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 24th show, Cramer discussed the following stocks:
Bank of America (NYSE:BAC): This embattled financial stock rallied today closed up 3%. This stock has a $77.5 billion market cap. Bruce Berkowitz of Fairholme increased his position by 8% during the second quarter. His fund now owns over 99.5 million shares of BAC (see more of Berkowitz’s picks here).
Home Depot (NYSE:HD): This home improvement retailer also rallied, closing up a 1.25%. Cramer said Home Depot is set to continue outperforming Lowe’s in the future and represents a buy.
Cramer suggesting that things may be improving since it was the industrials that led the rally and not the defensive stocks. Among these industrials were United Technologies (NYSE:UTX) and Caterpillar (NYSE:CAT).
Continental Resources (NYSE:CLR): A mining company that has the largest land position (about 901,000 acres) in North Dakota’s Bakken shale. They have been able to consistently retrieve 400K barrels of oil per day. CEO Harold Hamm said there are an estimated 24 billion barrels of oil in the shale. The miner has a $9.39 billion market cap and is trading at over 100 times earnings.
Halliburton (NYSE:HAL): Cramer thinks the stock’s recent hammering took place because the price of oil has fallen, and that it is a mistake. Cramer recommends buying this second largest oil service and equipment company. Its engineering capabilities actually make it a tech play (in the oil industry) that has helped create a 75% increase in production. T. Boone Pickens’ BP Capital reduced its position in the stock by 3%, but it still represents 4% of its portfolio (see more of Pickens’ holdings).
Clean Harbor (NYSE:CLH): Clean Harbor is the 8th best performing stock of the past decade and has been up 53% since Cramer recommended the company in June of 2010. This environmental cleanup and waste disposal company that oil companies hire, not just when there’s an accident. CEO Alan McKinn made recent acquisitions that place the company deeper into the oil play. The company has a $2.68 billion market cap and trades at 24 times earnings.
SPDR Gold Trust ETF (NYSEARCA:GLD): Cramer once again recommended putting the precious metal in your portfolio in the form of this ETF. Gold’s decline back into the 1700’s presents a buying opportunity in Cramer’s eyes since market fundamentals have yet to improve.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.