Schering Now - Cramer's Lightning Round (4/29/08)

Stocks discussed in the lightning round session of Jim Cramer’s Mad Money TV program, Tuesday April 29. Click on a stock ticker for more analysis:

Bullish calls:

Diageo (DEO): “I do like Diageo (DEO) more [than Brown-Forman Corporation], and DEO has pulled back to under $80.
Schering-Plough (SGP): “It isn't done! Fred Hassen's turned it around. The Vytorin numbers will be fine. The acquisition of Organon is starting to pay off already… I’m feeling darn good about SGP.”
Ford Preferred (F-PA): “We're believers that the FORD Preferred - which has given us a phenomenal return - is still the better way to play it than the Ford common.”
AT&T (T), Verizon (VZ)
Atlas Energy Resources (ATN): “We nailed this ATN nine ways to Sunday... You're talking about the Marcellus Shale... there's oil, there's gas in them there hills. You hold onto that one. It's going higher.”
Yamana Gold (AUY): “I saw that stock at $12 today... I'm sticking with a gold stock. I'm sticking with AUY.”

Bearish calls:

LSI Logic (LSI): “I'm saying buy great American companies. LSI is not one of those companies. Sell, sell, sell, sell, sell, sell, sell! Am I making myself clear?”
Lifecell (LIFC), Citizens Communications (CZN)

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Comments

[Norman Lepoff, M.D.]

Didn't this flake say to buy SGP at it's 52 week high. Look at it now. Reminds me of when he called himself Dr. UNH and said buy, buy, buy and even back up the truck when UNH was at 52. Look at it now. Cramer conveniently forgot all about this just like he always does. Cramer, his show and his sponsors should be boycotted until he is taken off the air.

[TechnicalTraderMike]

I agree w/ the comments about Cramer below. As for LSI I think it is a great buy now @ $6.25. Most the analysts have increased their 2008 earnings forecast over the last few day (since LSI announced their earnings on 4/23) but it is still at a relatively low P/E.

For Q4'07 they reported $ 0.13 beating the analysts' consensus of .07 by .06. For Q1'08 they reported $0.10 beating the consensus of .07 by .03. LSI also raised their guidance for Q2'08 to a range of .08 to .12. All the above numbers are non-GAAP.

The analysts' consensus for 2008 non-GAAP is now at $.42 giving it a P/E of 14.89. Normally it should trade in the 18 to 22 range which means it should really be in the $7.60 to $9.20. I think they will deliver $0.50 for 2008 as they have a history of beating the analysts consensus. That should place them at a solid $9 given a reasonable P/E multiple.

Fundamentally they appear to have made the right choices in focusing their product lines on storage & networking and the acquisitions have been smart ones.

[TNUTT]

He also just recommended Merck a week or 2 ago before it started dropping.

[ace22]

How is he supose to forsee that sgp vytorin doesnt work you jerkoff. If you dont like him dont listen everyone makes bad calls

[SB-tiger]

Cramer is a bubble maker. His MO is talk up the stocks - he has a big pulpit and great following to make it work. He is so often so wrong, he gets away by conveniently ignoring bad calls. How much he pumped the likes of CROX, LULU etc. Albeit he has made great calls on Ag and infrastructure, but once again pumping the stocks to extremes.
At the end of the day all of us have the choice to ignore him.

[ermski2k]

I tend to agree Cramer likes to talk stocks up and down, not a day goes by on CNBC when he manages to slip Apple into the conversation and the producers promptly cut him off because they know what he is doing, hence being the only guy on CNBC they feel the need to add a disclaimer distancing the network from his activities, which really the SEC should look at.