Cramer's Stop Trading! Kick Alcoa Out of the Dow (7/12/10)

Includes: AA, QCOM, SMG, YUM
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Monday July 12.

Alcoa (NYSE:AA), Yum! Brands (NYSE:YUM), Qualcomm (NASDAQ:QCOM), Scotts Miracle-Gro (NYSE:SMG)

Cramer says Alcoa (AA) is "awful," poorly run and has been overestimated by analysts for the past three years; “Alcoa’s not a good company,” Cramer said. “Why should I think that they’re going to have good numbers?” He said Alcoa has to be taken out of the Dow, and the company is dragging the bellwether index down.

Yum (YUM) should report good numbers, given its growth in China, regardless of its domestic performance. Cramer would consider buying Qualcomm (QCOM) going into its earnings report, especially since the stock has made Goldman Sachs' conviction buy list and the fact that it should benefit from the shortage in Sprint 4G smartphones.

Good weather has helped Scotts Miracle-Gro (SMG), and now the stock is just shy of its 52-week high.


Jim Cramer was up 31% in 2009. Click here now to sign up for Jim's Action Alerts PLUS and trade alongside him. Special discount for Seeking Alpha users.

Get Cramer's Picks by email - it's free and takes only a few seconds to sign up.