Recap of Jim Cramer's radio show on Wednesday July 19. Click on a stock ticker for more analysis:
Selling Frenzy - Cramer says that the cause of Wednesday's rally was not due to Fed Chairman, Ben Bernanke's, comments, but that the market was oversold; "When we get minus four on the S&P oscillator, we always get a snapback rally within a couple of days," he said, and added, "When you're up huge, you take a little off. Remember, we're going to get overbought again. Enjoy yourself, but don't be greedy."
Cramer applauded Ben Bernanke's statement to Congress that inflation was caused by energy costs, because this implies that inflation is beyond our control.
Tech and Telco Woes: ADC Telecommunications (ADCT) and Yahoo! (YHOO) -The big news on Wall Street on Wednesday was the beating Yahoo! took after missing its numbers and announcing the delay of its Panama project; "The 'hoo' was taken out of Yahoo!," comments Cramer,"When you have a technical problem and you are a technological company, you know you're going to get smoked." However, Cramer does not think that YHOO will go the way of Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY), which he believes are consistent underachievers. Since there are companies who have expressed interest in Yahoo!, he doesn't believe it will drop to less than $15. ADCT also plunged after it reported problems with its sales of copper and fiber connectivity. Although the company expressed hope for future consolidation, Cramer says this just isn't happening in the teleco sector.
General Motors (NYSE:GM): Cramer says that GM is an example of a company that has done everything right, like improving its balance sheet, and yet has fallen dramatically. He would hold on to the stock.
Marvell (NASDAQ:MRVL): It's hard to tell from the numbers, but Marvell reported a great quarter, notes Cramer, and he suggests staying with MRVL at least until it reaches $40.
Bancolombia (NYSE:CIB): This is the biggest bank in Columbia, and Cramer thinks that it is going higher. He would not sell CIB until it gets to $30.
St. Jude Medical (NYSE:STJ): Cramer likes the medical sector right now, and picks STJ as a good takeover target.
Pepsi (NYSE:PEP) and Bristol-Myers (NYSE:BMY): Cramer would suggest these stocks to the first-time investor.
Dow Chemical (DOW): Cramer would hold this stock only until it gets to $40, and then he would sell it.
Apple (NASDAQ:AAPL): This stock has declined, and Cramer recommends unloading half of the shares now.
Chipotle Mexican Grill (NYSE:CMG): Cramer would trade CMG for McDonald's (NYSE:MCD), which had an excellent quarter.
Medtronic (NYSE:MDT): Cramer says this company is alright, but recommends St. Jude Medical (STJ) instead.
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