Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday May 31. Click on a stock ticker for more analysis:
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Cramer suggested looking at the Russell 2000 index, a list of 2000 small-cap stocks which will be updated this year on June 22nd. Stocks will be added to or dropped from the list depending on their performance on Thursday. Half of the added stocks usually go up, and while this may seem like only a 50/50 chance of making money, Cramer says the rising stocks go much higher, while those that decline dip only slightly. The top 5 performers last year, Sigma Designs, Matrix Services, Bradley Pharma, Jones Soda and Advanced Magnetics, have all increased at least 100% since their addition to the index. Every listed company should have a market cap range between $233 million and $3 billion, should trade on a major exchange and have a stock price of at least $1. Cramer predicts CCIX, FCSX and GLDD will be added to the Russell 2000 index this year. CCIX is an electrical and cable wire company, a "market leader", and is up 37% since Cramer's March recommendation. FCSX is a commodities risk management company which is expanding into China and Brazil. Finally, GLDD is a demolition dredging services company which is protected from foreign competition from the Jones Act.
Related: Bill Simpson analyzes FC Stone Group's IPO.
"What the heck to you do with two 40% plus wins?" asked Cramer and advised viewers never to be afraid to sell a stock that is up 40%. Although he liked CHTR because of the "virtuous cycle" of its debt refinancing, Cramer would sell all or most of it now because it is too expensive. He admitted Apple is a bit trickier, but he would sell a good portion of it before the iPhone release because he feels expectations are too high and he noted the stock declined after the iPhone was introduced. Cramer did not recommend buying Delphi Corp. because it was on the pink sheets, and now that it has risen 34%, Cramer joked he "would not quite recommend selling some." After its great number, Cramer would hold on to Dell and believes Michael Dell will fix the company's problems. While Sears had a "horrible" quarter, Cramer still is a believer in the stock and noted Warren Buffett also had some down times with Berkshire Hathaway.
Related: Bear Stearns analysts predict Verizon may counter the iPhone with the LG Prada.
Mad Mail: Halliburton (NYSE:HAL)
When asked why Halliburton has not yet realized Cramer's expectations,he said it is levered to natural gas which has bottomed and domestic drilling which has decreased but should come back. Cramer reiterates his buy on HAL; "Sometimes they're hated, and then they explode."
Related: Halliburton is considering $80 billion in projects for the next 5 years.
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