Too Cheap - Cramer's Stop Trading! (7/30/08)

 |  Includes: CHK, CMCSA, COG, JNY, OC, RIG, T, VZ
by: Joan Wickham

Recap of Jim Cramer's comments on Stop Trading! Wednesday July 30.

Oil and Gas Calls: Chesapeake Energy (NYSE:CHK), Transocean (NYSE:RIG), Cabot Oil & Gas (NYSE:COG)

Cramer said Donald Hodges, chairman of Hodges Capital Management, actually had a lot of good things to say about Chesapeake Energy earlier during “Street Signs.” Cramer said the money manager was “spot on” for his calls on Chesapeake Energy and Transocean. Speaking on natural gas stocks, Cramer said that “natural gas fell far more than oil” and that “if oil fell that far it would be at $100” “Natural gas has actual demand at the $8 dollar level by the chemical companies.” He said that he bought some Cabot Oil & Gas which is down 50%.

Too Cheap: Owens Corning (NYSE:OC)

Cramer said that Owens Corning had a stellar quarter. “I love these guys!” he said. “I like the kind of story they are telling.” He said Owens Corning “really blew it away.” Thanks to strong management, this diversified company, which works in insulation but also in wind power, blew away the numbers by cleaning up its balance sheet. “I don't know how this company can stay independent if they keep paying down debt,” Cramer said. “It's too cheap.”

Jones Apparel (NYSE:JNY)

Cramer said that Jones Apparel was “the only retail apparel company to blow the numbers away.” Cramer commented its CFO, John McClain, has done a “remarkable job of cash management and building a great balance sheet.” He wrapped up by saying, “I continue to believe Jones is too cheap.”

Communications Comments: AT&T (NYSE:T), Verizon (NYSE:VZ) Comcast (NASDAQ:CMCSA)

AT&T and Verizon Communications may be down, Cramer said but it’s only because of fickle analysts. Comcast has become the content distribution industry’s darling. In the end, “They're all good companies,” he said. But Cramer prefers the 5% yield offered by AT&T and Verizon. “These analysts shift,” Cramer pointed out. Almost any new data point could put AT&T and Verizon back in favor. 

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