Jim Cramer's Latest Stock Picks (Aug. 4)

by: Insider Monkey

Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of mad Money and also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV and most of these are ordinary investors trying to understand what's going on in the market. Jim Cramer's bullish and bearish stock picks on his show is the starting point for many investments made by these folks. During the August 4 show, Cramer discussed the following stocks.

  • First Niagara (NASDAQ:FNFG): Although this bank has a good yield and a good business plan, Cramer doesn't think now is the time to own financials or tech stocks.
  • Activision Blizzard (NASDAQ:ATVI): While the gaming company beat estimates, Cramer prefers Electronic Arts (ERTS) because they are ahead of the digital game. Cramer doesn't believe Activision is the way to be in this market. He prefers more yield, less economic sensitivity and less discretionary.
  • Transocean (NYSE:RIG): This offshore driller is not a buy yet because offshore drilling still has a bad taint, estimates still need to come down and the price of oil is still falling. Ken Fisher had more than $200 Million in RIG at the end of first quarter (check out Ken Fisher's largest holdings).
  • Walter Energy (NYSE:WLT): Cramer admitted that he called this one wrong. He recommended this stock on the belief that it would be taken over. Not realizing that earnings would be this bad, Cramer recommends waiting until the stock falls about 5 points lower and then buying it.
  • Federal Realty Investment Trust (NYSE:FRT): Cramer claims this is the best shopping center REIT in America. It raised its dividend for the 44th consecutive year to 3.4%. Federal Realty boasts a diversified tenant base where no one tenant represents more than 2.6% of portfolio and 93.4% of their portfolio was leased as of June 30.
  • SodaStream (NASDAQ:SODA): When asked about SodaStream during the lightening round, Cramer felt the only way to play soda stream going into earnings is a deep in the money call to protect yourself from potential downside.
  • Alcoa (NYSE:AA): A viewer asked whether Alcoa is slowing down with the economy and should the stock be sold. Cramer marked it as a buy, especially at $12. John Paulson is a huge fan of Alcoa with a nearly $500 Million position at the end of first quarter (see John Paulson's top stock picks).
  • TriQuint Semiconductor (TQNT): Cramer boldly told investors to avoid this stock. Not only because it missed the quarter, but because it's also levered to the smartphone businesses, which means it is still too involved in the technology sector.
  • Web.com Group (WWWW): This one-stop shop for online marketing and website services for small business received a glowing recommendation from Cramer. The company beat earnings estimates and recently bought a small company called "network solutions" for 560 million dollars. This acquisition gives them access to 2 million new small business customers. The stock shot up 20% as a result.
  • Altria (NYSE:MO): As one of the highest yielding stocks on the NASDAQ, Cramer approved the ownership of this tobacco holding company.
  • Kimberly Clark (NYSE:KMB): This paper company has been a long-time favorite of Cramer's, but he hasn't been able to recommend it as of late due to the high raw costs which were oil-related. Now that the price of oil has plummeted, however, Cramer thinks this is an opportunity to buy. D.E. Shaw is the most bullish hedge fund about KMB. They boosted their stake by 75% during the first quarter and have the second largest stake in the company among the 30+ hedge funds we are tracking (check out David E. Shaw's top stock picks).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.