Cramer's Mad Money - From Candies to Fads Can (11/2/10)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday November 2.

From C.A.N.D.I.E.S. to F.A.D.S C.A.N. Chipotle (NYSE:CMG), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), Deckers (NASDAQ:DECK), Intuitive (NASDAQ:ISRG), Express Scripts (NASDAQ:ESRX) (NYSE:CRM), F5 (NASDAQ:FFIV), Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT)

Cramer is pleased with the performance of his C.A.N.D.I.E.S. stocks: Chipotle (CMG), Apple (AAPL), Netflix (NFLX), Deckers (DECK), Intuitive Surgical (ISRG), Express Scripts (ESRX) and (CRM); the group is up 18% since June 3rd while the S&P 500 saw an 8% gain. Not all of the stocks were good performers, though. Cramer replaced Intuitive Surgical and Express Scripts, down 21% and 1% respectively with F5 (FFIV) and Amazon (AMZN). The new acronym is "Fads Can," representing the idea that trends are powering growth. F5 is a great play on faster internet, and Amazon is fast becoming a Wal-Mart (WMT) of the web and is "changing the way we shop."

The Ben Bernanke Bull Market

On election day the Dow jumped 64 points higher. Cramer credited not the election results but one man; Fed Chairman Ben Bernanke, who was responsible for the "Ben Bernanke bull market" and rescuing the U.S. from a long deflationary phase similar to Japan's "Lost Decade." Two keys to keep the economy going is to get the money off the sidelines and into stocks and to improve consumer confidence, which is bolstered by low interest rates.

CEO Interview: David Cote, Honeywell International (NYSE:HON)

Honeywell is the "quintessential manufacturing" name with diverse businesses in aerospace, automation and climate control. The company beat earnings by 2 cents a share. "Honeywell is a great proxy for industrial America because it has its hands in so many different cookie jars," said Cramer. As a member of the President's deficit commission, Cote is also working on solutions to the country's problems.

Dave Cote said there is a multi-year cycle that is just beginning in aerospace, specialty materials and transportation, and the company has gone from laying off people to hiring more workers. Cote admits that defense is likely to be a laggard. Honeywell is growing internationally; the overseas business has grown from 40% to 50%, and Cote says he is on the lookout for valuable acquisitions. Cramer thinks Honeywell is going higher.


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