Jim Cramer is one of the top personalities on CNBC. He is the host of Mad Money and also the co-founder and chairman of TheStreet.com. Nearly 250,000 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 are the starting point for many investments made by these folks.
During the August 22 show, Cramer discussed the following stocks.
Salesforce.com (CRM): Cramer compared Hewlett Packard’s (NYSE:HPQ) earnings call with CRM’s earnings call and said “forget Hewlett-Packard, take a look at Salesforce.com." Cramer is really bullish about CRM because he thinks CRM represents what is working in the tech space, specifically the move to cloud computing, yet the stock is priced like the stocks that are failing. Cramer said HPQ is doing everything in its power to become like CRM. Louis Navellier had a large position in CRM at the end of June (see Navellier’s top stock picks).
Travelzoo (NASDAQ:TZOO): Travelzoo lost more than half of its value after disappointing results on July 21. Cramer took a fresh look at TZOO and he had the company’s CEO as a guest on his show. Cramer didn’t seem too enthusiastic about the stock but he said it is the cheapest stock in its universe based on the PEG ratio.
Caterpillar (NYSE:CAT): A viewer asked about CAT during the lightning round. Cramer said he should have taken some of the profits when the stock was trading near its peak but he isn’t going to cut and run now. He is bullish about CAT. Ken Fisher had the largest position in CAT at the end of June with a $480 million position (check out billionaire Fisher’s top stock picks).
Peabody Energy (BTU): Peabody was trading above $60 just a month ago but closed below $42 yesterday. A viewer asked about BTU during the lightning round. Cramer said the stock is declining along with oil companies but he likes the company. He thinks at these levels it is a buy. Jeffrey Vinik’s Vinik Asset Management has the largest stake in BTU among the 300-plus hedge funds we are tracking.
Enterprise Product Partners (NYSE:EPD): Cramer likes EPD and thinks it is dirt cheap at its current levels. However he warned viewers that there is negative chatter about MLPs losing their tax breaks.
Philip Morris Intl (NYSE:PM): A viewer inquired whether PM is the best tobacco stock with both growth and high dividend yield. Cramer agreed and pointed to the fact that the stock didn’t really go down despite the huge decline in the market. He said this is one of his tobacco companies even though he doesn’t like tobacco. Billionaire hedge fund manager Jim Simons had more than $240 million in PM at the end of June (see Simons’ top stock picks).
USG Corp (NYSE:USG): Cramer doesn’t like USG and thinks the stock could go below $5. Currently the stock trades at $7.20.
Ford Motor (NYSE:F): “The first stock people sell when going into a recession is car companies, no matter how well they are doing” Cramer said. He also pointed out that most fund managers now think that a recession is coming and they won’t be buying Ford. Ford is one of legendary short-seller Jim Chanos’ short positions.
Freeport McMoran (NYSE:FCX): A viewer asked about Encore Wire (NASDAQ:WIRE). Cramer said he would wait for a pullback before speculating about this small company. Instead he thinks investors would be better off by going for a copper producer like Freeport McMoran (FCX). His charitable trusts’ portfolio has a position in FCX as well.
ConEd (NYSE:ED), Verizon (NYSE:VZ), Dominion Resources (NYSE:D): A viewer asked Cramer about Prospect Capital (NASDAQ:PSEC) which yields 15%. Cramer doesn’t like PSEC and instead recommended ED, VZ and D. Cramer has been recommending these defensive, high yielding stocks during the past couple of weeks.
Disclosure: I am long PM.