Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday June 9.
While many bemoan skyrocketing oil prices, Cramer would find a way to profit. Contrary to popular belief, the price of oil is not being driven up by speculation, according to Cramer, but is subject to good old-fashioned supply and demand as it is becoming more difficult to get oil out of the ground and demand is rising in emerging markets. Cramer would take a look at wildcat drillers such as Petrohawk, one of the cheapest in the group with 1.1. trillion cubic feet of natural gas reserves. HK is benefiting from new finds in Arizona. Cramer expects Petrohawk to climb from $35 to $48.
CEO Interview: Michael Thaman, Owens Corning (NYSE:OC)
Michael Thaman takes his company’s insulation business seriously; so seriously in fact that he says not having proper insulation may affect the resale value of homes in the near future. Not only is insulation big business, but Owens Corning makes fiberglass reinforcements that go into plastics and materials used in wind towers. Cramer is bullish on wind power, which is expected to grow by 10-15%. Although OC’s roofing business is lagging, Thaman expects to see profits from roofing in the second quarter. Cramer notes after a rise to $28, the stock is back down to $24 and is a buy.
Icahn’s Magic: Motorola (MOT), Yahoo (NASDAQ:YHOO)
Cramer hasn’t had many nice things to say about Motorola or Yahoo, so why is he recommending the companies now? While the CEOs of both companies are displayed on his Wall of Shame, billionaire activist investor Carl Icahn may have a big impact on the stocks, and Cramer thinks Icahn could turn Motorola around by breaking it up He may also make a deal between Microsoft and Yahoo, if not an acquisition, possible so together they can compete against internet giant Google. Icahn can easily use his pull to replace members of the board of both companies, and Cramer thinks Yahoo and Motorola are both cheap. However, he would buy the stocks as Icahn trades, not based on the companies’ fundamentals.
Cramer’s one-time favorite solar play, First Solar, has fallen from grace due to insider selling; “No company with such aggressive insider selling will ever get my stamp of approval.” When asked about a motor-scooter play, Cramer said he would not buy Harley-Davidson yet, but he would keep an eye on it.
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