Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday December 13. Click on a stock ticker for more analysis:
Cramer used four stocks as examples to illustrate the difference between value and growth stocks. First, Verizon and T are value stocks which "preserve capital" and pay generous dividends. Although these stocks are "not defined by their growth" they coud grow "decently." However, it is their dividend yields which prevent a downside and protects their share prices. Since Cramer suggests that investors stay diversified, he wouldn't buy both stocks, but prefers T because its market share will increase when its deal with Bell South goes through, and although its dividend is 3.8% compared to Verizon's 4.5%, T will be in a good position to raise its yield in the near future. When looking at a growth stock, Cramer tells investors "you have to see if it's accelerating." Cramer likes cable companies because they should have accelerated revenue growth, but notes that profits are also important. Although Comcast looks like a better option because it is a good company with solid management and is a pure play, Cramer says he would prefer to invest in TWX which is a "hated company," but he believes that CEO Dick Parsons should "turn it around." He adds that its AOL division should do well and that when it comes to capital appreciation "it's Time Warner's time to shine now."
Related: Fred Barnako discusses a major shake-up at Time's AOL division.
CEO Interview: David Lesar, Halliburton (NYSE:HAL)
When asked about his company's lackluster performance compared with that of the oil sector in general, David Lesar commented that there has been an overeaction to gas prices in North America, and that although currently declines exceed production, this problem will correct itself. He says that the company will continue to look for acquisitions and will buy back stock "to put a statement out there that we are long-term believers of where the market is." Cramer says that Halliburton is the cheapest stock in the sector and he's staying with it.
Related: A brief look at the IPO of KBR, Haliburton's engineering and construction unit
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Market Minute.
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