Cramer's Stop Trading! iPhone Recall? Give Me a Break! (7/13/10)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV segment, Tuesday July 13

JP Morgan (NYSE:JPM), BP (NYSE:BP), CSX (NASDAQ:CSX), Apple (NASDAQ:AAPL), Chevron (NYSE:CVX), Marathon Oil (NYSE:MRO), Valero (NYSE:VLO), SanDisk (SNDK), Banco Santander (STD), Alcoa (NYSE:AA), Novellus (NASDAQ:NVLS-OLD)

Cramer discussed bullish signs in the economy at large. With the clarity on financial regulation, Cramer thinks JP Morgan (JPM) will go to $45. The BP (BP), "clowns" seem finally to be solving the oil spill, the euro is stable and Banco Santander (STD) is in a stronger position than anyone could have predicted a few weeks ago. Concerning unemployment, Cramer thinks earnings reports from CSX (CSX), Alcoa (AA) and Novellus (NVLS-OLD) indicate there is a willingness by companies to put more people to work. On a side note, Cramer doesn't understand all the obsession with China when there is amazing growth in Latin America. "Open up these borders," said Cramer, adding, "Free trade has been good for America."

Apple (AAPL) declined 1.73% on a negative review from Consumer Reports that criticized reception of the 4G iPhones when held a certain way. There have even been rumors of recalls. "Give me a break!" exclaimed Cramer. He thinks the worst case scenario is Apple will have to issue free bumpers, or fitted guards for the phone. Since sales were strong before the article, Cramer is still bullish on the stock.

The government should go ahead and unload the rest of its position in Citigroup (NYSE:C), since there is significant demand for the stock. Cramer called Citigroup "everyone's de facto call on a worldwide recovery."

Chevron (CVX) is finally saying good things about refining after the industry has been "terrible" for so long. Cramer would look at picking up cheap refining plays, Valero (VLO) and Marathon (MRO).

Cramer thinks analysts negative on SanDisk (SNDK) should "go do their homework...I think flash is going to come down in price." He predicted SanDisk will become a $50 stock in the next 10 days.


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.