Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Wednesday August 1.
What Ben Bernanke Is Actually Saying. Stocks mentioned: Burger King (BKW), Wendy's (WEN), Freeport McMoRan (FCX), Enterprise Products Partners (EPD)
While traders tend to make kneejerk reactions before digesting statements from the Fed, Cramer believes it is important to try to figure out what Ben Bernanke is really saying in the language of investing. Bernanke indicated that the economy isn't really doing much of anything, there is not a lot of hiring, and it seems best to wait on the sidelines and not make radical moves unless the economy gets worse. The Fed doesn't intend to raise interest rates until late in 2014. The translation: buy high-yielding stocks.
Cramer took some calls:
Burger King (BKW) only seems to be getting better because its performance was so bad in the first place. Cramer would sell Wendy's (WEN).
Enterprise Products Partners (EPD) delivered a monster quarter and has a 4.7% dividend; "That is a terrific one. It is best in show."
Freeport McMoRan (FCX) is a buy because of the dividend, even though Cramer is worried about the situation with mines in Indonesia.
CEO Interview: Tom Farrell, Dominion Resources (D)
Dominion Resources (D) is a high-yielding stock that is a good investment for the current environment. Its dividend is 3.85%, and utilities are a safe, stable business in any economy. The company spun off its risky oil segment to focus on utilities and is developing an export terminal for liquified natural gas. CEO Tom Farrell said new connects were up 20% year over year, and customers like to use Dominion because of its low rates. Its natural gas export terminal is a few years away from completion, but should eventually generate revenues and create a large number of jobs. This terminal is expected to be
