Cramer's Mad Money - Robert Toll's in the House (4/22/09)

by: Miriam Metzinger

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday April 22.

Robert Toll in the House: Toll Brothers (NYSE:TOL)

The last time Toll Brother's CEO Robert Toll appeared on Mad Money, he warned Cramer that the light at the end of the tunnel might just be from "the train coming toward you." The CEO was happy to tell Cramer that he sees things differently from last May; “I don’t want to overstate it,” Toll said, “but I told you I’d give you a call when I saw things differently. And I definitely see them as different now.” He has seen dramatic increases over the last six weeks of "expressions of interest" deposits which often become the first step in home buying, and notes that about 80% of the housing market is recovering. The remaining 20% which is as "dead as a doornail" may be back in another year or so. Cramer sees Tolls' statements as more support for his prediction of a housing bottom by June 30.

The Real Green Stock: Owens Corning (NYSE:OC), Owens Illinois (NYSE:OI), First Merit (NASDAQ:FMER)

In honor of Green Day, Cramer discussed Owens Corning, which makes composite materials for windmills and insulation and Owens Illinois, a producer of recyclable glass. However, with gas and oil so cheap and with Obama's cap and trade emissions legislation on hold, a better green stock is First Merit, which represents green dollars. First Merit is doing well enough to return $125 million in TARP, its debt rating was upgraded, and its dividend is a solid 6.1%. First Merit is in a good position to buy up assets of failing banks and should continue to grow.

Think Breadth: AT&T (NYSE:T), Ford (NYSE:F), Caterpillar (NYSE:CAT), Gilead Sciences (NASDAQ:GILD), General Electric (NYSE:GE), Wells Fargo (NYSE:WFC), Google (NASDAQ:GOOG), Intel (NASDAQ:INTC), Broadcom (BRCM), Lowes (NYSE:LOW), UPS (NYSE:UPS), Schlumberger (NYSE:SLB), Norfolk Southern (NYSE:NSC)

Cramer told investors it is a mistake to look just at where the Dow or any other index finishes, but it is also important to pay attention to breadth, or how many stocks were up as opposed to how many were down. For example, on Wednesday, the Dow finished 82 points lower, but at the same time, more stocks were up than down in the S&P 500 and twice as many gained as lost in the Nasdaq. While Cramer has been hailing oil, tech and banks as winning sectors, telcos, biotech, industrials, and even an automaker joined the ranks, with Ford gaining 13% on a Goldman Sachs, upgrade, AT&T's strong earnings report and good performances from Caterpillar, Gilead Sciences and General Electric. Other leaders of the day included Wells Fargo, Google, Intel, Broadcom, Lowes, UPS, Schlumberger and Norfolk Southern.


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