Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program,Tuesday March 25. Click on a stock ticker for more analysis.
General Petraeus' request to President Bush to keep troop levels consistent though 2008 will be good news for Textron, because 30% of the company's business is military. Although Cramer wasn't wild about Textron's golf-cart business, and analysts on The Street were worried bout Textron's financial division, consisting of only 6.6.% of the company, Cramer is bullish on TXT because it provides a steady supply of helicopters, armored vehicles, security systems, aircraft and high-tech weapons to the armed forces. The stock has dropped 27% on The Street's preoccupation with the performance of its small financial division, and the company's guiding down of estimates is a conservative move, according to Cramer, who expects TXT to earn $4 a share. He likes its 13.6 multiple and 13% long-term growth rate.
CEO Interview: Jim Hackett, Andarko Petroleum (APC)
Cramer called Jim Hackett the "best visionary in the oil industry" and asked him about energy. First of all, he said APC is improving its balance sheet and increasing exploration, which could be expanded further if it weren't for environmental regulations. He called the government's zeal for ethanol a "disastrous policy direction to take" since there are "serious problems" with the corn-based fuel. Hackett added natural gas is still the cleanest of the hydrocarbon sources and is the best current alternative to oil. "We need to focus on the consumption side of the equation," he said. "To get prices down, we need to consume less."
On a Goldman Sach's analyst decision to put SIRI on the Sell List Cramer said "that guy doesn't have any horsesense." When another viewer accused him of pumping and dumping, Cramer said “Pumping and dumping? Illegal. Hate the charge. Never have done it. You know what my money is in? It’s in cash. So, Albert, that’s wrong” (Cramer owns stocks for a charitable trust). A viewer suspected an anti-Canadian bias in the fact that CNI is trading only at 11.5 price to earnings ratio and CSX is trading over 18. Cramer responded, "We should look at this situation because CSX has had such a move. We love [CEO] Michael Ward. Maybe we should think about rotating into CNI.”
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