Cramer's Lightning Round - Lululemon's Powerful Downgrade (5/26/11)

by: Miriam Metzinger

Stocks discussed on the Lightning Round session of Jim Cramer's Mad Money TV Program, Thursday May 26.

Bullish Calls:

Siemens (SI): "This has always been one of my favorites. Germany is on fire. This is my favorite over there...we should take an agreeable position on Germany."

Baidu (NASDAQ:BIDU), Sina (NASDAQ:SINA): "I like Baidu as an investment, and I like Sina as a trade."

Cummins (NYSE:CMI): "These (tornadoes) are terrible tragedies...we don't want these things...Cummins will not profit off of this tragedy, but they will profit from a major cycle in new trucks that is still going on, including China...if China is done tightening, this stock tacks on 15 straight points. China is not done, so the stock is in a holding pattern."

Acme Packet (NASDAQ:APKT), NetApp (NASDAQ:NTAP): "This (Acme Packet) is one of the last of the major internet protocol stocks. It is holding in there. I am going to embrace it...even as people tell me that business is no longer any good. I like that and I like Netapp.

KKR Financial (KFN): "We have been behind this. We have had a very big gain. We continue to be behind is a very inexpensive's got a good yield."

Phillips Van Heusen (NYSE:PVH): "I think PVH is in better shape than Ralph I less worried about PVH? Yes, absolutely, because I think [CEO] Mandy Chirico can pull it off...he can source it better, he can get the cotton cheaper, he knows what he is doing. Not that the other guys don't, but I don't think he is going to get caught like the others guys, which is why I am sticking with PVH."

Bearish Calls:

Lululemon (NASDAQ:LULU), Ralph Lauren (NYSE:RL): "That downgrade (of Lululemon) was very powerful and potent. When I read it, I thought I might be a little greedy here. Do I agree with downgrade to sell? No, but it did raise questions about conceivable problems in cost, and after my screw up in Ralph Lauren, I think we should take some LULU off the table. I was too bullsh on Ralph Lauren...I thought the research piece was cogent...I suggest profit taking."

PetroChina (NYSE:PTR): "I'm not recommending Chinese stocks.You are not going to get me to do that. I like Baidu as an investment, and I like Sina as a trade, and the more I go down the food chain, the more I get nervous, and I'm not going to do that to you."

MaxLinear (NYSE:MXL): "That is in one tough component. This is radio frequency...don't buy is just too hard...a lot of these tech companies are not doing well right careful."


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