Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday September 18. Click on a stock ticker for more analysis:
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Concerning the Fed cut, Cramer said, “I believe the crisis will soon be over” now that the Fed has ceased with its inflation obsession. He urged skepticism in the face of bears who claim the rate cut will not help the economy; “They are totally wrong.” Cramer predicts three more rate cuts and says “the shorts will be squeezed.” In this environment, “Almost everything works,” including WB, GOOG, FWLT, DE and XOM.
Follow that Icahn: BEA Systems(BEAS)
Following Carl Icahn’s lead can be an “incredibly lucrative” game. The activist investor has a big stake in BEAS, which he thinks should sell itself, and Cramer believes such a move would mean a substantial premium for investors, that shareholders agree with the potential sale, and that BEAS is an attractive takeover target.
CEO Interview, John McMahon, Genesis Lease (GLS)
Cramer asked McMahon about GLS’ lackluster performance and he replied the stock is mispriced. Concerning the advantage of leasing, he remarked, “Why own when you can lease? Why tie up capital?” Currently, a third of aircraft companies lease, and McMahon expects the number to increase. He added that 80% of GLS’ business is international and it has a superb yield of 8.2%. Cramer said companies with such yields are going to be harder to find and he recommended buying GLS.
There was a recent mandate to make nonelectronic prescriptions on tamper resistant paper mandatory while Congress is would like to see a greater use of electronics in the medical industry to cut costs and prevent overbilling. Two stocks that would benefit are MDRX and QSII. He prefers MDRX because it has good growth, better communication with shareholders and won a contract with Columbia University Medical Center.
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