Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday November 16. Click on a stock ticker for more analysis:
Cramer says that Nike and UARM "just got lucky" because Reebok, owned by Adidas made a false step and decided to slash its advertising budget. Since he stresses the importance of diversification, Cramer wouldn't own both Nike and UARM, but suggests that Nike is for conservative investors and UARM is the "more aggressive high-risk, high-reward stock." When it comes to shoes, UARM only makes football cleets, but has 24% of the market share and Nike's cleet business has dropped 13%. However, Nike is marketing its soccer shoes in Europe, and is expected to deal a serious blow to Reebok. Ultimately, the choice between Nike and UARM depends on how much risk the individual investor can handle.
Related: The Stock Masters like UARM as a long-term investment.
Cramer cautions against bearishness in the wake of Sears' ten point drop following its earnings report, and adds "in this business, we call that a gift" and would use the decline as a chance to pick up the stock. Although bears would call Sears a "disappointing retailer" Cramer doesn't think of Sears as a retailer but as "an investment vehicle for Eddie Lampert," and for real retail, investors should look to Costco and JCP. Although he likes Sears' tools, he doesn't like the stores, but compares the stock to Berkshire Hathaway and says that it is "one of the best investments of our time" since CEO Eddie Lampert is a master money manager. "Buying Sears is like putting your money in a great hedge fund," but with less risk, remarks Cramer, adding that "It's so cheap it hurts" and to pick it up soon because it will bounce back "hard and fast."
Related: Herb Greenberg discusses Sears' dismal quarter and its status as a " hedge fund."
Sell Block: Coach (COH), Reader's Digest (NASDAQ:RDA), Borders Group (BGP), Black & Decker (BDK), Fortune Brands (FO), American Standard (ASD), HDFC (NYSE:HDB), Isis Pnarmaceuticals (ISIS), KB Home (NYSE:KBH), Autodesk (NASDAQ:ADSK), NightHawk (NHWK), Oil Services Holders (NYSEARCA:OIH), Halliburton (NYSE:HAL)
Cramer likes Coach, but would take some off the table and would also sell Reader's Digest, which has received a takeover bid. He also suggests taking profit in BGP and BDK, and prefers ASD and FO. Cramer would "declare victory" by selling HDFC and would ignore the hype in Isis' press release about its drugs, since it is not a buy. He would hold onto KBH and to ADSK. Cramer likes NHWK as a play on the Democrats' plan to cut healthcare subsidies, but urges investors to sell OIH and other oil service stocks except for HAL.
Related: Halliburton's third quarter net income rose 22%.
Cramer suggests picking up Bunge as a play on consumers' worry over trans-fats. He likes PVX because it has a 13% yield, although he would avoid ZUMZ because he doesn't think it will recover from its bad quarter. He still likes Vulcan at $89.
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