Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday September 7.
Editor's Note: There will be no Cramer recaps for Wednesday and Thursday of this week
8 Ways to Create a Free Stimulus
How can we get the economy moving again? Cramer outlined 8 steps to make this happen.
1. Estate Tax Retroactively reinstated; "Not one thinking person in this country can understand why the President and Congress have not tackled this issue," Cramer said. "This is the most painless form of tax, goes right with the surety of the other constant, death, and allows for a huge pick-up in revenue, a reduction in the deficit, and no damage done to the economy."
2. Tax Hedge Fund Managers for the regular income rate on fees.
3. Freeze Bush tax cuts until after Jan 1, 2013.
4. Delay Card Check union reform until 2013.
5. Delay taxes on mutlnational corporations until 2013.
6. Shelve Cap and Trade.
7. Offer two trillion 30 year Treasurys.
8. Get troops out of Japan and Germany.
Chipotle Mexican Grill (CMG), Netflix (NFLX), Salesforce.com (CRM), Akamai (AKAM), F5 Networks (FFIV), VMware (VMW), Progress Energy (PGN), Exelon (EXC), SPDR GoldShares (GLD), Las Vegas Sands (LVS), Darden (DRI), Potash (POT), Archer Daniels Midland (ADM), Joy Global (JOYG), Caterpillar (CAT), Eaton (ETN), Boeing (BA), Goodrich (GR) JP Morgan (JPM), Wells Fargo (WFC), Bank of America (BAC)
While the bears and the bulls are still locked in a struggle, there was a turn in the markets last week, as demonstrated by the charts. Cramer described this change in four categories: blastoffs, breakouts, bases and bottoms.
First, blastoff stocks. Chipotle (CMG), Netflix (NFLX), Salesforce.com (CRM), Akamai (AKAM), F5 Networks (FFIV) and VMware (VMW) are unstoppable and not even the bad news bears can take them down. Utilities like Progress Energy (PGN) and Exelon (EXC) are good too, as well as gold: SPDR Gold Trust (GLD). Food, travel and agriculture are also blastoff sectors: Las Vegas Sands (LVS), Darden (DRI), Potash (POT) and Archer Daniels Midland (ADM).
Insurance and rails are seeing a breakout, and Cramer would play the trend with Berkshire Hathaway (BRK.A). Industrials such as Joy Global (JOYG), Caterpillar (CAT) and Eaton (ETN) are basing, or putting in a floor and turning around. This is also happening with Boeing (BA) and Goodrich (GR).
While Cramer thinks gold is an important part of every portfolio, and recommends Eldorado Gold (EGO) and SPDR Gold Trust (GLD) he's noticed that silver is up 17% year over year compared to the 13% increase in gold. Cramer looked at the chart of the iShares Silver Trust (SLV) which has been moving sideways but is breaking through resistance. However, Cramer would wait until September to swap into silver, and would play gold for this month, since it is historically a hot month for the yellow metal.
CEO Interview: Emanuel Chirico, Phillips-Van Heusen (PVH)
While talk of a double dip recession is increasing anxiety about retail, Cramer urged investors not to panic, particularly with great stories out there like Phillips-Van Heusen (PVH). The company recently made a $3 billion acquisition of Tommy Hilfiger brand. Even before the acquisition, the company had 45% market share in men's dress shirts. The stock has risen 22% since November 2009, and while it has been down 15% since April, the company "blew away its numbers" in the recent earnings call and beat estimates by 18 cents.
Chirico said the deal has helped the company pay off debts and make more money. PVC has cut costs and trimmed inventory. In spite of worries over the consumer, Chirico says customers who want to save money are also looking for value and quality, and thinks consumer loyalty will make PVC the winner regardless of the economy.
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