Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of Mad Money and also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV and most of these are ordinary investors trying to understand what’s going on in the market. Jim Cramer’s bullish and bearish stock picks on his show is a starting point for many investments made by these folks.
During the August 9, show Cramer discussed the following stocks.
Apple (NASDAQ:AAPL): While Cramer has been avoiding technology and bank stocks like the Plague, he used Apple as an example of how Fed Chairman Bernanke‘s decision to keep interest rates exceptionally low “at least through mid-2013“ made stocks the most attractive paper available. This company will generate a huge earnings stream in the future for a relatively cheap price now, which can provide greater returns than the 30-year treasuries.
MFA Mortgage (NYSE:MFA): Cramer challenged a viewer to see this real estate trust company for what it is: a financial stock. Cramer said, this is what got us into trouble and advised selling into the temporary strength of this market. Brian Jackelow of Sab Capital Management feels differently and has recently increased his firm’s position in the stock. (See more of Brian Bares’ picks here).
Con Ed (NYSE:ED): This New York-based utility company operates in one of the few areas of the country with a stable housing market. The stock is yielding more than 4.5% and the company has paid out dividends for 37 consecutive years.
Enterprise Products Partners (NYSE:EPD): This pipeline operator is a favorite of Cramer’s because of Its high, safe yield of 6%. The demand for this pipeline has remained steady since 2008. John Osterweis of Osterweis Capital Management has a large position in EPD shares.
Verizon (NYSE:VZ): This communications stock received a buy recommendation from Cramer because of its 5.8% yield as well as his belief that Verizon will come out on top with their recent labor issues.
Bristol-Myers (NYSE:BMY): Cramer recommended buying Bristol-Myers because it is a takeover target whose fundamentals are solid. The pharmaceutical company also has some new drug discoveries and the skin cancer medicine is selling well. Jim Simons Renaissance and Steve Cohen’s SAC Capital are among the hedge funds with large BMY positions. These two hedge fund managers are also among the most successful hedge fund managers this year (check out Jim Simons’ top stock picks).
Darden Restaurants (NYSE:DRI): Featuring a 3% yield, Darden’s CEO, Clarence Otis, Jr., said earnings are set to go higher because high gas prices (which he states acts like a tax on the consumer) are coming down.
Kimberly-Clark (NYSE:KMB): A consumer staples company that is benefiting from the decline in oil prices. The majority of its products require significant amounts of energy to produce. Kimberly-Clark is yielding close to 4.5%. Ron Gutfleish of Elm Ridge Capital drastically reduced his position in the stock. (See more of Ron Gutfleish’s holdings here).
International Paper (NYSE:IP): This accidental high-yielder (currently yielding 4.2%), is levered to fast-growing emerging markets. Cramer see’s IP stock as a buy.
Netflix (NASDAQ:NFLX): With the recent ups and downs Netflix has experienced on and off the charts, a viewer called in to see if he should sell his shares and take the profits. Cramer advised against selling the stock. He sees Netflix as a high-growth company that should be played with deep-in-the-money calls.
Solar Capital (NASDAQ:SLRC): This company is a merchant of finance, according to Cramer, and it does it better than any other. Charles Clough of Clough Capital Partners increased the firm’s position in Solar Capital.
Wynn Resorts (NASDAQ:WYNN): “In Steve Wynn I trust,” exclaimed Cramer, who thinks Wynn Resorts is poised to go higher. Cramer said casinos are similar to restaurants in that when the price of gas goes down, the more discretionary income a consumer has to spend elsewhere.
CARBO Ceramics (NYSE:CRR): Cramer prefers Core Labs (NYSE:CLB) because it is more consistent. He also said Clean Harbor (NYSE:CLH) is a good alternative. Carbo Ceramics is a fracking company that is down 30% from the 52-week high, despite all of the recent oil shale discoveries.
Hecla Mining (NYSE:HL): Cramer took the opportunity to say, “To heck with Hecla Mining”. He restated his position of buying the ETFs if you want exposure to precious metals.
Mercer International (NASDAQ:MERC): This pulp company received a buy recommendation from Cramer. “I like Kraft. I like International Paper. How could I not like Mercer?” said Cramer. “This isn‘t the kind of company you throw away in this market.”
Cliffs Natural (NYSE:CLF): This international mining and national resources company received a buy recommendation from Cramer. The stock closed up 8.3%. John Burbank, Phil Falcone, and Ken Fisher are among CLF investors.
Alaska Communication (NASDAQ:ALSK): Cramer said Alaska Communication is better than Frontier Communications (NYSE:FTR) and Century Link (NYSE:CTL). With double digit yields (over 12%), Cramer thinks this stock is being given away.
Clean Energy Fuels (NASDAQ:CLNE): Cramer had Clean Energy Fuels’ CEO, Andrew Littlefair, on the show to discuss natural gas’ future as an alternative fuel source and the company missing earnings estimates. Littlefair said that while the Natural Gas Act is stuck in Washington, D.C., the private sector is moving forward.
The company has plans to roll out 150 new stations over the next couple of years. If you feel natural gas is the future, Cramer feels this is the stock to own. Steve Cohen of SAC Capital Advisors picked up a large number of CLNE shares.
Union Pacific (NYSE:UNP): Transportation stocks are an accurate gauge on the rate of the economy and Cramer recommends owning transport stocks that maintain pricing power. Union Pacific is a company that fits the bill, but Cramer reiterated that a stock should never be bought when it’s up more than 4 points.
UPS (NYSE:UPS): Cramer’s charitable trust owns UPS stock. It’s also a transportation stock that has pricing power (the ability to successfully change or raise prices when necessary) and subsequently offers a 3.3% yield.