Deutsche Treat - Cramer's Lightning Round (5/6/08)

Stocks discussed in the lightning round session of Jim Cramer’s Mad Money TV program, Tuesday May 6. Click on a stock ticker for more analysis:

Bullish calls:

Hewlett-Packard (HPQ): “Very well run …it’s in a competitive market against Dell… CEO Mark Hurd is a certified genius… it used to be a great company…it’s still a great company.”
Natus Medical (BABY): “It’s an excellent baby care disease management play.”
Marathon Oil (MRO): “If you want to be in a refiner, be in MRO…”
Diana Shipping (DSX): “Not bad, but I’m going to be honest …You know FRO has been my name.”
Frontline (FRO): “52-week high…FRO rocks…that’s my play.”
Deutsche Telekom (DT): “I like DT. I have no problems with DT.”
Verizon (VZ): “I am a Verizon, AT&T man from way back.”
AT&T (T)
Manulife Financial (MFC): “ …very reliable very consistent… it is boring, but sometimes boring can rock too…”
Agnico-Eagle Mines (AEM): “The stock has started to come back. Do we pull the trigger? No, because we believe in gold.”

Bearish calls:

Western Refining (WNR): “I don’t like the refiners here.”
Valero Energy (VLO)
Sprint Nextel (S): “I’ve hated that since Sprint and Nextel merged…it is a trainwreck.”
China Digital TV (STV): “Risky Chinese telco company … don’t buy don’t buy…”
Vulcan Materials (VMC): “Holy cow, is that a bad quarter. I keep saying this stock is going to bottom somewhere … the aggregate business has been crushed, but I don’t see any bottom yet in VMC.”
MGM Mirage (MGM): “…that was a dead cat bounce, I do believe that MGM is part of a cohort of stocks I want nothing to do with, and that includes casino stocks.”
Wynn Resorts (WYNN)

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Comments

[MGen:]

Cramer;
While your show is amusing much like other comedy shows, you should really consider doing just a little research into companies before you scream "Buy!" or "Sell!". First I would recommend that you research the definition of what a "telco" company is (it's a telephone company):
education.yahoo.com/re...
2nd, before you recommend any stock, you should do just a tiny bit of research so that you know even the basic fact of what sector or industry a company is in. China Digital (STV) is not a telephone company. Before you say it was a typo, and that you really meant to say "telecom", China Digital (STV) is not a telecom either. (Btw, you recommended AT&T, Verizon, and Deutsche Telekom above, which are actual "telco" and "telecom" companies, although you say "telco" companies are risky). China Digital is in the tech product/software sector: their primary product market is developing and selling conditional-access smartcards and associated set-top boxes, in which market they currently control 52% market share in China. The 2nd market they recently expanded into is development and sales of PC cards which allow PC's to receive, decode, and play HDTV subscription TV channels. They have several other market products in R&D that they will be expanding their business with in the near future. China Digital has consistently exceeding earnings estimates and issued positive forward outlook guidance on every earnings report since the STV IPO, with very high revenue and net income growth year over year and quarter over quarter. Not to mention the strategic partnerships China Digital has formed with Intel, Microsoft, Panasonic, and other leading USA companies. Hardly a company that any investor doing just a little research would call "risky". While your show is entertaining, for serious and successful stock-investing I rely on indepth research into companies, investment planning, confidence, and patience.

2008 May 07 04:27 PM

[raceluver:]

I agree this guy cramer is wild and he just throws out stuff without convincing or compelling reasons. I mean how sensible is it to just say"buy" or "sell"??

2008 May 08 02:53 AM

[AJ30:]

You are both right, but remember Mr. Cramer (a very smart guy in his own right) is now in "Show Biz", and thus must pander to the dimwits of the modern American masses. Its a very profitable formula, I wish he would "go public".

2008 May 09 02:26 PM

[FourBrane:]

Asking Cramer to consider all the facts about a company or sector is like explaining the facts of gravity to Wily Coyote or asking him to stop buying stuff from Acme. If you were successful, the show would be no fun. And, remember, it's called "Lightning Round," not "Thoughtful Opinion."
The only reason to pay any attention to Cramer is because he can occasionally move small stocks, creating buying or shorting opportunities to sheer some fleece off the sheep.

2008 May 09 04:50 PM

[golds:]

Crammer caught onto NAT 3 days after earnings. Here is some real information 2 days before earnings.

NAT is a great company but here is one with better earnings and better upside (its parent company is TK which is the largest spot market vessel management company in the world)


TNK presentation

Q1 EPS = $0.76
YRLY EPS = $3.04

The company just bought two new Suezmax tankers on credit and you can see that the profits will go up based upon this purchase and the currently highly spot rates. Download the guidance chart from TNK directly.

link to divided payout schedule (guidance chart) based upon spot rates
www.teekaytankers.com/...
download 48kb 3 page file and look at dividend spreadsheet.

Here is the data you need to do the calculations - this data was acquired from a professional source confirmed to be accurate with TNK.

04/04/08
VLCC $95,263
SUEZMAX $60,471
AfraMAX $41,447

I watch and record the weekly spot averages for all tanker types.
The above list is the Average tanker daily spot rate as of the end of Q1. Q2 is higher already.


Here is the latest average including every week from Jan 1 to today.
05/02/08
VLCC $96,718
SUEZMAN $72,152
AFRAMAX $46,545

For those of you too lazy to download this critical guidance here is the brief summary.

Current Q1 spot rates

20,000 = dividend $1.64
25,000 = dividend $1.99
30,000 = dividend $2.34
35,000 = dividend $2.69
40,000 = dividend $3.04 ***** here we are

Download the full chart to see how the two new suezmax tankers effect income (its dramatic).

2008 May 12 01:11 PM