Jim Cramer's Real Money Radio Recap, Nov. 14
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Wal-Mart (WMT), Sears (SHLD) and Target (TGT) - Cramer calls retail a "multilayered animal" and suggests caution when approaching this sector, since good numbers do not necessarily predict strong performance. Wal-Mart had a better-than-expected quarter because it has decided to stop slashing prices, and other retailers are expected to go up on the news. However, Cramer would avoid picking up Wal-Mart since he doesn't see much upside in the stock. On a side note, Cramer says that drug stocks should reach bottom soon, and investors will know this when the stocks "will open up and stay up." However, as long as there is an up-and-down pattern, Cramer suggests staying away.
Related: Ted Allrich discusses Target's impressive quarter.
Wynn Resorts (WYNN) - Cramer took issue with a New York Times article that emphasized that Wynn Resorts CEO Steve Wynn was taking a $147 million portion of a special dividend, and he said that "The media makes a judgment every time an executive gets paid well." Such judgments are "nonsense" as long as the CEO is doing a good job, said Cramer.
Related: Miriam Metzinger relates Steve Wynn's response to questions about his portion of the WYNN's special dividend.
Nice Systems (NICE) - This Israeli security company just landed a contract with the MTA to set up a central control rail center to prevent terrorism on New York City subways. Cramer says that its not too late to buy Nice.
Two Duels: Microsoft (MSFT), Apple (AAPL), Allergan (AGN) and Medicis (MRX) - Microsoft is trying to compete against the insuperable iPOd with a product called Zune. However, Microsoft does not seem to understand that that the iPod franchise is not going anywhere soon, and in any case, The Zune is not as compact as the iPod, comments Cramer. He discussed another "duel" between Allergan and Medicis for dominance in the anti-wrinkle treatment industry. However, this duel will be a draw, predicts Cramer; "Both companies' products are fantastic," he said. "I would own either stock."
Bullish calls:
Motorola (MOT): This company is dealing with its inventory issue and Cramer would pick up the stock at its current price, $21.
McDonald's (MCD): Cramer comments that although this stock will probably dip down from $41 to $40 because of options backdating week, Cramer says that it is a good stock and will avoid some of the wrath of the trans-fat obsession that is plaguing stocks like Pepsico (PEP).
Panera Bread (PNRA): Although PNRA went to $68 and fell back to $60, Cramer would buy the stock as a long-term play and predicts that it is ready to ramp.
Krispy Kreme (KKD): Following the advice of Prudential's Howard Penney that KKD should be viewed as a new company, Cramer now likes the company and suggests reading the report.
Best Buy (BBY): Cramer predicts that this stock is not going to decline further and adds "Best Buy is the best hard-good retailer in the country."
Neutral/Bearish calls:
Yahoo! (YHOO): Cramer bought this stock at $32, and after he "trimmed" it at $40, it went down. He is convinced that there is "something wrong at Yahoo" but hopes the situation improves when its search engine comes out. However, if it goes to $29 or $30, he would sell it.
General Mills (GIS): Cramer would trade this stock for Krispy Kreme.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
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