Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday February 5. Click on a stock ticker for more analysis:
Bank America (NYSE:BAC), VC Corp (NYSE:VFC), Washington Mutual (NYSE:WM), and Nordstrom (NYSE:JWN) Cramer told viewers not to ask him why there was a 370 point decline on Tuesday, "the why doesn't really matter." He sees a pattern of "short, sharp rallies - as the Federal Reserve cuts rates - followed by lots of selling, coming from people who, each day, are converted to the idea that we are in a recession." Which will last for many months until interest are further slashed and housing recovers. Cramer says leadership sectors are banks, retail and brokers and he isn't surprised bank stocks were hit hard given their recent gains. He recommends looking at BAC, VFC, WM and JWN.
Companhia Vale do Rio Doce (NYSE:RIO)
With the market so unpredictable in the U.S., Cramer is looking to Brazil for great opportunities and says the country is "making us look like a bunch of losers." Brazil is one of the most overlooked places to invest and has its own oil. Cramer likes RIO up 10% since his January recommendation, and he says the company expects the iron price to climb 62% in the coming year. He adds recession fears are already baked into the stock price.
CEO Interview, Duncan Niederauer, NYSE Euronext (NYSE:NYX)
While Cramer has been bullish on NYX for a while, he apologized that people have been hurt owning the stock after its lackluster quarter. Duncan Niederauer admitted that while revenue was up 21% and earnings increased 41%, the 7% reduction in expenses was just not sufficient. In addition to cost cutting strategies, Niederauer may consider more acquisitions in addition to the merger with American Stock Exchange, and may split the stock to increase liquidity, "I'm prepared to make the tough decisions," he said.
In spite of bullish comments in the press, Cramer does not think MSTR is going to rise any time soon. He told another mailer that HUM is his favorite play for health-care containment.
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