.
Related: Carl Howe discusses Wal-Mart pre-holiday price cuts in electronics.
GlaxoSmithKline (NYSE:GSK), Contexant (NASDAQ:CNXT-RETIRED) and Motorola (MOT) - Cramer comments that the selloff in the drug sector following the Democratic victory will be seen as hasty and that pharma is not overinflated; GSK which has a 3.5% yield is down 10% from 2001. He doubts that price controls on drugs are going to happen. On another note, Cramer urges against a false sense of security when buying so-called "cheap" stocks, since a company like Contextant, at $2 may seem attractive because of its price and deal with Motorola, however CNXT has a "bad balance sheet" and cannot advance because of its debts. Cramer suggests picking up high-quality Cisco instead.
Disney (NYSE:DIS): Cramer likes the company's television and theme parks, but would wait to buy until it pulls back to $31.
Caterpillar (NYSE:CAT): This stock is bottoming, says Cramer, but it will take another six months before the company will make money for investors.
Vornado Realty Trust (NYSE:VNO): Cramer calls CEO Steve Roth "one of the greatest real estate investors of all time." He would pick up 25% of a position now and the rest when it comes in.
Garmin (NASDAQ:GRMN): Cramer is worried about this stock because management was "somewhat glib" on the conference call, given concerns people have about the company.
AT&T (NYSE:T) and BellSouth (BLS): Although the merger between these two companies will be a good thing, according to Cramer, it is being held up by regulations. "The upside is capped unless Congress sees the error of its ways and lets this deal go through," he said.
Las Vegas Sands (NYSE:LVS): Although this is a stock people will want because "the know that Macau is gigantic," Cramer says it is too expensive to pick up right now.
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