Prefer a Yield - Cramer's Lightning Round (10/10/08)

Stocks discussed in the lightning round session of Jim Cramer’s Mad Money TV program, Friday, October 10.

Bullish Calls:

Johnson & Johnson (JNJ) -- “Johnson & Johnson is a buy. This stock bounced back early after the crash of ’87 and Johnson & Johnson could do it again.”

Bearish Calls:

Corning (GLW) -- “Wait until this $12 stock drops below $10 before you consider buying. I have doubts about the company because of the weak market for big screen TVs.”
AK Steel Holding (AKS) -- “This company has been through one of the biggest sell-offs I’ve seen. I recommend buying Nucor (NUE) because of its dividend. The steel stocks still have lower to go."
Chesapeake Energy (CHK) -- “A Wall Street Journal story reported that Chesapeake is out of cash so this stock is a don’t buy for now. You would be better off with a company in the oil patch with a yield."

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Comments

[Yiani:]

Aubrey K. McClendon, the billionaire chief executive of Chesapeake Energy Corp., has sold "substantially all" of his stock in the company over the past three days in order to meet margin loan calls, the company said Friday. Media reports have placed the number of shares at more than 33 million. But is the company out of cash?

2008 Oct 10 11:42 PM

[ZZ:]

This is similar to what is reported at LIFETIME FITNESS where the CEO put up a lot of his own common shares to get money to run the company. That doesn't sound like something one would do unless they had a huge stake in the company and the company was in financial trouble.

In Lifetime's case, they had also announced a sale and leaseback of 2 of their properties, raising 50 million. Unfortunately, the stock has tanked daily for 2 weeks, and whomever was holding the shares did a margin call and yesterday sold half a million of the shares, thus driving down the share price even more.

These 2 isolated incidences don't seek typical of corporate management. When the Feds 'inject liquidity' into a bank, what do you picture? A square building with money now in all the desk drawers? OK now what? Lend it to anybody? That's what got us in trouble. Lend it to Lifetime Fitness because they have a money making company and are still expanding?

So what's to make that bank lend out their new money? Chances are, the employees don't decide on their whims whether to lend or not. If they don't lend it's because they are restrained by the head honcho, who has just seen other CEO's get canned by the Feds when they were closed that bank. These bosses are simply preserving their own 'jobs' and ridiculous pay bonuses by holding on to all ther cash they can

2008 Oct 11 12:16 AM

[34CD77:]

Cramer is a bag of hotair. About a week ago, on a national business program he told investors to "sell everything. Then here he is recommending purchases. I can remember not to long ago that he recommended Merrill Lynch and Corning.

2008 Oct 11 10:12 AM

[Norman Lepo...:]

I thought CNBC finally took Cramer off the air when his show was not on TV Thursday. Naturally, I turn the channel as soon as he comes on anyway. I do not understand how anyone can pay any attention to him, nor how CNBC can keep him on TV with all of the horrible advice he has given over the years.

2008 Oct 11 10:43 AM

[texasgolfer:]

I recall he put Wachovia on the buy list when he declared financials had bottomed and the housing recovery is less than one year away.

2008 Oct 11 11:34 AM

[whidbey:]

Cramer is a "personality". CNBC would put Lenin's body on TV if they could get their hands on it, and Sue would interview him too.

As for CHK we must expect problems, Audrey while a builder has used cards instead of bricks. It is still a good gas company.

2008 Oct 11 11:40 AM

[mepo:]

I'd like to know if anyone has opinions on GMS? Its difficult to find any real information about how risky investing in GM senior notes is. As for Cramer, I take him with a grain of salt. Its a fun show to watch.

2008 Oct 11 12:18 PM

[Robert Sare...:]

Cramer is still worth is weight in gold. He always has good directions.
He had nothing to do with the savings and loan troubles nor did he
contribute to the recent investment bank failures. He is trying to make
you money not sort out the lies of Wall St.
I got out of the market in February. I couldn't have predicted the
market would crash. It shows things in New York are linked very
closely with the international scene. A little corruption goes a long
ways. Keep going Cramer! We're with you!

2008 Oct 11 02:51 PM

[Pessimistic...:]

Decker 2..
ditto your sentiment..

2008 Oct 11 11:14 PM

[mepo:]

modern day serfs

2008 Oct 12 12:00 AM

[buyforeclos...:]

Hmmmmmmmm. Buy Nucor because it has what a 4-5% dividend? Although they are diversified and has segments that do very well with lower scrap pricing, it seems to me it is headed to around $20 minimum so buyng at $31 for a 5% divy don't make a lot of sense!

2008 Oct 12 11:33 AM

[blisterchicken:]

Lenin's Body on TV...Thats a good one!

2008 Oct 13 10:43 AM

[longandshort:]

Digital TV transition coming in 3 months. Although free converter boxes are out there, most people would go for a new LCD/Plasma TV...probably the new stimulus cheque will come through.....look for Corning to rise....lets not forget, Corning still makes those Pyrex jars, a staple of every home!

2008 Oct 21 12:47 PM