Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Friday February 15. Click on a stock ticker for more analysis:
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Cramer got together with his former Harvard classmate, New York Governor Eliot Spitzer, and the two agreed on one thing: the government's stimulus package will not work. Spitzer called the plan an "election year waste" which will mean extra spending money for the average American, but no solution for ailing bond insurers MBIA, Ambac, MGIC and PMI Group. Without capital infusion, these insurers could collapse and create a "tsunami" in the market. "Once again the Fed and Treasury haven’t been as quick off the dime as they should have been,” Spitzer said, adding the present administration is hanging on to the faulty concept that any government intervention is bad. "The market needs rules. Otherwise you have anarchy,” said Spitzer.
Although the flu season has gotten off to a rather slow start, Cramer says there is still time to benefit by picking up QDEL, which has 70% market share of flu tests, before it reports on February 21. QDEL develops tests not only for flu, but also owns 40%-50% of the market for pregnancy and strep tests. Cramer said, "Diagnostics is one of the best long-term stories out there," and QDEL is a twice-blessed speculative stock which has a clear balance sheet, a buyback program, trades at just 27 times earnings but has a 25% growth rate.
Stanley Associates (SXE)
While SXE was a stock that initially stumped Cramer, he managed to get revenge by putting SXE in the penalty box, since it committed the crime of missing its own estimates by $10 million and declining by 11%. In addition, SXE with an 18.6 multiple which is quite pricey for a company doing so poorly. While SXE might have a decent long-term story, Cramer would stay away from Stanley for now.
CEO Interview: T.J Rodgers: Cypress Semiconductor (CY)
On news Best Buy is cutting its profit forecast, Cramer wondered if CY, which produces chips for consumer electronics, is feeling the pain. Rodgers said the recent decline in CY's stock price wad caused by the performance its subsidiary Sunpower as the solar sector is slowing. For every $4 Sunpower moves, CY moves $1 in the same direction. Once the consumer is ready to spend again, things will look better for solar, consumer electronics and CY, Rodgers said.
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