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 are the starting points for many investments made by these folks.
During the August 25th show, Cramer discussed the following stocks.
Bank of America (NYSE:BAC): This beleaguered financial surged 25% before losing most of those gains on news of Warren Buffett’s $5 billion dollar investment. Although the company repeatedly said it didn’t need new capital and that they had a large deposit base, Cramer feels Buffett’s investment may be enough to silence the noise surrounding Bank of America. This bank has a $77.5 billion dollar market cap. Jim Cramer also has BAC in his charitable trust’s portfolio. Bruce Berkowitz has the largest position in BAC after John Paulson sold half of his stake in the bank.
Apple (NASDAQ:AAPL): Despite news of Steve Jobs’ resignation, the tech giant’s stock didn’t get crushed the way many people thought it would. Analysts are betting on Apple reporting $7 for the coming quarter, but Cramer thinks it’s going to bring in $9. The product pipeline is set for the next couple of years and Tim Cook has been around and leading the company for a while. Cramer thinks people should stick with Apple. The stock currently trades at 14.9 times earnings. Apple is the most popular stock among hedge funds.
Sprint Nextel (NYSE:S): A viewer asked Cramer if Sprint getting the iPhone 5 would have an impact on the stock. Cramer said the communications company is suffering from a capital structure issue, so no one wants to own the stock. The momentum may help it, but the phone itself won’t be enough to save the stock. Despite its struggles, the stock has a $9.67 billion market cap. Jim Cramer’s charitable trust owns Sprint’s large competitor AT&T (NYSE:T).
Uranium Energy Corp (NYSEMKT:UEC): Cramer advised a viewer to sell shares of Uranium Energy because the whole nuclear structure worldwide is taking a step back. The stock is trading close to its 52-week low.
Goldman Sachs (NYSE:GS): This ailing financial received a hold recommendation from Cramer, who said that it was too late and the price was too low to bail out now. He advised giving it a chance to go up a bit before reducing a position. The stock is trading just $6 above its 52-week low of $103.16. Bruce Berkowitz’s Fairholme reduced its position in the financial by 10% (see more of Berkowitz’s holdings here).
SAP AG (NYSE:SAP): Cramer thinks this German software company’s stock is a buy, as it’s trading too cheap. Similar companies are trading at 30 and 40 times earnings, but SAP is only selling at 10 times earnings. The company is well positioned to take advantage of the tech industry‘s future, offering real-time computing, mobility and cloud innovation. The stock grew 35% year over year and the company increased guidance for the upcoming quarter. This software giant has a $62.85 billion market cap and yields 1.14%. Ken Fisher’s Fisher Asset Management owns over a million SAP shares (see billionaire Ken Fisher’s stock picks).
HAIN Celestial Group (NASDAQ:HAIN): The maker of natural and organic foods delivered a $0.02 cents earnings beat on a $0.33 cents basis. The company experienced 31% year-over-year growth, which is unheard of for a food stock. CEO Irwin Simon said 12%-13% of that growth is organic. Despite this positive news, the stock is about 6 points off its high thanks to broader market weakness. Cramer thinks this presents a buying opportunity for this long-term growth stock.
Conoco-Phillips (NYSE:COP): Cramer continued to recommend the oil company because of its 4% yield, a pullback to the mid-$60s and a potential split up in the near future. Cramer just bought Chevron (NYSE:CVX) for his charitable trust because it has greater production growth.
Youku.com (NYSE:YOKU): Cramer said Baidu (NASDAQ:BIDU), the only Chinese company he’ll recommend, is difficult enough to get his arms around and that he would not recommend any other Chinese stock now.
Travelers (NYSE:TRV): Cramer thinks this stock is the cheapest in the DJIA and CEO Jay Fishman is the best in insurance. He gave Travelers a buy recommendation. The company has a $20 billion market cap, only trades at 9 times earnings and yields 3.4%. George Soros reduced his position by 23% (see Soros’ top positions).
Enbridge Inc. (NYSE:ENB): Cramer likes Enbridge and thinks it is a great stock, but said it has gotten too high compared with the others. Cramer said he would rather own other pipeline operators like Kinder Morgan (NYSE:KMP), Energy Products Partners (NYSE:EPD) or MarkWest Energy (NYSE:MWE).
Micron Tech (NASDAQ:MU): A viewer wanted to know if he should hold on to this tech stock that has been crushed over the past few quarters. Cramer said to sell the stock because it is not the season to own tech and Micron is not a good company anyway.
US Steel (NYSE:X): Cramer does not want to own US Steel because it is too cyclical, there is not enough construction taking place and there are no plans in Washington to build. The stock is down 2.65%, trading a buck away from its 52-week low.
iShares Silver Trust ETF (NYSEARCA:SLV): Cramer still would rather be in gold because of the pullback in historic high prices and doesn’t want to go into silver yet.
Aqua America (NYSE:WTR): A viewer wanted to know about this water utility company, which Cramer could not recommend because it doesn’t have the growth he’d like to see. The viewer also asked about Oneok Partners (NYSE:OKS), a natural gas master limited partnership. Cramer thought the price had simply gone too high to buy right now.
Nordic American Tanker (NYSE:NAT): Although Cramer recommended NAT a week and a half ago after having CEO Herbjorn Hansson on the show, he said he simply couldn’t recommended it any longer. The tanking business is just too tough to navigate right now. The stock currently yields 7%.
Solar Capital (NASDAQ:SLRC): Despite concerns about individuals not being able to refinance their mortgages at 4%, Cramer thinks Solar Capital is one of the good ones and is a buy. The stock trades at just 6 times earnings and yields 11.16%. Bill Miller at Legg Mason Capital Management owns a bit over 750,000 shares (see more of Miller’s picks here).